Should I Get Into the Note Business With All the New Laws Going Into Effect?
A lot of people want to know if the note business is right for them, as indicated by this recent email:
“As a new note broker that wants to get started with all these laws going into effect, is this a career path that will you recommend?” – Josephina
Like with anything, only go into the note business if you really love it. Knowing the note business helps you understand so many things . . . like how owner financing works. It gives you a much better sense of how the real estate market functions and gives you a lot more flexibility:
- You can buy property with owner financing
- Sell property with owner financing
- Buy notes for yourself
- Broker notes to others
- Become a consultant to sellers thinking about carrying paper
- Learn how private financing and basic underwriting works
It can take concerted effort and a couple of years before trying to broker notes pays off in a significant way, unless you’re already in a closely related business or you have favorable connections from the start.
I don’t believe the new laws are going to kill the note business… at least it doesn’t appear to be that way yet. Because loans are probably going to be harder and harder to get, there will be even more notes being created than ever before.
If you have a passion for the information, learn the note business! Just don’t spend a fortune doing it.