February 2002
New
This Issue
Back
Issues
First
of Several Educational Business Note Seminars Announced for 2002
Fort
Lauderdale, Florida Saturday, March 9, 2002
(Location
to be announced…airport hotel anticipated)
Over
the years you may have had the opportunity to participate in one of
Ed Lisogar's numerous speaking engagements.
Whether
at The Paper Source, Noteworthy, Cash Flow or one of the many financial
conventions across the country, Ed's no nonsense approach to all facets
of the cash flow industry guarantees standing room only sessions that
are both informative and entertaining. But make no mistake…the
bottom line is knowledge…and an expedited road to success for all
of National Capital's associate brokers.
A respected author,
Ed has written two books for brokers new to the cash flow industry.
In 2000, following years of demand for detailed information on the topic,
Ed released his critically acclaimed best seller:
"The
Business of Business Notes"
…the only instructional
manual on the market devoted specifically to the high profit arena of
buying and brokering seller financed business notes.
Don't
take our word for it...see what industry professionals are saying about
this ground breaking instructional manual!
Now you can spend
an entire day with one of the most dynamic instructors, lecturers, authors
and public speakers in the cash flow industry, participating in a hands
on discussion of the fastest growing segment of the cash flow industry.
Whether brokering
for fees or buying for yourself, this exciting one day session will
provide:
· A beginners
"walk-through" of how business notes are created
· Recognizing salable business notes…"stop wasting
your time!"
· Marketing for business notes/The secret "hiding place"
· Building a referral base for business notes
· Negotiating with the seller/understanding different options
· Actual written presentations from successful acquisitions
· Copies of typical business note security instruments
· What to watch out for when buying your own notes
· Secrets to minimizing the discounts
· Due diligence checklists
· Purchase Agreements
In addition…All
attendees will receive:
· Classroom workbook with all instructor material
· $250 commission bonus good on the first business note closed
with NCC
· "One-on-One" e-mail mentoring with Ed Lisogar for
six months
· Plus…as an added bonus all attendees will receive a copy
of his best selling manual and software "The Business of Business
Notes", the only step by step program in the industry devoted specifically
to the fastest growing segment of the cash flow industry, a $129 value
in itself.
The full day
and all of the added bonuses are included for only …$149!
Think of it…the
$250 commission bonus alone makes the one day session free! The workbook,
the manual & software package and e-mail mentoring are all literally
provided at no charge, not to mention the value of an entire day together
with the leading authority on this high profit cash flow! The benefits
of this rare opportunity speak for itself. The commission bonus, the
book, the software and the mentoring aside, you'll learn first hand
(and at literally no cost), the secrets of this industry leader; the
closing methods they've developed that's achieved a 60% "kill ratio,"
the marketing programs that provide an endless stream of referrals,
and most importantly, how Ed's been able to rocket from "green
broker" to leading industry funding source in just four short years.
Seating at each
city is limited, register today by sending your $149 check, payable
to National Capital Corporation, to:
National CapitalCorporation
3605 N. 68th Street
Scottsdale, AZ 85251
Feel free to contact
Ed personally by e-mail at info@nationalcapitalcorp.com
with any questions you may have about these exciting one day sessions.
* Don't
take our word for it...see what past attendees are saying about this
powerful session!
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2002:
Getting Off On the Right Foot
Insider's
Look at Common Broker Mistakes and How to Avoid Them
2002!!! Wow. Time
flies when you're having fun. Are YOU having fun? Is the cash flow industry
everything you'd hoped for or everything you FEARED? Are you moving
forward, stuck in neutral or simply ready to bag it? If you're anything
but "juiced" about another year in your chosen profession
maybe its time we looked at where you're at, or NOT at, and get you
back on track towards a profitable 2002.
I've been personally
involved in this industry since 1993, as a broker and eventually a principal
investor. In 1993 I completed a five day course in brokering real estate
paper taught by the National Mortgage Investors Institute (the first
of several adult educational training camps dealing with the cash flow
industry put on by The American Cash Flow Association). Basically we
learned what a seller financed note was, a few marketing tips about
where to find them plus basic instruction on the financial calculator.
My early days were horribly unsuccessful. There were a variety of reasons
why which we'll explore later however suffice it to say that as my wife
was counting on my success (not to mention VISA and American Express)
there was little time for a "learning curve".
Maybe this sounds
familiar?
Eventually, with
the help of a two unselfish mentors (Janet Lyon, now a member of a prominent
Orlando law firm, and Eddie Adams, still going strong in Tulsa, Oklahoma)
I closed my first few deals. Following each funding I sat back and analyzed
the transaction and the step by step process that eventually lead to
a successful closing. I compared these closings with failed transactions
of the past. I saw mistakes I had made, incorrect details provided to
sellers and funding sources, incorrect numbers on worksheets, no discussion
with sellers about "fulls" versus partials, splits, etc.,
etc. As additional deals were consummated I shuddered when I looked
back on early deals and how I truly had no clue what I was doing. No
surprise seller's did not have the confidence in my abilities and decided
against selling their notes.
How about you? Have
you, DO YOU STILL do all you can do to be as educated on your chosen
cash flow as possible? Do you read your Cash Flow Journal from cover
to cover each month? Have you surrounded yourself with available educational
material, tapes, books, etc., do you search for industry web sites,
do you participate in internet chat rooms, forums, etc., where not only
YOUR questions and concerns are being addressed but those of your fellow
cash flow brokers? I'm afraid that for most of you, the answer is no.
Every year at different
conventions I have the pleasure of meeting hundreds of you, the brokerage
network. We sit at our booth or find a place to have a cup of coffee
and talk about the industry and how your business is going. Unfortunately
the overriding theme is that you are not doing anywhere near as well
as you'd hoped. You ask what you can do to turn things around. I always
ask the same question…"why do YOU think you're not successful?".
Most of you have few answers. When I ask about your marketing plan,
you have none. When I ask how many Chamber of Commerce meetings you
attended in the last six months its zero. When I ask what your favorite
funding source's typical yield and ITV are for real estate, business
notes, land notes, etc., you have no idea.
How can you succeed
when prospective clients don't know you're out there and you yourself
can explain little about the services you say you can provide? While
there are plenty of you that are doing "okay", most of you
could be doing better. I know, I know, "God, not another Lisogar
lecture…". Sorry gang, it's wake up time. So here's the choice…turn
the page and move on to another article that babies you and is non threatening,
or take a deep breath and read on. Warning: the following may be beneficial
to your bottom line.
Let's look at some
of the most common mistakes us funding sources deal with on a daily
basis. Some may seem nit picky, some trivial and to a degree, on their
OWN, they would be. Problem is misery loves company and when these problems
rear the ugly little heads they typically arrive in groups!
Worksheets
Worksheets
are the life line between you and the money, you and the funding source.
This is the industry standard manner in which you start the dialogue
between yourself and the investor you've chosen to make you rich. Many
of you have decided that completing a worksheet is beneath you. You
fax a hand written scribbled note with minimal information (you know,
the payment amount DOES help us arrive at a quote). You send an e-mail
with even less. Folks, we need details to give you a solid number to
take to your sellers. The optimum word regarding worksheets is "accurate"…second
to that is "complete". Worksheets arrive regularly half empty…numbers
don't jive ("Purchase price: $60,000, Down Payment $10,000, Note
Amount:$127,888…").
Often they look
like someone's scratch pad…handwriting that a Doctor would be proud
of or simply in a language we cannot decipher. If we cannot read it,
how can we quote it? If the numbers don't make sense, what's the point
in submitting it? One year I received a worksheet whose numbers made
absolutely no sense at all. It was accompanied by a cover letter that
advised "…I realize the numbers aren't correct, I'll be resubmitting
another worksheet when I get the right figures…". Honest,
I really did. I'm still not sure what I was supposed to do with the
incorrect one while we waited…it reminded me of the letters my
Father used to send to me in college. They always finished off by saying
"I was going to enclose $50 but I already sealed the envelope…".
It's real simple.
Use the appropriate worksheet as you script. Start from the top, work
your way down EACH SECTION. When it's completed, go over it, make sure
the numbers provided add up. If not, ask! Ask the seller how 4 - 2 =
16…REMEMBER, this is likely the first time the seller has tried
to sell a note. He doesn't know anymore than you do. Matter of fact,
although your green, the training you received puts you head and shoulders
above 99% of all sellers. So ask LOTS of questions. Getting the correct
information to the funding source THE FIRST TRY gets the deal started
on the right foot. Above all BE CONFIDENT. That's the key. I'm the most
confident guy I know…I put a nickel in the parking meter when my
wife goes into the mall…now THAT'S confidence!
Lien Positions
There are
1st position notes and 2nd position notes…sometimes even 3rd position.
Most of your funding sources are interested in 1st's only. Some of us
buy 2nds but there is certain criteria for a 2nd to be reviewed. The
typical rule of thumb for a 2nd to be of interest is that its balance
must meet or exceed 50% of the "senior" lien ahead of it.
In plain English, if a 1st is $100K, the 2nd must be $50K or larger.
Every investor receives worksheets regularly that have a $200,000 1st
and a $20,000 2nd for sale. With few exceptions, I don't know a sole
that will buy that 2nd. When talking with your sellers, make sure that
the purchase price less the down equals the note in question…if
it doesn't, ASK WHY NOT! You'll likely find that the buyer got a bank
loan for the 1st and the seller carried the small 2nd…if it doesn't
meet the 2:1 ratio explained above, why send it in?
Additionally, there
generally is NO market for 2nd position business notes yet we're asked
to quote them on a regular basis. Knowing the basics about what makes
a note salable and one that will waste your time is crucial to your
success.
Buying Paper
vs. Originating Loans
One of the
most misunderstood aspects of this business is, and I know it's hard
to believe, exactly what it is YOU do! Let me tell you what you DON'T
do…you DON'T LEND MONEY. Your marketing prompts calls from individuals
that are looking for loans. Unless you are a licensed lender, you are
not in the business of making loans. It is imperative that you explain
this right from the get go in every single conversation you have about
your business, whether its to 2 people or 200. Your investors buy notes…notes
that are ALREADY in existence, or that will be shortly. We must go over
this 4-5 times a day with brokers that start the call as follows: "I
have a client that wants to buy a business/house/10 acres/mobile home…what
kind of terms can he get from you?". Someone trying to arrange
money to buy something is looking for a loan. The ONLY way we can help
is if they are receiving periodic payments from some type of income
stream. We can liquidate it in one of several ways to raise the cash
they require. Otherwise, point them to their local bank. Each one of
these parties has the most incredible project on earth, no risk, slam
dunk, we'll all be rich, etc. My immediate question, after I tell them
again that we're not lenders, is why haven't they gone to their local
bank where people know them and know their capabilities? That's when
the song and dance begins. From my viewpoint, it's normally BECAUSE
their bank knows them and their abilities that they can't get a traditional
loan for this "slam dunk" project.
Additionally, don't
get caught up in a bunch of smoke and mirrors. "I own 20 acres
free and clear, your investor can put a note on it, that's a note play,
right?". NO! Isn't that what a bank does when it makes a loan?
Registers a note and mortgage on the "collateral" as security?
It's NOT a note play. When all the dust settles, what would we have
done? We've made a loan! Do we make loans? NO! Point them to your local
mortgage broker or banker…that's how you begin to assemble a nice
referral base. Referrals should be the #1 source for your business.
Gauging a Seller's
Expectations…the "NEED" Syndrome
Those of you
that know me know this is a topic that I harp on endlessly. Problem
is its ignored 95% of the time. Understanding what the seller's realistic
expectations are for his note will save you a lot of frustration. Conversely,
it will help you close more deals as you'll stop wasting time on deals
that have no chance of closing, and allow you to zero in on the ones
that will. What does that mean? Simple. What's my company's Maximum
ITV for a business Note? Don't know? 80%? 40%? 90%? Do you know what
ITV stands for and how to calculate it? ITV is Investment to Value.
It ensures we do not over invest into any one note type relative to
what we feel is the fire sale value of the collateral. The MOST we'd
invest into a business note is about 50%, all things being equal. "…but
Ed…" you say "…that's YOUR job, knowing that fancy
numbers stuff…". Well, technically, yes. However, don't you
want to maximize your time in this industry? Don't you want to know
right out of the chute if this deal is going anywhere? When you know
certain basic criteria for the area of the cash flow industry your specializing
in, it allows you to instantly recognize trouble in the making.
E.g. Business sells
for $100K, buyer put $30K down, new note for $70K…six months into
it the seller contacts you and wants to sell the note. He tells you
he won't take less than $65K for it. What's our Max ITV for this note?
See, most of you forgot already. 50% ITV…or $50K. You know right
away that you'll never get anywhere near his desired goal. Most of you
have not heard this "siren" going off and you go through the
brain damage of completing a worksheet, waiting for the note, and eventually
faxing it all in. What you SHOULD have done was to give him a quick
explanation of ITV and why $65K is not possible. You immediately discuss
how much better a partial or split payment option works. He STILL may
not want to go that route but at least you got to the heart of the matter
in what…five minutes? Maximizing your time will minimize your frustration
and increase your profits.
These are but a few typical "speed bumps" most new brokers
stumble over. There are others:
Communications
Having to
call a broker to tell you we're trying to fax you is insane. If you're
going to be in this business, BE IN THIS BUSINESS. Trust me when I tell
you you will see no visible difference in your electric bill by leaving
the fax machine on 24 hours a day. Nothing is more frustrating than
trying to return a quote to a broker and the fax never goes through.
E-Mail
Do you use
e-mail? Questions or quote requests are generally returned in the same
medium as they arrived. We naturally assume that if it arrived via e-mail
that's how it should be returned. At least once a week we receive a
scathing voice mail that someone submitted a worksheet via e-mail and
has not heard back from anyone in our office. However, a review of outgoing
e-mails indicates that it was responded to the very same day. When asked
if they've checked their e-mail they state "Oh I don't check that
more than once a week"…unbelievable.
Now before you jump
on my case let me say that yes, there are PLENTY of terrific brokers
out there, many of whom have been closing deals with us for years. The
problem is THERE SHOULD BE MORE OF YOU! I know you're out there, the
20+ worksheets that arrive by fax or from our web site a day tell us
that. You just need to apply yourself and in particular, pay a little
more attention to detail.
We WANT you to succeed.
After all, we're 60% broker driven. That's why we redesigned our web
site to be as broker friendly as you'll find in the industry. Have a
question…have SEVERAL questions? That's what the "Forum"
page at our site is there for. Join in, post questions, respond to ongoing
conversations, etc.
Have something that's
a little "off the wall"? Send a brief e-mail or fax a very
simple thumbnail sketch. We'll tell you whether or not there's anything
to be done there. DO NOT FAX EVERY DOCUMENT IN CREATION and expect us
to understand what's going on. Documents, security instruments on their
own don't tell the tale…that's what worksheets and cover letters
are for. As a rule we NEVER want to see more than the Promissory Note
anyway until we do an initial review. IF there's a deal to be done we'll
tell what we need to see…and when.
There is a tremendous
living to be made in this industry but it will not fall in your lap.
Throwing enough deals against the wall in the hopes that one will stick
is NOT the way to succeed and profit. Start paying attention to what
your sellers are telling you, in both the most basic details of their
notes as well as their expectations. Maximize your efforts. Never stop
learning. Volunteer to speak to a Monday morning real estate gathering
at your local Coldwell Banker office. Find out when the next Chamber
of Commerce monthly "mixer" is and arrive with a stack of
cards…everyone else there is! Network, network, network. You have
a tremendous product to distribute, something EVERYONE needs…its
MONEY! All you have to do is let the world know you're there and as
professional as you can be. The rest will fall in line.
You can do it.
2002 will be your best year yet. Remember…CONFIDENCE!
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Why
do mortgage rates fluctuate?
To understand why
mortgage rates change we need to know why do interest rates change?
And there is not one interest rate, but many interest rates:
Prime rate:
The rate offered to a bank's best customers.
Treasury bill
rates: Treasury bills are short-term debt instruments used by the
U.S. Government to finance their debt. Commonly called T-bills they
come in denominations of 3 months, 6 months and 1 year. Each treasury
bill has a corresponding interest rate (i.e. 3-month T-bill rate, 1-year
T-bill rate).
Treasury Notes:
Intermediate-term debt instruments used by the U.S. Government to finance
their debt. They come in denominations of 2 years, 5 years and 10 years.
Treasury Bonds:
Long debt instruments used by the U.S. Government to finance its debt.
Treasury bonds come in 30-year denominations.
Federal Funds
Rate: Rates banks charge each other for overnight loans.
Federal Discount
Rate: Rate New York Fed charges to member banks.
Libor: London
Interbank Offered Rates. Average London Eurodollar rates.
6-month CD rate:
The average rate that you get when you invest in a 6-month CD.
11th District
Cost of Funds: Rate determined by averaging a composite of other
rates.
Fannie Mae Backed
Security rates: Fannie Mae, a quasi-government agency, pools large
quantities of mortgages, creates securities with them, and sells them
as Fannie Mae backed securities. The rates on these securities influence
mortgage rates very strongly.
Ginnie Mae-Backed
Security rates: Ginnie Mae, a quasi-government agency, pools large
quantities of mortgages, securitizes them and sells them as Ginnie Mae-backed
securities. The rates on these securities affect mortgage rates on FHA
and VA loans.
Interest-rates move
because of the laws of supply and demand. If the demand for credit (loans)
increases, so do interest rates. This is because there are more people
who want money, buyers, so people who are willing to lend it, sellers,
can command a better price, i.e. higher interest rates.
If the demand for
credit reduces, then so do interest rates. This is because there are
more people who are ready to lend, sellers, than people who want to
borrow, buyers. This means that borrowers, buyers, can command a lower
price, i.e. lower interest rates.
When the economy
is expanding there is a higher demand for credit so interest rates go
up. When the economy is slowing the demand for credit decreases and
thus interest rates go down.
This leads to
a fundamental concept:
Bad news (i.e. a
slowing economy) is good news for borrowers as it means lower interest
rates. Good news (i.e. a growing economy) is bad news for borrowers
as it means higher interest rates.
Another major factor
driving interest rates is inflation. Higher inflation is associated
with a growing economy. When the economy grows too strongly the Federal
Reserve increases interest rates to slow the economy down and reduce
inflation.
Inflation results
from prices of goods and services increasing. When the economy is strong
there is more demand for goods and services, so the sellers and producers
of those goods and services can increase prices. A strong economy therefore
results in higher real-estate prices, higher rents on apartments and
higher mortgage rates.
Also lenders naturally
want to see a positive return on their money as their reward for lending
it. This leads to the concept of the "real" rate of return.
This is typically 3% per year. This if inflation is 4 % per year, lenders
will want to earn 7% per year on their money.
Likewise, if prices
are rising rapidly, people are inclined to borrow "today's"
money so as to repay it with "tomorrow's" money, which will
be worth less.
Mortgage rates tend
to move in the same direction as interest rates. However, actual mortgage
rates are also based on supply and demand for mortgages.
There is usually
an almost fixed spread between A credit mortgage rates and treasury
rates. This is not always the case. For example, bank failures in the
Far East in the late 90s caused mortgage rates to move up while treasury
rates moved down as fearful investors fled to the safety of the treasury
bonds and notes.
Bonds Rates
There
is an inverse relationship between bond prices and bond rates. This
can be confusing. When interest rates move up, bond prices move down
and vice versa. This is because bonds usually have a fixed price at
maturity--typically $1000. The bond will start off being sold for the
face value, $1000 and at a set interest rate. If interest rates now
go down, then this bond will go up in price so that these bonds will
remain fairly priced compared with current bond offerings. Obviously
the longer before the bond matures for face value, $1000, the greater
the price premium will be to enjoy that higher than current yield for
the rest of the bond's term.
The inverse also
applies. If interest rates move up, the bond seller will have to reduce
his price to offer a similar yield to current bond offerings.
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You
Know You've Been in the Corporate World Too Long When ...
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Eliminate
the Competition…Structuring Soon to be Created Notes
Over the years I've
endless calls, letters, faxes and e-mails asking for assistance with
marketing for paper. Everyone's looking for that "secret hiding
place" where no one else has thought to look. It seems the competition
is getting fierce and every seller has already heard from, or received
numerous post cards from other brokers attempting to buy their notes.
"How can we compete" and more importantly "How can I
make any money in this industry?" seems to be the question of the
year. While there is no one avenue that will provide endless paper,
there are several ways to work this industry that will at least MINIMIZE
your competition.
Once a note is recorded, it's open season. Mortgages and other security
instruments are public records and every broker sitting at the computer
at his or her county courthouse has access to the same note(s). In addition
to the obvious problem with that, one stumbling block is always the
possibility that the notes your sending mailouts to as a result of your
courthouse searches may have already been sold!!
So what do we
do?
Simple. Work with
notes that have not yet been created ("Okay, Ed's really lost it
this time…). Now hold it…before you call a medic, hear me
out. As crazy as this sounds there is a method to my madness.
We've always talked
about the different avenues that you should be marketing to…CPA's,
mortgage brokers, bankers, real estate agents, business brokers, mobile
home dealers, attorneys, etc. We know that they are a great source of
referrals and many times have clients that carried paper in previous
transactions, are receiving payments from a legal settlement, WHATEVER.
In many cases these individuals will contact their "financial advisor"
to see if they know anyone that might buy their note. Certainly we can
help in those situations but what about clients that have not yet walked
through the door…closed that real estate sale…settled that
court case…sold that business…? ("…what is he talking
about…?").
One of the goals
of your marketing is to become the creative alternative finance arm
of that particular industry. Not every seller has to have 100% of his
cash out of the sale. Listen to this statement and tell me if you agree:
Very few sellers actually require 100% of their asking price in cash
at closing. Think about that…I'll say it again: Very few sellers
actually require 100% of their asking price in cash at closing. What
that means is that most sellers have a specific reason for selling the
collateral in question. They are buying another house, business, paying
for daughter's college, WHATEVER.. The house is selling for $250,000
but all they truly need out of the sale is about $100K…the rest
will sit in an account at what the bank has the nerve to call a high
yield account. The problem is, the cash down a seller can reasonably
expect a buyer to bring to the table in a seller financed deal DOES
NOT MEET HIS PRESENT CASH REQUIREMENTS. In the example above, its unlikely
that you'll find a buyer for a $250K house arrive with $100K cash down…10%-15%
is typical and that just doesn't cut it for the seller. His only option
is to continue asking for ALL CASH. In a down market, that house could
sit there for months and go through two, sometimes three real estate
agencies. Well, you have a better idea.
Okay, here's statement
#2 to chew on: Many sellers WOULD be willing to carry the financing
IF they knew there was an avenue whereby they could supplement the down
payment received from the sale. Go back to the scenario above: $250K
sale price, buyer has $37,500 cash down (15%). Buyer asks seller if
he'd be willing to carry the financing. Seller needs $100K for whatever
reason and the cash down the seller can bring to the table DOES NOT
MEET HIS PRESENT CASH REQUIREMENTS. This is where you come in. If the
seller carried the balance ($212,500) at 9%, 20 years, buyer's payments
would be $1,911/month. Now follow this:
Seller NEEDS $100K…he
received $37,500 from the buyer as the down payment so we're really
short how much?…$62,500 right? Do you think, subject to all due
diligence, a $62,500 partial is achievable out of a $212,500 first position
real estate note? Absolutely…it's practically a no brainer again,
subject to buyer credit, appraisal, etc.
So how does all
of this fit into the theme of this article, namely "Eliminate the
competition…structuring soon to be created notes"? Simple.
By working with all parties PRIOR TO THE SALE, you are now an important
part of the transaction. You showed all the parties involved how to
structure the new note…you introduced everyone to the secondary
market and demonstrated how a calculated number of payments could be
liquidated to SUPPLEMENT the cash down received from the buyer…you
showed the seller how he'll literally triple the interest he will earn
on his proceeds (9% from the portion of the note he retains versus +/-3%
he'd receive in his saving s account at the bank). In many cases you
will even save the deal if the buyer was not able to qualify for institutional
financing. Buyer gets a "loan" with zero points or fees, seller
sells house quickly as every buyer will chose a sale where seller financing
is available versus one where he has to arrange for new bank financing,
real estate agent pockets another commission. It's win-win-win all the
way around. On top of that, how fast do you think word will spread in
the real estate office? This my friends, is how you start the referral
"machine" in motion.
This is what I meant
when I told you to deal with notes that have not yet been created. It's
the same philosophy with business brokers, and anyone that has something
for sale. The magic word is NEED…find out what's needed out of
ANY transaction and then find a way to provide it.
And you thought
I was crazy……crazy like a fox. :)
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Standing
room Only at The Forum
The Forum page at
NCC's web site is the place to "hang" to pick up the latest
tips, techniques and answers to questions relating to a variety of arenas
in your industry. You never who will be joining in on the conversation.
(Go to the fourm now!)
Have a question about a deal you're working? Not sure if there's a market
for certain cash flows? Wondering what's the best way to find certain
note types? There's a new clearing house for questions like these and
ANYTHING you have to discuss at the NCC "FORUM"! Post questions
or comments on a variety of topics. Join in on an ongoing discussion.
Respond to postings from other brokers as well as investors. Share your
experience with your fellow brokers. It's all there for you at the "Forum".
Additionally, feel
free to add YOUR OWN comments to postings already in place.
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Web
Site Tutorial
If you're just getting
started building Web pages, you may like to look at a good tutorial.
We ran across one we like recently at the Cleveland State University
Library site.
This tutorial, located at the link below this tip, takes you through
all the basic steps of building a Web page.
Click here for this Web page tutorial: http://html.ulib.csuohio.edu/tutorial/tech.html
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Christmas
Special on Educational Materials Extended!
Due to overwhelming
response, the Christmas Special on both of National Capital's best selling
instruction manual and software products has been held over until February
15, 2002.
In case you missed,
here is the original announcement. Remember, February 21, 2002 is the
extended ordering deadline.
Get
2002 off on a profitable start with an investment in yourself!
Merry
Christmas from National Capital Corporation!
The holidays are
around the corner. As you're running crazy from store to store, getting
your "list" taken care of, how about doing something nice
for yourself?
For the rest of
December, order either one of our best selling manual and software publications,
"Cash Flow Correspondence"
or "The Business of Business
Notes" and receive a 25% "Merry Christmas" discount!
That's right, 25%
off of either manual and software*.
Want them both?
Take 30% off the combined retail price when ordering the two together!
That's a $53 dollar savings!*
You can check both
publications out at the Instructional
Manuals page at our site. While you're there, read the reviews from
industry experts. You'll see why both have become the technical AND
reference manuals of choice for the brokerage community.
So treat yourself
this Christmas. The benefits will be around LONG after the tree and
lights are gone!
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Broker
Question of the Month
Every issue
the staff at NCC select a question from the NCC Forum to share with
our newsletter subscribers. Got a question, comment, story or experience
to share? Post it at the NCC Forum.
This issue's posting
is by KM who wrote:
I was wondering
how do cashflow buyers stay afloat when a lot of them don't solicit
holders directly? For example,Granoff Enterprises is the only firm that
invests SOLELY in lottery winnings. Everyone knows that there are not
nearly as many prospects for this type of cashflow than the other more
common ones. Even the firms that invest in all different forms of paper
could have a rough time if things slow down.
My point is if they're
depending on BROKERS to bring deals and the brokers aren't finding them
each month,how the hell do you guys make money?
COMMENTS APPRECIATED
Response By
Ed Lisogar:
Who says we DO?
Many of us moonlight
as "squeegie guys" on New York street corners.
I personally sing
the national anthem at cockfights...
Seriously, you raise
some interesting questions. As you stated, investors specialize in different
areas of the industry. Some, as you pointed out like Marty do nothing
but Lotteries. Others may do just residential paper. Still others might
specialize in consumer loans only. To me, it's putting all your eggs
in one basket and yes, things could get tight should that segment of
the industry slow substantially.
We recognized this
long ago and began a program of educating ourselves about numerous diversified
cash flows. Today we buy just about everything...well, anything that
makes financial sense and meets underwriting criteria.
I agree with you,
focusing in on one cash flow type only would seem to limit your profitability.
This accounts for why so many investors have come and gone over the
years. Who would have imagined The Associates closing their doors as
they did last May. It was a real shock.
National Capital
Corporation has been a principal investor since 1994. When you work
with NCC you have the confidence in knowing we will be there next week,
next month, next year. We have revolutionized the industry through a
variety of ground breaking arenas:
Instructional software
and manuals written specifically for new brokers...
The Forum page at
our web site where questions and answers on all areas of the cash flow
industry can be posted, reviewed and added to...
On line submission
worksheets allowing you to submit deals right from our web site...
All this in addition
to our creative approach to the deals you're working, in an effort to
put the deal to bed so you get paid.
Lastly, NCC is very
much broker driven. We look forward to working with brokers green or
otherwise and encourage all brokers to register for our free newsletter
and make constant use of this Forum.
All the best!
EL
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Birds
of a Feather…
While we typically
stay away from making political commentary, the following gives a whole
new meaning to the phrase "Politics makes strange bed fellows".
Jessie Jackson has added former Chicago Democrat congressman Mel Reynolds
to the Rainbow/PUSH Coalition's generous payroll.
Reynolds was among
the 176 criminals Bill Clinton pardoned in the last moments of his presidency.
Reynolds received
a commutation of his six-and-a-half-year Federal sentence for 15 convictions
of wire fraud, bank fraud & lies to the Federal Election Commission.
He is more notorious,
however, for concurrently serving five years for
having sex with an underage campaign volunteer.
This is a first
in American politics: An ex-Congressman who had sex with a subordinate
won clemency from a President who had sex with a subordinate, then was
hired by a Clergyman who had sex with a subordinate.
His new job? Youth
counselor.
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..And Finally
Two cannibals are
eating a clown.
One cannibal turns
to the other cannibal and says:
"…Does
this taste funny to you?…"
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