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 other types of cash flows and who may (at some point) need a lump sum of cash but don’t know how to go about getting it. If you can educate these financial professionals who are amenable as to what to look for, they can turn into valuable referral sources for repeat business… like maybe 2,4,6,8 or even 10 transactions per year each and every year. You can also purchase leads for private note holders culled from public records. There are also online note exchanges but that’s a relatively new animal and I don’t have any recommendations there as of now. And, re NPNs, that’s a different animal than performing notes and for those you’d want to work with hedge fund managers and the like.

 In any event, FINDING good notes is the key to making money in this business. All of the successful note practitioners that I know are very good marketers. Like any other business, this is a numbers game. The more QUALITY leads you develop, the more “Yesses” you’ll get and the more transactions you’ll close. A certain percentage of the notes you’ll quote on will or will not ultimately close, due to various reasons. But again, this is true in ANY business- some of your leads or foot traffic or whatever are going to convert and some will not. Just concentrate on your marketing and DEVELOPING LEADS and then know that, at any given time (if you’re doing a fair volume of business) you’re going to have “X” number of transactions at various stages leading up to closing in your “pipeline”, some will be actually closing and some will not go through for any # of reasons or “surprises”. At the end of the day, the paydays is this business are very good.

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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