Brokering A Note Tape
Does anyone have any experience brokering a tape?
Quote from @Ian Wright:
Does anyone have any experience brokering a tape?
Technically you need to be licenced to broker notes. However, there are many in the space who do so anyway. They are typically daisy chainers who take a tape put out by a legit broker and peddle them to their contacts at a markup. We call them joker brokers. There have been numerous occasions where I've received the same tape more than once by different brokers. I've even had my own tape that I put out for sale, back to me again.
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Quote from @Chad U.:When you say you need to be licensed to broker notes, I assume you’re referring only to notes originated on residential owner occupied property?
Quote from @Ian Wright:
Does anyone have any experience brokering a tape?
Technically you need to be licenced to broker notes. However, there are many in the space who do so anyway. They are typically daisy chainers who take a tape put out by a legit broker and peddle them to their contacts at a markup. We call them joker brokers. There have been numerous occasions where I've received the same tape more than once by different brokers. I've even had my own tape that I put out for sale, back to me again.
Quote from @Don Konipol:
Quote from @Chad U.:When you say you need to be licensed to broker notes, I assume you’re referring only to notes originated on residential owner occupied property?
From my understanding notes are considered a security, therefore a license is required. I am not sure whether it applies only to institutionally originated notes or not.
Quote from @Ian Wright:
Does anyone have any experience brokering a tape?
Why are you looking to do this? What other investments have you tried before? It seems like you are jumping into the deep end of the pool without learning how to swim. Set yourself up for success.
Quote from @Paul Camuto:
Quote from @Ian Wright:
Does anyone have any experience brokering a tape?
Why are you looking to do this? What other investments have you tried before? It seems like you are jumping into the deep end of the pool without learning how to swim. Set yourself up for success.
I am just starting in the note business, so not looking to broker just yet. The question was really more out of curiosity and the desire to connect with a broker.
@Ian Wright
Brokering notes is extremely challenging in the note space. Most brokers we call joker brokers and they destroy any reputation quickly. Why?
The note space is a very small relationship driven business. Brokering a tape doesn’t mean taking a tape from a tradedesk such as SN or AHP and trying to broker those assets. Anyone who is in the space already gets those assets sent to them and won’t pay a premium.
Brokering is finding a seller who doesn’t want to market their assets and have someone deal with it. For smaller Investors it’s easier for them to sell on a site and larger funds yes they may use a broker then it comes down to relationships.