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Hello! J I hope you are having a wonderful spring! I just returned from Cash Flow 2007 in Dallas , Texas a few days ago. It was a great convention with lots of information being given out and non-stop networking going on. I enjoyed seeing those of you that were able to make it this year and hope to see you again next year . For those of you that were unable to attend I hope you will make it to San Francisco next year at the newly named Growing Wealth 2008 convention. It promises to be bigger and better than ever. I will definitely be there.

Last month we discussed a few details about what the funding source does when they receive your private mortgage note worksheet and what their prices mean when they are written on your worksheet. So at this point in the flow of a private mortgage note transaction you have obtained your offers from the funding sources and you are now ready to subtract your flat fee.

Subtracting Your Fee

After you have obtained your offers from your favorite Master Consultant and a few funding sources it is your job to subtract your fee before you present it to the note holder.

There are several ways that you might want to do this. Some consultants and brokers multiply a certain percentage by the prices given to them, for example, 5%, 6% 10%, etc. That is fine, it is your choice. Others choose to take a flat fee for any deal they do, for example, $1,500, $2,500, $3,000, $5,000, etc. Again, that also is totally up to you.

Still others choose to find out the true underlying need or want from the note holder and tailor their fees to fit into each situation. An approach where the number you give to the note holder looks good to you and you make a fair fee. Sometimes it’s $500, other times it might be $3,000 and other’s it might be even more. But whatever the number is that you are giving to the note holder, it looks good to you. This is the approach that I take.

It all goes back to getting all of the information on the worksheet and getting the story behind the note along with the story of why they contacted you in the first place. Was it because they had a need or want or was it because they were just curious. If they have a need or want I will give them no more than 3 different options with a range of prices for them to choose from. In doing so I am hoping to hit the number that they are looking for. For example if I give a note holder an option to buy the next 60 payments for $15,000 they might come back and ask me how many payments I could buy to give them $20,000. Then you can have the funding source calculate that out for you.

I hope this helps you with that question of how much you should take on a transaction. You should take whatever you can negotiate, what looks good to you and what you feel is fair. However you decide to subtract your fee make sure you present it in the most positive light possible. Next month we will talk about some of the positive ways to present your offers to the seller.

Jeff is the Editor of the Noteworthy Newsletter, a printed monthly publication. If you are new or experienced in the Cash Flow Industry I encourage you to check out and subscribe to the Noteworthy Newsletter, an indispensable newsletter for Note Brokers, Note Buyers and Real Estate Investors. Just click here and then click on "Newsletters" at the top of the page. This month you can subscribe for only $55 per year!

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For more great strategies, don't forget to check out Jeff's informative cash flow books for Scripts, Tips, Marketing ideas and more!

Purchase the "Consultant Combo" which includes "Scripts and Tips", "Every Single Profitable Note Marketing Idea In The World (almost)" and Jeff's newest release "Personal Cash Flow Prosperity"! That's all 3 cash flow books today for only $135.00!


Personal Cash Flow Prosperity With Tail Ends: How to Keep a Piece of the action	Every Single Profitable Note Marketing Idea In The World* (Almost)	Scripts & Tips: A Handbook for the Serious Note Broker

Jeff Armstrong is the Editor of the NoteWorthy Newsletter, www.noteworthyusa.com and President of Armstrong Capital. He is a member of the Million-Dollar Club, a Master Broker, visiting instructor for the American Cash Flow Institute, and the author of three best selling 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 questions and information about his Master Broker services, Mentorship program how Armstrong Capital can help you succeed.