Finding mortgage note sellers can be difficult. Not only are sellers rare by nature, but the market is currently saturated with competition. Lead acquisition is absolutely critical if you want to be profitable, so many of today’s savvy buyers are taking unique approaches to marketing and advertising.
(photo credit – Select Insure Group – Homeowners Insurance)
In 2014, the founder and owner of Amerinote Xchange, Abby Shemesh, gave a presentation for The Paper Source on some intriguing industry secrets. Abby’s talk is a great introduction to note broker training and the mortgage note industry. Here are some key points that buyers and sellers can use to acquire leads on any budget.
- You will have to invest either time or money. If you don’t have much money, you will need to do legwork.
- For-sale-by-owner listings and courthouse records are good options for finding leads.
- Sellers aren’t always motivated, so you may need to initiate contact and make a sales pitch.
- Even experienced note buyers get rejected often, so don’t be discouraged, and play the numbers game. The more you pitch, the better your odds.
Capturing notes with no budget
A significant amount of training can only come from experience. You must realize that, in order to generate leads, you’re going to have to invest either money or time. There’s no way around that. If you don’t have a big budget to work with, you’re going to have to put in some leg work to get started.
The ideal seller
Part of your note broker training involves recognizing the right seller for your goals. While your mileage may vary, there are some traits you should seek out when finding a seller. Seek out beneficiaries that are private individuals or corporations, ideally individuals if you’re a beginner. People who are collecting on property that exists in a different state are more likely to respond positively because they may not want to continue the long-distance business relationship.
Locate mortgage note sellers through ads
One way that Abby Shemesh gains sales leads is by scouring “for sale by owner” ads for properties that are being sold by people who may be willing to carry paper. These types of ads can be found in classified ads, real estate publications, and for-sale-by-owner websites. Sellers are not always motivated, so you may need to initiate contact and employ some sales tactics. All of the note broker training in the world won’t make a difference if you aren’t willing to get your feet wet.
Find sellers through courthouse leads
Another option is to seek out courthouse leads. If courthouse information isn’t available online, you may need to pay a visit to your local courthouse. You may need to wade through some data, but eventually you should find ideal potential candidates. Look specifically for loans that are 6-30 months old. Once you have a person’s information, you can use online resources to locate contact information.
Partner with a Realtor
Reach out to local real estate agents and ask them to let you know if they run into any seller-financed mortgage notes. This can be a mutually beneficial business relationship because it helps the real estate agent to close the deal. For example, if a potential home buyer can’t get traditional financing, selling real estate notes may be an ideal alternative. In the end, you get your mortgage note, the realtor gets commission, and the seller gets a new home. Everyone wins.
How to proceed after finding leads
It’s not enough just to get the leads; now you need to contact them. While it can be daunting at first, cold calling is the most obvious option, and it’s also free. While you’re in note broker training boot camp, you’re not always going to win. In fact, even seasoned professionals get rejected frequently. Just remember that it’s a numbers game, and salesmanship is key. The hardest step is picking up the phone; it gets easier after the first call.
Small budget lead acquisition
If you have a little bit of money to spend on the lead acquisition process, take out a small print ad in newspapers, real estate publications, and any other relevant publication. Magazines read by financial professionals, especially those in the real estate business, are excellent ad resources. Be sure to include a website and phone number so sellers can reach you easily.
You could also send out postcards to individuals. Corporations, on the other hand, need to be wowed, so send corporations informative brochures or letters. Mail can be a powerful tool because it’s a physical object that serves as a reminder to unmotivated sellers.
Target misspelled key phrases in your PPC campaign
Another fantastic option is to use online SEO practices to gain leads. Instead of going in the front door and paying $3-$7 per click for targeted ads, take advantage of spelling errors. For as little as 5 cents per click, you can pay for key phrases such as “direct note buyr” instead of “direct note buyer.” Use a keyword misspelling generator to create a list of possible misspellings, and then simply copy and paste those phrases into your Google Adwords Campaign. If your call to action is compelling, you should be able to gain leads within a matter of minutes.
Contact Amerinote Xchange for further information
Ultimately, the best way to ensure a successful transaction is to work with experienced industry leaders. Note broker training can only get you so far, and working alongside a knowledgeable expert is the key to getting your feet wet without drowning. Call Amerinote Xchange at 1-800-698-3650, or reach out to us online here, and one of our friendly experts will get in touch the very same day. Count on Amerinote Xchange as a reputable resource for all things related to mortgage note buying and selling.