Brokering Notes in The Note Business is a Lot Like Baseball
Bling, bling, bling the phone rings. "This is Mr. Joe Note Holder looking to sell my note."
Me-"HELLO-this is Master Broker-thanks for calling-please tell me about your note.......... (now is the time to listen)
A) Always have a blank Note Intake/Quote Request Form handy.
B) Ask Joe for permission to ask a few questions regarding the note.
#1. "How much money did the buyer/borrower put down when he bought the property Joe?"
NOTE-If less than 10% strike one!
#2. "Did you check the borrowers credit and if so-what was the score?"
NOTE-If they did not check the score-the score is probably not great or at least there is some doubt. If this is the case or the score is less then 620, strike 2.
#3. "What is the property worth and how much are you looking for today?"
NOTE: If they want any more than 80% of the current balance-you are going to have a hard time explaining the Time Value of Money. Unless the seller is realistic about pricing, strike 3 and they are out!