Did you know...

    The ideal Note Business would be a 100% referral business.  If you are not on your way there, look at the way you are cultivating relationships and examine how often you ask people for referrals.

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President's Corner

       Are you getting note holders to contact you but few callbacks? Chances are you have great skills, but you might be missing that extra oomph to help you stand out from your competitors. The truth is one of the most coveted skills among note professionals is—you guessed it—communication. In other words, communication skills can make or break you. Here are a couple more tips for you to consider:

5. Speak in a conversational style, but never interrupt. The best calls are those that feel like a conversation rather than an interrogation. Try to answer questions like you're telling a story rather than answering point-by-point in the form of a verbal list. Don't get carried away, though—you shouldn't feel so comfortable that you interrupt the note holder.

6. End by mentioning their name. At the end of the call, it's far more effective to say, "Nice talking to you, [insert name]" rather than a generic, "Nice talking to you." Referencing specific facts like these shows that you're paying attention, which is crucial.

Practice these tips on every phone call and you will transform how note holders see you.  Remember, Success Demands Action! Keep on marketing, it’s going to work! TWITA!

Question of the Week

Q - Hi Jeff,

          What are the most important parameters of a perfect note to broker, and how do they relate to each other (the variables)?
                                                        ~ Terry
A - Hi Terry!

          Thanks for the email, great question! Here's the way I see it right now in order of importance:

1) Down payment (really nothing less than 5% down but of course we prefer more)
2) Payor credit (600+ credit score only, very tough to sell a note with less)
3) Terms (we are seeing way to many interest only for short term notes, you know 4% interest only with a balloon in 12 months, where are these people going to refinance in a year?)
4) Property type - collateral (very tough to sell a raw land note right now, possible but tough)
5) Geography (Michigan, Ohio and Indiana still very tough to get a note sold there, possible but tough)
6) Full or partial (most deals we are closing now are partial purchases)
7) ITV (the reason for more partials being done, we don't want to be in a property too much because the value of the property keeps going down, so we lessen the risk by keeping ITV lower than usual for now)
8) Seasoning and Pay History (always a big factor)
9) Note Size ( tough to sell anything over $300,000 right now (investors don't want to lay out a half a million for a note right now, except for the companies who are only buying $1 million plus notes)
10) Yield (lots of prices we are seeing are based on ITV rather than a specific yield requirement)
11) Cash required to purchase note

 Hope this helps!

                                                          ~ Jeff

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