Must Knows Before Jumping into the Note Business Part Time
Challenges of opening a Seller Financed Note Business part time may be too difficult for some to handle. Starting a new career as a note professional can be intimidating, to say the least. Gone are the days of that “guaranteed” paycheck that most people depend on to survive. This is one of the main reasons that many people decide to “test the waters” before devoting themselves full time as a note professional. It’s a lot easier to keep your full-time job as security when first starting out, and for many people it is the only way to begin what they hope is an exciting and successful new profession.
The truth is that, like me, many note professionals began as part-timers, and some have remained that way for many years. This type of situation is advantageous for single parents, persons looking to supplement an existing income, or retired persons who want to stay active and involved. While it is completely possible to be successful as a part-time note professional, there are some important points to consider before deciding whether it will work for you.
The limited work schedule of a part-timer usually equates to less business. That’s not to say that part time note professionals won’t succeed, but it does mean that you need to keep your expectations in check. Set realistic goals, be persistent, be patient and keep moving forward. Understand that the Seller Financed Note Business is a huge numbers game and that it takes knowledge, time, effort and of course money for marketing. It will probably will take you longer and require more reserves than you are expecting to set aside to start your business with.
One of the most difficult challenges that part-timers face is scheduling. Scheduling time to take calls, follow up with note holders and tend to daily note business tasks will be a challenge. Obviously, it’s not easy to be available for the note holders that contact you a time that is good for them if you are putting in limited hours. This is especially true of note holders that actually need money yesterday. Other facets of the note business (such as working with investors, title companies and appraisers) are more manageable due to the fact that they usually operate during “normal” business hours, but if you work elsewhere during this time period getting things done might become quite difficult. It can be done (on your breaks or lunchtime) but you will need to have the dedication and be proficient at organization and time management to keep it all flowing smoothly.
Try as you might, there will be times that you just can’t accommodate the timing requirements of others. You may need to share your income with others. This is not the end of the world, and the best way to deal with this situation is to ask other note professionals or a master buyer to help you when you simply can’t accommodate a note holder at a time or day that they insist upon. This happens to busy note professionals as well, and the usual arrangement is that you must compensate the other note professionals for their assistance. You will want to work this out with others in advance so that everyone understands what is expected of them and that mishaps and miscommunication can be avoided.
If you are planning to continue your current employment, as well as work as a note professional, be prepared for long days and possibly busy weekends. Prepare yourself for the long haul. You already know that you may have evenings and weekends available so you might consider spending some time on your note business on some Saturdays, and finding the time for a day off or vacation is going to be difficult if you want to succeed. Burnout becomes a real possibility, and, as I stated earlier, you will need to be a master of scheduling in order to juggle two different professions at the same time.
I hope that all of this doesn’t seem discouraging to you if you are considering starting your Seller Financed Note Business part-time. There are many part-time note professionals who do quite well with a limited schedule each week, but it is important that you know the reality and understand the challenges ahead before spending your time and effort only to find out that it might be a bit too much for you to handle. Hope this helps! 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, your note investments or to request a quote on a note you currently have visit www.armstrongcapital.com to email him and subscribe to his weekly Note-Able Newsletter.