It Would Be..."
"The advice I would give brokers of any cash flow is to look for more than just the best price when selecting an investor with whom to place their business.
"Other considerations, and in many case even more important, would be the investor's performance history. If the owner of the cash flow made accurate and honest representations and everything else about the transaction checked out, the investor should have no excuses for not completing the transaction under the original price and terms.
"I have heard many horror stories over the years of investors coming up with all kinds of excuses at or near closing to adjust the price, delay the closing or to just walk away from the assignment. The broker's or referral source's credibility is then damaged, and the owner of the cash flow could decide to litigate and include the broker or referral source as a defendant. One does not need this potential aggravation (and defense costs), and one can help to avoids it by carefully selecting the investor.
Perusing web sites and publications like
THE PAPER SOURCE JOURNAL can reveal quite a bit of information on this subject."
-- Martin Granoff, President, Granoff Enterprises
"Question: What is the single most important piece of advice you would give to a note broker?
"Answer: Run your business like a professional business.
"For instance:
Get a business name;
Get letterhead;
Get incorporated;
Answer the phone like a business;
Get a real email address (not the free hotmail-like addresses);
Get a real business address (no P.O. Boxes).
"This is not a scientific principle, but if you act like a real business, you have increased your chances of staying in business by 100-fold. All the other advice, like "learn the business, learn real estate & or finance" etc. all come after "ACT LIKE A BUSINESS!"
"Get your head on straight and take this seriously and you are already miles ahead of the competition."
-- Wm. Kelly Crow, President, Morningside Mortgage Management, Inc.
"This sounds like such a simple question, yet trying to reduce it down to one single item of importance makes it difficult.
"I'd advise brokers to consider the business "on only a long-term basis." If they're looking for long-term success, this will necessitate dealing with integrity in order to establish good, long-term business relationships with investors, sellers, etc. Also, it will allow time to become educated and acquire "product knowledge." And it will help avoid the pitfalls/disappointments associated with the "get rich quick" fantasy.
"Obviously, a long-term outlook requires more commitment and determination than a short-term approach. Sooner or later, it will encourage buying some product for themselves--to provide for some regular income, but which will also lead to a better understanding of their business."
--Terry Preuit, President, Cash For Contracts, Inc.
"The best advice I can give to a new note broker is to avail yourself of the multitude of information that is available to you through such publications as
THE PAPER SOURCE JOURNAL. Surround yourself with the professionals that you choose to work with and establish a personal relationship with principals who have a proven track record. Stay focused. Don't get caught up in the dollars game but always put your clients' needs first. Treat clients the same as you would like to be treated.
"Be honest and trustworthy and your cup will overflow."
-- Stefan Klima, former vice-president, Poser Investments, Inc
"My advice consists of five tips.
"First: Find out who you can do business with. Find out who "walks the walk," who does what he or she says, who delivers on promises.
"Second: Learn what is a do-able deal and what is not do-able. Move away from the not do-able situations as quickly as possible.
"Third: Treat your investor's money as if it was yours. Your job is to uncover and disclose everything pertinent to the deal.
"Fourth: Look at every deal as an opportunity to carve out an equity position. Start by buying a full note and selling a partial. Move as quickly as possible from the role of broker to the role of investor.
"Fifth and finally, the most important tip of all is to develop your people skills. Develop a strong relationship with the note seller. Learn what the seller's real problem is, why he is selling the note, and focus all your energy into solving the real problem. This will ensure that you prosper financially.
--Kevin Clancy, President, American Funding Group, Inc.
If you liked this article, you'll like THE PAPER SOURCE JOURNAL. If you're not a subscriber, you ought to be.
See
http://papersourceonline.com/paper-source-journal/infosubscribe/ for information. It comes with THE REGISTRY OF NOTE INVESTORS, giving you all the major national and regional cash flow note investors.
