Why you do NOT want to “list”a note on the internet

list-a-noteIn the last few Tips, I just went over a whole laundry list of why you want to use an institutional funder for your note transactions. Now, let me tell you why YOU DO NOT want to “list” a note on the internet in search of a funder. First of all, you have no idea (none, zero) who you’re working with. Are they shopping your note? Are they taking your note to somebody else who takes it to somebody else? I’ve had situations where I’m brokering a transaction and my funder will call me and say [“..your party…] is shopping your note with somebody else because we just got this note in here earlier..”. If I’m the first guy in line, that’s ideal. But if I call the funder and they say “we’ve already seen this transaction– this guy’s shopping this deal”, then I’m out of luck and that’s OK, because I don’t want to waste my time with those situations, anyway. I don’t want to get shopped.

In the next Tip, I’ll expand on the pitfalls of “listing” a note for sale with somebody you don’t know well.

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