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     Get the note holders physically involved when giving them your purchase prices. As you go through your phone presentation, get the note holders to grab a pen and take notes as you go along; tell them to “write this down” as you explain your options. If you can get them involved, they are more likely to sell you their note.

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 President's Corner

       Every note professional spends some time haggling, whether it is with note holders, vendors or investors. Most note business owners are street smart, and seem to naturally perform well in negotiations. You probably have a trick or two—some magic phrases to say, perhaps—that can help you gain the upper hand. But, often, the moment you get into trouble in a negotiation is when something careless just slips out. If you are new to negotiation, or feel it is an area where you can improve, I will be giving you a few tips on precisely what NOT to say in the next few weeks.

          This week, do NOT use the word "between." It often feels reasonable—and therefore like progress—to throw out a range. With a note holder, that may mean saying "I can give you between $10,000 and $15,000." But that word 'between' tends to be tantamount to a concession, and any shrewd note holder with whom you deal will swiftly zero-in on the higher price. In other words, you will find that by saying the word between you will automatically have conceded ground without extracting anything in return.

         More thing Not to say next week. Remember, Success Demands Action! Keep on marketing, it’s going to work! TWITA!

Question of the Week

Q - Hi Jeff,

          Can you please explain how a partial works? Say if you buy 5 years of payments for $23,206, what does that mean, how does it revert back to the note holder and is there a closing again? 

                                                     ~ Connie
A - Hi Connie!

       Great question. Okay let me see if I can explain partials in short to you using your example. First, you need to make money so you deduct your fee just as if it was a full purchase offer. When we offer to buy 5 years of payments for $23,206 if you want to make money you offer something less than that, maybe $20,000, so you would get the difference less any normal costs of $3,206. So then the seller only knows $20,000, and they never know the $23,206 figure.

       Second, if we buy 5 years of payments (60 payments) for $23,206 we will collect the NEXT 60 payments.  AFTER we have received ALL 60 payments we would re-assign the note back to the seller and the seller would start collecting the payments again. No closing or anything like that occurs. The payor would receive a letter directing them to start paying the seller again and that is that.

       With that said, MOST of the time the seller NEVER gets the note back when they sell us a partial BECAUSE they call us up before the 5 years has passed and ask us to buy more or the rest of the note. When that happens you then have a chance to do another transaction and earn a second commission from the same seller.  We would give you a price, you give them less and make the difference. 

       Hope this helps!
                                                       ~ Jeff

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