The non-performing note (NPN) in real estate is the nucleus of real estate investing, and Become the Bank™ is the Road to Wealth.
Wealth: what is it? Why does everyone talk about its creation? Wealth is defined by one’s perception and what it means to them. As a real estate investor, wealth is built through transactions, short-term and long-term. Non-performing notes can provide short-term gains through flipping and wholesaling; long-term growth is accomplished through rentals, CFDs and multi-units. With any of these paths you need to Pull the Trigger™, and each requires understanding and education. Using non-performing notes as a strategy, there is opportunity for short-term gains and long-term wealth building.
Throughout history, land has always been the foundation of wealth. Every dominant society sought to enlarge its land holdings; for example, the Romans, Greeks, British, French, all at one point in their history had over two million square miles under their rule. In modern day, real estate is at the base of wealth; at least 25 percent of a person’s wealth is in real estate. In the beginning of lenders and borrowers, the Greeks and Romans used a pledge from the borrower to the seller, and the property remained in the owner’s possession until the debt was paid. If the debtor was not able to pay, the pledge was broken and cancelled. The British borrowed all the history from the Greeks and Romans with maritime loans. Americans adapted from the British lending practices, and in 1949, with the creation of the GI Bill, modern-day mortgages were enhanced.
I would like to call this the beginning of the NPN market. Notes have always been bought and sold throughout time; the buying of debt in the mortgage on single-family housing has had an uptick and a path for many real estate investors, which created an industry, thus allowing investors to “Become the Bank.” The road to wealth through NPNs is a strategy, and within this strategy are six strategies to implement to achieve your objectives. Stay tuned to additional Think Realty articles for more on these strategies.
As you can see, we did not invent the note. We, as investors, by “becoming the bank,” are taking control of our individual wealth by creating and building this wealth through non-performing notes.
Become the Bank™ is the road to wealth that accomplishes short-term and long-term goals and incorporates multiple disciplines in real estate as well as providing the real estate investor critical thinking skills in execution and implementation of strategies and management. As the investor, you become self-sufficient in creating other real estate models all the while building long-term wealth.
For more information, visit www.ptteltd.com.
(NOTE: The author is not a lawyer or accountant.)
About the author:
Ray Urrutia is the founder, President, and CEO of Pull the Trigger Enterprises and author of Pull the Trigger “Critical Thinking Skills for Real Estate Investors.” He has been in business for 40-plus years. Sales and marketing, technology, problem solving, and networking are his specialties. He has been in Real Estate for the last 20 years and started his own REI.