Welcome to the amazing world of Discounted Notes. In this business you will need to learn two things.
First, you will learn about the miracle of the “Time Value of Money”. This knowledge will be essential to you throughout your investment career. If you invest in stocks, bonds, gold or discounted notes you simply must understand how to place a value on a series of cash flow payments.
For example, would you rather invest in an asset that costs $1,000 today and grows to $2,000 in five years or would you rather invest $1,000 today and receive $25 per month for the next five years? This is not an easy question, yet its answer is essential to making wise investment decisions. In fact, very few people can answer this question. The answer depends on what interest rate or yield you want to make on your money. Your $1000 will grow to $2000 in 60 months at 13.94% interest. The 60 payments of $25 would yield you 17.27%. If you can do these calculations you are indeed a sophisticated investor.
Second, you will learn how to use your knowledge of the Time Value of Money to begin a lucrative investment program or start a profitable business in the field of discounted notes, mortgages and contracts.
To demonstrate the power of the ideas this industry will teach you, consider Peter Miniut who bought the Island of Manhattan from Native Americans in 1626. Had the Native Americans put that $24 into a savings account paying 6% compound interest, they would have over $43,869,020,000 in the bank today. This is more than the combined value of all the real estate in Manhattan in 1993 (even using Donald Trump’s figures).
If you could earn 20% on your money by investing in notes secured by real estate, you would only have to put $312.58 away each month for 20 years to have $1,000,000.
Finally, consider that you could have $1,000,000 in 20 years if you just deposited $7,000 today in a note or mortgage earning 25% interest.
That is the power of the ideas that we will explore. As Jane Bryant Quinn, the financial writer for Newsweek Magazine has said, “The two most powerful forces in the world are gravity and compound interest.”
In short, through your study of the Time Value of Money you will see that the discounted note business is the business of the 90′s. It offers the note buyer and investor the advantages of:
- Working your own hours.
- A ground floor opportunity, because the business is still relatively new.
- Plenty of room for creativity and innovation.
- Use large corporate note buyers’ money, and earn a commission.
- Using a wide variety of skills and interests.
- Layout artistry
- Psychology in dealing with buyers, sellers and investors
- Entrepreneurial skills: creativity and self direction
- A very profitable business, with potential earnings of 25% to 50% on your money.
- A way to save for your retirement at a minimal or small cost of time and effort.
- This is the place to learn about the discounted mortgage industry. We are the professionals who buy cash flows from private individuals and then sell them to large institutions, private investors and pension funds.