Interview by The Paper Source
Interview with Jeff Armstrong a Successful Note Broker, Investor & Master Buyer
What does your company do? Armstrong Capital purchases and brokers real estate secured notes on the secondary market. We are also a Master Buyer willing to assist new brokers in the industry become knowledgeable and successful in the seller financed note (private mortgage niche) of the cash flow industry.
How do you help new brokers? By educating individuals with innovative and current tools and products, speaking at industry conferences and conventions, assisting, supporting and working with them through our Referral Program, Master Buyer Program and our very successful Mentorship Program.
Do you work with a number of different investors? Yes, if we do not buy the notes we work with several well know institutional funding sources as well as our “back pocket” private investors across the country.
What does a broker need to do in order to work with you? Sign and endorse our Master Buyer/Broker Agreement and the Note Business Code of Ethics and Conduct found in our Broker Package. Then submit a legible, completed Mortgage Note Submission Worksheet to us OR a “warm lead” (someone whom the broker is in direct contact with, is currently receiving payments on a real estate note and is in need of some cash).
How do you get paid? When working with a broker on a deal (depending upon their level of involvement) we will take a nominal fee of $350 if their negotiated commission is less than $5,000 or 20% if over $5,000.
Are brokers making less money by working through you? Not at all, in fact most of the time they can make even more. Because of the relationships we have developed over the years with the different funding sources and private investors your commissions can be similar to or higher than working direct.
What does the note business look like from where you’re sitting? It’s coming back up from the bottom of a wave. With the questionable real estate market and tough to get conventional financing more seller-financing is going to be taking place which translates into more notes to go after and more transactions to do.
How did you learn this business? In short, I took a 5-day boot camp in 1991 from the then National Mortgage Investors Institute (NMII) now the American Cash Flow Association. Through persistence and hard work I was able to make the business work for me and become successful in it.
What is the favorite part of your job? My favorite part about this business is that every single transaction that I have been involved in has truly helped the note holder. Being able to offer another alternative to help people get the cash they need is very gratifying.
What is your least favorite part of your job? It is equally distressful when for some reason during the due diligence process the transaction is cancelled or the price cut and we have to go back to the seller and tell them that we are unable to assist them in getting the cash they needed.
What would you be doing if you weren’t in this business? If I was not in this business I would be a manager at Ralph’s Supermarket, a grocery store in California. I worked there for 12 years before I started this business.
What are your hobbies? Tournament Bass fishing, snow skiing, surfing, hanging out at the beach, traveling and an occasional round of golf.
Tell us about your family. I have two amazing daughters who also help with business when they are not busy with school, dancing or fashion.
What book are you currently reading? The latest book I have read is The Noticer by Thomas Nelson. I am always trying to improve my business by reading books, attending workshops and conventions.
What is your favorite movie? If I had to pick one I’d probably pick a funny one like Caddyshack or Tombstone “I’ll be your huckleberry…”
Who in history do you wish you were able to get to know? Ronald Reagan. He was the first president I ever voted for and I truly admired him.
Anything else you want to tell us? Check out our website at www.armstrongcapital.com and click on “Note Brokers”. There you can download and print out our free broker package, read articles, check out our products, sign up for our free monthly email newsletter and find out about our different programs for brokers. I’d love to assist you in starting and growing your note business! TWITA!
What does “TWITA” stand for? That’s What I’m Talking About!