Quick question from Dean about speakers for the July 25th “Power Notes” workshop:

Most of you have challenges finding product, some of you have challenges finding buyers for your product, and many of you would like to raise more money for your business.

In order to best serve your needs, help me HELP YOU succeed.

We can have up to two expert guests on July 25th.

Which ones would be most helpful to you?

1. Note Finding Experts – Would you want to able to meet industry experts like Charly Phelan or Saprina Allen in person? Have the chance to ask them all forms of bank/seller related questions?
2. Finding Buyers – Would you want to meet Steve Cohen of Nautilus Capital or Sherry Nickels of Pinnacle Acquisitions to help you find buyers for your product?
3. Support Related Questions – Would you want to meet Kevin Kanuf, the founder of Statebridge, our servicer? To get the inside scoop on servicing, licensing, and asset management? Would you like to meet Ryan Tomazin the Entrepeneur/CFO of Integrated Asset Services, one of our BPO companies?
4. Raising Money – Would you want to meet a hard money lender for your note business? Or a prospective equity investor?

The point I’m making here is…whomever I end up having, you will be able to make a number of very valuable contacts that may very well propel you to the next level (or two) in your business.

These small group hobnobbing sessions amongst industry experts and fellow investors are what form the foundation of the most discreet and powerful business networks.

What will help you most?

Give me feedback and comment below. Please respond by July 2nd, end of business day.

Thanks,

Dean

First things first: I got a ton of emails from folks who got our news on the 40%-off special with Special Code ‘nofool’ too late.

So, we are leaving that up until Sunday Night.
CLICK HERE if you are ready to take action on that, and
use ‘nofool’ as Special Code. (Need further outside ’social
proof’ that my note buying course really works? READ THIS,)
****************************************

But back to why I am writing you:

I just got back from a distressed debt conference in
Los Angeles and some of the numbers we’re looking at
are enormous.

Check out this short Video I did for you to share some
of my note buying findings with you:

Here’s one estimate for the amount of distressed
whole loans (e.g. mortgages and notes that you and I
could buy as individual loans) in the note buying marketplace
today:

$3-4 Trillion.

This puts a lot of things into
perspective in terms of the number of transactions
that translates into for you and me and the entire Non-
-Performing buyer marketplace in the United States
today.

Buying Notes is something to take advantage of NOW – and with
potential FDIC financing, this could be very
interesting.

For those of you who are looking for some additional
insight (see the note at the end of this piece re:
another person’s assessment of the size of the whole
loan market – and note how wide ranging estimates
are!):
http://www.cumber.com/commentary.aspx?file=032909.asp&n=l_mc

Regards,

Dean

PS: Again, we are leaving the 40%-off SPECIAL up until Sunday night,
if it’s time for YOU to benefit from this market and leave the whiners and
nay-sayers in the dust.

Here’s a great tip from an investor that just hit my desk today.

Remember how I’m a fan of buying from Regional Banks for Finding Notes?

Well, Will out of Miami just sent me something that might be of great assistance to you – it’s a source for contact information (not for THE person responsible for selling notes, but for a compliance officer or senior executive) at every single licensed bank or mortgage lender in every single state – available by searching all 50 states’ licensing records for banks and lenders in that state so you can contact them re buying notes.

Very useful contact info to at least get you pointed in the right direction and talking to an executive (who can then point you to THE person to talk to in charge of selling bank notes) at any target bank or lender.

Just follow Will’s instructions below and you should have a nice list of bank contacts you could call to find notes (remember, it doesn’t matter if the person you’re talking to at first is not the right one -  you’re looking to GET REFERRED to the person who’s in charge of selling notes.

Use the person in the attached lists as a referral source and you should do just fine.

For a short video example of  finding bank contacts to buy notes, me getting through to some example people in the state of Nevada, check out the how-to-find-notes video below.

And here are Will’s Notes on Finding Bank Contacts to Buy Notes:

Go to http://thomas-law.com/

Scroll down there, right-hand side, ‘mortgage banker licenses’:

http://thomas-law.com/50states.html

Check NV, for example, then click on the link that says ‘Mortgage Lending Division’:
http://www.mld.nv.gov/

Left side: click on ‘licensee records’ link:
http://www.mld.nv.gov/LicenseeSearch.asp

Click on link ‘82 licensed mortgage bankers’:
http://www.mld.nv.gov/LicenseesBanker.asp

Hit a link: gives you principal’s contact info & email, etc.! Gets you the source.

Can do for 50 States!

Also, just another thought: keep in mind that each state has its own way of getting to that licensing info.
For example, If you go to the Connecticut web page you would click on “find a bank” on the left hand side.

From there, it would take you directly to the page where you would find all the banks and that important contact info (..btw, it looks like CT has approx 1700 banks listed -crazy!)

For other states, you would look under ”licensing”,  ”bank licensing”, or ”find a bank”.

It will just take some simple snooping around for each one, that’s all. But most will have similar search terms.

And now find those bank contacts & buy some notes!
Dean’s Note Buying Course has everything you need to know what to say when you are calling!

$2,000 for a $297 per month cash flow.

[Who said you can only buy POOLS of notes?
Who said you need a lot of m.oney to do this?]

Now that’s what I like to hear.

This is what Rick, a www.NoteBuyingProfits.com Student,
is receiving on the very first non performing
note he recently purchased.

Here are more of the details: Rick bought a 2nd
mortgage of $20,000 (so he paid 10 cents on the
dollar), behind a 1st worth $65,000, on a house that
he estimates is worth $130,000. So he’s at
approximately a 50% CLTV ($65,000 1st plus $2,000 he
paid for the 2nd, divided by the value of $130,000).

From Rick’s perspective, this is an amazing return on
his nonperforming note investment.

From the borrower’s perspective, Rick is a … well
actually Rick’s a saint from heaven.

Here’s the way Rick explains it: “The borrower was
actually getting foreclosed on [he had lost his job
and then found employment again, but fell behind]. So
he’s about $2,000 in arrears plus he was paying an
extra $50 a month due to a bankruptcy a couple of
years ago. ” Arrears mean how much he would owe to
bring the loan current.

So his borrower was behind on his mortgage, owing
over $2,000 on a $20,000 note. And he was also paying
$50 more than the original note payment due to a
bankruptcy filing that added an extra $50 each month.
So what did Rick do with this “deadbeat” of a borrower?

He cut him some slack.

” I said to the borrower, “Listen, I’m going to eat
the arrearage, I’m going to eat the extra $50 a month,
and you just pay me $297 a month and we’re going to go
back to the original note and I’m not going to
foreclose on you. “

The result?

The borrower made the first payment and Rick expects
to have little trouble with his remaining payments.

But how did Rick get there?

How did he get started in how to find notes?

Was it tough? Did it take a lot of time? Did he know
what he was doing? Are there more of these that Rick
can do?

===> Listen in this Wednesday, December 10, 2008 at
6pm PT/9pm ET.
Dial: 419-400-0202
Access Code: 468636#

I’ve invited Rick to share his experience
with you so that you can hear how a fellow student
went from the brink of bankruptcy (it’s true, Rick
almost filed bankruptcy himself), to receiving notes
unsolicited from 4 different people at a bank, and a
million dollar investment from a fellow investor. All
within a few short months.

And where does Rick go from here with his buying notes business?

“I’m really trying
to just get one or two a month now. My plan as I build
up is to just get one every other month and then build
up to one a month, one or two a month, like next year,
and start getting into larger pools.”

Step by step, Rick is building his note buying
business. And he’s starting with nothing.

Join us for this f.ree Teleconference this Wednesday.

We have room for 100
on the call, so be sure to be on it.

Again, it’s this Wednesday, 6pm PST/9pm EST.
Dial: 773-945-1010
Panelist Access Code: 260-435-355

You will learn about/from a Student who took * MASSIVE ACTION *
on the course materials of the A-Z Note Buying Course.

Plus you can ask ANY questions of yours.

Be your success.

Dean

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

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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If you really want to know the in’s and out’s of how to talk to banks to buy defaulted mortgages aka nonperforming notes, why not hear it direct from the horse’s mouth, so-to-speak?
 
I mean direct from a banker.

Make that TWO bankers.
 
That’s right….

Join me tomorrow (Wednesday) at 8pm EST, 5pm PST for a conversation with TWO bankers, Saprina and Janet (some of you may remember Janet from the ‘A-Z Profiting from Defaulted Mortgages Business-in-a-Box’ Course, others may have heard Saprina before in our Private Access Club – here is a brief snippet from our last call with Saprina to give you a taste).
 
So if you want to know anything about the following, then don’t miss out tomorrow:

* What are the first words to say to a banker to buy defaulted mortgages?

* Does it matter what language you use?

* The 3 Things never to say to a banker when buying defaulted mortgages

* The 2 Things always to say to a banker when buying defaulted loans
 
And if you want to test your phone calling skills, a few of you will get the opportunity to try a sample conversation with Janet and Saprina!
 
This could be the time that you perfect that banker call you’ve been dreading for so long.
 
Don’t miss it!

Short Sales aren’t going that well, aren’t they?

It’s NOTE BUYING TIME NOW.
 
Dean

PS: Again, here is the link to be on the webinar/call tomorrow.
(If you see this after the fact: no worries – all recorded!)

You know, it’s amazing how the little things sometimes add up to a big deal for your borrowers.

What do I mean?

Well, let me tell you two little stories about Judy and Natalie, both of them borrowers in our portfolio.

Natalie pays regularly and on-time (hers was a performing 1st mortgage that I bought in a pool of non-performing mortgages), and she owes us approximately $93,000. She pays $680 each month, like clockwork, but right around the 5th of the month – her payment is actually due on the 1st.

So, when I called Natalie for the first time, guess what her biggest request was? She asked me sheepishly if I might be able to push her payment due date back from the 1st of the month to the 7th of the month so that her paycheck had time to clear in her account!

Why is this important – or even relevant to making money as a note investor?

Because it points to one simple thing in today’s market, and in human relations – EVEN when it comes to people’s financial relations.

It’s sometimes the little things that matter the most.

So when Natalie popped the question: “Dean, would it be possible to somehow extend my payment date to a few days later to allow my check to clear?” I answered her: “Sure. What date would like to be your new due date?”

“You mean, you CAN do that for me?” She sounded incredulous.

“Just like that?!”

Wow. Eye-opener for me in this note buying business, I tell you. That something as simple as changing a due date could make such an impact.

Needless to say, when I asked Natalie if she’d be interested in refinancing her note and asked if she’d mind if I put her in touch with someone on my team who could help her explore a refinance, she provided all the information that was asked of her immediately.

How to Buy Notes Lesson learned: listen to what your borrower wants or needs, and then, to the extent that you can deliver on that, do it. You’ll build a sense of “I-owe-you-one” from your borrower that might get you out of a deal.

Natalie isn’t refinanced yet, but I thought I’d share this little insight into human affairs with you.

And here’s a second little story. This one just happened to me today.

Judy called from Tennessee – she has one of the thickest accents I’ve ever heard.

And it’s … well there’s only word for it it’s “delicious.” She has such a sweet drawl it’s amazing. I just smile whenever she calls.

Funny, but you know how it is – there are some voices that just click for you – well hers is one. Now she’s pushing 65 and has 3 grandkids and is happily married … so I’m not talking THAT kind of sweet, but you know what I mean.

Anyway, guess what the first words out of Judy’s mouth were?

“Dean, I owe you all a HUGE thank you for paying my taxes.”

I was at a loss. Taxes? I quickly searched for her file online in my database. Ah yes, two weeks ago we’d run a tax review update (we do this the last business day of the month, calling the tax assessor’s offices on all of our loans to confirm status and amounts), and decided that it’d be best if we paid her 2005, 2006 and 2007 taxes current.

We advanced it to her loan obviously (property taxes advanced by you can be charged to the principal of the loan), and since her note rate is pretty high, we get to accrue interest on that advance. So from my perspective, it was both protecting our interest as well as making a smart business decision that would make us money.

And from hers, it was the sweetest and nicest thing we could have done, because we were “looking out for her”. The actual words she used with me were: “Dean, I want to thank you for helping me keep my house. I’ve been here 20 years and now I’m finally caught up thanks to the patience you’ve had with me.”

I was floored. Absolutely amazed at how a simple decision to protect our note position, pay the taxes owing so they wouldn’t fall further delinquent and threaten a tax deed sale (Tennessee’s a tax deed state, not a tax lien state – more on that in a later post), could be perceived by the borrower as a generous move to protect her own interests.)

Wow again. It was wonderful to sit there and bask in the praise that she was heeping to me over the phone. And it really was touching, I have to admit. I felt wonderful the rest of the day today only because it’s not that often that I get such warm thanks from borrowers when buying notes.

And I also learned today how useful it would be to explain advances to pay taxes and insurance for any other borrower in terms of helping to “protect their home” and to “help them to protect their home”.

The old adage win-win-win isn’t that much of a cliche now, is it?

Not when you look at what Natalie and Judy taught me.

More soon,

Dean

PS: More posts to come on how to buy notes.

I get asked all the time ‘But, Dean, how do I find non-performing notes?? Do banks really sell notes to individuals?”

One person just told me “hey, I walked into my local bank branch and asked if they had non-performing notes for sale and they told me “no, we don’t sell notes.”

Well, if you want to get serious about figuring this out – AND shortcut your learning curve dramatically: it’s all in my ‘How to Find Non-performing Notes Course (4 hours+ jam-packed information on exactly the subject of ‘how to find non-performing notes’).
You can watch the first 2 HOURS for absolutely FREE. Take a peek:

If the bank doesn’t have either of the first two departments, then make sure that you aim straight for the top of their loss mitigation department – you don’t want to get stuck in mid-level manager hell.

And then once you get that person on the phone – tell them that you buy non-performing notes, anything 90 days or more delinquent, tell them where you typically buy notes, and if they ask you for what your typical pricing is, tell them you can price up to, say, 85% of UPB (unpaid principal balance). (You don’t want to kick yourself out of contention for buying notes when you haven’t even gotten a foot in the door, and if the bank’s asking about price, make sure that you convey that you don’t skimp!)

As to the secret of how to get through to the right person – and what it REALLY takes to break through to that bank representative: it’s covered in detail starting at minute 11 of Part 3 (the third hour) of my ‘How to Find Non-performing Notes‘ Course.