The Investor's Guide to Discount Cash Flow Streams

The Investor’s Guide to Discount Cash Flow Streams
Including Discounted Notes &Mortgages
Presented by Dyches Boddiford
Presented by Dyches Boddiford

Complete Manual with Forms Included

This class is about buying & holding discount paper for your own portfolio. This is not a note brokerage course. Brokerage of paper will only be covered in passing.

NOTE: To get the most from class, students should bring a financial calculator and know how to use it. Upon registering, contact Dyches at to receive a Quick-Start Guide for the HP-12C (preferred), HP-10B, and TI Business Analyst.

Just a sample of what you will learn:

  • “Time Value” of money and why it is important
  • What is a discount note
  • How to figure yields
  • Handling default paper
  • Finding discount paper to purchase
  • Analyzing a deal
  • Evaluating collateral and borrowers
  • What to look for & what to stay away from
  • Proper paperwork for purchasing
  • Helping property sellers structure notes you can purchase after the sale
  • Income tax considerations
  • Obtaining good yields on payments YOU are making
  • Profiting from discount cash flows other than notes and mortgages
  • Loan money using the note as collateral when the note holder does not want to sell
  • Always get paid for handling a problem
  • When you can’t find discount notes, create them
  • Buying partials can increase your yields
  • Using discount notes to buy property
  • Dealing with bankruptcy
  • Tracking payments manually and electronically
  • End of year reporting - 1098s, 1099s, 1096s
  • Modifying terms for better yields
  • The difference between loan-to-value & investment-to-value
  • Offer full price and make an even higher yield
  • Taking on investors and partners
  • Enticing borrowers to payoff early for huge returns
  • Difference between a standard annuity and an annuity due (no, we are not talking about insurance!)
  • What is a mortgagee title policy and what does it protect
  • Purchasing a note on an installment sale basis
  • Using your IRA to purchase discount notes
  • and much more!
This intensive two (2) day course is packed with information on buying and holding discount notes and mortgages as well as dealing with other cash flows such as leases, etc. After these two days, you will understand the magic behind discounting any kind of cash flow stream, whether you are receiving it or PAYING it. That understanding can make you a lot of money.

If you are a serious investor, you need the information we will cover at this seminar!

So, how does this course differ from other discount note seminars? Well, first we will be discussing buying and HOLDING discount notes and mortgages. Almost all other classes out there today are teaching the brokerage of notes -- in other words, acting as an intermediary in selling to a third party.

So, what’s so bad about that? The promoters say YOU CAN make big bucks brokering notes! Some even promise they will buy the notes you find. (I would like to hear from anyone who has taken such a class and actually been able to sell a note to one of these promoters. Hello, hello -- anybody out there?)

Well, let’s have a reality check.

  • Good discount notes are not easily found. Why would you give up a good note for such a small fee or spread?
  • Buying and selling notes is a dealer activity. As a sole proprietor, that means the income is subject to selfemployment taxes which is another 15.3% tax in addition to your regular income tax!
  • Most states, including Georgia, now require licensing of note brokers (usually defined as someone who buys and sells more than a couple of notes per year). Bonds or audited financial statements are usually required along with a substantial licensing fee. And your records are subject to surprise inspections by the state licensing authority.
  • To make significant money on the spread, you must find a buyer that does not demand a high yield. This usually means taking the note to an institutional buyer or other money pool. The downside is that these buyers require a laundry list of paperwork and documentation, some of which the seller may not have. Add to that the requirement for credit information on the borrower, appraisal of the collateral, and it can take forever to get closed. The hassle will make you wonder if it is worth it.
I haven’t even touched on the fact that once you have sold a note, you have given up all the potential future profits.

Do I suggest you go into discount notes and mortgages full time -- make it you only source of income? NO. Here is what a thorough knowledge of the subject can do for you:

  • If you are at a stage in your portfolio where you want steady income with a good yield on your investment, you may want discount notes as a significant portion of your portfolio.
  • If you are a real estate investor, you will learn how to be more creative in deal making.
  • You can buy houses with good existing financing through defaulted paper.
  • Discount paper can provide a really good return for your self-directed IRA.
  • If you are a mortgage broker for new loans, you can learn how to help potential clients who hold paper or the payors on seller carry-back financing AND make more money for yourself at the same time!
  • If you are a discount note broker, you will learn which notes you should sell and which you should definitely keep.
  • And, if you have very little money of your own, we will discuss how investors and partners can help you accomplish your goal while you help them.
To get the most from this course, you will need to bring a financial calculator to class AND KNOW HOW TO USE IT! The Hewlett-Packard 12C (HP-12C) is the choice of serious, long-term investors. As a matter of fact, the HP-12C is used in many of the examples in the class manual showing calculator shortcuts. Some less expensive alternatives are the HP-10B or the Texas Instruments Business Analyst.

To help you learn to use the financial calculator, I have written a Quick-Start Guide that covers all three of these most common financial calculators, the HP-12C, HP-10B, and the TI Business Analyst. I will email the Quick-Start Guide to the Financial Calculator FREE to you after you register. (Just send a email saying you have already registered to Using the Guide, you can become knowledgeable in the use of your financial calculator in a very short time.

Name Sales End Price
Non-Member Multiple Registration   Ended $582
Non-Member Single Registration Ended $632
Member Single Registration   Ended $514
Member Multiple Registration   Ended $464

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