Evaluate a Cash Flow Note In 60 Seconds or Less

Ever feel like you spend too much time determining if you have a viable seller financed cash flow note to either broker or keep for yourself?

Not me. I tend to look over a real estate note and make a pretty rapid decision.

So, how do I do it?

First off, I tend to go for the big stuff first. You know, 30,000 foot level. It is easy to get caught up in the details that won’t really matter when it comes times to make a decision.

But let me back up for just a minute and explain what I mean by… Read more

Who Pays Costs When Buying Notes?

Wondering how costs are handled when buying mortgage notes?  You are not alone!  Here is a question we recently received from a note broker:

If the note buyer wants the seller to pay the closing costs, does the note buyer back the closing costs out and then send me the offer or do I back the closing costs out myself along with my fee and then present the offer to the seller? If I back out the costs, where would I get the cost of the closing to do this?

Great question!

There are generally two types of offers when it comes to buying notes:

1)    Wholesale – a gross offer with the note broker or seller paying costs; or

2)    Retail – a net offer with the note buyer/investor paying costs.

If the note buyer quotes a transaction wholesale and wants you, as the note broker, to pay closing costs then you need to subtract both your fee and the estimated costs from the note buyer’s quote before making your offer to the seller.

You could also just deduct your fee and have the note seller pay the costs. However many sellers are reluctant to pay any costs upfront so it is a selling point if you can eliminate the risk to them.

The amount of closing costs will vary by the state, size of the deal, and type of property. These costs usually include Read more

Note Buyer Interview With Ric Thom of Security Escrow

Interested in seller financing, real estate contracts, or buying notes in New Mexico?

Then you will want to know Ric Thom of Security Escrow, the feature of this month’s Note Buyer Interview.  Ric has been servicing and buying real estate contracts in New Mexico for over 25 years.

He’s also a true owner financing expert that has been actively involved in trying to “make sense” of the HUD Safe Act and Dodd Frank Act. Read more

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 Business Holiday Giveaway

 

We Are Giving Away One Note Present Each Day For The Next 12 Days!

And there are TWO WAYS you can win… Read more

The Seller Financing Solution – Note Investor Radio Interview

Why is seller financing on the rise?

It provides a main street solution to a wall street problem.

If you are wondering how to use real estate notes to achieve your goals in this tough economy then you will want to catch the audio replay of the Note Investor radio interview.

Last Tuesday we tuned in with Lisa Moren Bromma of Wise Women Radio to discuss the opportunities available to buyers, sellers, investors, and note brokers using owner financing.  Here is just a sampling of the hard hitting questions she posed:

• You talk about solving the problems of main street that wall street created. What have you seen through the years in the lending business and how does your company solve these problems?

• What does it take to be a note investor in today’s tough market?

• What is the most difficult part in brokering or buying private mortgages that one must watch out for?

• How do you qualify your investors? How do you qualify the borrower of the note?

• Can investors use their IRAs to buy seller financed notes? How does one go about buying a note for their IRA?

• You have developed a strong following as someone who knows her craft. Tell us about your online presence, what you offer to those who are interested in learning the note business in today’s upside down real estate market.

• How do you keep up-to-date with industry changes and laws like the HUD Safe Act and Dodd-Frank Law?

• Do you have any recommendations on how people can educate themselves?

• You have been so successful where many of our peers have failed. What is your secret?

• Can you give us 3 basic ways to find mortgages?

• You are in business with your husband Fred. Is it difficult to work together? What is the secret to working and maintaining a solid personal relationship/marriage.

• What’s next for you in business and in life?

Many of you already know Lisa Moren Bromma as both a marketing expert and long time note buyer / real estate investor.  She’s also a published author and has recently started an Internet radio talk show entitled Wise Women Radio.  It was fun to be interviewed by Lisa and I encourage you to listen to the free audio replay.

You can also check out the archived talk shows with past interview participants.  It is a great way to pick up ideas at no cost! All it takes is just a small investment of your time! You can listen to the Note Investor interview and others at: http://www.wisewomeninvestor.com/WWR.html

 

 

Discover Real Estate Notes – Interview With Lisa Moren Bromma

Looking for marketing expertise? Lisa Moren Bromma has been finding cash flow notes for over twenty years.

In addition to buying real estate notes as a private investor she has provided marketing consulting to the nation’s top institutional note buyers.

The author of several acclaimed books published by McGraw Hill and a past board member of the National Association of Real Estate Investors, she will wow you with her knowledge and dynamic presentation skills. Read more

How to Avoid Going Broke Buying Real Estate Notes

The most important thing you need to know how to do as a note buyer or investor is to properly analyze a promissory note investment when it first comes into your office so that you can either pursue the deal or pass quickly.

Let me show you an overview of my 6 step analysis that I go through on every note we look at. Read more

Note Investor Interview with W. J. Mencarow Founder of Paper Source Online

Would you like to meet a note buyer that has been investing in private mortgages since 1981?

Well I’m honored to introduce W. J. Mencarow, founder of the Paper Source, Inc. and the feature of this month’s Note Buyer Interview.

Bill and Alison Mencarow have been publishing The Paper Source Journal since 1987. It is both the first and longest standing newsletter in the note business.

Bill has also authored several guidebooks including “How to Get Started in Notes Without Using Your Own Funds” and been interviewed by NBC, The Wall Street Journal, and numerous media outlets.

I first met Bill at one of the note industry national conventions (something else he was the first to host)! Over the years I had the chance to explore Washington DC, Cancun, and even Alaska thanks to his events. I must also give credit to Bill for meeting Bill Clinton and the Pope (or at least a couple of guys that looked surprisingly similar…)!

Bill started in the note business during the 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

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