Non performing notes and the unique opportunity for the smaller investor

non-performing-loansThe non-performing note market is not even close to drying up. In fact, another billion dollars’ worth at a time keeps hitting the market over and over again (several times per year), and in 2015 alone, banks and GSEs such as Fannie Mae and Freddie Mac sold off $13 billion of the stuff. In the wake of the financial crisis and its far-reaching tentacles, hedge funds and private equity firms who buy directly from these sources have purchased approximately $147 billion in non-performing loans. They, in turn, then resell pools of these loans to mid-size firms who, in turn, resell again to Continue reading

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Types of notes brokers and investors can pursue


timheadshotTim Fitzgerald’s
Cash Flow Business Tip of the Week


Notes generally fall into one of the following category types:

Seller financed

Performing

Re-performing

Non-performing

If I were starting out today, I could make an argument for Continue reading

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Don’t overlook the “power” of the note submission worksheet as a starting point if you’re new


timheadshotTim Fitzgerald’s
Cash Flow Business Tip of the Week

 

note-submission-sheetWhen I first started fielding calls from note holders, I really didn’t fully know what I was doing. I knew that I wanted to broker a note to a funder (which I had already lined up through my mentor who I was working with at the time) and so I was throwing out some marketing messages in hopes that I would get calls, which I did. I was a bit concerned that I would not know what to say when I got responses but figured I’d cross that bridge when I came to it. Continue reading

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The three big keys to finding privately-held notes


timheadshotTim Fitzgerald’s
Cash Flow Business Tip of the Week


3-keys-to-finding-notesThe three big keys to finding privately-held notes are 1. Marketing 2. Marketing and 3. Marketing. There are many ways to go about this and I’ve found that developing a network of referral sources in the professional sector can be invaluable for repeat business. As in attorneys (any specialty), accountants and financial planners. These professionals tend to cater to clients who may be holding notes or Continue reading

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To generate income quickly, you systematically broker note deals and then invest at high yields


timheadshotTim Fitzgerald’s
Cash Flow Business Tip of the Week


high-yield-note-investingTo generate income quickly, what you want to do is systematically broker note deals and amass referral fees that way (you’re looking at anywhere from $2,000- $10,000 per transaction depending upon the specifics). Then, you invest just a portion of the cash you’ve generated into buying a note for your own account once in a while and then restructure the payments (on the ones that you can) so that you get paid off early which boosts your rate of return substantially– to 35%, even 70% or Continue reading

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Every time you raise your rate of return just a little, your bottom line goes way up


timheadshotTim Fitzgerald’s
Cash Flow Business Tip of the Week


rate-of-returnWhatever you invest in, the big key to becoming wealthy is to increase your rate of return while simultaneously reducing risk. Whatever your investment vehicle of choice, you should continually be striving to increase your ROI and lower your risk. Real estate note investing reverses “risk vs reward” where a higher potential return would otherwise carry a higher risk. By contrast, in the real estate note business, Continue reading

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Learn (and earn) by brokering several note deals while learning how to invest


timheadshotTim Fitzgerald’s
Cash Flow Business Tip of the Week


learn-and-earnInvesting in notes for your own account should be your ultimate goal. The profit potential is huge with very low downside risk (if done right), and you can greatly compact the time necessary to wait for retirement by building a portfolio in notes. It is possible to raise your rates of return to over 70% whereby your money is doubling each year, and it is also possible to do these transactions Continue reading

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The more options you give the note seller when making offers, the more deals you’ll close


timheadshotTim Fitzgerald’s
Cash Flow Business Tip of the Week


????????????????Most amateur note investors will only make an offer to buy the whole note. But, if you find out exactly what the note seller needs (i.e., maybe they only need to free up x amount of cash and really aren’t otherwise motivated to Continue reading

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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 Continue reading

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How to determine in the first few seconds if you can make money on a note, and then go on to further qualify the seller and determine their level of seriousness


timheadshotTim Fitzgerald’s
Cash Flow Business Tip of the Week


Also how to not waste time on duds and zero in on the good notes only

workable-note-dealWhen somebody calls you with a prospective note deal, what you want to do is Continue reading

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