Details - Posted by John Behle
Posted by John Behle on October 31, 1998 at 11:17:52:
There are very detailed answers in this forum! There hasn’t been a question on funding sources until yours.
In addition to the Noteworthy site Bud shared, there are listings of investors Nationwide and State by State in the directory at www.notenetwork.com .
Most questions regarding financing notes have had to do with working with private investors, which is an alternative to working with institutions. My focus in investing has always been to work with private investors. When I started, there were no Institutions buying notes nationally and only a couple buying locally in my state. The two local institutions were thrift and loans and were the only thrifts to survive our thrift and loan crash - because of their paper portfolio that gave them stability and liquidity.
When I started, I brokered a few notes at first. Even those notes were brokered to investors with either an option to buy them back or a joint venture agreement. I entered into paper investment as a way to enhance and turbocharge my real estate investment. I always saw the profitability of owning the notes and never viewed the industry as the “job” of brokering notes for a commission. I therefore learned how to cultivate and work with private investors.
The greatest profits are in owning the notes. I may make ten to twenty times the profit in owning the note as a broker might make in a commission on the same note. I believe beginning “investors” ought to broker a few notes at first, while they learn the business - but the ultimate goal should be building their own portfolio. It isn’t hard, it is just little known and generally not taught in the “seminar mills”.
There is an article about financing paper in this section that helps describe the process with an emphasis on working with private financing.