Will 2012 Be The Year For Real Estate Notes?

To understand the current market for real estate notes it helps to go back in time. Years ago the country was in a financial crisis. Gas was expensive. There were numerous political battles in Washington, DC. Houses were not selling. Interest rates were high. Wait…what? … [Read more...]

Five Tips To Keep Your Note Business Professional

Certainly the most popular question among note brokers (experienced and otherwise) is, “How can I find more notes?” What many people don’t ask is, “How can I have a professional note business?” The reason I think this is important is that one can impact the other. Keep you business professional and, surprisingly enough, some deals will actually find you. So, how do you make sure you have a “professional” image in the marketplace? Make sure you are following these... 5 Tips for a … [Read more...]

Should I Use a Full or Partial When Selling Mortgage Notes?

There are many options when selling owner-financed mortgage notes. How many options will be largely dictated by a note buyer’s underwriting components, such as seasoning on the note, down payment, equity, and the payer’s credit. You can usually sell the entire note, but perhaps just selling a specific number of payments is your best option. Deciding on whether to sell the full balance of the mortgage note or to consider a partial really comes down to three things. 3 Questions When Selling … [Read more...]

Calculating Cash Flow Notes and a Contest!

I have written before about how note buyers accelerate payments on cash flow notes. One such strategy was the Double Your Payment/Cut The Interest Rate in Half. Another method is to simply go for an Early Payment With Incentive. To this day, the following situation is still my favorite example of this method. It was late December and we were looking at a small note with a $10,000 balance. The payment was only $132.15 per month with a 10% interest rate and 120 payments left. The note … [Read more...]

How Note Buyers Can Accelerate Return

Holding or buying mortgage notes and want a quick way to accelerate your return? Sure, you can’t go back to your payer/buyer and tell them to mail more money or even increase their interest rate. Matter of fact, you purchased the note “subject to” all the terms and conditions already in place and can’t change a thing…unless the payer wants to change them! Try this… Offer the payer to cut the interest rate in half (face rate of the note) if they double their payment! Let’s say the … [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 … [Read more...]

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  … [Read more...]

Buying and Selling Notes – What is the Current Property Value?

One of the considerations when buying and selling mortgage notes is knowing the current value of the home. After all, the property is the collateral and knowing its true value will greatly affect how much an investor will pay for a note. Historically this process was a bit easier, when everything was in an "up" market.  But with property values still on the downside or just recovering, it is often difficult to put a (safe) number on it. At least one that everyone agrees on. Although there … [Read more...]

Quoting Cash Flow Notes

When it comes to quoting and buying mortgage notes there are basically two camps of note brokers. One camp takes the “Quote on the Fly” approach, while the other has the “No Note, No Quote” mentality. … [Read more...]

How to Negotiate Cash Flow Notes

One of the more popular questions, after “How do I find notes?” is “How do I negotiate with a note holder?” Since the cash flow business affords consultants the ability to determine their own fee, many new note brokers feel challenged on how to present an offer. These 5 tips should help you be that much closer to closing the deal! … [Read more...]