It stuns me how many people who want to be note investors say, “I can’t find any good deals.” Folks, you’re not looking! I think that many new note investors are under the impression that if they decide to become note investors, the “investor fairy” will drop deals out of the sky.
Not true! Note investors actually have to work just like the rest of the world. The difference is that we are not stuck in a nine-to-five rut and bound by the bosses’ rules. Our job is fun, profitable, we make as much as we are willing to work for, and we help people along the way.
I want to share a few of my favorite methods for finding deals. First and foremost, I’m here to tell you that networking is still a viable way to find note deals because lots of other investors hate to do it. The biggest problem is that some note investors don’t know what to say.
It’s simple, attend networking events that people that might know of note holders (potential referral sources) attend and tell them exactly what you do and what you do and what you are looking for. Typically they will have lots of questions and may even have a situation to talk about right then and there!
What about postcards? Do you religiously mail postcards directly to referrals sources? Try mailing to your potential referral sources; real estate attorneys, bankruptcy attorneys, estate planners, probate attorneys, accountants, financial planners, etc. This information is public knowledge, and the typical note investor doesn’t tap into it. NEVER be typical.
Of course I need to mention direct mail! What about mailing lists? Have you ever considered buying a mailing list of actual note holders? It works. After 25 years I still get over half of my transactions every year from direct mail; why won’t it work for you! I buy lists by the states I want to buy notes in. Won’t it make sense to have several notes in the same area opposed to all over the county?
How about phone calls? How often do you sit down and call and follow up with previous note holders who have contacted you and your potential referral sources you met networking? Never? Why not? Note investors take the time to communicate with people to find those good deals. If no one else has been following up with them and they or their clients need cash, you might have a deal because you were there at the right time.
Do you run ads in newspapers? Why not? Many note investors think ads are too expensive. How many deals do you have to do to pay for a year’s worth of ads? One? We’ll give you a little known tip: Place your ads under “furniture for sale” or “baby items for sale.” My theory of why I find note holders this way is that many times people that are looking for baby items for sale need money and if they have a note, well… and my theory continues that when people are looking for furniture for sale they have just purchased a home and may have carried back a note. Once you have them on the phone and have vetted them you can negotiate your way into a deal.
In the note business you will make as much money as you are willing to work for. My question for you is: How much are you willing to make? The sky is truly the limit. The bottom line is this: There are thousands of deals out there. If you don’t make the effort to find them, other note investors will.
Remember, success demands action! Keep on marketing, it’s going to work! TWITA! (That’s What I’m Talking About!) ☺