Very successful Note Professionals are not made overnight. For as much as you may desire to have more deals than you can handle, there is a process. Success isn’t just handed out. Remember to respect the system. There is nothing wrong with working on one deal at a time, and growing your note business methodically. Grow your note business properly, and it will reward you accordingly… over time. Every new note professional wants to close their first couple of deals yesterday, but that is not always realistic. Here are some ways on how to grow your note business at your own pace:
Keep your expenses down. The way the note business is done has changed since I started in 1991. In the past, if you wanted to open a note business, the first thing you did was look for office space. I had one in the early days of my note business, albeit for a very short time. For today’s note professionals, this is definitely not a necessity. With the way technology has advanced, you can do everything you need to do with a laptop and a phone. There is a temptation to have everything lined up perfectly before you work the business. This means spending money on a website, business cards, letterhead, envelopes, postage, etc. Some, or all of these can be necessary over time, but depending upon your budget and until you get rolling, they aren’t necessarily needed. There is nothing wrong with finding potential note holders online on your laptop and using the Reverse Ad Marketing method from your kitchen table. Search Craigslist, Trulia and other real estate listing sites for seller financing or owner financing to generate potential leads. You should not pile up the debt before you close your first deal. As you get going, you will need to spend money to grow your note business. However, it might be better to wait until you get to that point to do so.
Search locally and expand gradually. Instead of searching for notes within your entire region, cut that search down to your state or a couple of your surrounding counties. In most states there are more than enough note holders – if you are willing to find them. If you are hitting a wall and are having trouble generating note holder leads, the problem could be with how you are searching. Instead of waiting for a deal to magically come to you from the internet, you may need to change the way you search. Keep your target zone tight, a county or two or three can still be a very big area. Even the deals you don’t get will help you learn. By knowing the ins-and-outs of an area, you will learn what to focus on, what to avoid and what works for you. This will save you time and money down the road. To grow at your own pace, you need to figure out you own sweet spot that you can count on.
Start your note business small. It is important not to spend over your budget on your marketing until you close your first couple of deals. There is nothing wrong with looking for notes with balances of $100,000 and up. In fact, these types of notes can offer a great chance to make a decent commission. However, one entry to the note business that is often overlooked are notes under $50,000. When doing transactions with smaller balances you learn as you go and cover your expenses all while building up your pipeline. Everyone wants to hit a home run or even a grand slam right when they get started. The truth is long term success in the note business is made up of lots of singles and doubles.
Be smart when marketing. There is a temptation to blindly dump money into marketing for note holders to get your note business jump-started. Marketing definitely needs to be done to generate leads, but you need to do it wisely. For starters, you need to know just how much volume you can handle. You will be wasting money if you can’t fully work every note holder lead you get. It is far better to work on a smaller marketing plan initially so you can see what kind of time will be required. It will take you longer to get where you want to be but you don’t need to break the bank or rack up credit card debt to generate leads either. There are several options that can do the trick. Consider joining local networking groups, or find a real estate investing club. Price out the cost to advertise on your favorite social network site. Whatever you do, make sure that it fits your budget and that you know exactly what your target is and what you are getting.
Take it one deal at a time. In time, you will be ready to take on a handful of deals. Until you get to that point, work on one deal at a time. Understand the ins-and-outs of every aspect of the transaction. Ask questions along the way until you are confident that you know what you are doing. After you complete one deal, you will be ready to take on the next one. Keeping your pipeline full is always important, but it doesn’t do you much good if you don’t know what you are doing. Until you understand the process and how to work on multiple deals, stick with one deal at a time.
No matter how many times I say it, people do not listen. The note business is not a get rich quick business It is not a sprint; it is a marathon. This is your note business and you can run it any way you like. You don’t need to be an overnight success to be successful. Grow at your own pace. Hope this helps! Be kind, keep safe and stay healthy. 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 has been a note investor and broker specializing in the performing seller financed note industry since 1991. For more updated and current information on how he can help you with your note business, note investments, note appraisals or to request pricing options on a note visit www.armstrongcapital.com to email him and subscribe to his weekly Note-Able Newsletter.