10 Key Questions For Note Investors
Published: Thu, 01/16/14
Jan. 18, 2014
Hi ,
Jeff Armstrong's article "Interviewing a Note Investor -- 10 Key
Questions" is below. Lots of good info!
Midnight this Monday, Jan. 20, brings two deadlines: The super
early-bird price of $297.00 for the Paper Source Note Symposium
expires, and so does the Southwest Airlines sale: as low as $69
one-way to Las Vegas for the Note Symposium.
The clock is ticking...time to lock in two great deals --
http://papersourceseminars.com/seminars/the-paper-source-note-symposium-cash-flow-profits/
and
http://www.southwest.com/html/promotions/nationwide-sale.html
Cheers,
Bill
W. J. Mencarow
President, The Paper Source, Inc.
www.PaperSourceOnline.com
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Interviewing a Note Investor -- 10 Key Questions
by Jeff Armstrong
Most note investors get a great deal of their business through note
brokers, and they advertise in the Paper Source Registry Of Note
Investors & Servicers to attract more business from you. See
http://papersourceonline.com/registry-of-investors/how-to-get-in/
Why can't you just search the Internet for investors?
You can -- but how will you know who's an investor and who's a
broker claiming to be an investor? You can go directly to the
funding source with The Paper Source Registry.
The fact is, there are very few true end-investors -- those who buy
cash flow notes with their own sources of funds. 95%+ of the
websites that claim to be investors are really brokers, selling to
the investors in The Paper Source Registry.
Some note investors have a broker package of information that you
can download off of their website or that they will send to you
about how to work with them and maybe their parameters and
guidelines. Links and all the info about what they buy is in the
Registry.
But before you start filling their email boxes or fax machines with
worksheets to price, you really want to talk with them on the phone,
or at least share a few emails back and forth so that neither of
you waste time or effort. You want to "interview" the note
investors and ask them a few questions that will help you determine
what they are looking for, how to work with them and if they are a
good fit for your individual business plan.
Over the years I have come up with some guideline questions to ask
note investors to help me in choosing which ones to send which
types of transactions. In finding out a note investor's
expectations, criteria and guidelines, you as a note broker will be
in a much better position to assist your note seller prospects.
Following are 10 important questions you should consider
asking a note investor. (You won't have to ask most of these
questions if you have The Paper Source Registry):
1. Who is my contact to send worksheets to?
2. Do you require any additional documentation besides a worksheet
to give a quote?
3. How do you prefer to receive the worksheet? (fax, e-mail,
website, etc.)
4. Do you give wholesale and retail quotes? (wholesale: you the
broker pays for the due diligence costs of credit and title checks,
etc.; retail: the investor pays all those costs.)
5. Do you give full and partial options? (Only full? Only partial?
both?)
6. What is your turnaround time to give me a quote?
7. What types of note collateral will you consider? (Only notes
secured by residential properties, commercial properties, land,
business notes, etc.)
8. What size notes do you prefer?
9. When a quote is accepted what do you want me to do?
10. Do you take care of all of the due diligence?
I have 10 additional questions that are nice to know the answers to
when dealing with a particular note investor as well so you don't
spin your wheels or waste their time (again, most of these are
answered by the investors in the Registry):
Do you purchase second position notes?
Do you purchase non-performing notes?
Do you purchase simultaneous transactions, pools or portfolios of
notes?
How many different ways can you purchase a note?
What are your maximum ITV limits?
Do you prefer notes in certain states, areas or regions?
Are there any notes or areas you don't want or like?
Are you a direct funder?
Do you use your own funds?
Do you borrow your funds to purchase the notes?
So, as you are browsing through the Paper Source Registry of Note
Investors, pick a few you think you would like to work with and
make contact with them. Use the opportunity to talk with the note
investors and start to develop a relationship with them.
A relationship with just a few note investors can be the cornerstone
of your successful note business.
You'll meet a lot of the major investors at the Paper Source
Note Symposium April 24-26 in Las Vegas. And I'll be teaching a
seminar on note brokering Thursday, April 24. Here's info on that:
http://papersourceseminars.com/seminars/april-24-seminars-included/
Remember, success demands action! Keep on marketing, it's going to
work! TWITA! (That's What I'm Talking About!)
Jeff Armstrong of Armstrong Capital has been a note broker and
investor specializing in the seller financed note industry since
1991. He can be reached at 818-865-2322 or by email at
info@armstrongcapital.com. For more information on how he can help
you with your note business or to request a quote visit
www.armstrongcapital.com
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