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From Risk to Riches: Investor's 500% Return Sheds Light on the Path to Financial Success

January 16, 20243 min read

“...and that was what introduced me to what it's like to be the bank.” - Jerry Sanders

Unlocking Financial Success: A Deep Dive into Notes Investing with First Shield Financial

In the dynamic realm of real estate entrepreneurship, we were able to have an enlightening conversation with Jerry Sanders from First Shield Financial. Specializing in notes investing, Jerry shares valuable insights into his entrepreneurial journey and the lucrative opportunities within the world of non-performing and performing notes.

Understanding the Note Business:

Jerry, an entrepreneur with over 20 years of experience, takes us through his journey from corporate life to real estate. Having ventured into various entrepreneurial ventures, he found his way back to real estate, starting with student housing and later transitioning to fixing flips and building a portfolio of tangible assets. The turning point came when he started working with rent-to-owns, realizing the potential of being the bank and collecting money without the hassles of property management.

Introduction to Notes Investing:

Turning to notes investing, Jerry explains the concept of notes – financial instruments created when individuals buy homes, involving documents like mortgages and notes. Often unbeknownst to homeowners, these notes are eventually sold or transferred. Post-2008, notes became accessible to smaller investors, paving the way for opportunities beyond traditional banking institutions.

Non-Performing and Performing Notes:

Jerry sheds light on the distinction between non-performing and performing notes. Historically, notes were primarily available to larger investors, but the landscape shifted, allowing smaller investors like First Shield Financial to acquire notes from banks, hedge funds, trade desks, and other investors. They specialize in both non-performing and performing notes, providing a diverse range of investment opportunities.

Second Position Investing: A Closer Look:

The conversation takes an intriguing turn as they discuss second position investing. In this scenario, investors take on the role of the lender in the second position, providing insights into the legal dynamics and foreclosure possibilities. Jerry emphasizes the often underestimated power of second-position investing, where even in a foreclosure scenario, investors can initiate the process and potentially gain control of the property.

Three Outcomes of Note Investing:

Jerry outlines the three potential outcomes of note investing – timely payments, early payoff, or borrower default. Timely payments provide consistent, predictable income, while an early payoff results in a windfall, including the equity in the note. On the flip side, borrower default initiates the foreclosure process, presenting an opportunity for substantial returns, especially when due diligence is meticulous.

A Remarkable Success Story You Can Watch Here:

Jerry narrates a captivating success story where a borrower's failure to respond to various attempts at resolution led to a foreclosure that turned out to be a financial jackpot for the investor. The property's significant equity and strategic decision-making during the legal process resulted in an exceptional return on investment, showcasing the potential highs in the notes investing landscape.

Making Notes Investing Accessible:

For those interested in notes investing but seeking a hands-off approach, First Shield Financial offers a solution. Through a process called hypothecation, investors can partner with First Shield Financial, allowing them to identify and acquire notes on behalf of the investor. This hands-on approach ensures a steady monthly income for the investor without the burdens of active management.

Watch the full interviewyou will be left with a better understanding of notes investing and the opportunities it presents for financial growth. First Shield Financial emerges as a guiding force for investors, offering personalized solutions for those looking to explore the world of notes investing without the hands-on involvement.

Intrigued by the potential of mortgage notes investing?

Connect with us here at J.W. Crawford Management. Since 2015, our mission has been to make the real estate dream accessible to everyone through lending, education, and partnerships. Join our insiders list to see how we can help you grow your wealth hassle-free.

-J.W. Crawford Management is here to help you turn your real estate dreams into a reality.

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