9 Questions Note Owners Ask / Still Room For You!
Published: Wed, 04/23/14
A Service of The Paper Source, Inc.
April 23, 2014
, GREETINGS FROM LAS VEGAS!
Today I'm going to go over 9 questions note owners often ask
and how I deal with them. My article is below.
I'm writing from Las Vegas where we're preparing for THE cash
flow event of the year; our annual Paper Source Note Symposium
starting tomorrow. Some 250 people will be here: cash flow note
investors (both performing notes and non-performing), note brokers,
entrepreneurs, fund managers, note servicers, loss mitigation
specialists, trustee services, forced-placed insurance specialists,
note software demonstrations...it will be an amazing networking and
learning opportunity you won't want to miss.
Signups are still coming in. If you haven't registered there's
still room for you. Check out the lineup of teachers and
activities and reserve your spot at
http://tinyurl.com/2014notesymposium
or call 1-800-542-2270.
Cheers,
Bill
W. J. Mencarow
President, The Paper Source, Inc.
www.PaperSourceOnline.com
P.S. Many people have asked for the Note Symposium schedule,
so I've included it below.
If you can come for only part of it, you're still welcome, and
we can discount the rate. Email wjm@PaperSourceOnline.com for
info.
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9 QUESTIONS NOTE OWNERS OFTEN ASK
by W. J. Mencarow
(BTW, two teachers will expand on this subject at the Note
Symposium. Abby Shemesh of Amerinote Xchange will teach "Finding
Note Owners With Any Budget - Or None At All & Getting Them To Say
"Yes!" To Your Offer."
Fred Foote of First National Acceptance Co. will teach
"What's Your Discount? Properly Handling Objections In
The Note Business And In Life."
Fred is a graduate of Harvard Law School and sat next to Barack
Obama. But Fred says, "I never saw his birth certificate.")
Note owner: "I saw your ad. What do you mean you buy mortgages?"
Your best strategy is to ignore the question and ask one of your
own: "Are you receiving payments on a mortgage now?" (Or structured
settlement or whatever is appropriate). Otherwise, you may find
yourself explaining note investments to someone who is simply
curious -- or worse, to your competition. Don't waste your time with
people who aren't holding notes.
"What do you pay?
Again, don't waste your time.
Make sure they understand that you are only interested in beginning
a conversation if they have something to sell. Ask AGAIN, "are you
receiving payments on a mortgage now?" It's amazing how many people
think they can sell a mortgage they're paying on! If they say yes,
the answer to the question of what you pay is, "it depends," and
you then proceed to ask them the questions from your intake sheet.
"How much of a discount will I have to take?"
"As little as possible. Each note is different." Then ask your
questions. I'm always happy when note holders ask this question. It
means they realize a discount is involved. It also means they know
something about the time value of money, and that lessens the
chance that they could later accuse me of taking advantage of a
financially unsophisticated person.
I'd much rather talk about how much of a discount is involved
rather than try to explain why notes are discounted!
"How long does it take before I get my money?"
"Once you furnish me with all the documents I need, the process
will take a few weeks." Note the all-important conditions: once YOU
furnish me with ALL the documents I need.
"Why does it take so long?"
"The title search and appraisal are what takes the longest, and we
have no control over those. It may very well be shorter." In other
words, any delays are somebody else's fault. It's usually just that
way!
"Are there any points or fees I'll have to pay?"
My answer is, "no, there are no points, and I'll pay all the
closing costs. Nothing will be deducted from what I pay you." This
creates good will and a cleaner transaction. If we're buying the
note for our portfolio, it also allows us to keep control of the
situation: if we pay the closing costs, we pick the lawyer, and he
works for us. This is crucial to our closing system.
"What documents do you need?"
"Not many, really. I'll go over that with you when we meet to
complete our agreement to buy the note. Would 3 o'clock this
afternoon be all right, or would 8 o'clock tonight be better?"
"What if I can't find all the documents?"
"That's OK. The lawyer or title company which handled the property
sale should have copies of the key documents or be able to get them
for us."
"Can I use my own lawyer?"
"I would insist on it. I strongly encourage you to have your lawyer
review everything in advance. Of course, you'll have to pay your
lawyer's fee."
Most note sellers don't want to pay for a lawyer, and that last
sentence makes them think twice. A note seller who asks this
question is afraid you're going to take advantage of him. The best
way to dispel this is to do what he doesn't expect -- insist he
consult his lawyer before he acts. "Whosoever shall compel thee to
go a mile, go with him two miles." (Matt. 5:41)
*************************************************************
Many people have asked for the Note Symposium schedule, so here
it is:
THURSDAY AFTERNOON, APRIL 24
1:30 Note Brokering 101
Jeff Armstrong, President, Armstrong Capital
1:30 Advanced Note Investing: Partials
Tom Henderson, President, H&P Capital Investments, LLC
4:15 2014 Regulations & Impact On Note Investors
Joel Markovitz, Vice President
Land Home Financial Services
5:30 Welcome Reception
Sponsored by AmeriFunds Diversified Funding
FRIDAY MORNING, APRIL 25
8:00 Continental Breakfast Courtesy of Brownstone
Mortgage Capital Corporation
8:30 Welcome and Introductions
9:00 What's Your Discount? Properly Handling Objections In
The Note Business And In Life
Fred Foote, First National Acceptance Company
Sr. Vice President, First National Bank of America
10:00 Meet With Exhibitors/Networking
Coffee Courtesy of Granoff Enterprises
11:00 Seller-Carryback Business Notes:
The Untapped Cash Flow
Byron Rouda, President & CEO
Security Financial Services
12:00 Luncheon Sponsored By Investors Financial Corporation
Florentine Room C
FRIDAY AFTERNOON, APRIL 25
1:00 Buying & Brokering 1st Lien Non-Performing Loans
Jack Krupey, Partner & Portfolio Manager
Gemini Capital Managers
2:00 Why Seconds Come First: Keys To Success In
Non-Performing Junior Notes
Sándor Lau, Chief Inspiration Officer, Stewardship Capital
3:00 Meet With Exhibitors/Networking
Refreshments Courtesy Of
AmeriFunds Diversified Funding LLC
3:30 What You Need To Know About Dodd-Frank
& How To Deal With It
Ric Thom, President, Security Escrow Corporation
4:15 Performing & Non-Performing Commercial Notes
Alex Nackoul, Managing Director - CEO
Brownstone Mortgage Capital Corporation
5:00 Investors' Panel
6:30 Networking Reception
Sponsored by US Mortgage Resolution
Florentine Room A
SATURDAY MORNING, APRIL 26
8:00 Continental Breakfast
Courtesy of Land Home Financial Services, Inc.
8:30 Creating Multiple Income Streams
Martin Granoff, President, Granoff Enterprises
9:30 Advanced Internet & Social Media Marketing Strategies
Simon White, President, LocalBlitz.com
10:30 Meet With Exhibitors/Networking
Coffee Courtesy of Granoff Enterprises
11:00 Non-Performing 2nds: A Unique Approach
To The Perfect Financial Storm
Gordon Moss, President, Quixote Ventures, Inc.
12:00 Luncheon
Sponsored By First National Acceptance Company
Florentine Room C
SATURDAY AFTERNOON, APRIL 26
1:00 Advanced Concepts Using Notes To Defer Income Taxes,
IRA Strategies, Financial Privacy...& Much More
John Groom, CPA, President, John Groom, Inc.
2:30 Meet With Exhibitors/Networking
Refreshments Courtesy Of Trustee Corps
3:00 I Opened My Roth At Age 12 (And Made Over $600 A
Month From My Notes At Age 16): How To Get Your
Teenagers Excited About Wealth Creation
Caleb Preston, Private Money Specialist
McKinley Mortgage Co., LLC
3:45 Finding Note Owners With Any Budget - Or None At All
& Getting Them To Say "Yes!" To Your Offer
Abby J. Shemesh, Acquisitions Director/Managing Partner
Amerinote Xchange
4:30 Advanced Note Marketing
Jeff Armstrong, President, Armstrong Capital
6:00 Note Symposium Adjourns Until April 30 - May 2, 2015
SUNDAY, APRIL 27
Optional hike in Red Rock Canyon sponsored by Stewardship
Capital. Limited space -- sign up at their booth.
More information: http://tinyurl.com/2014notesymposium