You’ve probably heard of Sun Tzu’s (the famed Chinese
warrior) instruction to his soldiers to “know your
enemy” before going into battle.

Well the same is true with note buying.

“Know your seller” should be the mantra for every
note buyer (and broker for that matter!).

Why?

Because if you don’t “know” your note seller then you
might be entering a negotiation with them without
having any idea of their key negotiating points.

Let me give you an how-to-buy-notes example,
based on a note we recently bid on:

A bank has a 1st mortgage on a single family home in
Salt Lake City that they want to sell.

The borrower hasn’t paid on the note in over 120
days, and the note matured over 2 months ago, so the
whole loan could be called due.

The bank hasn’t served the borrower with a
foreclosure notice.

And they’ve called you in order to find out if you
want to buy their non-performing note and mortgage.

I looked at this loan first from the standpoint of
price – how much could I offer for it. We pulled a
title report and a BPO and looked at comps that a
local realtor provided to us.

And we put in our bid.

My rep at the bank hinted that she would need
approval from a committee of senior staff at the bank.

But she was very cagey about answering any of my
questions about where she needed pricing to be in
order to sell, and what the status of the borrower was.

I became a little suspicious and tried probing for
more information, but she immediately clammed up and
said: “I’m not at liberty to say more about our
borrower.”

Something was up in this note buying deal.

It was odd that the bank rep would react that way -
in fact it was the first time I’d seen that kind of a
response to an individual loan before.

How-to-Buy-Notes Tips when talking to the Banker

So I called her back again, and tried a little
“exploratory” language with her.

“Would it be safe to say that the bank has a unique
relationship with this borrower?” I asked her?

“Absolutely,” she immediately replied.

I was curious – what was going on here
in this defaulted mortgage deal?!

So I kept fishing, understanding full well that she
couldn’t reveal any information to me, but that she
wasn’t opposed to my pressing for more information as
long as she could answer in yes or no terms.

“And there’s a reason why the bank isn’t foreclosing
in this case, correct?” I asked.

“Yes,” she answered simply.

“And you’re probably not at liberty to tell me, but
this sounds like it’s a difficult relationship for the
bank to foreclose on, is that correct?”

“Absolutely,” she answered again. “I can’t tell you
any more than that.”

“One last question,” I asked. “Is it safe to assume
that the bank may be more open to a bid on this loan
that clarifies what exit strategy we’ll be pursuing
with the borrower rather than an actual purchase price
for the nonperforming note?”

“Yes,” she answered briefly again. “That would be
correct.”

So what was going on in this note deal?

Well, what I learned in two more phone calls with the
woman I was negotiating with at the Bank was that the
borrower was extremely well connected in Salt Lake
City political circles, and her ex-husband was a close
friend of the bank’s President.

Foreclosing on her could create a political ruckus
for the bank, it turned out. So the bank was exploring
discreet options to rid itself of its non-performing
loan – namely via a note sale to a 3rd party investor.

——————————————————-
* The lesson you should take from this How to Buy Notes example *
——————————————————–

If you don’t take the time to probe WHY the seller is
looking to sell a loan, and the circumstances around
the sale, you may completely miss the seller’s key
negotiating points on a transaction.

In this case, it wasn’t price. It was what we were planning
on doing to work out the note with the borrower.
Price was much less of an issue.

Your how to buy Notes Action Items from this:

1)    Always try to understand WHY a bank wants to sell
you a note or a pool of notes.

2)    Try to find out what the key negotiating points
are for the bank for selling you this defaulted mortgage

Usually it’s one or more of the
following:

a.    Price

b.    Speed with which you can close

c.    Your ability to close (in other words, the Bank
cares more about WHETHER you can close rather than
what price they Buyer is offering for the discounted note)

d.    Your note buying exit strategies (in other words, the
bank may determine whether to accept a bid or not based
on what kind of Buyer you are – are you a foreclosure
operation with no attempt at loan modifications, for
example?)

So keep all this in mind when you’re next talking to
a Bank to buy notes.

It’ll make you that much better a note buying warrior!

Talk soon,

Dean
PS: If you enjoy this kind of no-fluff info, you will be delighted
with our A-Z NoteBuying Course. It’s full of it!
(And our insane 33%-off Special will not go on forever. Hint, hint.)

And to say it in the words of  Josh Gray
from UpgradedProperties.com in Chandler, AZ, who put the
following (unsolicitedly, I might add) on our forum:

“Dean, I truly appreciate all the information you have provided in
the A-Z Course. I have read ALL the competition’s materials and
it comes nowhere near yours.”

Here’s something valuable & inspiring for you.

As much as I can tell you about my own note buying successes…
I believe it is actually a lot more powerful and ‘real’
for you when I share other NoteBuyingProfits Students’ success
stories with you.

Folks like you, who took the exact buying-discounted-real-estate-notes
roadmap I laid out, studied it, and then went on to take MASSIVE
ACTION and implemented this newly-found knowledge.

So, here is the first Note Buying case study of a new
series we are starting:

* The ‘NBP Student Success Story Series’ *

This first one is with Rick from North Georgia.
His REI club buddies were laughing when he started getting
into note buying – listen in to find out who’s laughing now…

* MP3 Audio recording

* PDF doc with the transcription, if you prefer
reading

Right-click & ’save as’ both links to your computer &
listen/read it at your convenience.

Some notes on the content:

“I’d like to order a $297/month check for my $2,000
investment, please!”

It may sound like small money, but what happens when
you do a lot of small deals?

They begin to add up.
(Especially if you don’t have to waste any time on finding
deals anymore, because you created one single RELATIONSHIP
that keeps feeding you disounted real estate notes!)

And when you hear about the returns that Rick’s
getting on his first note deal, and what he’s just done on
his 2nd deal, you’ll see what it means to be able to
buy – and succeed in – non-performing notes.
—————————————————
* * * Some Note Buying Take-aways from this call * * *
—————————————————

* the secret to understanding the banker

* how to get 4 bankers to send you leads on loans
they want to sell, on the night before Thanksgiving
(this is happening NOW – I just received two more
pools today from banks wanting to close by end of month)

* how to buy a $19,000 mortgage for $2,000

* how to convince a borrower to pay you $297/month
for an investment of $2,000, FOR THE NEXT 9 YEARS

All from someone who, like YOU, is getting his feet
wet in buying discounted real estate notes.

Oh, and I forgot to tell you – Rick is the perfect example
of how to make m.oney with very very little money.

His story is the classic
“I succeeded with $2 in my pocket” type of story.

It’s all here ….

Dean

P.S. If this inspires you to make a change in your own
cash flows during this holiday season, and to take
steps to take control over your career, we’d like to
help you get there.

Starting today, until January 1st,
we’re offering the A-Z Buying Discounted Real Estate Notes Course, our
16+ hour course that Rick studied (listen in the call replay to the
parts that he benefitted from the most so that you
know where to really focus!), at a whopping 33%
discount – use *SPECIAL CODE* ’santa’ on the order page!
And if that is not enticing enough: for the first
five orders, we’ll throw in the Advanced Version of the
‘How to raise money toolkit’ (a very real $597 value
in itself) as a F.REE bonus….

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

* 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

* 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!)

Do you remember that 1981 hit from Men at Work called
“Land Down Under?” (OK, so I was a big Men-at-Work
fan, I admit.)

Well, what made me think about it was this email that
I just received from a Korean by the name of “Joe”
(that’s what he goes by, I kid you not).

How is this related to buying Notes? Because Joe told
me a little story today that demonstrates one of the
most important lessons in the world of ‘how to find notes‘:
RELATIONSHIPS MATTER

In fact, not only do relationships matter, but
“commonalities” matter. In other words, what you want
to do when you’re looking for notes is to find out
ways to build ties with your seller.

These can be social, cultural, sports-related,
geographical, you name it. Almost any activity, sport,
hobby, pastime, event, book, play, food group or
Australian rock band can be a point of commonality.

Let me share with you Joe’s little gem of a ‘how-to-find-notes‘
story to demonstrate.

Here’s what he wrote to me today:

** I am the owner of Korean Investment club, but we
are not ready to think about buying notes yet. ( for
lack of understanding)
I was solicited last week from big Korean bank to buy
the note from the person in charge of the note.
He ask me to offer any amount for the first trust
deed with face amount of 2.5MIL or more (including
interest will be 2.7 Mil)
Collateral behind is the 79 room big motel with
restaurants. I am really interesting to buy it,
because I know it’s worth around 4MIl.
Is there any way to make it through.
Thanks for your advice.

So what are we looking at here?

We have Joe – the leader of a Korean Real Estate
Investment Club located here in th US. And we have a
big Korean Bank. And that bank has just sent a pretty
interesting lead to Joe.

Does Joe know anything about buying notes?

No – he admits as much in the first line of his email.

So do you think that he pitched to this big
Investment Bank that he would be the perfect guy to
buy their notes?

No – this opportunity just “landed” in his lap. And
from what he writes, they’re offering to him to make
“any” offer on that note.

Now for a moment, I want you to stop focusing on the
fact that Joe might actually be able to offer some
fantastically low bid on this note, like $1Mil, and
actually close this deal with this bank. That could be
incredible, yes, if the value of the collateral is
really $4Mil and if the borrower’s not performing on
the note and Joe can foreclose on the motel.

But hang on a minute. I want to point out something
that is so simple that you probably glossed over it
already, thinking that you’re supposed to be looking
for something complicated.

What kind of a bank is this? Korean. And where’s Joe
from? Korea.

So the fact that this note, which is on a California
property, happens to land in Joe’s lap, should
actually come as no surprise.

Very simply – banks often want to sell notes to
people that THEY CAN TALK TO.

And sometimes, the people they can talk to look like
them, talk like them, act like them, do business like
them, live like them, and entertain themselves like
them.

Chances are: even if I were Mr. Well Known Note
Investor and I found a way to that Korean Investment
Bank, I would probably NEVER GET THE SAME RECEPTION
AND CREDIBILITY that Joe has.

You see, they’d RATHER deal with him than you or me
because Joe is one of them in a way that you and I
never will be. So the process of “getting to know one
another” for Joe and this bank will always be a whole
lot smaller than the same process for your or me.

So get out and start applying this Note Buying Tip
101.

Find the Commonalities between You and your
Sellers.

Go find someone who speaks-a your language, and then
see if they have Notes for sale.

Talk soon,

Dean

I hope you enjoyed your turkey on Thursday!

If you are following along in our 8-part Webinar Series on
how to get you jumpstarted to buying your first note
as part of the Private Access Club (PAC) (f.ree 30-day Trial,
hint, hint), here’s an

* * * How-to-Buy-Notes EXERCISE FOR YOU TO REVIEW * * *

Find out as much as you can about what (and who)
is on title for:

43 Poplar St, in Old Town, Maine

Follow the instructions in Appendix B: the Title
Checklist from the Roadmap that you receive as part of
the A-Z Note Buying Course (in case you
haven’t ordered it already – you are getting 25% off
until including this Sunday with SPECIAL CODE ‘tg’).

Actually, I just realized that the title check list is part
of the free excerpt of those 23 pages worth of
check lists in the course.

So, check our Note Buying Checklists.

And in the coming week’s Private Access Club Session
we’ll review this together and compare results.

===> This is your opportunity to learn how to review
title on a property, and to compare notes with me as
you go.

Learning how to buy notes BY DOING.

Remember, this is the 2nd step of 8 in launching
yourself into Note Buying. Step by step.
(And all previous webinars are neatly stored in the
PAC members area for later review for you…)

And in case you don’t have the A-Z Course and want to
follow along without it, not a problem
(though you won’t get as much out of it).

Going through these steps is a VERY useful exercise.
Guaranteed.

So, join me next Wednesday at 5pm.

(Want to get a taste what those how-to-buy-notes webinars are like?
Check out the week 1 webinar on ‘How to Determine the Value of any Property’.
Accurately – without leaving your couch…’
93 minutes of no-fluff info for you. Absolutely f.ree.)

Somebody will buy those non-performing loans and profit
from them. May as well be you and me.

And there are more nonperforming notes around than any one
person or entity can handle these days…

Talk soon,

Dean

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

* Check out our NEW Note Buying Forum

* Ready to REALLY get down & dirty?

‘A-Z Profiting from Defaulted Mortgages Business-in-a-Box
-> 16 hours+ of Video Training, 23 pages of Note Buying checklists, a complete 8-Week How-to-Buy-Notes 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

* 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!)

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

OK, so the word is out, the Doctor is in, and the medicine is … loan modifications. Specifically, principal write-downs.

Interesting.

The Hope for Homeowners initiative passed by Congress in July and officially launched a month-and-a-half ago to much acclaim, is a potentially positive FHA insurance package aiming to insure $300B of new mortgages for borrowers in a “negative equity” position.

Negative equity, of course, meaning that the loans are worth more than the home.

So … what’s the catch?

Well, the borrower has to qualify with a 31% or lower DTI ratio, at least 6 payments made and none of them late.

What do they get if they meet those magic criteria? (Oh, by the way, if I had to hazard a guess at the average DTI for loans originated in 2007, it would probably be 40-45%).

So, who’s going to qualify?

The answer is: very few people.

In the first 2 weeks of the program, exactly 49 people applied, and … none were approved.

And as for the highly touted FHA Secure program (remember that one – the one that was supposed to be the saving grace for borrowers who had missed a payment – well during the same period a total of 203 mortgage applications were filed and 49 approved.

In that same time in California, approximately 1,300 homes saw a Notice of Default filing.

So what’s the big deal here? Can’t we just give the H4H program some time?

Sure.

But remember that lenders are going to be looking for federal backing for their principal write-downs if they’re going to be participating in these 90% principal reduction plans. H4H is one of them.

So, while everyone’s waiting for the good news on H4H to come out, why not get your wallets out and make an offer on those 49 non performing notes that were just turned down?

There will be a whole lot more non-performing notes (to buy) where those come from.

Talk soon,

Dean

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

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

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

* ‘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

* 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!)

In case you missed our f.ree note buying webinar last Wednesday on
‘How to Determine the Price on ANY  Property in the US – without leaving your desk‘:

You can watch this How to Buy Notes Video buy clicking HERE.

It is part of an 8-part series as part of the Private Access Club.

It is all about how to implement the Note Buying Roadmap Document that came with the A-Z Note Buying course.

I am taking you by the hand and we spend 90 minutes on each week of the 8 weeks in the Roadmap.

Here’s your chance to have me ‘handhold’ you through it – and you being able to watch me go through all the assignments of it.
And, of course, to ask me any ‘how to buy notes’ questions on it you’d like. LIVE.

Enjoy the replay (it applies to any part of Real Estate Investing, not just buying notes…), and join me for the rest as a PAC member…

Remember, there’s a 30-day f.ree Trial. So, not much risk there.

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

* 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!)

There’s an old Romanian saying: “Only the foolish learn from experience – the wise learn from the experience of others.” 

It’s appropriate because it shows how one of my brightest aspiring note buying investors in our Private Access Club right now, let’s call him “John”, could use a little of that Romanian wisdom.

The reason I’m sharing this with you is so that you don’t make the same mistakes when learning to buy defaulted mortgages that he’s making.

[Note to "John" - this is not meant to humiliate you, consider yourself an example of what most of us do or try to do in real life - cut corners. We all do it, I'm just using you as an example to make a point.]

John (not his real name) is one of the most dedicated to all of our content – he’s in the Private Access Club every week, he asks questions, and he’s just received his first data tape, and he’ll probably be buying his first note soon.

But he’s completely missing the point that the old Romanians would chide him for: he’s not using “the experience of others.”

What do I mean?

Yesterday, John sent me a pool of defaulted mortgages that he’s brokering to me (you always have that option, by the way – the agreement that we’ll sign between us and that will protect your relationships that you bring me, is right HERE – beware of other note buyers out there promising you commissions and essentially wanting to “steal” your bank relationships).

And he writes to me: “Also, feel free to use my labor at no charge to assist you in whatever way needed to progress the deal.   Ideally, I would like to learn from the experience as much as possible.  However, I will defer this decision to you.”

Here’s what I wrote back to him:
___________________________

John,

We’ll move forward with this pool – but here’s something I want you to think about.

I’ve taken the time to lay out everything that I do in minute detail, for guys like you who are hungry to learn. You heard Vic on our Private Access Club call the other day – he said he’s gone through Steps 2-4 of the A-Z Profiting from Defaulted Mortgages Business-in-a-Box Note Buying Course exactly THREE TIMES now in order to prep himself to talk to banks, and to demonstrate that he knows what he’s talking about so that he can talk about the exit strategies, negotiate a close with the bank, and price his nonperforming notes right.

He is WAY beyond you right now, just from having been exposed to what the banks are looking for, what the documents are that they’ll be sharing with him, and what some of the basics of a bid are.

You will get much much more from what you and I are able to go through together on this bid, for example, if you get and study the A-Z course. I promise you.

This isn’t a sales pitch – it’s an invitation to learn everything that goes BEHIND the bid to the bank, and the detail of what happens IN the bid to the bank and IN the negotiations with the bank, but BEFORE it happens.

And, here’s the most important part – to make the best use of the time that you and I have together on this bid (and others).

What do I mean?

If you get the basics out of the way and study the A-Z 16-hour How-to-Buy-Defaulted Mortgages Course, you’ll have a ton of more educated and informed questions to ask me and to review, rather than some of the basic questions that you probably have now because you haven’t seen the entire note buying process in action.

Vic’s no dummy – there’s no way that he would spend that much time (36 hours!) reviewing and reviewing content that I’ve created if he didn’t think that it could help him. And look where he is – on his own, negotiating with banks directly and getting defaulted mortgages pools.

I would never, ever, in a million years, have spent sooooo much time putting this 16-hour Note Buying course together if I didn’t believe 200% that it would really inform and help the people who took it, to launch their business, like Vic’s doing. 

So now, when you come to me with a note pool that you’ve worked I’m sure very hard to be able to receive, I’m more than willing to spend some time going through this to bid on it ourselves.

But here you are asking me how you can learn from me and you haven’t even taken the step that I spent hours and hours and hours of my time (I spent about 3 hours prep for each hour of content that I’ve created) putting together something that is EXACTLY intended to be able to teach someone like you what this defaulted mortgages business is like!

And you don’t even do me the courtesy of accepting that I’ve created this specifically for what you’re asking me.

It’s as if you’re coming to me to ask me what the best way to learn the how-to-buy-defaulted-mortgages fundamentals so that you can launch yourself to find and buy notes as fast as you can, and when I put something in front of you and tell you – “well, this is what I’ve put together using my own note buying case studies and experience specifically to help you launch yourself to buy defaulted mortgages, you should study it” – you say “yeah, yeah, what else?”

Don’t shortcut your own launch speed to arrive at buying defaulted mortgages.

You’ll end up firing on 2 cylinders instead of 4.

I can tell you’re hungry and want to learn, but I’m totally lost as to why the A-Z How-to-Buy-Defaulted Mortgages Course doesn’t make any sense for you. It’s the most systematic, content-rich, case-study loaded defaulted mortgages and note buying training that anyone will ever give you in this field.

Do yourself, and me, a favor, and get yourself up to speed on the note buying basics so that when you and I do interact, I don’t have to take the time to explain any of that, and you can really jump start your new note buying/brokering business.

Dean
__________________

Back to my post to you here:

Here’s my point: if you can learn from someone else’s experience, DO IT.

It’ll save you time, money, and energy.

In this case, I’m inviting you to learn from my own experience in order to launch your how-to-buy-defaulted mortgages business. That’s what the 16 hour+ Note Buying course is, really, it’s an opportunity to leapfrog a number of tedious steps as you get started.

You’ll shave months off the time it takes for you to: raise m.oney, find nonperforming notes, buy your first defaulted mortgage, and grow your replacement JOB.

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

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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.

The markets are going crazy and the Dow’s down to 1998 levels (yikes – hopefully you got out before the fall – I told all my family friends to go cash back in February of this year, so we’re doing OK as long as the mattress holds up).

So what does this mean for you in terms of buying defaulted mortgages?

Will Treasury snatch everything up?

No. There will be plenty of non-performing notes to buy. There is just too much bad paper circulating right now.

And regional banks and other smaller institutions, unlike Wall St broker/dealers, have a “normal” selling cycle that keeps putting paper out to bid every month.

Those are a great starting point for you.

For more info on the market, where to buy notes, who to target, and what the implications are, click on the note buying video below! (This is a snippet from this week’s Private Access Club webinar/conference call – where you can get ongoing training & support for your note buying business. Check out the 30-Day FREE Trial! It’s a great community! You can watch the full 90-MINUTE replay of this webinar in the members area, as well as TONS of other recorded note buying training sessions, interviews & role playing sessions with bankers & lots more).

OK, so I’m a victim of my own critique.

I admit it. I failed.

These past three weeks, I’ve put in bids on note pools and never even followed up. “I’m so busy that I’m just working too much,” is always my excuse.

Managing staff, reviewing new offers, handling tricky borrower calls where needed, reviewing financials for the fund, lining up Q&A sessions with the best people I can find in the note world, answering the never-ending questions from PAC members etc. etc.

So what happened?

Well, the basic rule of “polite persistence” – the process of following up and following up and following up with a new bank relationship in order to build it to the point where it takes off … just went out the window.

My mantra (to me AND to you) for today is … KEEP AT IT. (By the way, I prepared a short 3-minute VIDEO for you on this topic - SEE BELOW – which comes straight out of my 16-hour ‘A-Z Profiting from Defaulted Mortgages Business-in-a-Box’ Course!)

If you want to open a door to a bank, you have to learn how to knock.
If you want to open a door to a bank, you have to learn how to knock.
If you want to open a door to a bank, you have to learn how to knock.

Imagine you’ve just arrived at a huge castle. And you see some lights on in an upper floor window.

You knock once.

No answer.

You knock again.

No answer.

You knock louder this time.

Still no answer.

“Do I just leave?” you wonder out loud.

No … you see the light on and you hear sounds of pots and pans coming from another window.

So you bang on the door.

And you bang some more.

And you throw a pebble at one of the upper floor windows to catch someone’s attention.

You KNOW there are people inside and you’re just DYING to get in.

WAIT.

You hear noises. A door opening and closing.

Someone finally heard you!

But now what?

What do you say when the butler shows up at the door? “What took you so long?!”

Of course not.

Instead, you answer politely: “Good evening, I was wondering if I could …”.

OK – so enough with the story and back to polite persistence here..

Think of the castle as the bank.

You KNOW there is someone inside who can help you.

But you don’t get through just on one knock.

So keep knocking.

And then think of different ways to knock.

As long as you THINK there is someone in there, keep at it.

What have you got to lose?

Nothing less than a potential relationship that could bring you lead after LEAD AFTER LEAD.

Dean