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 many people engage the services of antique appraisers, real estate appraisers and other valuation professionals. When you know the worth and value of something, decisions are easier and clearer.
Well, that’s the way many note holders feel, too. Many note holders need the services of a professional note appraiser to quickly tell them the value of their notes. Plus, it’s a distinct bonus if the appraiser also represents an avenue for the sale of that note.
You have the ability to be a trusted professional note appraiser and adviser like this to note holders. How do I know? Because I’ve successfully provided the exact same service for note holders with very profitable results.
Several years ago, I started experimenting with the idea of providing valuations through note appraisals (not to be confused with real estate appraisals). You see, some of the note holders I was contacting then quite simply weren’t interested in selling now. Their immediate interests were only in determining the value of their loans. Does this sound familiar?
Appraisals are a very profitable hidden market all their own and needed by note holders for estate planning, partnership valuations, inheritance situations, divorces, etc. And nobody was providing this service to note holders. The goal is to fill a need and give them a compelling reason to come back to you when the time is right to sell. Professional note appraisals are the answer.
Appraisals are a great entree into the most desirable market available to note brokers like you — financial professionals. Consistent, profitable, repeat referrals of notes come from attorneys, accountants, financial planners, etc. This is the ticket if you want to build an extremely profitable note brokerage business. Note appraising is the single best way to develop these professional sources of business. As an appraiser, you are dealing professional to professional.
You Can Get Paid for Doing Note Appraisals
One of the best benefits of your doing note appraisals is that you can get paid for the service whether the note owner ultimately chooses to sell or not. Fees range from the low hundreds for a simple residential loan and up for larger loans. The whole idea is to put something in a note owner’s hand that they keep. If they paid for it, they not only keep it, but they will take you seriously. This gives you an enormous and very profitable advantage over your competition.
Note owners do not discard their appraisals. You will be the person they or their financial professional will call when they do decide to sell. Your credibility is far above all those note buyers who sent “I buy mortgages for cash” letters.
The finished appraisal provides all the essential information regarding the loan: the parties involved and the copies of the documents. In other words, all of the information you need to buy or flip the note. Is this ethical? Yes! You see, the appraisal document (which I authored) discloses and allows you to broker or purchase the note.
How involved does your appraisal need to be? It can be as simple as a one page letter or as elaborate as a nicely bound, multi-page document. The appraisal document I use has been professionally prepared. The basic document is seven pages and is nicely bound for presentation to the client. You do not have to go to that kind of expense and effort immediately, but the sooner the better. You could get started by preparing an appraisal in letter form on your letterhead. That’s the way I started. I called the piece a “Letter of Opinion”. The more professional your appraisal looks, the more profitable your note business becomes.
As I built the note appraising side of my business, I did provide a few free appraisals. As my credibility and, consequently, the appraisal package grew, I began to charge for my professional expertise– and so should you. To generate more business, I had a professional marketing company design an entire marketing campaign around appraisals including letters, flyers and brochures. This turned out to be a very profitable investment.
As I began to expand my appraisal business, I thought it would be a good idea to be certified as a note appraiser. So I obtained certification from the American Institute of Privately Held Notes and Mortgages. If you have never heard of the institute, that is because I am the founder, director, CEO, etc. I think you get the idea.
You will substantially increase profits in your note business by offering appraisals today. Appraisals heighten your professional image, keep your name in the minds of note holders, generate profitable repeat referral business from financial professionals, and will lead to a significant income now and in the future. Appraising will put you head and shoulders above the average note broker. Try it, you will like it.