Did you know...

Three important components of a successful note business career are:

1) Knowing what to do

2) Knowing what to say

3) Your commitment level

You can be taught the first two.

Upcoming Events

President's Corner

       When the phone rings, are you annoyed at the interruption? The way you answer the phone sets the stage for the note holders' experience with you. I have to admit when I started in the note business in 1991 I really didn't like the telephone. Even if it is someone I really want to talk to, it sometimes felt like a chore "to be nice"! With the amount of spam phone calls I still seem to receive, even after being on the "Do not call list", I must admit I make assumptions when I pick up the phone. If there is a nano-second of a pause when I pick up the phone, I immediately assume I am on someone's computer list just waiting to pounce if they here a real person on the other end of the phone.

       However, when I am initiating the call I really "want" another human on the other end of the line. I don't want to be put in "voice mail jail" and being warned that the phone calls are taken in the order they are received and if I hang up and call back I may be waiting until doomsday to get to someone. No matter which type of phone caller you happen to be, this communication tool, no matter how big or small is here to stay. It is important to know how to use it efficiently and effectively. With so much cell phone usage, right or wrong, it is important to address and put into practice, correct phone techniques.

       I challenge you to think that every time their phone rings, it is your paycheck calling. I also challenge you to look at your phone with as much respect and interest as they look at the note transactions you are involved in; it is a reflection of your note business. When you think about your phone calls that way, you are more apt to answer the phone with a little more expectation in your voice rather than disgust. If you train yourself in this way, you will start looking at your phone as a sales building tool. Remember, Success Demands Action! Keep on marketing, it’s going to work! TWITA!

Question of the Week

Q - Hi Jeff,

          First off, let me say thanks for the check and allowing me a larger commission than I was due. As I look at the deal, I tried to use the 1.5% of the balance of the loan as a benchmark for covering costs (Secrets of Paper 101). Is this still a good rule or should this number be higher? What about deals where a seller would like to use a title company or attorney for the closing? How much would one factor in for this? Any thoughts would be appreciated. Second, is a question about trying to do the note business full time. I pretty much started the end of March/early April. For that April I tracked a 1.36% response rate and in May 1.16%. In June, I tracked my best direct mail combination at 2.83% response. These response rates in general seem low. From a deal perspective I have your deal funded, one that is in the title stage, and a partial that I have a verbal commitment on and I am waiting to get the seller under contract. In addition, I have lost one deal today in fact (credit issues caused the investor to lower the offer and the seller rejected) and I have one deal where the seller is considering. At best that is 4 deals. I guess as I continue to try and move forward, I am concerned that in order to really do this full time I need to send more letters a month than I can realistically budget for. Given the choice between increasing the number of letters sent versus sending smaller amounts of letters and working on increasing my response rates I'm not sure which way to go. Any thoughts on what to focus on in order to increase the likelihood of doing this full time. As it stands, your check is my first, I was hoping given the amount of letters that a couple more would have funded by now. Any thoughts would be appreciated.

                                                      ~ Ed

A - Hi Ed!

          Thanks for the email! I will attempt to address all of your questions and concerns. On the transaction we just closed the costs were above normal. Usually the 1.5% guess-timate more than covers the expenses. That deal had many hurdles and extra expenses to get everything in order. That high of a percentage of expenses doesn't occur very often. Except on commercial properties where the appraisal fees are much higher than a residential appraisal. When a seller wants to close it with an attorney or title company we will pay up to $100 of the cost of that. After that the seller has to pay for it. When the seller hears they have to pay for it all of a sudden they don't mind doing it through overnight mail. :)
Direct mail is a huge numbers game. For one I think I would add some additional states to your mailings. If you are getting 1% response you are doing good, anything higher than that you are doing great. I like that you tested several different letter combinations and narrowed down your best so far, that's what needs to be done to make your marketing efficient. Also remember that you are not done calculating any of your monthly stats. You will get responses 2,3,6,12 and even more months or years from now on those same letters you sent in April, May and June. Your stats seem to be in line with what I consider normal. My personal stats, on average I close one deal for every 40 worksheets right now. Again, direct mail is a big numbers game and should only be a one component of your entire marketing plan. Remember? You should have 3-5 lines in the water at all times? It seems you only have one line in the water. Honestly, I wouldn't think of going full time or quitting your day job just yet until you have a consistent number of deals in the pipeline maybe one a month or two a month, etc. Focus on the responses that you did get. Follow up with them every couple of months even if they said no. Send them an extra follow letter or postcard. Call them, email them. Ask them if they still have the note or did they sell it? If so to whom and for how much? If they still have it do they need some cash now? Can you update their prices for them? etc. That's how you start making the most out of your responses, follow up. Too many note brokers just throw out the worksheet if they say no and never follow up. Separate yourself from the herd and follow up. Hope this helps!

                                                         ~ Jeff

So you want to invest in or broker notes?

Been trying for awhile with limited or no results?

Check out the most talked about, current and innovative educational tools, training, mentoring, assistance and support services in the industry! Updated for 2015, click here to start growing your note business today!

If you have missed any of our Newsletters click here for our

Archived Monthly Newsletters!

If you have a note business question you would like answered in this newsletter just email Jeff!

Get started in the Note Business with the Complete Note Business Starter Package - includes consultation's with Jeff!