I received a question the other day that I felt was worth answering to everybody. I think the information provided will be helpful for all working the note business.

Q.I was given the name of your comapny by Donna Bauer as a source for leads, you say you have worked this for man years in your opinion what have you seento be the most
effective way to market the leads to be successful

A.The most important thing I have seen over the years to be valuable for an effective note business is repeat marketing. You need to continually market to your list on a quarterly basis. Here are a few tips to follow:

• Be sure to create some kind of logo or simple image that will be recognized on each of your mail pieces. This will help the note holder feel like they know you as they see more of your mailings with that same marking.
• Clean your list. As you mail to your note holders you will have some mail pieces come back undeliverable. Remove those items from your list so you do not mail to them again the next time you mail out.
• Build your list each time. You should add more leads to your list each time you mail so your list is always growing with new leads.

Any kind of marketing is a numbers game and this business is no different. Ultimately, the most important thing to make sure you are successful is to communicate well on the phone when the note holder calls you back. You need to find their needs and help them achieve what they need.

I see real estate for sell by owner every single day all over the country. It is certain that there is not a slow down of seller financing and more likely in fact that there is more of it happening? The economy and the games played by the banks are causing this trend in seller financing. If you know where to look and how to look at things there is always a silver lining and for us in this industry that sliver lining is more seller financing and a need for more seller financing.

How can you benefit from this trend?

First make sure you are still marketing to your list. Let the note holders on your list know that you are still around and very active in your business and present yourself in a professional manner.

Continue to network with local professionals and build your referral pipeline. this is one of the best ways to build your note business. Make sure you are taking every opportunity to let others know what you can offer.

Invest yourself. Did you know that you can use your IRA or a 401K from a previous employer to invest in real estate notes for yourself? It is safer for you than the stock market as many are finding out and more and more people are making the switch to invest in real estate now days. One of the safest investments in real estate is real estate paper and if you have money in your IRA you can invest with no costs and grow your nest egg better than ever before.

If you are interested in learning more about how to use your IRA to invest in notes email me and i’ll introduce you to somebody who can give you the guidance you need.

I often get asked by new brokers what date ranges are best for the note business. The answer is not so much a blanket answer for every one as it is specific to your business and expectations. For most the answer is going to be the same. Work with leads that are not older than 3 years. This allows you to find notes that may have some seasoning while giving you some work to start on. In truth the answer varies based on a few questions you must first ask yourself;

• Are you in this business for the long run or just “trying it out”?
• Are you looking to buy notes or broker them?
• Are you an experienced investor or broker?
• Are you looking for notes with extreme seasoning?
• Are you willing to receive fewer calls to find god seasoned notes?

These and perhaps a few other questions must be seriously thought of before you decide what age of leads you need to deal with. If you are brand new to the business and if you are anxious to start making money and unsure how it will work for you then you need to start with newer leads to get more calls. This will allow you to get some practice talking to note holders and allow you to ease into the business. You will have more potential deals when the leads are slightly newer. One of the things you need to accept as you start this business is that you are working a numbers game. You must be willing to play the numbers. If you do then you will see great results long term. If you are not willing to stick in the game when things don’t work out well in the short term then you need to grow a bit before this business will be right for you.


If you are an experienced broker or investor and want to find some good seasoned notes then working with leads that are older than 2 years may work of you. You should have the patience needed to wait for the note holders to call. You should have experience with the business and with marketing to be able to get the note holders to call. You will also realize that you will have fewer people contact you from these older leads. many addresses will be different from changes and moves over the years and many of the notes will already be gone. those few calls you do get may be great opportunities but you will need to send out more marketing pieces to make sure you have the numbers to make this work.

So, in conclusion, for most of you starting the business you need to work with leads that are not older than 3 years and plan on marketing to several thousand people before seeing a lot happen with the business. It takes time and serious effort to make the note business work for you.

I am still seeing advertisements for seller financing and owner financing every day. It is very much alive and for many sellers the best way to get their property sold. This business is alive and well and if you do things right you can make a lot of money with private mortgage notes. I just want to take a moment and revisit the different options for marketing your business. I’m still amazed and I’ll admit it a bit annoyed that many still think there is some sort of “secret” out there that will make them rich. Well, there certainly is a secret. It’s called work.

There are some techniques that perhaps you are missing in your business but most often the only reason for failing in business is because the work is not done continually with the technique applied. The reason for failure is not the technique itself but rather the lack of application or improper application. There is very little in any business that requires only a small one time application. Most marketing requires consistent effort . Let’s discuss some of the main marketing approaches again.

•  Direct Marketing -Marketing direct to note holders is still a favorite for many. Often this is simply because some people are more comfortable when they don’t have to talk to prospects. This happens a lot when somebody is new to the business and perhaps not a real people person. To that individual I say, great starting option but plan on stretching your comfort zone. The other reason direct mail is used is because that way you don’t have to waste time talking to people who are not interested. You only talk to those who express some interest. This can be a great time saver to allow you to put time into other aspects of your business.
• Referral Marketing -Referral marketing is a very valuable option for any business but can be especially effective with the mortgage notes business. This technique will require years of building a pipeline to be effective for you but as you continue contacting your referring professionals and you take care of their customers you will develop a lifelong resource for notes. This is one of those things you should put time into while working on the direct mail approach.
• FSBO -Help Create Notes -Perhaps one of the best options for working the mortgage notes business is to get involved up front. Find the sellers who are offering seller financing or who may benefit from offering seller financing and help them create the perfect note. If you have been in this business any amount of time and have talked to some note sellers you know how many junk notes there are out there. If you work with the property seller right from the start you have a much better chance of having a note that will interest an investor.
• Classified Ads -Another option is to create ads that will bring in potential deals. This option to marketing can actually be used in a number of different ways. You can place an add indicating that you are willing to buy seller finance notes. You can place an add indicating you have notes to sell to find local investors. You can place an add to let FSBO sellers know that you can help them sell their home. You can even look through the ads that are posted to find others listing notes they want to sell or to find home sellers you can contact to help sell with a note.

find out what option works best for you and be persistent in applying it. Test different things. Try different ads and text to see if one thing changes your results and most of all remember that more than anything it is a numbers game. This is not a business you can “try”. You either do what it takes or you are not in business.

I have often been asked what services I suggest for postcard printing and mailing. There are a lot of options out there and a lot of companies who will do these services for you. Not all are created equal however. I have done a lot of research on this topic and searched to find the best companies I can for such services. I would recommend that you work with a company who can do both the printing and mailing of the postcards for you. One great option is PSPrint and you can get 40% Off Postcards through them with this link. they can print 1000 cards for you for as little as $120.

The mailing costs from these companies are often lower than your cost would be to put your own stamp on it. You really can’t beat it.

Another option is The Loan Marketer. They are a little higher price but offer some great templates already that will work great including the following example:

These are two quality companies I know who will get the job done.

Another great one is PGPrint. They also have some great opportunities available. See the deals PGprint.com is offering this month!

I’m often surprised by the options available to us from the many different networking opportunities we have at our fingertips today. With technology like it is we are able to network with people all around the world in seconds. It is truly amazing and it can be very lucrative for you if you have the right mind set. Mortgage notes can be found through a little bit of networking through online classifieds for example. You can create your own listing on many free websites these days and you can also search through listings that others post to find options that can mean money for you.

• Post an add offering to buy Private notes
• Contact private sellers who offer seller finance
• Promote your website
• Post an add offering to assist FDBO sellers
• Contact FSBO ads to discuss the option of seller financing

The bottom line is there are options all around you and you only need to be open to them. If you focus only on the stresses and worries of life then you will find it difficult to be creative and think outside the box. Do more to find solutions. Close your eyes and calm your mind when a stressful problem comes about and then with a clear head think about creative options that might help you find solutions. In business this is often called creative thinking or “thinking outside the box”. It is a must for any successful entrepreneur.

I decided to create a new series of articles today that will cover more details of the steps and resources needed to work the mortgage notes business. There are some great opportunities that some of you may be missing simply because you are not looking for them. I took two approaches to the articles and will update them more as time goes on. I decided to create some details for those just starting the business to once again clarify some basic steps and ideas needed. I then took some time to discuss options for investors who are buying or who want to start buying notes.

One of my recent articles discussing these points will soon be placed on some online article sites and some of the others are available on my articles page found here. I hope you enjoy the mew material and please let me know if there is a topic you desire more information on. I would be happy to provide more details.

One of the hardest things for most people who start their own business is getting motivated or staying motivated in the face of new challenges. I have coached people to start their own business in real estate, notes and other endeavors for years and the only thing I have ever seen that can defeat any of them is fear. If you do not know how to react to the challenges that come your way and if you let fear take hold then you lose confidence and everything looks ten times harder than it is.

I have struggled to get this point across to so many individuals over the year and with many I succeed. With some the fear is just too much and they succumb to it and give up. Running your own business is not easy. There are no easy answers. If you have watched the news or paid attention to the note industry this past year then you may know that one of the big infomercial names of the industry has been taken down for suggesting that this business is “easy”. It simply is not and if you expect to succeed you have to first accept that anything worth it is going to take effort. In the coming days and weeks I intend to put more information out about the need for a winning attitude in order to succeed. I will work to add many posts with details to assist you through the tough times of starting a business and I will work to give good insights that will help with having a winning attitude.

I will also work to update and add to my articles page. I will provide new content and update those articles that have been written about marketing the note business. Keep an eye on the site and feel free to let me know if you have some specific questions or things that you struggle with. I’d be glad to give insights as best I can to help you overcome the challenges you see in your business.

Mike@NoteDocs.com

Is it a good time to invest in mortgage notes? There is so much talk about a bad economy and job loss and many feel a feeling of “doom and gloom”. Some might be led to think that this is not a good time to begin your own business. This mentality could not be farther from the truth. This is a great time for people to start their own business. The problem with starting your own business is not timing but attitude. I don’t mean that in the strictly Negative vs Positive way. What I mean is that we are all conditioned right now to be followers and workers and not leaders and thinkers.

It is a great time to work the note business because of the problems in the economy. With the issues we have seen in the banking industry there has been an increase in seller financing to help get deals closed. There are more investors closing deals with owner financing. There are more sellers being open to the idea of holding a mortgage note in order to sell a property. It is precisely what we need at this time in our history. We need a change that puts more power in the individuals rather than large institutions that are often corrupt.

This change in our economy means that as note brokers and investors there are many more opportunities. The notes are there. There is an increases rather than a decrease but you have to be prepared to do what is necessary to make the business successful for you. If you are starting this business with hopes of a change that is needed in your life then it is important that you keep in mind that the change has to come from within. It is not the business that will return to you what you want but rather you who will cause the business to grow and thus give you the return you are looking for.

I have written many articles on these topics for understanding how to run a business and how to market this business specifically. Be sure and review these articles for further insight and create the attitude that helps you become the business owner you want to be.