Note Business Tip of the Month 

November 2009

 

For all new subscribers, Welcome! If you have missed any of Armstrong Capital's E-letters just click here to read our Archived Monthly Email Newsletters!

This year we have added a Question of the month to this regularly scheduled "Tip of The Month" e-letter. If you have a question you would like to see answered in this newsletter just email Jeff!

 

*Tip of the Month: 

       Did you know....

           You should smile before you make a phone call and before you answer the phone? It has been proven that your voice has a much more pleasant tone when you are smiling and it's a good way to start off the conversation on a positive note.
         

*Quote of the Month:

         The majority of everything in this world is average so why would you
ever want to be in the majority?

                                                                                        - Charley Johnson

*Question of the Month:

 

Q - Hi Jeff...  As a note broker when I submit my pay out agreement to an investor or institutional funder/investor they see my referral fee and then they find a reason to change their price and offer a lower price for the note, what can I do to protect myself from this type of situation? Thank you in advance for your help as always. - J.B.

 

A - Hello! I'm not sure what a "payout agreement" is or where you got it from, that's not how we do business. Whatever it is you seem to have been having some issues with investors lowering their price after you send them in an initial package.

Just remember that whatever prices you get from an investor are ALWAYS subject to verification of the information given and ACCEPTANCE of credit, appraisal and title. If they are lowering their prices because of wrong information given to them initially or poor credit or low appraisal or title issues then welcome to the business. Otherwise you may want to use different investors.

As far as I can tell from what you have told me, it's just business. I do not believe that investors would lower their price just because they feel you are making too much money. In some cases I can see an investor having a conversation with you about the size of your fee if you are making more than say 20% because then it might be considered a bit much. But the investors and funding sources that I deal with would not lower their price just because they think I was making too much. Again, maybe you need some new investors.
                                                         Jeff

*Calculator Problem of the Month:

 

At the request of many of the subscribers to my monthly email newsletters and tips we will now have a calculator problem every single month for you to solve, using the simplest calculator for the note business the HP 10BII. This month we will calculate out the interest rate of a note when we only know the payment amount and the term on a fully amortized note:

 

Note terms - $100,000 note with monthly payments of $1,101.09, fully amortized for 20 years, no balloon. Verify the interest rate of the note:

 

1) This is what we know

 

    N   = 240

    I/YR = ???

    PV  = -100,000

    PMT = 1,101.09.00

    FV  =  0

 

        N     I/YR     PV      PMT     FV

     240   _?_  -100,000   1,101.09    0

 

When we have four of the five buckets filled in we can always calculate for the fifth empty bucket as follows:

 

2) Enter in the known information as shown above and solve for "I/YR" the interest rate of the note (push the "I/YR" button):

 

        N    I/YR     PV     PMT    FV

     240     12   -100,000  1,101.09   0

 

You should have gotten...   12% interest

 

You may see this from time to time when the seller and the buyer agree to terms but the seller doesn't know all of the information so you may be in the position of solving for the interest rate.  As long as we have four of the five buckets filled we can always get the answer. Did you get it? The interest rate on this note is 12%. Great job! More to come next month!

 

*Highlight of the Month:

October Special Extended!!! - We have had so many people take advantage of this that we decided to extend our offer until the end of November. As an aide to help you develop your note brokering skills my offer to you is my complete "Rainbow Package" of books for a very reduced price of $130!  That's over 25% off of the regularly discounted package price.  But that's not all, in addition, if you order through this email I will also send you FREE the Secrets of Paper 101 four disk audio set (regularly $99) with over 6.5 hours of straight-forward, honest beginning note business basics, again for FREE.  It includes the good, the bad and the ugly in addition to the myths of today's note business.  These are must have products in your note business library. Full descriptions of the products included are below.  I am only offering this for one month.  To order your "October Special" package just click here TODAY!

If the link above does not work for you and you want to take advantage of this offer just email me and we will make it happen. Thanks in advance! 

Jeff's Speaking and Instructing Schedule

         Location                    Date                              Event  (click for info & registration)       

Contact Jeff today for information about having him Speak or Teach to your group!

Jeff Armstrong is President of Armstrong Capital. He is a member of the Million-Dollar Club, a Master Broker, visiting instructor for the American Cash Flow Institute, instructor for Nouveau Riche and the author of several best selling industry 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 answers, articles and information about his Master Broker services and how Armstrong Capital can help you succeed.

Powered by YMLP.com