Did you know...

Rejection when talking to note holders is almost never as bad or as often as most note brokers think.  If you don't already know this, you are probably not getting enough note holders to contact you or you don't know what to say when they do.

Upcoming Events

December 2015

     Chicago, IL

     Leadership Training

President's Corner

       This month I am sharing one thing that I have learned over the years about being self employed and independent in the note business.

        This week lets talk about trying to narrow your focus in the note business.  At one point in time I noticed that notes secured by commercial property were somewhat larger in comparison to residential notes. I thought that if I just targeted only commercial notes I would get larger notes, therefore make larger commissions, and as a result make more money overall. I did this for an entire year and it was one of my rookie mistakes in the early '90's. 

       There are in fact fewer commercial notes than there are residential notes which gave me in reality fewer closed transactions and less earnings that year.  The lesson learned here is to just do lots of transactions.  The bigger ones will come but in the meantime keep the pipeline full of any note transactions you can get.  Closing five smaller residential transactions every month is a lot better than closing one commercial transaction every couple of months and much less stressful.

       Remember, Success Demands Action! Keep on marketing, it’s going to work! TWITA!

Question of the Week

Q - Hi Jeff,

          I appreciate your prices and options. I have not quoted the >seller yet, but I am intrigued with the second option-Split Purchase. Please help me understand this option correctly.  You re offering $55,359.00 now for the balance of the payments and an additional $52,000.00 of the balloon payment when the note comes due in 7/2018. So, the seller will be getting a grand total of $107,359.00 less my fee. Do I deduct my fee from the initial offer of $55,359.00 or do I deduct another fee from the second payout in 2018 as well? Please let me know. Thank you!

                                                             ~ Marc

Hi Marc!

          Thanks for the email! Yes on the Split Purchase you deduct your fee from the initial payment of $55,359.00. So you might offer the seller $52K NOW and $52K of the balloon payment when due and paid. Most investors that will do an option like this do not usually allow the broker to deduct from the future payment.  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 2012, 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 to see 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!