Posted by Carol on April 05, 2000 at 15:09:41:
Posted by Carol on April 05, 2000 at 15:09:41:
First National’s BrokerLine™ - Posted by Jim-WI
Posted by Jim-WI on April 04, 2000 at 11:27:10:
Just wondering if anyone out there knows anything about FNAC’s Brokerline. Seemed to me like a source of funding for note deals to keep for your own portfolio. It also sounds like they will service the notes for you. Just looking for feedback on it.
Go forth and be prosperous!
I am in the middle of setting one up… - Posted by DanM(OR)
Posted by DanM(OR) on April 05, 2000 at 12:49:21:
now. It is fairly expensive to setup, but the very first note you buy can cover the 2% charge. I negotiated with my rep there, Mathew Adams, that they pre-approve me and start the account 60 days later. That way I don’t start paying interest on my line until I bring a deal in.
It seems expensive at first, but when you start to look at the positive cashflow and the cash you are giving up by brokering it really is a no brainer. Broker it to yourself!
Check out this example:
FMV = $50,000
I = 8%
115 = N
If I broker this to Metro or American note they will want about a 12 - 12.5% yield. I can’t even buy it cheap enough to sell it to them for this and make more than a couple hundred bucks on it.
I ran through FNACNA criteria(there are about 5 qualifiers) and they will fund about 94% of the face on this deal. $38,931.98
I will end up with $3,932 after paying the seller of the note. My positive cashflow will be $168/month. By the time my twelve months are up I can either renew my 12 month interest only deal with FNACNA or I can sell my well seasoned note.
A $100,000 line cost $2000 to setup. This can be divided up interest only with monthly payments that equal $166.67. My positive cashflow will cover this. The end result is almost 4000 in my pocket and a line setup for $100,000. If I find another note exactly like this than the $168/month goes to me.
I know this deal is kind of skinny but the place is worth about 50,000 and the credit on the payor is in the 700+ range.
It took this deal to wake me up to how bad we are killing the golden goose when we broker notes. My only quandry now is how big a line I should set-up with FNACNA. Once I set it up I am stuck for about 3 months. So what do you suggest? $100k? $500k? I guess it really depends on what you think you can do in three months.
Best of luck to you!
Re: First National’s BrokerLine™ - Posted by steph in tex
Posted by steph in tex on April 04, 2000 at 22:51:24:
In the process of signing up now.
They come HIGHLY recommended by Steve Cook- *last years
My contact is Rebecca Anderson
hope this helps
steph in tex
Sounds interesting, how do I get there? (nt) - Posted by Ben (NJ)
Posted by Ben (NJ) on April 04, 2000 at 20:32:59:
Re: First National’s BrokerLine™ - Posted by David P. Butler America’s Note Network
Posted by David P. Butler America’s Note Network on April 04, 2000 at 15:36:04:
We have had a lot of excellent broker experiences reported since FNAC first introduced the Brokerline program at out Cash Flow Convention in 1997, and it certainly is a viable option.
This is something which is very similar to warehouse lines of credit used by mortgage bankers and brokers.
FNAC does have some interesting articles on our website at www.notenetwork.com, or click on our banner above. In fact, we just posted a great article (“War Stories”) by Rebecca Anderson, a VP at FNAC in the first of the April issues of our free bimonthly Ezine.
You may want to visit our site and sign up for the free Ezine. It is sent out twice a month and features a number of relevant articles, tips, and information from many prominent folks in the private note industry.
Hope this helps, and happy hunting.
David P. Butler Vice President, Broker Relations
Re: First National’s BrokerLine™ - Posted by John Behle
Posted by John Behle on April 04, 2000 at 12:32:38:
All the feedback I have heard about it has been positive from those who use it. Some who don’t use it have feedback like it is too expensive. I pay attention to those that actually experience with something.
Nothing can be more expensive than a lost deal.
Web Address? - Posted by Jessyca Watson
Posted by Jessyca Watson on April 05, 2000 at 14:45:54:
Can I get the website address? This sounds like it may be something I would be interested in
Risk Vs Reward… - Posted by Michael Morrongiello
Posted by Michael Morrongiello on April 05, 2000 at 13:16:45:
This deal looks like it could be sold to me for around a 10.75% -11% yield and not the 12% you mentioned.
As for a funding amount of $38,931.98 being advanced, please realize that YOUR yield for purchasing 115 payments of $500.00 and obtaining that funding amount would represent a 8.69% return. You cannot Borrow funds that cheapley from FNAC?
You may want to consider “brokering” this note on through and making some cash profit today with limited risk along with learning while you are earning.
If you pledge this note on a line of credit then YOU are responsible for the funds you have borrowed.