Being successful in the Note Business is a delicate juggling act of doing the right thing while simultaneously avoiding costly mistakes. Unfortunately, many Note Professionals–especially new Note Brokers– make simple mistakes that could easily be avoided with a little diligence and some inside knowledge. Note Professionals are essentially entrepreneurs and are known to have many qualities—persistence, leadership skills, and a never-say-die attitude, to name a few—all necessary assets to putting them on the road to success in the Note Business. But even with those skills, some of the most successful note professionals have made their share of mistakes, sometimes spectacularly.
I am lucky enough to have the chance to talk and work with many new and seasoned note professionals every year. In doing so I am able to notice many mistakes, errors and blunders that they might be making to help them refine their note businesses and become more successful. It is my opinion that many of these mistakes note professionals are prone to make undermine their efforts to build wealth. This month I would like to share with you what I have narrowed down to be the top five things note professionals should be aware of to survive and be successful long term. Don’t derail your note business efforts by making these five mistakes.
Know The Fundamentals – Know the right questions to ask a note holder. Learn about your investors. Know as much about what they like to buy as they do. Recognize what is going on in the market place and adapt as needed.
Keep Operating Costs Low – The higher your overhead the more deals you will be under pressure to close each month. During good times you can probably do it without any problems but that can change quickly. Have a budget and stick to it. Spend most of your money on marketing.
Manage Overhead Wisely – Make a list each day and stick with it. Set goals and write them down and review them regularly. Plan your work day and know the status of every deal in process.
Become an Expert Negotiator – Key rule in negotiating is the first one to name a price loses. Ask questions and listen. Find out what the sellers needs are and address those needs. What do they need to get out of their note? Spend time with them on the phone. They will only sell a note to someone they trust. Build a rapport by spending time talking.
Do What You Say You Will Do, When You Say You Will Do It – Even if it seems like the best way at the time, never, ever, break your word. You lose credibility with your investors, your note sellers, and you lose a portion of your self-respect. Always deliver more than you promise. It will bring more rewards than anything else you can do. It will set you apart. Live up to your verbal agreements just as you do written agreements. Never overprice a note just to get it signed up with the idea of reducing the price later. This is dishonest and unethical; you will lose credibility and harm the integrity of our industry in general.
Of these top five mistakes that I see note professionals making all the time, which ones apply to you? Is there one, two or more of these that you should be working on? If so, get busy on rectifying these mistakes as soon as possible. If not, congratulations, keep up the good work!
Remember, Success Demands Action! Keep on marketing, it’s going to work! TWITA!