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Quote
of the Week
“A
smart man makes a mistake, learns from it,
and never makes that mistake again. But a
wise man finds a smart man and learns from
him how to avoid the mistake altogether.”
― Roy H. Williams
 President's
Corner
This October I am sharing one
thing that I have learned over
the years about being self
employed and independent in the
note business.
This week I would like to point
out the fact that note
professionals are problem
solvers and very creative. In my
early years I did mostly full
purchases and did not give much
thought to what the industry
calls partial purchases.
That was a big mistake because
as business got more competitive
I saw my pipeline getting
smaller and smaller. I
eventually figured out what I
preach to everyone from the
beginning, to push the partials.
I began to emphasize partial
options more when presenting
note holders with prices for
their notes and eventually
became very good at getting them
to accept partials (which are
much more likely to close)
rather than having them sell the
entire note. There are at
least twenty-seven or more ways
to buy a note and as note
professionals we need to be able
to solve the problems that the
note holders put in front of us
in creative ways. Remember,
Success
Demands Action! Keep on
marketing, it’s going to work!
TWITA!
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Feature Article
Examining the Mind of a Note
Holder Part 2 of 3
Marketing for notes is more
than just sending out a
postcard or building a
website. There are many
reasons why a note holder
responds to your marketing
efforts and then
subsequently accepts an
offer on their note.
Read More..
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Question of
the Week
Q
- Hi Jeff,
If someone calls in on a note and wants a generic range of pricing (which they
all do) is there any numbers that you throw out as a general rule of thumb or
guide (EX: 75-85 cents on the dollar, or a common discount amount, etc.) along
with making it very clear that it all depends on credit, appraisal, title etc?
~
Trena
Hi Trena!
Thanks for the email!
If they are just asking for a range I usually tell them 60-80 cents on the
dollar. There are some note buyers that will pay up to 85 cents on the dollar
for really good notes, but those are few and far between. So allowing for
something for yourself as a broker fee leaves up to 80 cents on the dollar for
the note holder (of course depending upon acceptance of credit, appraisal,
title, etc). My personal statistics on average pay prices on closed deals right
now are about 72 cents on the dollar. Hope this helps!
~ Jeff
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