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Resource Highlight
In easy to
understand language, the topics
that are discussed in the Note
Holder's Handbook include:
·
How much is your note really
worth?
·
Why record keeping is vital
to your note's value
·
A simple technique that can
avoid tax problems.
·
What to do when the payments
are late.
·
What to do if the payments
stop and when to foreclose
·
A simple step you can take
to verify the safety of your
note.
·
How to get top dollar if you
sell all or part of your
note.
The Note Holder's Handbook
also includes a Handy
Reference Data area to keep
all of the pertinent
information regarding the
note in one place AND a
simple to use Payment Record
chart to keep track of the
payments received. This
handbook is a must for
someone receiving payments
on a real estate secured
note as well as a fabulous
marketing tool for note
brokers and investors.
good saleable note as well
as suggested property sale
and note structures.
Click for more info and to order
TODAY! When you order this month
you will receive the WORD format AND E-Book version for FREE!
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Tip of the Week
Did you know...
An apology is a great way to
break the barrier when
contacting note holders.
Do it in the beginning of your
call with, "I', sorry to bother
you (in the evening or whatever)
like this. My name is ____ and
the reason I am calling is..."
Upcoming Events
December 2014
Chicago, IL
Leadership Training
Renatus
February 2015
New
York, NY
Secrets of Paper
Renatus
TBA 2015
Los
Angeles, CA
Secrets of Paper
Ask Jeff to
come and
speak or
teach
to your group
or
at your
event!
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Quote
of the Week
“You
may encounter many defeats, but you must not
be defeated. In fact, it may be necessary to
encounter the defeats, so you can know who
you are, what you can rise from, how you can
still come out of it.”
― Maya Angelou
 President's
Corner
In this second week of November
I am continuing on how a note
broker can ensure a successful
period for the close of the
current year and a strong start
for the New Year. The end of the
year for the note business
typically means work, work,
work! And also: opportunity,
opportunity, opportunity! So to
embrace the end of the year
madness and put into action my
second of four suggestions for
November.
This week I’d like you to think
about not discounting notes too
much and/or taking too large or
an excessive broker fee. You
have to be careful in the note
business and stay competitive.
If your fourth quarter is
typically a good one for you,
you want to close as many
transactions as possible. Your
profit will come with volume and
numbers of transactions in your
pipeline. Don’t be greedy, just
get the transaction accepted and
go get another one accepted.
Maybe offer promotions that
don’t eat away at your margins.
I love to use my 24 payments for
10 times the payment amount at
this time of year.
Remember,
Success
Demands Action! Keep on
marketing, it’s going to work!
TWITA!
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HERE?
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Feature Article
Note Business Technology
When I first started the note
business in 1991, my toolbox
consisted of a phone, a pen, a
worksheet and a calculator with
which I could gather the
information from the note
holder, verify the payment
amount, the balloon amount if
any and verify the current
balance of the note. At that
time, a fax machine that sat on
your desk spewing out thermal
paper faxes in rolls on the
floor was a part of doing
business. A telephone connected
to your wall through wires, what
is now called a land line, was
commonplace...
Read More...
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Question of
the Week
Q
- Hi Jeff,
I
am working on selling a rural property. The property is valued at 60k. I have a
friend who wants to purchase, but does not have much cash on hand. I am curious
to know if it is possible to sell the property for 70k with 10k down, collect
payments for a year or two and if the property appreciates above the 70k value
to sell the note in the same manner as a property which was purchased with a
20-30% down payment? Are there any issues with raising the price by 10k and
hoping for appreciation other than the risk that it does not appreciate? If it
is an okay strategy, what type of interest rate and amortization period would be
needed to make the note saleable and can it be sold without the note containing
a balloon payment? Also, how does one go about making sure an owner financed
buyer maintains proper insurance? Are impounded the answer? Thank you Jeff!
~ James
Hi James!
Thanks for the email!
First of all if you sell the property for more than we can get an appraisal for
then yes you will need to hold onto it until the value does get close to the
sales price before you can get top dollar for the note when you go to sell it.
The risk is, as you stated, that it won't appreciate and you won’t be able to
sell it for top dollar. The best suggestions we have for people that are
thinking of carrying back a note these days for a single family home owner
occupied would be:
At least 10% cash down payment,
9% interest rate or higher, 30
year amortization, with a 7 year
balloon, buyer credit score of
650+ and at least 3 payments
made from the time of inception.
A note like this would get about
80 cents on the dollar which is
about top dollar right now. As
far as taxes and insurance, you
could create an impound account
and escrow the payments 1/12th
to the buyer so you are sure
that they are paid OR you can
contact the insurance company
and check the tax records each
year to check on them. Hope this helps!
~ Jeff
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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!
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