In this economy, Landlord are seeing their profit margins dropping from around 10% down to 4%. This is causing landlords to start looking for more efficient ways to deploy their capital. A great way to boost your returns is to sell your rental properties with seller financed notes and become the Bank. |
Background
In the past, landlords could normally enjoy returns close to 8 to 10 % on their rental portfolio. Over the past few years, the return on rentals has dropped down to 4%. Why has there been such a drop when rental rates have been increasing (+20% since covid)? The reason is that your expenses have been increasing at a much higher rate (+50% since covid), dropping your net profit on your rental portfolio!
Overview
During the presentation, Eddie discussed the benefits of moving to a note investing solution for your rental portfolio, increasing your rate of return, providing a steady stream of income and giving you a good part of your day back!
Become the Bank
By moving from rentals (think “Landlord”) into Seller Finance Notes (think “the Bank”), you can increase your returns dramatically. When you are the Bank, you will start receiving monthly payments not for the next year, but for 20 or 30 years. And finally, the workload to support a note is significantly less than a rental (1 rental takes the same time as supporting 18 notes). Your biggest question will be what you will do with all your free time!
Replace your Monthly Income Stream
How do notes create these improvements? When you sell a property with seller financing, you can set the terms in such a manner that you will receive as much in your monthly payment as you receive in rent. By selecting the correct borrowers, you can have a long-term stream of income to meet your financial goals. In addition, the down payment will be paid at closing and will allow you to treat yourself to something nice today!
Reduce Expense and Gain Back Time
While expenses for rentals can exceed 50% of the rent, expenses for Notes range from $0 up to what a 3rd party servicer would charge (normally less than $40/month)! And the reduction in your time will be immediately noticed. No longer will you be finding new renters annually or receiving calls for broken ACs and clogged toilets.
Future Investment Options
Once you have a seasoned note, you have many different options to sell the note if you are interested. From a full sale to selling a limited number of future payments to sharing part of your future payments, the investment opportunities for you as the note owner are numerous. You can find an exact solution that will meet your future investment needs!
Summary
Transitioning your rental portfolio to a seller financed notes can increase your rate of return, significantly decrease your workload and give you numerous opportunities for future investment opportunities.
Presenter-Eddie Speed
Since 1980, W. Eddie Speed has dedicated his professional life to the seller financing and non-performing note industry. Over the years, he has introduced innovative ideas and strategies that have positively impacted the way the industry operates today. Eddie founded NoteSchool, which is a highly recognized training company, specialized in the teaching of buying both performing and non-performing discounted mortgage notes. He is the owner and president of Colonial Funding Group LLC, which acquires and brokers discounted real estate secured notes. In addition, he is also a principal in a family of Private Equity funds that acquires bulk portfolios of notes. He has been a leader and innovator in the Note Business for over 30 years. He will tell you that those 30 plus years have prepared him for the incredible opportunities of this current real estate market.
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Connect with Peak Notes Why not set up a meeting with a Peak Notes specialist to discuss this exciting presentation from Note Expo 25! Meetings are brief, cost nothing and can give you more insight into how you can maximize your investment potential! If your property is located in Florida, please click on this link and set up a meeting with John (https://peaknotes.zohobookings.com/#/talkaboutyournote). If your property is located outside of Florida, please click on this link and set up a meeting with Karen (https://calendly.com/karenw-peak-notes/30Min). |