Here’s your Cash Flow Business Tip of the Week

After you quote the noteholder (see the last tip), and if they signal their acceptance by giving you a verbal agreement to either the full purchase or the partial, you will then move forward by asking them to “OK” a one-page “agreement in principle” (this form can be sent to them along with your formal quote. The agreement should be good for a short time frame (i.e., 2 week period) and should spell out the purchase price BASED ON this point in time (X # of payments remaining, present balance of X with or without a balloon payment of X, etc). You can get this form from your Elite funder OR you can use your own. Tell the noteholder to look the offer over and by all means to consult with their attorney or accountant. Tell them that ‘as soon as you can OK this for me, I will then turn this over to funding and they will be in direct contact with you and begin the process’. You can tell them that the process takes about ’30 days or sooner; the appraisal takes the most amount of the time’ (probably you’ve already spelled this out in the initial quote).
The signed agreement form is technically called an OPTION. It gives you control over the note and you will forward this to the funder along with the complete note submission package that you will download from the Elite member site.
We will continue explaining this process in the next tip.

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