NoteWorthy Industry Achievement Award Interview

Wondering what it takes to survive in the note business for 20 years?

Read our interview with NoteWorthy Newsletter!

Fred and I have been going through work and personal items in an attempt to control the ever growing amount of “stuff”.  While sorting through the memories there were a few definite keepers.  One of these was the plaque I was honored to receive from Jon Richards, founder of the NoteWorthy Newsletter.  The inscription reads:

INDUSTRY ACHIEVEMENT AWARD
Hereby bestowed this day to:

Tracy Z

NoteWorthy National Convention
June 28, 2002

For her willingness to provide leadership, guidance and steadfastness in an industry experiencing turbulent times.  Tracy would have excelled in any industry, we thank her for choosing ours.

Presented by:
NoteWorthy Newsletter
Jon Richards, Publisher

Receiving this award was a real honor. Jon was an inspiration to both Fred and me.  In fact Jon introduced the note business to Fred in the early 90′s and if it wasn’t for that the paths of our lives might never have intersected.

Later in 2009 I was asked to participate in an interview with NoteWorthy Newsletter for a series they were running on successful Note Buyers, Note Brokers, and past award recipients. The focus was how to be successful in the note business and the information is as timely now as it was then.

Interview With NoteWorthy Newsletter

(Editor’s Note: This interview was conducted with Tracy Z. Rewey in May 2009 by Clint Hinman, acting Editor of the NoteWorthy Newsletter at that time.)

Clint: How long have you been working in the note business?

Tracy: I’ve been making my living in the note business since 1988. That’s over 20 years (but if anyone asks I started when I was 12).

What led you to choose this line of work?

The flexibility and creative problem solving make the note business both fun and challenging. It provides an opportunity to work for yourself while also helping meet the needs of the note seller.

Ultimately it was the ability to harness the power of compounding interest and the time value of money that hooked me for good. I was blown away the first time I learned to run a HP12C financial calculator and finally realized WHY investors bought notes.

Tell us about the first job you ever had.

I started out like most kids eager for cash – anything that paid. I took jobs babysitting and cleaning up behind parade horses. But my first “real” job was in 1983 when I started with a local attorney’s office.

Since it was a rural area the law office handled many transactions with owner financing providing my first introduction to the note business. I learned real estate closings, title searches, servicing, and documentation. Eventually I moved to the “big city” and my position with Metropolitan’s note buying division from 1988-1997. Metropolitan provided an unmatched intensive hands-on education in the paper business.

You were part of the production team when Metropolitan was at its strongest. You went on to start your own company, Diversified Investment Services. What is your current focus from a business perspective?

A desire for financial independence led to the creation of Diversified Investment Services, Inc. in 1997. We continue to cultivate our business from a three-prong approach by developing long-term income as a private investor, immediate income as a broker, and educational materials for referral sources.

A primary focus has been adapting to the changing economic environment by developing alternative note funding sources. During the past year we have dedicated significant time and energy to providing educational resources at www.noteinvestor.com.

What was the most significant event in your life?

It was the moment I decided to be the driver rather than a passenger in my own life. To borrow a line from the movies, “You can get busy living or get busy dying!”

Who has been the greatest influence on your professional life?

That is a tough question because there are many that have contributed to the tapestry of my professional life. At Metropolitan I was thankful to both Irv Marcus and Mike Kirk for sharing their investment knowledge and believing in my abilities. My husband, Fred Rewey, has been instrumental in pushing me to embrace new challenges outside my comfort zone, including leaving the security of a corporate job to start my own business. Over the years many other greats in the industry have generously provided their expertise and insights. The willingness to share really is one of the incredible things about the note business.

What do you feel is the single most important characteristic one needs to have to be successful in the note business?

Persistence, persistence, and more persistence. Be ready to adapt and change the approach but don’t give up!

What do you see as the biggest threat to the seller-financed industry? How can we mitigate that threat?

If you had asked that question two years ago my answer probably would have been a few unscrupulous professionals bringing unreasonable regulation. However, in light of today’s economic challenges it seems the seller finance industry became too dependent on the cheap money provided through conventional funding vehicles. With the collapse of the mortgage backed securities market we must come full circle and return to the days of reliance upon independent and private investment funds.

Seller financing is helping to fill the void left in the wake of the credit crunch. As the use of owner financing increases there is a demand for note buyers to help educate the sellers and real estate professionals on the safest and most profitable methods to carry back paper.

What kinds of mistakes do you see new note brokers make? What kind of advice would you give a new broker?

The note industry is similar to most businesses. First, you need to provide a service or product that is in demand. Second, you must effectively market to get your message out to the customer. Third, you must work hard every day to meet, satisfy, and exceed the needs of your customers.

Unfortunately many new to the note business fail to treat it like a long-term business. Frequently this is first evidenced by the failure to consistently implement a proven marketing plan. Growing discouraged many give up. It comes back to persistence, persistence, and more persistence!

You and your husband Fred produced the Personal Profit Series on Notes – how would someone new to the industry benefit from this product?

From marketing and negotiations to funding and investment strategies, we share the knowledge we have gained during our 35+ years of combined experience. The Personal Profit Series allows people to avoid expensive mistakes and profit from the note business. At over 475 pages, it is the most comprehensive system dedicated to the private mortgage business. The goal is to take someone from broker to investor at a price that doesn’t break the bank. (Editor’s Note: This is now an online course entitled Finding Cash Flow Notes!)

What has been your greatest personal achievement?

The creation of a stable and nurturing family environment has been one of my greatest challenges and achievements. My path has not always taken a conventional route but I’m fortunate to have shared it with Fred, a fellow adventurer. This year our daughter is graduating and it is with a sense of wonder and satisfaction that we send her out into the world to discover her own path.

Give an example of something you do every day that contributes to your success.

Making a list of what I want to accomplish each day helps prioritize my efforts. There are always more things to finish then sufficient time to complete. A list helps keep my focus on the best place to expend energy. Oftentimes I’ll start with the least desirable task first and everything else seems seem easy after that! Envision your goals, commit, develop a plan, write it all down, and then prioritize your actions to reach the goal.

Source: NoteWorthy Newsletter 2009

The State of the Note Business

Owner Financed Note Business Increases 56% since 2008!

Why the big jump? More importantly, where is the opportunity for note brokers and note buyers?

Call it a mini “State of the Note Industry” if you Read more

Note Business Success in Five Words

We are often asked,

“How can I make it in the note business?”

That usually prompts us to ask a couple of questions to understand what, specifically, they mean by the question.

Some people want to Read more

New Finding Cash Flow Notes Referral Program

Just wanted to give you a “heads up” that our new course, Finding Cash Flow Notes, was just approved and listed on Clickbank!

Clickbank is the largest marketplace for selling online products.

Wondering what this means to you?

You can create a free account at Clickbank and get your very own referral link for Finding Cash Flow Notes.

This link can be sent to friends, co-workers, and even posted on Twitter or Facebook.

When people purchase the course using your unique link, you get 50% of the revenue!

Finding Cash Flow Notes is still only $97.00 and we have been getting incredible compliments from our enrollees.

This all new online training contains videos, scripts, letters, brochures, online marketing, and even social media strategies.  It’s a complete step-by-step guide on how to find notes for your note broker or note buyer business.

If you want to promote the course (and make a few bucks in the process) go to Clickbank.com and set up an affiliate account!

All the best,

Fred and Tracy

PS. If you have not seen the actual “product sales page” for Finding Cash Flow Notes, you can check it out here.

Seller Financing – What The Real Estate World Needs Now!

Need a new car? Get one free with your next home purchase!

Desperate homeowners are offering all sorts of incentives to buyers in the wake of some staggering new data.

But forget granite counter tops, hardwood floors, and shiny new cars.  What the real estate world needs is financing.

So first the harsh reality…and then the owner financing solution! Read more

The Owner Financing Solution – Radio Interview

Last Sunday I was honored to be featured on KDOW 1220am radio during their Going Beyond Real Estate segment! Geraldine Berry, President of SJREI, was the knowledgeable host and we discussed how seller financing is providing a solution for buyers, sellers and investors in today’s market.

Geraldine was gracious enough to provide a recording of the interview for our readers here at Note Investor. Just click the link below to listen to the full Radio Interview or keep reading for the highlights!

Click the Microphone to Listen!

 

Highlights from Interview with Tracy Z. Rewey on The Owner Financing Solution! Read more

The BIGGEST Mistake Investors Make When Buying Cash Flows

In 1996 I was in the room with some of the brightest investors of our time.

They batted around terms and strategies that left my head spinning and my hand sore from writing down as many notes as possible.

I distinctly remember, just before ending the day, someone (not me) made a comment that brought everything to an abrupt halt.

“If I buy a note that pays for 10 years at 12%, I don’t have to worry about investing again for another 10 years.”

What got me was the number of people that agreed. Read more

How Can I Find Cash Flow Notes?

Knowing how to find cash flow notes is the most important skill note brokers and buyers can learn.

It can also be the most difficult. Why?

Well it can seem a lot like looking for the proverbial needle in a haystack.

Read more

Finding Cash Flow Notes Sneak Preview

Have you seen the sneak peak preview of Finding Cash Flow Notes?  Click here to watch the video!

Finding Cash Flow Notes – Does It Help To Get Social?

It seems you can’t make a move today without being reminded of the surge of “social media” outlets. But do these outlets actually help anyone do business?

What about finding cash flow notes?

First off, let’s look at some of the top social media sites in 2010 (in no particular order).

YouTube  -  Twitter  -  Flickr  -  Digg  -  Facebook  -  Del.icio.us  -  Propeller

Reddit  -  Metacafe  -  Technorati  -  StumbleUpon  -  LinkedIn  -  Mixx  -  Slashdot

My Space -  Class Mates  -  LiveJournal  -  Yahoo 360  -  Scribd

Blogger  -  WordPress  -  MSN Groups

Wow, where do you start?

There are really over 100 social media sites that have “significant traffic.” But you certainly don’t have the time to check them all out. Here are a couple that we think deserve your attention.

1.     LinkedIn – Touted as the “business” option for social media, you can connect with colleagues, clients, and prospects. You can send and receive emails as well as create and join groups.  Think business networking groups in an online environment.

2.     YouTube – Great venue for sharing videos and a low price (how is free for low?). Be sure to allow people to re-post your video on their site if they want to share.

3.     Facebook  – Ever since the addition of Fan Pages and Groups, Facebook has become a potential melting pot of information. If you use the “group” function you can also email people (within Facebook) directly. A great way to let them know what you are doing.

4.     Twitter – Short messages to a group of “followers.” This venue gives the user and opportunity to add a personal touch. Just don’t go too far – no one cares what you had for lunch. Send out more than 4-6 updates per day and you will probably find your followers start to ditch you – especially if you are doing nothing but selling them.

Although the jury is still out on how many actual deals you can get from social media, there is no question that it will be here for awhile and millions of people are interacting in this venue.

In all cases, you want to be sure that you are delivering useful content, not just a sales pitch (some sites will even have rules against you doing just that). Contribute solid information and you just may find yourself sought out when it comes to buying owner financed notes!

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