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Tip of the Week
Did you know....
To achieve success in the note
business you must be creative.
There is no best marketing
method. You've got to learn what
others are doing, test it for
yourself and figure out how it's
going to work best for YOU.
Product Highlight
Negotiation starts from the
moment you first connect with a
note holder and to help with
that "Scripts and Tips - A Handbook for the Serious Note Broker"
is what you need.
Every month I am asked about what to say to note holders when they contact you
on that first phone call, when giving the price and how to negotiate. In
addition, the book lists for you more specific questions for certain situations and
property types including condo's, commercial properties and land. It also spells
out a few of what I call "magic" questions to help you determine that
all important motivation or need that the note holder must have if you are ever
going to get them to accept an offer on your note.
Click for more info and to order
TODAY!
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Upcoming Events
March 17, 2012
Chicago, IL
RE and Note Intensive
Spring 2012
San Antonio, TX
Note Symposium
May 2012
Los Angeles, CA
Secrets of Paper
September 2012
Chicago, IL
Secrets of Paper
Ask Jeff to come and speak
or teach to your group or at
your event!
Coming Soon
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Membership
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Quote
of the Week
"It is not the strongest of the
species that survives, nor the most intelligent that survives. It is the one
that is the most adaptable to change.”
- Charles Darwin
 President's
Corner
While sitting at the
airport last week waiting for a
flight I couldn’t help
overhearing the guy two seats
over from me in a very heated
conversation on his cell phone.
Normally I try to ignore other
people’s conversations but this
guy was just so loud people
around him couldn’t help
listening to him. He was
ranting about some transaction
where he put a couple of people
together and he was promised a
$10,000 fee if it ever got
closed. He got stiffed and had
nothing in writing and thought
that he knew the people well
enough that he could trust
them.
This incident made me think of
our industry. As note brokers
we need to be cautious about who
we send our transactions to and
who we work with. At the same
time investors need to be
cautious of who they are
accepting their transactions
from. The majority of the
investors, funding sources and
brokers are reputable, ethical,
moral and responsible.
Unfortunately, there are a few
who are not. What’s that
saying... Don’t let a few bad
grapes spoil the bunch? So how
can we as an industry weed these
few bad seeds out?
Well, if it is an investor that
is treating brokers poorly,
brokers could complain to the
powers that be and try to get
the issues resolved or just stop
sending transactions to them. I
think within a few months they
will either be gone or they will
straighten up and do things the
proper way and be accountable
for their actions.
If it is a broker that is
providing misinformation to an
investor to get a transaction
closed investors should stop
buying notes from them,
immediately, even if it means
not meeting their quota for
volume for the month, quarter or
year. Investors should also
stop buying notes from brokers
if it is a broker that gives a
seller a high price and then
lowers it near the end for no
actual reason just to make a
bigger fee, OR a broker that
gives a high price just to get
the note holder to sign their
agreement all the while knowing
they will never be able to get
that price for them, OR a broker
that tells a note holder one
thing but delivers something
totally different and coerces
them into going through with the
transaction. I could name other
atrocities I have heard a few
brokers do to just get a deal
but I think you get the idea.
Seriously, no transaction is
ever worth going down to the
level of being unethical,
immoral, dishonest and unfair.
As a broker do you want to be
told how much commission you are
allowed to make? OR, as an
investor do you want to be told
how much to pay for a certain
note or what yield you are
allowed to receive? I don’t
think so.
Should we come up with some
sort of real licensing
requirements of note brokers?
For investors? Should we
require some sort of continuing
education? Since we are not
licensed or regulated we need to
police ourselves and keep our
industry as uncontaminated as
possible.
Remember, Success Demands Action! Keep
on marketing, it’s going to work! TWITA!
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Feature Article
Use Your Tools
Well, another year has gone by
and it is February already. Did
you accomplish all that you
wanted to for your business last
year? If not, have you been
using all of the tools that are
available to you to assist you
in reaching your goals and
achieving success?
As many of you might know I am
an avid bass fisherman and I
often compete in tournaments. I
have only been competing in
tournaments for the last couple
of years and I have learned that
to be competitive I must make
full use of all of the tools
available to me. Not only that,
I must learn when to use which
tool and in what situation. In
addition I must be able to use
each tool properly and to its
full extent. Some of the tools I
use for bass fishing include my
boat, depth finder, trolling
motor, rods, reels, line and
artificial lures of all kinds.
Each tool has its own purpose,
place and time to be used. It is
up to me to determine the
exact...
Read More... |
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Question of
the Week
Q
- Hi Jeff, you recently passed on giving me
a price on a note that I found and you said that because it was
a flip you wouldn't be able to do anything until it is seasoned for at least 12 months.
You told me to have the note holder keep an excellent payment record and get back to them when they have 12 months of seasoning and
you would be able to look at it then. Well, I passed this on to the seller. They asked if an appraisal would help (one that we would order not one they already have) I told them that I thought this was only part of the issue. The second issue would be that the payor could make the payments for 12 months. But, I thought I would at least ask if we conducted an appraisal and if it
appraised at a sufficient value, would this make this transaction move forward
any earlier? Let me know. Thanks! - Ed T.
A
-
Hello! Nice but no.
You are correct in that the value is only part of the issue with
rehabber/flipper paper. Doing an appraisal now even if it appraised for double the sales price wouldn't
help. Remember we buy notes for the cash flow and one way to lessen the risk of
default and foreclosure is to let the note season for 12 months. With the
rehabber flipper paper the industry statistic is that nearly 7 out of 10
rehabber/flipper notes default in the first 12 months. SO if the note is still
around in 12 months and they have had on time payments the likelihood that the
payments continue is much, much greater. Hope this helps!
TWITA!
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