The business of buying notes secured by real estate or other assets consists of:
Finding the notes is the most difficult part of the business. You want to let the note holders of the world know that you can buy their notes. To do this requires marketing and advertising skills. If you can get your name out to note holders 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 doing this type of marketing.
Negotiating to buy notes requires good people skills and good skills with a financial calculator. The calculator is easy and fun to learn. Notes can be purchased in so many creative ways that you can solve almost any problem that the note seller may have. Your calculator skills allow you to craft such deliciously complex offers that your note seller will be pleased and your competition will be baffled.
Buying notes requires that you have an outlet to sell them and an escrow company that can make sure the paper work is done correctly. The good news is that the complex, paper part of the note business can be left to the escrow company. You must understand notes and mortgages and trust deeds but the technical parts of this business are best left to the escrow and title companies.
Selling The Notes for a Commission: Unless you have an outlet to sell your notes, you are not in the note business. Because no matter how much money you have, you will eventually run out and have to find investors. 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 cultivate private investors–and even pension funds–to finance your note buying business.
To learn more, we sell inexpensive books at our on-line store.