201 Spear Street, #1100 | San Francisco | CA 94105

Blog

We have been purchasing notes, mortgages and real estate contracts for over a decade and we pride ourselves on a unique client experience at the best price possible.

23
Dec

How to be a Successful Note Broker

architecture-1541079_960_720

 

Achieving financial success is one of the most popular self-help subjects of all time. If this tells us anything, it’s that creating and sustaining financial success is difficult for lots of people — so difficult that, in an odd twist of fate, they spend multiple millions of dollars on resources that will supposedly help them earn multiple millions, when all is said and done.

 

Self-Help or Self-Hindrance?

Most people who turn to self-help guides for wealth building never make it to the top of the money pile. One of the main reasons why is that the book or video’s famous author never tells us the most important secret of all: To be as successful as me, you need to possess my intuition and insight for savvy business moves. It’s like Harrison Ford teaching an acting class, where students expect to become legendary thespians after the course is over.

The same situation can befall beginning mortgage note brokers. Instead of taking a time-tested, common sense approach to building a lucrative note portfolio — and increasing their intuition and insight as they go — they put the cart before the horse and feel defeated after falling short of prematurely lofty goals.

skyscraper-1571812_960_720

Of course, you can always find stories of overnight successes, but they shouldn’t be held up as examples for every investor to follow. Rather, most mortgage note brokers experience more success and less discouragement by taking humble but proactive steps like the ones below.

 

1. Start Out as a One-Person Firm

Unlike many entrepreneurs, mortgage note brokers don’t need a team to start a note buying business. They can start on their own, and hire brokers, administrative assistants, in-house legal counsel, etc., as revenue increases. Most mortgage note brokers start out solo for a reason: A one-person operation is usually the most economical kind of business you can run.

 

2. Promote Yourself Inexpensively

It would be great if you could start out with full-fledged offline and online marketing campaigns that advertise your services, but this isn’t a reality for most new mortgage note brokers. There are, however, some effective, inexpensive ways to promote yourself, such as passing out business cards at real estate broker conventions, distributing flyers among owners of seller financed mortgage notes, and placing inexpensive ads in real estate magazines.

 

3. Use One Note to Finance Another

gehry-buildings-1559784_960_720

You’ll consistently pay less for mortgage notes than the notes are worth after all the mortgage payments are made, so you can use profits from one note to purchase another. Doing it this way is better than using business loans; it prevents a loan provider from foreclosing on your assets if some of your notes are temporarily inactive, and make it hard to pay on the loan.

 

4. Consider Timing Of Transactions

The ultimate value of buying, trading, or selling a note depends largely on market conditions at the time of the transaction. In fact, when it comes to building wealth though note transactions, you might say that patience can be a virtue, but waiting too long can be a vice. Focus acquiring or liquidating notes when the market strongly favors your financial interests, whether that time is this month or a year from now.

 

About Amerinote Xchange

Amerinote Xchange is a loan acquisition firm located in bustling San Francisco, California. To inquire about the debt instruments we purchase and services we offer, please call us today at (800) 698-3650, or email us through our contact form. We look forward to hearing from you!

 

Posted by Abby | 0 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Contact Us

  • Should be Empty: