Broke or Broker? Realtors Turned Note Brokers
I had an especially exciting conversation with a Realtor recently . . . one of the few that totally gets how a little knowledge of the discounted note business helps put more real estate transactions together.
Instead of going broke with many of her colleagues, she’s a real estate broker, turning note broker as well.
So here’s what she’s doing . . .
She’s taking all these good buyers who can’t qualify for bank financing, and hooking them up with FSBOs who are willing to carry paper (of course, she does a lot of educating in the process).
She collects a consultation fee from her buyers after she qualifies them, and knows they have a decent down payment.
Then, she goes out and finds FSBO sellers who are having a hard time competing with all the short sales and REOs. She shows these sellers how they can carry paper (offer owner financing) and still walk away with cash when they let their note season for 1-12 months, and then sell it.
And guess who will most likely be brokering that note?
So, she may not make a big commission selling the property, but she’ll make a commission when she helps those sellers/note holders get cash for their note. And because she understands the note business, she knows how to help those sellers create a note that will sell for a decent price on the secondary market.
Fun, huh? She’s a visionary and a leader, and she’s passionate about helping the economy, and preserving the dream of home ownership for her clients.
Real estate brokers should be note brokers, as well. These markets dovetail nicely, and the specialized knowledge can make the difference between a broker going broke . . . or not.
Be sure to sign up for: Seller Financing on Steroids: Pumping Paper for Power, Peace and Profits. Defer capital gains & sell fast for top dollar, regardless of market conditions (and have a note that’s worth something!)