One of the things that make buying and selling mortgage notes so appealing is the multitude of ways an investor can purchase a note. Frankly, you are limited only by your imagination. Well, maybe imagination and reaching a desired yield. Here is a quick look at calculating the cash flow business that even those with math phobias will like. The Top 5 Ways to Buy Mortgage Notes 1. FULL – A full is just that. Buying the entire note. If the seller has 322 payments remaining, the investor … [Read more...]
Why We Don’t Provide Note Broker Mentoring
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I don’t think a week goes by that someone doesn’t call or email us to “mentor” them as a note broker. I get why they call. We have been around for a long time, done lots of note buying deals, and like sharing information. So, why don’t we mentor people? Well, the answer may surprise you… We don’t really believe in expensive mentoring programs for note brokers. Don’t get me wrong, we understand that people need support from time to time and we have even had pros provide assistance to … [Read more...]
Note Marketing: Two Out of Three Isn’t Bad
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Actually, it was the topic of a speech that I gave years ago, but as I revisit it in my mind, it seems that nothing has changed much. The premise is simple. When creating and executing a marketing campaign, you have three choices. Speed – How fast you want to get to market (or react to current topical trends). Cost – How much (in dollars) the marketing will cost you (including the creation). Quality – How great the note marketing piece will look. Every one of them is very … [Read more...]
Has Today’s Note Seller Really Changed?
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The real estate market went up and crashed back down. Bank lending dried up faster than water in the salt flats and... Robert Downey, Jr. has made three Iron Man films. So, with all these things going on, and more, it begs the question: How is today’s note seller different? The answer may surprise you. Nothing. Nothing has changed in the motivation of why a note seller would like to sell a note. People only sell real estate notes for two reasons. Happy People… Happy people … [Read more...]
10 Mistakes Note Brokers Shouldn’t Make
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What does it take to be successful brokering real estate notes? Start by avoiding these 10 Mistakes Note Brokers Shouldn't Make! Over the past two decades, I've had the benefit of seeing the note business from a wide perspective. From start-up home based broker to Assistant Vice President of Metropolitan Mortgage, President of the Cash Flow Association, and co-owner of Diversified Investment Services, I have participated as a broker, investor, and educator. I could spend hours discussing … [Read more...]
Rare Opportunity for Today’s Note Buyers: Small Mortgage Notes
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If you are just starting out in the note industry, and looking for great returns on your money, some cash in the bank certainly helps you get started as a note buyer. But what if you don’t have a lot of money to invest? What if you are just getting your feet off the ground, maybe saved a few bucks, but are certainly not “loaded” and looking to invest all your money in one big note? Small Mortgage Notes (with a rare opportunity). First off, small notes in general can often lead to bigger … [Read more...]
Five Reasons To Invest In Real Estate Notes
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Why would someone invest in real estate notes without a good reason? People need reasons…and good ones, for just about everything they do. Or, they should! I mean, if I said go invest in worm farms, or cotton-ball stuffed Teletubbies, you would certainly want to hear a couple of good reasons why your money should be there instead of someplace else right? Ok, here are five reasons I think you should [strongly] consider investing some of your money in real estate notes. Reason One – You … [Read more...]
3 Things You Can Do For Your Note Business Today
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People like “to do” lists and frankly, they are pretty darn effective. You have something written out just waiting to be checked off with an emotional satisfying swipe of the pen. So, without any further delay, here are three things you can do TODAY that can move your note business forward. To Do Item #1 - Write a letter to a potential referral source. Contact a real estate agent, CPA, attorney, title agent, escrow company, or other real estate professional. Tell them what you do and … [Read more...]
Should I Carry Back An Owner Financed Note?
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If you are selling real estate, especially in this market, you might be approached by someone asking if you are willing to “Owner Finance” or consider a "Seller Carry-Back" note. Here are a few guidelines to consider... How Do You Make Money When Owner Financing? The whole concept behind seller financing is that you are acting like the bank. While that carries risk of receiving payment, you can also get a great return on your money. I tend to recommend that if you are going to carry back … [Read more...]
Do Some Investors Pay Par Pricing When Buying Mortgage Notes?
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Recently we received a question in the Finding Cash Flow Notes training course related to “par pricing” or "discount" when buying mortgage notes. First off, here is the Note Broker Question… Hello and thank you two for all your help. My question is why would a note investor pay par for a note? I’ve been speaking with a person who helps their clients use OWC (Owner Will Carry). I was informed they are working with a note investor that is willing to buy a note for par. I don’t understand … [Read more...]
