Good Day All,
We all are very aware of the current RE market. I have a few investors who are looking to pruchase notes. I am not having much luck bringing them the type of notes that they want. Is this not a good time for a note finder or is this the best time? Any comments are greatly welcomed. Thank you in advance.
Note nanny, I don’t mean to be mean but you’ll never make good money doing this. I tryed this myself for almost 2 years and with more Notes being created in this bad economy the Note investors will only buy at a hugh discount. Besides that most of the people here will either keep their Notes or go around the broker/finder and go directly to the Investor. Sorry maybe you’ll have better luck than I. Herbster
I’ve seen people make money brokering notes, just not very many. Similar to what Herbster said, I find that the discounts desired are so high, that I end up keeping the notes I create. To be fair, they are all on mobile homes, and the sales are structured to fill lots in my parks.
Note Nannie,
Being a Note broker, in my opinion, is ALWAYS a good business!! Obviously, there are always going to be those people that state that they don’t or can’t make money in this business, especially in this economy…just as there will always be people, like myself, who will tell you that you absolutely CAN make money in this business, even in this economy.
Note nannie, this business, Brokering Notes, is really two fold…
First off, you have to actually WORK it!! That means doing the things, every single day, that need to get done, to make yourself successful!! You also have to be consistent! Bottom line is that you have to do the things that other people are not willing to do, or don’t want to do, to make yourself stand out from the rest! And, never, never, never, especially in this market discount your profit so much that you are basically working for FREE…as that is a HUGE mistake, that will put you out of business, that a lot of Note Brokers are doing right now!
Secondly, don’t plan on remaining a Note Broker!! What more can I say to that? If your ultimate goal in life is to make the $5k-$15k (normal dollar amounts) per transaction…then your ultimate goal is incorrect! You should be a Note Broker for two reasons, and really two reasons ONLY Note Nannie…
#1.) To put CASH in your pocket!
#2.) To learn this business, so that you can purchase these notes for your own portfolio!!
Note Nannie, can you make money in the note brokering arena, in this economy…ABSOLUTELY! Will it require a consistent amount of work…ABSOLUTELY! Will it spring board you to other avenues of income in the real estate arena…ABSOLUTELY! Can you make it in this business…ABSOLUTELY! Will everyone make it in this business…NO WAY!!
If you are the person that makes it in this business, and that grows and builds wealth…or if you are one of those people that state that you can’t broker notes, in this economy and not go broke…Ultimately, that is up to you, and to you ONLY, Note Nannie…
If you seriously want this though…and if you take the correct actions…then you will get the proper reactions (meaning the CASH!!). And, do NOT allow anyone anyone to tell you that it just can’t be done, or that there is no money in this business…this economy or not!!
Good luck and much prosperity!!
Marvin Properties :banana
Well, I’m excited. Any practical advice Marvin?
Sorry - any PRACTICAL advice Marvin? Other than actually doing work, and don’t work for free?
What do they want?.. Performing or non performing? Where? What price range did your buyer tell you? What is the bulk size? Can they proof up first?
What is their buying criteria?
Don’t be discouraged…and don’t let these other investors who failed bring you to failure too…there are people who have succeeded in note brokering and many more who failed…so what’s new in business? Every business is the same. Just know if others have succeeded, you can do what they did and experience the same success!
I’ve been doing this since 1991 successfully. Also, I’ve trained/mentored many ‘want to be’ investors around the country and had great succees with that activity.
If you wer being mentored by me, I would most likely advise that instead of competing with other investor groups with deep pockets, which will drive pricing up and profits down, I would recommend that you ‘create’ notes and resell them.
I do mobile homes, cars, boats, trailers, business equipment, etc. In this economy, small business people cannot get financing so the need is there more than ever! Buy for cash at a huge discount, and resell at full retail with owner financing, get a large down payment and finance with terms. Your note and title can be kept when you have money, to earn high yields, or you can resell to an investor at a high interest rate for a profit.
ie: Buy Mobile Home for $3,000 cash.
Sell for $500 down and $200/month for 60 months.
This leaves $2,500 in the deal with a $2,400 cash flow…almost 100% yield.
Sell at 18%: 60 N 18% i/y $200 PMT $7,876.05 leaving you $5,376.05 profit!
That buys alot of groceries. Do that a couple of times a month and your troubles will be behind you. There are billions inside IRA accounts that could be a resource to tapp into for funding the sale of those notes.
Hope this helps.
Rob in Atlanta
Investor/Mentor