What are the questions noteholders ask?
“I saw your ad. What do you mean you buy mortgages?” Your best strategy is to ignore the question and ask one of your own: “Are you receiving payments on a mortgage now?” Otherwise, you may find yourself explaining mortgage investments to someone who is simply curious. Don´t waste your time with people who don´t have notes for sale.
“What do you pay for mortgages?” Again, don´t waste your time. Make sure they understand that you are only interested in beginning a conversation if they have a mortgage to sell. Ask, “are you receiving payments on a mortgage now?” It´s amazing how many people think they can sell a mortgage they´re paying on! If they say yes, the answer to the question of what you pay is, “it depends,” and you then proceed to ask them the questions from the intake sheet.
“How much of a discount will I have to take?” “As little as possible. Each note is different.” Then ask your questions.
“How long does it take before I get my money?” “Once you furnish me with all the documents I need, the process will take a few weeks.” (It may not, but you now have the time if you need it).
“Why does it take so long?” “The title search and appraisal are what takes the longest, and we have no control over those. It may very well be shorter.”
“Are there any points or fees I´ll have to pay?” “No, there are no points, and we´ll pay all the closing costs.” (Of course, you pencil in those costs when you quote the note.)
“What documents do you need?” “Not many, really. I´ll go over that with you when we meet to complete our agreement to buy the note. Would 3 o´clock this afternoon be all right, or would 7 o´clock tonight be better?” (Note that you give them an “A” or “B” choice, not a “yes” or “no” one.) “What if I can´t find all the documents?”
“The original note is the most important one. The others are either recorded at the county courthouse or on file with the title company or lawyer who handled the property settlement.”
“Can I use my own lawyer?” “I would insist on it. I strongly encourage you to have your lawyer review everything in advance. Of course, I can´t pay your lawyer´s fee, that´s your responsibility.” A note seller who asks this question is afraid you´re going to take advantage of him. The best way to dispel this is to do what he doesn´t expect — insist he consult his lawyer before he acts. “Whosoever shall compel thee to go a mile, go with him two miles.” (Matthew 5:41) “
