Note Business Tip of the Month 

August 2009

 

For all new subscribers, Welcome! If you have missed any of Armstrong Capital's E-letters just click here to read our Archived Monthly Email Newsletters!

This year we have added a Question of the month to this regularly scheduled "Tip of The Month" e-letter. If you have a question you would like to see answered in this newsletter just email Jeff!

 

*Tip of the Month: 

       Did you know....

           Building solid relationships with note investors, funding sources and Master Buyers is essential to your success as a note broker.  They are the life blood of your note business, be sure to take care of those relationships and they will take care of you.

         

*Quote of the Month:

         If you'll not settle for anything less than your best, you will be amazed at what you can accomplish in your lives.

                                - Vince Lombardi

 

*Question of the Month:

 

Q -   Good Day Jeff... one quick question, I heard a gentlemen during a taped session at one of the recent conventions. He mentioned that if you do not have a minimum of $1,500 a month allocated to do letters and postcards then getting any traction to start this business is going to be very difficult.  If this is the case, many newbies including myself will never be able start the business. I was allocating $300-$400 a month. Your thoughts? Thanks in advance. 
                                            - Frank M.

 

A - Hello, I'm out of town (working) so I'm going to answer this quickly. I know that gentleman and he was buying notes before I could even drive. His comments elude to the fact that direct mail IS a BIG numbers game, which should be no surprise to you. I say it all the time. With $300-$400 per month dedicated to direct mail you are going to have to be patient to get that first transaction under your belt. With $1500 or more per month you will see results more rapidly. I'm not sure it is MORE difficult but it will definitely take you longer to see any results (ie closed transactions) compared to a larger marketing budget.  Also, know that when I started in 1991 I had an initial budget of $250 per month, then raised it to $500 and up from there as transactions started to close. Just realize that this is a real business and it is going to take time, effort and yes, money for marketing to get it going and be successful. Hope this helps! TWITA! 

 

Jeff
 

*New! Calculator Problem of the Month:

At the request of many of the subscribers to my monthly email newsletters and tips we will now have a calculator problem every single month for you to solve, using the simplest calculator for the note business the HP 10BII. We will start with a basic calculation, verifying the payment amount on a fully amortized note:

 

Note terms - $74,000 note, amortized for 30 years at 6.5% interest, fully amortized, no balloon. Verify the payment amount:

 

1) Enter in what you know

 

    N   = 360

    I/YR = 6.5

    PV  = -74,000 (don't forget the negative!)

    PMT = _?_

    FV  =  0 (fully amortized)

 

        N    I/YR    PV      PMT    FV

     360   6.5   -74,000     ?      0

                   

2) Push the PMT button to solve for the payment amount

 

    You should have gotten...    467.73

 

Did you get it? The payment amount for this note is $467.73 per month. Great job! More to come next month!

 

*Highlight of the Month:

 

For the FIRST TIME EVER I am bringing my sought after 3-day live Secrets of Paper workshop to the East Coast!  We will be holding it the weekend of September 18-20, 2009 in Atlanta, GA!  You asked for it, now it is happening! For those of you who have been asking me to come to the East Coast now is your chance to step up and attend.  As always we are going to limit the size of the workshop so sign up early because this one will fill up fast.  For more info and to register just go to Secrets of Paper! See you there! TWITA!

   

Jeff's Speaking and Instructing Schedule

         Location                Date                          Event  (click for info & registration)       

Contact Jeff today for information about having him Speak or Teach to your group!

Jeff Armstrong is President of Armstrong Capital. He is a member of the Million-Dollar Club, a Master Broker, 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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