R.E. paper for personal property

Real Estate Paper for Personal Property

Present Condition - As an exchangor you have $180,000 equity in a 16-unit apartment building that you have had for several years.

The building produces you a positive cash flow, and have you kept it in excellent condition and it appreciates at a good rate.

Present Position - You locate a yacht, which would appraise at $320.00, but the owner is in trouble and is willing to sell it for $190,000, which is approximately the same value as the equity in your apartment building.

You offer the yacht owner a real estate note using your apartment building as collateral and market interest rate.

The yacht owner would like to sell the boat, but needs most of the value in cash now and is not interested in holding paper.

Possible Resolution – You create a note for the $180,000 equity in your apartment building.

You have a friend who is a note broker who will purchase the note without seasoning and give you a
reasonable discount.

You now have an substantial amount of cash to offer the yacht owner, and to balance the equity's you also offer a lot that you own.

Benefits to You - You now own a beautiful yacht free & clear, which you can use for business purposes at a tremendous discount and you did not have to go the lengthy process a loan requires.

The interest rate you pay on the note you created is far less than a loan would be.

The interest you pay on the note is also tax deductible.

Benefits to Yacht Owner- He sold his yacht quickly receiving the cash he needed now, plus a free & clear lot.

Benefits to Investor- He lends his money at a good yield, with great collateral.

This is a creative Win – Win - Win

Questions, comments or suggestions on any of these articles, Send us an

or call Wayne H. Wagie 786-326-4747

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