I need your help on this one…

As you may know, we are in the process of creating a product
for Note Brokers.

I want to make sure I cater this exactly to YOUR needs.

=> Please take 30 seconds and tell me the #1 thing
that should be addressed in it!

(Feel free to elaborate, if you want to; or to list more
things that should be included.)

In case you are now going ‘But, Dean, I really don’t care about
brokering notes… I just want to BUY notes myself…’

Consider this:

Even if you are already buying notes or are in the process of buying
your first one:

There may (read: probably WILL) come a time where you are presented with
a GREAT non-performing notes GREAT op.portunity, but for one reason or another
you can’t close on that note deal yourself…

Do you just want to say ‘Thanks. But, no thanks’?

Or would you want to pass that note or that pool of notes on to somebody
else for a commission…

(Of course you would.)

Well…, you just brokered a note.

What would you really want to know about that process?

Thanks for taking 45 seconds out of your day to help me out!

Dean

=================================

* Check out our Note Buying Forum

* Ready to REALLY get down & dirty?
‘A-Z Profiting from Discounted Mortgages Business-in-a-Box‘.
-> 16 hours+ of Video Training, 23 pages of checklists, a complete 8-Week Roadmap,
an extensive Table of Contents for quick reference, plus TONS of Bonuses.
[===> You can check out Hours of F.REE Training Videos of the actual Course Content HERE.]

* ‘PRIVATE ACCESS CLUB’ (PAC) – Test-Drive it for F.REE for 30 Days!
Get Your Questions Answered LIVE & get Ongoing Support & Training!
Conference Calls/Webinars, Interviews with Industry Insiders (Bank Reps, Top Note Brokers, etc.),
Real-Life Case Studies, Role-Playing, and ‘HOT SEATS’ to get coaching on
Your Deals/Business Challenges, and more

* Questions? Chances are I already answered them at www.NoteBuyingProfits.com/blog.
(Use the ‘Search’ feature or click on the ‘FAQ’ category on the right to see them all!)

* Want to make Easy M.oney telling Your RE Buddies about our Kick-A** Products? Click here.

Upon multiple requests: below is the replay from our
recent webinar on ‘Note Brokering – The Basics‘.

* PDF Version of Presentation for Quick Overview

* Online Video
(Neatly broken down for you in little ‘chapters’ for quick & easy reference)

* Audio MP3
(Go to the File Menu & ’save as’ to your PC for your iPod, etc.)

And here is some of the feedback we got:

“What a great event this was. It makes me want to get
your upcoming note broker course that much more.

Realizing the level of professionalism involved is a
little overwhelming for me personally, but knowing now
that’s what your note broker course is geared to do,
should make anyone eager to want to pursue learn about
how to broker cash flow notes.

Thank you so much for sharing some of what’s “behind
the curtain”.

Sincerely,

Allan M.

Or this one:

Dean,

I really enjoyed last night’s webinar on note brokering .
Especially the part when you and sherry role played. I hope to
see more role playing in future webinars.
(Yes, you will, Jorge!)

Thanks,
Jorge G.

===============

We are shooting for the release of our upcoming
course on How to Broker Notes roughly a month from now.

Stay tuned for that.

Have a relaxed Sunday!

Dean

PS: Please help me out to put EXACTLY what YOU would
like to see in the note broker course by answering 1 simple question.

It’s a story about an Australian trader and an Arizona
banker.

No, this isn’t about romance or about some twisted
financial love tryst …

It’s about how two people – Ray  and Sherry  – met on
LinkedIn (not everything good happens on match.com!),
and started a successful note brokering business.

Learn the following Note Brokering Insights:

* The 4 key secrets to successful note brokering

* The 1.75% commission on the $80,000,000 (that’s
“million”, yes) trade – you do the math

* How it gets easier over time – “tough-first-deal-
but-then-it’s-send-me-the-check-brokering-work”

As Casey Kasem used to say on that old classic radio
show America’s Top 40 (OK, so this ages me here

“Keep your feet on the ground and keep reaching for
the stars.”

Ray and Sherry are doing just that with Note Brokering.

Could be you brokering those notes – it’s not rocket science.

But … it may sound like it’s only for “pros” who
come at it from a banking background.

It’s not!

It just takes some creativity and the right approach.

And…, it’s actually about

* * * RELATIONSHIPS * * * When Brokering Notes

So if you fancy yourself a good “people person”, you
might be interested in learning how you can broker
bank notes for some extra cash.

If you know what to say and how to say it, you may
find yourself making a cool extra $1,400,000 on an
$80,000,000 deal.

That’s what Sherry and Ray just did as note brokers.

Listen to them share their experience with
us here:

* Video Replay

* Audio MP3 download (go to your file menu & click on
’save as’ to download to your PC)

Now, this webinar is on fairly high-level stuff, and that’s
great to show you where this can lead to!

But… we scheduled another F.REE webinar on Note
Brokering for you with Sherry.

And now that you have seen the ‘big-picture vision’, on this
next one, we will zoom in on the *BASICS* of Note Brokering -
How to get Started…

How to get YOU started, that is.

It’s gonna be next week, on Wed., 2/25, 5pm PST/8pm
EST.

REGISTER HERE for this free webinar/call on Note
Brokering *BASICS* & How to Get Started.

To your success,

Dean

PS: As you probably know by now, we are also in the
process of creating a note broker course.

Help us tailor this EXACTLY to your needs by
answering 1 simple question HERE.

Hope you enjoyed this post on note brokering!

I’ve been flooded with requests from investors and
students who want to broker notes to us lately.

I wanted to help clarify a couple of things that will
make it easier for anyone who’s considering brokering
notes to us (or to anyone, for that matter),

To improve their close rate and their profits from
brokering (who doesn’t want to increase the amount of
m.oney they make from their brokering activities?!)

[Brokering Notes is obviously the perfect strategy for folks who
want to get into the game, but don't have access to m.oney
currently.]

FIRST, I’m hosting a call/webinar tomorrow, February
11th at 5pm PT, 8pm ET, with one of the “Good” brokers
out there by the name of Sherry.

* * * REGISTER FOR F.REE HERE * * *

Sherry knows what she’s doing, she knows how the game
is played, and if you copy what she’s doing, you’ll be
on the revenue track for note brokering.

Sherry came from banking, got into brokering a few
years ago, and has been doing very well for herself.

=> She’ll point out the four (4) keys to brokering notes
success.

(I originally planned this webinar for Private Access Club
members only – but then thought you should get a chance
to take a peek what we are doing inside of PAC…)

SECOND, we’re in the process of developing a ‘A-Z
Profiting from Brokering Notes Course’ that will be
especially targeted for investors who want to broker
notes, rather than buying notes.

More information about the product launch will be
given at the end of the call/webinar.

You can also put yourself on a priority notification list
for hearing about the release of the course, once ready.

Talk to you tomorrow at 5pm PT/8pm ET.

Be your success,

Dean

PS: Here is the REGISTRATION FORM again for the FREE webinar on How to Broker Notes.

Here is a question I just came across on our new forum at: www.notebuyingprofits.com/forum recently:

Hi Dean,

I’m a newbie. I have read all the free information on your site. I plan to purchase your system next week. I have no money to invest in notes at this time. I plan to broker a few until I get comfortable with the process and get some investment money saved. Since this is my game plan, is this the right course for me just starting out. Does your A-Z note buying course give you the tools needed to only broker at first?

Thanks,
Sheryl

======================

And here is my reply. This may address some of the ‘how to get started in the note buying/defaulted mortgages business?’ questions going through your head as well:

Sheryl,

Brokering Notes is both an art and a science, and no – you don’t need money to broker notes. What you need, though, is a solid understanding of what you’re brokering if you want to make any money brokering notes.

Actually, brokering is a very useful way to start – you can learn about the entire closing process, and see a transaction in action, before you ever need to put any of your own money at risk.

Nothing compares to buying your own note in terms of gaining experience, but this can be a great way to start (making good money) before you build up enough cash to be able to buy your own note (where you can make great money).

There are a few really good brokers out there, however, that make excellent money doing what they’re doing.

Learn this right, and you can have none of your cash in the game, excellent relationships that you continue to build over time, and do incredibly well for yourself!

Let me give you an example of what sometimes happens with brokers:

If you were to call me up today (our office usually gets 3-5 of these calls each week) and say “Hi, I’m Sheryl and I’d like to broker notes to you – can you tell me what you’re looking for and I’ll go out and look for some?”, you wouldn’t make it through the door and we’d probably put your name down on the “do not answer” list.

Here’s why: if you, as a broker of notes, can’t demonstrate to me – a buyer of notes – why I should listen to you in 30 seconds or less, then you’re a time waster.

Here’s what the Good brokers do:

They call when they have product that they’d like to show us and have us bid on. And the only way to get product is to … talk to banks or other sellers of notes, and convince them that you know what you’re talking about and that you can help them out by finding buyers for their paper.
(Take a look at this recent blog post for more tips on why it’s important to understand what you’re brokering:  http://notebuyingprofits.com/blog/160/note-brokering-of-defaulted-mortgages-an-art-and-on-turnkey-investment-programs/)

So now – guess what – as a broker you need to actually demonstrate a similar understanding of notes that a regular buyer does like me.

Why?

Because banks want to deal with people who know what they’re doing.

And what a Bank will usually be looking for is someone who knows what happens in a bid and how bids are presented (stips and purchase contracts, fades, e.g. Step 3 of the A-Z Course and the note buying document toolkit that comes with it), what type of due diligence a typical buyer will be doing (title and BPO’s, Step 2 of the A-Z How to buy Defaulted Mortgages Course), and what individual buyers actually DO with the notes they buy (the 5 different note buying exit strategies, Step 4 of the A-Z note buying course).

My advice:

Give yourself a solid education in the note buying, the note closing, the note negotiation and the note workouts, so that you can (WITHOUT DOING A SINGLE DEAL), demonstrate a solid understanding of the note buying space.

No one likes dealing with newbies who don’t know anything – everybody likes to deal with professionals, or people who come across as professional, who won’t waste their time and who can get them product.

You can spend a lot of time getting to the point where you’re taken seriously by buyers and banks (you need both in order to broker successfully, which not many people realize in this market).

And the A-Z Profiting from Defaulted Mortgages Business-in-a-Box course will jumpstart you - I have absolutely no doubt about it.

Also, on brokering - you should really listen in to the Q&A session I had with a TOP Broker, Steve Cohen over at Nautilus – as part of our Private Access Club webinars/calls.

It’s a 93-minute review session on what defines a good broker, what they do for their clients, what indicative pricing is for certain pools, and other very valuable tips to give you some insight into how to succeed as a note broker.

It is  available for you to review for 30-Day FREE Trial that comes with the Private Access Club which you can find here: http://www.notebuyingprofits.com/privateaccessclub.html
Just click on the link at the top left of the page – the free 30-day trial; you can then find the recording of this interview (and a LOT of other great recordings) in the members area.)

I look forward to seeing you out there very soon brokering notes!

There are 3 people, members in PAC and buyers of the A-Z note buying course, who I have personally had broker some very good quality note pools to me in the past 60 days.

Be your success,

Dean

=================================

* Check out our NEW FORUM: www.NoteBuyingProfits.com/forum

* Ready to REALLY get down & dirty?
‘A-Z Profiting from Discounted Mortgages Business-in-a-Box‘.
-> 16 hours+ of Video Training, 23 pages of checklists, a complete 8-Week Roadmap, an extensive Table of Contents for quick reference, plus TONS of Bonuses.
[===> You can check out Hours of F.REE Training Videos of the actual Course Content HERE.]

* ‘PRIVATE ACCESS CLUB’ (PAC) – Test-Drive it for F.REE for 30 Days!
Get Your Questions Answered LIVE & get Ongoing Support & Training!
Conference Calls/Webinars, Interviews with Industry Insiders (Bank Reps, Top Note Brokers, etc.), Real-Life Case Studies, Role-Playing, Members-Only Forum, and ‘HOT SEATS’ to get coaching on Your Deals/Business Challenges, and more

Turnkey investment – Newly rehabbed (former REOs) middleclass homes with large equity positions, leased, and positive cash flow in a market beginning to rebound.

I think you achieve Jadedness levels of “10″ when those kinds of deals make me go “hmmm, wonder what’s under the covers on this one.”

What was coincidental was that earlier the same day that I received this email, I’d just read a notice from someone else advertising an “amazing turnkey investment program”.

If people don’t take the time to educate themselves about notes, they’re bound to fail as a note broker.

I’ve seen many brokers fail.

The only ones that survive are those that really understand the business.

There are very few products out there teaching anyone what bank paper, let alone non-performing bank paper, actually is, and what to do with it.

And if you don’t take advantage of drawing on my knowledge of the business, organized into an easy-to-digest and comprehensive 16-hour Note Buying training course where I take you from Start to Finish on note deal after note deal, using “live” deals from my own portfolio, then you’re missing the point about the brokerage business altogether, and you’ll be one of the “Ugly” brokers out there.

You don’t want to be chasing buyers and sellers your whole life.

If you are a Broker, you want to close a trade. For that, you want ’sticky’ relationships, where sticky isn’t just defined as how many deals you do with someone, but rather, how much VALUE you bring to your Buyers and your Sellers.

The more you bring, the more you get paid.

It’s as simple as that.

He’s smart and he’s hungry.

If you can find someone who can help you break through to banks and you can pay them a commission based on their “success rate” - e.g. you pay them only for loans that they bring you and that you actually purchase – that’s a very economical way to grow your note buying business.

Learn more about brokers – which ones are good, which ones are bad – and how to maximize what you get out of them, by taking a look at this brief Video (straight out of the ‘A-Z Profiting from Discounted Mortgages Business-in-a-Box’ 16-hour Note Buying Training Course):

As I mentioned to you yesterday:

*** Want to meet a good broker LIVE and ask him questions? I got one for you… ***

Today, Wed., 9/10 at 5pm PST/8pm EST Steve, a real good broker, will answer any questions we have as part of our ongoing Private Access Club webinars – Ongoing Support to get YOUR Note Buying Business off the ground!
(And if you miss the date, you can watch the replay in the members area later on…)

You know, A Good Broker for your Note Buying business is worth his or her weight in gold.

This past week, I received 4 phone calls from one of my “Good” brokers. He called me to touch base on where I was on my bid. I had bid a pool that he had brokered out for a friend of his whom he used to work with at an investment bank before getting into brokerage.

Always polite and professional, he would ask me “So, how is your due diligence coming along? Is there anything you found that you didn’t expect?” Or he’d say something like: “So which ones have you kicked out due to value, if any?”

And he always ends with something that demonstrates to me that he’s working to keep me and the seller “on the same page”. He’ll always say something like “well, what I’ll do is to tell John what you’ve just shared with me in case you haven’t already told John” (no, I haven’t told John). “And then I’ll let him know that you’ll be contacting him again once you’ve finalized everything…when do you think that will be?”

This broker is always ADDING VALUE – he’s helping the relationship between me and my seller along, and not coming in the way.

====> Let me give you a quick 1-minute VIDEO Demonstration of what a good broker delivers:

He’s also AWARE and ON TOP OF what my bid is, what it means, why I’m bidding what I’m bidding, and what the potential kick-outs (if there are any loans that I might “kick out” or pass on as a result of a value fade or a title issue.)

NOTE BUYERS – TAKE NOTE: if your broker isn’t helping you along, you’re not getting value for your commission $ when buying notes.

___________________

My reply:

Here’s something to keep in mind. First of all, why are you spending any time at all looking at note buying? Is it to make money?

Of course.

Is it to make lots of money? Sure.

OK, now. Why are you attracted to this more than some other aspect of real estate?

Well, one of the key reasons SHOULD be the repeat-ability of this business. The 1R, remember? (the ‘A-Z Profiting from Discounted Mortgages Biz-in-a-Box‘ Course will walk you through this, pounding this into your head!). “R” stands for “relationship”, and the idea that a single relationship can generate significant deal flow for you.

So to the question at hand.

If you’ve just spent a significant amount of time generating a lead on a note or pool of notes from someone, and come up with a data tape (a data tape is usually an excel spreadsheet with 1 or more notes for sale included on it), then you should be thinking 2 things:

1. how do I make money off the notes on this tape?
2. how do I make recurring revenue off of this relationship?

It looks like the company mentioned before may have addressed (1) above, but it may not address (2) unless you have “secured” yourself with some sort of contract to cover future transactions.

In order to help you to protect yourself as a note broker, here’s a draft commission agreement (right-click & ’save as’ to your PC) that you might want to use as reference (note that it’s California specific so you’ll want to edit it accordingly) – in order to “protect” your interests.

BEWARE THOUGH: a contract is really just a piece of paper. You need to litigate to enforce it. And to litigate, you need to have evidence that the terms of your contract have been violated.

What am I getting at?

Once you’ve signed a brokerage agreement (and I have brokerage agreements with people that are just verbal agreements, by the way), you then have to trust that the person who you’re brokering to will send you money each time they do a deal with the seller you introduced them to, at least for the duration of your agreement.

So now you’ve become an enforcer. If you don’t trust that the person you signed the brokerage agreement with is sending you money WHEN they do a deal, now you need to “check up on them” to make sure that they’re not doing deals and NOT sending you your commission.

And you may not like having to do that.

So what’s my advice on how to broker notes?

Broker to people you can trust.

Simple as that.

If you feel like you can trust someone, then go ahead and enter into an agreement with them.

But don’t ever do business with someone that you don’t have a good gut feel to.

Trust your gut.

I got asked the following:

“A partner and I have been fishing for some tapes and have stumbled across a 200 million dollar package from a major bank, But there’s a broker involved. Would you or anyone of mind have any interest in this?”

Here is my reply:

James, Dean here.

My 2 cents, for what it’s worth. By the way, your broker could be excellent and knowledgeable. If so, kudos to you for finding them. Ask him/her to get you what you want – whatever that may be. Or ask them if the seller would accept a carve-out in line with what your or your partners’ appetite is, even if it’s for 1 or 2 notes!

Now then, onto my soap box…

Before you spend time on any data tape or loan pool, you want to make sure that you understand with whom you’re dealing on the broker side. Is this a “Good”, “Bad” or “Ugly” broker you’ve got? If you don’t know what I’m referring to, review Step 1 “Finding Notes”, Part 2 (you can watch this Video for FREE) carefully on Brokers – then invest in yourself and buy our Biz-in-a-Box course.

Why?

Not because I want to make money off of you, but because you’ll learn what it takes to close a note trade.

So what?

Well if you know what it takes to close a note trade, you’ll be able to figure out if the broker you’re dealing with does as well, or if they’re just a POF/LOI/ABC contract junkie with no clue as to what they’re doing.

Welcome to the lucrative world of notes, where more and more people are getting into the game.

Not a lot of those people have much of a clue of what they’re doing, so you’ll probably be seeing more and more of these large note pools.

Chasing this broker and this pool could be a big waste of time for you (I’m 99% certain it will be).

Why? Well banks usually would send a $200m pool to established brokers and their established client base. So now the question is: is the broker you’re dealing with an “established” broker. Once again, knowing what it takes to buy, close on, and manage, notes, would help you to evaluate whether your broker is very good or less than good. Hence my recommendation to buy the A-Z Biz-in-a Box course I just put together (see How to buy Notes site for details – and watch hours & hours of it for FREE first, if you so please).

Let me put it another way – and please don’t take it the wrong way – this has NOTHING to do with you, and everything to do with the broker. If you were a hotshot broker who was a pro at brokering note pools, would you EVER send a $200M data tape to someone who was “unvetted” so to speak (e.g. someone who hasn’t closed on at least a $50M pool, for example – I’m referring to you here)?

I certainly wouldn’t – it’d be a complete waste of my time.

OR if I did, I would make damn sure to review the HELL out of that unvetted person before sending a tape through.

So ….

Did the note broker you’re in touch spend a lot of time grilling you/your partner on how many/how, etc. you’ve closed in terms of notes?

If not, you can be pretty confident that you’re dealing with an “Ugly” or “Bad” broker, in which case I’d walk away.

Those types of brokers usually end up wasting everyone’s time shoving large pools around with no clue as to how they’ll sell, who the seller really is, and creating paperwork for everyone involved.

My two cents, for what it’s worth!

My recommendation – spend your time on something that “makes sense” to you.

Follow your gut. Ask yourself – does this broker sound like he/she knows what they’re doing? Are they hiding behind POFs, LOIs, ABCs etc.? What was the last pool they closed. How large in terms of UPB, at what discount, how many loans, did the bid require fades, was it service released or service retained (e.g. test them here, based on your learnings – believe me – you can TEST someone after studying my How to buy Notes Course – I cover A LOT of useful info to SAVE YOU TIME in dealing with brokers).

Then spend your time dealing with people who are “real”. If this broker passes your sniff tests, then ask them for something that makes sense to you. Or ask them if the seller would accept a carve-out.

Don’t become another broker in the chain on some mega-million pool that you waste your time on. Chances are more than 50% that that pool is already traded by the way.

Regards,

Dean

PS: Check out our main site for lots more no-nonsenese info on How to buy Notes.