You are right on the mark with your observations. And Realtors can be excellent referral targets, if you plan it correctly. The trick is not to get bogged down trying “educate” Realtors as a whole group, especially when you are just starting out. A lot of note brokers never make it to the second year, because they burned themselves out trying to train the untrainable.
It’s not the agents’ fault - it’s the demographics of the industry itself. But the reality is, there are more than enough Realtors to go around - what you want, and need, to do, is quickly determine who are the ones likely to do you any good, and focus on them.
If you can get to the point where you have 10 Realtors in your area, each sending you only one deal per year, you will have a strong foundation for your note business.
Feel free to contact me at dbutler@notenetwork.com if you would like some more detailed discussion on the subject, and visit our site by clicking on our banner up above here (America’s Note Network - not American Note, by the way!)
Hope this helps and best of luck!
David P. Butler
Vice President, Broker Relations
AMERICA’S NOTE NETWORK dbutler@notenetwork.com
888/499-7064
On the theme of John Behle stating that realtors are still your best assets for referrals and reoccuring business I was wondering if anyone has done this. (maybe they are and I just don’t know it yet!!) Is anyone doing presentations to realtors and flat out asking for the realtor to list possible owner financing in each deal. You rarely see owner financing offered, yet it seems that it would allow that home to sell faster even when paying RE commissions. What I’m getting at is that any home that offers owner financing will demand a higher value and should more than offset the discount taken when the note is sold. It seems that you could develop a steady stream of business setting up " simultaneous" type closings for homesellers. I know Jon Richards sells a manual and software program called “working with realtors” that seems to advocate doing just this. Anyways, if someone thinks this is a viable idea let me know. Is this a good niche for a beginning note broker to go after.
Boys and Girls - These are professionals - Don’t try this at home! - Posted by John Behle
Posted by John Behle on March 03, 2000 at 13:10:41:
When I say I educate agents, the primary focus is on some concept of “What’s possible” - not how to do it. Many don’t care, many wouldn’t get it and most of them should not attempt it.
I clearly get the point across that paper is a powerful tool - and that they NEED my services, skills and knowledge.
As they say in the TV shows:
“Boys and Girls - These are professionals - Don’t try this at home!”
Posted by John Behle on March 03, 2000 at 13:05:16:
I work with agents in a number of ways. The easiest being a fax broadcast that mentions we buy notes, help out on hard to finance deals and solve financing problems.
Presentations to agents is a powerful technique. I teach them how to create paper and close more transactions just as you suggested. I teach them that I am an outlet for those notes.
Agents are not extremely open at times to information outside their normal channels. In particular, some only pay attention to education that satisfies their “Continuing Education” requirement. For this reason we put together a continuing ed. approved course.
They pay me to learn more about notes. There are many previous posts and some articles I’ve written about the subject over at my website.
The articles to read first are “Cashing in on Continuing Education”, “Paper, your most valuable tool” and “Be the Paper Pro”
Realtors can be an excellent source of business both for newly created notes and for existing notes that they are aware of from some of their previous clients and /or buyers that approach them and are holding paper.
As stated, Keep the message simple to them. Remember the KISS mehtod. You should emphasize (2) major points:
If they are aware of anyone holding a mortgage either is the state they work in or somewhere else. You can provide cash liqiuidity to that party. Benefit to Realtor: These buyers now have more cash to put down or work with locally to buy a home.
You are not a panacea for all of their financing needs. However you many times can assist them in closing a good 6 or more deals a year. If a deal falls apart because the buyers simply cannot get approved, the property is non conforming, etc. You can help if there is sufficient motivation and flexibilty on behalf of the seller. Benefit: closings happen that otherwise would not happen.