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How to Broker Notes and Get Started in the Note Buying Business - The Right Way
On brokering Notes/How to Broker Notes:
Here is a question I just came across on our new forum at: www.notebuyingprofits.com/forum recently:
I’m a newbie. I have read all the free information on your site. I plan to purchase your system next week. I have no money to invest in notes at this time. I plan to broker a few until I get comfortable with the process and get some investment money saved. Since this is my game plan, is this the right course for me just starting out. Does your A-Z note buying course give you the tools needed to only broker at first?
And here is my reply. This may address some of the ‘how to get started in the note buying/defaulted mortgages business?’ questions going through your head as well:
Brokering Notes is both an art and a science, and no - you don’t need money to broker notes. What you need, though, is a solid understanding of what you’re brokering if you want to make any money brokering notes.
Actually, brokering is a very useful way to start - you can learn about the entire closing process, and see a transaction in action, before you ever need to put any of your own money at risk.
Nothing compares to buying your own note in terms of gaining experience, but this can be a great way to start (making good money) before you build up enough cash to be able to buy your own note (where you can make great money).
There are a few really good brokers out there, however, that make excellent money doing what they’re doing.
Learn this right, and you can have none of your cash in the game, excellent relationships that you continue to build over time, and do incredibly well for yourself!
Let me give you an example of what sometimes happens with brokers:
If you were to call me up today (our office usually gets 3-5 of these calls each week) and say “Hi, I’m Sheryl and I’d like to broker notes to you - can you tell me what you’re looking for and I’ll go out and look for some?”, you wouldn’t make it through the door and we’d probably put your name down on the “do not answer” list.
Here’s why: if you, as a broker of notes, can’t demonstrate to me - a buyer of notes - why I should listen to you in 30 seconds or less, then you’re a time waster.
Here’s what the Good brokers do:
They call when they have product that they’d like to show us and have us bid on. And the only way to get product is to … talk to banks or other sellers of notes, and convince them that you know what you’re talking about and that you can help them out by finding buyers for their paper.(Take a look at this recent blog post for more tips on why it’s important to understand what you’re brokering: http://notebuyingprofits.com/blog/160/note-brokering-of-defaulted-mortgages-an-art-and-on-turnkey-investment-programs/)
So now - guess what - as a broker you need to actually demonstrate a similar understanding of notes that a regular buyer does like me.
Because banks want to deal with people who know what they’re doing.
And what a Bank will usually be looking for is someone who knows what happens in a bid and how bids are presented (stips and purchase contracts, fades, e.g. Step 3 of the A-Z Course and the note buying document toolkit that comes with it), what type of due diligence a typical buyer will be doing (title and BPO’s, Step 2 of the A-Z How to buy Defaulted Mortgages Course), and what individual buyers actually DO with the notes they buy (the 5 different note buying exit strategies, Step 4 of the A-Z note buying course).
Give yourself a solid education in the note buying, the note closing, the note negotiation and the note workouts, so that you can (WITHOUT DOING A SINGLE DEAL), demonstrate a solid understanding of the note buying space.
No one likes dealing with newbies who don’t know anything - everybody likes to deal with professionals, or people who come across as professional, who won’t waste their time and who can get them product.
You can spend a lot of time getting to the point where you’re taken seriously by buyers and banks (you need both in order to broker successfully, which not many people realize in this market).
And the A-Z Profiting from Defaulted Mortgages Business-in-a-Box course will jumpstart you - I have absolutely no doubt about it.
Also, on brokering - you should really listen in to the Q&A session I had with a TOP Broker, Steve Cohen over at Nautilus - as part of our Private Access Club webinars/calls.
It’s a 93-minute review session on what defines a good broker, what they do for their clients, what indicative pricing is for certain pools, and other very valuable tips to give you some insight into how to succeed as a note broker.
It is available for you to review for 30-Day FREE Trial that comes with the Private Access Club which you can find here: http://www.notebuyingprofits.com/privateaccessclub.htmlJust click on the link at the top left of the page - the free 30-day trial; you can then find the recording of this interview (and a LOT of other great recordings) in the members area.)
I look forward to seeing you out there very soon brokering notes!
There are 3 people, members in PAC and buyers of the A-Z note buying course, who I have personally had broker some very good quality note pools to me in the past 60 days.
Be your success,
Masters in Business Management
Western Institute of Technology
Bachelor of Science in Electronics and Communications Engineering
Western Visayas College of Science and Technology
Formerly Iloilo School of Arts and Trade
Love God and your country.
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