Seller Financed Note Business Increases 40%!

“The number of seller-financed notes created over the past two years has jumped 40%!”

This breaking news was reported by Scott Arpan of Advanced Seller Data Services (ASDS) based on the analysis of information collected by their company.

They currently compile data from the public recording offices for owner financed real estate notes in over 1600 counties across the United States. Read more

Selling Mortgage Notes? Find the Right Note Buyer!

Note Investors fall into one of four groups, but which one is right for you? Safe to say it’s not “The Posers!”

Here’s a look at each group including tips for finding and selecting the best note buyer.

Read more

Note Broker Question: How Do I Find Notes On A Budget?

Wondering how to find real estate notes on a budget?

You are not alone. Here are some helpful tips from a recent note broker inquiry.

I previously owned a mortgage broker business and in 2007 did dabble in the note business. I also closed about 4-5 deals as a note broker. I have since closed my mortgage broker business and would like to get into note brokering, but I have a limited budget to start with (about $2000 – $3000). I purchased your program for support and to acquire additional knowledge. How do you suggest I spend my limited funds to get started?

George P. – Virginia Beach VA

Hello George!

You ask a great question and actually have a decent marketing budget to get started. You also have the benefit of being ahead of the learning curve by having already closed several deals.

You will need to set aside enough to cover your basic business setup costs (phone number, business cards, brochures, licenses, and a website).

While there are people in this business buying notes that don’t have a website, I truly believe you need at least a basic 5 to 7 page Note Buyer website to be in business these days. Think of the site as your storefront, providing credibility for your services.

All of these setup items can usually be accomplished with under a $500 budget.

The least expensive way to market is by building a referral base. This can be done through networking with other professionals, offering local trainings, and Reverse Ad Marketing for the note business. Great networking candidates are real estate professionals, agents, CPAs, real estate attorneys, mortgage brokers, and real estate investment clubs. Referral marketing takes your time rather than your dollars and will utilize your business cards, brochures, and website from the setup process.

Run the free ads available online with sites like Craigslist, Ebay classifieds, and other online directories. Avoid buying classified ads or expensive display ads. Print ads rarely payoff unless you use a local want ad type paper (Nickel Nick, Penny Saver, etc) that offers low rates and you live in one of the high volume states for seller financing.

Look at a small but consistent direct mail campaign to note holders in your area. To save funds build the list yourself or purchase from a list provider like Advanced Seller Data Services. In order to maximize efforts, prequalify the notes for basic things like approximate equity (20% or more for best results) and property type (SFR). This will save you from paying postage to mail letters or postcards on deals that are harder to place with a note buyer.

The best way to stretch a small note broker marketing budget is to think local.

Work on branding yourself as the local seller financed note specialist. As funds become available then expand your efforts into other areas. You’ll find the “How To” details including sample scripts, brochures, and marketing pieces for each method in your member’s area of the Finding Cash Flow Notes training.

Hope that helps and feel free to contact me with additional questions.

To Your Success,

Tracy Z. Rewey

Should I Visit The Courthouse to Find Cash Flow Notes?

Wondering if courthouse research is a good for finding notes? It seems this question is making the rounds again, which is undoubtedly due to someone selling a “How To Find Notes at the Courthouse” training course for note brokers.

Let me start by asking a question in return.

Pardon my directness but… What year are we in? Is it 1981 or 2011? Read more

The Seller Financing Solution – Note Investor Radio Interview

Why is seller financing on the rise?

It provides a main street solution to a wall street problem.

If you are wondering how to use real estate notes to achieve your goals in this tough economy then you will want to catch the audio replay of the Note Investor radio interview.

Last Tuesday we tuned in with Lisa Moren Bromma of Wise Women Radio to discuss the opportunities available to buyers, sellers, investors, and note brokers using owner financing.  Here is just a sampling of the hard hitting questions she posed:

• You talk about solving the problems of main street that wall street created. What have you seen through the years in the lending business and how does your company solve these problems?

• What does it take to be a note investor in today’s tough market?

• What is the most difficult part in brokering or buying private mortgages that one must watch out for?

• How do you qualify your investors? How do you qualify the borrower of the note?

• Can investors use their IRAs to buy seller financed notes? How does one go about buying a note for their IRA?

• You have developed a strong following as someone who knows her craft. Tell us about your online presence, what you offer to those who are interested in learning the note business in today’s upside down real estate market.

• How do you keep up-to-date with industry changes and laws like the HUD Safe Act and Dodd-Frank Law?

• Do you have any recommendations on how people can educate themselves?

• You have been so successful where many of our peers have failed. What is your secret?

• Can you give us 3 basic ways to find mortgages?

• You are in business with your husband Fred. Is it difficult to work together? What is the secret to working and maintaining a solid personal relationship/marriage.

• What’s next for you in business and in life?

Many of you already know Lisa Moren Bromma as both a marketing expert and long time note buyer / real estate investor.  She’s also a published author and has recently started an Internet radio talk show entitled Wise Women Radio.  It was fun to be interviewed by Lisa and I encourage you to listen to the free audio replay.

You can also check out the archived talk shows with past interview participants.  It is a great way to pick up ideas at no cost! All it takes is just a small investment of your time! You can listen to the Note Investor interview and others at: http://www.wisewomeninvestor.com/WWR.html

 

 

How to Build a Note Business Website in 7 Steps

Why do you need a website for your note business?

There are over 239 million users online making up 77% of the US population according to Internet Word Stats – and that number is only growing!

With potential customers online there are great reasons for note buyers and note brokers to build a website. Your site will Read more

Discover Real Estate Notes – Interview With Lisa Moren Bromma

Looking for marketing expertise? Lisa Moren Bromma has been finding cash flow notes for over twenty years.

In addition to buying real estate notes as a private investor she has provided marketing consulting to the nation’s top institutional note buyers.

The author of several acclaimed books published by McGraw Hill and a past board member of the National Association of Real Estate Investors, she will wow you with her knowledge and dynamic presentation skills. Read more

Note Investor Interview with W. J. Mencarow Founder of Paper Source Online

Would you like to meet a note buyer that has been investing in private mortgages since 1981?

Well I’m honored to introduce W. J. Mencarow, founder of the Paper Source, Inc. and the feature of this month’s Note Buyer Interview.

Bill and Alison Mencarow have been publishing The Paper Source Journal since 1987. It is both the first and longest standing newsletter in the note business.

Bill has also authored several guidebooks including “How to Get Started in Notes Without Using Your Own Funds” and been interviewed by NBC, The Wall Street Journal, and numerous media outlets.

I first met Bill at one of the note industry national conventions (something else he was the first to host)! Over the years I had the chance to explore Washington DC, Cancun, and even Alaska thanks to his events. I must also give credit to Bill for meeting Bill Clinton and the Pope (or at least a couple of guys that looked surprisingly similar…)!

Bill started in the note business during the Read more

How to Use Google Places for Your Note Business

3 Tips for getting your mortgage note business found online using Google Places and Local Maps.

When was the last time you used a phone book?

Chances are you’re more likely to use it as a booster seat or doorstop than to look up a business. Online search has quickly replaced the yellow pages. In fact many cities like Seattle are looking at requiring opt-outs for phone book delivery.

With about 65% of market share, Google is undoubtedly the “Big Daddy” of search engines and…

they’ve just made it easier for small businesses with Google Places.

Formerly known as local maps, a Google Places page provides a free listing containing contact information for your business. Google uses this information to serve up results for local search and place you as a “pin” on their maps. In fact it’s not unusual to see a Google Places page showing higher in the rankings than a company’s own website.

Steps for Using Google Places for Your Note Business

1. Claim your Note Buyer Listing Read more

Free Financial Calculator for Cash Flow Notes!

Is the best financial calculator now free?

If you struggle with calculating cash flow notes on the HP12C , HP10B, or the Texas Instrument BAII then you will want to check out this great offer!

Advanced Seller Data Services (ASDS), a leading provider of marketing lists for seller carried notes, has released a series of free financial tools for note brokers and note buyers.

Here’s a sneak peak at the power behind these calculators from a recent ASDS press release:

Tool #1 – A Financial Calculator to Find the Missing Variable in a Cash Flow Note!

• Greater ease of use and faster than the HP12C or other calculators.
• Allows user to instantaneously confirm information provided by note seller is correct.
• Provides user with feedback on which variable is being solved.
• Gives warning message and possible solutions when inputted variables cannot compute correctly.
• An automatic note quote system to quickly calculate full and partial bids as determined by the user.
• A Net Sum calculator to find the present value of a series of partial payments.

Tool #2 – A “Simple” Amortization Calculator

• Creates an amortization table for straight line mortgages.
• Calculates schedule on exact day or 360 day basis.
• Includes columns to track loan payments and reserves.
• Calculates loan payment for common loan terms for any loan amount and interest rate.

Tool #3 – A “Complex” Amortization Calculator for Irregular Cash Flows

• Allows user to input in any date order:

8 interest rate changes and

12 payment amount changes and

12 bump payments

• Calculates schedule on exact day or 360 day basis.
• Includes columns to track loan payments and reserves.
• Calculates repayment amount for common loan terms.

The only requirement to run the programs is Excel 2007 or higher installed on your computer. An Excel 2003 version is also available by request.

Programming the Excel worksheets with financial calculations is similar to the exclusive proprietary programming ASDS uses to identify seller carry back notes out of millions of recorded documents each year.

“Creating these programs to help our customers become more profitable was a natural progression of the services we offer” said Scott Arpan, owner of ASDS.

You’ll be happy to know that ASDS is committed to keeping these programs available to note brokers and note buyers at no cost.  The motivation?  They would like to have you keep coming back to the site and consider their list services for finding cash flow notes.

These tools may be downloaded for free at http://notesellerlist.com/Free_Financial_Calculators.html.

I’ve already downloaded my version and have been putting it to the test with these examples from Buying Mortgage Notes: 7 Tips for Calculating Cash Flow Notes!  You’ll be glad to know they are matching to the penny!

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