About Short Sales

Start Your Note Buying Business by Brokering Notes

I am surprised at all the requests that I have received from other investors and students that are interested in brokering notes.

I wanted to help clarify a couple of things that will make it easier for anyone who’s considering brokering.

I wand to make sure that we improve your profits and close rates when you are brokering. (who wouldn’t want to?)

Brokering notes is obviously the perfect strategy for folks who want to get into the note buying business, but don’t have access to money currently.

Sherry’s Success With Brokering Notes

Sherry is a broker, her and I have been working together.

You can also be earn great revenues in note brokering if you copy Sherry’s business style. She is broker that know how the game is played, and she knows what she is doing.

Her background is in banking. Sherry started brokering a couple years ago and has been successful is what she has been doing.

Brokering Notes, Your Four Keys to Success

Here are Sherry’s four keys to success…

1. Determine if the buyer will really buy notes

2. Make relationships with sellers that actually sell

3. Figure when you should step out of the way. Know who you are working with. You have to determine whether this is after the 1st trade or maybe the 3rd or 4th.

4. Stay in contact with both parties and maintain communication. Lose one, and you may lose your note deal.

Remember this, the better you know the note buying process and the product, the greater the likelihood of a successful trade.

Build Relationships When Brokering Notes

You may think that it sounds like it’s only for pros who come from a banking background.

Non performing note trades are not rocket science. Anyone can do it.

The right approach matched with some creativity will help you profit.

When you are brokering notes, you need to build relationships.

Learning how to broker notes is a social business. If you are what they call a “people person”, then you should consider this industry.

Be your own success.

Buying Mortgages from Banks, What To Do

Here is a question that is asked quite a lot.

“My understanding is the federal government is going to be offering financing to private equity and hedge funds to buy up the bad debt aka defaulted mortgages.”

It seems to me, that this would create more competition?

“What are your thoughts on this?”

Well, here are my thoughts:

How to Buy Mortgages from Banks – The Four Buckets

The competition is adding to the deal sources when buying mortgages from banks.

There are 4 “buckets” in the note buying industry:

a) Big boys – buying $100M and above

b) $20-100M – Big Boys

c) Small boys – buy $1-20M

d) Less than $1M – Mom and pops

A lot of the shifting is happening between the big boys and mid boy stage. That is just my opinion in terms of raw dollars.

So lets think about these investors financials for a second.

The only thing that they are hungry for is the yields on their note buying investments.

Defining Your Deal Sources & How to Buy Mortgages from Banks

If you fall into the mom and pop or small boy category, guess who just became your new deal source for buying notes? Yes, the mid and big boys.

They are looking for a huge internal rate of return (IRR) so they are buying more aggressively than what you will see compared to the small boys and the mom and pops.

View them as a note buying deal source, partner up with them, come up with some transparent “Cost plus 5? type of approach where you give them 5 points in exchange for cherry-picking their portfolio and piggy-backing off their due diligence, and why wouldn’t they be interested in selling notes to you?

So you don’t have to be worried about the the water from the your fountain being intercepted. All you have to worry about is repositioning yourself in a way so that the water still drips in your direction.

And you can always look for other opportunities to buy your non performing notes.

Hope this information helps you.

It’s time for some action!