We are all salespeople in every aspect of our lives. Whether it’s negotiating a note transaction or getting a note holder to accept a cut, we have to be creative and use any available resource! We are selling ourselves to have others believe in our capabilities. In an ideal world, we can get everything done without the assistance of others. In the note business, this is impossible.
Our responsibilities as note professionals are simple and boil down to one thing – a note buyer and note holder unite to complete a discounted note purchase transaction. There can be a number of people that play an important role in a note transaction from the title company, to appraisers, processors, attorneys, servicing companies, investors and, of course, the note brokers.
Every note professional has a unique business and I find it interesting to learn about their differences. Non-performing note brokers use information much differently than a performing note broker. In fact, people within each niche use the same information in many different ways. Some note professionals are tech savvy while others can’t find the “on” button. The most fascinating part to me is the journey each person takes to complete a transaction. If a transaction was as easy as it looked, everyone would do it!
In most cases to close the transaction, having the most reliable information for your investors is valuable. Information can be as simple as a list of comparative properties or as complex as an analytic market study. The question is how do you get the needed information? What is beyond your level of expertise? Who within the industry can assist on this transaction?
“Vendors” – My grandfather once told me “You can’t be an expert at everything, but know the people who are.” This adage holds true in every aspect of my life. I can’t build a deck without knowing who can give me the plans, tools, material, or manpower. The same holds true in the note business. As a note broker, you are the point person on the transaction. Your note holder may ask you for a recommendation for a title company, real estate attorney, appraiser or servicer. As a true professional, I’m sure you have a list of these types of “vendor” companies. If not, you owe it to yourself and your note holders to create one. Next time you are at a networking event, please pay attention to the “vendors” and ask for their cards. The contacts you make will pay dividends in the future.
“Networking” – This is next one I think is obvious! If you don’t network with real estate agents, you are doing yourself a dis-service. By not showing your face at real estate events, others might wonder if you are still in the note buying business. Networking is the #1 skill of salespeople. There are many professional networking groups, Real estate investment associations, commercial investors association and many, many more for all different kinds of real estate related genres. Even a general business group that has one person from every type of business can be a great group to be involved in.
“Knowledge is power!” – Having the most accurate current information to make a note business decision is vital. The information needed is dependent on the type of transaction. Where do you start? What do you need to know? Before you get a new transaction, your market knowledge will play a role. Your note holder will put all their trust in you because of what you can do for them. You are their guide in the note market. Your job is to understand everything about the note world and provide the best information. Read blogs, newsletter, market reports, activity reports, demographic reports, crime statistics, construction reports, city planning reports, etc. You will be glad you have the information when you need it.
In order to grow and survive in the note business, do not underestimate the importance of your business relationships and your knowledge. Remember success demands action, keep on marketing, it’s going to work! TWITA! (That’s What I’m Talkin’ About!)
Jeff Armstrong of Armstrong Capital, your favorite Master Buyer, has been in the cash flow industry since 1991. Specializing in the private mortgage note niche and seller financed notes he can be reached at 818-865-2322 or by email at email@example.com. For beginning to advance training opportunities, resources, to learn more or to obtain a quote visit armstrongcapital.com and secretsofpaper.com.