Posted by John Behle on April 07, 1999 at 14:58:13:
My opinion is it is not too complex. People understand paper less than general real estate, but it is not more risky, technical or complex.
Like most people, I just started buying and selling notes. The average commission on a note for me was $1300 and I did an average of one note per week part time.
Most people never leave the realm of “Brokering” or “Flipping” notes and articles like the “Three Steps to Wealth” are geared to show people the upside potential.
That doesn’t mean that is where you start tomorrow, but it also doesn’t have to take years to realize the upside. It is a matter of direction, focus and knowledge of the basics. Much of that can be learned safely with “On the Job Training” - learn while you earn.
Someone can start out flipping or brokering notes safely and simply. As they learn more of the details and basics, they can look at buying for their own portfolio or working with private investors.
I emphasize the upside areas like buying for your own portolio and improving notes because there are ten times the profit there and most people don’t even know it exists. They made have had a very remedial education (even if it cost thousands) that did not include enough information or the accurate information that is needed to be successful in the note business. For example, when it comes to finding notes, they are taught the baloney about going to the County Recorder’s office. Realities are very, very few people have had any substantial success using that approach. Most that talk about or teach that approach either don’t know any better (because of lack of any real experience in the business) or teach it because it sounds good or “sells” good.
That is compounded by the fact that there are now thousands out there trying to flip notes stumbling across each other and running up prices. Yet the same potential exists that always has - in fact, it has increased. The “flippers” out there can become your employees bringing you the notes. In particular the notes that others do not see the potential of. It’s like people are out looking for gold and stumbling across diamonds - not knowing what to do with them. Sometimes it’s just a matter of brushing the dirt off and collecting the profit.
Anyway, that’s my 2 cents worth.