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Learning The Hard Way

When I got started in the business and learning from my attorney friend, after about five days in, he patted me on the back and said, “You know, go get ’em tiger.” I went back home and started scratching my head because there was no marketing strategy or plan. It was just like, “There you go. Good luck.” As I started trying to piece it all together, I had this idea to put an ad in the San Antonio Express newspaper, which is where I lived. It was about three lines, with my phone number, and it said, “Top dollar paid for notes and mortgages. Call.” I put the ad in on a Monday and found out on a Tuesday that I had to go in for out-patient surgery on Friday.
I showed up at the hospital, had my hernia surgery, they gave me a bunch of pain meds, and I went home and laid on the couch. I’d listed my home phone number because I didn’t have an office number. People started calling off the ad and answered and started just talking. People often ask me what I said and to this day I have no idea what I said! I guess the pain pills worked.  Well, a lady showed up at my door with a file full of paperwork on Saturday morning. My roommate opened the door and she said, “I’m here to talk to Troy.” I was horizontal on the couch because I couldn’t move.
She saw me laying on the couch and handed the paperwork to my roommate. I told her that I would look it over that weekend and get back with her. I ended up getting back with her Monday and on Tuesday got the deal under contract. It was something that her husband actually created when he sold one of his fix and flip properties. They were looking to cash out on the note to do another house.
That was the first deal I ever did as a broker and I brokered the deal to the Associates Financial Services. They gave me a price and I took my fee out of the deal.
Wish I could remember what I told her over the phone that day!
My next deal was on a house in Lotus, Texas. It was a little $35,000 note where they had put down less than 5%. It was a big trend back then when people were putting minimums downs. The interest rate on their loan was 14%.
This particular couple, married with two children, went out and refinanced the loan at a local bank in the area. It was very common with those small-town communities where there’s always one or two local banks that would finance those smaller balanced loans. They lowered their interest rate down to about 7%, which put more money in their pocket and obviously paid off their loan in a shorter period of time.
This may sound like it was a bad thing for me because I wasn’t getting 14% interest, but I like loans that have that no prepayment penalty.  On the plus side, they would come in and pay this off sooner, which means that that interest that I yield on that loan actually skyrockets. In that particular case, it was 14% for 30 years. When they paid off the loan, which was two and a half years later, our interest rate was running around 32% yield on that particular deal.
When we bought it, the face rate of the loan was 14%. We bought it at 70% UPB, which put the yield on that particular deal. We came in and bought this at a 22% yield. When they sold it, it jumped up to 33%. The reason it did that was because we no longer have that term that goes out 30 years. We now have condensed it down to two and a half years, but we still bought it at the yield, which meant that we got that spread. We earned that back sooner versus later. In other words, it coincided with the time value of money.
I want to stress to people that I have a 14% interest rate face amount, or that’s written into the note of the mortgage. I didn’t give the seller of that note the full value. I only gave him $24,000 for that note, and that’s what raised the yield to 22%, spread over 30 years. When they shortened up the period, it actually raised my yield because of the original discount.
It’s interesting, because at the beginning of my career in this industry, it was very common place that notes were created with interest rates anywhere from 12% to the highest I ever saw 23%. In some states, like Arizona and Texas, there’s no usury law.
It’s interesting when you compare the industry 21 years ago to the industry today. How much it’s evolved, but also, what used to be standard then is “out of this world” type ideas. What’s standard today is something of a whole different matter. Meaning that people become much more educated and much more in-tune financially, which is wonderful. You don’t see people buying houses with 14% interest anymore. Even what I call the subprime market, people think that’s always been a 4% or 5% market. Actually, subprime used to be 12% money, even from the banks.

Getting Started With Notes

I have noticed that there are a lot of people involved in real estate nowadays, especially the fix and flip market. I see the banks are not addressing the under-served side of the consumer base, meaning people that earn less than $150,000. Home ownership, as far as home values go, is not typically served or […]

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Yields and Returns on Capital

Yields The beauty of the note business and the challenge of the note business at the same time is the infamous question of “what is your yield?” Or “what kind of return are you looking for?” We get that question on a regular basis from sellers and we also get that question on a regular […]

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Power of Credit

Credit plays a big role when it comes to notes. You still have to have good credit, and we look at this in length. What’s driving this person’s credit down? Is it the fact they went through a tough season and they haven’t taken time to re-establish credit? Are the issues on their credit old […]

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Working With Title Companies to Source Deals

This week, I want to introduce you to a strategy that I have been using throughout my years in business… That is working with the servicing division of local title companies to source Note Deals and advertise your company. The large title companies that we know on a nationwide basis, places like First American, Fidelity […]

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PINNACLE INVESTMENTS OFFERS BOOK ON HOW TO BREAK INTO MORTGAGE INVESTMENTS

CHANDLER, AZ (2/5/19)— Mortgage notes have always been one of investor’s best-kept secrets, according to Pinnacle Investment’s own Troy Fullwood. They are a low-entry opportunity with potential for steady long-term monthly income. So why are so few investors utilizing notes within their own investment portfolios? According to Fullwood there is a lack of information on […]

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The Key Elements of Successful Real Estate Investing in Mortgages

For those who want to start building some wealth, real estate investing can actually be the ticket that could make that happen. There are quite a few steps that need to be to followed in order to become a thriving real estate investor. Step one: getting a real estate education. Real estate investing is a […]

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Demand in the Real Estate Industry

The real estate industry’s pared-down definition is land. However, it’s much more complicated than that. The industry involves the buying, selling, renting, leasing, and management of commercial, residential, agricultural, and other kinds of property, including all the functions that support such activity, such as appraising and financing. The successful realtor is necessarily a shrewd salesperson […]

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Investing in Non-performing Loans

Investing with Non-performing Loans Investing in Non Performing Notes can be one more revenue stream to use in your real estate business. You can purchase some notes for 50 cents on the dollar or less. Buying notes at 50 cents on the dollar does not guarantee a good investment, but if you can buy a […]

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Knowing the Law on Deed’s

Regardless of what type of investing you are on the market for in the real estate world, you always want to make sure you have a contract for the deed. Knowing the law and the how it obtains to your deed is one of the most crucial steps in your investing process. We all need […]

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How We Can Help!

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We Buy Mortgage Note, Trust Deeds, and Contracts Nationwide!

 
At Pinnacle Investments, our team works closely with you to understand what all of your goals are. We work with mortgage note buyers as well as those who are looking for an opportunity to tap into a wealth investment solution. With mortgage note investing and real estate note buyer services, we are here to help you make the right decisions for your needs.

The Note Buying Company You Need

Serving all of Phoenix, AZ and Chandler, AZ, our team is here for all of your investment needs. When you want to sell notes, turn to our professionals. We can help you with most needs. We are a mortgage buyer, note buying company, and land contract buyer. We buy trust deeds, and we are a promissory note buyer. You can turn to us as you land contract buyer or private mortgage note buyers.
 
No matter what type of investment you have, we are happy to speak to you about your options. As a company dedicated to your best outcome, you can turn to us with questions and concerns about the worth of your investments as well as whether you can sell them.
 

Selling Your Investments- We Offer Solutions

Our team at Pinnacle Investments buys performing notes nationwide. If you are looking to liquidate your note our team is here to help you. You can sell your real estate notes with confidence when you work with our team.
Are you unsure what your needs are? Contact Pinnacle Investments today to learn more about our services. We are here for all of your needs in Phoenix, AZ and Chandler, AZ.

Here are just a few reasons people have sold all or part of their seller financed mortgage notes for cash:
 

  • Retirement
  • Taxes
  • Investment Opportunity
  • Expensive Medical Care
  • Vacation
  • College Tuition
  • Unexpected Financial Changes
  • Peace of Mind – no more worrying if the buyer is going to make late payments or having to foreclose
  • Accounting headaches, IRS regulations, paperwork hassles and the list goes on…

 
The only way to decide what is best for your situation is to know the options available.

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