Did you know...

     It's good to be able to handle note holders objections as they come up but it's much better to make sure they don't come up at all.

Upcoming Events

 President's Corner

       This month I want to talk about ways to build rapport and trust with note holders. One suggestion is to treat every note holder you talk to as if they are a close friend or family member.

By treating the note holder as a close friend or family member, you will ensure that you have their best interest in mind. People have a sixth sense, and they know when you are more interested in making a sale (trying to buy their note) than you are in helping them out. Thus, you need to focus on the other person and what is best for him, as opposed to focusing on you, your company, and being the one they choose to sell their note to.

          Building trust and rapport with a note holder is key to your success in the note business. Remember, Success Demands Action! Keep on marketing, it’s going to work! TWITA!

Question of the Week

Q - Hi Jeff,

          How do you suggest approaching people to have them buy notes with their SDIRA's (Self-Directed IRA's)?

                                                        ~ Sarah
A - Hi Sarah!
          Thanks for the question. I really had to think about this one because I want to be very clear yet I do not want to discourage anyone. The short answer is that YOU should NOT approach people to buy notes with their SDIRA at all. You do not have the experience or knowledge yet to educate them properly about the investment.
          It is my personal opinion that you have no right to even attempt to sell a note to a private investor (whether in their SDIRA or cash on hand) IF you yourself have never purchased a note. I also think that you shouldn't even think about attempting to sell a note to a private investor, as the note broker in the transaction, when you have never even brokered one to an institutional or note investor. In fact, I do not think you should even attempt to try to broker a note to a private investor unless you have brokered AT LEAST 100 notes AND purchase at least 10 notes for your own account.
          There are some individuals out there that may have extensive financial and real estate experience who might attempt to sell to private investors sooner but I would say that few few should. The reason being that there is no business like the note business and even individuals with real estate experience or a financial background really know nothing about the seller financed note business (how it works, the hurdles, surprises, risks and rewards) and should get a good number of deals closed under their belt both brokered and purchased. In addition, when an individual purchases a note they should know all about the investment they are making, the good, the bad and the ugly, BEFORE they make an investment decision.
          When I teach people about how to buy a note for their SDIRA or other investment vehicle there is a right way and a wrong way. When a note is purchased correctly the investor will never, ever, ever lose their money (initial investment) even in the event of default and foreclosure, IF, IF, IF they purchased it properly in the first place. If a note is purchased incorrectly (for the wrong reasons, spontaneously without doing proper due diligence, etc) or without knowing all of the risks the possibility of losing their money is very likely.
          Just because a note broker is unable to get a note sold to an institutional or other experienced note investor (there is probably a good reason for it) you should not try to pawn it off on some naive individual investor who doesn't know any better.
         This was a great question. After being in the note business over 25 years now please remember this is only my two cents on the subject.
Hope this helps!
                                                      ~ Jeff

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 2016, click here to start growing your note business today!

If you have missed any of our Newsletters click here for our

Archived Monthly Newsletters!

If you have a note business question you would like answered in this newsletter just email Jeff!

Get started in the Note Business with the Complete Note Business Starter Package - includes consultation's with Jeff!