Our Business Model

Our multi-pronged approach – online and direct marketing to homeowners, targeted TV commercials, and established relationships with local investors – allows us to identify undervalued properties ripe for investment. On average, our buy price and remodeled are all-in at around 50%-60% LTV.

Our Business Model

At Performing Notes, we help investors like you uncover predictable passive income opportunities.

We specialize in seller financing to “penalty box buyers”, these are buyers who maybe can’t qualify for a traditional bank loan for several reasons. They are self-employed, they are new to the country, and don’t have their papers yet. They went through a divorce recently and it hurt their credit. Etc. Just because a bank wouldn’t lend to them doesn’t mean they are not good buyers.

BUY PRICE

$50,000

FIRST POSITION MORTGAGE

We borrow $75,000 from one of our private investors and put them in first position to cover the purchase and renovation costs.We pay back the $75,000 over a 15-year term at 8% interest.

Investor Loan Terms:

Loan amount: $75,000

Interest rate: 8%

Term: 15 years

Monthly payment: $716.74

REMODEL BUDGET

$25,000

FIRST POSITION MORTGAGE

We borrow $75,000 from one of our private investors and put them in first position to cover the purchase and renovation costs.We pay back the $75,000 over a 15-year term at 8% interest.

Investor Loan Terms:

Loan amount: $75,000

Interest rate: 8%

Term: 15 years

Monthly payment: $716.74

FIXED UP VALUE

$150,000

Our End Buyer (the penalty box buyer)

Minimum down payment: ($15,000)

Second Position Loan: $135,000

Interest rate: 10%

Monthly Payment: $1,184.72

Term: 30 years

WRAP AROUND MORTGAGE

OUR INVESTOR IN FIRST POSITION

WE PAY OUR INVESTOR $716.64 MONTHLY

FOR 15 YEARS

OUR CASH FLOW MONTHLY IS $467.98

END BUYER PAYS US $1184.72 MONTHLY

FOR 30 YEARS

OUR END BUYERS

HOW DO WE MAKE MONEY?

DOWN PAYMENT ADVANTAGE

In a typical scenario, we secure a 10% down payment from our end buyer. This capital fuels our marketing efforts to find more deals and pay the commissions to our sales team.

PASSIVE MONTHLY CASH FLOW

As you can see in the example above, we would be netting $467.98/month. On average, we cashflow around $400 per seller-financed deal we do.

EARLY PAYOFF

We pay our investors back on a 15 year term and receive payments on a 30 year term, at anytime the end buyer pays the loan off early we get paid a third the difference between what is owed to us and what we owe our investor.

Our Goal

We’re thrilled because we have the systems in place to find deeply discounted homes, fix them up, Find end buyers, and earn passive income alongside our investors