So , would you rather pay today ’ s high interest rates to someone else , or have someone else pay them to you ? That ’ s why NOW is the time to be the bank , so those high rates can be paid TO you instead of BY you !
As traditional lenders tighten their lending restrictions , they ’ re turning away thousands of wellqualified people with steady income who are eager to buy homes . The caliber of today ’ s rejected buyer is higher than ever . And because so many buyers with solid credit are tired of being turned down by mortgage companies , they ’ re often willing to pay slightly higher interest than the standard rate . You can meet these needs and fill the gaps by creating and owning mortgage notes .
You may be thinking that you don ’ t have money to lend ; but you probably have access to more than you realize . To get started , you can use money from your selfdirected retirement account to fund your deals with incredible tax advantages — and earn a much higher rate of return than you get from a typical IRA . It ’ s a technique my wife Martha has mastered which we call it the “ Martha Method ,” and we can show you how it works .
Our students learn the three pillars of note investing that empower you to be the bank . You can start by focusing on one area to gain confidence and build proficiency , then branch out to try another category , then another . Eventually you might be involved in all three ( which most experienced investors do ), or just stick with the one you love most . It ' s all about finding the perfect path for you , your goals , and the type of market cycle we ’ re in .
1ST PILLAR : SELLER FINANCE YOUR RENTALS
Being able to sell a rental property with seller financing is the silver lining
rentals rather than collecting rent checks . Just run the numbers .
There are two questions landlords ask before they decide to sell a rental property : Will I have to pay capital gains on previous appreciation , and won ’ t I lose out on future appreciation ? As for capital gains , the IRS offers the Installment Sales Method . ( Your accountant knows about it but might have never mentioned it to you .) This rule allows you to spread out your capital gain in small chunks over the next twenty years . These smaller amounts allow you to keep your annual capital gains income below the threshold required before you pay any tax at all . As for future appreciation , high mortgage rates have kept a lid on rapid price appreciation . ( The National Association of
THE THREE PILLARS OF NOTE INVESTING
I founded NoteSchool about 25 years ago , and we ’ ve helped thousands of students learn how to be the bank . Many come from other facets of real estate , while others have no real estate background at all . But they all wanted :
• Secure monthly cashflow
• Long term wealth for secure retirement
• Freedom of the shackles of a 9to5 job
• The ability to live anywhere they want for burned out landlords who want an exit strategy from the hassles of rentals but still need monthly income . It ’ s not a complicated process to learn how to sell your rental property with seller financing — so the high interest goes into your pocket instead of out . Plus , you never have to pay another repair bill or insurance premium .
I can say this with no exaggeration ; landlords can make double or triple your monthly income by seller financing your
Realtors just released their national average prediction of + 2 % for 2024 .) The added monthly income from seller financing will far exceed what you stand to make by waiting years for the property to appreciate — so you get your appreciation NOW instead of years from now .
You ’ ll be surprised how easy it is to structure the paperwork when you create your seller financed notes . You ’ ll also love realizing you can own a hundred notes for less work than owning ten rentals .
19