Does anyone know? - Posted by PBoone


#1

Posted by John Behle on December 23, 1998 at 14:01:59:

With all the seminar mills and the focus on brokering notes, the industry has become full of “Bird dogs”. It grows year by year and becomes more frustrating.

Some continue their education and treat it as a profession, but most fumble around and then quit. The un-pleasant part is that in their fumbling, people end up very dissappointed or worse.

They are sold on having a huge list of investors. Some are not very active or even real. Others can be slow and not follow through well. The real investors on the list can get frustrated dealing with the “flippers” and their lack of expertise. Some then pay less attention or don’t even work with them.

The “Flippers” tend to over-promise and under-negotiate a deal. The funding sources then are left with a deal they cannot make because of the prices that were quoted (under-negotiation). Potential note sellers sometimes pass up a real buyer for a better price from an over-zealous, under-trained flipper.

The term I coined a few years back is the “Broker Broker” syndrome. They make themselves out to be brokers, buyers or even funding sources when they have absolutely no capital or capacity to close the deal.

Even some of the so-called funding sources are nothing more than brokers.

How do you tell the difference? Go ahead and ask them how long they have been in the business - personally, not their mentor, not their funding source or next door neighbor - THEM. Ask how they learned about the business, what funding resources they have and whether they have their own capital to fund deals. Those may seem like intrusive questions, but any real player will understand. Explain why you are asking if you need to.

How long does it take them to close a deal? If they make you an offer is it firm? Read their contracts carefully. Is it just an option? With an easy out for them? Are they looking to flip or assign the note? Are they willing to put up earnest money? All of these things can be a tip off. Not to say that others don’t assign, broker or option notes. I very rarely give over $100 earnest money, but there is no question to them that I am legitimate.

You can also check out a broker at the county recorder’s office. You can look under their own or company’s name and look at transactions.

Most note buyers and brokers do not loan against notes. They buy or broker only. Funding sources to buy and keep paper are totally different than funding sources to broker paper.


#2

Does anyone know? - Posted by PBoone

Posted by PBoone on December 21, 1998 at 10:22:43:

Hello all,
I have tried spent time looking for actual purchasers of notes in the Portland OR metro with no avail. It seems to me at this point that there are a LOT of brokers but no investors. Does anyone have contacts in this area?
I have tried newspapers, Phone book, Investors clubs. What am I not seeing. Are there other places to look.
Pat


#3

Re: Does anyone know? - Posted by Bud Branstetter

Posted by Bud Branstetter on December 23, 1998 at 10:21:05:

You say “actual purchasers of notes in the Portland OR metro”. Are you looking for purchasers in the Portland area. Or someone that will purchase notes on real estate in the Portland area. Most any of the institutional buyers will buy there. They don’t have to be located there.


#4

Re: Does anyone know? - Posted by John Behle

Posted by John Behle on December 21, 1998 at 13:05:40:

One of the best resources in the Northwest is Lorelei Stevens at Wall Street Brokers. Few people have been at the note business longer or have more experience.

Check out www.wallstreetbrokers.com


#5

Re: Does anyone know? - Posted by Ron Allison

Posted by Ron Allison on December 23, 1998 at 19:34:37:

I’m a private investor that invests in paper; we also make hard money loans. We are located in the Seattle area, and would be interested in seeing what you have.


#6

Re: Does anyone know? - Posted by PBoone

Posted by PBoone on December 23, 1998 at 10:48:34:

Bud,
I have had the good fortune of finding a few notes in this area. My intention was to purchase then resell for a profit. The people listed as so called note buyers turned out to be brokers. As liitle as I know about the note business it is frustrating talking to yes people. Yes I can do it then poor or no follow through. Is this common? Maybe I should see it as an indicator of local competition.
Pat


#7

Re: Does anyone know? - Posted by Marvin Seawood

Posted by Marvin Seawood on December 23, 1998 at 24:02:41:

How to get the license Lorelei has… teaching
continuing education class to real estate agents.