Written by Jeffrey R. Armstrong – President/Owner of Armstrong Capital
Your favorite Master Note Buyer – Straightforward, Honest, Fair…
One of the things that you will be doing at this year’s Cash Flow Convention is walking through the Exhibit Hall to meet the Funding Sources face to face. The funding sources are only in business because of you the consultant and want to get more business from you. Some of the funding sources will have packets of information available to you to pick up. Other might have pens, pads of paper, candy, disks, balls, t-shirts or other marketing paraphernalia for you to fill up your Cash Flow bag with.
My daughters and I have an annual tradition of going through the Exhibit Hall at the convention several times to go “Trick or Treating” and fill up our bags with all sorts of goodies. It is nice to be receiving these items and sometimes it helps in remembering all of them. In addition to filling up your bags you will also want to say hello to whomever is at the booth and introduce yourself. You want to interview the funding sources and ask them a few questions that will help you determine what they are looking for, how to work with them and if they are a good fit for your individual business plan.
Over the years I have come up with some guideline questions to ask the Private Mortgage Note Funding Sources to help me in choosing which funding source to send which types of particular transactions. In finding out a Private Mortgage Note Funding Sources’ expectations, criteria and guidelines you as a consultant will be in a much better position to assist your prospects. Following are ten important questions you might want to consider asking a Private Mortgage Note Funding Source:
- Who is my contact to send worksheets to?
- Do you require any additional documentation besides a worksheet to give a quote?
- How do you prefer to receive the worksheet? (fax, e-mail, website, etc)
- Do you give Wholesale and Retail quotes?
- Do you give full and partial options? (Only full? Only partial? both, etc.)
- What is your turn around time to give me a quote?
- What is your purchasing niche? (Only notes secured by residential properties, commercial properties, land, all notes, etc)
- What size notes do you prefer?
- When a quote is accepted what do you want me to do?
- Do you take care of all of the due diligence?
In addition to the above questions I have ten additional questions that are nice to know the answers to when dealing with a particular funding source as well so you don’t spin your wheels or waste their time:
- Do you purchase Second position notes?
- Do you do Simultaneous transactions?
- What worksheet do you like us to use?
- How many different ways can you purchase a note?
- What are your maximum ITV limits?
- Do you prefer notes in certain states, areas or regions?
- Are there any notes or areas you don’t want or like?
- Are you a direct funder?
- Do you use your own funds?
- Do you borrow your funds to purchase the notes?
So, as you are strolling through the Exhibit Hall at this year’s convention don’t just go “Trick or Treating”. Use the opportunity to meet the funding sources face to face and start to develop a relationship with them. A relationship with just a few funding sources can be the cornerstone of your success in the Private Mortgage niche. Best of luck and I’ll see you at the convention!