I really wanna build a network nationally of agents that are really hip to this owner financing conversation. So please go over to notequeen.com/agents. Okay? And it's there's no reason ever to let a commission slip away. What great ad copy.

Right? So you got a listing ready to expire. You're doing one price reduction after another. You got a deal falling out of escrow, a buyer who can't qualify. We have programs to get more properties sold and more cash in your pocket.

So, basically, what you need to do, if you're taking listings, especially those high end listings in that 800 to 3,000,000 800,000 to 3,000,000 is really a sweet spot. And also if you can cultivate buyer buyers that have 20% down, these perfect niche like Amy was representing perfectly. Hey. I'm self employed. She makes good money.

She's a veterinarian. She's a highly qualified individual. Okay. So welcome to Property and Paper live. Here we are on Saint Patrick's Day, and thank goodness I thought to put on a green scarf today.

I don't know about the rest of you. You're in very dangerous territory. But, anyway, this is where we talk about owner financing, note investing, and, what did I say? Seller financing, note investing, real estate. Yeah.

Real estate plus seller financing equals note investing. And the reason I put that together that way is when people discover the note business, they go, oh, I'm all into that. I I wanna start investing in notes. And then I find out they have 12 properties free and clear. And I go, look.

The easiest way to get started investing in notes is to carry paper on your own property and create your own note. And then once you kinda get that under your belt, maybe you wanna start now I'll go now I'll go buy other people's notes with their borrowers, with their collateral. Right? So, a lot of times, it's the easiest thing to do is for in in actually, the the easiest thing in the world is for a landlord who has a longtime tenant who has the willingness of the desire and the ability to own is to just sell the property to their tenants. And buyers are thinking, oh, I can't afford you know, how do I I can't afford today's rates.

I can't afford today's prices. But if the the easiest thing to do for a buyer who wants to get into their first home or their first rental property is to just, I don't know, ask, I guess, ask your landlord if they'll carry for you. That's how I got, anyways. I bought two personal homes in the last twelve years, and both of them were with owner financing. So I don't ask banks for loans.

So, I'm a little bit of an outlier, which makes me kind of a perfect complement in a lot of ways to the financial guys who can put the institutional money together because I'm not naive. There is a place for bank financing. It's just that, theoretically, they're optional. Wall Street and big banking is optional if we really came right down to it. Because what we can do is someone who like a landlord, it's natural.

They usually just want their income to keep going, and the tenant wants to buy instead of rent. So it's really a perfect marriage. But there are times when people need to know that they can get out in three or five years, and they wanna know that that buyer is prequalified that, maybe they're self employed and they're just waiting out their two years or their seasoning or something. That's very common. If you, as a realtor or if you're listening and you're a potential buyer, if you can put down 20% or more and you can show that you will easily be able to qualify for a traditional mortgage within three to five years, and your credit's, like, 680 plus, you know, it's so easy to to get put that deal together where the so then you can get as the buyer, you'd have the seller carry.

You'll give them their price, and they they just carry for three years. And most of them, if they get their price, they're willing to do that for a strong buyer. I wanted to angle today to realtors, to professionals, because there's a lot less transactions happening. And if, number one, you gotta figure out how to work in this sort of parallel economy, we're not. I mean but what would even one more deal close?

A lot I think 70% of agents only close one deal a year anyway. So if you could double that to two, what would that do for your bottom line? So the the opportunities that I see, if you're a listing agent, you've gotta be able to have the ability to talk to your client about potential owner financing or at least bring it up. Let's say, hey, mister Seller. We're gonna try to get you your price.

But just in case I can't, I would like to have more than a price reduction to hit it, you know, to throw at you. What would you be willing to at least explore that? And if they go, what do you mean? I don't want some terrible buyer. You can you can push it to an extreme where you can say, oh, okay.

You've got your property listed for one point six, and you've been on the market now for a hundred and twenty days plus. Do you do you wanna reduce you wanna reduce the price? You wanna make a 20% cut? Because the market's just not moving right now because the buyers that can afford this are not gonna pay six, seven, and 8%. They're just not.

They're sitting there waiting for a deal. So let's say you're listed at 1.6. If if someone came in, and and, of course, this is unlikely, but it's just a way to to broach the subject. If someone came in and gave you 1,500,000.0 down and all you were asked to do is carry a 100,000 for three, maybe five years, would that be okay, or would you rather drop the price down to, like, 1.399? You know?

So it's just about starting to have the conversation knowing that in your back pocket, you have an option. You've got a secret weapon because if a lot of these people own their properties free and clear, but if they don't, they usually have, like, a two and a half to a 4% mortgage rate still on there. So if they're willing to lend a borrower, a really good qualified borrower at three to four to 5%, then then not only do they get their price, they get a big fat down payment, and they get paid monthly because of the the yield spread. Right? So if they're getting if their loan is at two and a half and they're lending to the buyer who is shown to be qualified to easily refinance within three years, that's an extra $1.02, 3, sometimes 4 or $5,000 depending on the price point.

Right, a month just just for waiting. So you get your price, you get a big fat down payment, and you get monthly income. You get paid after the closing. You know, how bad can that be? How great how great can that be?

And then someone who's who's got here's here's the funny thing right now is if there's someone who's let's say they're self employed or they were, like, a a paid manager or CEO or something like that, but then all of a sudden they or they were an employee salaried, then they went to the owner of the same company. They can't qualify for a loan. Even if they had $3,000,000 in the bank, they can't qualify for a loan for a $1,600,000 house sometimes. That's the crazy thing. But that craziness in the institutional lending is what creates an opportunity for us in the private side of all of this.

Right? Because we know how to put deals together. If someone's is a really strong buyer, they'll put a big fat payment down, then my gosh. And then if they need extra cash, we reverse engineer the note so that the seller, if they need more than the buyer's down payment, we can buy a piece of that note, a partial, at or or slightly after closing or a year down the road, medical bills come up, something changes. There's all sorts of liquidity options that we could create.

So there's deals to be had. So the only thing that has been the biggest problem and if there's any questions, I better look. Amy says, I found a property I'd like to buy with Seller Financing. Owner is game but wants full price at 6% interest because he could take the profit and put it anywhere and make 6%. So he's wanting 6% and you're wanting to put down two point, or you're two point.

So you're pretty far away on there. Let's bring you on live here in a minute, Amy. Let's see. How much down yeah. I want the 55 down payment on a $350 purchase price.

Okay. That's nearly 20%. He wants full price in terms he likes. He owns free and clear. That's nice.

I the subject too can be done, but it's just a little teeny bit messier. But there there's a good option I wanna talk to you guys about today. If the terms are what you need, you can Yeah. Ben says offer him more than asking. Or, Gilbert says, you may need to wait for them to be a little more motivated.

Price or terms, the seller can have one but not both. That's a good idea.

I don't wanna pay them more than asking, to be honest, because it's already high.

It's already high? How long yeah. Thanks for coming on. So, yeah, let's talk about this. So is this the one that we talked about, like, a year or two ago?

Or No. I just keep trying. But, you know, I think, it takes a special seller to understand our play, I guess. And, yeah, I got on the phone with this guy because I wanna make it a rental right now because it's in Florida. And I wanna make it a rental until maybe I'll end up living there eventually at some point.

You know? But right now, it's gonna have to be a rental. So the places are they said the neighbors or I spoke to the wife first. She said the neighbors were renting a home there for 2,400 a

month. And

so I said, okay. Well, that means I'll need 1,200 payment for you guys, you know, carrying the note. Right?

Mhmm.

So I worked backwards from that, and I just put in thirty years, and I'm willing to put 55,000 down.

Mhmm.

And I can't get bank financing. I can't because of my small business that I run, and they look at net income and yada yada. So

Yeah. So 55 divided by what does he want? $303

50.

$350? Yeah. So the 16% down, that's it's, it's respectable.

Yeah.

Right? So, in this case, does he have a what was it what's his basis? What kind of a check is he gonna write to the IRS?

He has a he bought it for a 189,000.

So that's quite a bit of gain. He's gonna write a check. He's not you know, he has to count the you know,

but he's married. Doesn't he get the $500,00...121?

Oh, was this his personal home?

Yes.

Oh.

Well, I think so. I think it is. I know they have other properties, but I think this is their personal. I would have to ask that, I guess.

Okay. Yeah. Okay. If it was his personal home, you're you're right. They do have that.

We'll say it's not, for example.

Yeah. Because then if he's basically looking to double the price, then I would imagine I don't know. What would you guys guess a typical capital gains just on an average person's portfolio?

I don't

know. A week or 10? 20?

Forty?

Forty? I don't know if capital gains would be quite that high, but let's say 25%. What would that be? Let's say he wants, just for kicks and giggles, minus one eighty six times point 25. He'd be yeah.

You're right. He might be writing a $41,000 check to the IRS. And then that's money that's not available to earn interest for him at all. So it's yeah. But but the motivation has to be there.

It's funny. Yeah. Part of is this a part of Florida? There's some areas that are crashing hard, and then there's some areas that are crazy. They just will not crack.

They're, you know, still multiple offers in in the 6 and 7 and 8 and $900,000 price range.

This is a small sleepy town. It's, North Of Daytona Beach. It's called Ormond Beach. Mhmm. And there are some I I found a home I like too for, like, 2,900,000 that's kinda on the water.

Huh...350 versus 2,900,000

Well, and too, my friend lives there. A good friend from college lives there and knows the people who own the 2 point whatever, 9,000,000 2.6 or 9, something like that. And their kids graduated high school, so now they wanna sell. Anyway, I don't think I could work that one out, but I could do the $350 if the seller were game. But I think he does need a little more time because it's been, like, forty forty two days in the market or so, and I talked to them probably a week or ten days ago.

So this is listed then?

Yeah.

Did you have someone, representing you, or are you just representing yourself?

I don't need an agent.

Right. So, that could be a way too since, you know, he's double ending it that you could say maybe he'll carry for less, and that'll kinda sweeten the pot. But it seems like they'd need to be on the market for sixty to ninety days in most markets without any activity at all before they're like, you know, maybe. Yeah. But, anyway, that's that's great.

I mean, buying with owner financing to me is one of the best positionings that you can have, especially if you know the, you know, the five there there's some five really powerful ways to really amp up that that positioning. Like I've told you guys, I bought this place for $250 with the 15% down, and and then I ended up buying the note for a discount. So I got for a lot cheaper. Right? Okay.

So it's just about, it it's solving problems, giving people what they want, and getting what you need first and then positioning for extra benefit down the road. But, yeah, there's nothing like long term financing. But

Wait a second, Dawn. So you bought the note on the house that you live in, so you owe yourself every month?

It's it it works out to be a short refinance. That's how it plays out in real life.

That's awesome.

Yeah. So so there's there's really some juicy things like that that you can do when you've been around this business for for a while. So you just just position yourself for other opportunities that may may not arrive, but they could. And what if they did? Isn't that great?

Yeah.

Get in deeper on your own property, and then possibly you can wrap it to another buyer if you ever wanted to sell, possibly, potentially, which preserves the market value of your real estate when you have good underlying terms already there.

Amy, do you know how how long he owned that house?

I don't know, but it's paid fee free and clear. I asked him, and he told me.

Alright. But if it's an investment property, you're not only or he's not only battling capital gains, he's also battling depreciation recapture. So Right. These are big numbers that he's unaware of if he's not doing the 1031.

Okay. I need to find out about that then.

Yeah. Find out if it's if it's investment property or if he's still under homeowners one twenty one. That would be a significant difference. In terms of, like, is it, hey, mister Seller, is it the price that you sell at, or is it the net that you're gonna walk away with? What's more important?

Because, you know, it's it's hard. I I was consulting with, I don't even know. It might even be on here With with a gentleman who is going, should I sell this rental? The people just moved, because I I can put it in this what did he call it? I think a money market fund, and it compounds, you know, historically between 712%.

So I can make a lot more if I just take the little bit of capital gains hit and that, and I go, okay. So so are you guaranteed seven to 12%? Or if the market shifted, could you be down at zero to 2% theoretically? And he goes, yeah. If things crashed, it could be like I would have done better carrying paper.

And I said, this is a great home right in your backyard. You can provide home ownership to someone, and you can get your guaranteed return, right, and not write any very little on capital gains. And, you you have a a sure thing versus, if if the market shifts, it's it's just, oh, and if things change, how are you getting your money back? I don't know. You can always take back a property, especially if it's in your backyard.

But if if the stock market things go down, they they might sound juicy, but you might end up with equity instead of your cash back out. All the you know? We've got a lot of weird things happening in the market. I I anyway, it's very individual depending on how you're weighted. You know?

Do I have a lot of stuff that I have a lot of third party risk, or do I not? Do I have paper? Do I have property? Do I have other things? How am I diversified?

It's very individual for people, how how it actually makes sense. So that's why the consulting product that I offer is is really helpful for people when they're just sort of teetering on that, oh, I'm sort of going this way or that. Help me think down the road just a little bit more. And in that case, I said, you need to sell your property for 50,000 more than you're thinking. But, anyway so here's another aspect, and I wanna bring this back around in the first part of our call, the part that will go up on YouTube.

And if you're watching there, please subscribe at notequeen.com, and feel free to come over and join us in citizensoftherealm.com. But, anyway, will that realtor realtor's brokers let them let them deal in a seller finance because some brokers say, no. You can't do seller financing. That's another issue. Right?

Have you had any conversations with that agent? No. Because he might say, oh, we we can't do owner financing. My broker says no. Like, straight up.

They'll they'll they'll just say no. We I won't even present your offer Yeah. Theoretically, right, which is unfortunate. So the point I wanna talk to and thank you so much for bringing that up, Amy. I love it when people bring real deals, real situations, to this call.

It's so much better than abstract concepts. So that's where realtors and their brokers, if if they could if we could mitigate the risk, right, if if a broker could be indemnified against, potential liability from not so much a straight owner financing, but even more the subject to sorts of deals that are happening out there, If if brokers could be assured that they weren't going to get sued, or if they were, that they would be indemnified and covered. There there's some org there's some businesses coming out of the woodwork right now who are, not exactly doing the it's kind of like the upscale version of the PACE Morby thing, but in a way that where there's just teams of attorneys and all these different things put together specifically so that agents don't have to worry about, being involved in a seller financed deal. So, all the time, it's happening. So if you're you're an agent, get your name on my realtor mailing list.

Okay? Because I really need to build I really wanna build a network of of agents that are really hip to this owner financing conversation. So please go over to notequeen.com/agents. Okay? And it's, there's no reason ever to let a commission slip away.

What great ad copy. Right? So you got a listing ready to expire. You're doing one price reduction after another. You got a deal falling out of escrow, a buyer who can't qualify.

We have programs to get more properties sold and more cash in your pocket. So, basically, what you need to do, if you're taking listings, especially those high end listings in that 800 to 3,000,000 800,000 to 3,000,000 is really a sweet spot. And, also, if you can cultivate buyer buyers that have 20% down, these perfect niche like Amy was representing perfectly. Hey. I'm self employed.

She makes good money. She's a veterinarian. She's a highly qualified individual. Right? But there's a lot of people out there that if they can get seller financing for at least three years in in at, four or 5%, they will go ahead and pay full price for the property.

And there's a way for and if you're really interested in this, you gotta get on my list because I'm gonna start making introductions and being more intentional about about talking to agents and how to mitigate the risk. Right? So if your broker is just not gonna let you do this now there there are some big companies that are already letting their agents do it if it's done properly with, you know, some of these newer players on the market that are just doing it like Cadillac version version, like, Rolls Royce version of subject to and all the disclosures and everything that protects everybody with the what ifs. What if it does get called? Okay?

Well, that's already handled. And then this is basically a paper that they're they're putting together. A paper, not b paper, not c paper. So, anyway, it's that's what I'm focusing on. I I last year, I got my license again.

I had it years ago in California. I was an independent broker for a number of years. And then when I moved to Nevada, I just sorta let it go twelve years ago. And now I've got it again because, there's just more ways more ways that we can monetize the efforts that we're already doing, and there's a lot of pain in the marketplace. Right?

So you see a lot of, there's some softening even hitting a little bit of of Reno where the median home price, based on what I read recently, is down, from last year, I wanna say, year over year. It's instead of $6.50, it's $6.25, which is still still high, right, for the first time homebuyer. But if you're not the first time homebuyer, you know, the anyway, there's just a lot I would love to work any any buyer anywhere in the country that can put 20 plus down even if you're borrowing it. If you're a younger person, a lot of parents are giving their inheritance part of the inheritance early to help the kids. 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 notequeendeepdive.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. See you next time.

Take care everybody.