Did you know...

Fear of loss is a greater motivator than opportunity for gain.  On your first phone call with a note holder, tell them that before you can give them options on their note, the note will have to meet certain requirements or you won't be able to help them at all.

Upcoming Events

December 2015

     Chicago, IL

     Leadership Training

President's Corner

       Each week this month I am sharing one thing that I have learned over the years about being self employed and independent in the note business.

       This weeks is the fact that as note brokers we work basically on commission when we broker notes.  Generally we deduct our fee from the note investors prices and earn the difference between the note investors price and the price we give to the note seller. However, the lesson learned time and time again is this; the bigger the note does not necessarily mean the bigger the commission.

       Early in my note business career I lost a couple of large note transactions because I took way too much commission.  I lost them to other brokers who had already learned this lesson.  The fact is that the larger the note is the more sensitive to the discount the note sellers are going to be.  Once I realized this I was finally able to get a few of those very large notes to close and just get a transaction done.  I can remember a $1.4 million note years ago that I "only" made $14,000 on (just 1%).  Nothing to brag about but the transaction did close and I was able to move on to other transactions.  Have you realized this yet? Remember, Success Demands Action! Keep on marketing, it’s going to work! TWITA!

Question of the Week

Q - Hi Jeff,

          I have a note holder who is concerned about the partials and the investor holding the note. How does that typically work? Is the note held by an escrow company, or does the seller simply trust the investor with the note until it reverts back to the seller?

                                                             ~ Mark

Hi Mark!

          Thanks for the email! In short, when a partial is purchased the note seller/remainder holder usually has full access to the investor and/or servicing company to check on how the note is paying for the term of the partial. In addition we file and record in the county of the property a "Request for Notice" so that in the event of a default or pay off the seller is notified. The investor will notify the remainder holder way before that but it is just additional assurance for the remainder holder. 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 2012, 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 to see 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!