Metro’s marketing and other Monster tales - Posted by John Behle
Posted by John Behle on March 22, 2000 at 24:46:27:
I’m surprised no one has asked something to the effect of “isn’t everyone terrified now that Metropolitan is going to market direct to the public?” What do we do? The sky is falling. Life as we know it will exist no more.
It will just weed out some of those who don’t know what they are doing when it comes to both finding and funding notes. Life is constantly changing and most any business is also. It’s not that it will specifically affect “note newbies” - it will affect strategy more than knowledge.
Even most “Experienced” note brokers are set in their ways. They may have ten years experience - but it is really one year’s experience repeated ten times over - and ten year old experience at that.
Goodbye to the strategy of find a pretty note and broker it to an institution? Maybe, maybe not - who cares. The institutions will never be seriously involved in the most profitable notes.
The niche markets will always exist. A creative broker who knows how to find notes and has set up some internal funding of their own or with private investors will always have a market.
One student a few years ago started having fabulous results with “Kirby” paper. One just called today yesterday that had run across a “window replacement” dealer that has turned down hundreds of thousands in potential paper deals because he didn’t know it was possible.
Swimming pools installers, rehabbers, roofing companies, plumbers, electricians, plastic surgeons, landscapers, and on and on and on. There are over a hundred sources of paper. Some are sources of existing paper that most don’t know about or follow up and others are ways to create or restructure paper.
The “Collateral Conversion” is a powerful technique. It can work with car dealers, contractors, mobile home dealers, RV dealers, boat paper, airplane paper, etc. I’ve talked about the “Collateral Conversion” technique in the past. We’ll search the archives to find some of those posts if you are interested in more details.
There will always be paper available to creative buyers.