Question for John Behle and other paper experts. - Posted by MASTER NUMBER

Posted by John Behle on October 13, 1998 at 11:14:18:

In answer to your question, yes it is possible to totally do a note deal without leaving your kitchen table. I am a total believer in usuing technology and resources to minimize the time invested.

I am also a believer in the personal approach and dealing with motivated sellers. The greatest profits and success I find is one on one making deals with motivated sellers. There are others out there that do a great deal of telemarketing, research, etc.

There is an article in the “how to” section by Jon Richards on finding notes through telemarketing. If Jon says it works well for him, I would believe him.

My strategy is a little different. I’d just as well do an extremely profitable deal on a note no one else knows about or has any interest in. I have no great interest in the feeding frenzy that goes on in the more general market place of notes. I’d rather make $10,000 on a great deal than $1,000 on a good deal - and have to do ten of them to equal the same amount of profit.

Let’s look at some figures. 100 people take back notes. How many want to sell? How many NEED to sell? How many need to sell now? How many need to sell now and will be reasonable?

There are no real statistics I know of, but my guess would be that only 5 of the 100 might have a real need or desire to sell their note. Maybe only one is reasonable and motivated. I want to zero in on that one deal - not sift through 100 to get to it. In my market place, while others are “sifting”, I’m buying. By the time most others get to the one - I bought it.

For an analogy, I look at notes the way I look at real estate. If I wanted to buy a nice piece of real estate, I wouldn’t start knocking on my neighbors doors or start calling a list of people that own real estate. First, I want to deal with those that want or need to sell. Then I want to find the “don’t wanter”. It’s the same process with notes.

So, with notes I don’t mess around researching, mailing out to lists, etc. I use effective advertising and marketing methods (much cheaper too!) to zero in on deals.

Question for John Behle and other paper experts. - Posted by MASTER NUMBER

Posted by MASTER NUMBER on October 13, 1998 at 09:36:20:

Is it standard practise to consumate paper transactions-the buying and selling of notes-via telemarketing? I.E.Is it feasible for an investor/broker of discounted cash flows to prospect,locate and sell the note holder and even receive payment via checks in the mailbox from private or intstitutional note buyers by the effective use of the telephone? In other words, can telemarketing,direct mail and a fax machine create an income stream for the broker/investor without having to,personally,meet the other essential players in this type of transaction? and John, if so, do you have any material available that teaches how this can be accomplishe? R.S.V.P When you can. MASTER NUMBER

Of course its possible - Posted by Bud Branstetter

Posted by Bud Branstetter on October 13, 1998 at 12:41:24:

Of course it is possible. Most buyers of notes do so through telemarketing or brokers. The people at Associates or Metropolitan never actually see the property, the seller or the broker. Those that are fortunate enough to have the knowledge and resources can deal for themselves. Many others have to resell.

The question becomes is that income stream great enough to totally support your life style. The figures are 2% survival rate and about 5 years to get the business really going. One of the most important factors in todays enviroment is marketing. The better you are at it the more successful you will be at it.

Now for a couple examples. I recently finished a deal in Cleveland, Ohio. Through a contact from CREOL a note deal started that ended as a purchase and sale. I never visited the house, met the buyer, seller or the contact. I then sold the first lien note in a simulataneous closing and have a $9,700 second for my own portfolio. Better yet I feel a made several new friends.

This spring I bought a house in San Antonio from a gentleman in West Viginia and sold it to someone I have never met. I did visit the house once before it was contracted and once after it was rennovated. I ended up using my money for one week because of the title company. The sales price was over double the purchase price.

Knowing something about buying and selling notes is another arrow in the quiver of a real estate investor.