How to Broker Notes Getting Started in the Note Buying Business the Right Way

A Question on How to Broker Notes



Here is a question that most people ask. I'm a newbie. I have read all the free information available on the note buying business. I have no money to invest at this time. I plan to broker notes until I get comfortable with the process and get some investment money saved. Since this is my game plan, is brokering notes the right course for me?



My Thoughts on How to Broker Notes



And here is my reply. This may address some of the "how to get started in the note buying/defaulted mortgages business?" questions going through all your heads as well. When learning how to broker notes, you need to know that it is both an art and a science. And no, you don't need money to broker notes. What you need though, is a solid understanding of what you're trying to do if you want to make any money.



Learning How to Broker Notes...A Quickstart For Your Note Buying Business



Actually, brokering is a very useful way to start. You can learn about the entire closing process, and see a transaction in action, before you ever need to put any of your own money at risk. Nothing compares to buying your own non performing note in terms of gaining experience, but this can be a great way to start (making good money) before you build up enough cash to be able to buy your own note (where you can make great money). There are a few really good note brokers out there, however, that make excellent money doing what they're doing. Learn this right, and you can have none of your cash in the game, excellent relationships that you continue to build over time, and do incredibly well for yourself!



An Example on How to Broker Notes



Let me give you an example of what sometimes happens with brokers: If you were to call me up today (our office usually gets 3-5 of these calls each week) and say "Hi,I'd like to broker notes to you - can you tell me what you're looking for and I'll go out and look for some?". You wouldn't make it through the door and we'd probably put your name down on the "do not answer" list.



Here's why: If you, as a broker of notes, can't demonstrate to me, a buyer of notes, why should I listen to you in 30 seconds or less, then you're a time waster.



How to Broker Notes, What Makes a Good Broker?



Here's what the good brokers do: They call when they have product that they'd like to show us and have us bid on. And the only way to get product is to ... talk to banks or other sellers of notes, and convince them that you know what you're talking about and that you can help them out by finding buyers for their non performing notes. So now, guess what, as a broker you need to actually demonstrate a similar understanding of note buying that a regular buyer does like me. Why? Because banks want to deal with people who know what they're doing.



And what a bank will usually be looking for is someone who knows what happens in a bid and how bids are presented (stips and purchase contracts, fades, what type of due diligence a typical buyer will be doing (title and BPO's), and what individual buyers actually DO with the notes they buy.



My Advice on How To Broker Notes



Give yourself a solid education in the note buying business, the closing, the negotiation and the workouts, so that you can (without doing a single deal), demonstrate a solid understanding of the note buying space. No one likes dealing with newbies who don't know anything - everybody likes to deal with professionals, or people who come across as professional, who won't waste their time and who can get them product. Remember this when you are learning how to broker notes. You can spend a lot of time getting to the point where you're taken seriously by buyers and banks (you need both in order to broker notes successfully, which not many people realize in this market). I look forward to seeing you out there very soon brokering notes!





Interested in learning more about the Note Buying and Note Brokering Business?
Watch Hours of FREE Training Videos here: How to Broker Discounted Mortgages
From Dean Engle & NoteBuyingProfits.com - This time on How to Broker Notes