Let’s face it. When it comes to the cash flow business note buyers are the driving force behind funding deals.
Unless your Warren Buffet or Oprah Winfrey, you will need access to investors to be a successful note broker.
Even if you buy notes yourself, there will be times a deal does not meet your parameters or funds are tied up elsewhere. Just remember these…
Rules for Working with Note Buyers
1. Get Direct
You should be the only “middleman” between the seller and the note buyer or funder. The one acceptable “degree of separation” would be working with a qualified Master Consultant that provides needed expertise or access to specialized investment funds. Grab your copy of the directory of note buyers if you are looking for the real deal.
2. Over Deliver
Go the extra mile to research details online including property information, copies of documents, property tax statements, photos, and/or current estimated values whenever possible.
3. Be Truthful
Do not withhold information from the investor. An omission is equivalent to a lie in the eyes of an investor. If you find out the seller misled you be sure to let the investor know right away.
4. Understand the Process
Think like a note investor and anticipate questions they might pose. Know the steps for closing a transaction and prepare the seller for reasonable timelines. Understand the challenges that can arise from poor credit, low appraisals, and deficit documentation.
5. He With The Gold Makes The Rules
Treat the investor with respect. Ultimately it is their money on the line if a deal goes sideways. We want longevity in our relationships with funders!
If you apply these five simple rules you will gain respect and get results when working with note buyers.