I got quite a few emails and calls from people who missed the f.ree note buying webinar last Wednesday and/or missed my two emails about the p.rice increase of the A-Z Note Buying Course, who were frustrated that they missed out on getting in at the old introductory p.rice on my how-to-buy-notes course.

Well, I thought of a solution for you:

Even though the price of the A-Z Note Buying Course has already gone up by 50% officially on our site, with the SPECIAL CODE ‘lastchance’ filled in at the TOP RIGHT of the order page (where you put in your CC info), you can still get it at the old price – UNTIL (incl.) MONDAY, 11/10, that is.

Hope you get a chance to pick it up at the old price. (Don’t forget to put in the SPECIAL CODE ‘lastchance’ – will only work until incl. Monday.)

You will truly have all the how-to-buy-notes education and step-by-step instructions you need to kick-start YOUR note b.uying business – and bust the recession with a technique your frustrated RE competitors barely know exists, let alone know how to execute on it.

You do now.

Talk soon,

Dean

PS:

Want some ’social proof’?

See what Darek Latawski from Elmhurst, IL, had to say after the webinar (and the ‘how to buy notes’ course) this past Wednesday.

The text below is what he put in our ‘feedback box’ after the note buying webinar – unsolicited, I might add. (He had also bought the A-Z Note Buying Course recently.)

“Thanks, Dean. Great job! Bought the course 2 weeks ago and already went through all the Videos. Amazing…

Dean, I’ve had Real Estate Experience in Short Sales, Whole Sales, Lease Options, as well as other strategies. However, you’ve opened my mind to a completely different strategy that doesn’t limit me in ways the others do. Thank you very much for everything.

You are a Real Estate God Send!

PS: Your how-to-buy-notes product is wayyy underpriced. Just thought you should know. It’s like I got a steal of a deal and I didn’t even have to negotiate it. If only all Real Estate were like this!

(’What did you like BEST about this webinar?’)
EVERYTHING!!! And please don’t ask me which part I would want to have covered on these calls/webinars when you provide that kind of quality material. It’s like giving a poor man a choice of picking between five $100 bills.”

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!)

Imagine yourself 8 weeks from today.

The holiday shopping season begins. The financial world will still be reeling – and in the early days of digesting some of the bailout funds that Treasury will be throwing at banks before the holidays.

That’s 8 weeks from now.

And where will your note buying business be then? How many defaulted mortgages will you have bid on and won?

How much money will you have raised? How many banks will have opened their doors to you and sent you tape after tape of product that they would love to sell?

Will you be even more concerned than you are today about your lack of ‘deals’? Will you be asking yourself if you will ever be able to close a purchase before Christmas?

8 Weeks from now is the last day of my custom-built 8-Week Note Buying Roadmap – IF you start today.

By then, most of my students will have figured out how much to pay for a nonperforming note, where to find one, what to do with one, and how to close on one. You see, they will have just completed the 8-week roadmap (with its 9 Note Buying checklists and 4 toolkits), that guides them through my A-Z of Note Buying course. And many will have just finished perfecting their offers to banks.

The most persistent students will have already bought their first note, and the best one will have cashed in on hers already, and be looking to buy 2 to 3 more before Christmas.

For those who just got into their very first note, they will have a sense of achievement – of finally having overcome their own fears about ‘being the bank’.

Many other people will have let 8 more weeks pass by with no change on their horizon. They will be as frustrated then as they are now. They will have no more money to spend on the holiday shopping season than they do today. And they will be as gloomy as ever about the prospect of ever getting control over their real estate dreams.

Which group will you be a member of? The one working to close its first note deal and to start profiting from the turmoil in the mortgage market, or the one watching November pass frustratingly by?

The 8 weeks will pass by, regardless.

New Years is around the corner. Instead of making another laundry list of resolutions on January 1st, wouldn’t it be nice to instead feel like you’ve already completed a few that you haven’t even made to yourself yet?

Like committing to an investment strategy that can bring you wealth without requiring your endless time, and taking your first step in developing a relationship with a bank that can bring you deal after deal after deal.

The 8 week are going to pass by. But the question is: where will you be when they have passed?

You are the decision-maker.

My ‘A-Z Profiting from Discounted Mortgages Business-in-a-Box‘ course positively has all the knowledge and tools you need to get started. But the implementation part I can’t do for you.

Take a step to advance your real estate investing. Don’t just dabble again like you have before. Make this one count. You can do it. Now.

I will help you get started and lay out each step you need to take to be a success in buying notes.

We will shortly stop offering it at the introductory price and it will go up 50%, which will be a lot more in line with the true value of it (just compare its massive content & the current price to other courses out there…).

But I wanted to give you the opportunity at the old price. Plus, I will honor the special discount code I put at the end of the FREE ‘See what can happen to YOUR Note Buying Business in 8 Short Weeks’ Video for another 48 hours, to make it a complete no-brainer for you.

You can get the 16 hour+ Note Buying course here.

Hope to see you on the other side. It’s an exciting ride and the perfect time of the market to do this.

Dean

PS: Here is my gift to you again: a FREE Video tour of what can happen to Your Buying-Defaulted-Mortgages Business within 8 weeks time…
(Plus a little bit of market analysis for you.)
=================================

* Join our NEW FORUM at 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!)

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

___________________

My reply:

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

Of course.

Is it to make lots of money? Sure.

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

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

So to the question at hand.

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

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

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

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

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

What am I getting at?

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

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

And you may not like having to do that.

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

Broker to people you can trust.

Simple as that.

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

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

Trust your gut.

However, I just finished the “Closing on a Note” Course for you – 4 hours and 23 minutes of no-nonsense note buying training and review divided into 4 parts (or 4 DVD’s if you prefer the hard copies).

And, as usual, watch the first hour (in this case: 90 min) for FREE!

Take a peek:

A couple of things to keep an eye out for (don’t laugh at my lame attempt at a music video – it’s “inspired by actual events” as they say in the movies):

• Fades – what they are and how to use them (minute 23:06 in part 1)
• Pulling apart the $405 million pool (minute 38:35 in part 1)
• How to tell between the Banker who’s the “Easy & All” vs. the one who’s the “Some & High” (minute 6:50 in part 2)
• Deconstructing your Competition – better known as the Johnny-Clegg-note-entertainment-bonanza – turn up the volume on your computer speakers and enjoy (minute 19:11 in part 2)
• The 43-minute drilldown on the one document you sign in a note purchase (starting at minute 2:59 in part 3)
• Boarding a loan – the A-Z checklist (minute 6:07 in part 4)

Enjoy. This is the final of the 4 note buying courses that I’ve just finished.

16 hours chock-full of no-fluff information, training, and insights to give you a leg up on the competition as you launch or grow your note buying business.

Note: I will very soon release most the material I created in one big package. Enter: ‘A-Z Buying Non-performing Bank Notes Business-in-a-Box’ – coming up shortly…
Actually, hint: you can check out the offer already if you click on the order link on the ‘Closing on a Note’ Course page. (One could argue I am giving away the farm here…) Plus, there will be even more valuable goodies in there that are not mentioned yet on the order link. So stay tuned for that.

Talk soon,

Dean

So here’s the question, which Brian K. posted in a comment on an earlier post, and which I’ve received numerous times over the past two weeks in my free 20-minute sessions …

“If I need money to buy a note, should I chase down notes or secure money first?”

So in order to answer this one, let me tell you a little story about Dean Engle and his early non-performing note purchases:

1. $23,500 – 1st note I bought. It’s there in black and white on the homepage (first video). All from my own money
2. $54,000 – 2nd note I bought. I didn’t have enough for this one and I didn’t have any other sources of financing lined up so I convinced my wife that she’d do better buying me a note and getting 13% on her investment, plus 2 points, than holding her Cisco options which were underwater (!)
3. $26,000 – 3rd note I bought. I invested out of my self-directed IRA
4. $14,500 – 4th note I bought. Also from my self-directed IRA
5. $23,000 – 5th note I bought – and my 2nd quick flip. I sold it for $30,000 within a month, but funded it from my self-directed IRA (had it under contract before I purchased it, but couldn’t close it in a single transaction so had to come out of pocket)
6. $8,750 – 6th note I bought. None of my own money – brokered deal on which I made $2,000 (YOU DON’T NEED MONEY FOR ALL NOTE DEALS!!!!)
7. $66,500 – 7th note I bought. I used hard money for this one – so I put up 25% of the note cost ($16,625) and the investor put up the rest, at 4 points and 13%
8. $12,500 – 8th note I bought. From my self-directed IRA
9. $153,550 – 9th note I bought. Used the hard money lender again that I’d used on my 7th note. Same terms
10. $7,000 – 10th note I bought. From my self-directed IRA

I want to point out three very important points about this list of notes:

1) You can buy small notes, for very little money
2) It doesn’t have to be your own money
3) You don’t need to have ANY money – you can broker notes or bird-dog notes (see #6 in the list)

I learned very slowly that I could go out and get money from someone to fund my notes. And here’s who that person was who funded that first note (note #7): a foreclosure auction buyer – (maybe you call them trustee sale buyers in your state).

Here are the three reasons why I like auction buyers when you’re starting out note buying:

• They know more about notes and non-performing notes than most lenders (after all, they’re dealing with banks and trustees and foreclosures all the time in their business)
• They can place a value on a property faster than anyone. Usually they’ll have completed a driveby of the property (if they even need to do one – some of those guys know their county so well they can judge value just based on a street address!)
• They can make a decision to fund a deal very quickly – as long as you have the right paperwork to give them, they can usually fund the next day if you need it

So how would I answer Brian K? With one of TWO recommendations:

1. Decide you want to be a bird-dog, and broker notes – to get it started.

OR

2. If you want to BUY your own notes, then line up the money first. Then chase the notes.

If you know you have no more than $50,000 available yourself, then you can chase notes worth less than $50,000.

But as I just suggested to Rick the other day (Rick’s in north Georgia chasing notes himself, and admits he has about $100,000 available of his own cash), why not line someone up at a 25-75% split and “leverage” yourself up?

Rick’s $100,000 could then be worth $400,000 in note purchases.

AND he gets to learn from someone with deep experience in buying foreclosures if he chooses his hard money lender right (you learn from every deal and every relationship)

Ah, but I hear you asking me: “so how do I convince my hard money lender to lend me money?!”

It’s simple – one of my Oklahoma readers used the Basic How-to-Raise-Money toolkit file – you know the one with those 2 deal summaries I wrote up on the southern California note and the Portland Oregon note? (If you haven’t already: watch my FREE 84-min Video on How-to-Raise-Money NOW!)

Well they used that EXACT document and showed it to a handful of target investors and said: “This is what we’re looking to do, would you fund something like this if we came to you asking for your money?”

That little document opened doors for them. They’re in talks with a number of those investors now. Why? Because it lays out a sample deal in simple terms that any investor will understand and appreciate.

And think of it from the investor’s perspective – especially the auction buyer’s perspective – they MAY look at you and think “hmmm, this is cool – I can use [YOUR NAME HERE] to learn something about bank notes, which I’m hearing all about right now. Maybe he can go find them, I can fund them, and we can work them out together.”

If you set it up right, and pick your partner right, this could be a very nice win-win relationship!

So, ACTION STEP: find out the next foreclosure trustee sale or sheriff sale or auction in your county, and GO THERE. And see who you meet. Strike up a conversation, say you’re starting to buy notes and looking for hard money.

I’ll be amazed if you don’t meet at least 1 investor who’s interested in hearing more about note buying!

And ACTION STEP #2: go out there and start Finding Notes and if you find one you don’t have the money for – BROKER it to someone who does. At least you can make some good money! (We pay 1% of the acquisition cost, for example, for notes or pools smaller than $1million – not that I’m recommending you to just come to us with notes – but rather to give you an idea of what you might be able to charge other note buyers, at a minimum.

That’s the equivalent of $1,000 on a relatively small $100,000 note. Better than working at the office!

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.