Buying Notes

Can anyone let me know if they are purchased notes and if it is worth while?

I am a home builder and I am looking for a different career.

Thank You ;D

Howdy Scott:

Kind of hard to get started and build up a client list etc. It can be very profitable to buy notes at a discount earning about 20 to 25% interest on the money that you can borrow to buy the note with.


Hey Jr.

I just have to ask you something…

You seem to answer a lot of people’s questions but rarely do I find your answers statements of facts. They always seem to be your opinions and almost always on the timid and negative side.

My question is… What is it that you actually do and why do you answer questions that you have no experience in?

The note business is a great business. It is easy to get started in it.
I have agents that find notes their first day.

Just a word of caution to Scott… Scott, do not take any of thos silly courses where they charge you thousands of dollars to teach you the secrets of the business. There are no secrets… only to those who have never investigated the business.
It’s all about marketing and knowing who to ask. The rest is just order taking.

BTW Tedjr… I’m not trying to be argumentative with you, I am just confounded by your answers and comments.


I have a comment…
Judging by the recent increase in amt. of mail I get from note buyers & the number of email I’ve gotten since I joined this board, it would seem to me there is a fair amt of competition in the note buying biz. Correct?

There is a TON of competition among investors and brokers. Its a cut throat business.


I am beginning to see that.

seems like good news for note sellers then … :wink:

Depends on how you look at. One would think it would be good right? What I see happen is that a noteholder will shop their note to death. In hindsight this isn’t the best thing to do as the deal will be seen by so many investors that people will overbid just to get a person to commit. Then some buyers pull the “bait and switch” as closing nears, saying that they can’t fund at the agreed price due to X, Y, and Z. Then the noteholder pulls out of the deal and puts it back on the market. I’ve seen it happen many times.


knowing this, I would be more inclined to go with a reputable note buyer in the area
example … there’s one that uses the title company we use & is know there
rep does count for a lot in my book

is there any contract or agreement note buyers sign that can give the note seller a little bit of security?

Well the agreements are signed for an agreed purchase price. If for some reason it doesn’t work out that way then the deal can be voided. There really isn’t any security that they can offer. An idea would be to have a clause where the note seller is guaranteed a sum of cash if the note buyer doesn’t come through at the agreed price. Of course this is a moot point if the noteseller hasn’t told the truth from the get go. I’ve seen that happen as well.


Howdy Jeff:

Sorry to take so long to respond. I am very busy rehabbing and buying and selling buildings. I am out of town most of the time in Corpus Christi working on a $250K rehab.

You are correct I do not know enough about the note buying business and I wish I did. I do pay attention to what is going on around me and I do notice a lot of competition just like buying houses at discount. I know it takes a strong financial statement to get loans to buy notes and that is not a walk in the park. I am not trying to be negative all the time but I do not paint pictures like some gurus how easy the business is where with $10 dollars you can buy a million dollar building or note and make $100K. It took me 6 months of hard work and risk to make $100K . If it was as easy as a lot of folks say I would be a zillionaire and I would no have posted over 2000 posts trying to help others avoid some of the mistakes I have made and continue to make.

I am sorry you do not like my posts. I have hundreds of responses like this to my posts and they keep me excited about trying to help others.

THANK YOU. I too am new to RE investing. I am looking to purchase, rehab, sell a property and purchase a 2nd to lease. Your answer/advice is great - straight, direct to the point. It confirms what I need to look for as an investor. :). I think my biggest fear is just getting started. How do I go about finding a mentor? Any suggestions?


To understand a little more about me you may want to read my success story: We Had to Build This House:


I can appreciate your excitement and enthusiasm. My suggestion is that when you are giving your opinion, please make it know that it is an opinion so you don’t accidentally give someone a wrong answer that they may follow thinking it was experienced advice. participation is great, and seeing everyone’s views are also food for thought.

Keep up the good work!


Hi there friendly note buyers and sellers.

To those of you who feel that the Note market is saturated or highly competitive. Only if you listen to those hyped up super sales people on late night TV trying to get you to go to their seminars to purchase their $5,000 training programs.
It is far less competitive or saturated than the residential mortgage business, I can tell you that for sure.

As for the rest of this section talking about the cut throat note buying business etc. etc.

Hmmm… I’ve never come upon that situation.
Every note or receivables purchase we have brokered has gone smoothly. That is not to say that everyone closed… Not everyone qualifies and not everyone accepts the offer we present, however, I have never had anyone bait and switch nor have I had anyone even counter bid on a deal we were working on.
I can’t even figure out where all of these other people would even come into the mix.
Note sellers are generally not shoppers. Usually they are solicted by someone like you and were not even thinking of selling their notes, etc.
As for the other mention of bait and switch…
It is all done by contract.
Before a contract is signed, the Buyer gets a copy of the Note and looks it over and makes an offer.
If the Seller likes the offer, he/she accepts the offer and the agree on terms. This is all put into a contract. The Seller reviews the contract and if they like it signs the contract and the contract is then counter signed by the Buyer. At this point there is a closing, just like with a mortgage, but simpler. At the closing, there is an exchange of note for funds, just like the exchange for a mortgage of the mortgage note for funds.

Hope this helps someone.


I am the one that started the post. What I am looking for is if the note purchasing business is a good one to get started in. There is a company call Charter Financial that buys notes, all I need to do is locate them locally. Then they will take over and secure the deal after the offer they present is accepted. Sounds simple, I know it takes a lot of work locating notes, but what the heck, if you like it its worth it.

So, is it really hard to locate notes? Courthouse, etc.

Thank You
Scott Price

What you are talking about is being a broker. You find the note. Get the info required by your note buyer. Get that info to them. They make an offer. Noteseller accepts. You get a fee for your work if and when the deal closes.

Do you have time to visit the courthouse? Your asking if its really hard to find notes. Have you tried to find any? You can find notes for sale on the net. Find them at the courthouse. Do marketing for them in the ads. Its not as easy as it sounds, looks, or buy some gurus wisdom. Its hard work like everything else. But…like everything else if you work hard at it you should be ok.


No problem with the hard work. I like to do research.

Its like anything, you get out of it what you put into it.

Thank you for the information


Hi Scottmprice,

The note business is really not that complicated.
Going to the courthouse is not the most efficient use of your time.
You’re not going to find anything useful there. By the time it is recorded and you find it, it’s sold.

Before I go any further, one warning… DO NOT PAY ANYBODY ANYTHING to either teach you or do your note. We don’t charge our brokers to bring us business and it’s absurd that there are people out there charging you to teach you to bring them business.

You have to first decide what kind of notes you are interested in brokering… Accounts receivables?, settlements?, Invoices, Real estate notes, privately held 2nds, Debentures???

Once you decide where you want to put your efforts then it’s marketing time.

Marketing is either sweat equity or Bucks.
The simplest way is strategic advertising.

I’m not going to write a syllabus here on marketing techniques for the note business, but first pick your area of interest then we can talk further.

or as I like to say… beware of the naked man that offers you the shirt off his back.


I am interested in starting out in note buying, but for someone else. I am thinking of using Charter Financial plan.

Jeff, please guide me or give me your site so I can look at your company

Thank You
Scott Price

  1. hey jeff went by tour site looks good did some paperwork and submited it >>>> how long tell i get a answer ???