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Years ago, while still in college, Barney Zick began helping people maximize the return on their investments, and he's still doing the same thing today.
Barney first began investment seminars while he was working toward his Business Administration degree at the University of Missouri. After receiving his M.B.A. from Northweste-'1:iQ._ University he was a portfolio manager for Stein, Roe, Farnham in Chicago and New York. While on Wall Street, he gained invaluable experience working with securities, oil, real estate and various tax shelters.
Bernard Hale Zick, CCIM, CE, ACE
He used that experience to establish his own business in Kansas City, to both manage his own investment portfolio and to counsel other investors in their programs. Today he is owner of Zick Investment Properties and Chairman of the Board of Real Estate Investor's Training, Inc. (REIT).
Barney's two-day "Creative Formulas" real estate course is generally recognized as one of the most extensive courses available today. The "Impatient Investor" one-day seminar has been attended by thousands of investors since its inception in 1984. In addition, Barney is author of five major home study courses: The Impatient Investor Series that includes "How to Make Your ReaiEstate FORTUNE", "The Midas Touch", and "How to Buy Right" and The Financial Masters Series of "How to Become a Paper Millionair"e:-"How to Win with Equity Sharing".
His set of Partnership and Shared Appreciation Agreements is considered the definitive work of its kind. Barney is publisher editor of the monthly newsletter, "Real Estate Financing & Mortgage Report", which has a large and dedicated readership. You will find Barney among the prestigious panels and roundtables presented coast to coast. He continues to be a participating lecturer at conventions and workshops for Mark Haroldsen, Al Lowry, Dave Glubetich, Robert Allen and A.D. Kessler of Creative Real Estate Magazine. As the primary speaker for REIT, he conducts numerous one and two-day seminars nationwide each year.
Besides his group courses and speaking engagements, Barney works with individuals, syndicates and brokers on an individual basis both as a consultant and as a co-investor. His specialties include tax-deferred exchanges and the application of creative financing tool3 in purchasing income properties. Barney is a CCIM (Certified Commercial/Investment Realtor), Recipient of the ACE Award from the Academy of Real Estate, a Certified Business Consultant, and is a member of the International Exchangors Association and the National Speaker's Association.
A real estate promissory note is a written agreement where a borrower promises to repay a specific sum of money to a lender, typically secured by a mortgage or deed of trust on a property. It outlines the terms of the loan, including the interest rate, payment schedule, and maturity date. Notes are important because they represent the financial obligation in a real estate transaction, dictating the terms of repayment and the lender's recourse in case of default. Understanding notes is crucial for both buyers and sellers, as it affects cash flow, yields, and potential investment strategies.
Discounting a note means selling it for less than its face value to receive immediate cash. The discount rate is influenced by several factors, including: • Cost of Money: Your personal cost of money (the return you require on your investments) affects how much you're willing to pay for a future stream of payments. • Risk Assessment: The perceived risk associated with the note (e.g., the creditworthiness of the borrower, the value of the underlying property) influences the discount. • Note Terms: Factors like the interest rate, payment schedule, and remaining term of the note impact its present value. • Market Conditions: Prevailing interest rates and the overall demand for notes in the marketplace also play a role.
To avoid large discounts, consider these strategies: • Offer pre-payment discounts: Give incentives for the borrower to pay off the note early, which makes it more valuable. • Sell the payments: Instead of selling the entire note, sell only a portion of the payment stream to meet immediate cash needs. • Cash with assignment of interest: Sell a percentage interest in the note, assigning enough payments to cover the buyer's investment. • Structure the note creatively: Consider "split notes" or other creative financing arrangements that increase the note's attractiveness to potential buyers. • Trade the note: You may be able to find someone who will value the note closer to its face value in exchange for real property.