Written by Jeffrey R. Armstrong – President/Owner of Armstrong Capital
Your favorite Master Note Buyer – Straightforward, Honest, Fair…
Junior High School, ah, I remember it like it was yesterday. Lots of friends, fun and good times. And there was lots of learning going on as well in science, english, history and algebra. I don’t remember most of the teachers I had back then but there was one teacher that sticks out in my mind, Mr. Burr who taught me Algebra I and Algebra II. Mr. Burr taught me much more than algebra though. While filling my head with equations, formulas, proofs and theorems Mr. Burr gave me a piece of advice that I would use for the rest of my life. That piece of advice was “Never assume because it makes an ass out of u and me“. Not only did that one piece of advice help do well in algebra but it has helped me out in my life and in the cash flow business as well.
As a Cash Flow Consultant there are many things that you should ‘never assume’. Assuming anything in any business is a very poor way of doing business and not only hinders a business but also is detrimental to the business itself. Assuming can not only cost you lots of time, money and future business but also, on the extreme end, it could cost you relationships and burn bridges with associates and clients. Following I have made a list of five of the things you should never assume as a Cash Flow Consultant, see if you can think of others as you read through them.
Never assume the note holder or client knows what you do. This is a very niche industry, we all know what you do, but the average person out there has no idea what you do until you explain it to them. For example, on your first conversation with a potential note seller you should explain to them, in no uncertain terms, that you “purchase and broker seller financed notes secured by real estate and other income streams at a discount“. If the note holder understands this right up front it will lessen the initial shock of the discounted value of their note when you give them their options. In addition it will save you time if the note holder is unrealistic in their expectations of the value of their note (i.e. expecting the balance of the note for the full purchase).
Never assume the information the note holder or client gives you is accurate until you see copies of the pertinent documents and information. Initially, when quoting on a note off of a completed worksheet, all quotes on a note are ‘soft quotes’ based on the information given. All quotes are subject to verification of the information given and acceptance of credit, appraisal and title. The value of the note, and the purchase price paid for them, is always contingent on those factors and may change when all of the information is gathered, examined and verified.
Never assume a note holder or client will remember to contact you at a designated time in the future. Whether it is in two days, one week, one month or one year, it is your job to stay in contact with them and to be there when they need cash and are ready to sell. Always be proactive and follow up with a note holder on your schedule, if they contact you first, all the better. Do not just leave it up to chance that they will remember to contact you when they need cash.
Never assume that a funding source, master broker or mentor will be available immediately. Or, to put it another way, never promise a note holder or client how quickly you can set up a conference call, get a quote or close a deal and assume it will happen. Whether it is for a conference call, a quote or a closing, everyone involved in this industry is on the same page when it comes to getting and closing a deal as quickly as possible, time is always of the essence. However, there is a process and a time for everything. If you do not receive a quote back from the funding source within 24 hours or by the end of the next business day you should give them a call and make sure they received your worksheet. It is possible that it was not received or that it was illegible and they couldn’t get back to you. If you need a conference call with a note holder or client and the funding source call them separately beforehand to set up a time that is good for both parties. There is nothing worse than an impromptu conference call when someone is rushed, unprepared or doesn’t have the proper information to handle the call intelligently.
Never assume the deal is done until you receive your commission check. As a rule in being a cash flow consultant you should check in with the funding source once in a while during the due diligence and closing process. Give them a call a couple of times a week and ask how things are going and if there is anything you can do to assist with closing. Most of the time everything will be taken care of but sometimes they will need a question answered or a copy of a document. It is greatly appreciated by the funding source that you are at the very least offering to help and it will keep the transaction moving along and possibly get closed faster.
There are many more assumptions that can make or break a cash flow consultants business. If you run your business straightforward, honest and fair and never assume anything your business will flourish. As a cash flow consultant you will have a much better chance of success if you never assume.