MARKET PULSE: Business notes a big key to big income for brokers IGNORE THEM AT YOUR OWN RISK

Post- Labor Day spike– take heed

By all accounts, 75% of small business sales these days include some form of seller financing– and THESE types of notes are being generated in far greater abundance right here, right now than at ANY time in our recorded past– Labor Day marks a giant spike in this type of product because business owners who want to sell off their businesses are hungry, they want to move on, they’ve been waiting as long a 3-4 years and now they are getting MUCH more flexible insofar as the price they can expect to get for their businesses- so they are now selling rather than sitting.

AND BANKS SIMPLY AREN’T LENDING TO BUYERS OF SMALL BUSINESSES– SO THIS IS A HOTBED FOR BROKERABLE SELLER-FINANCED NOTES!! Ignore this at your own risk.

A key indicator that doesn’t get a lot of press is that small business sales spiked 8% in 2nd qtr 2011 (3rd quarter results aren’t in yet but all indications are that the numbers will be even more impressive)— and it’s CRYSTAL CLEAR to us that we’ve reached a “sweet spot” where median asking price has decreased– a FIRM indication that sellers are done waiting and have become more realistic, opening the door to a great many buyers WHO ARE NOW STEPPING IN to take advantage of the greatest BUYER’S MARKET in a lifetime.

This means you, as a cash flow professional need to make sure you get your oars in the water ASAP if not sooner.

All of this is making for a POTENT combination of circumstances that is fueling the creation of business notes. Business owners want to sell, buyers want to buy, they want to do it BEFORE THE END OF THE YEAR for tax reasons and the BIG PUSH STARTS RIGHT NOW.

This is a huge area, and savvy brokers are working it and Elite funders fund it. Elite members are in unique position to crack this market because many amateur brokers don’t go after these– they don’t understand them. They have no idea as to how these are valued and the only way you’re going to get to these are through attorneys, CPAs or business brokers. Rarely, if ever are you going to see a small business with a for sale sign up– they are bought, sold and brokered through these professionals. YOU MARKET TO THEM THE SAME WAY YOU MARKET FOR OTHER TYPES OF NOTES through your Elite program marketing methods.

My advice is: if you don’t have the Elite program yet, get it now and start working it. I would also absolutely suggest you work the “How To Turn 90%..: program because it gets you into marketing to professionals which is EXACTLY the place to uncover the business note sector. Then you turn your leads over to the BUSINESS NOTE BUYER through the Elite member site.

Close just one million-dollar business note sale, and if you make 5% that’s $50,000 or if the numbers are only half of that, you make a cool $25,000 for just a few hours of work.

Hint: If you do Note Appraisals (learn about them through the “How To Turn 90%..” program), they work on business notes, too. I could get into the profit potential with doing those, but I just don’t have the space or time today. Maybe next time I’ll talk about that if I’m not so busy.

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