Tim Herriage

Many times you can pay off your loan in eight years if they have a 30-year loan against it. So it's always been about cash flow. It's always been about wealth accumulation. But it's also branded, I don't like to work. And, you know, the name of your thing is wake up to wealth, right? And owner finance notes are one of the best income streams I've ever been exposed to.

Many times you can pay off your loan in eight years if they have a 30-year loan against it. So it's always been about cash flow. It's always been about wealth accumulation. But it's also branded, I don't like to work. And, you know, the name of your thing is wake up to wealth, right? And owner finance notes are one of the best income streams I've ever been exposed to.

Now, the problem is it's a declining income stream with a declining asset base. So what I mean is every month, their next monthly payment is more principal than interest. So the next month they owe you less than they did the month before, and they're paying you less interest than they did the month before. So every month your income goes down as well as your asset base.

Now, the problem is it's a declining income stream with a declining asset base. So what I mean is every month, their next monthly payment is more principal than interest. So the next month they owe you less than they did the month before, and they're paying you less interest than they did the month before. So every month your income goes down as well as your asset base.

So it was probably 12 years ago that I had another mentor of mine kind of teach me that. And since then, I've just made sure that 50% of what I do is rental property, which may not cash flow as much, but you get to keep the asset. And then I do a mix of owner finance so that I'm getting higher income. In order to offset, because we all have to pay bills and our home where we live some way.

So it was probably 12 years ago that I had another mentor of mine kind of teach me that. And since then, I've just made sure that 50% of what I do is rental property, which may not cash flow as much, but you get to keep the asset. And then I do a mix of owner finance so that I'm getting higher income. In order to offset, because we all have to pay bills and our home where we live some way.

So it's kind of a dual strategy that our friend Eddie Speed teaches a lot. It's you're flipping and making money over here and keeping rentals. But then you're also, you know, you have these owner finance mortgages that It's more steady too, Brandon, because you don't have maintenance on the house. You don't have vacancy on the house.

So it's kind of a dual strategy that our friend Eddie Speed teaches a lot. It's you're flipping and making money over here and keeping rentals. But then you're also, you know, you have these owner finance mortgages that It's more steady too, Brandon, because you don't have maintenance on the house. You don't have vacancy on the house.

And every five to eight years, you get a big check in the mail where they pay off the mortgage and you just go redeploy the capital.

And every five to eight years, you get a big check in the mail where they pay off the mortgage and you just go redeploy the capital.

and invest in both sides of it, right? Like if I'm a retail investor and I've got 50K, I probably want to put half into a fund where they're buying maybe multifamily or rental properties where I get upside of the asset growth. But I would also want to get into an owner finance fund where I could make sure that the income stream was consistent.

and invest in both sides of it, right? Like if I'm a retail investor and I've got 50K, I probably want to put half into a fund where they're buying maybe multifamily or rental properties where I get upside of the asset growth. But I would also want to get into an owner finance fund where I could make sure that the income stream was consistent.

And that's the way bankers and lenders think. And so when they see that Brandon's collecting $120,000 a year in revenue against a million dollars, it's really easy to say, well, then, yeah, he can have a million dollar line of credit at 8% because he only owes me $80,000 against that. So he's got the yield stream to pay me without... Like, he doesn't even have to do anything.

And that's the way bankers and lenders think. And so when they see that Brandon's collecting $120,000 a year in revenue against a million dollars, it's really easy to say, well, then, yeah, he can have a million dollar line of credit at 8% because he only owes me $80,000 against that. So he's got the yield stream to pay me without... Like, he doesn't even have to do anything.

Like, he just has to move the payments from here over to there. So, you know, some people call it hypothecating the notes. Some it's a pledge note. I like what you said, the line of credit against them, because then it's easier. Like, we're all lazy to some degree. Like, you're not doing note on note financing, right? It's easier to just, look, there's always going to be a million there.

Like, he just has to move the payments from here over to there. So, you know, some people call it hypothecating the notes. Some it's a pledge note. I like what you said, the line of credit against them, because then it's easier. Like, we're all lazy to some degree. Like, you're not doing note on note financing, right? It's easier to just, look, there's always going to be a million there.

Give me a million against it. And It's easier. But then also, like we talked about, there's other note strategies where once you create that 70 percent, 80 percent, 12 percent value, 12 percent interest note, there's a ton of people out there. institutions, banks, and IRA investors that would love to buy that note and make 12% mailbox money.

Give me a million against it. And It's easier. But then also, like we talked about, there's other note strategies where once you create that 70 percent, 80 percent, 12 percent value, 12 percent interest note, there's a ton of people out there. institutions, banks, and IRA investors that would love to buy that note and make 12% mailbox money.

Well, because you've already done the hard work. You've already found the house, fixed the house. sold the house, moved a family in. And typically, you know, you collect a couple payments to show that the borrower's real. And yeah, I mean, because then the investor, there's no theory in it, right? They're buying something that already exists from you.

Well, because you've already done the hard work. You've already found the house, fixed the house. sold the house, moved a family in. And typically, you know, you collect a couple payments to show that the borrower's real. And yeah, I mean, because then the investor, there's no theory in it, right? They're buying something that already exists from you.