Top Real Estate Articles

How to Buy Cash Flow Notes - “We don’t sell Notes”

Apr 18, 2009 Real Estate Properties

A Common Hurdle When Learning How to Buy Cash Flow Notes

When you are looking for non performing notes, you will most likely run into this common hurdle. I wanted to take the time to share it with you.

So you’ve been busy cold calling banks and looking for notes to buy.

A lot of these bank contacts have told you that they either don’t sell notes or that they don’t have any non performing notes right?

Let me ask you…when we hear this, should we just accept this information assuming it is the truth? Or should we do some more research by say, contacting someone else?

Your Two Responses to the Question: Can I Buy Cash Flow Notes?”

Let’s review to the 2 possible situations you will be get:

1. Our bank doesn not sell real estate notes.

2. Our bank does not have any non performing notes.

The former, I can believe. The latter, I can’t.

There is probably a 25% chance that if someone is telling you that they don’t sell non performing notes, they are actually telling you the truth.

On the otherhand, if they are telling you that they don’t have any non performing notes, the likelihood that they are pulling your chain is about 99.9%.

The best follow-up is find someone else to call at the same bank!

Finding Your Contacts When Learning How to Buy Cash Flow Notes

You can try contacting the CFO directly at the bank or you can use the corporate HQ number and ask for the head of secondary marketing. Then try to contact loss mitigation.

There are always “multiple” ways to solve a problem. Don’t let the first door shut stop your note buying pursuit.

How to Buy Cash Flow Notes - Finding Contacts…A Tip From Will

Will, one of my students, has shared a useful tip with me and I would like to share it with you. It has proven him success in finding contacts.

1. Go to thomas-law.com and select “mortgage banker licenses”

2. From there you can select the state and click on the link that says “mortgage lending division”

3. Then click on the licensee records link which should be on the left hand side

4. choose the “licensed mortgage bankers” link

Any one of those links will give you principal’s contact info & email. You can do this for all 50 states. Now who has the bank contacts? Use them and buy some cash flow notes!

Nothing ventured, nothing gained.

Tags: buying cash flow notes, buying notes, defaulted mortgages, Foreclosures, how to buy cash flow notes, Mortgages, note buying 101, note buying course, real estate note investing, Real Estate Properties, REOs, Short Sales

Cash Flow Note Business Success - A Story About The Lone Wolf

Apr 9, 2009 Real Estate Properties

A Look at the Cash Flow Note Business

A friend of mine, Heather, flew in for her 40th birthday this weekend.

We just spent four hours catching up over expensive white tea and salmon salad at the Samovar Tea Lounge near our house.

It was great.

She told me about a current project that she was working on, and it really left an impression on me.

I automatically thought about how it related to my Cash Flow Note Business. Because of the simple fact that the story had a direct impact on you, your life, and the way you interact with people in your community.

The Cash Flow Note Business and its Relation to Heather

Heather’s an artist, a very talented one, who has specialized in story-telling through different media. Very different from my speciality which is buying notes.

Her current project involves a Native American woman from Washington. She is a member of the Sakgit Indians, and Heather has been documenting the life and wisdom of this woman.

Heather interviewed this wise woman, who was considered her tribes community builder. The woman told her that people were no longer fulfulled and they became emptier and emptier.

This when Heather brought up the Hopi poem about the Lone Wolf.

I just read it, and it struck me that I needed to share this with you to point out how it can serve as wisdom to all of us, especially for those of you starting a new cash flow note business, a new venture explored, and striking out on your own.

Cash Flow Note Business Success, Words of Wisdom

Let me share the poem with you ..

“There is a river flowing now very fast. It is so great and swift that there are those who will be afraid. They will try to hold on to the shore. They will feel they are torn apart and will suffer greatly. Know the river has its destination. The elders say we must let go of the shore, push off into the middle of the river, keep our eyes open, and our heads above water. And I say, see who is in there with you and celebrate. At this time in history, we are to take nothing personally, Least of all ourselves. For the moment that we do, our spiritual growth and journey comes to a halt. The time for the lone wolf is over. Gather yourselves! Banish the word struggle from you attitude and your vocabulary. All that we do now must be done in a sacred manner and in celebration. The poem ends with the words: “We are the ones we’ve been waiting for.”

Cash Flow Note Business, How Does This Poem Relate?

Here’s how this applies to you directly in your (and my) Note Buying Business.

a) The river flowing fast resembles you, and the unknown world of investing in nonperforming notes. It must terrify you.

b) The other people who are less adventuresome than you will “hold onto the shore” while you proceed.

c) Trust in the river - and that it has a destination - one that you’ll be able to reach if you allow yourself to “flow” with it. (example: multiple exit strategies for you defaulted mortgage business)

d) The time for the lone wolf is over, think of it this way, if you want to really succeed in your cash flow note business; you need to reach out to people, whether those be bankers, investors, real estate agents, or title officers.

e) Don’t ever think about this as a “struggle” - this is you learning how to swim in a river that moves faster than you’re used to - but once you learn how to float (in regards to the cash flow note business - you learn the lingo, you learn what a trade looks like, you study the process and you eventually close your first deal), you learn to let the river carry you along.

A Tip on Your Cash Flow Note Business

The important lesson learned? “We are the ones we’ve been waiting for.”

So listen to what I’m saying. Write this down, put it on your beside table or your desk even. This is your new motto for your new Non Performing Note Business.

You can do anything you put your mind to. There is no one else you need to wait for.

Imagine the conversation: Me, meet Me.

The power of this simple realization should not be underestimated.

As Heather put it to me earlier tonight, she said: “the most powerfully creative moments for an artist are when we get out of our way, and just let our creative energy flow.”

Remember, it’s YOU that you’ve been waiting for.

Make use of all the wolves out there and get out of the river.

Tags: bad paper, buy cash flow notes, buying notes, cash flow note business, defaulted mortgages, Foreclosures, how to buy notes, Non Performing Notes, note buying, Real Estate Properties

Buying Defaulted Mortgages - Multiple Exit Strategies Needed

Feb 27, 2009 Real Estate Properties

The other day I had a conversation with a new Note Buyer who informed me that after a long career in wholesaling properties, he was going to start investing in buying defaulted mortgages.

When he said to me “Dean, the reason why I want to get into buying defaulted mortgages is not only for the cash flow, but I want to keep these people in their properties. This is what worried me.

I do admit that Humanity counts, don’t get me wrong. But…

Don’t lose sight of the forest for the tree.

When Buying Defaulted Mortgages, Don’t Only Focus On One Exit Strategy

It will not work.

Even if you want to pursue one exit strategy for the defaulted mortgages that you have just purchased, you can’t. (in this case, he thought that he could generate cash flow by re-performing all the notes he bought by modifying them.

Mulitple Exit Strategies Are Need When Investing In Defaulted Mortgages

You have to be like Rafael Nadal in order to invest successfully in defaulted mortgages.

Nadal is a really well-balanced tennis star. He has an amazing serve, excellent grass court experience, plays solidly on clay, and can fire a wicked forehand.

Follow the same approach when buying defaulted mortgages. Learn how to pursue MULTIPLE Note Buying Exit Strategies at once.

Be careful you don’t “stick yourself” with one note buying strategy.

Using Foreclosure as a Buying Defaulted Mortgages Tool

Sometimes it takes starting a foreclosure action to get a borrower to cooperate with you in getting a loan modified.

And Why?

The foreclosure action acts like a wake up call to someone who has been missing payments on a regular basis. That in combination with your help in their loan modification may be just what they need to get going to work their way out of their situation.

Be careful not to fall into the same trap as the investor I talked to.

If you want to be successful in your Defaulted Mortgage Buying business, 1 Exit Strategy is not enough.

To do well in the note buying business, know all of your 5 Exit Strategies.

Tags: Banks, business;finance, buying defaulted mortgages, buying notes, defaulted mortgages, Foreclosures, homes, how to buy defaulted mortages, how to buy notes, INVESTING, Mortgages, note business, note buying, notes, Real Estate, Real Estate Properties, real;estate