Lisa has been a real estate investor since 1978, a note investor since 1988, and is a nationally-known marketing expert. She has consulted for some of the nation’s top financial services industries in the private mortgage, business loans, and Individual Retirement Plan arena.
Lisa, you travel probably more than anyone I know. How is the current real estate market affecting the note business around the country?
The current real estate market is unsettled to say the least. The banks are being stingy with lending guidelines. More and more they are turning down good borrowers, even at the closing table. A deal that gets lost and back on the market is a motivated one. Once back on the market, the seller is more desperate then ever.
If the note broker did their marketing, the next call from a real estate agent or seller will be to the broker who can solve their problem. I have had the opportunity recently to pick up a couple of good opportunities in situations just like this. The deal fell through at the closing table and the seller became desperate.
What are you hearing about the state of the note business today?
The word on the street is that the note business isn’t what it used to be. Part of the reason for this is the funding sources that are available to brokers, part of it is the lack of professionalism on the note broker’s part to do what is necessary to get the deal funded and closed. That said, there are still many note brokers making a living brokering notes to either private investors or true funding sources. (for a list of current funding sources available see THE PAPER SOURCE REGISTRY OF NOTE INVESTORS
Is this a good time to be a note investor or broker?
I believe now is a good time to be a note investor or broker. As an investor, I have worked with real estate investors buying paper from those who bought, fixed and resold on contract or created a note and deed of trust. I will discuss this strategy in detail at The Paper Source Note Symposium including a systematic checklist that brokers can use to help them develop relationships with the real estate investor community.
Think about it. Real estate investors have a hard enough time getting a loan generally. Many investors are buying property wholesale through private funds, fixing up and reselling on a note and deed to an end user. Imagine if we can come in and buy paper they create (and broker that paper if we elect not to keep it)!
What are the major marketing mistakes you see note brokers and investors making?
To me, our business is about building relationships. There are many ways to market, but I believe that we are in the people business and that sellers want to do business with brokers they trust. People skills are important to success as a note broker.
The major marketing mistakes I see people making are: 1) not being prepared; 2) not understanding the paperwork; 3) not being properly licensed in states where a license is required; 4) not asking the right questions; 5) not understanding or factoring hard costs associated with brokering the transaction or acquiring a note.
That is why I am excited to be a part of The Paper Source Note Symposium. I plan on covering the following.
1. The variety of ways note brokers can work with real estate investors, contractors, developers and landlords to buy paper they create. I’ll show case studies of deals I have done over the past 6 months. Seasoning versus new notes will also be covered as most funding sources require seasoning.
2. How to make a powerful presentation to real estate professionals. I’ll explain the top 3 tips to be successful no matter whether you speak to one person or 100.
3. Building credible marketing pieces that make sense and answer questions for any potential seller.
4. How to ask questions, build rapport and trust with the note seller.
5. A workable plan of action to help new note brokers and investors get up and running.
I hope to see old friends and make new ones at The Paper Source Note Symposium!
Lisa will join other note experts Jeff Armstrong, Kent Anderson, Dave Krunic, Simon White and W. J. Mencarow for a brand-new, never-before-offered event, The Paper Source Note Symposium: Finding Notes & Marketing Your Cash Flow Business — and you’re invited! It’ll be held April 28 – May 1 in Las Vegas.
REGISTER BY THIS TUESDAY, FEB. 1 AND SAVE $300.00 (just $695.00). Plus, you’ll get ONE-ON-ONE consulting with the teachers! Registration includes a free new subscription or renewal to THE PAPER SOURCE JOURNAL ($79.00 value) and THE PAPER SOURCE REGISTRY OF NOTE INVESTORS. Visit www.PaperSourceSeminars.com for details and to register.
