Trying to sell your note to an unknown person

sell-note-to-unknownIn the last Tip, I explained what can happen if you try to sell, “list” (or “post”) a note with some unknown person or entity in cyberspace. You don’t know what their level of experience is. It’s not unusual for people to represent themselves as “note buyers” after taking some kind of introductory course, and then, once a note is submitted to them, they flounder around trying to find a cash buyer. Are they honest? You have no idea who you’re dealing with. Furthermore, if they do something unscrupulous, it will get you in trouble. There’s really only one way to get in trouble in this business– as a funder or a seller– and that is if the person handling the deal (this unknown person) does something they shouldn’t do. Then, you can be sure either the funder or the seller of the note somewhere along the line is going to be possibly looking at you. And that’s the only risk in this business. Think about this: Let’s say this person ends up locating an institutional funder. You could have avoided the middleman and gone directly to the funder yourself (and we can direct you who to go to) and make the entire fee. Why split it with somebody else?

In the next Tip, I’ll get into some more of the risks of dealing with somebody you don’t know.

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