Note Business Tip of the Month
September 2011
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*Tip of the Month:
Did you know....
What
you know and can do is not necessarily how others see you. What they perceive is
a combination of their beliefs and your intended and unintended messages. You
must be aware of all these messages and manage the perceptions.
*Quote of the Month:
"All our knowledge is the offspring of our perceptions."
~ Leonardo Da Vinci
*Question of the Month:
Q - Hi Jeff,
Please help me with this question about rate of return.
The note holder wants to know your rate-of-return (expressed in a percentage) if
they accept your offer - that is, what your company would earn based on the $80,000 purchase of a $103,000 note. As I mentioned, the note rate is 6% on a 30 year amortization, and we would only be interested in the sale of the entire note. This was from the quote request for Boise ID
note. I'm not sure how to calculate his request. Please help me with this.
-
Barbara
A
-
Hello Barbara!
It is my experience when a note holder asks about our return or how much we are
going to make it is very questionable that they will ever do a deal. The fact is
that it doesn't matter what our return is or how much we will make. What matters
is how bad do they NEED the money. When they ask questions like this it shows
their need isn't that concrete yet. There is still hope and they may still sell
their note to you but I just wanted to tell you this for your own information.
Now for what to tell the
note holder -
The actual calculated return after expenses, costs and overhead for the investor
is initially about 12% for the investor. And that is IFF (if and only if) the note goes the full
term with no delinquencies, defaults, collection costs or foreclosures. If any
of those things happen the investor will be lucky to at least get their money
back and have NO return on their money.
What the note holder has to realize as well is that on the initial price we gave he
is receiving about 80 cents on the dollar which is top dollar these days. But
that may not be true much longer, with the disastrous stock market the last
couple weeks and the economy still in question, even 80 cents on the dollar may
be gone soon. In addition, if the buyers credit is poor or the value of the
collateral is less than the sales price the price will go down even more, IFF we
will even consider it anymore.
What you need to try to do is to set the note holders expectations on the first
phone call and really try to find their underlying need, if any, and the story
behind the note.
Well, that's it for now. Hope this helps!
- Jeff
Jeff's Speaking and Instructing Schedule
Location Date Event (click for info)
Newport Beach, CA October 15, 2011 Cash or Cashflow
Sherman Oaks, CA October 29, 2011 Cash or Cashflow
Redondo Beach, CA November 19, 2011 Cash or Cashflow
Los Angeles, CA December 2011 Cash or Cashflow
Las Vegas, NV November 10-13, 2011 NoteWorthy Convention **
Los Angeles, CA Fall 2011 Secrets of Paper
Salt Lake City, UT December 7-12, 2011 Real Estate College
San Antonio, TX Spring 2012 Note Symposium
Contact Jeff today for information about having him Speak to or Teach your group!
** My Topic at the NoteWorthy Convention will be: Push The Partials: If you don’t know how, you must learn now! - With up to 80% of full purchase note transactions being cancelled in today’s market only the note brokers and note buyers that are adept at calculating, negotiating and closing partial purchase options will be able to survive and grow their business. If you are serious about the note business this is a must attend session. Jeff will share with you updated current statistics of the real estate and note markets as well as show you exactly what it means to Push the Partial! TWITA!
The end of Summer is here and Fall is just beginning and that means the end of the year is near. What do you plan to do for your note business to close out the year? It seems to me that there has always been a consistent tendency during the last quarter of every year of individuals trying to improve their existing note businesses or trying to get a new note business started. It is similar to the new year's resolution attitude but with the drive to get something done before the end of the year. So this year, for all of you who are on the edge about improving or getting into the Note Business I am offering some pertinent specials for you to grow your note business. The note business is moving forward and things have been improving throughout 2011. We are looking forward to 2012 to be an amazing year in the note business. So get the knowledge and assistance you need to prepare to make 2012 to be your best year ever. TWITA! :)
2011 Fall Specials
NEW Calculator Secrets ~ Regularly $97.00 - Fall Special $77
(Click here to see the Table of Contents, read more about Calculator Secrets and to order!)
"Before I bought your calculator book I was having trouble with anything other than fully amortized notes. Now I am able to calculate all different kinds of notes! The repetition and real worksheets were extremely helpful. Thanks Jeff for another great Note Industry tool!" ~ D. Jarege, CA
"...there is NO WAY I would be able to calculate the numbers for these notes on the worksheet if it wasn't for your calculator book! Out of the 7 note worksheets I submitted, 4 needed calculations I learned in your book! No deals for me if it wasn't for you. If someone is interested in getting in the note business, learning the calculator is STEP ONE! 'Calculator Secrets' showed me what I needed to know about the numbers." ~ L. Eck, CA
Secrets of Paper 101 ~ Regularly $149.00 - Fall Special $100
(A beginners introduction and overview of the Discounted Note Business - includes 4 audio disks)
"Thank you for the very timely and informative introduction to notes. I understand more of what is expected of me and what the true note industry is like. I am ready to move forward now with your help!" ~ D. Jones, FL
Rainbow Package ~ Regularly $179.00 - Fall Special $125
(Includes Scripts & Tips, Every Single Profitable Note Marketing Idea in the World, Personal Cash Flow Prosperity, Note Holders Handbook)
"Your materials are excellent and very helpful, off the charts as a matter of fact. Your knowledge is like that commercial, "priceless"!!! Thank you for being you. T.W.I.T.A!" ~ M. Berchard., NJ
Note Business Complete Starter Package ~ Regularly $376.00 - Fall Special $250
(Includes SOP 101 audios PLUS above Rainbow Package AND the Glossary of Note Terms AND the new Calculator Secrets book)
"...As a new broker, I cannot thank you enough for your help and dedication to others in this business. You truly are a MASTER Broker. I appreciate your willingness to answer my questions and teach me. Your guidance and experience are second to none! Thank you for sharing your knowledge, skill and patience. Without your assistance, my first deal would never have been possible...." ~ D. Suesan, AZ
ORDER NOW!
One on One Mentorship with Jeff Armstrong ~ Regularly $3,995.00 -
Fall Special
$2,100
(Includes
Note Business Complete Starter Package as stated above,
click here to view mentorship
info)
"Jeff Armstrong is a true mentor for Private Mortgage Note consultants. I had
heard about Jeff's' services for Private Mortgage Notes on a conference call. I
contacted him when I was about to send out my first direct mail piece. He
offered great advice from what materials to use to tactics in how to improve my
response rate. Once deals started coming in, Jeff taught me the ropes,
introduced me to funding sources, guided my communications with sellers, and
helped me negotiate the best possible deals for the seller and me. Within three
months from the time I started with Jeff, I have closed 3 deals, earned over
$6500, and have 6 other deals in progress! I directly ascribe it to his guidance
and expertise. It doesn't cost, it pays to learn from a Master!" ~ A. Osmond, WA
"I don't want anyone else to buy your books or get mentored by you! This is awesome!!! Phone is ringing off the hook thanks to you!" ~ L. Eck, CA
Follow
Us
Jeff Armstrong is President of Armstrong Capital. He is a member of the Million-Dollar Club, a Master Buyer, 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 818-865-2322, faxing 818-449-4840, e-mail jeff@armstrongcapital.com, or visit www.armstrongcapital.com and click on "Note Brokers" for answers, articles and information about his services and how Armstrong Capital can help you succeed.
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