Making money in business is the primary goal whether you are a real estate investor, a note buyer, a realtor, or in any other related field. After all, we all need funds to put food on the table, keep a roof over our heads, and buy all of the goodies that our lifestyles desire. An individual making money and a company making a profit are clear ways to measure performance, and we should never feel the need to apologize for those.
But beyond the cash, it is nice to also feel like we are making a difference and actually helping people. At least for me, the job becomes more special when clients send me thank-you cards or small gifts as an acknowledgement of me going the extra mile for them. Selling a note is usually a smooth process for clients, but it can get bumpy if there are issues with documents or with the properties. It is my job to do the grunt work and make the transaction as stress-free as possible for the mortgage note holder.
Why They Sell Notes
People sell mortgage notes for a variety of reasons. Sometimes, they don’t want to bother with the note and the hassle of chasing down the payer for issues like late payments or not keeping current on property taxes. Elderly clients often contact me to simplify their estates so that their heirs do not have to split up payments each month. By far the most frequent reason that customers call is that they need cash right away. The money is needed for major medical expenses, paying off credit card debt, or just paying ongoing monthly bills.
One gentleman contacted me recently about selling his mortgage note on a property in the northwestern part of the U.S. His father was going through treatments for an advanced stage of cancer, and his V.A. and Medicare benefits were not providing satisfactory treatment. By me buying part of that note, the quality of life for the client’s father was vastly improved. Even though I am making a profit on the note and don’t pretend that I bought it for altruistic purposes, it is still satisfying to know that I helped another person in a small way. The client was certainly quite grateful.
While I recognize that, for some people, business is solely about making money. Their source of job satisfaction results from just closing a deal or getting a salary raise at work, and that’s fine. At least for me, something deeper is needed in the job even if I also do separate volunteer work. After all, when you’re on your death bed, what memories do you and those close to you most want to cherish? Money is not the only or even the best measuring stick for success.
Photo: Jeff Kubina