Note Appraisal strategy: Cash Flow Business Tip of the Week

Offering a Note Appraisal meets an important client need, thereby yielding more business for you

note-appraisalThe note appraisal is an important part of my marketing mix, because my research indicates that there are a fair number of note holders who need to know the value of their loans. They require a valuation for partnership purposes, estate planning, business dissolution, divorce settlements, etc., thereby making the note appraisal an indispensable reference tool. Almost everybody who has such needs almost always requires the assistance of a financial professional. When you are wearing the hat of an appraiser, you have dramatically improved your status above all other note brokers (AKA your competition). Once you discover this source of business, it is amazing how much of it exists.

I first instituted this note appraisal program for the long term potential. It seemed natural that anyone who paid you for an appraisal would naturally come back to you when it came time to sell the loan, and that has proven to be accurate. What I did not anticipate were the many note holders who will end up selling right away, once you’ve had the opportunity to explain all the potential options. It is astounding how much easier it is to deal with a note holder from your elevated status as an appraiser. The appraisal itself is valuable and extremely accurate. You can tell a note owner exactly what their note is worth to a ready, willing and able buyer. To do this you need to get a quote from an institutional buyer.

When I first started to use this powerful marketing tool, I issued a one page Opinion of Value on letterhead and, to get started, I did some of these for free. The note appraisal has since turned into a seven-page document with attachments. When finished, you have photographs of the security, copies of all pertinent documents and all of  the necessary information about the loan. To increase my credibility, I thought it was a good idea to be certified as a note appraiser. To that end, we founded the Certification authority The American Appraisal Institute of Privately Held Notes and Mortgages.

If you want to learn how to do business as a Certified Note Appraiser, it is highly recommended you download “How To Turn 90% Of The People Who Won’t Sell You Their Notes Into Big Time Cash Profits”. You’ll learn a great deal about the entire process there.

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