Armstrong Capital Newsletter

Over the last eight months, we have focused on Gathering Information. We started to look at the different property types that notes are secured by. We also looked at the different situations and the additional information that funding sources would like to know to initially give you accurate pricing. We have covered Residential properties, Mobile Homes with land, Condominiums, Commercial properties, land, properties sold with no down payment, second position mortgages and properties with hazardous waste potential.

We have learned that, in addition to completing the worksheet, there may be some additional questions to ask a note holder (in different situations or with different property types) to get a better picture of the transaction and the story behind the note. This will give you and the funding source. The more information we get up front the more likely the prices we get from the funding sources will not be cut later on down the road during the due diligence process. You will save yourself and the funding source lots of time and wasted effort by just asking a few extra pointed questions.

So, this month let’s start talking about what to do next. You’ve completed the worksheet, asked a few additional questions and now you are ready to get some quotes.

Submitting a Worksheet to a Funding Source

Ok, first I want to say something about the word quote. I personally don’t like to use the word quote because to me the word quote sounds like it is negotiable. Instead, I use the word price. So I am submitting my completed, legible worksheet to a funding source for pricing options.

Notice I used the plural, OPTIONS. Lots of consultants and brokers don’t ask the funding sources for anything other than a full purchase option. In the bottom left or right hand corner of most worksheets there are spaces for options and other prices. USE THEM. (More on this subject in a future newsletter).

When a funding source evaluates a worksheet and determines their price, the numbers they come up with are non-negotiable. If they say they will buy an $80,000 note for $75,000, they will… subject to their due diligence. The price they write down on your worksheet is their best price assuming everything checks out ok. The price they write down assumes (is subject to):

2) An appraisal of the subject property to appraise for at least what it was sold for, and

If any of the above are not what they expected (i.e. poor credit, low appraisal or clouds on the title) the price may change, be lowered or the entire transaction may be cancelled. Even if you fill out the worksheet completely and get all of the questions answered up front there is still the possibility that the transaction will not get to the closing table if you can get the note holder to accept your offer.

I hope this helps you understand a little better on what the numbers mean when a funding source writes down some options on your worksheet. Next month we will talk about the next step after obtaining your offers, subtracting your flat fee.

Keep on marketing, it’s going to work! Hope to see you all in a few weeks at the Cash Flow 2007 convention in Dallas ! J

Armstrong Capital
800-845-3055
fax 818-865-2323
PO BOX 6517
Westlake Village, CA 91359
visit our website at www.armstrongcapital.com

Jeff is also the Editor of the Noteworthy Newsletter, a printed monthly publication. If you are new or experienced in the Cash Flow Industry I encourage you to check out and subscribe to the Noteworthy Newsletter, an indispensable newsletter for Note Brokers, Note Buyers and Real Estate Investors. Just click here and then click on "Newsletters" at the top of the page.

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For more great strategies, don't forget to check out Jeff's informative cash flow books for Scripts, Tips, Marketing ideas and more!


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Jeff Armstrong is president of Armstrong Capital and Editor of the NoteWorthy Newsletter, www.noteworthyusa.com. He is a member of the Million-Dollar Club, a Master Broker, visiting instructor for the American Cash Flow Institute, and the author of three best selling books. He can be reached by calling 800-845-3055, faxing 818-865-2323, e-mail jeff@armstrongcapital.com, or visit www.armstrongcapital.com and click on "Note Brokers" for questions and information about his Master Broker services, Mentorship program how Armstrong Capital can help you succeed.

Hi again! J We’ve pretty much had our last bit of rain over here in Southern California and now the business for us will really start warming up before summer starts.

Submitting a Worksheet to a Funding Source