Stop Home Foreclosure

A Question on How to Broker Notes

Many people ask the same question.

I’m a newbie. I have read all the free information available on the note buying business.

I cannot invest any money at this time.

In order to save some investment money, I plan to broker notes. This will also allow me to get comfortable with the process.

Since this is my game plan, is brokering notes the right course for me?

A Thought on How to Broker Notes

This is my reply.

This will answer the questions on getting started in the note buying/defaulted mortgage business, that many of you have.

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.

A solid understanding of what you’re doing is requiredif you want to make any money.

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

Brokering is actually a very good place 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.

Of course you can’t really compare the experience you will gain when you actually own non performing notes. But this is a great starting point (while making money) where you will be able to save money to buy your own notes. (and make more money).

The really few good brokers that are out there make great money.

If you learn and do this right, you can gain relationships that you will build over time, without putting any of your cash on the table. You can do incredibly well.

How to Broker Notes Example

Let me give you an example of what sometimes happens with brokers:

I usually get the following type of call about 3-5 times each week. Say you called me up and said, “Hello, I am interesting in brokering notes to you, what are you looking for”?

You definately wouldn’t make it through the front door and most likely I would add you to my “do not answer” list.

This is 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:

Once they have a product that they want us to bid on, they call. Not before.

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.

As a broker you will need to have a similar understanding of note buying that a regular buyer like myself does.

And why?

You need to know what you are doing if you want the bank to work with you.

Banks want someone that knows the entire bid process. You will need to know how bids are presented (for example the documents usually required are referred to as stips, there are purchase contracts and fades, all of which you need to understand). You will need to know what type of research the buyer will be doing, like title swipes or BPO’s. You should also know what the buyers do with the notes that they buy.

Some 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).

Looking forward to seeing you brokering notes soon!