Note Course Bonus: Buying Notes By Phone
Published: Fri, 08/15/08
In this Note Course Bonus Lesson Del Ashby explains how to buy
notes over the telephone.
The 22nd NoteWorthy Convention in Las Vegas is fast approaching.
This is the one time each year where the majority of our industry's
intellectual capital gathers to share ideas, strategies, and
knowledge with other cash flow professionals. Where will you be
October 2nd -5th, 2008? If you're serious about succeeding in the
world of seller-financed notes, there's only one correct answer to
this question.
See www.noteworthyusa.com or the attached flyer.
You can now have a professional Internet Note Marketing System
at what is almost a give-away price of $195.00!
THE PAPER SOURCE, in conjunction with DataMax Marketing
Systems, will provide you with a professionally-designed
Internet Note Marketing System, customized for your
business, plus your own unique URL (web address), for a
one-time price of $195.00 and $15.00 a month for hosting
and updates when you need them. When your business grows
and you need new pages, they can be created for you
for just $95.00 each.
BONUS WITH YOUR PURCHASE:
Free 4-hour Factor Training!
Free Factoring Manual!
ree Factor Module For Your Website!
There are far too many features to list here. Go to:
www.PaperSourceOnline.com/demo.htm and try the interactive demo!
Your custom-built Internet Note Marketing System will be online
in less than a week.
How To Buy Notes By Telephone
by Del Ashby
My best advice for negotiating on the telephone is:
Be quiet and listen. Really listen.
In the initial dialogue, what should our objective be?
I suggest that it should be to find out why the person has called.
If the call has to do with selling a note, you will want to find out
what they have for sale, what they want for it and get to know them
and their problems. You will want to do these things BEFORE you
give them any information relative to potentially purchasing
their note.
You can defer any questions you don't want to answer right
now by saying, "I'll give you that in a minute, but first I need
to know..." and start your questions to get the information you
need. In this fashion you can control the conversation without
being obvious or obnoxious.
A Practical Example
When you ask your questions, keep quiet and listen...
really listen to their answers. Don't be in a hurry to respond.
They may only have paused to collect their thoughts rather than
really being finished with what they want to tell you. Here's an
example of what I mean:
Jim: Hi, my name is Jim. I understand you buy notes.
Del: Yes, Jim, I sure do. Do you have a note to sell?
Jim: Yes, I do. It's a 15 year note with an interest rate
of 10 percent, and I want to know what you will give me for it.
Del: Do you have the note in front of you, Jim? I have
a number of questions I need to ask you first.
Jim: No, it's in my safe deposit box.
Del: All right, I'll need to see a copy of it, but first,
let's talk some more about your situation. How did the note come
into being? (Listen and possibly develop a line of related
questions.)
What can you tell me about the payor and their credit?
(Listen and develop more questions like "Did you check their
credit?" "How much money do they make?" "What do they do for a
living?" etc.)
"What prompts you to want to sell the note at this
particular time?" (Listen...do they give you a real reason or a
smokescreen? Develop more questions like "What happens if you can't
sell the note?" "Who else have you talked to about selling the
note?" "Did they make you an offer?" "How much was the offer?"
"Why didn't you accept it?" "How much money do you need to get
done what you need to do?")
At this point we should have learned a lot about Jim and his
circumstances, needs,
preconceived notions and attitudes than we have about the note.
That is our objective. Here is a
way to get to the next step:
Del (after listening completely to Jim): Jim, I have a
form here that I need to fill out with a lot of information about
the note so that I can have our underwriters look at the situation.
The information I need is in the paperwork you already have, so
probably the easiest way to get what I need is for you to get the
note and other papers out of the safe deposit box and send me
copies. At a minimum, I need a copy of the note, the mortgage or
trust deed and a copy of the settlement statement. DON'T send me
the originals, make sure you keep them and just send me
copies. Within a few days after we have those, I can talk more to
you about an offer and how we would propose solving your problem.
When can you get those to me?
Try the idea of using a form. People will give you
information for the form that they might hesitate to give you if
they think it's just you, rather than the form and the underwriter
(investor) asking for it.
The Buy Sign
It is not uncommon for our customer (note seller) to let
us know he is ready to do business by giving us a buy sign.
It is also not uncommon for us to miss this important clue because
we weren't listening or didn't know about buy signs. Here is an
example:
One of my readers who is participating in a transaction
with me asked, "What do I tell him if he asks whether the quotes
I gave him quite a bit earlier are still good?" That question is
a buy sign.
You would not answer the question but instead would ask
him a question: "Which of the quotes are you interested in?"
After his answer, tell him the market does change quickly so will
have to confirm the quote with the investor (or underwriters), and
then ask him,
"If I can still get you that price, do you want to do
the deal?"
If he says yes, get him to sign the agreement before you
go back to the investor "so the investor knows that the you
(the seller) are serious." If he says he is not sure, tell him you
don't want to risk turning your investor off from the deal by
waltzing around and using up the investor's time (and your
credibility), so he should think about it and call you when he has
decided. Only then will you risk your relationship with the
investor by going back for confirmation.
A buy sign is more often a question by the customer where
it is implied that the answer to the question is pivotal in his
decision as to whether to "buy" "(sell his note) or not. Most of
the time it really isn't a pivotal issue but rather an expression
of his need for you to help him say "yes" -- he has already
basically decided.
Typical buy signs are statements such as: "If I go ahead
with this, can I...Have the money by (date)?"... "Keep the next
payment?"...Will you handle the cost for the appraisal?"
In short, he will be asking you for something or to confirm
something. Wen he does, ask him for a commitment based on
"If I can get this for you, do we have a deal?" Then get an
absolute commitment from him before you do what you have promised
to do in exchange. He will not be offended: He is looking for
you to help him make a decision and commitment. Remember, a buy
sign is usually an expression of the note holder's need for you to
help him say yes. Once decided and committed, he can breathe a
sigh of relief as his problem is taken care of.
Del Ashby is a highly-respected note investor,
broker and teacher with many years of experience.
He is the author of "Make Money Trading Mortgages," an
indispensable guide for note brokers (and those who want to be).
You can download his book for only $19.95 at
www.PaperSourceOnline.com