Do you need some level of experience or education to succeed in the note industry?

Do you need a specific college or trade degree?

Can you learn as you go?

Can you find great information at a reasonable cost?

When I look around the note industry I see a variety of backgrounds.

Sure, there are a couple of people with impressive college degrees but there are just as many people (if not more) that come from less than expected roots.

I myself never finished college.

I took a ton of classes, and I suspect if I ever pulled out all my transcripts there is a degree in there somewhere – but certainly not one in finance.

No, a formal education is not a requirement for success, but being educated is.

Let me explain.

I learned about the note industry during one week in a real estate investment course.

I learned about creating notes, selling notes, brokering notes, and, my favorite part, the financial calculator.

As I have said before, I was hooked.

The idea of buying and selling mortgage notes – using none of my own money – could not have been anymore attractive to someone who, well… didn’t have much money.

But that didn’t mean that I didn’t need some form of education.

A great note business starts with great training.

In my case I learned in a class. Well, several of them really. I watched presentations and read everything I could.

I won’t say the cliché, “It was tougher back then” – but it was.

Access to information today is so much more prevalent that it ever was. You need only open up the Internet and search for whatever you like.

Of course, there is a downside…

There is a lot of misinformation out there. There is also a lot of garbage.

The Internet does not seem to have a way to successfully separate fact from fiction, real expectation from false promises, real knowledge from hype.

When we created NoteInvetor.com I can’t say that we ever really knew it would get as big as it has.

Sure, we knew that we were going to provide quality content. We knew that we would hold nothing back and find the best contributing authors.

So what was the secret?

Education.

NoteInvestor.com simply helped people find needed information – at every level.

Whether they were on the site to learn more about brokering notes, selling notes, or investing in notes – we were going to help them.

Later we took the education aspect a big step forward when we created the Finding Cash Flow Notes training.

The course is nothing like any other you may have seen in the note business.

The entire course is online.

Over 40 videos. Downloadable marketing materials. Lots of real world content.

In addition, you can actually ask questions IN the training – and the answers come from us (not someone paid to sit in the training and answer questions.

If you have not checked out the free videos from the training, go here.

The success of the course points to one overall objective that I brought up in the beginning of this article.

I believe that anyone, yes anyone, can succeed in the note industry if they learn what to do and follow a plan.

Everyone has different core strengths. Some people love talking in front of a crowd – others hate it. The note industry offers so many different ways to market for notes; one or more methods are sure to be a good fit for your personality.

But, before anything else, learn as much about the industry as possible.

Your past is not what dictates your level of success – the amount you learn about the industry today does.

The good news is that you are in control!

Pulled from the archives, this Burn to Learn war story seems timely.  Why? There seems to be an influx of deals recently where property insurance is holding up closing. Nothing is a better teacher than real life experience, but perhaps I can spare you from getting burned.

The Note and Trust Deed Investment

It was a 1940s bungalow style home in a small Oregon town that was occupied by the buyer. The payer had very poor credit and medical collections however; a strong verifiable pay history and a fair amount of equity offset credit. Here’s a quick recap:

Our offer of $31,250 was accepted and we proceeded using standard due diligence procedures. We reviewed copies of documents, a title commitment, the pay history/account verification from the third-party servicing agent and a new appraisal reflecting good property condition and known value increases for the area resulting in a fair market value of $60,000 (back when that sort of appreciation was the norm). We prepared for closing and required standard proof of hazard insurance. The seller returned the document package along with the insurance information. We called to verify coverage, which was verbally confirmed by the agent, and we authorized the wire transfer to the seller.

Now it gets interesting.

On the day the wire transfer was authorized at the bank (a Friday) we received a return call from the insurance company stating they were in error and due to non-payment the hazard insurance policy was no longer in effect. This was brought to my attention by our closer and we attempted to contact the buyer but were not immediately successful.

During my 10 years of corporate experience and at that time two years of personal investment experience, I had seen thousands of accounts purchased without insurance verification and felt the risk was nominal. I decided to proceed and did not pull the wire at the bank. We sent the standard letter to the buyer to clarify the insurance issue and planned to force place insurance if sufficient proof was not provided.

Things seemed in order until we were contacted by an adjoining property owner the next week making a $10,000 “as-is” offer to purchase the “lot” next to their $250,000 home.

Guess what? The house on which we had purchased the note burned down over the weekend and we were left with nothing more than a lot, a shell of a building, and debris as security.

We called the fire department (to verify the date of the fire and the condition of the property), ordered a property inspection, contacted the appraiser to obtain a land only value ($24,000 – $29,000), and traced the buyer whose home phone was no longer in operation.

Once we made contact with the buyer we confirmed our fears finding he did not have insurance as the insurance premium money had been used to purchase prescriptions for his recently deceased wife who did not have health insurance coverage during her fight with cancer. He was a self-employed car mechanic and his income was currently down. It was a sad situation and initially the buyer seemed cooperative and wanted to continue payments until he could sort out his financial affairs. He was interested in placing a mobile home on the lot and hoped we would help finance it. We were happy to explore the possibility and asked for a show of good faith in the form of current payments during the interim. Unfortunately the buyer’s financial situation declined, payments were never received and we ended up holding a Deed in Lieu of Foreclosure which we waited to exercise until we knew our final course of action. We attempted to sell the lot but realized most new building activity was being done on small tracts of land outside the city limits.

Will that be a single or a double?

The neighbor was a local businessman who owned a nicer home in this small bedroom community of mixed homes. He was unhappy with the condition of his neighboring lot and increased his offer from $10,000 – $15,000. We explained it was appraised for $24,000 – $29,000 and were not ready to take such a loss but did offer owner financing if we came to an agreeable price. He did not desire financing and was concerned over the view.

Understanding his motivation, we explained we were considering the placement of a used single wide mobile home on the lot (1969 or newer according to zoning requirements) which we would offer to a new buyer with owner financing if we were unable to sell the property as a lot. We waited (or I should say sweated) the situation out and the neighbor offered a cash purchase price of $23,000 provided the lot was cleaned. Initial estimates for clearing the lot had come between $5,000 to $7,000.

Let’s burn to learn…

We contacted the fire department regarding their “Burn to Learn” program. The fire department agreed to arrange a practice drill on the property resulting in a complete burn of the remaining structure and approximately 95% of the debris. The remaining debris could be hauled away at a nominal expense. We accepted the neighbor’s offer resulting in a loss after expenses of approximately $10,000. The transaction closed and I was never so relieved to have lost “only” $10,000.

So, what did we learn moving from note brokering to note buying?

1. Don’t be rushed or pressured into making investment decisions

2. Perform a verbal debt verification or payer estoppel with the purchaser even if the account is serviced through a third party servicer.

3. Require current insurance at closing even if the seller has to pay and obtain insurance on the buyer’s behalf from the note proceeds.

4.  Creative thinking is required to buy and hold private mortgage notes.

Note Investors Know It’s Not Just a Fluke

If you think this sort of situation is a once in a lifetime bout of bad luck then think again.  A few years later we were ready to fund on an Alabama note that had a current insurance declaration page in the file. Upon calling the insurance company we found the buyer had not kept their premiums current and coverage had lapsed. We delayed the closing and required proof of current insurance prior to funding.

We called to follow-up several days later only to be told the house had burned down the night before!

It was another sad story but a good reminder of why investors require proof of insurance coverage at closing and during the life of the account.

Wondering How to Buy Mortgage Notes? We share the good, bad, and the ugly in our Finding Cash Flow Notes Online Training.

Imagine your marketing efforts duplicated to help you get more note deals.

Think about it. A single effort on your part is now reaching a multitude of people – all getting your message.

Would you be in?

If you were like most people (and me), you would say, “Yes, sign my up!” in a second.

The fact of the matter is we are not talking about gene splicing or genetic surgery. Nope, we are talking about something that all successful note professionals know:

You MUST leverage your Note Broker marketing efforts!

But How?

Replicating your marketing efforts may sound easier than it is, but the true solution to your problem may surprise you.

But first, let’s back up for just a minute and review two tried and true note marketing methods.

After over 20 years in the note industry I can tell you that the majority of your time should be spent marketing (i.e.: looking for deals). By “majority,” I mean 80% of your time.

Years ago, in my 500 square foot apartment someone gave me some great advice.

“It doesn’t matter how good you are at quoting deals or who you know in the Note Buying world. If your phone doesn’t ring, none of it matters.”

That is just as true today as it was then.

You need to get the phone to ring.

So, how do you do it?

You could go door-to-door; hoping the person that answers the door has a note.

Of course that would be a horrible use of time.

So the next step is to mail to a bunch of people using a list of seller financed note holders from the county recordings. It costs money, but you save time. Your message still gets “door-to-door” without you physically having to be there.

Now it’s time to address the “cost.”

Mailing is expensive – but you do reach a lot of people. (See how that pro and con thing works?)

Great marketing is a constant balance between efficiency and cost. Sometimes it is a tightrope walk to get them both. Finding that balance is key – you keep looking for better methods.

Another option to direct mail might be a print advertisement. (Not the big newspaper in your town. I am talking about the want ad type papers you see at grocery stores that are usually pitching ads, garage sales, free kittens, etc.)

These Shopper Paper ads are easier and often cheaper than direct mail, but not as targeted.

The person you are trying to reach (the note seller) has to pick up the paper AND read your ad.

One key in marketing for today’s deals is leveraging your efforts. In both cases, it was a lot better use of your time than going door-to-door looking for note sellers.

I am not going to suggest both direct mail and print ads are a thing of the past. Hardly. Both work in certain instances. But they both come with a significant expense.

For true leveraging today, Note Brokers can turn to Referrals and the Internet.

Referral Marketing

Many people ignore cultivating a referral network. I think, for the most part, it is because typically there are no immediate results. It takes time to cultivate relationships.

Referrals are people who, in the future, can refer you more than one deal. Referrers can be anyone, but typically in the note industry great referral sources are CPA’s, Financial Planners, Probate Attorneys, Bankruptcy attorneys, Land Developers, Builders, Realtors, etc., etc.

If someone else is out there talking about your services, you have essentially “replicated” yourself. (See where I am going here?)

We have also bought notes  from a couple of “bird dogs” – people who found deals for us in their area. They were out networking and marketing for notes on a referral basis…and we only paid them when we purchased the deal. My marketing efforts were duplicated and working for me, in my absence.

How you compensate referrals is a whole other subject. Some were paid a flat fee; some were paid a percentage of the deal.

Some other referral sources were not really allowed to take a fee (conflict of interest with their clients they were helping). For those people you can usually send a thank you basket or a gift certificate for dinner somewhere.

Online Marketing

Dollar for dollar, there may never be a more efficient, replicable, lower cost form of marketing than the Internet…and it works 24 hours a day, 7 days a week.

My web team can build a full-blown note site in a matter of hours. Matter of fact, we even created turnkey web sites for note buyers and consultants complete with content and an online submission form.

With the Internet, I not only replicate myself, I am now working 24 hours a day.

On a side note, you would be amazed at the number of people who come to a website at 1:30am. Don’t know about you, but I certainly wouldn’t be answering the office phone at that hour.

Perhaps one of the best things about websites is that they are no longer expensive and complex. You can build them yourself. If you don’t want to build it, you can have someone else do it for under $400.

But there is something else that changed the Internet world…WordPress.

WordPress is simply a foundation for a website. It’s estimated that around 25% of all sites run WordPress and I would guess that percentage is over 50% for the new sites being built on the Internet. I don’t know that for certain, just a guess.

The best part is that with the advent of WordPress, you can finally go into your site, make changes, and have them appear on the site they way you hoped – no more paying a programmer $50 every time you want to change something.

If you want more info, check out this archived Webinar on “7 Steps for Building Your Business Online.” It is pre-recorded and you can see it now here.

Ok, maybe “leveraging” is a better term.

For now there is no lab in Sweden that will replicate you.

I hate to break the news, but it is all you.

The good news is that you can leverage your efforts AS IF you were more than one person.

One action equals… multiple results. The Internet Websites and Referral sources will pave the way towards more efficient marketing and better results.

Search long enough and you will come across the cash flow industry – or in this case – specifically the segment of the industry where people by and sell private mortgage notes.

Let’s take a minute and separate some of the hype from the facts and try to portray a typical “day in the life” of a note broker to help you decide if this business might be a good fit for you.

1. Note brokering is a business.

First off, the note business is like any other business, it takes work. Sure, some people will tell you that we are very well compensated for the work we do, but I suspect so are doctors and garbage men. In our case we are paid for “what” we know (how to buy notes) and “whom” we know (who to sell them to).

I suspect most people are not afraid to work – they just want fair compensation for the work they do.

However, there are plenty of people out there looking to “get-rich-quick.” THIS IS NOT IT! If you are looking for overnight wealth, buy a lottery ticket.

The note brokering business can be a very financially rewarding business. Many people started in the industry brokering notes and eventually became note investors! The opportunity is there – you just need to learn from those that have already succeeded.

2. Most of the business is marketing.

It is true; there are thousands and thousands of note deals out there. But they are not going to land on your desk without effort on your side.

80% of your time will be spent looking for notes.

The good news is there are plenty of things you can do to help the people with notes find you (websites, direct mail, networking, etc.).

Once you have a prospective deal, you have to fill out a worksheet and do some basic evaluations to determine which investor to send the deal to. Most of the time, once the deal is approved the Funder will do most (if not all) of the closing work.

Funders are good at closing deals. It is what they do. They don’t make a dime until the deal closes – so why would you want to spend your time doing it? You need to be out looking for more deals!

Additionally, you don’t have to be the most outgoing person in the world to succeed in the note business, but you do need to market your business.

If you are comfortable talking in groups or to strangers, you can actively market (give speeches, make presentations, etc.). If you are not comfortable with that, you can passively market (websites, flyers, direct mail, etc.). Both methods can yield great results.

There is a marketing method for every person – but every person in the note business must spend most of their time marketing.

3. You need money or time.

There are some people who come into the industry with no money for marketing and no time to invest. These people will typically fail.

Not because they are not good people. Heck, they might be wonderful people, but remember, MOST of this business is finding deals – and you need either money or time to do just that!

If you have some money to invest, there are a multitude of marketing methods to help you get deals (direct mail, targeted ads, websites). These methods often target the note holder directly.

If you have no money to invest in your business, but you have time, there are some great ways to still find deals (reverse ad marketing, networking, referral based marketing, posting free ads).

If you have no time and no money to invest, the note industry is probably not the best place for you to be – at least right now.

4. Learn the shortcuts.

One great thing about this industry is that some of the best note buyers and brokers in the world have shared information. Many of them have shared great strategies, tips, and insights that can save you a lot of time and money in the long run.

Here is a quick list of programs and/or materials you are going to want to check out.

Finding Cash Flow Notes – The number one online training of its kind. With over 40 videos and countless downloadable marketing materials you can use today, this is THE course to start with.

Note Websites – These turnkey note websites can have your online presence up and running in less than 48 hours – including content and online note submission forms!

Note Investor Directory – A list of Who’s Who when it comes to owner financed note investing. These are the people who buy notes – and you are going to want to know who they are!

Every Single Profitable Note Marketing Idea In the World (Almost)! – Great quick read that discusses a variety of way to find notes.

In the end…

Only you can decide if the note industry is right for you.

If you are like many before you, you may find it to be a life-changing move that forever improves your financial future.

Ok, that might have sounded a little rude – that is not my intent.

I could understand someone saying they are having trouble finding “buyable” notes. But even with a small amount of marketing, and dumb luck, you should be seeing some notes.

When I first started my mortgage note business in a 500 square foot apartment most of what I saw in the beginning was junk. It took some tweaking to learn how to find better quality notes.

I admit, that “tweaking” process took awhile. At the risk of sounding like my grandfather, “you don’t know how good you have it now.”

If you are having trouble finding notes, here are five reasons that no one even knows you buy notes.

1. You have done nothing

This is my favorite. Someone contacts me and says that they have not found any notes. When I ask them what they have been doing to find notes they say, well, “nothing.”

Just knowing how to buy notes doesn’t mean people can find you. I always figure about 80% of note business success lies in the marketing. If you do nothing…nothing will happen. Why does that surprise people?

2. You have not told the right people

Note buying is not like selling magnets or the latest health drink. Limiting your marketing to family and friends will most likely not get you very far.

You need to tell professionals what you do. People like Real Estate agents, CPA’s, Bankers, Loan Officers, etc. These are people who are more likely to see notes on a regular basis than your mom.

3. You are not social

By “social” I don’t mean throwing cocktail parties and going to the Kentucky Derby. No I mean you are not taking advantage of all the groups on social media. Facebook, LinkedIn, Twitter, Google+ Circles.

Anything you can do to get your name out there helps.

4. Your website sucks

I have talked about this one before. In today’s day and age, you need to have some sort of web presence. The “free” website that you got off the Internet won’t cut it. You need something that looks professional – I mean you are going to handle someone’s money (or, at the very least, help them get some money for their note). You need to look the part.

Check out these Note Buyer Sites for some ideas for turn-key sites made just for note buyers.

5. You keep trying to go your own way

Look, I learned these lessons years ago. For the most part, there are only so many ways to find notes. Don’t keep trying to re-invent the wheel.

There are proven methods to finding notes – that have been used for decades – and still used today. Why would you not stick with what works?

Looking for ideas? Check out all the free articles here at NoteInvestor.com or step up and get our best marketing methods (with all the materials you can just add your name to) in the Finding Cash Flow Notes Training.

At the end of the day, it is still (just) a business.

The note business is just that. A business. It is not rocket science, but it does take work. The good news is that there is an unprecedented about of resources at your disposal.

In some ways it is not the amount of effort you put into it…but the right effort.

Course the usual short answer is, “Well, depends on how much I can get for it.” – In reality, you might want to delve a bit deeper.

Ask yourself the following five questions when deciding to sell.

Did you want to carry back the note in the first place?

Many people never wanted to become note holders to begin with. They may have taken back the note to facilitate a buyer that had less than perfect credit. They may have held a note because offering owner financing was the only way to get people to notice their house for sale in a flooded market.

Whatever the reason for the note creation, if it was not your “first choice,” you may want to consider selling.

Did you create the promissory note for an investment?

Many people carry back notes for investment purposes – and why wouldn’t they? You can set a very attractive yield – much better than your local bank money-market account – AND have the whole thing backed by real estate.

Not only is it backed by real estate, it is backed by real estate that you are VERY familiar with…it used to be yours!

Remember, if you don’t need the money now or don’t have a place to invest for a higher return, keeping that money working for you can be a great plan.

Do you need all the money?

This may sound new to some of you, but you may not need to sell the entire note.

Notes are purchased at a discount. It is not really a closely guarded secret – the amount of “discount” is a combination of several variables such value of property, interest rate of the note, payers credit, location, seasoning.

For example, if you wrote a note for a low interest rate, say 4%, you will be looking at a greater discount. 4% is not a very attractive return for the average investor looking to buy notes.

But, all is not lost.

If you have a note that is faced with a higher discount, it may be better to only sell SOME of the payments.

Say you have 240 months left on your note. You may elect to sell only 120 or even 60 payments. You will get a lump sum now AND you will get the note back again later. You can then sell more payments or go back to receiving the monthly amount.

This type of sale is called a “partial” and it can be a great way to minimize you discount.

Are you ok with the hassle?

I’m not going to sugar coat it, there are some things that are just a pain.

For example, if you are receiving note payments, you should be reporting them to the IRA annually for the payer (they can use the interest as a tax deduction).

You also want to keep track of insurance and make sure you are the primary beneficiary until such time as the note is paid off.

There are also real estate taxes to be certain the buyer is keeping current.

And, of course, you are going to have to collect a payment each month. Some payers are great and always on time. Others are…well… not so much on time (if at all).

Owning a note is not an overly taxing set of procedures, but it will take some of your time. Perhaps selling the note – even at a discount – is worth it to not deal with any of those hassles again.

Did something better come along?

Got a hot tip on a stock going through the roof? See a chance to invest in a business or real estate? Maybe you just want some money to do something you have never done before.

Look it is YOUR note and YOUR money; don’t let anyone tell you differently. You might want to sell for the simple fact of having a lump sum of money affords you to do things you can’t do with small payments trickling in every month.

In the end…

Most people sell a note for one of three reasons.

1. They need to get rid of some bills that have been piling up.

2. They want to buy something fun (a boat, car, cruise, or travel).

3. They have a new investment opportunity.

WHY you want to sell your note is your business. But keep in mind that one, you don’t’ need to sell the whole note, and two, your best “investment” just might be to keep it.

Better yet, does it even matter?

A recent subscriber’s questions are answered.

“I am getting confused with – what is a private mortgage note and a seller finance note.

They both seem the same.

A private mortgage note is a note that someone is holding on what was sold.

A seller finance note sounds like the same thing to me – a note on property sold and is holding the note?

What about a discount mortgage note ?

A defaulted  mortgage note – is like it sounds – a note that a person has stopped paying.

I am sure there is a logical explanation to these questions and when you have time could you please send an explanation to a newbie?

Thanks so much!”

New Note Broker

Mortgage Note Definitions

At the top level you have “mortgage notes”. The note is the IOU or promise to pay and the mortgage is a lien against the real estate that serves as security for payment (or nonpayment) of the note.

A mortgage note could be a traditional bank loan, a private party loan, or a seller financed transaction.

Private Mortgage Notes

The term “private mortgage note” is used when the mortgagee or person receiving payments is a private entity or individual.

This could refer to a seller financed transaction OR a mortgage loan made by an individual or private party (somebody besides the traditional banks and mortgage companies). Many self-directed IRAs are a source of private mortgage notes that may (or may not) involve seller financing.

Seller Financed Notes

A “seller-financed note” is a specific type of transaction involving owner financing.

This is created when the owner of the property sells to a purchaser and allows that buyer to make payments to them instead of getting a loan from a mortgage company.

The consideration for the note was the sale of the property. Cash doesn’t change hands in the amount of the seller financed note.

With a loan origination either the bank, mortgage company, or private lender would send cash in the form of a wire or cashier’s check to closing, which is then used to pay the seller for the purchase price.

Other common terms tied to seller financing are owner financing, owner will carry, seller carry back, and installment sale.

Discounted Mortgage Notes

A “discounted mortgage note” could be any type of note that is sold for less than the remaining principal balance or at a discount.

For years banks and mortgage companies rarely sold “paper” they originated at a discount. They wanted “par” (100% of balance) or “premium” (over 100% of balance) pricing… and the market would pay it. Then came the sub prime meltdown and delinquencies. Now many are selling individual notes or portfolios they hold at a discount.

So discounted mortgage notes could come from any source – banks, private entities, or seller financing.

The same can be said of defaulted, delinquent, or non-performing mortgage notes where the buyer is behind on payments, taxes, insurance or any other provision of the note and mortgage.

Deeds of Trust and Contracts for Deed

While we have been discussing notes and mortgages the general terms could also apply to a note and “deed of trust”. The trust deed is more common in many western states.  While similar to a mortgage, there are differences in the foreclosure process.

There are also “Real Estate Contracts” or “Contracts for Deed” where the buyer does not receive the Warranty Deed to the property until they have paid the seller financed debt in full. It’s safe to say that any Contract for Deed would be considered a type of seller financing (even if it was the bank that sold a piece of REO on contract). For more information read the article: What is a Real Estate Contract?

Getting To The True Definition

You will find that often people use the terms interchangeably. There can also be regional differences. So rather than relying on what someone calls a note it is better to ask a few questions.

When getting to know the seller and talking about the property, I like to ask:

“Did you live in the property long before selling it?

The answer will provide valuable clues that can identify how the note came into existence and set the course for follow-up questions. You are trying to figure out:

• Was this a loan origination or a seller financed note?
• If seller financed, did the owner live in the property as a personal residence or was it an investment property?
• If an investment property, how long did they hold it?  Did the buyer possibly rent first or was it a fix and flip?
• Is creating notes something the note holder does regularly (say more than 3 times per year)?

But you don’t want to interrogate the seller so starting with a simple friendly question can start the conversation.

Why Does This Even Matter?

There are investors that will only purchase seller financed notes while others will consider loan originated paper. The rules, regulations, and documentation that apply to each can be different so it is important to make this distinction when gathering information for quoting purposes.

The finding cash flow notes training and the investor directory primarily deal with performing seller financed notes.  Directory listings for delinquent note buyers have also been included since these are prevalent in the current market.

Noteworthy Summit on April 18-20, 2013 in Dallas, TX

Here’s a quick recap of the upcoming event:

One, we are going to be personally presenting at this mid-year summit for Note Brokers, Buyers, and Investors.

Two, this event is sure to be a big success, so if you are anywhere in the area, you are going to want to attend. If you are not in the area, you now have a reason to be there!

Three, be one of the first and save $100. 

We just found out that the first 100 people who sign up using this link will save $100 on the entry ticket. Just use code ‘DISCOUNT100′

Frankly, this is going to be a great event, and you can walk away with some solid content to help your business.

See you in Dallas!

All the best,

Fred and Tracy

P.S. We have been assured, this is not some “pitch fest”. We are committed to bringing you solid content and here is a sneak peek of the topics we’ll personally be covering:

7 Steps for Marketing Your Note Business Online – Fred Rewey

Description: Want to market your note business online but don’t know where to start? Looking to increase your online presence? Wondering how to set up your note business to maximize your note-finding efforts?

What if you could learn directly from someone that has been buying notes online for over 15 years!

Discover how NoteInvestor.com reached the #1 position in online search (out of 110 million results) directly from one of its creators, Fred Rewey.

In this candid session, Fred shares with you how to create your own winning step-by-step plan to finding notes on the Internet (or better yet, have notes FIND YOU). What simple strategies get results and what to avoid at all costs!

Anyone interested in finding notes in 2013 and beyond is going to want to see this session!

Looking For Notes In All The Right Places! – Tracy Z Rewey

Description: Let’s face it, every so-called note expert has some fool-proof system for finding notes. But in reality only a small handful of players have nearly 20 years in the business and proven methods that yield results in today’s competitive market.

Tracy Z will be unveiling the myths and facts behind some of the most talked about note marketing methods including direct mail, ads, online marketing, social media, and networking. Knowing this information can be the difference between success or failure.

Tracy will also share how she saved over $5,000 a month in marketing expenses using some of the very strategies she will show you in this session.

This is a solid no holds barred learning session – so bring a blank notebook and an extra pen.

To Register For the NoteWorthy Summit Go Here now —-> Quick Link

Remember, use code ‘DISCOUNT100′ to save $100

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Email: brokerdesk@fnba.com

As many of you know, Fred and I are a house divided when it comes to…

 Choosing the Best Financial Calculator.

Fred likes the Texas Instrument Financial Analyst and I am a die-hard HP12C user.  Recently a fellow HP calculator fan read that past article and wrote in with some great information.

In the process I found out my calculator might be dating me a bit.

Hello Tracy,

I know you are a big fan of the HP 12c financial calculator.

I have used the HP 12c for years, but I also use the 17bII+ financial calculator. It has the HP Solve function, which is an equation solver that allows you to store equations and creates menus for them.

I have some information that you might be interested in.

Quite a few long-time users have asked me about changes on the HP 12c. Some of them have replaced their older models with the new HP 12c.

Some were a little disappointed and some were not.

The New HP 12C Calculator

Hewlett-Packard has upgraded their outdated processor.

This is not well-known by people, until they actually use the new model, because HP did not advertise or inform anyone about the big change.

I guess HP was worried about upsetting some of their loyal and long-time users.

On the new model 12c, you can now perform calculations and get your answers in 2 seconds. That’s right; you no longer have to wait 1-2 minutes for the machine to crank out your answers.

Many people have asked me why HP made the change to a faster processor. The manufacture in China actually made the change.

The manufacturer told HP it was no longer cost effective to produce the old processor. Also, the foundry that had produced the old processor told them they could no longer manufacturer the necessary chips, having moved on to making higher-density chips.

The one question that I’m often asked is: “How do I know if I’m buying the early, later, or newer model 12c?”

A great question, please keep reading and discover the answer.

Buying the New HP 12C

There are retail and online stores that still carry the later models (not the early model), and if you really want one, then you should be able to find one.

However, the early or original model 12c is very hard to find, except for the used ones that you find on e-bay. Many of the stores are depleting their inventories of the later model 12c, which had the slow processor.

The HP website is showing the later 12c, but they still may be selling the new HP 12c also. Therefore, you need to be careful when you buy, and make sure you are getting what you paid for.

If you want the newer and faster 12c, then you must be extremely careful when you buy one. It’s possible HP and other retailers and online stores may ship you the later 12c instead of the new and faster HP 12c.

The companies are trying to move their excess inventory, and they are also banking on the fact that many consumers don’t know the difference.

However, the readers of this article will now be armed with knowledge, and as they say, “Knowledge is Power”.

However, “Caveat Emptor” still applies. (Buyer Beware)

How Can You Tell the New HP 12C From the Early or Later 12C?

Here’s how to tell the difference:

• Early Model 12c – .75 inch (2 cm) wide battery door (3 batteries)
• Later Model 12c – 1 inch (2.6 cm) wide battery door (1 battery)
• New Model 12c – 2.25 inch double wide battery door (2 batteries)

When you buy the HP 12c calculator it will be wrapped in a hard plastic covering. So, make sure you can see the entire plastic covering before you buy it.

Look at the top of the calculator that’s inside the plastic covering.

• If the battery door is SMALL, then you have the early HP-12c

• If the battery door is MIDDLE WIDE, then you have the later HP-12c

• If the battery door is DOUBLE WIDE, then you have the new HP-12c

I personally like the new and faster HP 12c, but the unit is not as well-made as the early model 12c, which had double injection molding on the keys.

According to engineers, the speed is about 20 times faster than the early model 12c or later model 12c. However, the new HP 12c lacks the deep rich gold that was on the early model 12c.

Below, you will find a link to an official authorized reseller of HP products. Click the link, then click product index, and you’ll see the HP 12c battery doors at the top of the page.

www.samsoncables.com

This company specializes in HP calculators and accessories.

The company sells 3 different types of replacement battery doors for the HP 12c calculators. You can check out your own 12c battery door, or if you need one, buy one of the replacement battery doors.

The New HP 10BII+ Calculator

• Early Model 10b (1987)
• Later Model 10bll (2003)
• Later Model 10bll (2006)
• New Model 10bll+ (2011)

The 10bll you have posted on noteinvestor.com is an outdated model.

The 10bll on your website was cheap and made of plastic, and this model created a huge backlash across the country from professors, high school and college students, and other teaching professionals.

Therefore, HP decided to discontinue the 10bll (plastic) after only 3-4 years on the market. Then they released a totally redesigned and better built 10bll financial calculator.

This time, HP got it right. However, the plastic model 10bll was made to cut costs. HP tried to cut costs, reduce the quality, and make cheap calculators, but the public revolted.

In 2005, The Hewlett-Packard Board of Directors elected a new CEO for the company. After the management change, HP went back to building better financial calculators. In 2011, HP came out with the new 10bll+ calculator, which is being sold in most office supply and retail stores today. Although, Amazon, and a few other online retailers still have the redesigned 10bll model that was made in 2006.

Robert Shiblom

After reading this email I had to take off my back cover to see how many batteries I had – one or two.  (It’s been awhile since I changed them.) Well to my surprise I had three!  So after a search of the HP12C options on Amazon and a few friendly email exchanges with Robert I found out I have the really old version.  I’m pretty sure I acquired this calculator about 1988, which must be getting close to antique status.

There’s an App For That

Now before you think I am totally in the dark ages I’d like to add that I also use the HP12C App on my iPhone and iPad.  This is really handy when you are traveling as its one less thing to bring.  My only beef is that the buttons on the App are easy to get wrong.

When I need to physically print amortization schedules or run a varied cash flow I can also turn to the Tvalue software.

But at the end of the day, I prefer the tactile feel of those raised buttons. It is a familiar friend that I could use blindfolded. (Well at least the top row of keys on the left.) So when I’m in the office that HP12C is getting daily use.  Yes, for over 20 years.

I know my vintage version of the HP12C takes a little longer to process.  But while that little “running” notice is on the screen it gives me time to think about the deal outside the pure numbers.  As a good friend and business note investor taught me 0% of 20% is still zero and don’t get taken in by the pure yield calculation. You have to collect on that debt to earn your return!

So thanks to Mr. Shiblom for sharing this information (and I forgive him for inadvertently making me feel old).  I got to know my trusty HP12C a little bit better, realized I missed sending a card in celebration of its 30th anniversary in 2011,  and discovered there was a calculator club dedicated in its honor.

Now I want to hear from you!  What financial calculator do you turn to?  Please leave a comment below!

If you enjoyed this article you may also like Buying Mortgage Notes: 7 Tips For Calculating Cash Flow Notes.

P.S. After sharing this article on Google+ I was invited to join a group for geeks.  Maybe I should change the article title to “Does this financial calculator article make me look like a geek?”