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Note Broker vs. Note Investor

Becoming a note broker can be highly profitable, you start out by marketing, building your name and establishing a reputation with note holders and note investors and then, if you hustle, you can make really good money. But how much work does one need to put in and what do you consider to be good money? Those are two key questions and things to think about.

Many people want to become a note broker to close transactions and build capital to then invest in seller financed notes themselves but fail to realize that brokering notes and investing in notes are two different thought processes, mindsets and businesses. You need to know that note investors think VERY differently than note brokers.  After many years of note brokering most individuals can gain the knowledge to think like a note investor.

One of the misconceptions many beginner note professionals assume is that becoming a note broker will help them understand how to invest in seller financed notes. The truth is many note brokers know how to market for and broker a note, but don’t know how to invest in a note and most investors know how to invest in a note but don’t know how to market for and broker a note.

Many note investors have an investment portfolio, and with good paying notes, have solid cash flow.  Investing in notes can produce extreme passive income and can help protect you in a slow or down market. However, finding new notes to purchase, chasing note holders, title companies, real estate attorneys, appraisers and servicing companies, drawing up contracts, running your marketing campaign and answering phone calls all day is a full-time business itself. Unless you have a good business model and marketing plan, a note investor will find it tough to find consistent notes to buy.

Now, brokering notes can be extremely profitable as well, if executed correctly. Understand that brokering notes has a series of demands that is quite time consuming. Finding the right note for the right investor and getting the note holder to accept a pricing option is definitely also a full-time job in itself, as well as chasing vendors and many other unforeseen factors that come into play. I have seen many note brokers fail in one department and succeed in another or vice versa.

My recommendation is to start being a note professional with a solid plan and don’t mix apples with oranges. If you are going to be a note investor focus on raising capital to build your business and build relationships with effective note brokers instead of trying to find notes yourself.  If you are going to become a note broker then create an effective plan to efficiently locate note holders consistently and build relationships with experienced and trusted investors. Create a niche that will help you stand out and maximize your note business. 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 broker and investor specializing in the seller financed note industry since 1991.  He can be reached by email at 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

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