Armstrong Capital Newsletter
April 2009
Jeffrey R. Armstrong
President of Armstrong Capital
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Spring has arrived! The bass are moving to their spawning grounds and the fishing is getting better! TWITA! Even in our business with the arrival of spring comes people that need money to pay their income taxes and yet another reason a note holder may need to sell all or part of their note for some quick cash.
This month I want to address the single most common question, issue or concern that note brokers and note holders ask me about almost daily. Here is a sampling of the many different ways that it comes up:
- I don't have the payor's Social Security Number (SS#).
- I'm not allowed to have the buyer's SS#.
- The buyers won't give me their SS#.
- The Title Company, Escrow Company, Realtor, RE Attorney, etc won't give it to me.
- With all of the identity theft out there am I (the note holder) allowed to check the payor's credit?
- Are you (the note buyer/investor) allowed to look at their credit?
- Etc, etc., etc.
Now, I am not an attorney or accountant or representative from the credit bureaus but from my experience, knowledge, professional associations and personal inquiry's into the subject I can tell you that the Note Holder (seller of the note) and Note Buyer (investor) do have the right to check the buyers/payors credit under the Fair Credit Reporting Act. The Note Holder has the right to check their buyer/payors credit pursuant to the Fair Credit Reporting Act, Section 604 3a. The Investor has the right to check the buyer/payors credit pursuant to the Fair Credit Reporting Act, Section 604 3e.
When pricing options are given to a note broker they are given based upon the best case scenario. Meaning that the investor is assuming that the credit of the buyer/payor is decent and acceptable; that the property will appraise for at least what it was sold for; and that the title to the property is clean and clear.
Once a Note Holder accepts a pricing option he/she must be ready, willing and able to provide to the Investor the buyer/payors SS# (among other things) to pull credit and firm up the price. This is non-negotiable, especially in today's note market. In the past there was a way to get the buyer/payors credit with just a complete name, current address and previous address but not any longer.
Should the Note Holder be unwilling or unable to provide the SS# some investors will simply pass on the transaction while other investors may give you a price based on "no credit" which usually drastically reduces the purchase price of the note.
I will also tell you that I personally have never checked a buyer/payors credit, I leave that to the investor that is going to buy the note. Now that you are armed with this information go out and make it a great month!
Keep on marketing, it’s going to work! TWITA! J
Jeff Armstrong
Jeff's Speaking and Instructing Schedule
Location Date Event (click for info)
Glendale, AZ April 6-10, 2009 Nouveau Riche
Agoura Hills, CA June TBD, 2009 Secrets of Paper
Glendale, AZ July 13-17, 2009 Nouveau Riche
Glendale, AZ October 5-9, 2009 Nouveau Riche
Contact Jeff today for information about having him Speak or Teach to your group!
Note Business "Rainbow Package"
All newly redesigned and completely updated for 2008 the total "Rainbow Package" of Jeff's books including Scripts and Tips (with new industry documents disc), Every Single Profitable Note Marketing Idea In The World (almost) (with Note Holders Handbook on disc), Personal Cash Flow Prosperity (with 2 audio CD's), the Note Holders Handbook and the Glossary of Real Estate Note Terms. Purchased separately you would pay $216.22. But today you can get all 5 of Jeff's cash flow books for only $175.00!
So, you think you want to be in the note business? Then you need to learn the reality of the business step by step in the Secrets of Paper 101 - Audio Disc Set - A complete recording of the live SOP 101 beginner's workshop with workbook plus + click here for more info
Only $99 if you order it through this email (regularly $149)!
Jeff Armstrong is President of Armstrong Capital and was the Editor of the NoteWorthy Newsletter from 2006-2008. He is a member of the Million-Dollar Club, a Master Broker/Buyer, visiting instructor for the American Cash Flow Institute, Instructor for Nouveau Riche and the author of several best selling industry books. He can be reached by calling 800-845-3055, faxing 818-865-2323, e-mail jeff@armstrongcapital.com, or visit www.armstrongcapital.com and click on "Note Brokers" for answers, articles and information about his Master Broker services and how Armstrong Capital can help you succeed.
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