Apr162010
A Little-Known Cash Flow Cash Cow (Video)
A while back, Drew Steiner (my director education here at Dalbey Education) made an incredible video just for our students.
The video got rave reviews… so I’m posting it again in case you haven’t seen it.
Even if you’ve already seen this video… you’ll want to watch it again. This time, pay close attention at the 2:10 mark in the video.
Because Drew reveals a personal story about his own real estate property… and explains how a strategy for finding cash flow notes that works especially well in this weak economy.
Watch the video now:
After you watch the video, I know you’re going to be excited about this strategy for making money with this “Cash Flow Cash Cow.”
So I’m having Drew host a FREE webinar (a seminar on the web) and he’s going to walk you through this strategy and show you how to find these special note deals right in your own neighborhood.
It’s 100% FREE — all you have to do is sign-up to reserve your spot.
Watch your email because I’ll be sending out invites to this free webinar shortly.
– Russ
Founder of Winning in the Cash Flow Business
YES!! Thank you. I love your instructional videos, as I learn and understand better through video instead of print. We have purchased Protege as well and have been studying like crazy! we plan on making our move soon. Once again, Thank you for the video! and Thank you for such an honest and wealthy way too get the finiacial freedom everyone deserves!
April 16th, 2010 at 9:46 pm
Andrew, I like what you said but my concern is going to these sellers, informing them of seller financing, them creating a note with the intention of selling it, the terms of the note are desireable, but no note buyer is forth coming, or the offers on the note are discounted to an unacceptable level, thereby creating a very unhappy client. I need more info as to what the range on the discount might be and the probability of there being buyers for the notes. Thanks
April 17th, 2010 at 7:34 am
Joe,
I can appreciate where you are coming from. I, too, am finding out that finding a viable note [or helping to create one] and listing it is not the final destination of a note finder. Apparently, some notes are better than others and there is not a hungry buyer waiting to bid on every note posted. Finding buyers for the notes is turning out to be the greater challenge. Viable notes come and go. But, finding good buyers and keeping them supplied is where the game is being played and won. Good luck in your endeavors. Leo
April 20th, 2010 at 7:53 am
Thank you for the video training. I love the format. My question about the seller financing is what if the seller still has a large mortgage? Is this method only used if the property is owned free and clear?
April 19th, 2010 at 3:23 pm
Andrew. I love the vidio and the idea of creating a note to sell property then the seller to sell the note but the offers of the note are discounted to an unexceptable level. so it creates a very unhappy client . I need more info on how to do this so if the seller has a balance of the property he will be sure to at least get the amount he needs to pay it off and what is the range of the discount for the note. The seller could actually be very upset if I misrepresent the sale of a note and then can not get what they need for it.Please advise. I have watched this video several times and still have the same questions..
Thanks Patricia Berry
April 20th, 2010 at 12:26 am
This does sound like a great area to focus on. My concerns are the same as some of the other posts. Most Americans still have a bank owned Mortgage to contend with, I don’t think we can help them. What about the discounted price they sell there note for? Will our only market be on property with no liens and a seller who is willing to take less just to get cash? And if so, how large is that market really?
April 20th, 2010 at 8:55 am
Watched the video–In Calif 40%(20 of the 50 homes) are REO’s,, 50% of the remaining 30 are close to NOD’s being recorded, UNDERWATER.The 15 seller/owned (all #’s are est)will not all be free&clear. Analyze the loans(LTV)& use the equities to evualate seller creative financing options. If free&clear be EXTRA CREATIVE.Many otions exist. REMEMBER most listing agents lack expertise in creative financing. Help them-Help yourself. If a FISBO full speed ahead,,,,,thanks
April 20th, 2010 at 8:59 am
Your info sounds very professional, but for me,who is just begining in this business, you might as well be replying in Greek. Could you pleas simplify the terms and anacranims for those of us that are still ignorant of them. Thanks & regrds H.Walker
April 20th, 2010 at 2:30 pm
I know I need to step it up with this business as my present job is seeming unstable in this present economy so I do need something to fall back on. I just work very hard and long hours with a salary pay so it’s difficult to have the energy to get online and learn this business and begin to put it into action as a business. Thank you for not giving up on me and I am looking forward to the webinar. The timing isn’t exactly good for me is there any other time I could view this?
April 22nd, 2010 at 7:13 am
These creative loans are not seasoned. Who would want to buy a note that may go into default?
April 20th, 2010 at 10:14 am
Thank you for this video. It is a great tool to motivate and inform. Yes, my impulse to approach this market is alive and well. So what’s stopping me? 1. I need my jargon in the correct order 2. I need confidence in snooping out the leads ie. how to tell which agent to approach or which home buyer to contact directly, then do I need a lawyer lined up for the seller to create a note or have a list of possible lawyers? It would also be nice to know what to look out for to avoid unnecessary problems in closing the deal. Thanks for never giving up on us and created new ways to motivate our success.
April 20th, 2010 at 10:48 am
Great information. I see the for sale signs all over the place. I can see myself approaching a home owner whose for sale sign has been out there for a long time and explaining to him/her how they can sell the house for a competitive price.
Thanks for the video.
April 20th, 2010 at 11:09 am
Excellent video! I lean best by listening to these types of things over and over. I hope more are on the way! I’m on my way to Colorado Tonight for the Boot Camp and Fast Track!!!!Thank you! Julie
April 20th, 2010 at 11:30 am
This was a great video. This gives me some ideas now to help me get started. This is the best video yet for ideas. Thanks, I really love these videos. They are informative and helpful.
April 20th, 2010 at 11:32 am
I have my own house I am considering offering seller financing on…but I owe a 1st and 2nd against it. Any chance for me creating a note in this buyers market viable to sell…enough to cover what I owe and maybe a little left over for me? I had an appraisal a few years ago for $375K during a refinance but likely can’t get an appraisal like that now in this down market? Any hints? Is part bank/part seller financing a viable way to go if the seller is only preapproved for an amount less than my asking price?
April 20th, 2010 at 1:10 pm
Yes you can sell creatively, & get net cash out from buyer’s down pymt., but only thru someone with knowledge who you can trust, re: existing 2 loans and CERTAIN language in both security documents, that will permit creativity.The KEY is getting an appraisal above your 2 loans with a 20% equity margin. Without a proper appraisal it won’t work. Find that trustworthy expert and find out. All done with a NOTE. VIABILITY OF SELLING THIS NOTE,,talk to your expert. With no lender involved creativity exists & appraisals are much more conservative. The KEY is an expert
April 20th, 2010 at 5:45 pm
Philip, I find all of this quite interesting but your replies are difficult for me to understand. Maybe less jargon and shorter, more complete sentences would help those of us who are new.
May 31st, 2010 at 4:28 pm
Great video and an amazing idea for sellers in a buyer’s market. Definitely something that I would like to try.
April 20th, 2010 at 8:49 pm
Hi Andrew, Thank you!! for the videos. I’am so exciding to go over their, and see successful person, who going to help me, to get property.I can’t wait to get 3 ways. So what, exciding and scary the same.
See you their.
Kong
April 20th, 2010 at 10:34 pm
The sale idea in the video it is fantastic , to put the numbers and the seller, buyer , and note
holder together it is another video to be seen.
April 20th, 2010 at 11:35 pm
Hope this is not a duplicate but I like the idea of approaching the seller to explain seller financing with a note to them. However, if they are listed with a realtor, is it better to call the realtor and let them know about it? Anxious to move. Many homes in my HUGE neighborhood for sale and in foreclosure. thanks
April 21st, 2010 at 6:55 am
Thanks for the video it a great tool for me I drive down the street all the time and see signs in people yards.my problems is i guess is approaching the home owner expalining to them what i do im guessing i need to come to one of the workshop so i can get going.
April 21st, 2010 at 7:45 am
Dear Russ:
I love the videos. I could only get the first half of it to play, again. I had found and watched it before. Very excited to see the last half. LOL! I will keep trying.
I have same ? as others, particularly concerned about the lack of seasoning. I’m sure the nuts and bolts of how to do this in detail, will be forth coming. Looking forward to learning all there is to learn about this biz. Thanks again and may God richly bless your success, Sandi Foster
April 21st, 2010 at 8:09 am
Thank you Drew this a great video I wrote down notes as you was telling us about seller financing there is a lot of houses for for sale on my street Ia I was out a few days and saw the sign for sale. but I did not have a pen at that time but I will be going back and this time I will get the information thanks have a note for sale April/10 I will follow these videos they are great learning tools.
Betty
April 21st, 2010 at 10:40 am
So that I understand correctly, please explain what the value of the home and it’s relationship to the selling price should be. I assume the apraisals needs to exceed the current loans. What happens to the existing loans carried by the lending institution for a “seller financed” sell? Are you suggesting that these types of deals are better for homes with equity exceeding the current loans?
I know of at least one highly motivated seller who would consider this but he/she might be upside down in their home.
Thanks for including me in your e-mails. Perhaps I can learn something!
April 21st, 2010 at 11:22 am
Russ,
Thanks for the video!
I agree this is a great time for seller finance
I look forward to the webinar!
Theo
April 21st, 2010 at 12:25 pm
Thank you Russ and Drew, I am intrigued with an eagerness to learn the rest. So many questions that I’m sure will be answered!
April 21st, 2010 at 1:31 pm
Russ, I have someone who wants to sell 2 mobile home parks they are in execellent condition aslo somecommericial property in arkansas how can i sell the mobile home parks I do not know where to start on them or where to present I have submitted two mobile homes with land to the note site and noone has submitted to them what to so// Please advise.. thanks Patricia Berry in Sheridan, Arkansas
April 21st, 2010 at 9:14 pm
Love the idea now I need to make the effort to put it in action.
April 22nd, 2010 at 1:22 am
Great video!!! keep up the good job of teaching us on how to aproach this business and get out there and do it.
April 22nd, 2010 at 4:46 pm
Thanks for the video, i thought it was very easy to understand what seller finance is all about…
April 22nd, 2010 at 8:35 pm
Hello
I just view the Video again. I once again found it Enlighting. We will be talking in the near future.
April 24th, 2010 at 3:35 pm
Interesting video. Im looking forward to the future with winning in the cash flow buisness!
April 24th, 2010 at 4:56 pm
Thanks Russ and Drew Steiner. I appreciate every bit of informatin you are able to give us. Especially the “A little-known Cash Flow Cash Cow” video. By the way, it’s would be so nice if the Grey-Matter could also be explained. For esample: What happens to the existing and current Loans carried by the Lending instition for a Seller Financing sell?? Would you be saying that it only applies to Homes with enough Equity to cover the current Loans?? Please reply. Once again, Thank you. Sincerely Jayne.
wThanks. Sincerely Jayne.
April 25th, 2010 at 6:19 pm
Jayne, this is my area of concern as well. Do “for sale by owner” opportunities just apply when the seller ownes the property free and clear? How does it work if the seller has a mortgage? I’m interested in this technique but have questions. I wouldn’t want to put the seller in a bad position by making this offer and then not finding a note buyer.
May 31st, 2010 at 4:33 pm
Russ,
Thank You for the new “NOTE NET WORK” fantastic tool for all of us! Thanks a lot!
Gary Hlebechuk
April 26th, 2010 at 10:56 pm
Hi Drew and Russ, I found the video to be very helpful. I still have a few questions about talking to someone about seller financing. I want to be able to assure them their property can be sold this way for a great price . Should I talk to them about their financial situation on the property before encouraging them to use seller finanacing?
April 28th, 2010 at 7:20 pm
I love the new notenetwork site it is very helpful and so informative. Thanks for the changes, much improved!I am looking forward to a workshop in the near future don’t have the finances right now.
April 29th, 2010 at 5:11 pm
As always Drew,very informative! Thanks so much. I like others am still pieceing all the information together and understanding a little more each day.
Thanks for all your hard work, it is very much appreciated.
May 3rd, 2010 at 10:17 pm
Okay i am trying to understand about fsbo. Okay what if you find alot of home fosbo you still have to ask them question and all right? So do i have to mention seller financing? could some get intouch with me on that… Thank you
May 3rd, 2010 at 10:30 pm
okay still needing help so if someone wants to sell there home with out realator can i just ask them the question and post the information on the network.. still there is alot of fsbo and it is confusing when i have to explain seller financing please help……
May 4th, 2010 at 10:52 pm
Thanks for the video, the vidoe was very simple to undrstand. thanks for the motovation.
May 4th, 2010 at 2:42 pm
What do I say when the seller ask me how much do they think they can get for the note? How am I in all good faith, going to ask a seller to create an instrument for a sale and then when I list the note he/she gets back a low ball price that doesn’t cover the cost of his loans or the money he wants for that matter. Then I thought if the note wasn’t seasoned it wasn’t one that was going to sell for a decent price. You didn’t explain what to say too the note buyer, you didn’t go thought listing a note, you didn’t go thought the process of collecting the information. The video was nice but lacked information.
May 4th, 2010 at 2:50 pm
How do you handle the processing of a seller financed note
to your organization. In other words, if I have seller financed notes that can be sold who do I talk with and what is involved.
Mick Depp
May 4th, 2010 at 3:04 pm
Great Info! I feel that this will be the way to go.
May 6th, 2010 at 6:00 pm
great post as usual!
May 8th, 2010 at 2:33 pm
this is good let me try this is my nex move
May 12th, 2010 at 8:06 am
this is good let me try this is my next move
May 12th, 2010 at 8:14 am
great information you write it very clean. I am very lucky to get this tips from you.
May 15th, 2010 at 1:42 pm
Very good journey and experience!
May 17th, 2010 at 3:10 am
Hi Drew I like the idea of finding the FSBO signs because that would be easy now. Do I need to find out if the owner owes on the home and if so how do I handle that. Do I need to get a real estate lawyer to view my papers before I list the note on line? I know I can do this if I know exactly what to do. Your video is very good and explanatory. Please do more when you can. Thanks
May 18th, 2010 at 10:02 pm
Carlene Oliver says:
Hi Drew:I watched your vedio and was very encouraged. I see for sale signs around me. I will check to see is it by owner. Please tell me how to get contact numbers for seller financing. Thanks.
May 19th, 2010 at 4:55 pm
Great idea , I am going to explore it more.
May 31st, 2010 at 2:15 pm
Great motivational video. Please provide some additional information that will answer the questions asked in this thread of comments, especially about whether the seller needs to hold the property free and clear before a note deal would work. Also how can we protect the seller once he/she decides to seller finance and then sell the note? When is the Webinar on this and how does one sign up?
May 31st, 2010 at 4:38 pm
Your video was very inspiring, I am learning more all the time, I am still in the prosess of taking your protege course. Have a ways to go before I can make a note deal.
Thanks for the video.
May 31st, 2010 at 10:20 pm
Hi Andrew, I understand completely about the seller financing, my one comment and question would be. When you carry back the financing, to get the home sold and you have a buyer! Because of the huge rise in identy theft a lot of people including myself have my credit blocked, so no inquires can be made. Now I know as everone else does that it is important to know that they are trust-worthy to make those payments. I check job history, electric companies, telephone companies etc, just to see if they make their utilities payments on time. If they do, then its hands down I can convince them that it is a good deal and they would feel at ease about carrying back on the note. However when you go to sell the note, the first thing that the note buyer wants to know is the credit score! I dont pull the score I go by real time payments made on time through other sources. If I don’t have the score and they can’t pull it because of the block on the credit report the likelyhood of that note selling is very slim. Even if the note is well seasoned and payments and payment trail is proven. The credit score seems to create a barrier? How do you get around that?
June 1st, 2010 at 10:34 pm
I did come across this very interesting deal just recently, and this is how I handled it.
This couple built a brand new home, on a golf course, stunning HUGE home. They are wanting to move to Montana to be near their Son and family.
They are having a very hard time trying to sell the house even at the current market value. So here is what I did to help them out.
They owed $139,000.00 on the house. The market value is $425,000.00. The couple wanted to sell the house at $298,500.00. They did have a younger couple, both working and had good jobs and a good history of their employment being stable. The buyers could only get pre-approved for $150,000.00. So how we handled it was this.
The sellers took in cash the difference between the $139,000.00 (pay-off) and the $150,000.00, so roughly the had $11,000.00 in cash and the sellers carried back the note on the difference on a negotiated deal at $280,000.00. With todays interest rates, the buyers could easily afford the first mortage and the note was created as a secord. Everybody is Happy! the Buyers got their dream home, The sellers got to move to Montana with $$ in pocket and I now have a note (after some seasoning) to be able to sell.
June 1st, 2010 at 10:55 pm
Mr. Dalbey you are surely a great man, because great men give and help others out through the way you are doing it, God bless you for your selflessness, you are indeed kind, i will continue to read and do as you say, i can get there by God Almighty through Jesus Christ, and the knowledge He has given you. thanks
June 22nd, 2010 at 9:02 am
Its a great idea, a way for a homeowner to sell his house if its free and clear or just owe a small amount that the downpayment would cover. But I think most sellers have huge mortgages maybe twice as much as the home is now worth and trying to sell before they go under. Would a home owner whos house was free and clear really sell his house for half of what it was worth 2 yrs ago and then sell the note at a discount to me? He might, but he would have to be very desperate, and maybe there are people in that situation.
June 28th, 2010 at 1:38 pm
Dear Andrew-
You are a genius! I have seen my first two
videos and am very impressed. You make sense!
Guess I will have to crack open my kit and get
busy.
July 8th, 2010 at 12:02 am