Did you know...

     When a new note holder contacts you and immediately asks you to send them information without first asking questions about your offer, you do not have a prospect at all.

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 President's Corner

       As a new year settles in, it’s only natural that new goals will appear. Be sure to examine your forecast for the first quarter, and make sure your operational goals for 2017 logically align. If you’re forecasting an increase in note closings, do you have adequate time to provide those goods and services? Likewise, if your closings are going to be flat, examine what expense items you can trim back to manage your cash flow. Preparations like this will help ground your 2017 goals with sound planning and solid preparations.

       Avoid the temptation to fixate solely on your clean, crisp calendar. It’s true — 2017 signifies a fresh start, but that does not mean last year’s lessons should disappear. The beauty of hindsight is that it’s 20/20, so take some time at the beginning of the year to reflect on the things you would have changed last year, and based on those reflections, brainstorm ways to make tangible improvements in the New Year.

       In addition, note business owners should remember to shine a spotlight on individual strengths during planning periods. Stay focused on your core competency. This is the reason why you decided to start your own note business. And by the way, this tip is applicable all year long! Remember, Success Demands Action! Keep on marketing, it’s going to work! TWITA!

Question of the Week

Q - Hi Jeff,

          So in my situation, if the private equity fund buys a home for cash and 45 days later closes the sale of that home with seller financing, your company needs 1 year seasoning on the note before you will buy it?  Assuming all your criteria is met.  Just want to clarify.

                                                     ~ Dru
A - Hi Dru!

       In short, we will look at buying that note after 1 month of seasoning. Here is the problem with quick fix n flip notes. We need to be able to get an objective third party appraisal for at least the sale price of the property. When a company or individual buys a property for $50,000 and sells it 2 months later for $100,000 we are going to want to see receipts and documentation for what was done to the property to increase the value that much in 2 months. In our experience, 26 years now, 4 out of 5 times the appraisal will not come in for the sales price and will actually come in for less than the balance of the new note created. When that happens we cancel the transaction or only offer a small partial purchase option. After 12 months of seasoning it is more likely that the appraisal will come in for the sales price and it is a much smoother transaction. So, does it have to have 12 months of seasoning, NO. Is it better for fix and flippers if it does to get the highest price for their note, yes.  Hope this helps!
                                                       ~ Jeff

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