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Power Notes Workshop Survey

notebuyingprofits.com — Tue, 30 Jun 2009 20:12:02 +0000

Power Note Workshop tailored to YOUR needs…

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?

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?
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?
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?
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

Want a free ticket to the Power Notes Workshop? ($897 value)

notebuyingprofits.com — Thu, 25 Jun 2009 14:56:56 +0000

NOTE: deadline for entry has been extended to Friday, July 3rd.

Want a “scholarship” to spend the day with me?

I’m hosting a Power Notes Workshop in San Francisco next month (on July 25th) that’s designed to “turbo-charge” your note buying business and give you access to a small, elite group of other deal-makers and entrepreneurs.

The cost of the program is $897, but I’m offering two full scholarships to attend the event. Here’s how it works…

Since the difference between success and failure is often the willingness to take action, I want to reward those who learned something from me and implemented it in some way–big or small. So, if you send in one of the best implementation stories, you’ll get a $897 ticket to this event.

>>>Here’s What To Do…

Tell me the story about a concept or technique you learned in one of my videos, articles, or other resources, how you implemented it, and the results that you achieved. This isn’t necessarily about who made the most money (although that’s not the worst thing that can happen).

It’s about who took what they learned, put it into action, and got results.

I will be judging the entries personally, and choosing the two winners myself… and announcing them in a few days .

As I said, I’m going to give away two tickets to the full-day Power Notes Workshop held in SF on July 25th, plus a special “surprise” bonus, a value of $897+ EACH.

The winners will be announced next Wednesday, July 8th… and hopefully you’ll be one of them!

So tell me your “Speed Of Implementation Success Story” – and good luck winning one of the two tickets to the Power Notes Workshop!

NOTE: Put your story in the “comments” box below, and only submit your story ONCE (it will be individually reviewed before being posted, and won’t show up immediately). If you need to leave out certain details for business or personal reasons, that’s okay.

So take action now–and get those implementation stories in!

Looking forward to reading these…

Dean

How to Broker Notes – Tell me what you want to know…

notebuyingprofits.com — Wed, 18 Mar 2009 16:23:22 +0000

On how to broker notes:

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.

How to Broker Notes – Killer Note Broker Webinar Replay for You…

notebuyingprofits.com — Sun, 01 Mar 2009 13:43:43 +0000

Regarding How to Broker Notes:

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.

How to Broker Notes and Get Started in the Note Buying Business – The Right Way

notebuyingprofits.com — Fri, 07 Nov 2008 11:50:19 +0000

On brokering Notes/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

Note Brokering of Defaulted Mortgages and on “Turnkey Investment Programs” (NOT?)

notebuyingprofits.com — Wed, 22 Oct 2008 21:35:54 +0000

Warning – this is a memo on the Art of Note Brokering. It was prompted by a note broker friend of mine who recently sent me a one-line update on what he had available for me:

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”.

So, being the perennial s***t tester, I decided to run some numbers to try to figure out what kinds of “deals” these could be. I cobbled together some logical assumptions in order to see if I could understand it.

Back-of-the-Envelope Calcs

$100,000 purchase

20% Down Payment

2% Closing Costs

22% or $22,000 – Down Payment plus Closing Costs

10% or $10,000 of Down Payment rebated at close (one common way to rebate this would be to have the purchase price “inflated” by $10,000, so now you have a $100,000 transaction, in which the seller accepts $90,000 and the remaining $10,000 is funneled to the buyer outside of escrow – often doesn’t show up on the HUD, which is questionable practice – there are other ways but this is a common one)

$12,000 Cash out-of-pocket

Reason for the FICO requirement is that obviously the “investor” is qualifying for a loan, most likely brokered by the “seller” or a company related to the seller (wonder how many points they charge out of curiosity).

Assume a 6.50% rate on an 80% 1st mortgage – it’s an $80,000 loan. Now, here’s the tricky part – what KIND of loan are these guys putting the buyer into – hopefully it’s full doc fixed rate financing (cautious and reasonable – look at default rates on fixed v variable rate financing and there’s more than a slight skew towards ARMs). Chances are it’s an ARM with an IO payment to minimize the financing cash flows. But let’s give everyone the benefit of the doubt and say that it’s fixed at 6.50%.

So now, what you’re looking at is a monthly of $514 (assuming 30-yr amortization – though these guys probably push for 40), not including taxes and insurance (do they include T&I payments, and do they escrow for those when they’re setting you up as the buyer?). Taxes, let’s assume for simplicity, would be 1% of acquisition, so that’s $83/month, and insurance could be another $20 or so, so that’s about $617/month.

But wait. Since I’m not really managing my rent, there must be someone who’s being paid a property management fee, right? Well those fees can typically be 10% of the collected rents.

Now then, let’s define “positive cash flow”. The fact that this investment strategy is marketing “positive cash flow” rather than yield, the way an enlightened investor would think (I’m showing my bias here, and why understanding returns is crucial to your success as an investor in my opinion), means that this investment is most likely throwing off a few dollars, rather than a juicy spread.

So to be positively cash-flowing on this property, you need to be bringing in something north of $650 or so/month. So net of a property management fee of 10%, that would mean rents of $722.

But wait! Just to play it safe, since that’s the type of investment strategy being proposed here (a “safe” alternative to your market chaos), then we should probably build in a vacancy rate of maybe 1 month every 2 years. So that’s a 4.2% vacancy rate.

OK, so I discount my rent down by 4.2% – call it 4%, so that means I have to get rents of $752 / month. In certain markets I’m sure 1-bedrooms or 2-bedrooms can fetch that kind of money, easily. And in some others, I’m sure that that’s pretty tough to do. But this should be, by my very simplified calculations, what the rent should be in order to support a “positive cash flow” claim.

A Note on Rental Predictions

The challenges with these REO plays is that you’re not quite sure what the rental market is doing where Foreclosure volume’s pretty high. We’re seeing tenancy rates drop, leading to rental drops, in certain markets (completely counter-intuitive here), because some people move in with family, and because continued Foreclosure volumes lead to an increase in REO inventory whose only buyers are investors seeking what … rentals. Therefore, rents are staying soft in certain markets.

So the “guarantees” of cash flow in these investment strategies are iffy – the only way to make them “solid” is to actually have lease agreements already signed. Could well be, I’m just pointing out one risk to the cash-flow model.

And then, what really intrigued me in the email I received from this company selling the “Turnkey Investment Strategy” was something they termed a “guaranteed buy out” where you can get 1/2 the appreciation. Interesting. So the seller’s really selling a put option on the property. So it would be really interesting to read the language of that “guarantee” and what you’re being ”guaranteed”. If I were to hazard a guess I’d say that there’s no strike price being locked in with that put, but rather a time frame (e.g. we’ll but it back in 24 months), and a notional cost to the option (and we’ll give you 1/2 the appreciation). So if there’s no appreciation (the forecast for price growth over the next three years according to Zandi over at Economy.com is flat over the next 3 years), then are they saying they’ll buy it back at cost? And if there is appreciation, then you’re essentially signing something now that costs the Seller nothing, and gives them 1/2 of some future “upside”. Wow. What a deal. For them It’s only a deal for you if the future buyback price is actually defined now. More than likely, it’s some funky equation to the Seller’s benefit.

Me, skeptical?

What it sounds like to me is a deal to take market value of an REO ($90,000), inflate it by 10% and get a lender to finance that incremental price to facilitate a cash-back (potentially illegal) to buyer situation, with a claim that “rent will cover the mortgage payments” but perhaps on a loan that’s an Interest Only loan, and on a loan that doesn’t escrow for taxes and insurance.

That alone worries me.

The further claim of guaranteed buyback strikes me a great little scheme altogether. Noone in their right minds guarantees anything – not in this market, not in any market. So what’s happening there is that you’re being invited to “part” with 1/2 of your future gain in some fashion, and potentially still be on the loan (or there’d be some other Credit Buyer Sucker lined up to take you out).

So my question to all Brokers out there: do you know exactly what you’re pitching? Have you seen the numbers?

Because if you don’t know the structure or the numbers inside and out, then you’re part of the problem rather than the solution.

THE BEST BROKERS HAVE ALL WALKED THEIR TALK. If it’s such a good deal, why wouldn’t you do up to 4 of these yourself?

You may know all of this, and I’m just preaching to my keyboard. And that’s fine.

But if you don’t, do yourself a favor and learn the intimate details of what you’re brokering so that you can inform and educate your buyers.

For a lesson on excellent brokering – I want you to listen to Steve Cohen at Nautilus revealing his skills and his trade: Here is a quick note broker extract of a 93-minute Question and Answer session I had with him last month as part of our Private Access Club (which you can try for 30 days for FREE).

Really listen to Steve’s words there, right at the beginning (I am paraphrasing here):

A GOOD BROKER SEES THINGS THAT ARE UNREALISTIC IN A TRADE.

A good broker is like a good waiter or waitress. Imagine walking into a fine restaurant (you’re an investor looking for deals), and you are seated and given the menu. Your waiter comes up (”brokering” food to you – helping you to choose if you need help) and you ask him “What can you tell me about the duck?”

And your waiter looks at you dumbly and says: “Ummm, well I don’t know, sir, I’ve never tried it.”

Dumbwaiters are a relic from the past.

Help ensure that dumb brokers become a thing of the past too.

So let me leave you with a parting note: even if you broker only a single note, you owe it to yourself to know what to look for in what you’re brokering.

If you haven’t invested in yourself and your own knowledge, how will you ever come across to your buyers as a trusted and knowledgeable source?

To make the most of Steve’s knowledge and his advice (and to hear a Pro talk about “his” business – remember, if you broker “Turnkey Investments” then Turnkey Investments are now your business) – get the full session with him (and TONS of other Killer recordings, plus lots of upcoming live webinars and calls) as a member of our Private Access Club, where we continuously ’sharpen the saw’ together.

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.

Share and Enjoy:

Buying Non-Performing Mortgages: Hire (a Broker) and they (the Loans/Banks) will come…

notebuyingprofits.com — Wed, 10 Sep 2008 18:37:12 +0000

A couple of weeks ago I ‘hired’ on a full-time broker to work for me. He had no experience whatsoever in the industry, and came from the lending side of the business.

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):

===> And when you get yourself a good one … watch as the banks come to you!

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…)

Dealing in Defaulted Mortgages – How to Broker Notes

notebuyingprofits.com — Fri, 22 Aug 2008 16:41:00 +0000

Here’s a question from one of our particpants in the Private Access Club (you can check it out with a 30-day trial for only $1 currently; LOTS of ongoing note buying training & support for you there) asked at a live-webinar this week. It speaks to one of the key aspects of business – not just note-buying, but business overall:

“Hi Dean, yesterday`s webinar was very interesting and educational. Thanks for it. Looking forward to the next one. You might remember that I tried to ask a question, but I had some problems with my microphone.

Therefore, I am using this e-mail and hope you can answer me a couple of questions. To make some profits with defaulted notes right away, you mentioned flipping the note(s) for a finder`s fee. You also mentioned another company; I learned they offer the following: I have to deliver the tapes, that`s it. They do the rest…due diligence, negotiating with the bank, purchase agreement, etc.,….and after their bid has been accepted, they pay me a commission.

“Question: My bank/seller source ( i.e. JANET ) could be a contact/relationship that provides me with tapes over and over again… How can I protect my seller?

That other mentioned company could easily “steal” my bank `relationship` in above mentioned scenario. What kind of agreements would you recommend to protect me & my seller as well as my commission. Do you have some sample contracts you could provide me with?

Thanks in advance for taking the time to deal with my questions. Hope to hear from you very soon. Best regards, Sonya”

___________________

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:

how do I make money off the notes on this tape?
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.

Share and Enjoy:

Note Buying – the Pajama Factor

notebuyingprofits.com — Thu, 29 May 2008 07:16:25 +0000

One of the things I like about the note buying business is the Pajama Factor – the fact that you can do this business from home (I’m sitting here at home now – my two-and-a-half year old daughter is snoring away in her room right next to me here).

Call me unprofessional, call me lazy, just don’t make me work for “the man”. Been there, done that.

That pool of nonperforming notes I mentioned to you below that my friend the note broker sent to me a couple of weeks ago? I priced it – meaning that I did the research to figure out what price I wanted to pay for these non-performing notes – without ever leaving my office!

I don’t know about you, but I kind of like not having to go in to work.
Gotta love the cash flow business…

How to buy Real Estate Notes – a Single Source for your Note Buying Deals

notebuyingprofits.com — Wed, 28 May 2008 07:12:49 +0000

On how to buy Real Estate Notes:

Consider this – I get an email from a note broker friend of mine two Fridays ago about a $3 million 23-note pool of nonperforming loans (1st and 2nd mortgages), I review all the loan documents and submit a bid by the following Wednesday, and I find out the following Thursday that I’ve won the bid with around a $1.1M offer.

Hang on, hang on before you think “good for you, Dean, but I only have $20,000 to spend so this isn’t for me…” (Btw, our How-to-Raise-Money Toolkits can definitely assist you in that department.)

My original bid was for 6 non-performing loans in this note pool. And the seller told me I was on the short list based on my bid on those 6. Could you have bid 2 loans for say $50,000 a piece? Sure.

My point on How to buy Real Estate Notes is:

You never know ahead of time whether you’ll be able to pick off a few loans or not, so just go ahead and bid anyway!

Anway, back to the story … so that was last Thursday.

Then, on Friday – one day later – I get a call from the bank selling me the note pool asking me if I’d be interested in an $8 million pool of non-performing notes that they’re sending out in another month, out of which I can probably “cherry pick” the notes I want.

Ahhh… you see why I like note buying?

Isn’t that cool – you meet someone one week and a couple weeks later they’re sending you more and more opportunities! Compare that to having to CHASE DOWN your next ‘real estate investing deal’ (buying/finding a property).

Key point: your track record counts for a lot in the note buying business – so if you close a deal on time and at the price you say you will, you might end up the favored investor on the very next note buying deal coming from that same seller.

That’s an efficient way to build your pipeline of note buying deals – and that’s what makes the non performing notes business so attractive – for this fraction of Real Estate Investors out there who understands how to buy Real Estate Notes.