How To Get Your Capital Back in 90 Days | Episode 145

Want a way to buy very safe, very profitable real estate notes… and recoup ALL of your capital within 90 days while still receiving zero-risk profits for years to come?  I’m Bryan Ellis.  I’ll tell you how to do it RIGHT NOW in Episode 145.

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Hello SDI Nation!  Welcome to the podcast of record for savvy, self-directed investors like you!

Here’s a shout out to Julie Blackwell, who just yesterday and without any prompting, gave this show a 5-star rating on iTunes and left this review… she said:  “This is the best and most honest investment advice I’ve ever listened to.  Thanks so much!”

Julie… THANK YOU… I’m so grateful to you.  Please do me a favor, Julie… drop an email to me at [email protected].   I’ve got a special thank-you gift I’d like to give you for giving this show such a nice, unsolicited rating on iTunes.  I look forward to showing you my appreciation!

Oh… that goes for the rest of you, too…  if you’ve not already given this show a 5-star rating on iTunes, I’d be really grateful if you’d do that right away.  As soon as you’ve done so, just email me at [email protected] and I’ll send you a very nice thank-you gift too!

My friends, I’ve got a VERY powerful concept to share with you today.  You’re going to love it.  It’s a bit advanced, and I won’t mislead you:  It takes some effort.  But the payoff is astounding.  Basically, it’s a way to get high-value real estate cash flow assets at absolutely no cost.  It’s not a zero-down strategy, as you’ve got to have capital to get into the deal and hold it for a time – frequently under 3-6 months – but after that, you get most or all of your capital back, there’s no longer any risk to your capital, and you still get to enjoy a substantial flow stream for years to come.

Here’s how it works:

This strategy involves real estate NOTES, which are loans used to purchase real estate.  For example:  Imagine a guy named Bob Borrower, who buys a $100,000 house by putting up $20,000 in cash and borrowing $80,000.  The document Bob signs that specifies his repayment terms is called a “promissory note”, or “note” for short.

So here’s a really, really simplified version of this strategy.

Let’s imagine that Bob has paid his mortgage very reliably for 4 ½ years, but 6 months ago he lost his job, and in the time since, he’s only made a couple of payments.  Thus, he’s defaulting on his loan and on the path to foreclosure.

That’s a problem for his lender, because with every missed payment, the value of that loan declines, and the lender knows it.  Furthermore, foreclosures are to lenders like Kryptonite is to Superman:  Something to avoid at nearly any cost.

Thus, maybe some smart investors – say you and me, for example – we contact the lender and offer to buy that defaulted note.  If Bob had made all of his payments on time, the note would probably have a balance of around, say, $73,000.  But since the note is in arrears and headed towards foreclosure, you and I offer the lender $60,000 – and they take it.

But you and I chose to take the risk of buying that defaulting note for two really excellent reasons:

First, we analyzed the payment history and looked into Bob Borrower a bit.  We discovered he was always completely reliable prior to losing his job, and we have every reason to believe he’ll resume those payments when he finds a job again… which you and I believe to be likely.

And Secondly, even if Bob never gets another job, our money is still safe, because our $60,000 is secured by a house worth $100,000.  If nothing else, we can sell that house, get our money back, and probably even make a profit that way.  So to me and you, there’s really not a huge amount of risk.

So we buy that loan for $60,000 and we set out to work with Bob to get him back on track.  Sure enough, he gets another job, and you and I amend his loans to put the missed payments at the end and let Bob begin again with a “clean slate”.

And now, what you and I have is called a “reperforming” loan.  Before Bob missed payments, his loan was called “performing”.  When he wasn’t making payments, it was classified as “defaulted”.  Now that he’s paying on time again, it’s called “reperforming”.

But you and I are savvy investors, and we’re focused on one thing:  How quickly can we get our capital back?  So here’s how we’re going to do it:

We’re going to sell off a part of that loan – not all of it, just enough of it to collect our $60,000.  And however much of the loan is left will be the profit that you and I get to enjoy, without having a single penny of our own capital tied up in the deal!

I’ll not bore you with the calculations, but a very good estimate is that in this example, we’d have to sell off about 2/3 of the remaining payments on the loan.  In other words, somebody would give you and me $60,000 and in exchange, they’d get roughly the next 200 payments from Bob, after which you and I would receive the final 100 payments or so.

What have you and I accomplished?  Investment MAGIC is what we’ve accomplished!  Because you and I have purchased a defaulted note for $60,000… we then rehabilitated the note back into reperforming status… then we extracted ALL of our investment capital, so that we have exactly ZERO money remaining in the deal.  And 200 months into the future, we begin collecting monthly payments from Bob… for 100 whole months.  That’s right… 100 whole months of payments for which you and I have not a single penny invested or at risk.

Now if you’re thinking… that’s crazy… why would I do a deal where I don’t get a payoff for 200 months?  Then you’ve totally missed the point.

But if you get it… if the notion of doing deals where you’re able to get ALL of your capital out of the deal in a short period of time – usually 3-6 months – and in the process build yourself the equivalent of a very strong annuity that pays you for an extended period of time without effort on your part… well, if that’s what you got out of this brief description, then you understand why I LOVE this strategy so very much.

Like I said, it’s complicated.  It’s not the easiest thing in the world to find the right kind of notes for this strategy, but the payoff is worth the effort, because you can do one deal after another after another… ALL with the same capital!  What if you could take a piece of capital – say $100,000 – and do one of these deals every year for the next 15 years?  Remember – you could use the same $100,000 over and over, you’d never need to add more money to do the deal again.  But at the end of 15 years, you’ve got 15 separate “annuities” that are going to begin paying you very, very handsomely in the future… and for which you’ve got zero money invested and zero money at risk.

That, my friends, is investment BRILLIANCE, if I do say so myself.

Interested in doing some of these deals?  If you’ve got at least $50,000 of liquid capital and want to see if it’s right for you, set up a time for us to talk by going to SDIRadio.com/consultation.  I’d love to chat with you.

My friends:  Invest wisely today… and live well forever!

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