About 30 days ago I paid $159 for Terry Vaughan’s Cashing In course. Every instinct in me said this is going to be a waste of money. You see with all my years’ experience and training in real estate and mortgage brokerage, dealing in mobile homes (trailers) was beneath me. Even if this Vaughan was doing deals, his claim of 75% yields had to be stretching the truth.
Well to my pleasant surprise, after reading the book it seemed reasonable. So I followed his instructions, made about twenty phone calls, and found a dealer with some notes to sell.
He faxed me the information I requested, which I in turn assembled into a spreadsheet and faxed to Terry. We then had a three-way call with the note holder and he was willing to accept 35 cents on the dollar.
This worked to be, not a 75% yield, but a 93% yield. In other words, we (Terry) had just negotiated the purchase of eleven notes with a balance of $81,693 for $28,242.
Within 24 hours, my client had signed a sales agreement and returned same by fax to Terry. About two weeks later, Terry was in my town (to close on 56 notes with another dealer), and we close on my deal as agreed upon.
We no sooner walked out the door and started driving away when Terry pulled over so I can sign a receipt for my $5,000 “finder’s fee.” That fee was 10% of the profit Terry had made by virtue of the fact that he had already sold the notes prior to closing.
Frankly, I am still awestruck. First, we closed a deal without the need of any attorneys (to figure out why this won’t work). Second, I was compensated at the slightly exorbitant rate of $1,000 an hour. Third, Terry Vaughan had just made more money on two deals and a few days work than 90% of us hot shot brokers make in a whole year.
“Paradigm shift” is an understatement. I’m still shaking my head in disbelief that these kind of deals are out there. Maybe I just stumbled across the proverbial needle in the haystack, but I don’t think so. You see, the day after tomorrow, I’m going to be picking up 94 mobile home notes. If this deal comes together, I’ll really have something to shout about.
Though these “Success Stories” are supposedly about us as participants, I see the true success of this story is about Terry and JP Vaughan. Yes, they’re making money, but they’ve gone the extra mile in sharing their success with others.
[Editor’s Note: Terry always gives his students two choices: (1) You find the deal, handle all the negotiations, due diligence, and all the other details. I’ll provide the purchase funds, and we will split the profit 50/50.
OR (2) If you do not yet feel comfortable handling all the details, I will do ALL the work and provide ALL the purchase funds, while you learn the ins and outs of the business by listening in on phone calls, reviewing the documents faxed back and forth, etc. In this case, I will pay you a finder’s fee of 10% of my net profit on the deal.
After the training he received through his first deal with Terry, now Lee feels ready to handle his second deal (94 notes) by himself for a 50/50 split of profits. I believe Lee’s half of the anticipated profit on that deal exceeds $50,000.]