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Tip of
the Week
Did
you know....
You can easily attract referral
sources to you by being a
resource to them. Look for
ways to benefit them without
trying to sell your services...
until they ask you.
Product Highlight
Negotiation starts from the
moment you first connect with a
note holder and to help with
that "Scripts and Tips - A Handbook for the Serious Note Broker"
is what you need.
Every month I am asked about what to say to note holders when they contact you
on that first phone call, when giving the price and how to negotiate. In
addition, the book lists for you more specific questions for certain situations and
property types including condo's, commercial properties and land. It also spells
out a few of what I call "magic" questions to help you determine that
all important motivation or need that the note holder must have if you are ever
going to get them to accept an offer on your note.
Click for more info and to order
TODAY! When you order in June you
will receive the
E-Book version for FREE!
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Upcoming Events
September
20-22, 2013
Chicago, IL
Secrets of Paper
Details and registration
opening soon!
2013
Los
Angeles, CA
Secrets of Paper
April 25-26, 2014
Las
Vegas, NV
Paper Source
Note Symposium
Watch for Exclusive
Fred
Pryor CareerTrack seminars
facilitated by Jeff,
details
coming soon!
Ask Jeff to come and
speak
or teach
to your group or
at
your event!
Coming Soon
Exclusive
Note-able Membership
with Videos,
Training, Tools
and Support! |
Quote
of the Week
“Concentration
is a fine antidote to anxiety.”
― Jack Nicklaus
|
Learn to invest in and broker
notes... the
Secrets of Paper 201 Home Study
Course is
Your Launching Pad to Success
in the Note Business!
Always includes SOP 101
audios - Introduction to the
Note Business PLUS when you
order SOP 201 in this month you will
also receive the "Art of Target Marketing for
Note Holders" 5 part video
series
(regularly $99) for FREE! |
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 President's
Corner
I hope you had a relaxing
Memorial Day holiday and that
you are now rested and ready for
the approaching summer.
As I eluded to last week, in the note business we are seeing more positive
signs of the next wave to come. There are some
small signs of real estate market stability across the nation and some
forecasters are saying the economy is on a path to slowly start stabilizing as
well. Both of which will make the note business blow wide open again. So
this week I want to talk more
about marketing.
One of the marketing methods that we use every day without even knowing it is
"Direct Contact". It's just a question used as small talk to get a
conversation started: "What do you do for a living?" We hear it all the
time when we meet someone new, are at a networking meeting, at a friendly get
together and even when we are talking to someone in line at the grocery store.
Yet how you answer that question can determine whether the conversation
continues or stops dead in its tracks.
Every entrepreneur and business professional needs a clear, concise and engaging
way to answer the question "What do you do?" So here are some suggestions
on how to come up with a unique answer of your own:
-
Know your audience or
target customer, the seller financed note holder. Knowing exactly who
would benefit from our service in the note business is critical. You
need to be able to communicate ideas that they will recognize, so they will
see how you can help them (or how you can help their clients). You
should also be able to adjust your pitch, depending on your audience (i.e.
directly to a note holder, real estate attorney, real estate agent, etc).
-
Understand what the other
person cares about, his or her concerns or priorities.
-
Talk about your results,
not how you achieve them. For example, instead of saying that you pay
cash for notes, you might say we provide liquidity for individuals receiving
payments on a real estate secured note.
-
Connect with your own
passion and enthusiasm for what you do.
-
Pay attention to how
people respond. The goal of an elevator speech is to get people
interested and have them ask more questions. If they don't, you need to
adjust what you are talking about so people can recognize the value or benefit
you provide.
-
And remember less is more.
We purchase first position performing seller financed notes from individuals who are
currently receiving payments on a mortgage that they have carried back to
facilitate the sale of their property.
Put some thought into your elevator speech this month and see what you can come
up with. Know that whatever you do come up with will definitely have
people asking you more questions. Therefore, for some back up small talk, be
prepared to answer them and to give them a scenario of how a seller financed
note might have been created and how a simple transaction might take place.
Remember, Success Demands
Action! Keep on marketing, it’s
going to work! TWITA!
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Feature Article
A Pledge for Ethics
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The discount on the note
was deep. The note
holder had to think long
and hard about accepting
the offer but the
consultant held firm on
the price. “Ok, let’s go
ahead,” the note holder
finally decided. “I
need the cash and it
will really help me
out.” So she decided to
proceed.
Then after the due
diligence had been
performed the paperwork
arrived. The amount
quoted was there, just
as agreed, but buried in
the agreement were a
host of additional
charges for credit
checks, appraisals,
title work, overnight
fees, document prep fees
and the like. Suddenly
the deal came to a
screeching halt. The
note holder was not only
angry, but began to
question the integrity
of the note broker and
decided to look
elsewhere.
All of us in
business for ourselves
feel a bit intimidated
when giving the prices
and options. We don’t
want to turn off the
note holder with a big
discount. But we also
need to cover our costs,
our overhead, our time
and hopefully have some
profit left over, and we
can’t exactly know
precisely what hurdles
will arise over the
course of a
transaction.
The problem,
though, was not the
price. It was about the
note brokers’ effort to
slip in additional
deductions at the last
minute. It was about
ethics and integrity and
the ability to trust
that those we are doing
business with are
operating honestly.
Read more... |
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Question of
the Week
Q –
Hello Mr. Armstrong,;
I just wanted to clarify a few
points shown in the http://www.armstrongcapital.com/TemporarySellerFinancingwDirectBuyout.htm
portion of your website:
1) Is a sub 650 FICO score or no
score at all, as I am looking at
end buyer who is a native of
Germany, and she indicated she
does not have a FICO score, a
deal breaker?
2) Step 8 refers to 30 days
after closing, does that mean a
note that was created to start
yesterday, May 1st, can have the
arrangements made now, and will
be bought once the first
mortgage payment is made or June
1st, whichever comes later?
3) Any minimum or maximum
amounts I should know about?
4) Finally, I don't seen any
indication on your website that
you do, but I want to make
absolutely sure: do you buy
defaulted paper? Thanks.
~ Ervin M.
A
– Hi Ervin!
Thanks for the questions! Here
are my answers:
1) It is not a deal breaker but
a sub-650 credit score will get
a bigger discount. As far as
the Germany native that might be
a bit more difficult. If a
foreigner (lives outside of the
country) is the payor there are
very few buyers who would
purchase the note. If there just
is no credit or they don't have
a SS# then we usually assume
poor credit and price
accordingly.
2) Correct. We can start our due
diligence once the property has
been sold and close after the
first payment has been made at
least 30 days after the sale of
the property.
3) No Minimums really, Maximums
probably $6MM, but honestly we
rarely see notes even above
$500K
4) NO, we do not deal in that
arena, it is a totally separate
niche.
Hope this helps!
~ Jeff
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