Wayne Palmer on Creative Financing

One of the most creative investors I have ever met, Wayne Palmer explains a bit about some of the deals he is working on. He will be Robert's special guest at our two-day book study in April 2007.

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Tags:

• Rich
• Dad
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• Robert
• Kiyosaki
• National
• Note
• Wayne
• Palmer
• Cashflow
• Real
• Estate
• Financing

[eelhwan]

I agree with peggerguy. $825K times 11% equals $90,750 per year in Net Operating Income (NOI). Less debt service to the 6% lender which is $49,500 leaves net cash flow to the owner of $41,250. That doesn't seem like making money from nothing, that is making money using OPM on a legitimate investment. Very cool!

[hammer7629]

andviv, what does 5% of the purchase price have to do with the example and information he presents. Refer to the 9 minute mark of the video.

*IF* you have to borrow the downpayment AND borrow the balance, you will not make squat. For some reason, people think they can make money from nothing and it doesn't work that way in the real world. Maybe in $3,000 "investment seminars", but not where it counts.

[amirdjhiri]

The net [excess] 5% ROI that the deal could be structured to kick off should be calculated off the borrowed equity layer. The payments on the 1st tier mortgage ($825-$206) have already been factored out of the NNN Cash Flow calcs. Equity holders get, 11% in-aggregate, of which, 6% goes back to the seller (equity lender) and 5% goes to the deal promoter. $206k * 5% = $10k per annum and $858 per month - infinite returns for the one who put the pieces together. Great case study!

[workwithbillygee]

@hammer7629 Ive invested in Wayne Palmer's National Note of Utah for years. Absolutely the best thing that Ive ever done with my money....and by the way, the seminar I went to was free...idiot

[workwithbillygee]

Funny how all of you critics profess to know more than either of these guys. What a joke...Ive been investing in Wayne Palmers National Note of Utah, and Ive recieved 12% return on my investment every month, every year, through thick and thin. Most of you pontificate and play armchair QB while guys like this make wealth for themselves and those around them...you idiots.

[SomethingSoOriginal]

MATHS FAIL LOL.

[heightboosting]

haha, the cashflow is not 40,000 per year... are they talking about equity ?? well you dont see that equity of 40.000 before the loan is paid off in full... cashflow and equity are two different things

[koolbreeez]

Does anyone know how Robert came up with netting $40K per year? Even if they borrowed the $206K at 6% like he suggest making it a NO DOWN deal, that leaves you with 5% ROI. 5% nets you $836 per month (5% / 11% or (.45 x $1840) or $10,036 per year. The numbers aren't adding up??

[chuck2205]

No, I'm afraid your math is really off. Your numbers calculate to 0.89%. But 1840 is per month, so annual cash flow is 22080. So, 22080 / 206250 = 10.7% ~ 11%.

[tnmason]

They invested $206,000, not $825,000.

1840/206000 = 8.9% cash on cash return.

[flagship21]

that's why you will never get rich.