Hello again ,

You've seen the infomercials...the big newspaper ads...maybe you've even bought the intro tape package or attended an "introductory" seminar at a local hotel, or even spent money on the "upsales."

I'm talking about the companies that purport to train you to become a cash flow/note broker.

Which ones are legitimate?  Which are rip-offs?  How do you tell the difference?

The cash flow/note industry has been around for many, many years and, contrary to popular belief, it is necessary to have a certain level of intelligence, patience, more patience and education in the field to persevere. Education is necessary to allow you to move forward in this industry. 
 
We have had occasion of late to deal with many new people to the industry whose level of note education leads them to believe that the money that goes into their pockets comes first and foremost. Almost every newbie that has contacted our office in the has asked for an agreement to make sure they get their almighty dollar. When I ask them if they have an agreement with the note seller, they are surprised that they should have one. When asked about due diligence on their package, they seem to think I'm speaking a foreign language. 
 
The first class I took on the note industry was from a gentleman named Mike Meeker in Orlando back in the late 80's. One of the best lessons, among many that he taught, was that you have to learn to crawl before you can walk, walk before you can jog, and jog before you can fly. That is posted in my office to remind me not to get ahead of myself in an industry that is constantly changing. 
 
What I see and hear from new people is that they want to take off flying before they know how to crawl. They want to protect themselves against the evils of those of us who have been in the industry by having contracts when the reality is they have nothing to sell. 
 
People, go back to the basics. Educate yourself as to the needs of an investor, whether private or institutional. Learn how to run the calculator. Understand the document that you are asking someone to invest in. Know what "due diligence" is in your state. 
 
Invest in classes that are given by sincere individuals that have been in the market to BUY notes,  not SELL programs. Look at the classes given by people that buy notes and/or have been teaching for many years. They will show you how to find notes that perhaps others won't. They won't show you how to find notes that everyone else already has found and has shown me at least 4 times
in the same week.
 
There are many programs out there that are well worth their cost. But ask yourself these 6 basic questions:

When I finish the class:

1. Will I be able to understand what a note and mortgage is? 
 
2.  Will I know how to run a financial calculator when I leave -- enough to make offers? 
 
3.  Will I understand what due diligence means? 
 
4.  Will I know how to put a complete package together for an investor? 
 
5.  Will I know how to have a conversation with someone that may be willing to sell a note? 
 
6.  Will I know what to do with the note once someone accepts an offer? 
 
You spend your hard-earned money on education in the business, and you need to be able to make sure you start off on the right foot.

Look at this industry from an investor's point of view. Then the money will come to you. 
 
We look forward to helping new people in the industry, but not unless you can answer the questions above with "YES." If you can't, check your contract with the people you took the class from -- and get your money back.


Gayle Ramsdell is the President of Franklin Note & Mortgage Company and a respected investor well-known and liked by everyone in the note industry.  Contact her when you have a note to sell: e-mail franklin@netsync.net or phone 716-934-3181