Note Business Tip of the Month 

December 2009

 

For all new subscribers, Welcome! If you have missed any of Armstrong Capital's E-letters just click here to read our Archived Monthly Email Newsletters!

This year we have added a Question of the month to this regularly scheduled "Tip of The Month" e-letter. If you have a question you would like to see answered in this newsletter just email Jeff!

 

*Tip of the Month: 

       Did you know....

           The beginning is the most important part of the work?   

*Quote of the Month:

         Many have great ideas that could change the world but get side tracked at the first sign of adversity. The great find a way to make their ideas a reality no matter what comes their way. 

                                                                                        - Charley Johnson

*Question of the Month:

 

Q -   Hi Jeff....  

We loved being in your class and learned so much.  I have some questions and hope you will answer them for me.  Would you tell me how you find seller financed notes at the court house?  I believe you should only look back 6 months, is that what you recommend? We also had a conversation about advertising; what is small scale to start with? You mentioned money and numbers, I didn't get any of that info in my notes. Thank you,

                D.C.
A - Hello!
Thanks for the email! Searching for names and addresses at the county recorders office is a time consuming task. All I remember is that we looked up on tapes of microfiche at all of the recorded documents not older than 3 or 6 months. Now they might have them online or on computers or something. Then you look for the states Security Instrument (Deed of Trust, Mortgage, Land Contract) And when you find the Security Instrument you look in the upper right or left hand corner and it will say "When recorded return this document to:" and there will be a name and an address. IF the name is a Mortgage Company or Bank or other lender keep on looking. If the name is an individuals name then you have found a seller financed note and you write down the name and address and add it to your list. I remember when I did that way back in the early 90's it took me 6 months to collect 200 names because of number of documents that are recorded every day here in LA county. I do not know how many documents are recorded in your county but expect to look through a ton of them to find a few.

With that said you can also purchase names and addresses of note holders from the company that I mentioned in class that I use, Fidelity National Information Services (a branch of Fidelity title) from Carolyn.covington@lpsvcs.com. IF you mention my name she will wave the $200 set up fee. They have a program where you can prepay for 5000 names for $600 and receive them on a monthly basis. So maybe you ask them to send you 500 names per month (less than 3-6 months old) from whatever areas of the state or country you like.

A small budget marketing plan might include 500 letters per month, an ad or two in some of those Pennysaver types of papers, internet marketing on some of the free classified sites like Craigslist, attending a networking meeting once or twice a month, building your referral sources and direct contact. You might be able to do all of that for about $500 per month depending upon how much your mailings will cost you. However please keep in mind that this is a real business and that like any real business it takes time to get things started and time to figure out if this business is really what you want to do. It is a big numbers game and success is not related to how much money you spend on marketing but on what you do with the responses once your marketing starts to work.

These are just my suggestions and opinions from someone who is currently in the business and has been for over 19 years.
                                   Jeff
 

*Calculator Problem of the Month:

At the request of many of the subscribers to my monthly email newsletters and tips we will now have a calculator problem every single month for you to solve, using the simplest calculator for the note business the HP 10BII.

 

This month we will calculate out an interest only note:

 

Note terms - $250,000 note with interest only payments and an interest rate of 6% with a balloon in 7 years. Verify the payment amount of the note:

 

1) This is what we know

 

    N   = 84

    I/YR = 6

    PV  = -250,000.00

    PMT = ???

    FV  =  250,000.00 (if all that is being paid is interest every month the principal balance on the loan never goes down and thus they still owe the same amount the note started at)

 

        N     I/YR     PV      PMT     FV

     84      6   -250,000   _?_   250,000

 

When we have four of the five buckets filled in we can always calculate for the fifth empty bucket as follows:

 

2) Enter in the known information as shown above and solve for "PMT" the payment amount of the note (push the "PMT" button):

 

        N    I/YR     PV     PMT      FV

     84     6   -250,000  1,250.00  250,000

 

You should have gotten...   $1,250.00 (even) monthly payment amount

 

You may see this from time to time when the seller and the buyer agree to the terms so you may be in the position of calculating out the payment amount on an interest only note. As long as we have four of the five buckets filled we can always get the answer. Did you get it? The payment amount on this note is $1,250.00 per month (it is even) and at the end of the 7 years the payor must somehow come up with the $250,000 and pay the note off (refinance, sell the property, etc). Great job! More to come next month!

 

*Highlight of the Month:

 

End of Year Special Extended!!! - As an aide to help you develop your note brokering skills I am extending my offer to you through the end of the year only, of my complete "Rainbow Package" of books for a very reduced price of $130!  That's over 25% off of the regularly discounted package price.  But that's not all, in addition, if you order through this email I will also send you FREE the Secrets of Paper 101 four disk audio set (regularly $99) with over 6.5 hours of straight-forward, honest beginning note business basics, again for FREE.  It includes the good, the bad and the ugly in addition to the myths of today's note business.  These are must have products in your note business library. This offer will expire December 31, 2009.  I WILL NOT extend this offer ever again.  To order your "Special" package just click here TODAY!

A few people have contacted me and told me that the above link did not work for them. If the link above does not work for you and you want to take advantage of this offer just email me and we will make it happen. Thanks in advance! 

Jeff's Speaking and Instructing Schedule

         Location                         Date                          Event  (click for info & registration)       

Contact Jeff today for information about having him Speak or Teach to your group!

Jeff Armstrong is President of Armstrong Capital. He is a member of the Million-Dollar Club, a Master Broker, visiting instructor for the American Cash Flow Institute, instructor for Nouveau Riche and the author of several best selling industry 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 answers, articles and information about his Master Broker services and how Armstrong Capital can help you succeed.

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