Hi, my name is Earl, and welcome to Earl’s Library.
Today I am going to talk a little bit about the book “Power of Paper: How to Create Wealth by Investing in Mortgages” by Troy Fullwood.
This book is for anyone who is currently investing in mortgages or who is considering investing in them in the future.
Troy Fullwood is THE subject matter expert when it comes to investing in mortgages. He has over 25 years of experience in the industry and his investment company Pinnacle Investments has grown to be the nation’s leader in the purchase of first-lien performing and non-performing real estate notes, completing over 15,000 transactions since its inception.
Read this book to learn how to invest in mortgages!
Inside the “Power of Paper” you will find the history and evolution of the mortgage investment industry. When you read it, you will learn the key points needed to be successful when you invest in notes. And you’ll learn the pitfalls to avoid. You will take years off your learning curve by reading this book.
In chapter 2, you will learn how to find notes to invest in, such as craigslist, nationwide investor clubs, and local realtors who represent sellers selling their properties with owner financing. In chapter 3, Troy teaches you the importance of doing your due diligence and shares the key aspects of doing so. For example, Troy teaches the importance of doing credit checks and home inspections.
Through out the book, Troy talks about the importance of creating a better product, and in chapters 4 and 5 he goes into detail about using servicing companies toward that end. He points out how paying the nominal cost for a servicing company pays big when it comes time to sell your notes. One such servicing company he recommends is Note Servicing Center.
Chapter 6 talks about “Yields and Returns on Capital”. In this chapter Troy teaches us that you don’t always have to go after really the big yield deals, like 16%, when buying your notes, especially when you have access to zero cost of capital. He also talks about dealing in Partial Notes.
“My advice to people is that they get 10% down, they do 10, 20, 30- year terms with a 7% to 9% interest rate, no prepayment penalties, no balloons and ideally a 575 or greater credit score” -Troy Fullwood
Chapter 7 talks about Passive Investors. He shares that mortgage notes come in all sizes, from $10,000 to many millions of dollars. It was very interesting to learn that Troy’s company had the opportunity to buy the loan on Michael Jackson’s Never, Never Land Ranch. That was one of the larger notes. It was offered at $32,000,000. Troy goes on to guide you on sources of capital for note purchases such as 401Ks, IRAs.
Another important topic, the Time Value of Money is covered in chapter 8. In this chapter, you learn the key distinctions that help you decide if your situation is better served by holding onto a note for the monthly cash flow or selling it at a discount for a lump sum.
You will learn the different types of property titles and how they affect mortgage investments in chapter 9, and in chapter 10 you’ll learn the difference between wholesaling vs investing in performing notes. Once you understand the differences, you will learn when you might choose to use one scenario instead of the other.
Throughout Power of Paper, you’ll find the tips and strategies that Troy learned from decades of mortgage investing experience. He has distilled his learnings into 10 easy to understand and apply chapters that will set you up for success in your mortgage investing career.
If you are currently investing in mortgage notes, or are considering it, and you haven’t read Troy’s book, click on this link “Power of Paper on Amazon.com“, and get your copy today.
Don’t buy a mortgage note until you’ve read the book!
Until next time, have a Superfantastic day!
-Earl
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