Posted by John Behle on October 13, 1998 at 11:14:18:
In answer to your question, yes it is possible to totally do a note deal without leaving your kitchen table. I am a total believer in usuing technology and resources to minimize the time invested.
I am also a believer in the personal approach and dealing with motivated sellers. The greatest profits and success I find is one on one making deals with motivated sellers. There are others out there that do a great deal of telemarketing, research, etc.
There is an article in the “how to” section by Jon Richards on finding notes through telemarketing. If Jon says it works well for him, I would believe him.
My strategy is a little different. I’d just as well do an extremely profitable deal on a note no one else knows about or has any interest in. I have no great interest in the feeding frenzy that goes on in the more general market place of notes. I’d rather make $10,000 on a great deal than $1,000 on a good deal - and have to do ten of them to equal the same amount of profit.
Let’s look at some figures. 100 people take back notes. How many want to sell? How many NEED to sell? How many need to sell now? How many need to sell now and will be reasonable?
There are no real statistics I know of, but my guess would be that only 5 of the 100 might have a real need or desire to sell their note. Maybe only one is reasonable and motivated. I want to zero in on that one deal - not sift through 100 to get to it. In my market place, while others are “sifting”, I’m buying. By the time most others get to the one - I bought it.
For an analogy, I look at notes the way I look at real estate. If I wanted to buy a nice piece of real estate, I wouldn’t start knocking on my neighbors doors or start calling a list of people that own real estate. First, I want to deal with those that want or need to sell. Then I want to find the “don’t wanter”. It’s the same process with notes.
So, with notes I don’t mess around researching, mailing out to lists, etc. I use effective advertising and marketing methods (much cheaper too!) to zero in on deals.