For All Those Thinking that They’re Going to Broker Notes

[Don Konipol]

Got the 10th or 11th email yesterday from someone who believes she’s a note “broker”.  For the 10th time she sends ,e scant information on a supposed note for sale, and when I ask for more details and docs, she’s at a loss for knowing what it is I want “tell me what you need and I’ll get it”.  Of course, since she’s probably 43rd on a daisy chain, the next time I hear back from her it’s about a “new” note for sale.  So, to (hopefully) eliminate the wanna be note brokers from my life, I have taken to simply telling them that to consider purchasing an existing note I need a complete or near complete loan package, consisting of the following 

DOCUMENTS FOR A COMPLETE NOTE PACKAGE

1. Promissory Note

2. Mortgage Instrument or Deed of Trust

3. Warranty Deed

4. Borrower’s Application at loan closing

5. Borrower’s Credit Report at loan closing

6. Settlement Statement at loan closing

7. All loan documents signed by borrower and or lender

8. Complete Loan Servicing Record

9. Appraisal of property

10. Tax statements for property

11. Environmental reports

12. Any loan modifications, forbearance agreements, acknowledgements, or any other documents executed by borrower and or note holder

13. Any bankruptcy of borrower or borrower related entities or parties

14. Any subsequent sales of the subject note

15. Any subsequent sales of the subject property

16. Any and all financial statements borrower is required to deliver to note holder

17. Title policies and reports

About 80% of the “joker brokers” have ceased communication

[Taylor Doucet]

When I first entered this space, I had no idea what I was doing for myself, and not what investors actually wanted or needed to see. Like most people, I learned through trial and error.

Eventually I secured my first note, and that’s when everything really clicked. I finally understood the process, the numbers, and what matters to buyers. Even with all of that, I completely understand why investors sometimes push brokers away. A lot of the time, they don’t have everything organized or don’t know exactly what’s needed to close smoothly. I didn’t realize how much of a headache I probably was until I went through the purchasing phase myself.

Once you’re on the buying side, you see it differently. You understand what needs to be clean, clear, and ready, and why precision matters

Here’s a screenshot of my first note.

And that list? It’s a good one.