As a mortgage note broker you have the ability to make some great income for yourself with a home based business model. The seller finance mortgage note industry is not new and has offered many people great benefits for many years. Some will tell you it is an “easy” way to make money but lets face it, most of those “easy” options never pan out if you don’t put in a lot of work to make them happen. I guess easy is often confused with simple. This is a business that is simple but it does require work. If you put forth the right effort and do it continually then you will see a return. If you think it will be easy enough that you can do it without talking to people and without spending much time then you are just fooling yourself and wasting time.
If you understand that running any kind of business takes real work and effort and you are willing to put in that time and hard work then you can see some results for your business. What I want to discuss here are some of the techniques you can use to help you in the mortgage notes business. Just keep in mind that the details I give here are not a guarantee to easy income. As you will see through reading this article real work done consistently is required in order to make this business pay off for you.
Let’s just look at some of the main techniques for finding notes to broker or buy:
* Let them come to you
* Market to those who hold notes
* Get involved at the inception of the note
These are the main approaches to find notes. If you want people to come to you then you will need to advertise in some way to let people know you are available. This can include creating ads in local newspapers like the free nickel type papers. It can include street signs or billboards in some areas depending on your budget and your local laws. You could advertise on the radio and even TV at times and of course you have the internet as an ever growing option. Each of these options will require time and testing to see what happens and most of them are fairly broad advertising to a general audience and waiting for responses. The internet will allow for more specific marketing if you can learn how to make it work but that of course will require some learning on your part from somebody who knows how to market online.
Marketing to existing note holders is the next approach. This is a more direct marketing approach, in fact it is actually referred to as direct marketing. It will generally require mailings to a list of note holders and follow up calls. Sometimes you will be able to get the phone number from your list. Typical public record lists contain phone numbers for 5%-10% of our lists depending on your criteria. Most of the data that comes from public record will not have phone numbers as part of the data and email is still not recorded in public record so you will never get email addresses for your note holders. Unfortunately “easy” generally means low results too so keep that in mind. If you did have emails for these people your results would be far lower than what you will see with more direct efforts like postcards and letters. Direct marketing will take time and numbers. It is not something that you can do easily or quickly but if you do it properly you will see the benefits from it as your business and your list grows. Market often and test different approaches in your mailings.
The last option is perhaps the best approach. This would be getting involved with the seller before the note is created. One of the obvious and huge benefits to this approach is that you will end up with an exclusive list of note holders. Well, almost exclusive. The data is still recorded but if you do things right and learn how to setup a proper contract and relationship from the start then you can have first rights to the note and you also will build a rapport with the seller which will make it easier for you to complete the deal when they are ready to sell. This approach is a more complicated approach to marketing your note business and you would need a proper guide to help you through it but it is a fantastic option.