Notes???

15 Replies

Hello,

I coordinate a Mortgage Lending program and have some owner financed properties available in the Dallas, Texas area. Is that something you would be interested in? Contact me if you're interested. We coordinate the entire process and guide you.

I have worked with finding and buying notes for a few years now and I am enjoying it. I have an e-book written on the subject and I would be happy to talk to you about the business. Send me a message.
-Mike

Does anyone want to actually share with the user a bit about finding notes, or are you all here to sell something? Please try and help out guys.

Thanks,

Thanks for the push Josh. Mostly here to sell something but I don't mind helping out. ;)
Finding notes is not a terribly difficult task. There are many options to find them but it all comes under two main categories I would say.
Direct marketing techniques and
Indirect marketing techniques.
Direct involves going to the note holders themselves and making contact. This could be done through phone or mail and requires a lot of work. You can get a lead list and start marketing them but it will have a bit of a cost to it to do things that way. Lead list sources include:
www.totalnotesolutions.com
www.dataquick.com
www.noteleads.net
and many others. If you are going to take that approach you should plan on starting with a list of at least 5000 note holders because anything less and you are not being serious about the business. Then you will need to buy a new list when those run out. Many people to learn about the business opt for this approach in the beginning because it is so "invisible" but it is not the best way to go about it.
The best approach to finding notes is to build a local network. It takes a bit more time perhaps than just sending out post cards but it costs much less. You can talk to 20 professionals locally per week in less than 5 hours and statistically 1 out of 20 will likely turn into a good referral source for you continually. If you keep in touch with them then this approach alone will generate more notes than you can handle within just a year or so. The down side is you have to put forth the effort and take it serious. You will generaly not see results coming quickly. I have some details information about marketing this business if anyone wants to check it out. The site is not pretty but it is full of meat and detail and it is free. Oh, and there is nothing to sell at this site either. :)
www.bestnetcoach.com That is the domain name but it forwards to a geocities site. I have not paid for hosting because well let's face it, that costs money and if the info on the site is free then it is just an expence. I hope this info is found to be helpful.

-Mike

Mike,

Thanks for sharing.

I will check out the links provided.

To the others there are some training programs or books.

There are other forums where which are more focused on notes with an active community. It is not a large business compared to mainstream RE investing.

John Corey

Before you do an ounce of "marketing" I would make sure you know the in's and out's pretty well. I would also make sure you are ready to act once you do get some response from who you are marketing to.

It would seem silly to spend a lot of time and money on a marketing campaign to get responses and have no money to buy the notes or not really know how much you should pay for it. RE professionals will see right through you at your initial meeting with them if you don't know what you are talking about.

I want to buy totalnotesolutions premade newsletter, but there's no answer to jtheir 800 number and they are not answering their email. Also the links on the site are broken in several places. Allcash, do you have their contact info or the newsletters. I want to pay them. They are not asking a lot, but I don't see any point if they are no longer in business.

Are you sure this marketing is worth it?

I'm just going to throw this out for general information.

I've been a note holder for about 20 years now, both firsts and seconds, purchased and originated ones. As a result of anyone who's taken a seminar or read a book being able to access my address I get, on average, about 2 postcards and letters a DAY.

In general I have no interest in selling my notes, nor, in my experience, do other note holders! (More about this in a minute though.) However, I have occassionally contacted some of those who've sent me letters and here's what I've found:

1. They are complete newbies, who don't understand the terminology.
2. Even though the course they took told them to buy, and learn to use, a financial calculator, they are not comfortable doing so.
3. While they may understand some of the financial concepts outlined in the course, they don't understand the value of fixed rate instruments.

I once told a "note buyer" that I had a FIRST TD, with a rate of 14%, 2 years seasoning, 8 years to run until it ballooned. He tried to offer me a 40% DISCOUNT on it! Right then I knew he didn't know what he was doing. While the gurus may tell you that it's possible to earn 40%, in reality it's not often that you will. Here's my reasoning why:

1. People who have the fniancial wherewithal to carry a mortage on the sale of a house, probably have some financial SMARTS. After all, they didn't reach that stage by being stupid, or very young usually. If they carried a mortgage they probably ran it past THEIR attorney and THEIR CPA, before deciding to do it.

In other words, if you think someone is going to sell a house (FMV of $100K) today for $100K, and then turn around and sell the mortgage tomorrow (or even in 6 months) for $75K, you're (almost always) wrong! Before they decide to carry the mortgage they'll ask their CPA what he thinks they'd be able to get for the mortgage in the secondary market.

If they hear anything like that much discount they'll elect to just DISCOUNT the property and get cashed out.

I know some of you will say that "people's life situations change", and that is definitely true. But if you're doing a mail campaign remember this; you're mailing JUNK MAIL to the recipients, unless it arrives on the day they discover they need the money!

Insurance agents and Realtors do a lot of mailings, knowing that the success rate is about ONE TENTH OF ONE PERCENT. However, they know that if they do it often enough, to enough people some of them will arrive in a prospects hands at the time that they're contemplating selling the house, or (in the case of insurance guys) on the day they found out that a friend died unexpectedly, which causes them to call the person who mailed.

Ask yourself how many cards and letters you'll have to mail to hit those few folks.

all cash

While I agree with Frank that most note brokers are newbies that have no understanding of how to actually valuate real estate notes. I disagree that "other noteholders" , " have no interest in selling notes". There are a lot of note holders that took back a seller financed mortgage because they saw that as the quickest or easiest or only way to move the property at the time. They would have gladly taken all cash if that was an option but, for some reason it wasn't.
Some of the best ways to find notes are to do courthouse research looking for evidence of seller financing. I also like to network with attorney's, CPA's, Realtors that understand paper, experienced note brokers and others that are likely to come into contact with note holdrs that are looking to raise capital. There are a lot of real estate professionals that sell homes using seller financing and regualrly sell of notes to recycle the money to buy more homes to create and sell more notes! These professionals are by far the best source as they are not just a one time deal if you treat them well they will come back to you again and again!

Just to place in my thoughts lol. You can just go to a Note Broker, just like there is a Broker for commercial properties, residential properties there are also these that handle buying and selling notes as Reps on both sides. I had someone tell me there is no such person but I proved them wrong lol. Have a Awesome DAY :)

KnickKnack101 You are right on the money. If you are looking for notes to buy for cashflow all you need to do is go to a reputable note broker that has been in business for a while and they will be happy to help you find a good note to buy! I have been both buying and selling notes since 1999 and would welcome the chance to work with the investors on this board looking to get into the note business as a buyer.