Wondering how to find real estate notes for sale on a budget?
You are not alone. Here are some helpful tips in answer to a common note broker question.
I previously owned a mortgage broker business and in 2007 did dabble in the note business. I also closed about 4-5 deals as a note broker. I have since closed my mortgage broker business and would like to get into note brokering, but I have a limited budget to start with (about $2000 – $3000). I purchased your program for support and to acquire additional knowledge. How do you suggest I spend my limited funds to get started?
George P. – Virginia Beach VA
You ask a great question and actually have a decent marketing budget to get started.
You will need to set aside enough to cover your basic business setup costs including:
- phone number
- business cards
- applicable licenses (if any)
- business mail box
- and a website.
While there are people in this business buying notes that don’t have a website, I truly believe you need at least a basic 5 to 7 page Note Buyer website to be in business these days. Think of the site as your storefront, providing credibility for your services.
All of these setup items can usually be accomplished with under a $500 budget.
The least expensive way to market is by building a referral base. This can be done through networking with other professionals, offering local trainings, and Reverse Ad Marketing for the note business. Great networking candidates are real estate professionals, agents, CPAs, real estate attorneys, mortgage brokers, and real estate investment clubs. Referral marketing takes your time rather than your dollars and will utilize your business cards, brochures, and website from the setup process.
Run the free ads available online with sites like Craigslist, Ebay classifieds, and other online directories. Avoid buying classified ads or expensive display ads. Print ads rarely payoff unless you use a local want ad type paper (Nickel Nick, Penny Saver, etc) that offers low rates and you live in one of the high volume states for seller financing.
Look at a small but consistent direct mail campaign to note holders in your area. To save funds build the list yourself or purchase from a list provider like Advanced Seller Data Services. In order to maximize efforts, prequalify the notes for basic things like approximate equity (20% or more for best results) and property type (SFR). This will save you from paying postage to mail letters or postcards on deals that are harder to place with a note buyer.
The best way to stretch a small note broker marketing budget is to think local.
Work on branding yourself as the local seller financed note specialist. As funds become available then expand your efforts into other areas. You’ll find the “How To” details including sample scripts, brochures, and marketing pieces for each method in your member’s area of the Marketing for Notes Master Class (also available in our bookstore!).
Hope that helps and feel free to contact me with additional questions.
To Your Success,
Tracy Z. Rewey