Market Visionary: Texas Note Guy Robert Young – Creating and Selling Owner Financed Notes
Some people just have a way of inspiring you . . .
If the Safe Mortgage Act isn’t preparing to destroy his business model as we speak, then Robert Young, owner of Texas Note Company, is the kind of visionary that will turn this market around, or at least keep the cogs greased until things get ironed out a bit (not personally holding my breath).
He started out learning the note business almost 3 years ago, now he’s got a thriving, growing system that takes care of him, because he takes care of everyone else… sellers, buyers, investors and agents.
I spent almost 45 minutes on the phone with him, and he’s putting deals together that are technically impossible if you ask the seasoned note buyers and brokers out there.
He has an investor that buys property cash or subject to existing financing, then Robert markets the property (he’s not a real estate agent) and gets a finder’s fee when he lands a buyer. When the note is seasoned for 3-4 months, he sells the note (and makes another fee) to a group of local investors who want to use self-directed retirement funds to invest in local paper.
These types of deals are not generally happening out there in the ‘real’ world. What makes it work is Robert’s reputation, his fairness (he’s not greedy), his creative juice, and his profound networking abilities in finding local investors that will do what nationally based companies usually can’t.
When I come across someone like Robert, I like to give him a nice SHOUT OUT!!!
Related Reading:
- Can I Sell My Note Right After I Create It? Reality Check on Simultaneous Closings
- Builders Move New Construction Homes Helping Buyers: Seller Financing Plus Simultaneous Note Sale
- Help Me Create a Note Worth Holding or Selling
we need people like Robert Young to run this country!
Dawn,
Why do you say that is he putting deals together that
are technically impossible ? Could you elaborate ?
Also, you said “These types of deals are not generally happening out there in the ‘real’ world.”
What do you mean by that ?
Great article. Looking to get some more details.
Thank you.
Fred Bartholomai
Hi Fred! I just found your comment in the depths of wordpress admin-land!
What Robert is doing is selling rehab/flipper paper for 85 cents on the dollar with only 3-4 months of seasoning. And the only way he can do this is by engaging local investors who know, understand and feel comfortable with the local market and the particular property securing the note.
Most investors want to see AT LEAST 12 months of seasoning before they’ll look at rehab/flipper paper (the kind created when an investor buys a short sale, REO or other distressed property with cash and sells quickly with owner financing). Additionally, the institutional buyers usually need a steeper discount, meaning they’ll pay less than 85 cents on the dollar.
That’s why we need to create community-based investment models around the country! They serve everyone much better: buyers, sellers, professionals and investors.
Thanks for the interest!
Dawn
With this economy getting a loan to get a house could be a risky investment. Rent to buy homes is a good solution.