Hi all- Hope you had a great Holiday season. I know I did. And, now it’s time to get back to work in earnest. Interested in making money and padding your bank account?? Then read on—-
I fully believe that, far and away, learning how to find and then refer note transactions to institutional investors is an excellent, risk-free way to learn note investing from ground zero (for someone with little or no experience). If you find the RIGHT investors to work with, you will find them to be very receptive and also very helpful in guiding you throughout the entire process. You just need to make sure that you learn how to prequalify and SUBMIT notes the right way, i.e. you need to be thorough and complete. Absolutely, having a “mentor” or someone experienced to guide you is a big, big help and will GREATLY cut down on your learning curve, saving you a great deal of time AND you are earning referral fees with zero risk because the worst that can happen is that a potential deal does not go through or gets rejected and you are out $0 but at the same time, you are gaining invaluable knowledge as to what’s good, what’s bad, etc., so that you can learn to “key in” on the good notes.
I have to tell you that I’m a big believer in referring notes to institutional investors and I’m not exactly the new kid on the block— this is the way I learned myself starting way back in 1996.
To this day, I still work with my preferred (national) funders on a regular basis AND I can tell you unequivocally that they are constantly looking for new referrals but one of the key frustrations they continually relate to me are inexperienced brokers who sloppily submit incomplete quote requests or, worse yet, simply “copy and paste” note information they picked up from some “daisy chain” that will go nowhere. This is a sure way to lose all cred with a potential funder.
In short, there are plenty of good potential deals out there that you can make money on, but not as many good quality referrals from the outside as my preferred funders would like to see. These funders typically do not employ their own marketing or training departments and thus rely on organizations like mine to find people willing to learn and help them develop the skills necessary to get them FINDING and referring quality note transactions to them.
And, yes, FINDING them is key, and IMO your #1 most important task, if you are looking to get into this at little to no cost with no risk, is MARKETING and I am NOT talking about going to FCI Exchange and trying to find deals that way.
Anyway, if you want to know more about getting into this, and also if you want to see how easy it really is to REFER notes to funders, you can go to our program page which also includes a video I put together that you may find to be informative.