Zachmeier - Who Needs the BANK?
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Who Needs the BANK?
Why you should BE a bank
instead of investing in one!
OR
How to earn 5 to 50 times more than banks pay by investing in loans to hard-working, self-employed business owners whom the banks turn down
Bob Zachmeier
Out of the Box Books
Tucson, Arizona
This publication contains the opinions, ideas, and personal experiences of its author. It is sold with the understanding that neither the author nor the publisher is engaged in rendering legal, tax, investment, insurance, financial, accounting, or other professional advice or services. If the reader requires such advice or services, a competent professional should be consulted. Relevant laws vary from state to state. The strategies outlined in this book may not be suitable for every individual, and are not guaranteed or warranted to produce any particular results. No warranty is made with respect to the accuracy or completeness of the information contained herein, and both the author and the publisher specifically disclaim any responsibility for any liability, loss, or risk, personal or otherwise, which is incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this book.
Copyright 2018 by Bob Zachmeier
All rights reserved, including the right of
reproduction in whole or in part in any form.
ISBN: 978-0-9801855-6-0
Library of Congress Control Number:
2018910695
For information on other books by Bob Zachmeier,
visit the publishers website at:
www.outoftheboxbooks.com
When it comes to books think Out of the Box!
Out of the Box Books
P.O. Box 64878, Tucson, AZ 85728
For Bill and BettyJo Zachmeier
I was blessed to have parents who wouldnt allow me to give up when problems arose. Dad taught me to take things apart to understand how they work and then find a way to fix them. Mom taught me to think out of the box to find creative alternatives that could accomplish the same task. Together, theyve enabled their confident and creative children to lead successful and happy lives by constantly challenging norms to find win-win-win solutions that make the world a better place.
"Creativity is not just for artists, it's for businesspeople looking for a new way to close a sale, for engineers trying to solve a problem, and for parents who want their children to see the world in more than one way.
- Twyla Tharp
ACKNOWLEDGEMENTS | ix |
INTRODUCTION | xi |
CHAPTER 1 Why Do People Need Loans? | |
CHAPTER 2 Why Wont Banks Make the Loans? | |
CHAPTER 3 Arent These People Deadbeats? | |
CHAPTER 4 What If They Dont Repay Me? | |
CHAPTER 5 What Documentation is Needed? | |
CHAPTER 6 Arent Banks Safe Investments? | |
CHAPTER 7 How Do Notes Compare to Banks? | |
CHAPTER 8 Should Baby Boomers Buy Notes? | |
CHAPTER 9 Are Notes Better Than Stocks? | |
CHAPTER 10 Are Notes Better Than Rentals? | |
CHAPTER 11 How Do I Compare Investments? | |
CHAPTER 12 Are Notes Better Investments? | |
CHAPTER 13 How Do I Qualify the Borrower? | |
CHAPTER 14 Will I Become a Bill Collector? | |
CHAPTER 15 How Do I Set the Interest Rate? | |
CHAPTER 16 What If Im Not Ready to Retire? | |
CHAPTER 17 What If I Need Income Now? | |
CHAPTER 18 What If I Need to Sell My Notes? | |
CHAPTER 19 What If I Die Before Im Repaid? | |
CHAPTER 20 Where Can I Find Notes to Fund? | |
CHAPTER 21 What Should I Look For In Notes? | |
CHAPTER 22 How Can I Get Started With Notes? | |
CHAPTER 23 Why Do I Need to Start Right Away? | |
CHAPTER 24 How Can I Learn More About Notes? | |
CHAPTER 25 Note Investing Success Story | |
How to Find Out More About Notes | |
About the Author |
Figures in This Book | ||
6-1 | Federal Reserve Home Price Index | |
7-1 | Loan Comparison | |
7-2 | Negative Interest Rates | |
9-1 | Market Cap to GDP | |
10-1 | Monthly Rental Property Expenses | |
11-1 | The Rule of 72 | |
12-1 | Loan to Value Over Time | |
14-1 | 7-Year Foreclosure Completion Rate | |
14-2 | Years to Save for a 10% Down Payment | |
16-1 | Median Seller Tenure | |
16-2 | Notes Accumulated | |
16-3 | Note Amortization Schedule | |
18-1 | Amortized Loan Balance | |
18-2 | Note Buyer Yield of 5% | |
18-3 | Note Buyer Yield of 7% | |
23-1 | Compound Interest on $100,000 | |
24-1 | Trailer Park Sale History |
ACKNOWLEDGEMENTS
I thank God for blessing me with the ability to attract amazing people into my life. Ive prevailed through many challenges due to the love and support of family and friends.
I thank my wife, Camille, who spent many evenings and weekends alone while Ive worked on my books and NoteCarry software. Her hard work and attention to detail has enabled us to close more than 4,000 home sales. Camille is smart, fun, and an awesome partner in business and life.
I thank my parents who taught me to see things as they could be rather than as they are. Their vision and optimism are alive and well in me today. Dad passed away in 1996, but Mom continues to impact my life. She used flashcards to help me pass 3 rd grade when I struggled with multiplication, was my business partner in a fireworks stand in 10 th grade, and has been the chief proofreader on all six of my books.
I thank my Scoutmaster, Val Heck, and all of the adult volunteers who donated hundreds of hours to help me earn the 36 merit badges required to become an Eagle Scout. My life is a collection of experiences made possible by generations of people whove given freely of their time, talents, and financial resources to benefit others. Their compassion for their fellow human beings sets an example for the rest of us to follow.
I thank my brother, Mike, for bringing a unique and valuable perspective to our real estate business for 10 years. He got straight As his entire life and always made me look bad, but his attention to detail has often come in handy! He also does an awesome job at catching mistakes in my books.
I thank Craig and Catherine Proctor for their real estate strategies that helped us close over 600 homes per year, more than average agents close in a lifetime! Many of the real estate agents theyve attracted have become our closest friends.
I thank Tom and Naomi Moon for REObroker.com, a network of caring people with a pay it forward attitude. Their support of my fundraising endeavors is truly appreciated.
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