April 2002
New
This Issue
Back
Issues
Second
of Several Educational Business Note Seminars Announced for 2002
San
Francisco, California Saturday, April 27, 2002
(Location to be announced…)
*Additional cities
have been selected but dates not yet finalized. Click
here for for details:
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 Capital
Corporation
Main Office/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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Why
the Big Discounts in Business Notes?
Over the years numerous
cash flows and income streams have been introduced to cash flow brokers
as yet another means to generate income. Without a doubt the fastest-growing
segment of our industry, in our humble opinion of course, is the brokering,
buying and selling of business notes.
A "true"
business note is created when a party sells a business, but there is
no real estate involved as security (there are transactions where real
estate is involved, but that's a topic for another article). The seller
sells the rights to operate the business, to continue utilizing the
present company name (if the buyer so desires) and to take advantage
of the steady clientele the previous owner has built up over the years.
All of these issues
come in to play when we, as investors, review a business note for potential
purchase. As there is no real estate as security, business notes all
possess a risk factor which is directly related to the desired yield.
"No risk,
no reward" and "No pain, no gain" are two phrases that
fit the business note buying arena. As there is no real estate and typically
little in tangible, foreclosable assets securing most business notes,
they are viewed by the industry as very risky investments. As such the
present market yields run typically in the 20% range and higher, depending
on the deal.
When buying a business
note we are really counting on the good creditworthiness of the payor,
and as such most investors generally will not buy a note that is not
personally guaranteed, has a personal signature of a credit worthy individual(s)
on the note. You can imagine the smoke screen a corporation can throw
in your face in the event of a default: Therefore most investors are
looking for an individual promise to pay; and that individual must have
a top-notch credit history.
Will investors ever
buy a note that's corporately guaranteed? Sure, under the right circumstances...high
equity, great seasoning, strong company payor with a strong D&B,
etc., but just remember, we'd prefer to see a personal signature on
the note when it comes to business notes.
Secondly, as there
is little security for these notes, payor equity is a crucial factor
in an investor's review of any note. Typically, a minimum 30% down or
more is required for a note to be salable. There are always exceptions
however, we want to see that the buyer is truly committed to making
this business a success and a buyer with 30%-40% down will do every-
thing he can if times get "lean" versus a buyer that contributed
10% down and then realized that owning your own business and being your
own boss is not arriving at 10 a.m., leaving at 3 p.m., two to three
days a week.
As with any note
that requires a high yield to the investor, large discounts are typically
the result. While business noteholders are by far the most motivated
of note sellers, rarely are they ready for what a yield in the 20% range
will provide in terms of the discount and what their note is worth in
the secondary market.
Have you noticed
that most note sellers, regardless of the type of note, all have a 10%
discount firmly entrenched in their minds? I'm convinced that all the
noteholders of the world participated in a conference call and decided
that 10% is where they should all be. The problem lies in that we do
not (arguably) approach notes from a "discount" standpoint,
per se, but from yield. Obviously yield and discount are directly related.
However, the discount will be affected by numerous factors like the
face rate of the note, seasoning, equity, and more than all else, the
number of payments being purchased.
We have the greatest
success demonstrating to potential clients the benefits of a partial
over a full. Pull out just the cash you need now, and retain income
from all the future payments still to come. Plus, a client can always
go back to the income stream at a later date and repeat the process
if and when he requires additional cash in the future. This will always
be a more attractive option for your clients.
Ed Lisogar is
President of National Capital Corporation, Scottsdale, Arizona. He is
an author, a national speaker/instructor and was an Arizona Entrepreneur
of the Year nominee in 1997, 1999 and 2001. National Capital Corporation
is one of leading business note buyers in the country in addition to
buying all forms of paper nationwide.
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Grand
Bank no Longer Buying Notes
Grand Bank, a well
known buyer of real estate notes has suspended its note buying operations.
According to Rob
Guyse, Senior Contract Buyer, "Due to our recent agreement with
CitiGroup, we are temporarily taking our company out of the owner-finance
market".
"We have recently
acquired the servicing of a large portfolio of loans from CitiGroup,
formerly the Associates PMO. Over the next several months we will be
concentrating all of our efforts on servicing this pool of loans".
Rob advises that
they will be re-entering the market at some point in the future, possibly
in six to nine months at which time they hope to have an updated pricing
matrix and loan guidelines.
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Simultaneous
Closings Becoming a Rare Commodity
SC's are slowly
becoming extinct. Investors like NCC are watching in dismay as personal
BK's and personal mortgage defaults continue to reach epidemic proportions.
The once secure SFR, O/O note has now become more of a risky proposition.
Where the roof over
a Payor's family's heads was once the last to default, Payor's are walking
away from their obligations on their personal residency in record numbers
(thank the government for making it so easy to file and walk from your
debts).
Additionally, we're
seeing a tremendous increase in fraud as it pertains to "rehabber"
paper. Shoddy work, work not completed AT ALL are some of the reasons
that investors want to see some track record. The Associates, just before
their demise, instituted a policy requiring the Payor to sign a secondary
Estopple that literally stated that the Payors were happy with the property,
that all renovations were completed and satisfactory, etc. etc. Even
THAT didn't prevent them from closing their doors.
As a result, we
typically want to see 3-4 months pay history to confirm the Payor has
the ability to make the payment as scheduled and hasn't bitten off more
than he can reasonably chew.
Minimum acceptable
credit scores are up to about 600 FICO, and ITV perameters are dropping.
As always it's up
to you to ensure your clients, the one's that are considering selling
a note shortly after closing, understand that they will likely have
to wait a few months, and PARTICULARLY that they will realize varying
discounts.
THEY WILL NOT
BE CASHING OUT AT PAR.
Too many sellers
are aghast when we discuss the discount issue with them. In most cases
this is the first time this IMPORTANT aspect has been raised.
Save yourself a
lot of time and frustration by getting to the heart of this matter in
your very first conversation with a seller. A seller looking for PAR
or minimal discounts on notes that have little Payor equity going in
and possibly poor credit is simply wasting your time.
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Whose
"Hangin'" 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.
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". Visit
the Forum now!
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Quoting
the Deal…an article by former Metropolitan Mortgage Executive Mike
Kirk
"How do I hold
on to the mortgage seller after I give them the quote? They never seem
to call back after our initial conversation. I give hundreds of quotes,
yet only get a few deals, and then most of these back out before funding.
Is this normal for the industry?"
In order to be successful
in the note buying industry, you should be aware of three important
factors before you ever give your first quote:
* You are dealing
with a client.
* You are dealing with that client's money.
* The note you are dealing with is usually the client's largest asset.
A big misconception
throughout the industry is that whoever offers the best price, and can
close the fastest, will get the deal. This couldn't be further from
the truth. Look at the three factors. They all point to one thing: TRUST.
It doesn't matter how much you offer, or how fast you close, if the
client doesn't trust you, they won't deal with you.
So how do you build
that trust, especially when your only contact is that one time they
call for a quote? They don't know you, they are entering an area they
know nothing about, and they are risking what may be their life savings.
In a matter of minutes, you need to get over all these hurdles. Can
it be done? Of course it can, if you project the essential qualities.
Professionalism
- You are running a business and are representing yourself as a
professional in that business. That message needs to be conveyed from
the outset.
If you work out
of your home, get a separate line just for business purposes. If
a potential client calls you for a quote, and hears "Hello?"
when you answer, you're already heading downhill. If your eight-year-old
son or daughter answers, or they get an answering machine message saying
"You have reached the Jones'. Please leave a message after the
beep," you're finished. They will seldom call back.
Lay down some
rules in your household. Children should not answer your business
line. If you or anyone you've authorized answer, it should always be
with, "Jones Investment Services. May I help you?" or something
along those lines. Avoid background noise, like children crying, dogs
barking, or TVs and stereos blaring. All this detracts from you presenting
a professional image. And, if authorized individuals are not available
to answer the phone, the call should be directed to a voice mail or
answering service or answering machine with a professional message.
When a potential
client does call, take charge of the conversation immediately, but do
it in a courteous and professional manner. For example, Metropolitan's
buyers usually start with something like the following:
"I'd be happy
to give you a quote. If you have a few minutes, I'd like to ask you
some questions, but before we start, are you calling long distance?
Yes? Then let me have your phone number and I'll call you right back.
The questions take about 5-10 minutes, and I know how expensive long
distance rates are these days." (If the client is calling locally,
the buyer would simply say, "Fine. These questions take about 5-10
minutes, and I didn't want you to incur long distance charges.")
This simple, friendly
greeting establishes the tone for the entire conversation and negotiation.
It shows professionalism, courtesy, compassion and prominence. You have
shown the client that you have done this many times before, you understand
and care about the expense they have incurred just calling you, and
you are willing to absorb that expense yourself as a matter of business.
In addition, his approach has obligated the client to listen and answer
all the questions you may have. You have taken charge of the conversation,
and, therefore, the negotiation.
Confidence
- When talking to a potential client, you need to radiate confidence.
They have to be convinced you know what you are talking about.
Don't fumble
around when discussing money. Have a set approach to your quoting
procedures. Once you have established that they do indeed hold a note,
have a predetermined list of questions.
Be concise with
your questions, but speak plain English. Only a handful of people
understand our business, so don't use technical phrases if you can avoid
it. People feel uncomfortable if they're asked questions they don't
understand. For example, rather than asking "Are the original Note
and Deed of Trust held in an escrow account? If so, we will need an
Estoppel letter from that agent," phrase the question a little
differently. "Does the purchaser make the payments directly to
you, or do they go to your bank first? Do you have the legal documents,
or are they held by your bank? Can you get them to give you a signed
statement showing the payment history?" By phrasing the questions
the right way, you can still get all the information you need without
making the client feel uncomfortable.
Ask all the questions.
You cannot give an accurate quote with only half the information.
Many brokers try to hurry the conversation, thinking they are going
to lose the deal if they don't give a quote immediately. If the client
is serious about selling their note, just the opposite is true. Most
note sellers are first-timers, and they want to understand everything
that is involved. Remember, you're dealing with their money. The client
doesn't want to be hurried. If you are asking pointed, concise questions,
and they are becoming impatient, then they are not serious, and you
shouldn't waste your time. Don't let them hurry you into giving them
a figure until you are comfortable that you know everything.
Don't beg. We've
all been approached by people who wanted something from us. Even though
they may not say anything directly, you can sense it, even if it's over
the phone. Maybe you haven't closed a deal in months and your own mortgage
payment is due. Put that fact aside. If you are desperate for the deal,
that message comes across in your tone, and the client will lose confidence
in you.
Don't be afraid
to give the quote. You should have asked enough questions to give
you a good picture of the situation. You know why they are interested
in selling, what they need, and what the value of the note is. Give
the quote with confidence. If you stumble when you give them the numbers,
or present the numbers apologetically, you have probably lost the deal.
This is a very
common malady, especially among newer broker. Why? Because they are
not comfortable themselves with the fact that they have to discount
the note. They are not comfortable with, nor do they fully understand
the time value of money. It should be expected that the client won't
understand, but as a professional, you should not only understand, but
be able to convey the quote in such a confident manner that there is
no question as to the legitimacy of the numbers you're quoting. The
time value of money is not something used exclusively in the note business.
It comes into play, in one form or another, in every financial transaction.
Why do you think banks charge interest?
Don't feel guilty
about discounting a note. The client will sense it. It comes across
in your manner, and will either cost you the deal, or at the very least,
put you in a weak negotiating position.
Remember, you
are a professional. You know what you're talking about. You care
about your clients. You provide the best service possible to your clients.
You pay a fair price for the notes you buy. Every potential client you
talk to should hang up the phone with that same feeling.
Michael
A. Kirk was Vice President of Metropolitan Mortgage & Securities
Co., Inc., for many years.
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Successful
Businesses Require Hard Work and a Business Plan
You're all set to
start a new small business. You have a good idea, the talent to make
it work and a ready market for your products or services. All that's
needed now is to open the door and let the sales start rolling in.
If
only small business success was that easy.
The truth is that
successful businesses are the result of hard work, careful planning
and more hard work. And behind every successful small business, there's
a good business plan that helped make it work.
A business plan
provides the small business owner with a plan of action that covers
every aspect of its development and operation. The business plan examines
the environment in which a business operates, describes how the business
will function and anticipates potential problems and opportunities.
The plan suggests solutions to problems and responses to opportunities.
The business plan is the definite document that showcases your clear
thinking about the business.
If you plan to seek
financing, a copy of your business plan will generally be required as
a way to substantiate that you have a valid business idea and realistic
plans for business success. You should answer the following questions:
Who are your target customers and how will you gain their business?
What will competitors do to offset your presence in the market? What
are the new trends developing in your field and how will you accommodate
them? After your business is established, how will you make the business
grow?
Don't be surprised
if addressing these issues raises more questions and issues you hadn't
considered. Both from a financing and operational perspective, the business
plan should address future contingencies. Putting your ideas in writing
forces you to think realistically about what the business can achieve
under the best conditions, and the worst. Preparing a business plan
may sound like a lot of work, and it is. But the benefits are well worth
the investment Planning helps guarantee that you have defined and described
business objets such as sales, expenses and the goals of your business.
The more detailed and accurate your plan, the better prepared you'll
be to handle the day-to-day challenges of building a successful business.
Start-up and existing
businesses can both benefit from a written business plan. A free workbook,
"How to Really Start Your Own Business," is available through
the SCORE Association, also known as Counselors to America's Small Business.
This workbook provides a framework for developing a business plan and
answering key questions that will influence how the business operates.
A SCORE counselor can meet with you confidentially to discuss your business
plan and how to improve an existing plan or write that first business
plan. All business counseling is free and confidential.
If you would like
to discuss business planning, business start-up or business expansion,
contact SCORE. More than 11,500 volunteer business counselors donate
their time and expertise to assist entrepreneurs. SCORE is a nonprofit
organization that provides free and confidential business counseling
as a community service.
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National
Mobile Home Lender Calls It Quits
GreenPoint Financial
Corp., New York, is exiting the manufactured housing lending business
just three years after acquiring the second-largest originator of these
loans.
Thomas S. Johnson,
chairman and chief executive of GreenPoint, said the company had concluded
that "the expected returns, the necessary level of capital support,
and the inherent earnings volatility do not justify staying in the manufactured
housing finance business."
As a result of the
decision, GreenPoint -- which says it now ranks as the third-largest
originator of MH loans -- will take $663 million in charges to earnings.
This will result in a net loss per share of $6.19 to $6.29 in the fourth
quarter of 2001. The company said it will sell $850 million of manufactured
housing loans on its balance sheet. The Fitch rating agency said it
was not surprised by the announcement and had factored in the expected
decision when it downgraded GreenPoint on Jan. 22, 2001.
"This announcement
clearly recognizes that the company's foray into manufactured housing
lending … has been a major disappointment," Fitch declared.
nationalmortgagenews.com,
Jan. 3, 2002
Editor's note:
The blood bath continues as yet another lender has had all the losses
they can stomach. As a result, the steady stream of pools and portfolios
of MH paper w/o land will increase as dealers and private sellers
shop the hell out of their paper, determined to find a buyer to provide
the PAR pricing they had become accustomed to from loan originators.
It is up to the brokers of the industry to educate the MH world that
those days are over. Best case scenario we've seen to date has MH
w/o land pools trading at 70% and DOWN. Save yourself a lot of time
by insisting a seller of this collateral type provide a indication
of what they reasonably expect for the pool they are shopping.
E.L./NCC
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Scandal
in the White House
Certainly there
is a political dimension here.
Enron's chairman
did meet with the president and the vice president in the Oval Office.
Enron gave $420,000
to the president's party over three years.
It donated $100,000
to the president's inauguration festivities.
The Enron chairman
stayed at the White House 11 times.
The corporation
had access to the administration at its highest levels and even enlisted
the Commerce and State Departments to grease deals for it.
The taxpayer-supported
Export-Import Bank subsidized Enron for more than $600 million in just
one transaction.
BUT...
The president under
whom all this happened wasn't George W. Bush…
…It was Bill
Clinton.
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"Nigerian
Letter" goes Internet
Nigerian Money Scams
Thrive On The Internet …by Brian McWilliams
The arrival of Internet
cafes in Nigeria a few years ago has given new life to an old scam that's
been bleeding millions of dollars annually from gullible Americans and
Europeans, experts say.
The fraud, which
gained its name from the relevant section of Nigeria's penal code, has
lately become a way of life for many people in cities such as Lagos,
where economic opportunities are severely limited, according to the
U.S. Secret Service.
The unsolicited
messages, which are usually sent from Web mail accounts at providers
such as Yahoo, entice greedy recipients with the false promise of windfall
profits in exchange for helping the sender recover millions of dollars
in frozen or hidden assets.
Annual losses attributed
to the scams are in the hundreds of millions of dollars, according to
U.S. Treasury officials.
The e-mail-based
scams have almost completely displaced the faxes and postal mailings
used when Nigerian money frauds first appeared nearly 25 years ago.
Credit the attractive economics of junk mailing or "spamming,"
as well as the anonymity of Internet messaging, experts said.
The e-mail typically
arrives with a subject line such as "Business Relationship"
or "Strictly Confidential" and appears to be written by a
prominent Nigerian connected to the nation's government or banking system.
Authorities wouldn't
disclose how many people have been victimized by the Nigerian money
scams, but they report that some individuals have been bilked out of
hundreds of thousands of dollars, mostly in the form of fraudulent fees,
which the scammers claim are required to release the victim's take of
the non-existent booty.
The Secret Service has set up a special e-mail address for reporting
Nigerian money fraud, 419.fcd@usss.treas.gov, which has generated a
swelling database of such spams. But officials concede the e-mail messages
provide little in the way of forensic fodder for their investigations.
The Internet protocol
addresses in the message headers invariably lead to public computers
at Net cafes where usage is not logged. And subpoenas to Yahoo, America
Online, and other e-mail providers used by the scammers seldom produce
solid leads, law enforcement officials said.
The Nigerian spams
are usually sent from fictitious account names derived from those of
well-known Nigerian citizens. The scammers, like garden-variety spammers,
harvest the e-mail addresses of their prospects from places including
corporate and University Web sites as well as Usenet discussion groups
and online message boards, according to Secret Service experts.
While the crimes
may be based in cyberspace, much of the Secret Service's investigative
headway occurs in Nigeria, where its task force maintains offices and
collaborates with local police. But Nigeria remains a hospitable place
for scams because of inconsistent enforcement of the country's laws,
Secret Service officials said.
Here is the most
recent version making the rounds:
Private Business
Proposal.
Dr Gbenga Alfred.
16 Kingsway Road
Ikoyi, Lagos
Nigeria..
Email: gbengaalfred@lycos.co.uk
Tel:234 1 775 9426
Tel/Fax: 234 1774 8893.
Fax:234 1 759 1304
15th, March 2002.
Request for
Urgent Business Relationship.
First I must solicit
your confidence in this transaction. This is by virtue of its nature
as being utterly confidential and top secret. We shall be counting on
your ability and reliability to prosecute a transaction of great magnitude
involving a pending business transaction requiring maximum confidence.
We are top officials
of the Federal Government Contract Review Panel who are interested in
importation of goods into our country with funds which are presently
trapped in Nigeria. In order to commence this business we solicit your
assistance to enable us RECIEVE the said trapped funds ABROAD.
The source of this
fund is as follows : During the regime of our late head of state, Gen.
Sani Abacha, the government officials set up companies and awarded themselves
contracts which were grossly over-invoiced in various Ministries. The
NEW CIVILIAN Government set up a Contract Review Panel (C.R.P) and we
have identified a lot of inflated contract funds which are presently
floating in the Central Bank of Nigeria (C.B.N). However, due to our
position as civil servants and members of this panel, we cannot acquire
this money in our names. I have therefore, been delegated as a matter
of trust by my colleagues of the panel to look for an Overseas partner
INTO whose ACCOUNT the sum of US$31,000,000.00 (Thirty one Million United
States Dollars) WILL BE PAID BY TELEGRAPHIC TRANSFER. Hence we are writing
you this letter.
We have agreed to
share the money thus: 70% for us (the officials) 20% for the FOREIGN
PARTNER (you) 10% to be used in settling taxation and all local and
foreign expenses.
It is from this
70% that we wish to commence the importation business. Please note that
this transaction is 100% safe in all it's ramifications and we hope
that the funds arrive your account in latest ten (10) banking days from
the date of reciept of the following information by email: Asuitable
name and bank account into which the funds can be paid.
The above information
will enable us write letters of claim and job description respectively.
This way we will use your company's name to apply for payments and re-award
the contract in your company name.
We are looking forward
to doing business with you and solicit your confidentiality in this
transaction.
For security reasons
and in order to move forward quickly, please respond to me by Tel/Fax:234
1 774 8893 so I can bring you into the complete picture of this pending
project and provide more information as to the successful conclusion
of this project. The best response however, would be by telephone, so
we can discuss fully all issues needed to complete this venture in good
time, and successfully.
Thank you and
God bless.
Yours Faithfully,
Dr Gbenga Alfred.
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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 "Jim" who wrote:
Q: Why would
real estate agents spend the time and work with me after the real estate
sale has closed? They have their commission already in their pocket...where's
the incentive?
A: You're
correct. There doesn't appear to be any incentive to a RE agent after
the sale, to work with you referring or helping locate seller's that
carried paper. Allow me to disagree.
The incentive is
there if you frame it correctly.
Few of us go through
life without complaining at least once about a lack of "service
after the fact". We offer a paid for program to brokers in all
venues that at WORST, provides a service after the fact that will build
rapport between the broker and their past clients, clients that very
well COULD be future clients.
Here's how it works:
Broker spends a minimal amount of time assembling a mailing list of
past clients that carried paper. They drop that list into an overnight
to us with a handful of THEIR letterhead. We send a professional, tactful
letter that comes FROM the broker advising that they are simply constacting
them as a service to their valued clientel, and that should they ever
have a need for a lump sum of cash, they are associated with NCC and
we'd be happy to provide a no obligation evaluation of their note. We
pay for the printing, the postage, everything.
Why would a broker/RE
agent do this? Well for starters, it's a nice touch, totally unsolicited
that is well received. If nothing else it makes you look like a hero
for getting in touch with a past client. Don't forget, that past client
may always be a future client...who do you think they will think of
down the road when they need a RE Agent, Business Broker, etc.?
However, most RE
agenst need more incentive than that (sad to say). Here it is: We pay
a flat 2% fee to them should one of those leads decide to sell their
note.
Best of all it doesn't
cost these people a penny and it has lead to many leads and closed deals
for our company.
By Sharon on 3/25/02 10:41:52 PM :
Q. As for
the 2% referral fee, is it 2% of the note's selling price?
A. By Ed Lisogar on 3/25/02 11:03:30 PM :
Exactly...2% of
the funded amount.
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...And
finally
The only way to
walk away from the stock market with a small fortune is too have walked
in with a large one.
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