4 Vital Tips For Cash Flow Note Brokers
Published: Wed, 10/16/13
A Free Service From The Paper Source
October 16, 2013
"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 ,
In this issue James C. Levie gives us 4 vital tips that will
help you succeed in brokering notes.
At our seminar on non-performing notes (NPNs) last month in Las
Vegas I announced a website to get DAILY postings of foreclosures in
California, Arizona and Nevada:
www.CountyRecordsResearch.com
I made a special arrangement with the owner of the site to give
our subscribers 30 days of free access with unlimited county
searches instead of the 5 free days they normally offer.
To get this, go to the website, click on "5 Day Free Trial," pick
the state(s) and counties you want foreclosure info on, click the
"Register Now" button, and in the "Enter Promo Code" field replace
"5DaysFree" with the one word:
papersource
Fill out the rest and you'll get 30 days free.
Our seminar was an ideal learning and networking opportunity that
some 200 people took advantage of. The evaluations were very
enthusiastic. It was especially encouraging to see so many
highly-experienced NPN experts in attendance.
Having taught and hosted note seminars for over 20 years, Alison
and I have learned that there are two key elements to a successful
event. By "successful," I mean one that is of maximum benefit to
the participants. Those elements are teaching and networking. The
teachers must be the "real deal" who DO what they teach. They must
also have the heart of a teacher, not that of a pitchman.
Networking is the other key element. We believe that quality
teaching attracts quality participants, who in turn make for
quality networking. We have been in this business long enough to be
able to provide the quality teachers, but only those who attend can
provide the quality networking.
Thanks to all -- teachers, sponsors, exhibitors and you who came --
who made this such a great seminar!
An expert on the foreclosure and NPN market in the western states
(including CA) told me at the seminar that he's seeing less
competition from hedge funds buying foreclosures and NPNs. In
Sept. he saw "more opportunities than ever."
Mark your calendar for April 24-26 and join us for our Note
Symposium in Las Vegas. It's our annual conference for investors
and brokers to network and learn about a wide variety of topics
relating to notes: performing, NPNs, creating multiple streams of
income, alternative cash flows, factoring, self-directed IRA note
investing, using notes in tax planning, and much more -- except,
as always, NO SALES PITCHES.
Cheers,
Bill
W. J. Mencarow
The Paper Source, Inc.
www.PaperSourceOnline.com
www.PaperSourceUniversity.com
www.PaperSourceSeminars.com
http://store.papersourceonline.com
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4 VITAL TIPS FOR NOTE BROKERS
by James C. Levie
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.
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.
Here are 4 vital tips that ought to give you a head start:
1) In fact, there are only a few true end investors...true buyers.
Know who they are. Learn what their appetites are.
THE PAPER SOURCE REGISTRY OF NOTE INVESTORS is essential:
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. 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 your end-investor elects 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.
Some investors will require all of these, some will not:
a) order a 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.
Don't fight the system; don't resent the system; join the system
and reach success. The more you learn to probe and assemble a
great note package 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 has been CEO of a nationwide end-buyer of
seller-held mortgages and deeds of trust.
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