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Make Millions Through Note Brokering

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note brokering

Image by Brett L.
The house that The Children of the Capp reside in is for sale and there are weekly open houses. Last week, Elizabeth and I stayed home during the open house and we got this note at the end of it. I am pretty sure that last line is a subtle jab at us for being home. Maybe not, but I’ve made up my mind.

Make Millions Through Note Brokering

Real Estate Investing! These are three words that usually intimidate many people because of the negative media coverage it usually gets. Every day brings a new “real estate crisis” story to the headlines of national and local news.

But don’t let their stories affect your outlook on the real estate market. Instead of focusing on foreclosures and other methods of real estate investing, why not focus on something a little more subtle. That is where the power of cash flow notes comes into play.

What is Cash Flow Notes?

If you aren’t familiar with cash flow notes, their nothing more then promissory notes. Some people refer to them as old-fashioned I.O.U.’s for a lack of better terminology. The (cash flow) note is usually secured by a mortgage or trust deed in this case.

Okay, So How Does Private Mortgages Work?

The answer is rather simple. Let’s say you were to sell your home today and you have an interested buyer who is willing to pay a bit more then what your asking. Only downfall is that the bank refuses to provide them a loan, even though they at the same time have a nice ,000 down payment. What do you do?

Easy, make yourself the bank. Simply tell them to provide you with the ,000 down payment and you’ll accept monthly payments of $xxx.xx over a certain amount of months that is defined in the promissory note. The mortgage or trust deed will secure the promissory note and will remain in YOUR name until the entire balance is paid off on the note.

The note usually includes everything from the sale price, the interest and a lot more.

Make Money Without Money: Possible?

If your interested in making money with these cash flow notes, your able to. It takes a bit of elbow grease and WILL take some money to market your service. But don’t let that scare you though cause note brokering is very very lucrative.

So, in a nutshell, how do you perform note brokering?

First, you’ll need to find a cash flow note. They can be found in many areas including your county courthouse or you can purchase “leads” from online businesses that offer cash flow note leads.

Next, you’ll need to contact the owner of the note. The note usually includes the owner’s address and phone numbers so you can take your pick of how exactly you inquire about a note. But don’t try and flood the owner with a bunch of calls and useless junk mail. If they say their not interested, tell them the opportuntity is always on the table so they feel welcomed back.

If they agree, you’ll need to ask them a few questions. These questions vary but usually inquire information about the note. Once you’ve completed the form, thank them and tell them you’ll be back in touch.

Fourth, contact the investor (or investors) who you feel may most likely be interested in the note. Provide them with the information on the sheet and they’ll give you a quote (price) they’d pay for the note.

Fifth, as a note broker, your entitled to a commission. So in this case, you’d deduct whatever amount you want to make from the deal. After you do that, call the note seller back and offer them the price (NOT INCLUDING YOUR DEDUCTED COMMISSION) and if they accept it, tell them the investor will be in touch.

Call the investor, tell the investor the price they’ve accepted and let the investor handle the work from there.

An Example of a Note Broker Deal:

Not too consume too much of your time but here is a quick run-through of how this works.

You contact a note seller who needs money for their son/daughter college. They have a 5,000 note and want to rid of it quickly. You contact them, inquire with the questions and write the answers on a note sheet. You then contact the note investor who quotes that they’d pay 0,000 for the note. You decide on a sufficient ,000 commission so you call the note seller back and quote them ,000 for the note. They like it and accept it. You just made ,000 and the seller gets ,000 – as for the investor, they get the note and the note payments.

Getting Started Now

Many of you are probably intimidated by now because of this article but I want to ease your mind a bit. This article was not intended to put fear in your mind that this industry is impossible to get started in. The fact that it may take a little bit of time doe not mean it is at all impossible to do.

I do however suggest you start learning now instead of waiting. I waited a while myself and got into it and was pretty successful. My slacking though could be your advantage since I don’t hardly do note brokering anymore, that’s more notes for everyone out there. So if your definitely interested in getting started, check out the “Author Resource” box below for a helpful link.

Looking to get started in note brokering today? You’ll definitely want to check out this link here today to get started in cash flow notes.

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