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| The Note Finder's Role | October 12, 2008, 9:50 pm | visits: 19 | wordcount: 715
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By Russell Dalbey
While there is much to learn when starting out in the private cash flow business many new note finders make the transition much harder than need be by failing to truly understand their responsibilities and functions as a note finder. By inadvertently extending themselves into roles they should not be playing and taking on additional responsibilities many note finders set themselves up for failure; trying to absorb the nuances of every facet of the business is a daunting task that may lead some to give up before they even start.
To have the best possible chance of succeeding as a note finder it is important to first understand what part the finder plays in the note deal itself. This can be broken into several basic steps. The first, and most important step, is locating a willing note holder. This can be done through a variety of different techniques for locating and contacting leads. The note finder must determine how they will market their business, as individual strengths and weaknesses should be considered when designing a marketing plan of action. Once a note holder interested in liquidating their incoming monthly payments has been found it is necessary for the note finder to interview them about the pertinent details and terms of the payments they collect.
It is at this point – after a note holder has expressed interest and given the note information – that many note finders fail to fully execute their responsibilities. It is critical that the note finder not make a common error by sacrificing accuracy for speed. Many new note finders don't realize that it cannot be taken for granted that a note holder knows the specific terms of the promissory note they hold. Far too often a note holder unknowingly gives inaccurate information. If a note finder fails to realize this and correct any errors prior to giving the note information to a buyer they are failing to perform one of the primary responsibilities of their job.
Putting inaccurate information in front of a buyer can make the buyer question the finder's thoroughness and professionalism, making it more unlikely they will choose to work with that finder in the future. It also slows the process down considerably as the finder is caught fielding additional questions and answers between the buyer and seller. All of this can easily be avoided if the finder takes the initiative to make sure the seller is accurate after the initial interview. If inaccuracies are discovered at that point the finder can easily clear them up with the seller before putting the information in front of a buyer. Taking the time to thoroughly check the information gathered from the seller creates a sense of competence and trust in the finder by both the seller and the buyer.
Once a finder is certain that the information given by the seller is an accurate representation of the note they should give it to their buyers. Though some note finders find it difficult to turn their control of the deal over, it is important that they do not involve themselves in either the buyer's decision to offer or the seller's subsequent decision to accept. If the buyer is interested in presenting an offer he will contact the finder, who will subtract his fees, and present the remainder to the seller. Because a note finder is not an agent representing the needs of either the seller or the buyer it is not appropriate to advise either party on the note or offer made – in fact, a note finder should take great care to avoid this situation.
Once an offer is accepted the finder's job is almost complete. After sending the buyer the appropriate paperwork to protect their work on the deal, the finder should provide the seller and buyer with a means to directly contact each other to complete the note sale. If everything moves smoothly, the finder can receive their fee in about a month. As finders become more experienced and develop their skill and reputation among buyers they may decide to expand their role from finder to buyer. By taking the time to master their role as finder and build solid relationships with buyers they will have a solid foundation from which to tackle the next exciting step in building their note business.
Russ Dalbey is the founder of the Dalbey Education Institute, started in 1995 to provide customers with the highest quality of wealth-building products, services and networking resources for buyers and sellers of real estate and all other cash flows.
Source:www.isnare.com | |
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