Many note holders want or need the services of a professional note appraiser to quickly tell them the value of their notes

timheadshotTim Fitzgerald’s
Cash Flow Business Tip of the Week

note-appraisalBuild Instant Value through Note Valuations

Knowing the value of your possessions and assets can make a difference in how you ultimately choose to dispose of or liquidate them. That’s why thousands of people engage the services of antiques appraisers, real estate appraisers and other valuation professionals. When you know the worth and value of something, decisions are easier and clearer.

Well, that’s the way some note holders feel, too. Many note holders want or need the services of a professional appraiser to quickly tell them the value of their notes. Plus, it’s a distinct bonus if the appraiser also represents an avenue for the sale of that note at the price quoted. Once a value is known and all the options outlined for the note holder, the decision to sell can be made.

You have the ability to be a trusted professional appraiser and adviser like this to note holders by providing the exact same service- providing valuations through note appraisals (not to be confused with real estate appraisals).

You see, some note holders aren’t ready to sell at this moment if their immediate interests are only in determining the value of their notes.

Appraisals are a VERY PROFITABLE HIDDEN MARKET all their own and needed by note holders for estate planning, partnership valuations, inheritance situations, divorces, etc. And, few people provide this service to note holders. Your goal should be to fill that need and give them a compelling reason to come back to you when the time is right to sell. Professionally-prepared note appraisals are the answer.

Appraisals are a great entree into the most desirable market available to paper brokers like you — financial professionals. Consistent, profitable, REPEAT REFERRALS of notes come from attorneys, accountants, financial planners, etc. This is the ticket if you want to build an extremely profitable note brokerage business. Note appraising is the single best way to develop these professional sources of business. As an appraiser, you are dealing professional to professional.

One of the best benefits of your doing note appraisals is that YOU CAN GET PAID for the service, whether the note owner ultimately chooses to sell or not. Fees range from the low hundreds for a simple residential loan and up for larger loans. The whole idea is to put something in a note owner’s hand that they keep. If they paid for it, they not only keep it, but they will take you seriously. THIS GIVES YOU AN ENORMOUS AND VERY PROFITABLE ADVANTAGE OVER YOUR COMPETITION.

Note owners do not discard their appraisals. You will be the person they or their financial professional will call when they do decide to sell. Your credibility is far above all those note buyers who sent “I buy mortgages for cash” letters.

The finished appraisal compiles all of the essential information regarding the loan together, i.e. the parties involved, the copies of all pertinent documents, etc. In other words, all of the information you would need to buy or flip the note. Is this ethical? Yes! You see, the appraisal document discloses and allows you to broker or purchase the loan.

How involved does your appraisal need to be? It can be as simple as a one page letter or as elaborate as a nicely bound, multi-page document. The appraisal documents that top-level note practitioners use have been professionally prepared. The basic document is seven pages and is nicely bound for presentation to the client. You do not have to go to that kind of expense and effort immediately, BUT THE SOONER THE BETTER. You could get started by preparing an appraisal in letter form on your letterhead. Call the piece a Letter of Opinion. The more professional your appraisal looks, the more profitable your business becomes.

As you build the appraising side of your business, you might initially provide a few free appraisals. As your credibility and, consequently, the make-up of your appraisal package grows, you should begin to charge for your professional expertise. To generate more business, you can design an entire marketing campaign around appraisals including letters, flyers and brochures which can be a very profitable investment.

As you expand your appraisal business, it would be a good idea to be certified as a note appraiser. You can obtain certification from the American Institute of Privately Held Notes and Mortgages. If you have never heard of the institute, that is because we are the founders and directors.

You can SUBSTANTIALLY increase profits in your note business by offering appraisals today. Appraisals heighten your professional image, keep your name in the minds of note holders, generate profitable repeat referral business from financial professionals and CAN LEAD TO A SIGNIFICANT INCOME NOW AND IN THE FUTURE. Appraising will put you head and shoulders above the average note broker. TRY IT, YOU WILL LIKE IT.

Tune in to for Tim’s regular posts and columns on notes, investing, and personal wealth building. You can email him here.

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