A Question on How to Broker Notes
Most people ask this question.
I’m new in the note buying business. I’ve done my research and have read up on all the free information available.
I have no money to invest at this time.
My plan is to broker notes and learn the process while I save some money for my own investments.
Since this is my game plan, is brokering notes the right course for me?
A Thought on How to Broker Notes
My reply is this.
This will answer the questions on getting started in the note buying/defaulted mortgage business, that many of you have.
When learning how to broker notes, you need to know that it is both an art and a science.
No, money isn’t required to broker notes.
What you need though, is a solid understanding of what you’re trying to do if you want to make any money.
Learn How to Broker Notes and Jump Start Your Business in Note Buying
Starting with brokering can actually benefit you.
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.
You won’t gain better experience until you are buying your own non performing notes, but this will be a great way to start while you are saving up cash for your own notes.
Note brokers make a good amount of money, but know that there are very few out there.
You can do incredibly well while building relationships that will grow over time. Just learn and do this right, and build your wealth without putting any cash forward.
How to Broker Notes Example
Let me share with you a scenario that sometimes happens with brokers:
I usually get the following type of call about 3-5 times each week. Say you called me up and said, “Hello, I am interesting in brokering notes to you, what are you looking for”?
I would probably put you down on a “do not answer” list and I guarantee that you would never make it through the front door.
This is why:
If are going broker notes, you better be able to show me, the note buyer, why I should listen to you in 30 seconds or less. If you are unable to do this, then you are a time waster.
How to Broker Notes, What Makes a Good Broker?
Good brokers do this:
Once they have a product that they want us to bid on, they call. Not before.
And in order to get the product, these brokers have been talking to banks and other sellers of notes and have convinced them that they know what they’re talking about. They need to show them that they can help find buyers for their non performing notes.
As a broker you will need to have a similar understanding of note buying that a regular buyer like myself does.
Why?
You need to know what you are doing if you want the bank to work with you.
Banks want to work with someone that is familiar with what happens in a bid and the process involved. Terms like stips, purchase contracts, fades, BPO’s are things that you should you know. You should also know your buyers, and what they actually do with the notes that they buy.
Helpful Advice on How to Broker Notes
Get a good background of the note buying business. Educate yourself. You should know the business, the closing, negotiations, and the workouts so that you understand the note buying space.
If you act like a newbie and show that you know very little, no one will want to work with you. Everyone wants to deal with a professional who can get them the product and not waste their time.
A good thing to remember when you are learning how to broker notes.
Alot of people in this market don’t realize that you will need to spend a good amount of time building your knowledge. But once you do, the buyers and banks will take you seriously. And you will be able to broker notes successfully.
I know I will see you out there soon brokering notes!
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