Buying Notes-Where’s the List of Banks That Sell?
Mar 26, 2009 Real Estate Properties
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Investing in Notes-The Most Common Question
What is the most common question asked? At least 58 different people have wondered the same thing that I did when I completed my first course on How to Buy Notes 4 years ago. Where is the list of banks that sell?
That was the only question I had for my instructor, Mark. By the time my 3 day workshop was done, I was so eager to get a hold of the list. I didn’t understand why he was waiting so long to give it to us. Why couldn’t he have just handed it out at the beginning of the course?
The “Magic Binder” - Banks That Sell Notes
When Mark handed it to me, I wolfed it down. I skimmed every page for nuggets, details, of every bank that “the Master” knew. And here’s what happened. Here’s what I did with that information…Exactly … nothing. Why? Let me walk you through what happened after the course was over.
a) For one thing, a good number of the banks werent in business anymore. (If Indymac was a bank I wanted to pursue, I would probably have a hard time trying to deal with the FDIC).
b) Most of the phone numbers were useless. They were just main numbers, the same numbers that I could find through a google search or in the phone book.
c) Some of the banks weren’t selling their notes anymore
d) There were banks that weren’t on the list that actually did sell notes and defaulted mortgages
e) Once I had the name of the bank itself, I still had to make my presentation to the right person - and that had more to do with what I needed to talk to the banker about than about whether the bank sold notes or not
And now…what do you think happened to the magic binder of banks that sell? It is still propped up in my bookcase and hasn’t been touched.
So What’s my Point on Buying Notes here?
The list is huge. There are so many banks that sell notes and defaulted mortgages.
And it’s based, in almost all situations, on who you know.
In fact, the people that know the list inside and out more than anyone are … Let’s think about this for a minute:
a) less than 3 dozen banks and lenders that sell notes.
b) People that I know in this industry buy from less than 20 lenders. These are people who run a $1-50 million dollar fund. A lot of them have no more than 10 people that they purchase from. (some advice, good brokers are a gem. Treat them well!)
c) An individual that I worked with in the past became very wealthy from one relationship. He spent 7 years buying notes from The Associates. They were his only seller.
d) Everyone who’s a “professional” note buyer has one thing in common… and here’s the secret so listen carefully:
The Secret To A Note Buyer’s Success
They can talk the talk and walk the walk. The professionals not only know exactly what to ask for, they know what to do with the information once they’ve received it. You get that? What you do with what you know is more important.
Now, imagine yourself with one of the most successful Note Buyers (the Zen Master of Note Buying). The both of you are on the top floor of a New York City building admiring the view of the lower east side.
It is an amazing view…all the noise of the city is muted. She asks you to join her onto the fire escape so you climb through the window. All of a sudden you can hear all the sirens and honking cars in the noisy background. She says to you…”Look….that building right there…there they are”. You have a puzzled look on your face.
“Who is there?” you ask.
“They are,” she answers. “The ones you are looking for.”
You look out to where her arm is pointing, but her arm is moving in a gentle arc all the way from your far left to your far right. Now, you’re really clueless. You’re about ready to ask her to explain what she means, but she cuts you off.
“I can sense your doubts.” she tells me.
“I have a story for you”.
She shares a story with you about her master and the time he taught her where to look for the Fountains of Perpetual Notes. She tells me the four words that he spoke to her…”Look for the suffering”.
“So now,” she whispers to you, her arm still pointing over the buildings lighting up New York’s night sky, “I tell you.
“Look for the suffering and there you will find the Fountains of Perpetual Notes.”
She leads you back into the building.
Find the Fountain of perpetual notes. Look for the suffering.
All I’m looking for is a list of banks that sell notes!
How are Suffering and Buying Notes Related?
There is suffering everywhere.
There will be a few lender that don’t have non performing assets to sell.
But there are a lot of lenders that are selling notes right now. To both investors they know and investors they dont know.
Lenders are even being forces to sell notes to investors that they don’t know.
There are many investors that are calling up those lenders asking to be put on the “list” of approved investors. If I were to give you the list of banks that I know sell, it would be like telling you to go pick a number and to stand in line at Katz’s deli at lunch rush-hour on a weekday.
So just go and “Look for the suffering”.
Approach everything with the thought that every lender sells. Don’t ask if the sell…but rather ask to whom they sell.
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Tags: bank notes, buying notes, Foreclosures, homes, how to buy notes, learn how to buy notes, mortgage notes, Mortgages, note buying, profit from notes, Real Estate Properties
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