Description
This classic book by real estate expert Tyler G. Hicks explores a seldom-discussed area of wealth-getting: second mortgages.
There is a branch of real estate in which you can get rich without capital, without a license, and without a large investment of any kind. “And what is this branch?” you ask. This branch of real estate in which you can get rich quickly and without any investment of your own, of any type, is SECOND MORTGAGE. When you build your fortune in this branch of real estate, you act as a finder of second-mortgage money for people needing these funds. Your income comes from the commissions you earn for finding this money.
A second mortgage is a loan which a property owner obtains to
- Buy a property when the buyer does not have the cash necessary to put down on the property.
- Make up the cash needed between the amount the buyer can put down and the amount of cash the seller wants (thus, if a buyer has $5,000 and the seller wants $25,000 down, a second mortgage of $20,000 would make up the difference in cash needed to take over the property).
- Provide funds for improving the property after the buyer has taken it over (thus, a buyer might want to have a property painted, etc. after taking it over so that the rents can be raised).
- Provide money for the owner to buy another property when there is enough ownership in the property to permit another loan on it.
The inimitable Mr. Hicks explains
- how a second mortgage finder works,
- how to naming the business,
- the process of registering the firm,
- running ads,
- expanding the business,
- limited partnerships,
- and just about every aspect of this unique and profitable wealth-building business!
Let’s take a closer look at this business to see how you might use it to build your fortune. I’m sure that you will find the business both interesting and challenging.
HOW THE SECOND-MORTGAGE FINDER WORKS
The second-mortgage finder takes a number of steps which enable him or her to find money for property owners or people who want to buy property. These steps are:
1. Advertises the availability of second-mortgage loan money
2. Seeks and finds investors with money for second-mortgage loans
3. Brings borrowers and investors together to make a deal
4. Collects money from borrowers and pays the lenders (investors) the money which is owed to them; this is done on a monthly basis
5. Performs other necessary work to encourage more loans and find more investors
For the work described above, the usual fee which the second-mortgage finder is paid by the borrower ranges from 8% to 15% of the amount of the loan which the finder arranges. The investor usually receives an interest rate of 10% or more of the amount of money loaned. However, this interest rate can be higher if the loan is paid off early, which it often is. Or, if the property is sold before the loan is paid off, the interest rate can also be higher.
In a recent year, in just one state – California – some $500 million in second mortgage loans were made. And the number of loans being made in California, and in many other states, for second mortgages continues to grow each year. Why don’t you get in on this continued growth and make a fortune for yourself?
WHAT THE SECOND-MORTGAGE MONEY FINDER CAN EARN
You can really earn an excellent living acting as a second-mortgage money finder. Let’s take two examples to show you the kinds of earnings you can expect as a finder in this great business. What we’ve done is to show a tabulation below which lists the amount of money you might find each year and your earnings on two fee schedules – 8% and 15%. Note that as your money-finding activities increase, so too do your earnings!
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