Note Broker Fees In The Cash Flow Business

How much can a note broker make on a deal?

That’s the short summary of a cash flow business question we received last week from a Note Broker. It was an earnest inquiry and we wanted to share our answer in this edition of Real Deals!

I was just visiting your site and wanted to know what a fair % of cash flow a broker can expect from a performing package deal?

There are buyers wanting a performing MHP package I have available with only 2-3 yrs. to maturity and the smaller lender wants to cash out.

I understand from other brokers that 25% of net is reasonable as well as a smaller finder’s fee.

What are your thoughts? I appreciate your response.

Note Broker in Arizona Read more

Calculating Cash Flow Notes and a Contest!

I have written before about how note buyers accelerate payments on cash flow notes. One such strategy was the Double Your Payment/Cut The Interest Rate in Half.

Another method is to simply go for an Early Payment With Incentive.

To this day, the following situation is still my favorite example of this method.

It was late December and we were looking at a small note with a $10,000 balance. The payment was only $132.15 per month with a 10% interest rate and 120 payments left.

The note had been purchased at a discount for $6,000, which made for a 24% anticipated return.

Not bad…but we could do better! Read more

Selling Mortgage Notes – Where Have All The Simos Gone?

This month’s owner financing real deal comes from our email inbox. Chances are this simultaneous closing question has been on your mind too.

Question: I’m a rehabber in Florida and would like to have a company Read more

Note Buyer Burns to Learn – Real Deal #160

Wonder why note investors require proof of insurance before buying notes? This Oregon cash flow note explains it all! Read more

Cash Flow Notes and 500,000 Motorcycles?

What does the world’s largest motorcycle rally have to do with cash flow notes?

Absolutely nothing!

Sometimes even note buyers need some R and R. So after riding 1300 miles (no trailers allowed) this week’s edition of Note Investor is coming to you from Sturgis, South Dakota. Read more

How to Broker Notes For Residual Income – Real Deal #159

Most cash flow notes are only sold once.

That means one deal and one finder’s fee, unless you’re lucky enough to find a seller that owner finances again! But that all changes with a partial purchase.

Here’s how one note was bought four times in Real Deal #159! Read more

What to Do When a Balloon Mortgage Payment is Due – Real Deal #158

Owner financed notes often include a balloon payment requiring the buyer to refinance in order to payoff the remaining amount due the seller.

But what options are there for notes when a balloon is due but the buyer can’t refinance? Should the seller consider extending? Read more

Land Contract Buyer Sells Without Owner’s Consent – Real Deal #157

Our readers are the best source of real deals!

Here is one seller’s request for answers when dealing with a sneaky delinquent buyer that sold without consent. Read more

How I Turned $24.80 into $15,540 on One Mobile Home Note – Real Deal #156

Welcome to Real Deals! It’s always easier to learn from real life so here we share information from actual owner financed transactions.

Sometimes it takes creative thinking to find the opportunity in a transaction. See how $24.80 was turned into $15,540 with a little time and know how. Read more

Rural Areas Depend On Owner Financing – Real Deal #155

Welcome to Real Deals!  It’s always easier to learn from real life so here we share information from actual owner financed transactions.

All across America rural communities turn to the seller carry-back to provide financing for areas that large-scale mortgage lenders have historically bypassed for larger metropolitan areas. Read more

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