This week’s AUDIO tip will tell you how to start implementing a very lucrative profit center unto itself WITHIN your existing cash flow business. Turn up your PC speakers and listen now by following the link below:
http://noteinvestors.com/tip3-14-12/index.html
Here’s Your Cash Flow Business AUDIO Tip of the Week
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Here’s Your Cash Flow Business Tip of the Week
It’s already March, so now is the time to set yourself up to have (potentially) the best financial year of your life. Are you behind on building your retirement plan? If so, you will never have a better opportunity to make up for lost time than this year. That’s because there are now more seller take-back notes being created– and at better terms– than at any prior time in history. So the scope of opportunity as well as profit potential is unprecedented, and waiting until next year could be a serious financial error because you always want to be a buyer in a buyer’s market– not the other way around.
Investing in discounted notes can greatly reduce the time frame needed to amass serious wealth. The reason is that the rates of return you can realize are much higher than mainstream market rates, so you reach your goals much faster. One of the most effective and powerful ways to accomplish this is to find a grade-A quality note and purchase it with partner(s) who are looking for rates of return substantially above market. (It’s possible to do transactions using ONLY your partner(s)’ money and NOT your own, but we’ll get into this later.)
If your partner is willing to pay $X and the note seller is willing to accept $X amount LESS than you and your partner have agreed to pay (your partner is still getting a rate of return much higher than he can find anywhere else), you are actually putting less $ into the transaction than your partner and, consequently, you achieve a higher rate of return.
On top of that, your RISK actually goes DOWN (because, again, you have less $ in the transaction and at the same time your rate of return is HIGHER– in other words, low risk high reward which is the hallmark of the note investing business).
TO ILLUSTRATE THE POWER OF THIS:
$5,000 (on a grand scale, the average profit from one note transaction) invested once a year at 35% (which is very possible to achieve and we will show you how in future Tips– we’ve only just begun) will yield $1,270,000 in just 15 years.
Imagine doing this many times over in differing variations and combinations (which we teach you how to do) and you can see how the # of years needed to amass wealth can be greatly reduced. So this can be achieved in just a few short years.
Before you begin investing, however, you must first “learn and earn”– that is, close several mortgage note deals so you can generate income and learn how the process works by watching the institutional buyer close the deal. At the same time, you must learn how to invest so that you are fully prepared when a good note come along later this year.
If you wait another year, you will very likely miss out on the most important financial opportunity in over 80 years (since the Great depression years). This is because the most important financial market (the Real Estate market) has undergone a complete reversal. This, coupled with the conventional lending crunch has caused the seller financing sector to snowball. And now the spring buying season is right around the corner and home prices may now have bottomed out– poised to begin the inevitable upward tick.
So, while seller financing is still at an all-time high, NOW is the time to begin to amass your fortune. There is no better vehicle than discounted notes to accomplish this and no better time.
What you can do: Step up your marketing to increase the # of deals you will find. Keep “learning and earning”. And at the same time, learn how to invest in discounted notes and create high rates of return.
P.S. Here is an excellent opportunity for you to get on the fast track marketing to the professional sector this year:
http://noteinvestors.com/store/appraisal.html
QUICK LINK FOR THOSE POISED TO INVEST:
If you liked the “Superearnings” program in the Elite Cash Flow network package, you will love “Superearnings Plus” which is the only pure note INVESTING program available anywhere (it’s fully supported as well):
http://noteinvestors.com/store/SEplus1.htm
Here’s Your Cash Flow Business Tip of the Week
There are three steps to financial success in the Cash Flow business:
1. Generate Income by brokering notes;
2. Invest in discounted notes for your own portfolio;
3. Plan to retire
For years, in our teachings we have primarily concentrated on step one (brokering); that is, you find a cash flow and then flip it, take your profit and move on to the next transaction. But now is the time to teach step 2 (investing for your own account).
YOU MUST START TO PREPARE FOR STEP 2 RIGHT NOW– DO NOT WAIT
Whenever a major financial market reverses itself is when fortunes are made or lost.
We have entered a period of unbelievable opportunity. Fortunes are being made by those who prepare for and recognize opportunity (and take advantage) when it comes.
On the flip side, fortunes are being lost by those who do not recognize (or do recognize but still do not take advantage of) opportunity when it comes.
You are in the best business in the world right now at the right time. Do not fail to pounce on this opportunity that I will be spelling out for you shortly.
A major reversal has occurred in one of the most, if not THE most important financial markets – the Real Estate market. This reversal is having a major positive impact on those of us in the Cash Flow business, and /or real estate who know how to take advantage of it.
There will be $ made (by those of you in the know), and that can be YOU because you are a subscriber and therefore an industry insider. I’ve waited for several years for the real estate market to turn, and turn it has.
.
Generating income in the cash flow business (see Step 1 above) is NOT dependent on Real Estate notes because of all of the other types of NON- real estate backed cash flows available. However, INVESTING in discounted mortgages for your own account (step 2) is tied very closely to the Real Estate market because there are now and will continue to be (1) more seller take back loans at (2) better terms than ever before- held by people who have done something they did NOT want to do and do not know what to do with it. And that spells OPPORTUNITY.
I have not talked about investing in notes for many years, because the time was not right. But the time is right now.
WHEN WILL THE OPPORTUNITY HAPPEN?
It is happening now; and has been happening for four + years running now. And all of the signs point to brand new REAL opportunities starting 6-9-12 months from now… still more than enough time for you to prepare for this bonanza if you’re not involved already. This is something (investing in notes) that you will not do tomorrow (if you’re a beginner), but you must start to prepare now.
WHAT DO YOU HAVE TO DO?
Learn and earn. You need to close several mortgage deals so you can earn some money and learn how the process works. AND at the same time you must learn how to invest. In other words prepare yourself now for the NEW opportunities which will be coming your way soon. This is one of the few times you will have the advantage of 20/20 foresight.
In the next Tip, we will expound on this.
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Here’s Your Cash Flow Business Tip of the Week
In last week’s Tip, I began discussing the two major decision areas when pricing and charging for a note appraisal referred by a financial professional.
Let’s continue. The second major decision area is what to do about your fee when the note holder decides to sell. Last week, I addressed the fine line we walk regarding converting an appraisal to a brokerage transaction. If the note holder decides that they would like to sell immediately, I think it is fair and reasonable not to charge for the appraisal. Your brokerage fee will be more than fair compensation. If the request for your brokerage service comes a year after the appraisal, there probably shouldn’t even be a discussion regarding the fee you already earned. I believe the cutoff time should be somewhere in the 90-day area. Everybody has to make his or her own policy. You should be flexible. Remember one of the major reasons for doing appraisals is to build relationships.
P.S. If you are interested in becoming certified as a Note Appraiser, you can learn more here.
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Want to expand your marketing reach and transform your financial life in 2012? Read on…
We all know there is big money being made in the cash flow business today. But many new brokers who fail do not have a well-thought out marketing plan. By contrast, those who know how to stay in front of the right people consistently, have the ability to present themselves as credible, knowledgeable professionals, and offer a high degree of service to the client will more often than not get the lion’s share of the business.
Certainly, every broker needs to have strong basic elements in his/her marketing plan. Letters, flyers, brochures, ads, online posts etc targeted accordingly that say the right things (I can’t stress the importance of this enough) will let people know you buy cash flows. And if you are strong in the basics (and many new brokers are not), you certainly will get your share of business as long as you market consistently.
But it’s the really big earners– those who reach six figures year after year– who have gone beyond a letter, ad, business card, or post in their overall marketing approach and have been able to make a quantum leap to the upper echelon by establishing strong professional relationships with lawyers, accountants, financial planners and real estate professionals who handle people’s financial matters every day. Every single one of these professionals can each refer many noteholder clients to you during the course of a year. Think of all the transactions you could do if you had such a referral system set up and working for you. If you offer client services of a special nature, then it would be even better.
For example, if you can offer professionally-prepared note appraisals for clients, you are not only way ahead of the game (because this can get your foot in the financial professional’s door perhaps better than any other approach), but you also earn professional fees for your services in the process. Additionally, this leads to more brokered transactions for you and your fees are made both on the front end (the fee you charge for the appraisal) and then the back end (your fee for assistance in placing the transaction for funding).
Another service that top-notch brokers always provide is that of educator. That is, they serve as an authoritative source of practical information that noteholders are in great need of, i.e. how to service the payments, keep proper records, what to do if they need to foreclose (this hits a lot of hot buttons), and of course how to go about selling the asset they own for immediate cash. If you want to emulate some of the top earners in the business, make up a “manual” for people who own notes (i.e. “Note Owner’s Manual”) that spells all of these details out (in one form or another) and you stand to see a big difference in your results. Make sure you get these Manuals (or “white papers” or whatever you call them) into the hands of financial professionals who will, in turn, distribute them not only to their clients but also to their colleagues and peers. This is the way your marketing “reach” can snowball in 2012 and effectively transform your financial life.
Yet another way to dispense valuable education to potential clients holding cash flows (that leads to big business) is through the use of a phone “hotline” that they can call into when they see your marketing message. Many people are reluctant to talk to a “live” person before they’re actually ready to do business. If you queue up a professionally-recorded message that helps people learn about their asset and the exact sequence you will take them through in cashing out their note(s) or cash flows when they call the hotline, you have then effectively “warmed up” the client, exuded credibility, educated them accordingly, increased their comfort level with you and also motivated them to call you shortly thereafter to do business. Additionally, many questions about the “discount” have been addressed by the hotline message early on, so the client is thoroughly educated when they call you so you can expect to “get down to business” right away.
If you’re seriously interested in accelerating your own marketing campaign ASAP, you may want to consider the following:
http://noteinvestors.com/store/sp.html
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Here’s Your Cash Flow Business Tip of the Week
How are note appraisals priced? You are in uncharted waters when it comes to pricing, because you are practically a pioneer in the field. Almost certainly, nobody else in your area is appraising notes, which is why you want to. Remember- the main reason for appraising notes is to have an advantage over your competition. Appraisals gives you access to financial professionals– and financial professionals are the best source of repeat referral business. And repeat referral business is the secret to making a substantial income. This is not to say that the fees you make from the physical appraisals are not important – they certainly are. The best guideline for fees is to determine what a real estate appraiser would charge for a like kind appraisal. If you were valuing a note on a single-family house, find out what a real estate appraiser would charge and use that as a guideline. Pricing will change from area to area. This is important to keep in mind when you are doing an appraisal out of your area.
There are two major decision areas when pricing and charging for a note appraisal referred by a financial professional.
(1) It is my opinion (learned from experience) that it is wise to conservatively price the appraisal you do for the client of a referring professional. It is natural to want to earn a “nice and fair” fee for the work you do and you should. Keep your fee reasonable. In my opinion, you should charge less than you would an individual note seller who is going to be a one-time client. There is not much competition in the note appraisal business– but what you do not want to happen, ever, is for your referring professional to find that your fee is substantially above another appraiser they may have found. Remember you are in this for the long haul, and want many repeat referrals as well as referrals to other financial professionals. I have been asked about doing free appraisals as a way of establishing a relationship with a financial professional. This is something you need to think long and hard about. Under certain conditions, it might be ok to do a complementary appraisal to help establish a relationship.
Next tip, I will discuss how to handle the situation when an appraisal client turns into a brokerage client.
P.S. If you want to get on the fast track to marketing yourself and gaining certification as a note appraiser, go to the following page to learn more:
http://noteinvestors.com/store/appraisal.html
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Marketing Your Business With Note Appraisals
Note Appraisals
Just What is a Note Appraisal and How Can it Help My Cash Flow Business?
I just finished helping another Elite member prepare an Opinion of Value for a real estate note, and I sense a definite trend because I’ve now had several requests for assistance in preparing fee-based note appraisals in the past several weeks, a service that has been growing in demand.
These requests primarily result from Elite members’ marketing efforts to the professional sector, most notably attorneys. Given the effectiveness of this approach, now seems like a good time to share some insights on using Note Appraisals in your cash flow business.
The Free Note Appraisal
Offering a free note appraisal is a highly effective call to action in note broker marketing materials.
Actually, this free evaluation can be more appropriately called a “note analysis”.
In this form, you are really using a simple one-page letter that outlines an offer for the purchase of a note. It helps the note holder know what the cash flow is worth to a note buyer in today’s dollars on the secondary market. If you are using this type of note analysis, your goal is to eventually buy the mortgage note and earn a referral fee in the process.
Professional Fee-Based Note Appraisals
A professional note appraisal takes the form of a written report ranging from 5-10 pages with additional content in the appendix containing supporting documentation. It is an independent and unbiased evaluation of the present cash market value of the real estate note.
Fees range from $175-$350 depending on the complexity of the assignment and property serving as collateral. An attorney, financial advisor, personal representative of an estate, bankruptcy trustee, or retirement account administrator will often use them to help determine a fair market value.
Note Analysis or Note Appraisal – What’s the Difference?
A true professional appraisal is performed by a qualified third party with no personal interest in the transaction. And at the time you deliver the appraisal, you do not have a personal interest.
You will, though, oftentimes have the opportunity to help the client get that note sold at a discount and earn a fee, so it is important that you fully disclose your role. You will almost always be the first person the client looks to for assistance in placing the note with a reputable funder, and charging the client a fee for doing so is a widely accepted practice.
Factors Affecting Real Estate Note Values
So how is the value determined for either a note appraisal or analysis? It’s determined by a number of factors:
Payor’s Credit Profile – a credit history on each payor or maker obligated for repayment.
Collateral – type of asset, condition, and location of property serving as collateral.
Down Payment/Equity – the current unpaid balance of all amounts owed on the property compared to the current value of the collateral.
Seasoning – history of payments made including timeliness and duration.
Terms – terms of repayment including frequency, payment amount, interest rate, balloon payment, and/or special provisions.
Documentation – sufficiency of documentation supporting the transaction.
Substantiating the Note Valuation
If you have 20+ years in the note business, you have a pretty good feel for how the market will react to the factors affecting value.
But if you are just starting out or need a second opinion, what’s the best way to proceed?
A simple solution is to request quotes from 3 respectable note buyers. Think of these as “comparables” similar to what is used in a real estate appraisal or BPO (Broker’s Price Opinion).
What Goes Into the Evaluation Report?
While there is no uniform standard, a solid report will contain these elements:
Description of the Promissory Note
Description of Collateral Property
Purpose of Evaluation
Definition of Present Cash Market Value
Information and Documentation Provided for Valuation
Analysis of Information
Assumptions and Limitations
Final Opinion of Value
Certification
Professional Resume
Appendix with Supporting Documentation
If you want to gain the ability to market your services as a Professional Note Appraiser and gain certification, go to the following page to learn more:
http://noteinvestors.com/store/appraisal.html
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Here’s Your Cash Flow Business Tip of the Week
***QUESTION***
Do I need to know computers or have a computer to get involved with this business?? I’m not very “tech-savvy”. Is this going to be a barrier for me??
>>>MY COMMENTS: Not at all. I’m mostly “old school” myself. Actually, I’m probably about 60/40 “old school/new school”. I got into computers (kicking and screaming because I was forced to) in 1996. I took to it pretty well, but up until that time, the internet wasn’t even mainstream. This business was marketed entirely by direct mail. And I’m STILL very big on direct mail. The internet is JUST ANOTHER CHANNEL.
The base modus operandi has NOT changed and never will. It’s all about getting in front of the right people by whatever means. Facebook is a tool like anything else. But to use that as your sole- or even main- marketing method is ludicrous. So what if you get their attention one time. That isn’t enough. Do they keep coming back to your page?? You’ve got to get them to remember you and keep what you send them and repeat your message over and over so when the time is right, they will contact you and you will get the business.
Direct mail is still THE #1 way to make sure your message gets into their hands and stays there. If you AREN’T tech-savvy, don’t worry about it. Not a problem. Computers help you to do certain things faster (i.e. word processing, compiling contact names, etc) and the internet certainly gives you many channels to spread the word around but it’s certainly NOT a handicap if you don’t have a computer. A PHONE is the only essential tool. A fax machine is very helpful for transferring documents, but if you don’t have a fax it’s not the end of the world. You can run this business from your kitchen table if the need be.
If you can market directly to the professional sector (attorneys, etc) and do it consistently (over and over) and effectively (getting them to keep what you send them), THEN you are cooking with gas!
If you want a REALLY effective tool for reaching the professional sector WITHOUT making a major investment, check this out:
http://noteinvestors.com/store/sn.htm
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Using the POWER of Facebook to find notes galore
There is just such a buzz I’m getting from subscribers who are using our marketing materials and systems to generate leads “rapid-fire” through online powerhouses Facebook and Linkedin… so I wanted to address this now AND I want to point out that I’m seeing some other webinars out there that are rightly telling you about these outlets BUT are not giving you any guidance whatsoever on exactly what to say and what message to send AND ALSO they are dispensing very bad advice on how to approach banks IF that is part of your approach.
OK, here’s what you want to do: You use the EXACT approaches you find in our note marketing bible “How To Turn 90% of the People Who Won’t Sell Their Note Into Big Time Cash Profits” and you go to Facebook and search for the buzzword “attorney” (BTW this is just scratching the surface of all the buzzwords that we search for). You’ll find a ton. Go to their profile and note their “likes”. You then target your Facebook ad to those exact “likes”. You only pay when the exact person you’re targeting clicks on your ad. Have the ad lead to your website OR your Facebook profile if you don’t have a website.
From there, you utilize the “How To Turn 90%..” program which will tell you EXACTLY how to present yourself.
And DO NOT neglect direct mail, either (which was the only method we used until the internet came along). Oftentimes, the contact street address is on the Facebook profile. Send your flyers and letters there AS WELL as emailing and posting on your site or profile page.
Now let me touch on the bad advice I’ve seen dispensed on some webinars. They tell you that you can also target ASSET MANAGERS the same way. That much is true BUT contrary to what some people believe, you do NOT want to waste time chasing INDIVIDUAL NOTES if you go to these people. Rather, in this case you’re chasing PORTFOLIOS of at least $1 million because THIS is the way banks write off nonperforming assets.
So for ATTORNEYS, you’re chasing PRIVATELY-HELD notes held by clients of theirs. And in the case of BANKS, you’re chasing portfolios of non-performing notes…. NOT individual non-performing notes.
AND.. this is VERY, VERY important– when you develop leads there is NO NEED to bother with contracts yourself or go hunting for an investor. WE HAVE THE INVESTORS RIGHT HERE FOR YOU on the Elite Cash Flow Network Support System member website. That includes delinquent debt portfolios as well as individual seller-financed notes. Our Elite investors will pay you REFERRAL FEES for every closed transaction.
You need to know that I’m hearing from many very excited and enthusiastic Elite members every single day who keep finding new ways to develop leads and are unearthing lots of potential business. The activity level is almost unbelievable.
TWO THINGS TO NOTE:
1. Use the Elite Cash Flow Network Support System in combination with “How To Turn 90%..” and you will never need to leave your house (unless you want to) to reach the myriads of key contacts out there that stand to generate substantial wealth for you this year as they refer you valuable repeat business. As the leads come in, you simply submit them directly to the Elite funders.
AND WE ARE HERE TO HELP YOU WITH ONE ON ONE MENTORING EVERY STEP OF THE WAY if you’re an Elite member. No other company provides this kind of support anywhere, so I think you should not bother looking.
Link to the Elite program (you can also add the “90%..” program on from the same page):
http://noteinvestors.com/store/elite.html
Link to the “90%..” program “stand-alone”:
http://noteinvestors.com/store/90.htm
2. SPECIAL ALERT: One more professional camera-ready note marketing kit just became available (inadvertently separated from the Superpaper program). We have just one so I’ll throw this out there– the first person to reserve it gets it (and with it you will have 100′s of camera ready marketing pieces along with note buyer and note appraiser brochures that are easily reproduced to fit your Facebook or Linkedin profiles or website (we can assist if needed– just call us)– and they also comprise the most effective, proven direct mail marketing package ever devised for this industry. You can reserve the kit here:
http://noteinvestors.com/store/complete-note-marketing-kit.html
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Here’ Your Cash Flow Business Tip of the Week
>>>IMPORTANT: In light of the comment below, I want to alert you that we have only 3 discounted copies left of “HOW YOU CAN ATTRACT MOTIVATED, GRADE-A NOTE SELLERS LIKE A STEEL-MAGNET” at $40 off and they will be sold out later today. If you still want a discounted copy, you need to go to this page now to reserve one:
http://noteinvestors.com/store/sm.htm
CASH FLOW BUSINESS TIP OF THE WEEK
***COMMENT***
I REALLY like approaching FSBOs directly and I’m actually SALIVATING because this market is way, way untapped meaning no one is even close to scratching the surface because these home sellers honestly have no clue about seller financing. Sure, they’ve heard of it but they as a whole never consider it because they have only some vague idea of it but are just not thinking in terms of it being a tool to speed up their sale. The ones I talk to seem desperate but they’re just waiting and hoping some preapproved buyer comes along. But they’re burying their heads in the sand because this is a buyers market and these buyers who ARE qualified by CONVENTIONAL standards have myriads of choices. If your price is not razor-thin the buyer will just go on to the next property.
Tim, I now see plain as day that’s where seller financing comes in. It’s VERY evident to me now that It’s such a powerful tool because it screams out “Come here, come here” and I can see it’s got to work just like flypaper because there are just a ton of good buyers out there who could ordinarily qualify (will times ever be ‘ordinary” again?) but now these banks are hurting so much and lending is way down so if you’ve got any debt at all you’re not qualifying by conventional standards and that’s just a bad situation.
Enter seller financing. Wow I really like the way you guys set me up. I just got a whack on the side of the head with this Leonard Stitt “Steel magnet” program. Previously, I was getting blue in the face trying to communicate the benefits of seller financing to FSBOs . I felt lost. Now this program comes along and– voila– wow does it hit the right buttons that I want to convey to these sellers!! It’s all about the marketing. The other part of the equation is that I love the Elite program and the ease of working with the funding sources who help with top notch wonderful suggestions and guidance for the home seller in crafting a solid note that can/will be sold pretty shortly thereafter. I can totally see where I stand to make commission after commission as these deals go through. Even if I find only one solid, super-motivated seller in my area on any given Sunday, there are more the following Sunday (I get my leads from the Sunday classifieds) and the longer they’ve been listed, the more voracious these sellers become and these are the calls I LOVE to get!
Your Elite funders are wonderful, your marketing programs are unlike anything I’ve ever seen and your company is made up of true gentlemen.
What a year I’m projecting. Not to mention the other marketing materials I got from you guys that I’m getting into the hands of professionals (I concentrate on lawyers) and nobody mentions this but your Elite program is so diverse when it comes to funders that no matter what kind of calls I get I can make money off it– I LOVE marketing to personal injury attorneys. These guys are a treasure trove for people with lawsuit awards. Previously I had no idea what to say to them. But then I started using your professional materials with my own twist and– well, suffice it to say that I’m never looking back. This is FABULOUS.
You guys are awesome
>>>MY COMMENTS: It truly is exciting being in this industry today. And I love your combination of approaches. You’re hitting the home sellers AND ALSO you’re hitting one genre of attorneys at the same time. And you’ve got the Elite program and all of the checklists at your fingertips so that no matter what type of lead comes in, you know exactly what questions to ask and what funder to send it to. Remember a good rule of thumb. Be sure to always ask the universal question: “What are the payments and how many are there?” This applies to ALL cash flows. Because everything we’re chasing involves future payments of X amount.
P.S. >>>IMPORTANT: In light of the comment above I want to alert you that we have only 4 discounted copies left of “HOW YOU CAN ATTRACT MOTIVATED, GRADE-A NOTE SELLERS LIKE A STEEL-MAGNET” at $40 off and the will be sold out later today. If you still want a discounted copy, you need to go to this page now to reserve one:
http://noteinvestors.com/store/sm.htm
P.P.S. Don’t have the Elite program with direct access to funders yet? You can get it here:
http://noteinvestors.com/store/elite.html
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