You’ve Signed on a Note Deal – Now What?

One of the best feelings as a Note Broker is when you sign on a deal. But that doesn’t mean the fun is over.

Note brokering is an excellent option for anyone in the note industry. Whether you’re new and want to learn more, have a small budget and can’t afford to purchase many notes, or have just come across a note that doesn’t fit your parameters — brokering lets you get a piece of the pie.

However, as many have realized, finding deals and securing an investor for them can be the hardest part. Which is why it’s so exciting when you sign on a deal (we still do a happy dance in our office).

However, that doesn’t mean you can put the file away and move on…

Steps After Signing on a Note Deal

Get a Research Authorization

Along with the Signed Option Agreement, obtain a Research Authorization as well.

This can save time in the future and allow you to reach out to service providers, such as title companies, servicers, and insurance providers, to obtain copies of the necessary documents.

Collect Copies of Closing Documents

While it’s ideal to have copies of the closing documents to obtain offers, some Sellers prefer to hang on to those until they are officially onboard.

While some can be obtained from the county, now is the time to get copies of all Closing Documents, including the Note, Mortgage, Settlement Statement, and Lender’s Title Policy, along with copies of the payment history, property insurance and real estate tax status.

Verify the Originals are Easily Available

In addition to getting copies of documents, ensure the Seller has a the original Note and Mortgage or Deed of Trust readily available. If they do not, it doesn’t mean the deal is over, but it does mean some added steps.

Stay in Touch

And not just with your Seller — keep in touch with your investor as well.

When it comes to keeping in touch with your Seller, creating a trusting and open relationship is the priority. They should feel comfortable and confident coming to you with questions, knowing you’re on their side.

While being readily available to the Seller to field questions is essential, so is being available to your investor. Not only does this create a working relationship that they’ll remember down the road when you reach out for future deals, but you’ll also be on hand to help with any hiccups that come up.

And if you have to approach your Seller with bad news or a change in plans because you’ve built that trust, it’s more likely to go over smoothly.

Be on Hand for Closing

Note Sellers have questions at closing when faced with all of the documents at closing. When the closing is scheduled, make sure you’re at your computer with a copy of the documents ready to field any questions to help the process go smoothly (and happen).

Once the paperwork has been signed and the originals handed over, get with your investor on the schedule for releasing funds and communicate that to your Seller. Check-in once they have been released to ensure there are no hiccups.

Say Thank You

Thank you is a powerful thing. When the deal is done, it’s worth the five minutes it takes to email your Seller and Investor (bonus points for mailing a physical thank you card in addition to the email).

While many times you may never hear from your Seller again, networking is one of the main ways deals get done, and you will cross paths with that Investor in the future — hopefully on another deal.

Brokering notes is a great way to make money and be involved in the industry without funding deals on your own. But just because you aren’t putting up the money doesn’t mean it doesn’t require some effort. It’s important to stay involved after signing on a note deal to help the transaction go smoothly and make it to closing!