Given that Scott Arpan of Advanced Seller Data Services cited in our teleconference last Thursday that NEW note creation (and this is just what actually shows in HIS data compilation) could top 110,000 this year (and he covers 1/2 of U.S. counties so he’s not seeing all of the new notes out there) AND given the fact that the National Association of Realtors cites a seasonally-adjusted annual rate of 4.48 million homes that will be sold this year (but, taking into account at least 30% of those NAR figures reflect distressed properties that don’t figure into new note creation, we’ll adjust that downward to about 3.13 million homes will be sold this year for our purposes)– meaning that 110,000 out of 3,000,000 would be 3.6% and that is a CONSERVATIVE figure because Scott is including only 1st position notes over $30,000 and he’s only seeing somewhere over half of all new notes.. so we can say with a large degree of confidence that AT LEAST 1 in 25 new home sales involve seller financing based on those numbers. That is phenomenal, but HOLD ON… the actual situation is better than that…

To explore this further, Scott’s data is solid and he taps records from 1600 counties, of which there are 3009 in the U.S. So, his proprietary data compilation methods show a definite pace of 110,000 NEW seller-financed notes this year but we can interpolate that to be a little over 1/2 of the actual amount, so let’s call that, conservatively, 180,000 new notes all told this year. So we take 180,000 out of 3,000,000 and that gives us 6% which is 1 in 16!

(There are probably well over 1 million 1st position notes that have been put into circulation since 2008 but let’s not forget all of the 2nd positions out there in addition to those.)

Given that industry expert Eddie Speed already had the numbers up to 1 in 50 seller-financed transactions to home sales as recently as 2009 (and that number was only 1 in 400 back in the 1990s), that would mean we’re climbing rapidly. Make that EXPONENTIALLY.

(And these are just real estate notes we’re talking about. Business notes and other cash flows aren’t even considered here and those are vast markets in and of themselves.. matter of fact, those markets are much LARGER)

So, whether you’re marketing directly to note holders (using a list) or marketing to referral sources or a combination of both, you can be confident that the business is there and will not run out anytime in the foreseeable future.

Read ALL of the Tips

Subject: How to put together a highly effective direct mail marketing program targeted specifically to known noteholders

This “live” teleconference “Interview with the Expert” will feature Scott Arpan of Advanced Seller Data Services.

Scott is a seasoned expert who has been researching noteholder data for years, if not decades. In fact, Scott is the premier expert researcher for the note market today, and he has fine-tuned the entire process of researching and direct-mailing noteholders into a science. He started creating his own lists in mid 1990′s based on public records data and he currently mails about 20-30,000 pieces every month– so he has a wealth of experience you can and will benefit from when you listen in!

BUT you need to know that the conference will be oversubscribed, so you will need to register ASAP. You can register for the teleconference to be held Thursday May 17th at 8:30 PM Eastern Time (7:30 Central, 6:30 Mountain, 5:30 Pacific) by simply entering your name and email address on the form provided (conference phone # and access code will be emailed to you upon registration):
http://noteinvestors.com/teleconf-regis.htm

MORE INFO:

We’ve already told you that note creation is up 40% the past 2 years- Scott will expound on that and he will give you the demographics and industry trends. He’s also going to give you valuable pointers as to how to put together a highly effective direct mail marketing program targeted specifically to known noteholders based on his 18 + years of hands on experience.

He’ll tell you exactly what to look for in a list vendor to ensure you get all current names, eliminate duplication, etc, etc and a whole lot more.

He’ll tell you the most efficient and inexpensive ways of getting your mailings out, and he’ll tell you how to optimally set up your phone system to maximize lead generation and how to considerably boost your response rate.

I think you get the idea. You’re going to learn a lot here from an expert researcher and marketer, and by the end of this interview you, too, will be armed with all the tools at your disposal to go out and launch your own pinpoint direct mail campaign that you will use in conjunction with your online and offline marketing to referral sources.

Again, the conference will be oversubscribed, so you will need to register ASAP. You can register for the teleconference to be held Thursday May 17th at 8:30 PM Eastern Time (7:30 Central, 6:30 Mountain, 5:30 Pacific) by simply entering your name and email address on the form provided (conference phone # and access code will be emailed to you upon registration):
http://noteinvestors.com/teleconf-regis.htm

WHAT THIS MEANS– AND IT’S ALL GOOD…

The greatest BUYER’S MARKET in our lifetime is officially “on” and in full force. Here is the big picture: Banks still aren’t lending. Seller financing is up and filling that void (with a vengeance). As home prices stabilize and tick upwards,  more buyers who want to avoid missing out on the lowest possible deal will be drawn in, and sellers who must sell but have been stuck in place for four + years will continue to take back more financing than ever before in order to move their properties. Resourceful cash flow practitioners are positioning themselves at the epicenter of this movement by helping home sellers liquidate the seller take-back notes they’ve created into lump sums of cash.

KEY POINT: To capitalize on this situation, you must EDUCATE the noteholder. Educated noteholders are the only ones who sell. A simple “I buy notes” message is NOT enough. You have to position yourself as the “go to” expert here. Breaking down the barrier is NOT that hard. It just takes some know-how and the right approach. Our Elite Cash Flow Network members, to name one group, are extremely well-trained for blasting right through these barriers. And I field quite a few excited phone calls from members who, after having broken through on their first deal, then do another, and then another and another. It’s the CONFIDENCE generated by the first one that invariably propels our members on to breakthrough success. You need to work the program! Don’t let it sit on the shelf! Use the incredible resources and mentoring you have right at your fingertips.

POINT OF FACT: Just about EVERY cash flow that someone has taken back or is about to take back has gone or is going through the hands of an attorney.

So, going straight to ATTORNEYS with your marketing is like tapping into a superconductor for notes. (That should excite you if you are in this business for keeps).

Here’s another pretty wonderful observation that I’ve made: The attorneys that end up being REGULAR note referral sources generally DO NOT ASK for anything in return (like a fee or anything). They’re being paid by their client (on retainer) anyway to handle these affairs, and they are just busy people who, as a matter of course, will call you and say something like “I saw your ad, letter, flyer, etc and I have a client that is collecting payments on [such and such], but he needs to cash out and is interested in selling the rest of the payments. Can you help or would you be interested?..”  AND THEN all you do is ask the right questions that your funder has told you to ask, AND THERE YOU GO! Generally speaking, it’s pretty easy. REALLY.

And if you handle yourself in a professional manner, you will get MORE referrals from the same attorney. Do this with SEVERAL attorneys, and THEN you can see how efficiently your business will MULTIPLY. (for illustrative purposes let’s figure 1 transaction per month x $5,000 assuming an average referral fee of between $2-$10,000)= give or take some $60,000 per year. 2 transactions per month = $120,000 per year, etc, etc) YOUR GOAL is to do SEVERAL per month but I’m just trying to spell it out for you.

If you want to be trained right in marketing to ATTORNEYS, the ONE

program I implore EVERYONE to get ahold of is “How To Turn 90% Of The People Who Won’t Sell Their Notes Into  Big Time Cash Profits”. IF YOU already have the program, go through it again and then utilize your Elite member CONSULTING privileges if you need further help on how to implement the strategies.

You’ll be EXTREMELY glad you did.

Here is a link to the program:
http://noteinvestors.com/store/90.htm

QUESTION: How do I get a note to you and where do I list notes?
ANSWER: There is no need to “list” notes. Matter of fact, we don’t
recommend doing that at all. What is far more desirable is that we
set you up with direct access to institutional (corporate) funders
who buy notes you refer to them. We do that through The Elite Cash
Flow Network Support system and we DO NOT share your commission.

QUESTION: So, I go right to the funder?  I don’t have to “list” a
note on your site and wait for a bid?
ANSWER: Correct. You submit the note right to the appropriate
funder (depending on the type of cash flow you find) through one
convenient interface on the Elite member site using the appropriate
forms available there. Everything’s right there. No guesswork
involved as to who the buyers are. You have access to them right
here so you always know who you are dealing with.

QUESTION: Why do you not recommend “listing” a note somewhere in
search of “bids”?
ANSWER: Because when you go that route, you have no idea who you’re
dealing with. What you need to beware of it that It’s not unusual
for people who are actually brokers to try to pass themselves off
as end note buyers. Since you have direct access to the
institutional funders, you want to go right to the entity where you
can make the entire fee without having to split it.

QUESTION: Tell me more about these institutional (corporate)
funders.
ANSWER: These funders have virtually unlimited funds with which to
purchase cash flows. Because of the availability of unlimited funds
from institutional funders, you can facilitate transactions between
funders and sellers of cash flows without using any of your own
capital.

Only 10-15 years ago, there were no institutional funders. In the
last 10-15 years, institutional funders (Wall Street) discovered
our little niche business. This allowed you (Main Street) to be
able to deal in a multi- million dollar business using Wall
Street’s money. When Wall Street discovered our little business
(10-15 years ago), they would only buy real estate notes. This
brings us to today. Because of Wall Street’s desire for higher
yields, they increased their buying parameters to include non-real
estate cash flows. That meant our potential market (inventory
stock) jumped from billions (not bad) to trillions (much better).

What’s more, The Elite Cash Flow Network Support System gives you
the immediate ability to fund non-real estate as well as real
estate-backed cash flow transactions.

So, to spell it all out, when you invest in the Elite system,
you’re going to learn EXACTLY how to find and put together
extremely profitable and diverse discounted note transactions and
generate very high cash flows for yourself using other people’s
money (not your own), substantially increasing your immediate
income while building a massive retirement portfolio over just a
few short years.

2012 is on pace to be a record year. Seller take-back financing is
already at an all time high due to the conventional lending
crunch– up a staggering 40% just last year which is fueling our
business and you simply don’t want to be left behind at this time
especially since the funders are doing most all of the backend work
for you while putting up all of the money and taking all of the
risk.

I urge you to get started now.

One of the most successful marketing resources which will help you SUPERCHARGE your note business is something called a Note Owner’s Manual. I got this idea at one of the note conventions. It took a lot of time and energy to implement this idea, but it was very worthwhile.

I am talking about an owner’s manual for people who own notes. It is similar to the owner’s manual you get with a car, appliance,

etc. What struck me about this idea is that people do not throw away owner’s manuals (and if online they bookmark them), and it is an authoritative written source. The written word is a powerful tool.

My Note Owner’s Manual, like any other owner’s manual, is a primer on what note owners need to know about the asset they own. The Note Owner’s Manual is easy to read and to understand. Scattered throughout the Manual are highlighted areas called helpful hints. These helpful hints work like magic in doing the one thing that is essential if you want to make money in this business, and that is create urgency.

One of many helpful hints deals with insurance. The Note Owner’s Manual discusses in detail the importance for the note owner to be covered by insurance. This hits a lot of hot buttons. It is amazing how many calls you get from folks who were blasé and uninterested about selling their note. Now there is an urgency, at least to get more information. ‘Why do I need insurance’, they want to know, ‘didn’t my attorney take care of this’, etc.?  I have made the following statement to many note holders (and I mean it,) “do not go to bed tonight until you know you are adequately covered by insurance”. I have even helped place insurance binders for note owners. But the important thing is you never would have had the conversation about this unless they read about it in the Note Owner’s Manual.

It is almost impossible to create urgency in an owner who is naïve and uninformed, who thinks the only thing they have to worry about is depositing the payment. It is easier to deal with an informed seller. One who has some understanding about the need for insurance, record keeping, legal issues, inspection of the collateral, etc. (of course, these topics are all covered in The

Note Owner’s Manual).

If the potential note seller is informed and still wants to keep their note, that’s fine. But you will soon discover that many hard core ‘I won’t take a discount’ types become much easier to deal with.

My original goal in using the Note Owner’s Manual was for the long term marketing benefits. I never anticipated the short term

immediate results that this resource generated. I have actually had note owners call in a panic seeking more information about various topics covered in the Note Owner’s Manual. Talk about creating urgency- wow!

There are  many additional benefits you get when you use this powerful resource. Getting potential note sellers to remember you

is critical if you desire long term success. The Note Owner’s Manual works as good as or better than any marketing tool in

achieving this goal. My marketing motto is “give them something they will keep” (See previous posts). All your marketing efforts

are wasted if the note seller does not have your name and contact info when it comes time for them to sell. Because note owners as a rule keep these manuals for ready reference, you have achieved a major marketing goal. Even better, people will actually pay for your Note Owner’s Manuals. If they paid you for it, they will almost certainly keep it. See what my Note Owner’s Manual looks like and, if you’re interested, how you can use it just the way I use it:
http://noteinvestors.com/store/nom.html

Note ownership is a complex business rife with benefits, but filled with risks and unforeseen problems– especially for the uninitiated. Complex financial instruments should not be owned and controlled by novices.

There are several reasons most amateur note holders do not sell. Even if they need to liquidate their asset, they do not want to take a discount. They are getting a better return than they can elsewhere. They have either become comfortable with their investment or have a diminished sense of urgency. To create a renewed sense of urgency, you must educate the note holder.

An educated note holder is much more likely to sell. A common mistake made by neophyte note brokers is to try and create urgency using only letters, flyers, posts or other messages, etc. This is not possible and will only lead to your early “retirement” from the note business. The successful marketing of your note business must take place over a certain time period.

The resource that has been most successful for me to help create urgency is called a Note Owner’s Manual. A Note Owner’s Manual that is written, designed and used properly can make all the difference in your cash flow business. I stress “written, designed and used properly”. Like all other marketing resources, if your Note Owner’s Manual is structured improperly, it will be both ineffective and expensive. Your Owner’s Manual must be designed to create urgency. Learn more

Finding the money to fund a note deal is not a problem- as our Elite members know, they have ready access to a whole network of funders and also steady, helpful guidance and consultation that beat the learning curve and help them get transactions done professionally and expeditiously, usually without any problems unless there are “surprises” (which happens sometimes but even when it does, it’s the corporate funder who takes all of the risk so the Elite member can concentrate on generating leads and collecting referral checks.

So all of the the help is right here; there is no travel necessary in this business; no real time commitment necessary (you can go places on just 5 hours a week or so); there’s no advanced class needed .

“Learning and earning” is best– just start and enlist the help of experts which is why our Elite program is so popular.

What you do absolutely have to do, however is reach noteholders and get them to call you. And we find the best way to reach them on a grand scale is through attorneys. You can build your own contact list- they’re easy to find. And what you need to do is not only establish credibility when you contact them; you also need to distribute solid educational bible-type marketing materials that will thoroughly educate the noteholder, and that attorneys and their clients will refer to again and again.

Your educational marketing piece should cover all aspects of how to manage their note– and also what all of their options are.

People only do business through people they trust. That’s why simple letters are not enough. Sure, a letter, ad or post might net you a deal now and then, but most noteholders don’t sell after the first letter. They sell sometime after they’ve initially taken back the note– just not right away. The key is to position yourself as the “go to” professional.

And if you give them credible, educational reference material that positions you as the authority, and distribute these through attorneys who have already built up a level of trust with their client, then you’re the one who’s going to get the business.

Here’s an example of what you might do:

You might start out with a ready reference piece– “10 Things Every Note Owner Must Know”. Make it solid, make it credible. Record an information line that noteholders can call in for a non-obtrusive, low-key way to get thoroughly educated on all of their options, including selling the note for cash or requesting an appraisal. This is a highly effective way to do business because a hotline is nonthreatening and many people initially do not want to talk to a “live” person but they are interested. After they call the hotline, then when they call you later our experience has been they are ready at that time to do business–with you– because they are thoroughly “warmed up” at that point.

Distribute your reference material through attorneys touting the information line. If you want to do several deals a month, this is the path.

There are many ways to approach this. Believe me, it’ll make a major difference in your bottom line. I’ve given you just one idea. There are ready made solutions as well.
Here’s one.

ANSWER FROM THE NOTE INVESTORS GROUP EXPERTS:

No. Only real estate notes.  A real estate NOTE appraisal is documented in much the same way as a real estate PROPERTY appraisal; the value of real property can be estimated with a pretty fair degree of accuracy from lender to lender, appraiser to appraiser, etc., give or take other valuation adjustments due to improvements in the property, etc. While there are many other types of NON-real estate cash flows that are bought and sold, the underlying securities carry considerably more variability and flavor and thusly you’re going to get much wider pricing fluctuations depending on who’s quoting or bidding so formal appraisals generally aren’t done on those. The other major variability you run into when appraising a real estate note is the payor’s credit score, but those variables can easily be factored into the buyer’s valuation formula so the quotes we get back from multiple institutional buyers for a given note tend to be fairly consistent when comparing one against the other.
So, to sum up, all the demand for appraisals are in real estate notes. Non-real estate notes, generally speaking, involve more of a “bidding” process when bought and sold.

Tim

P.S. We’ve had a sizeable influx of people coming in at the last minute to sign up for the note appraisal program. The response has been very strong and many smart cash flow practitioners who took advantage are being scheduled for orientations this week and will be receiving their materials. If you want in at this late hour, please heed this gentle reminder that this offer extension ends for good at midnight tonight Tuesday March 27 so forewarned is forearmed.
Here is a link to the offer:
http://noteinvestors.com/store/appraisal.html

Direct mail marketing vs email marketing

There is a tendency by some today to think of direct mail as the ‘ugly child of marketing’, but you’d be wrong if you buy into that. Large scale marketers are still mailing hundreds of billions of marketing pieces through the mails because it yields a high return on investment, despite its lack of “glimmer”. Direct mail is targetable, you can tell a lot, sell a lot, control cost and scale it.

Mail is a powerful workhorse that needs to be part of any marketer’s quiver.

CFOs of small and medium sized firms (the exact type of law and accounting firms we’re after) are still opening and reading mail.

Direct mail with the url of your business website can make your campaign as a whole work harder and stronger. Mail still resonates in the human psyche as an important sales tool. Still today, anything sent in an envelope is perceived as important; you have the bills and then the promotional and personal mail.

Email needs to be deployed, but it has to compete with lots of spam and clutter. Direct mail is not going away. The large scale marketers (credit card, wireless and satellite companies) know the place of mail and aggressively market through that channel.

On the other hand, smart cash flow practitioners operate on a much smaller scale, targeting well and controlling costs by distributing marketing pieces that repeat referral sources like attorneys, accountants and financial planners tend to keep. And right around tax time, that’s especially invaluable in our business because that drives our business. Hint: Think professional note appraiser brochures.