Subscribe
Share
Share
Embed
Specializing in seller financing, Dawn is a visionary real estate professional who gets families into (or out of) homes and investments in a way that empowers and enriches them, as well as the communities in which they live… with or without banks and regardless of market conditions. Dawn is the antidote to America’s addiction to Wall Street’s financial opium. She makes the powerful, non-bank, strategies usually reserved for sophisticated investors accessible to everyday people, making or saving them thousands and instilling hope as she illuminates hidden opportunities. As a seasoned note investor intimate with seller financing and the secondary market for private mortgage notes, she provides mission-critical expertise that is extremely rare in today’s marketplace. Sellers: know what your note will be worth before you create it. "Landlord Liberation", "Buyers: The Seller is Your Bank" and "Note Investing for Newbies" are key gateway books for those wishing to engage with The Realm. Visit www.NoteQueen.com.
The title for this this meeting, how I got some of you here is saying, hey, your CPA is the one that trapped you in your rental because he quoted you those numbers, but here's what he's not telling you. Okay. So that's the point I wanna make. Everyone thinks, I'm not gonna do something creative. I've already been on my soapbox and said that the banks do the most creative financing ever by lending money they don't actually have but that's besides the point.
Dawn:Your your CPA, your attorney, your real estate broker and most likely your financial planner, they know what the installment sale is but they're probably not gonna bring it up to you. You have to be the one to bring it up to them. Okay? To get everyone on board and it's just a shame. People people are very underserved in this regard so let's change that.
Dawn:Okay. Well, let's get started. Welcome to Property and Paper Live. It's June 2, and we're here to talk about real estate, owner financing, and notes. People think real estate is one business and notes are a different business.
Dawn:The thing that connects them is seller financing. That's where notes come from. When someone carries paper, offers owner terms on their own property, they create a note that they're receiving payments on and sometimes they wanna sell that note. Just like the banks, they create the loan, the promissory note, right? And then they sell it to Fannie Frey and Freddie Fannie Mae and Freddie Mac.
Dawn:Okay? For seller carry notes, there's a very similar market and most people don't know that even very competent professionals. It's just not in their radar but by the time I die, it's gonna be. That's my goal. So if the people understand the secondary market, then they carry paper the right way and with optimizing financial outcomes.
Dawn:So that's the goal of this conversation and also in of late, I'm really focused on landlords, people who own investment properties especially if you've owned for a long time, you own your property free and clear or nearly so. The biggest one of the biggest problems you have right now, you don't have tenant problems. You have a tax problem. Your tax problem is the biggest thing because your CPA runs those numbers. Yep.
Dawn:If you sell right now, you're gonna write a third of it to the IRS and they're just like, nope. I'm gonna keep grinding. I'm gonna keep grinding. So most people, even though your attorney and your CPA, I guarantee you they know about owner financing. They know about the installment sale internal revenue code four fifty three, they know about it but nobody's used to bringing it up so you're gonna have to bring it up to them.
Dawn:So my goal is for you to be aware of the powerful exit strategy that this can be. It helps you, you may be in a market that's still really hot, you may be in a really big buyer's market where there's a lot of inventory starting to stack up, okay? No matter what it is, you can turn your tax problem into into a blessing for yourself and others actually. So if you don't know already, please go over to notequeen.com and sign up. You may want to download my little landlord liberation book.
Dawn:It's either a dollar or free. I can't remember right now. And pretty soon when I get a new funnel set up, it's going to be free because I really want to get this information into as many people's hands as possible. So maybe you're on this call because you have investment properties and you're thinking of am I gonna sell to my tenants or am I gonna kick them out and and sell to someone who can put 20 percent down and all of that? Or you might be someone that wants to know how to go after this market the same way I am.
Dawn:So before I forget, I've I've been putting together some materials. Okay. So here's the problem. It's just like when I worked in the ER. The medical field, we develop our own language and nobody else knows what we're talking about.
Dawn:I've been in this so long that I forget that I'm not talking plain English a lot of times. So one of my biggest challenges, is how do I talk about this in a way that that gets to the people I wanna get to, right? There's the landlords, there's the people that already somehow they already know, they've always known it, they learned it from their parents, they learned it somehow and it's a very natural career path or yeah, career path and retirement planning. First you own a lot of rentals, get them free and clear, then you sell them off one by one seller financing, you end up with a portfolio of pretty much, if you've done it right, hassle free mortgage income, interest income instead of rental income. But the other 95% of people, they never seem to hear about it.
Dawn:So I've spent a lot of time and money trying to get the the marketing and the messaging down and I want to share that with you guys because I'm just one person. I'm a solopreneur. Right? I'm a boutique operation. I love property, I love paper, I love buying notes, I'm a total nerd for seller financing but I just figure let's all get the word out in in whichever way so you can make money.
Dawn:You can use my flyers as is and then keep track of where you're sending it out and if there's a lead comes in, we're all gonna profit together or feel free to rip them off and and make them your own. And I'm actually so let's let me share my screen real quick. Okay. So this is one of the flyers. I think there's a couple on here.
Dawn:Wait. So it's me. Are you feeling trapped by your rental? Wisely manage your tax liability by selling over time. I gotta give that to Sue Ellen who who's been a long time member here.
Dawn:That was a great thing. Are you still climbing on the roof? Is your wife screaming at you? Okay. You have a tax problem.
Dawn:Right? And we're talking about how do you restructure your retirement and then unlock the value of seller financing, right? These are things that you can give to sellers or all of them, some of them are all of them. Hey, you know you know smart sellers get their price by offering terms at least short term. Doesn't have to be forever.
Dawn:Most people can refinance within three to five years. Negotiation. Then I just recently this morning updated another little report that just looks different but it's talking about in three pages it shows what is seller financing, how does it work, what happens when you sell a note and an example of of selling a partial shortly after closing. Okay? So in three short pages, it's just a quick introduction.
Dawn:So if you want the whole thing with the editable docs, you can get it for $11 over on my on the whatever the shopping page is at notequeen. But if you're in my community which is my.notequeen.com or if you're a citizen of the realm, I've put several of these up I think a day or two ago, no yesterday. I put I put them up and they're there for free. They're there for free to you just if you wanna join the the community, that's where you also get to hear the full the full replays of these very valuable calls. So basically the title for this this meeting, how I got some of you here is saying, hey, your CPA is the one that trapped you in your rental because he quoted you those numbers but here's what he's not telling you.
Dawn:Okay? So that's the point I wanna make. Everyone thinks well I'm not gonna do something creative. I've already been on my soapbox and said that the banks do the most creative financing ever by lending money they don't actually have but that's besides the point. Your your CPA, your attorney, your real estate broker and most likely your financial planner, they know what the installment sale is but they're probably not gonna bring it up to you.
Dawn:You have to be the one to bring it up to them, okay, to get everyone on board and it's just a shame. People people are very underserved in this regard so let's change that. And I wrote up one other little thing. This is also this is also in the marketing downloads as everything's in a doc docker pages word or pages form if you want, but for free, just go get it in the community. Just a two page thing because what one of the big things I realized is people who have owned properties, they're fifty, sixty, seventy, eighty, they don't like flash.
Dawn:They don't like splash. They don't like big promises. They've got a black belt and like you know, wax on, wax off and and they've been pitched everything and they're like nope, nope, nope nope. You know, they just wanna be talked to just in a very sane comfortable level. Okay?
Dawn:So that's been my big transmutation of of my languaging and messaging. So I just want you guys to have that as well in case it helps you in whatever you're doing. Alright. Enough of that and I'm gonna stop sharing my screen. Mark Mark has put his phone number in there.
Dawn:You guys can stay connected. Come over to the community and connect there. And, yeah, it's been fun having some conversation go on there in the last week or so. And Gilbert says if anyone wants to connect, he's got a link in there too. So excellent.
Dawn:Who wants to go first, Mark or Gilbert?
Mark:I'll go.
Dawn:Alright. Let's go.
Gilbert:A little noise in the background of the airport here, but any case, do you or anybody of the crew have any experience with Upstate New York and any pros and cons, comments about Upstate New York as a place where I have some, inventory that might be some zombie foreclosures that I'm considering investigating?
Dawn:I do not. Let's open it up to anybody else. That is way on the other side of the Rockies.
Gilbert:Might even be on the other side of the Appalachians too.
Dawn:Yeah. Probably. Yeah. I think I think that's true. Couple mountain ranges there.
Gilbert:Couple mountain ranges over. Did you have
Mark:a specific town or is it multiple towns?
Gilbert:Basically, there's a whole region from Buffalo where I just talked to a guy today who a couple years ago bought properties for 30 and they're now worth $2.10. So that's where it got my attention. And so basically, I've been doing little I I had somebody just send me a tape with some basically, from the whole region there, Albany over to Buffalo. Are you familiar with that area? Have you done anything Upstate that way?
Mark:Not me personally. I do know someone that owns some property in Upstate New York and recently sold it because of, you know, what you just referenced. They were able to get some equity in there and be able to sell it. So I can reach out to them to get more information about certain areas. Is it Mhmm.
Mark:Are you talking like a tape of, like, 50 properties? Or
Gilbert:This was about 30 properties, mostly Upstate New York. And this came from a guy over in Florida I know who said, you know, that he had a guy and he didn't wanna buy that particular area. And I was watching some of the videos and said because they had so many blighted properties, and this was a couple years ago, the traditional you know, it takes about two years to go through a foreclosure process, but they had put together an expedited model whereby you might be able to foreclose a little ninety days if it's a zombie foreclosure sitting there and there's no nobody contesting it. And as some of the judges had gotten with the local politicians to expedite getting these back on the books and productive?
Mark:Yeah. You know, like, you know, the zombie situation could be in your favor. Obviously. If anybody knows about New York, it can be a train wreck. I mean, if you can get, you know, something stating, you know, what you just said and that that can happen, if there is some type of law and can be pushed, You know, I think they're you know, everything's got a value.
Mark:Even if you don't wanna maybe stay in the property, maybe you can get them back and then just unload them quickly. But if you're to to answer your original question, you know, some of those areas up there are not the greatest. You know, they are $30,000 prop properties for a reason, but that doesn't mean that, you know, you can't make, you know, make a dollar or or, you know, have some opportunity there. So if you want you know, if you have a if you just wanna give me the cities, maybe email them to me. I can reach out to the person that I know.
Mark:But I do know that some of the areas up there, especially, you know, and, like, when it gets close to Syracuse and things like that, you have a good side of town. You have a bad side of town. So it's gonna it's gonna probably, you know, be one of those situations that
Gilbert:You have that pretty much everywhere. I grew up in Detroit area. Right. And I grew up in Oakland County. So if you go south of eight mile Right.
Gilbert:It can get rough in a hurry. And I was I was in Oakland County where the affluent money, West Bloomfield, Bloomfield Hills, Cranbrook, private schools, you know, all the executives with million dollar homes.
Mark:So, I mean, are you looking at these to take them down to, you know, stay in stay in the properties? Or
Gilbert:Normally, the only reason I'm staying in is because I'm seeing appreciation. So if I see pockets of appreciation like they've had some in certain areas of Buffalo, Not every area, but there's certain areas where he was telling me he bought them about seven years ago right before COVID, and it got in for 30,000. And then he's got somewhere going for $2.10 now.
Mark:Yeah. I don't I don't think another COVID's coming anytime soon.
Gilbert:I don't I don't think so either. But but I don't,
Mark:you know, I don't see that type of appreciation. But Mhmm. You know, if I if I'm gonna look at it five to seven years, I mean, I would have to anticipate, you know, the market going, you know, downward as opposed to a steady trajectory upward. So if you, you know, thinking about it in that type of time frame, I wouldn't I don't see that type of trajectory happening in those areas. Yeah.
Mark:But because they are less expensive, more affordable when things shift, you know, people may go to those particular properties because, you know, they can rent them out less. They you know, and things of that nature. So I think there's a give and take there from equity long term equity. I don't think that it's going to appreciate, you know, obviously, like it did, but it still may be good deals for for cash flow.
Gilbert:The the appreciation is sort of speculation as far as I'm concerned. I make my money when I buy. So I'm also doing some tax liens, tax deeds like in West Virginia. So we're picking up tax liens for $2,500 per house, about 2,500 to foreclose, all in for $5. And one of the guys I'm working with the group, I told them, if you know, I haven't seen the inside, and I'll probably buy anything you got for 25,000 each and then sell or finance for a 100 plus.
Gilbert:I've So got a lot of experience doing that kind of thing in Texas in small towns. Right. Yeah.
Mark:So I guess, I mean, you know, if you wanna send me the exact towns, I can give you more information on each one. But Thanks, Gilbert. Mhmm.
Dawn:Yeah. That's great. And just a comment. You know, I don't know if any of you guys use the Reventure app, Nick Gurley's Reventure app. It actually gets down to the zip code and gives quite a lot of data in anywhere.
Dawn:Like if I'm buying a note in somewhere that I'm not familiar with, like a little town. Well, even what I bought one in Waco recently, and I just go, well, let me look at the Reventure app. It's not that expensive. I don't know. $40 a month or something like that.
Dawn:And that ZIP code can tell me is prices projected to go down, sideways, or up, you know, what's you can find all the demographics for that ZIP code and everything. So just another thing to think about and tools. So I'm glad for you guys to connect, you know, together behind the scenes on that. So really great to bring up, and good luck, Mark. That sounds like it could be fun.
Dawn:You'll have to Yeah. Thanks. You'll have to let us know how that works out. Gilbert, did you have anything else? Were you gonna you raise your hand on something?
Dawn:What did you what did you wanna
Gilbert:bring up?
Mark:I have a situation where there's a 55 and over community in Port Orange, Florida. A woman is trying to sell her property. She can't it's not selling for the asking price. It is listed, but she is willing to do some financing. I excuse me.
Mark:I never, you know, dealt with the 55 community, and I don't know, if there is a way that, the deal could be structured that may make sense or what would make sense. And then I know there's other restrictions, like I said, being in a 55 over community. So No. I'm just trying to look for some type of brainstorming
Gilbert:Yeah. You know, behind us.
Dawn:People that have a lot of experience on that. But let me ask you this. Maybe I wasn't listening. Is this like a manufactured home, mobile home in a park?
Mark:Mhmm. It's a it's a manufactured home where they rent the land.
Dawn:Oh, yeah. So first first lien position first lien position's always space rent. Okay? That's one of the biggest things you know. If she if she's doing owner financing, she's by default in second position and anyone who would buy that note is in second position.
Dawn:I did a lot of that at earlier on in my career, and there's a lot of reasons why I won't do it anymore. But if you're the buyer, now that's the power position there. Right? And obviously are you 55? Are you over 55?
Dawn:If you're not No.
Mark:I I I just look it. That's all.
Dawn:Well well, right now, you look like you look like a ghost to me because you're you're going in and out. You're an interdimensional being to me. Yeah. See, that's pretty pretty interesting interesting there. There.
Dawn:We're gonna have to get out our where's the priest? But anyway, you know, it just depends on the terms and and if the park is going to a lot of times they have really strict rules like they might you have to you have to get their whole thick book that they're gonna wanna tell you because sometimes they don't allow anyone to occupy unless they own the own it outright. They won't even allow owner financing or any lien and sometimes and then obviously you could you know, unless you're living there, you gotta rent it to someone who's over 55 and you gotta see if they allow rentals. So those are only my my comments. Anybody else?
Dawn:Unless you bring up numbers. Did you have numbers you wanted to bring up that we could
Mark:I mean, the property you know, she's asking I think right now, it's at $1.18. I know in terms of, like, cash, she was looking at somewhere around a 100,000 if she could get it. Obviously, that's not happening. Mhmm. In terms of seller financing, if she could maybe get you know, she initially said, you know, half of the 100,000 and then take payments on the on the other half.
Mark:What's made The unit
Dawn:Yeah. What's
Mark:made said would rent for about 2,400.
Dawn:What?
Mark:It's a three bedroom, two bath manufactured.
Dawn:What's what's rent?
Mark:That this is what she's telling me.
Dawn:I mean, I'm sorry. I'm sorry. What space rent?
Mark:She told me $708.
Dawn:And does it go up like $50 every year?
Mark:I didn't ask her that, like I said, because I didn't know really what questions to ask or not to ask, but she didn't mention you know, she just said right now it's $708. So Well don't know what it might be projected for next year.
Dawn:Yeah. Well, usually, if you're gonna get someone their price, the 50% down, unless you're owner occupying, is really usually too much to make it worth it. I I would just plug out what does she need the money for? And if you can just really get into that, if she'll really tell you the exact reason she needs money. Is it just risk?
Dawn:Is she just underwriting, making sure you have a lot of skin in the deal, or does she actually need it for something? Or does she only need some now and some later? So
Mark:Yeah. I think, you know, she just put those numbers out there as a starting point. I think, you know, obviously, we can come down on that. She mentioned about, you know, moving to another place, you know, being able to furnish that place and things of that nature. So she
Dawn:can't she can't move on really until until you she gets her money from this?
Mark:She needs some, yeah, she needs something in order to make her next move. So and then, you know, I talked to her about you know, obviously, once the note is created, you know, there's a possibility that she can, you know, sell that note to get the rest of the money that you're looking for. So she knows all that, and she's just kinda looking for a solution to her problem. It's just, like I said, I've never dealt with the 55 and over community. So I
Dawn:I it's I wouldn't worry about there's a lot of old people like us. Right?
Mark:But but in Florida.
Dawn:It's just, yeah, it's just the numbers and the rules of the park. And, but, really, you have to get at what she really needs for for you as an investor to make money, you gotta get it below market price or below market terms or both, you know, to make sense. But and I wouldn't actually wouldn't wanna have to count on top rent. There are several areas in the country now where rents are starting to soften. Even in Nashville where that the DME, the Diversified Mortgage Expo was last month, that last month?
Dawn:Go ahead, Ben or Amy. Looks like you have your hands up. I don't know if it's for Gilbert or some other other thing.
Mark:Hey, Don. Yep. Hey. So I have a question. I've been doing,
Dawn:Thank you for engaging with my content. If you'd like to hear the rest of the replay, please go over to citizensoftherealm.com and join our free community. If you'd like to participate live, be sure to subscribe at notequeen.com and if you have a situation where you could use some one on one help, check out notequeen deep dive dot com and schedule a private consultation. I guarantee that one hour with me will either make or save you thousands. Take this information and go out there and create financial solutions just one mom and pop to another.
Dawn:See you next time. Take care everybody.