Does selling notes really work? - Posted by Sandra

Posted by jerome on July 09, 2008 at 11:27:06:

Thanks for the advice. I found what I was looking for

Does selling notes really work? - Posted by Sandra

Posted by Sandra on June 12, 2007 at 20:41:02:

I have heard quite a bit about selling notes. I don’t really get it and to be honest I am really skeptical that it works in the amount of time that most courses advertise that you will make money. They make it seem as if there is really no work involved. It’s hard to believe that if so much money can be made from it. If some one is actually doing this and is not trying to sell a course, please give me the real scoop on selling notes and what courses you recommend. Thanks

Re: Does selling notes really work? - Posted by Sailor

Posted by Sailor on June 13, 2007 at 15:18:23:

I have only sold one note, & that was back to the buyer of one of my houses. However, I have bought some notes, so clearly it has worked for those from whom I bought. I think note buying is lovely passive income, & so do other buyers. That means there is definitely a mkt for selling.

I do think there is work involved, though, because not only do you have to get yourself educated, but establish & maintain relationships w/either note buyers or sellers. This is a biz that, perhaps more than some others, relies on relationships & reputation. Those things require upkeep.

Tye

Re: Making It Work! - Posted by David Butler

Posted by David Butler on June 13, 2007 at 12:28:00:

Hello Sandra,

The good news for you is that you have already come to some common sense conclusions before you even started asking the important questions. That is a very good start!

Selling notes does really work, but it is only one of three ways to profit from the private cash flow industry. The other two include:

  1. acting as an Introducing Party [not an agent for] between a note seller and a note buyer. This is basically making a profit as a note finder, by selling good information you have developed about a given note to a note buyer for a finder fee to be paid if the buyer actually closes the deal for the purchase of that note.

  2. purchasing notes at a discount to hold for your own investment.

As you have surmised, there is no secret formula for success in the note business - nor is it a “road to riches” for a great many people.

How fast you begin making money in the note business is based on several factors - including marketing effort, some basic knowledge of the private cash flow industry, and just plain LUCK. The luck comes in the form of finding a motivated note holder, holding a viable note, at the time that whatever marketing method(s) you are using, is/are in play. As you gain time and experience in the industry, “Luck” becomes less of a factor proportionately.

As you have also correctly determined, there is much work to do in order to succeed at making money from any of the several note activities you might pursue. The attraction for those who stay with it is that the work does not seem that much like work to them, and they are otherwise enjoying the aspects of a work-from-home business opportunity that so many find appealing in the first place. But you are absolutely correct in assuming that not too many people make a whole lot of money from it - though a small percentage of folks do tremendously well. Many others make a satisfactory living from it, and many more just make what might be considered as “pin money” or spare income.

Unfortunately, probably 99% of all aspirants fail to have any success whatsover, primarily for the reasons discussed in the several threads given below.

The Forum here already contains a mountain of information regarding “recommendations”, and allows you to use several key ingredients to help you determine for yourself whether or not the business may even be suitable for you! First is the ability and patience to conduct some fairly easy research. Second is the initiative to actually do it. Third is contemplating it. Fourth is making a decision about what to do with it, so far as it pertains to you.

A good starting point may be the road map I posted a few months ago at CREO’s Cash Flow Forum, in reply to the inquiry “About a cash flow system, not wanting to be duped.”

"Focus on Learning First - Not Systems"
http://www.creonline.com/cashflow/wwwboard3/messages/22471.ht

This discussion tells you how to go about intelligently exploring the cash flow business for minimum cost, and maximum effect.

Given the import, and implications for the thousands of aspiring note broker/finders who continue to be misled by the current climate in the note education industry, it will do you a tremendous amount of good to read the very interesting post Matthew Kominiak made several weeks ago here in CREO’s Cash Flow Forum at:

"17,775,369 Reasons To Look BEFOREâ?¦"
http://www.creonline.com/cashflow/wwwboard3/messages/22706.html

as well as the FTC News Release that Matt provided the link for, in that post. This News Release offers a virtual road map for avoiding the many land mines that exist in the note “education” field.

Good Hunting, and…

Have Fun For A Living

David P. Butler