I didn’t exactly start my note buying journey with a pile of money.
In my mid-20s, after retiring from raft guiding (surprise, it’s not that lucrative) and getting a “big-girl” job, I had some of my first savings I was ready to throw at retirement, but I wanted something beyond buying a few stocks. I’d listen to all these investors telling me what I needed to do. And I got pretty discouraged, pretty quickly.
One of the most frustrating things about investing is hearing advice that sounds great in theory, but feels impossible. Things like, “Buy rental properties,” “Purchase more stocks,” or “Invest with someone in a business.”
While all those strategies work, they require something that many people don’t have lying around: money. The challenge is that most financial advice assumes you already have money to invest.
What if you’re motivated, willing to learn, ready to work, and have time, but don’t have four, five, or six figures ready to invest? That’s where the note business offers a unique opportunity.
How to Make Money Brokering Real Estate Notes
One of the biggest misconceptions about the note industry is that you need a property or money to invest.
While creating or buying a note is an excellent passive income source, there’s another middle-ground area: note brokering.
How Note Brokering Works
Instead of using your own funds to purchase notes, you connect investors with notes. You’re a note matchmaker. As the broker, you find the note seller, vet the note, and reach out to interested investors. You help get the note to closing, and when it’s closed, you earn a fee.*
*One quick note before you start matchmaking: rules around brokering notes and collecting fees vary by state and transaction, so make sure you understand the requirements that apply to you before getting started.
Think of it like:
Real estate wholesalers don’t necessarily buy houses.
Recruiters don’t necessarily employ workers.
Mortgage brokers don’t necessarily fund loans.
And note brokers don’t necessarily buy notes; they bring the parties together. Click here to check out an in-depth overview of how Note Brokering works.
Finding Over Funding
You could spend years saving enough money and learning enough to buy your first note. Meanwhile, experienced note buyers are actively looking for notes.
Their problem isn’t funds; it’s finding deals.
Meanwhile, you have time, the willingness to learn, and the desire to earn a fee. The value isn’t having money; it’s having time and finding opportunities. You can check it out in action with this Florida Real Deal and this Texas Real Deal.
Your First Investment May Be Marketing
Start with networking, online content, referrals, outreach – and then grow. We won’t lie to you – finding deals isn’t always easy. But spending money on Marketing is way cheaper than purchasing a note for a single-family home in Texas.
If free resources aren’t getting you anywhere and you don’t want your next move to be scouring County Websites, look to options like paid Google Ads or Direct Mail.
You don’t need to buy a property. Or fund a down payment. Or create a note. But you may need to buy some postcards. Needing more guidance on how to find more notes? Check out our Marketing for Notes Master Class.
Persistence Over Perfection
Note brokering is a numbers game, and no, we aren’t talking about your bank account.
Not every note will win and make it to the closing table. Many calls won’t even lead to a Quote Request. Some emails will never get a phone call. That’s all normal.
The most successful broker is the most persistent and consistent. Continue marketing. Continue following up. Continue building relationships. The consistency will compound.
Learning While Earning
The biggest benefit I’ve experienced from note brokering isn’t just the money you can earn, although that part is nice…
It’s the knowledge and experience.
You get to learn from experienced investors before risking your own capital. You’ll get a front-row seat to:
- What investors look for
- How notes are priced
- What makes a deal attractive
- Common underwriting concerns
- The closing process
- When to fold
That’s experience that money can’t buy.
Growing from Zero
Instead of spending years studying and saving from the sidelines, get in the mix and start earning now. Note brokering isn’t a get-rich-quick scheme, and it certainly requires effort, but it offers something many investment strategies don’t: a realistic entry point.
With time, persistence, and a modest marketing budget, you can help note holders solve problems, connect investors with opportunities, and earn fees along the way.
Sometimes the best way to get into investing isn’t by starting with money. It’s by starting with value.
Leave a Reply