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News
Of The Note/Cash Flow Business For Brokers & Investors |
"Since you
may not be the only individual vying for the same mortgage or deed of
trust, you must get better and BE better than the other person." -- James C. Levie
Hello again ,
In this issue James C. Levie gives us important tips that will help make you money in cash flow note brokering.
If there's one question I get more than any others, it's:
"How do I find the notes?"
That's why I've selected some of the top people in the cash flow industry to bring you the answers -- the many ways THEY find notes. Join note experts Kent Anderson,Jeff Armstrong, Lisa Moren-Bromma, Dave
Krunic, Simon White and me for a brand-new, never-before-offered event, The Paper Source Note Symposium: Finding Notes & Marketing Your Cash Flow Business April 28 - May 1 in Las Vegas.
Plus, you'll get ONE-ON-ONE consulting with the
teachers! Registration includes a free new subscription or renewal to
THE PAPER SOURCE JOURNAL ($79.00 value) and THE PAPER SOURCE REGISTRY OF
NOTE INVESTORS. See the attached flyer and visit www.PaperSourceSeminars.com for more details and to register.
We're limiting the number of seats so we can provide the one-on-one consultations and all the other benefits. When the Note Symposium is full, registrations will be closed. So please don't put it off!
Cheers,
SO YOU WANT TO BE A NOTE BROKER? HERE ARE 4 VITAL TIPS
by James C. Levie
During the past several years, it seems that a bizillion well-intentioned individuals have attended seminars dealing with the buying, selling and referring of seller-held mortgages. Armed with 1-day, 2-day, 3-day or more courses in the subtleties of buying and selling these mortgages, these good people enter the minefield.
Because of vast increases in the numbers of these hard-working folks (sometimes it seems there are more "bird dogs" than mortgages to buy), one would be well-served to rapidly assume a mantle of greater professionalism.
Simply put: since you may not be the only individual vying for the same mortgage or deed of trust, you must get better and BE better than the other person. You must learn fast and continue to amass knowledge.
The following is a list of general hints that ought to give you a small head start:
1) In fact, there are only a few true end investors...true buyers. Know who they are. Learn
what their appetites are. (Editor's note: See THE PAPER SOURCE REGISTRY OF NOTE INVESTORS http://papersourceonline.com/registry-of-investors/how-to-get-in/
When a mortgage or note comes your way (finally), by dissecting the note and the deal you must know which investor is best-suited for this type of purchase. By providing some intelligent pre-screening you greatly increase your chance of an earlier sale...at a
better price.
2) Try not to speculate. Don't send deals to your chosen investor if you have not received at least some verbal willingness on the note holder's part to sell the obligation. Just because public records may indicate a privately held note and mortgage does not necessarily mean that it would be for sale. Dig. Dig again!
3) Great. So you finally found a note holder who needs to sell. Now your efforts must begin in earnest. Learn rapidly what documentation is critical for your end-investor. The following initial documentation (copies) are most helpful:
a) copy of mortgage or deed of trust...all pages
b) copy of promissory note...all pages
c) copy of the original closing statement
d) copies of hazard and flood insurance
e) determine that the original promissory note exists
f) determine property type and occupancy
g) can you get an estimate of current value (verbal)
h) try and obtain credit information...report, Social Security numbers on payors, payors' mailing address, etc.
i) try and determine whether or not seller has a realistic attitude toward potential discounting
j) determine the pay history over, say, the past 12 months
Granted, you may not always be able to get all the above at first. However, you must try. Remember -- you are asking an end investor to part with a chunk of cash. I (we) are delighted to do just that...but, first give me some value for my money... induce me into wanting to spend this money...convince me of the sanity of this proposed purchase. I don't like spending money without good reason. In essence -- turn me on with rock-solid facts!
4) Assuming I, or your other end-investors elect to purchase your offering, be prepared for the other things that may and will happen. Assume that you have provided sufficient information (see item #3) and you receive a conditional go-ahead, here is a potential listing of
what you may be called upon to do next:
a) order drive-by appraisal from investor-approved firm
b) assist in coordinating the ordering of title work in your area from investor-approved source
c) help obtain estoppel letter from payors
d) keep note seller on line with accurate information
e) you may have to determine payors' home and work phone numbers
Never lose sight of the fact that your role is that of the glue. Don't hesitate to roll up your sleeves and go to work. Hopefully, my document request, as well as other end investors', is never flippant or frivolous.
Don't fight the system; don't resent the system; join the system and reach success. The more you learn to probe and assemble the better you will become. You will leave the vast majority of "bird dogs" in the dust and elevate yourself into a true professional.
James C. Levie is CEO of a nationwide end-buyer of seller-held mortgages and deeds of trust.
How The SAFE Act Affects Seller Carryback Notes:
Strategies For Note and Real Estate Brokers & Investors
Bill Mencarow has published his analysis of the SAFE Act: How The SAFE Act Affects Seller Carryback Notes: Strategies For Note and Real Estate Brokers & Investors. It addresses questions such as:
* Do you need a license?
* How does the SAFE Act affect you if you want to buy, create or broker seller carryback notes?
* How many seller finance deals can you do?
* Can you legally get around the SAFE Act?
* Plus solutions to many of the questions we have all been asking ourselves!
* And many more ideas you may not have thought about ...
7 bonus documents are included:
- SAFE Act FAQs
- Text of the Federal SAFE Act (PL 110-289)
- HUD Model SAFE Act for States
- HUD Commentary on Model SAFE Act
- HUD Report to Congress On SAFE Act
- Proposed SAFE Act Rule
- Congressional Letter To Conferees
It's available for just $9.95 at http://papersourceonline.com/safeact/
LONNIE SCRUGGS' NEWEST BOOK TAKING THE MYSTERY OUT OF MONEY IS SETTING SALES RECORDS!
If you depend on a "job",
then you need to learn what financially successful people do...make
your money work for you. Lonnie Scruggs' brand-new book shows you how to
work smart by doing a little work one time, and getting paid for a long
time.
TAKING THE MYSTERY OUT OF MONEY shows you how to do that. Read about it here.
It's loaded with case histories & examples to help you understand money and finance so you can reach your financial goals.
Best of all, it's written in the down-to-earth, easy to understand conversational style that Lonnie is famous for.
Just Some Of The Topics Covered In This 253-page Book:
· How To Use A Financial Calculator
· Power Of Compounding Of Interest
· How Many Doubles Do You Have
· How To Create Notes & Cash Flow
· How To Use Notes To Buy & Sell
· How To Improve Notes For Better Yield
· How To Buy Notes In Pieces
· How To Make Big Yields From Little Deals
· Making Hard Money Loans
· Profits From Prepayments
· Time Value Of Money
· Rule Of 72
· Understanding CAP Rates
· Simple Interest vs Compound Interest
· Difference Between Yield & Discount
· How Much Does That New Car Really Cost?
· New Car Or ROTH IRA?
· Money Is Not The Problem.
· Is Being Poor Heredity?
· Job Security Or Financial security?
· Coulda--Shoulda--Woulda
· Who's Planning Your Retirement?
Order Your Copy Now & Learn How To Fire Your Boss!
http://store.papersourceonline.com/taking-the-mystery-out-of-money/
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You Can Have A Blast Growing Old!
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