Real estate is not easy to sell these days, so many sellers are “holding thefunding” or “taking back a note.” You can invest in or broker these notes to investors and reap the rewards.~ These days many real estate sellers “hold the note,” that is, finance some of the purchase price. What many people don’t know is that these notes themselves can be bought and sold. They can be low-risk, high-return investments, or you can broker them to investors without spending your own money and reap the rewards. } This is called the cash flow note business.
First, the bad news: good notes are not easy to find. This is the most difficult part. You want to let the note holders of the world know that you can buy their notes. To do this requires that you know how to market your services . If you can, get your name out to note holders — if you do this, you will be able to buy more notes than those people with poor marketing skills. Finding notes is the only way to succeed in this business. Fortunately, there are many ways of finding holders of notes . But, you must spend at least 80% of your time looking for them . You will be pleased you did! You won’t be sorry!
Once you find a note, if you are going to broker it you will have to determine if it will appeal to note buyers. There are simple worksheets that automate this process for you. You can get one of the best for free at the e-course mentioned in the last paragraph.
The best note brokers and investors know how to use a financial calculator. Actually, they are not difficult to use . In fact, the financial calculator is easy and fun to learn. Notes can be purchased in so many creative ways that you can solve virtually any problem that the note seller may have.
What about the paperwork? An escrow or title company will do all the paperwork, so you don’t have to worry about this complex part of your note transactions. You must understand notes, but the technical parts of this business are best left to the escrow and title companies.
If you are going to broker notes, you will need someone~somebodyto sell them to. The best sources are the corporate financial institutions who will buy your notes for a good price and pay you a handsome commission. In addition, you may eventually cultivate private investors–and even pension funds–to finance your note buying business.
The Paper Source offers a 7-part e-course that is packed with information — and it’s free! It tells you the good and the bad and will help you decide if note brokering or investing is right for you.
