Everyone has seen the late night infomercials on about every cable news channel. The makers of these so-called get rich in the note-brokering markets offers the purchaser of their product dreams of riches with little or no effort on their part. “Just simply buy our course and be on your way to living a financially independent lifestyle.” This is the famous tag line that these infomercials use to trap those who are looking to get ahead into buying their product. As a Master Note Broker for some years now I can assure you this is the furthest thing from the truth.
Note Brokering is a highly competitive field as well as a field in which you must first know the local finance laws of your state. In many states you must be registered with the Department of Securities as a Business Broker. I know these infomercials do not tell you that this can cost up to $1,000 when you buy their product. The next thing you are not aware of when you buy these products is that what they give you for your hundred or two hundred dollars is just a basic overview of the industry. You will nine times out of ten be sold on the idea of going to one of their $5,000 dollar seminars to get advanced training. The promoters of these products claim it is just a small investment in what will turn out to be a huge money making business opportunity. “Don’t buy into that non-sense!” There are many outlets available through your local library that will help you get the overview of the business for free. Many books have been written on the subject of Note Brokering, use these resources first and save yourself hundreds of dollars on materials or courses that are not worth a dime to you.
Once you determine that this business is for you then it’s time to get with a Master Note Broker who will help you get your foot into the door. A mentor will help educate you in particular areas of the business, these mentors are critical for your success. Once you have the guidance of a Master Broker you need to get out there and Network with those who will be vital to your success. Real Estate Agents, Business Brokers, Real Estate Brokers will be vital to your success in the Note Brokering field. When you first start out in the business more then likely you’ll be working with 1st tier mortgage notes. These are notes that are held by an owner of the property who wishes to seller finance a transaction. Without a broad network you will find it hard to find the notes you are looking for.
Lastly it is recommended that you study marketing. In order to bring notes to your attention the broker must advertise his or her business effectively. “You have a service someone needs.” This must be central to any advertising campaign and you must convey to a potential note holder why they should use your service. There are thousands of brokers in the United States today- You as a Note Broker must convey to holders of an financial instrument why they should use your services. There is much to learn in this industry, more then you’ve been led to know by these people who launch infomercials on late night t.v. A question I would like to pose to the reader who is thinking about getting into the note brokering business. “If these so called brokers where making so much money in the Note Brokering field, why would they waste their time trying to sell you a product that would compete with them in the market place?” I offer a simple answer to that question. “The note brokering field isn’t as easy as they make it out to seem!” In following articles I will go more into detail on the subjects covered in this article. Remember as I close! Use common sense when choosing a business to invest in. Make sure that you have done your research before falling pry to these late night crooks.