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How Can I Find Cash Flow Notes?

January 18, 2011 by Tracy Z 9 Comments

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

Finding Cash Flow Notes LogoIt can also be the most difficult. Why?

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

The Challenge with Real Estate Notes

On average about 6% of residential real estate sales involve some sort of seller financing. And it’s the seller carry-back that makes up the lion’s share of the cash flow note business.

Now it can be more or less depending on where you live. It’s also higher in a tough economy or with hard to finance properties (land, mobile homes, commercial, businesses, etc).

But that 6% has been a pretty reliable statistic for the 20+ years I’ve been buying and selling notes. I know six percent may seem like a small number but it can really add up.

Cash Flow Note Statistics

Just take a look at seller financed notes for the past 5 years. Over $113.8 Billion in 1st position owner financed real estate notes were created from 2015 through 2019.

That number grows substantially when you combine with second liens, non performing notes, business notes, and others not included in these statistics.

So how do you find the needle in a haystack?

Target Marketing – The Solution to Finding Mortgage Notes

It’s a waste of valuable time and money to market your note buying services to the 94% of the population that don’t hold a note.

To find cash flow notes you need a powerful magnet…and that’s targeted marketing.

A marketing plan targeted solely to the needs of sellers holding cash flow notes is what will get your phone ringing and your pipeline full of deals.

5 Ways to Find Cash Flow Notes

In our business there are 5 preferred methods for locating deals. We cover this in more detail in the Finding Cash Flow Notes Training, but to summarize they are:

 1.  Ads – Using ads to find people receiving payments on real estate notes

 2. Direct Mail – Sending letters or postcards to a verified list of note holders

 3. Referrals – Networking with professionals to obtain referrals

 4. Online – Building an online presence with websites, directories & SEO

 5. Building Your Brand – Establishing yourself as an expert in your local area

Over the last two decades we have used a combination of all five methods.

So what’s the best way to find cash flow notes?

Well that depends on three things:

1. Budget

How much are you able to spend on marketing? This is a huge factor when first starting out. For example direct mail is effective (if done right) but also expensive.

2. Time

How much time can you devote to the business? Reverse Ad Marketing and Referrals are low-cost but they take an investment of time.

3. Skills

What are your strengths and weaknesses? Do you already have relationships with existing real estate professionals? Are you great with computers? Do you like (or hate) to give presentations? This also impacts your selection.

So start with the 5 main methods, realistically assess your budget, time, and skills, and then make a marketing plan that is best for you.

You can also read these additional articles on Finding Cash Flow Notes:

Note Broker Questions: How Do I find Notes on a Budget?

Should I Visit the Courthouse to Find Cash Flow Notes?

Find Cash Flow Notes with Note Seller Lists

Filed Under: Featured, Find Cash Flow Notes Tagged With: finding cash flow notes, How to Find Cash Flow Notes, owner financing, real estate notes, seller financing

About Tracy Z

Tracy combines her knowledge of real estate notes with the power of marketing online to help grow your business! She can be reached at Tracy@NoteInvestor.com or by calling 1-888-999-7905.

Reader Interactions

Comments

  1. Ken Schnad says

    May 14, 2017 at 6:35 pm

    To whom it may concern,
    I am very interested in the note business since I attended an online note presentation.
    They presented a kit that we could buy which I didn’t have the money to buy, Here was the interesting part was that if we could put together a 3%-6% referral fee to the note transactions, we didn’t have to get involved in the the contract like an assignment etc. Is there a contract that we can get to submit to the escrow Company to make sure we get our commission. Also If I hold a Real Estate license does that complicate things?
    Ken Schnad
    602-540-7447

    Reply
  2. Brad A says

    November 8, 2016 at 2:47 pm

    I have some notes to sell, very small amounts, very high yields, like 25% interest, they are all secured and paying, generally with a credit card every month. We have great success with these and are only selling them so we have more money to make more of them… I can also generate more notes at a lower interest rate. Brad 913-638-3858

    Reply
    • Kenny says

      June 11, 2017 at 7:38 pm

      Hello Brad A, are you still selling notes? Do you have a website?
      Thanks

      Reply
    • R Castello says

      October 3, 2017 at 11:19 am

      Give some examples of what you have available please. We have a partnership interested in buying notes as well as managing a trust with the same interest.

      Reply
  3. Theresa says

    December 16, 2014 at 1:35 pm

    How much is it for you to market for me to receive notes? Tracy combines her knowledge of cash flow notes with the power of marketing online to help grow your business. How much would she charge??

    Reply
    • Tracy Z says

      December 17, 2014 at 10:57 am

      Hello Theresa, We teach you how to market in the Finding Cash Flow Notes Training course. The expense will depend on the types of marketing you use. Some take more time (networking, referrals, content marketing, reverse ad marketing) while others require a greater investment of funds (like ads or direct mail). Here are a couple of helpful links:
      https://noteinvestor.com/finding-cash-flow-notes-training/
      https://noteinvestor.com/featured/how-can-i-find-cash-flow-notes/

      Reply
  4. Durwynn Thomas says

    March 29, 2012 at 3:46 pm

    how can i contact you Tracy Z

    Reply
    • Tracy Z says

      April 2, 2012 at 3:56 pm

      You can find our contact information on Note Investor “About Us” page at https://noteinvestor.com/about/

      All the best,

      Tracy Z. Rewey

      Reply
  5. Tracy Z says

    June 18, 2011 at 3:13 pm

    Hello Oscar,

    Welcome to NoteInvestor.com. A good place to start is earning income for finding and referring notes to investors. There are many free articles on this site to help. A good place to start is here: https://noteinvestor.com/note-brokers/moneymaking-opportunities-with-notes/

    Reply

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