Notes and partials for clients

NOTE INVESTING

www.EquityFundingofWashington.com © 2016, Equity Funding of Washington, LLC

Market

$91 BILLION LOST

OUT OF STOCK MARKET IN 2

DAYS

STOCK MARKET YOUR MONEYWhere is it going?

September 29, 2008Market Crashes

Xwww.EquityFundingofWashington.com © 2016, Equity Funding of Washington, LLC

Past Year

Forever

Stock Market Volatility Creates Anxious Money


www.DistressedVolatility.com


What’s Next??

Stock Market Fears

Do You Want to Feel Like This at 50+?


What do you want in an investment in 2016?

• Return- growth competitive with long-term stock investing• Stability- predictability of monthly payments• Security- backed by solid asset• Security- backed by experience • Security- doesn’t go away if the economy

tanks or you do (and we all do)



Seller-financed note investing does all this and more!• Return- Range of yields based on details of specific investments, but range

from 5% on a short-term front-end partial to greater than 10% on a 20-30 year performing note.• Stability- payments made by the buyer of real estate, occupant, pay history

and emotional equity.• Security- backed by real estate. You become the bank in this investment and

are secured by the full value of the collateral (the borrower’s house).• Security- in partnership with Equity Funding of Washington, LLC- experience

real estate investors since 2003.• Security- people will always need a place to live, even when the economy

tanks and you pass ownership of the note in your estate.

What is a Note?


Loan Amount: $100,000

Term: 390 mos. Payment: $878

TERMS OF AGREEMENT:

Interest Rate: 10%

Signed:

Home Buyer


Buyer Seller

Down Pmnt: $10,000

$100,000Note Mortgage

Lender

Loan: $100,000

Total Purchase Price: $110,000

Investor


Joe LaCountRogers, MN

Note Investor


Current Market Value:

$42,000

Case Study: #1

Ocala, FLManufactured Home – Double-wide with Land3Bed/2Bath, 1,368 Sq Ft.


Valu

e $4

2,00

0

The Property

1st Lien NoteSecured

by the Property

Buyer’s Equity+ 37 Payments

MORTGAGE NOTE

Original Loan Amnt: $33,000

Interest Rate: 10%Term: 240 months

Monthly Pmnt: $318.46

MORTGAGE NOTEPurchased For

$31,312Payments Remaining

203


$318

$318

$318

$318

$318

$318$318

JAN FEB

$318

MAR APR MAY JUNE$3

18

$318

$318

JULY AUG SEP OCT NOV

$64,554203 Times =

Effective Annual Interest = 10%

MORTGAGE NOTE

Purchased For$31,312


You can buy either the whole note or a partial• Why buy an entire note?• Higher yield• More involvement/control/work?• Longer term• More upside if things go wrong

(foreclosure, rental property, etc.)

• Why buy a partial?• Lower investment to value ratio

(ITV)- more headroom.• Equity Funding of Washington

makes our profit after you get all your payment stream. We’re behind you and watching constantly to make sure our (that’s right, OUR) borrower is paying and ready to fix it if you want us to.

• Less “involvement” or worry or WORK.• Great yield- 5-10%


$318$318

$318

$318

$318

$318

$318

$318

$318

$318

$318

$318

Buy Long Term (203 Pmts)

Sell Front (120 Pmts) Held By SellerMotivated to be Paid Remaining 83 Pmts

Front–End Investor Pays

$24,063

10% Annual Interest

Smaller & Short Term

Investment

Seller “Backs”The Front-End Investor

Collects 120 x $381

= $38,160

Entire Note


120 Pmts

Partial Purchase—amortization schedules


Partial Investor Gets = $14,984Plus $318 x 60 mos = $19,080

$34,064

$26,673

$14,984

5 yrs

Interest = 10%

Early Payoff or Default


You can buy either the whole note or a partial• Why buy an entire note?• Higher yield• More involvement/control?• Longer term• More upside if things go wrong

(foreclosure, rental property, etc.)

• Why buy a partial?• Equity Funding of Washington

makes our profit after you get all your payment stream. We’re behind you and watching constantly to make sure our (that’s right, OUR) borrower is paying and ready to fix it if you want us to.• Less “involvement” or worry• Great yield- 5-10%



Seller-financed note investing does all this and more!• Return- Range of yields based on details of specific investments, but range

from 5% on a short-term front-end partial to greater than 10% on a 20-30 year performing note.• Stability- payments made by the buyer of real estate, occupant, pay history

and emotional equity.• Security- backed by real estate. You become the bank in this investment and

are secured by the full value of the collateral (the borrower’s house).• Security- in partnership with Equity Funding of Washington, LLC- experience

real estate investors since 2003.• Security- people will always need a place to live, even when the economy

tanks and you pass ownership of the note in your estate.

Questions?


Other Topics• Tax-Advantaged investing through your

Self-Directed IRA

• Performing vs Non-performing Notes

• Partials (buy just the front-end of a Performing Note)

• Non-performing Notes as your response to the Mortgage Crisis

• Note Manufacturing- Selling Property with Seller Financing

Date post:	07-Apr-2017
Category:	Economy & Finance
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Notes and partials for clients

Economy & Finance