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

Building a Winning Cash Flow Business Website Video

Wondering what makes a winning website for the cash flow business?

Watch this video walk-through to answer these important questions for finding cash flow notes online:

• Why should I bother with having a website?
• What is the best engine for running a site?
• What should my website say?
• How do I get potential cash flow note sellers to contact me?
• Where can I find an affordable website for my cash flow business?
• How can I keep control and update my site?

If you would like to view the demo web sites shown in the video just click here:

Note Buyer Sites Demo

When the link opens just click on any of the photos or site names to demo each website live.

Note Buyer Interview With Americus Financial

We are pleased to bring you this Note Buyer interview with Mark Donoghue of Americus Financial Group, a national note buying company located in Spokane, WA.

What is the current focus of Americus Financial Group?

To maintain our reputation as the recognized leader in the purchasing of real estate notes nationwide. In addition, with our knowledge and experience we strive to assure that each transaction is fast, satisfying, and stress-free.

How did you get your start in the note business?

Buying and selling real estate in the mid 80’s. I was introduced to seller-financed real estate early in my real estate career and in 1988 was hired to purchase real estate receivables, structured settlements and lotteries for a multi-billion dollar financial services corporation until my departure in 2003 to start Americus Financial Group.

What unique benefits does your note buying company provide?

We do ALL our own underwriting, pay for ALL appraisals and we are the only investor to my knowledge that does not require the servicing to be released.

What type of notes or transactions will your company consider funding?

Each transaction (as long as it is secured by real estate) is reviewed based on the following criteria in order:

1. Equity
2. Seasoning
3. Collateral Type (SFR, Commercial, Land)
4. Credit

What type of note deals would just waste your time?

Simultaneous closings and “flips”

How do you handle commissions to note brokers or consultants?

They are paid at funding (when we close the transaction). Most fees are wired to our brokers.

What advice would you give to new professionals just starting out in the note industry?

This is a vocation/profession so treat as such – educate yourself and understand that you will ultimately be rewarded with the amount of time and effort you truly put into it.

What is the most common business mistake you see people make?

Requiring and gathering too much information from the note holder before they have the transaction even under contract.

Given the current economy, have you made any changes in the way you buy mortgage notes?

Yes we have –

• As noted above, we no longer purchase simultaneous closings or flips
• We require a minimum of 20% cash equity on most note purchases.

Where can someone contact you to obtain more information?

www.AmericusBuysNotes.com

Editor’s Note:  You can also view the Americus Financial Group listing in the current edition of the Note Buyers Directory for more details!  This updated directory is available for download in the Member’s area of the Finding Cash Flow Notes Training or can be found in the bookstore.

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 Need for a Solid Note Business Website

I think we can all agree that the web is not a “fad” nor is it going anywhere in our lifetime.

I think it is also safe to say that there really is not any business on this earth that can’t directly benefit by managing a strong web presence. That of course applies to the note business!

So what stops note brokers from creating a web presence that can help them

Find Cash Flow Notes and Get More Business?

Here are a few “objections” that keep people from getting deals online.

“I am in a people business”

Sure, I get it. You like face-to-face interaction. But how are they going to find you? Are you going to work 24/7, running around every major city, diner and Starbucks trying to connect with someone who might need your services?

A website works full-time. And the best part is once it’s properly set-up and maintained it can help people find you. Not having a website for your note business is like having a car without an engine…or tires. You can sit in your garage but no one will ever see you.

“It is too hard to build a note buyer website”

No. It is too hard to build a rocket ship – websites have come a long way. Granted, it used to be really hard and really expensive. Have the time to learn it? Go for it.

Check out anything that is WordPress related…you will be surprised and pleased with the power of this platform. (Just avoid the “free” accounts and plan on hosting it yourself).

“I built a free website from my Internet provider and it sucks”

Yea, that whole “free” thing doesn’t typically work out well does it? While there are some decent free templates out there, understand it does take some savvy and time to figure out how to make it look professional.

You don’t have to spend an arm and a leg to get a professional looking site. You just need to know where to look.

“But I have Facebook”

Really, that is going to be how you plan on getting business? Hoping someone checking out your Cat Video also needs to sell a note?

Look, Facebook is a blast, and you certainly need a Fan Page for your business as a form of social proof – but don’t kid yourself into thinking that it is a true lead source.

“But I have LinkedIn”

So does my grandfather but potential leads still need to go somewhere. LinkedIn is a great place for just that, linking to other people (especially professional referral sources). But in the end, they need to go somewhere to take action and that would be your website.

“I have a site, just no traffic”

Yea, we hear that a lot. Just putting up a website is only half the picture. You need to have engaging articles and a way to collect names/prospects. You can’t just build a site and forget about it. You need to add content on a consistent basis using search engine optimization techniques (another reason Word Press is a great option).

Don’t worry; it is not like you need to write a novel or anything. Just write down your most recent conversation with a prospect. Chances are these frequently asked questions could transcend into 3-4 new articles for you.

You Decide

Frankly, you are either trying to get business or you are not. If you knew that 77% of your potential customers were going to be at your local park this Saturday, would you be there? I hope so.

Well guess what? They are all on the Internet!

According to Internet World Stats that’s the percentage people in the US that are online (and it is only growing) – so find a way to talk to them!

The Note Buyer Sites Solution

Looking for a solution that won’t break the bank? These 5 Note Buyer Sites provide a professional and effective option that will get you online in less than 72 hours. Just click the photo below to take a tour of these new sites designed just for note buyers and brokers.

Click on the banner below to check out some turn-key websites!

Note Buyer Convention by NoteWorthy Nov. 10-13, 2011

NoteWorthy is holding their 25th annual note buyer and note brokers convention November 10-13, 2011, in Las Vegas at the The Palms Casino and Resort!

The Noteworthy Convention Main Event is Friday-Sunday, November 11-13th

It offers three days of sessions focusing on building wealth and generating income with seller financing, distressed assets, creative real estate investing, private lending, and more. There will be expert panel discussions, Q&A sessions, introductions to key vendors, and networking events throughout.

They are currently offering Early Bird Registration for $399 until October 16th with several “Early Bird” Bonus Items:

1) The NoteWorthy Pre-Convention Workshop on Thursday, November 10th

A half-day workshop that runs from 1-5 pm will be taught by Note industry veterans. This ‘Making Money with Notes 101′ workshop is geared towards new note brokers or investors wanting a refresher course in the economic fundamentals of note buying.

 2) $477 in proprietary software for your note business

 3)  Discounts on additional spouse or partner tickets

The convention will focus on turning a down real estate market into a viable note business by harnessing the power of seller financing and private mortgage notes. We all know real estate investing in most markets is pretty tough right now. Here are just a few of the challenges:

• You can’t count on property appreciation anymore. In fact, most investors LOST equity in their properties over the past 3-5  years.

•  You can’t count on you (or your buyers) getting financed by the banks.

• Short sales flips are pretty much DOA.

• It’s tough to get private money for your deals.

We could go on and on, but we all know the challenges already, right?  After all, they are the reasons we are seeing seller financing making a huge comeback.

You can view the full NoteWorthy Convention Video here.

(Spoiler alert…..the secret niche is….the note business!)

Russ Dalbey Lawsuit FTC Update on Winning in the Cash Flow Business

People seeking refunds from the Russ Dalbey lawsuit may just have been scammed out of money by a different company, according to an update posted by the FTC.

(Editor’s Note: Information on the Dalbey Bankruptcy Chapter 7 Filing can be found in the update posted at the bottom of this article.)

Imagine feeling misled by an infomercial, attempting to get some money back, and losing even more hard earned dollars paid to a company claiming they could get you a refund.

Sadly, this is how the story unfolded.

Earlier this year the Federal Trade Commission and Colorado Attorney General filed a lawsuit charging Dalbey with defrauding consumers.  Feeling misled, some buyers of the “Find ‘Em, List ‘Em, and Make Money” system went in search of a refund.

Just take a look at the heartfelt comments left under the original article entitled Russ Dalbey’s Winning in the Cash Flow Business In FTC Lawsuit to see how angry and hurt many felt.

Next enters a company, RMI Associates, claiming they can help people get refunds from the Dalbey Eduction group, but first they need hundreds of dollars upfront.

This led the FTC to recently update their page on the Dalbey lawsuit with the following:

“A company named RMI Associates has been claiming it can help people get refunds from Dalbey, but first the company wants a fee of several hundred dollars. The FTC believes that this company is attempting to defraud you. Neither the FTC nor the Colorado Attorney General is working with any company. A Court has ordered RMI Associates to stop making claims that it is working with the FTC or that it has a track record of having obtained refunds for consumers.”  Source: FTC Website Update On Dalbey Lawsuit

The Colorado Attorney General also issued their own cash flow business scam alert:

PRESS RELEASE
Colorado Department of Law
Attorney General John W. Suthers

FOR IMMEDIATE RELEASE
September 21, 2011

CONTACT
Mike Saccone, Communications Director
303-866-5632

ATTORNEY GENERAL ANNOUNCES ORDER BARRING DENVER COMPANY FROM CONTINUING CONSUMER-RESTITUTION SCAM

DENVER — Colorado Attorney General John Suthers announced today that his office has obtained an order barring Denver-based RMI Associates from providing consumers with assistance in filing a consumer complaint with the state for a fee. The court order also requires that RMI Associates refund any fees it has accepted from consumers to assist them in filing a complaint with the Office of the Attorney General or the Federal Trade Commission.

The order follows an August lawsuit the state filed against RMI Associates alleging that the company claimed that in exchange for an upfront fee it could help victims recover their losses related to a federal consumer-protection lawsuit against Westminster-based Dalbey Education Institute, formerly known as American’s Note Network.

“This order underlines that consumers should never pay for a service they can obtain for free from the state,” Suthers said. “Any private business that claims a ‘special relationship’ with my office or any other state or federal consumer protection agency is misleading you. You should never pay a fee to file a consumer complaint with the state of Colorado.”

Consumers can file a complaint for free via the Office of the Attorney General’s Web site at www.coloradoattorneygeneral.gov/complaint. Consumer also can file complaints via 1-800-222-4444 or stop.fraud@state.co.us.

The Office of the Attorney General warned consumers about RMI Associates’ fraudulent services in early August after consumers began filing complaints against the company. Consumers should never contract with a company or pay any fees in order to get their complaint submitted to state or federal authorities.  Source: Colorado Attorney General Press Release

At the time of publishing this article there has not been a Court decision on the government’s lawsuit against Russ Dalbey and Winning in the Cash Flow Business. As additional information becomes available we will post updates for our readers and subscribers.

Update 12/1/11 – Dalbey Education Group Has Filed Bankruptcy

According to an article published November 16, 2011, by CBS Denver News the company owned by Russ Dalbey, Promoter of Winning in the Cash Flow Business, has filed for Chapter 7 Bankruptcy.  Here are a couple of key points from the report:

• 308 People have filed complaints with the Colorado Attorney Generals office claiming the Dalbey cash flow business was a scam.
• Gross income for Dalbey Education Institute was around $62 million in 2009, $50 million in 2010, and $21 million this year (2011).
• Assets are normally sold to pay creditors in a Chapter 7 bankruptcy after which a company basically disappears.
• The State of Colorado in conjunction with the FTC continues to pursue restitution along with fines and fees feeling these claims are not dischargable.
• Complaints were still being accepted.

The full article entitled  Company That Promised to Help People Get Rich is Broker by CBS Denver News can be found here: Dalbey Bankruptcy Filing

 

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

5 Myths About the Cash Flow Notes Business

I want to have a very candid conversation about working in the cash flow notes business.

Just what it is, how you may be part of it, and some common myths and facts.

I have been in the note industry for over 15 years. Read more

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