Finding Cash Flow Notes Sneak Preview

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Investing in Real Estate Notes: Transitioning from Note Broker to Note Investor

Have you ever thought of buying and holding a real estate note for yourself instead of brokering it to an end investor?

I strongly encourage you to do so as it can be a rewarding path in the note business. I initially began brokering notes in 2005 and in 2007/2008 made the transition from note broker to note investor.

Here are some thoughts to keep in mind if you are looking to begin investing in notes to hold for yourself. 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

Foreclosures Create Owner Financing Demand

Over 2.8 million properties were slapped with foreclosure filings in 2009 – a staggering 120 percent increase in the past two years.

Discover why this bad mortgage crisis increases demand for seller financing and opportunity in the cash flow note business. Read more

Scripts and Tips – A Handbook for the Serious Note Broker

Learn to negotiate and earn fees like a seasoned professional!

In this handbook Jeff Armstrong shares with you how he runs his one-person note business including finding notes, gathering information and negotiating.

Never struggle over what to say to a note holder again!

Jeff has also included valuable scripts, tips and forms that will put you on the fast track to success as a Real Estate Note Broker!

The contents of this valuable 50+ page manual include:

• Direct Mail Tips
• Scripts
• The First Call
• Giving The Price
• Negotiating
• Industry Forms
• Checklists
• Motivational Tips

Working by himself as a Note Broker since 1991, Jeff has consistently placed in the top 25 producing brokers for the #1 funding sources in the nation. Read more

Know Your Market

Marketing is THE KEY to success for any business. Successful note brokers can answer these four important marketing questions. 

1. Who is my target audience? Read more

Moneymaking Opportunities with Notes!

Whether a seller, investor, or note broker, there are many opportunities to make money with owner financed or seller carry back notes.  There is a lucrative secondary market for seller financed notes also known as the paper business. Here are a few of the most common ways people make money in the note business.

Maximize Selling Profits

A seller often takes back financing for a buyer to appeal to a larger group of buyers and maximize the sale price. A property seller may also elect to take back a portion of the sale price for long-term interest income.  Why should the banks make all the money?

Did you realize that a bank earns back almost 2.5 times the loan amount on an average $100,000 loan at 7.5% that runs for a full term of 30 years? The payment would be $699.21 based on a 360 month amortization which means the buyer will pay back over $251,715.60 after 30 years on the $100,000 loan.  All due to the power of interest!

Referral Fees

A note broker or note consultant earns a referral fee by acting as a financial middleman between a note seller and a note investor.  A note broker markets to note holders offering to help them liquidate their note payments for cash today.  The note broker then connects the note seller with a note investor, earning a fee at closing.  This fee can range from hundreds to several thousands of dollars depending on the size of the note and their relationship with the investor.    

Interest Income

Investors purchase notes for the interest income.  First an investor can earn the interest rate or face rate charged on the note.  An investor can further increase their return by buying the note at a discount.  For example if a note has a balance of $25,000 at 8% interest the investor can offer less than $25,000 to purchase the note for a return of 10% or more.  The greater the discount the more the return is increased!

Rather than holding for long-term interest income, an investor might also purchase a note at a discount and then resell at a later date for a profit.  This is often accomplished by combining several notes together in a group or portfolio selling at a higher price to a larger bulk investor.

Learn More About The Note Business

If you would like to learn more about being an investor or note broker you will also enjoy the following:

Learn the Note Business in 60 Seconds? – OK, you can’t really learn the cash flow note business in just 60 seconds, but this “speed round” of 11 questions will certainly get you started.

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.

How Can I Find Cash Flow Notes – Knowing how to find cash flow notes is the most important skill note brokers can learn. It can also be the most difficult.

Finding Cash Flow Notes Training Videos – Watch this series of free training videos including 5 Ways to Find Cash Flow Notes.

Broker Fees – Too Much or Not Enough?

Negotiating the purchase of a cash flow is about providing a service to sellers desiring cash rather than payments over time. While providing an essential service, the cash flow industry is also a for profit business. Cash flow brokers earn their profit through fees or spreads resulting from the difference between the price the seller agrees to accept and the amount an investor will pay. But how are these fees determined? Read more

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