If you aren’t getting the results you want from your cash flow / note brokering business (and you should be, given that the cash flow industry is experiencing the greatest boom in its history as a direct result of the flat housing market and the extremely tight conventional lending landscape), you need to change what you have been doing. The absolute foundation of ANY cash flow business is a well thought-out marketing plan. GOOD MARKETING IS CRITICAL FOR YOUR SUCCESS. Whenever you plan a marketing effort, you want to achieve quick, maximum results. You want the phone to ring, give quotes and close transactions. However, the real success secret is long term thinking and planning.
Marketing is an investment – an investment of your time, money and effort. You must think in terms of marketing that pays off today, next month, next year and often into the following year. In other words, marketing that gives you a high return.
How can you achieve this high return? You must get potential note sellers to remember you. My motto is “give them something they will keep”. When the right moment comes for them to sell, they must have your name and contact info. If they do not, someone else will get the business. Call it memory marketing. The very best method that I have uncovered is note (not real estate) appraisals.
Appraising notes will build your credibility with potential clients … and earn you money. Most note holders need to know the values of their notes before selling them, and if you step in to provide that service, you are WAY ahead of the game.
I appraise notes myself, and I never dreamed this particular specialty would turn into one of the hottest on-demand services in the age of now.
I originally stumbled onto this hidden profit center by accident and the dividends have turned out to be enormous…. but in today’s economy (where the demand for valuations frequently precedes a cashout situation), they’re off the charts. I have fine-tuned note appraisals and transformed it into a separate business that generates money whether a note transaction takes place or not.
Experience has shown, though, that the note holder (appraisal client) will always come to you when it comes time for them to sell their note. You have achieved your #1 marketing goal – give them something they keep. You are being paid to guarantee your future income – a very nice additional benefit.
Market note appraisals to all the note holders with whom you did not do business through your initial marketing effort … all those people who were not ready to sell, did not respond to your marketing piece or did not accept your offer. This is future business and at least as important to your success as the transactions you closed.
Note holders respect appraisers. It’s easy to deal with them from your elevated status as an appraiser. Also, as an appraiser, you dramatically put yourself above all other note brokers (i.e. your competition).
Besides the professional assessment of current value, note appraisals are also needed by note holders for partnership valuations, estate planning, business dissolution, divorce settlements and more. Once you discover this hidden market, it is amazing how much of it exists.
Best yet, this appraisal strategy gives you easy entree to the financial professionals, i.e., attorneys, accountants, financial planners, etc. Financial professionals are in a position to refer you repeat business. Repeat referral business will favorably change your financial life forever.
The appraisal itself is valuable, extremely accurate and easy to do. You can tell a note owner exactly what their note is worth to a ready, willing and able buyer. An appraisal can be as simple as a one page Letter of Opinion – that’s how I started.
My appraisal has evolved into a professional looking, multi-page, nicely bound document with attachments. I did this because when you deal with professionals, it is important that your materials look professional.
Don’t forget your effectiveness as a note appraiser will be positively impacted by your marketing program. I had an entire package developed by a professional marketing company including a professional brochure, letters, flyers, postcards, etc. This has turned out to be a very worthwhile investment.
As I began to expand my note appraisal business, I thought it was a good idea to be certified as a note appraiser. So, I obtained certification from the American Appraisal Institute of Privately Held Notes and Mortgages. If you’ve never heard of the institute, that’s because we are the founders, directors, CEOs, etc. – I think you get the idea.
Note appraising will accomplish the following positive results for your note business:
(1) set you above and apart from the average cash flow / note broker;
(2) create a separate profit center that enables you to get paid whether there is a completed transaction or not;
(3) ensure you repeat referral business;
(4) guarantee future income and
(5) increases your present income. This is a combination that cannot be beat. I suggest that if you want to dramatically increase your income, give note appraising a try– you will not be sorry. If you have any questions feel free to give me a call– I love talking paper and cash flows.