CASH FLOW BUSINESS TIPS

Tip #1
The last thing you want to do is "list" a note on the internet when looking for a buyer. You only want to take a note and submit it to an institutional funder. There is unlimited funding to buy notes. That means when you find a transaction, there is an institutional funder (a corporate funder, if you will) and they will buy your note. So what you never, ever want to do is put a note on the internet. You want to go right to the entity that will pay the most for that note. Now, a lot of people get into this business because they saw a late night TV program and infomercial. And that's where a lot of people get their first taste of the business. And the infomercial people do not want you to know about these institutional funders, because it's not in their best interest. That's something that they want to keep tucked away.

Tip #2
Now here's the reason that you want to use institutional funders. Funders are looking for us; they want us. And they will do most of the work; they will do what is called "due diligence", i.e. asking all of the questions that a knowledgeable note buyer would ask. Most people just starting out don't know what those questions are. So the funder asks them, and then the next time you go to a funder, you have a pretty good idea of what questions they will ask. More importantly, you will know the right questions to ask if and when in the future you buy notes for your own portfolio.

Tip #3
A reputable funder will never, ever circumvent you. Sometimes people ask me "what documentation do I use for a non-compete" and I reply that I don't use one of those from funders. I never see the reason to do that. When and if you need a document indicating that they won't go around you, then ask them for the document that they use. Let them supply the documents. The very first thing I said was that funders do most of the work, so they have the documents. So I'm never concerned about being circumvented. This is a very small business, and if the funders began to circumvent you, that word would get out immediately And they would be really out of business. And they need us.

Tip #4
As a matter of fact, let me talk about documents. I have never paid a nickel to an attorney for a document to do a cash flow transaction-- and the reason is what I call "learning and earning".  When you broker a note to a funder, they're going to use their documentation and they do this all day every day-- and their attorneys do this all day every day-- therefore the documentation they use is the best there is. Much better than you would get by going to a local attorney in your area who's never done a cash flow transaction.

Tip #5
You do not need to know what the funder's parameters are. Take your note to a funder, and if it's a bad deal they'll tell you. If you bring 3-4 bad deals to a funder, you'll have a pretty good idea what their parameters of NOT buying are. And knowing what a funder will NOT buy is just as important as knowing what they WILL buy. Once you bring 4-5 notes to a funder you're going to know what not to bring. You're not going to bring a second mortgage in default on a toxic dump site. That's not going to fly. Let them tell you what the guidelines are. You'll learn fast enough. Once again, I call that "learning and earning".

Tip #6
I just went over a whole laundry list of why you want to use a funder. Let me tell you why YOU DO NOT want to go on the internet and "list" a note. First of all, you have no idea (none, zero) who you're working with. Are they shopping your note? Are they taking your note to somebody else who takes it to somebody else? I've had situations where I'm brokering a transaction and the funder will call me and say "your party-- your seller-- is shopping your note with somebody else because we just got this note in here earlier.." If I'm the first guy in line, that's ideal. But if I call the funder and they say "we've already seen this transaction; this guy's shopping this deal", then I'm out of luck and that’s OK, because I don't want to get shopped.

Tip #7
You don't know-- if you list a note with some unknown person in cyberspace-- what their level of experience is. It's not unusual for people to list themselves as note buyers after taking some kind of introductory course and putting themselves out there as a note buyer, and then, once the note comes in, they flounder around trying to find somebody to buy it. Are they honest? You have no idea who you're dealing with. If they do something unscrupulous, it'll get you in trouble. There's really only one way to get in trouble in this business-- as a funder or a seller-- is if the person handling the deal (this unknown person) does something they shouldn't do. Then you can be sure either the funder or the seller of the note somewhere along the line is going to be possibly looking at you. And that's the only risk in this business. Think about this: Let's say this person ends up finding an institutional funder. You can go directly to the funder (and we can direct you who to go to) and make the entire fee. Why split it with somebody else?

Tip #8
Now the real risk comes if this unknown person in cyberspace that you're "listing" a note with sells to a private person. (the last thing you want to do as a note broker). One very good reason for dealing with institutional funders is: they know more than you. They do the due diligence. If you deal with a private person, it's your obligation to do the due diligence. If the person who you've listed this note with doesn't know what they're doing and/or they don't do the right due diligence, the investor could come back to you in a month or two or a year or 2 years later. That's not a problem when you use a funder. Once again, the biggest benefit in the business is the ability for you to work directly with funders-- especially one who will hold your hand throughout the deal.. Don't give that away.

Typically we recommend Charter Financial They are funders and they are mentors and they've got a really inexpensive program called Building Wealth Together". So there's no reason to spend $7000 on a seminar where the selling point is they're going to tell you about the funders.

Tip #9
It used to be that the only cash flow that we could make a fee on was a real estate note. That's no longer true because of institutional funders. According to the federal reserve, today there's about $600 billion (that's billion with a "b") in real estate notes out there. That's a big number, but it's almost nothing as compared to non-real estate notes (i.e. lawsuit awards and lotteries are a big part of our business ---and there are trillions of dollars worth of those out there. So, you're never going to run out of product. It's just impossible. You should also have the ability to broker specialty cash flows (like delinquent debt, for example, which is huge today-- or life settlements or factoring. You should have at least one of these in your basket of tricks. It makes you a much more effective broker and makes your business much more profitable.

Tip #10
I believe in marketing to financial professionals. Not only can you do your delinquent debt and life settlements and factoring through bankers and life insurance agents, but what we're always looking for are people who deal with other people's financial statements. And they all do that. Getting other people to look for cash flows for you it is really where the big money comes into play. It's really a part of what I call repeat referral business. You want to set up a situation where you do not get just ONE lead from somebody-- you get MULTIPLE leads. One of the ways to do that is deal with financial professionals like attorneys-- or, if you're dealing with life settlements, life insurance agents-- and delinquent debt, with bankers and other funders. You're bringing other people on board. And that's the key to the big money.

Tip #11
Now understand this: most people who get involved in this business get involved from the telemarketing TV commercials, and that's where they learn about this business so they don't know about the institutional funders like Charter Financial and the "Building Wealth Together" program, but you do. So you can really put people right in the business. For example, people who are advertising "I buy mortgages" (I'd say 80% of them) have absolutely no clue as to what to do... they're hoping to get a mortgage lead and they're going to put it on the internet (which, I hope, I've convinced you is something you do not want to do). You can go right to those people, for example, and tell them that you are the note buyer-- you now have the ability to go directly to the funder to the people who will pay most for the loan. And that, once again, is the beauty of the business. So you can start working with others immediately.

Tip #12
There are 2 ways to market: #1 is every single idea that you've ever heard from us or anybody else. That's in column a.
And, once again I'm going to be really careful and tell you this is not for everybody, but column b is speaking. Joel points to the fact that when he started to make obscene money (big money) is when he started to speak. Now, speaking has 2 challenges: one is you have to feel comfortable about getting up in front of a group and doing a talk (i.e. before real estate groups, etc). If you do have that ability, then you can use it to make an enormous amount of money and get a lot of people out there looking for cash flows for you.
The 2nd challenge is having the content. So if you want to get in the speaking business and have the ability to get up in front of an audience and speak and all you want is the content and how to market your program, Turning Paper to Gold is the way for you to go.

Tip #13
The other avenue that I recommend for people is public relations. When you say something good about yourself, that's one thing. But when it's written in a newspaper, website or article, that's something else. Public relations is something that I talk about ad nauseam to people and most people for some reason or another just don't get it. But one of the things that I did was to write articles that were published in local news, "for sale by owner" publications, that kind of thing-- and the hardest part about it, of course, is writing the article-- and I was no writer, so I got at the time a college kid who could do it. Today I would use a marketing company. And we've got a program called Getting Published. I would recommend that to anybody who wants to use PR (public relations) as part of your marketing campaign

Tip #14
Almost everybody who gets into this business doesn't have experience. So what you need to do is find notes and then go to a funder. The funder will basically teach you how to do this and you'll learn and earn. Now you also have to be realistic; if you have no money, no job, no income-- not only would I recommend that you not get in this business, I would recommend that you do something to get your financial situation resolved because, in fact, what is happening when you get involved in the cash flow business is that you're getting involved in a business.  Now, you don't have to spend $100,000 for a franchise or anything close to it; you can run this business really from your kitchen table. What I'm recommending you should NOT do is be spending thousands of dollars on educational materials. Do not take a 2 or 3 day seminar for $4 or 5 or 10 thousand dollars. 90% of what you're going to learn will basically be useless, or it’ll be useful but something you can learn for free right there on the street using institutional funders.

Tip #15
One of the other red flags that I see all the time is: you should not be constantly telemarketed to buy more and more. If you invest in a program from somebody and then you get a phone call and they try and sell you something else that's typically more money-- and then something else which is really more money, they'll suck you dry. So you don't have to spend $ thousands; you can literally get in this business for under $300. Now, I'm not saying that's the best way to get in the business (it's better to have a high school education than  grade school and even better to have college and better to have a post graduate and the higher you go up the education scale, typically the faster and more money you can make) but you can start with that. Many people have. I know that if you were to invest in every single thing on NoteInvestors.com (and I'm not suggesting that's what you need to do but if you did) you couldn't spend 2 or 3 thousand dollars.

Tip #16
There are many ways for you to market your note business without investing lots of time or money. One way is to do research at your local county courthouse. You can (for free) find all the Real Estate notes that have been recorded in your area. Your only investment will be the time it takes you to figure out how the system works. You can then do the research yourself-- or, better yet, hire someone (a retiree, high school student, etc.) to do it for you.

Tip # 17
Once you obtain the names of note holders from the courthouse records, you will want to start your marketing efforts. The big mistake that most note brokers make is the frequency of their marketing efforts. An age-old marketing adage is: marketing produces best results when it is done well and done frequently. One marketing effort is not enough. The most effective marketing plan proceeds as follows: your first effort should be a letter with your note brokers brochure enclosed. A different marketing piece should go out 30 days later and then every 90 to 120 days. If you want note holders to remember you and to keep your information this simple plan will help do the trick.

Tip #18
There are two primary markets that you can target-- individual note holders or financial professionals. If you have limited time and/or money (that includes just about everybody), the choice that you make is critical. Most new note brokers make the wrong choice- individual note holders. You want to market to financial professionals. No matter how satisfied an individual noteholder is with your services, they cannot refer you more business. Financial professionals handle the majority of cash flow transactions. In the first year of business, your goal is to establish a relationship with at least one financial professional who can refer 2,4,6 or more transactions to you per year. This will provide you a very nice part time income working part time.

Tip #19
The big five financial professionals are attorneys, accountants, financial planners, mortgage brokers and real estate brokers. You should start with attorneys and financial planners. You can find them in the yellow pages or services directories. Start by making a list of between 250-300. This does not take much time, and you can build your list as your schedule allows. Pick out a geographic area (perhaps within a 50 mile radius of where you live). Get your hands on a good industrial directory, (one that lists " services" as opposed to "manufacturing" firms)  and contact all of the financial planners and legal services listed there (locate the category within the directory for " financial services/planners"). These firms tend to be small, with easily identifiable principal owners (Pres., VP, etc). Send a targeted, professional letter to these individuals explaining how you can help their clients. You WILL get calls, and close transactions as a direct result.

Tip #20
Every successful note broker (the ones making BIG money) shares one commonality - they know how to market their business. Your marketing does not have to be difficult or expensive. You must establish a long-term marketing plan. The key is "long-term". If your mindset is "short-term" (get rich quick) you will have a short-term frustrating career. Every successful note broker is in for the long term. For you to be successful in the long run your marketing program should be designed with three goals in mind: Keep, create and repeat.
Keep-use marketing pieces that note sellers do not discard.
Create Urgency-your marketing plan must be designed to create urgency- motivated note holders are the only ones who sell.
Repeat referrals-it is imperative that your marketing be designed so you do multiple transactions with note selling sources.

In the next tip we will start to cover: keep, create and repeat in more detail.

Tip #21
In the last tip, I outlined the three goals to a successful marketing plan: Keep, Create and Repeat.
"Keep". Let’s continue with that theme. It is essential for your success that the note holder keep your marketing material and your marketing PROGRAM must be designed with that in mind. As a direct marketer, your goal is to increase the number of note holders who do keep your materials. Just a small percentage increase of “keepers” will have a dramatic impact on your financial success. Let me outline a plan for you;(1) send a letter and a brochure, (2) send another mailer in 30 days and (3) send a mailer (or even better, a newsletter) every 90 to 120 days. This plan is based on one of the best and oldest marketing adages I ever heard - I suggest you make a copy of this and look at it every day – here goes – Marketing produces best results when done well and done frequently.

Tip #22
This series started with the outline of the three goals of a successful marketing plan: Keep, Create and Repeat. Please refer back to previous tips. We will continue with  - Keep, marketing pieces.
The marketing piece I like to use is in the form of a cartoon. Cartoons are read, and if it ends up in the prospective note seller's discard pile (a distinct possibility) your message is delivered. It only takes 7 seconds to read your flyer and we live in a society that has a 7 second attention span. Your number one goal is to get your message delivered-you have just accomplished that goal. Goal number one A is for the note holder to keep what you sent. Experience shows that note sellers tend to keep these cartoons more often than a letter.  A "ps" on the bottom instructing the recipient not to throw away your marketing piece works well. I have always wondered why. I never have come up with a good answer. All I know is putting a “PS” on any communication will get the desired results.

Tip #23
It’s no secret that the key to profits and success in business is marketing, marketing and more marketing. And the key to successful marketing is getting your name and message in front of your prospects and keeping it there on consistent basis. Newsletters, containing information that your prospects find useful and informative, are one of the most powerful and effective marketing tools you can use to keep your name and message in front of your prospects on a regular basis. Developing a successful and affordable newsletter marketing program is lot easier than you think. Find out how.

Tip #24
In spite of the fact that newsletters have a proven track record as powerful image builders and excellent lead generators, many note brokers/cash flow professionals are reluctant to use them. That's because they wrongly believe that developing a good newsletter program is complicated, expensive and time consuming. However, nothing could be further from the truth. In fact, you can get and maintain an extremely effective newsletter program that will carry you throughout an entire year for a whole lot less than you think. Find out how.

Tip #25
If you’re really serious about building a profitable cash flow business, then you need to consider implementing your own newsletter marketing program. Newsletters will help you develop a positive professional image for your company, keep your name in front of your most important prospects, generate leads and new business. A proven way for you to include this powerful tool in your marketing arsenal is to use an affordable, professionally prepared newsletter marketing program that you can personalize for your business. In the long run, you will save time and lots of money using a proven newsletter marketing program as opposed to trying to do it from scratch. It never pays to “reinvent the wheel.” If you are interested in learning more, we strongly recommend this program.

Tip #26
If you review the previous tips, you will have an understanding of the resources needed to accomplish the "keep" step of the marketing process. In review, "Keep" was defined as using marketing pieces that note sellers do not discard. The installation of the key components – Letters, Flyers, Post Cards, Email and Newsletters will help you accomplish your business and financial goal. Success comes with long term planning; which leads me to the second part of Keep. Keep includes marketing over and over for long periods of time. Note holders must get used to seeing your marketing pieces over and over again.

Tip #27
Use a “P.S.” at the end of your marketing piece. This simple trick will ensure that more prospects “keep” what you send. Here is an example: "P.S. Even if you do not need a lump sum of cash today, tomorrow could bring unexpected needs or opportunities. Please keep this letter with your mortgage note documents." It is amazing how well this works. We have had note sellers send us document packages with copies of our letter and flyers. When we inquired why they had so many copies, the reply was “you told me to keep them, didn't you?”

Tip #28
This tip sequence on marketing your note business began with an outline of the three steps necessary to achieve success. They are:
Keep-use marketing pieces that note sellers do not discard
Create Urgency-your marketing plan must be designed to create urgency- motivated note holders are the only ones who sell.
Repeat referrals-it is imperative that your marketing be designed so you do multiple transactions with note selling sources.
For you to prosper in this business understanding and implementing the next step, “creating urgency”, is critical. Next tip will move on to the topic of creating urgency.

Tip #29
This tip sequence started with the outline of the three goals of a successful marketing plan: Keep, Create and Repeat. Please refer back to previous tips. We will continue with  - Create.  
Let us start with a simple but amazing fact. Most note owners have little or no knowledge regarding the asset they own. Many note holders took back financing not because they wanted to but because they had to. In any event in the vast majority of cases the note they are presently collecting payments on will probably be the only cash flow they ever own. In many cases the note they own is one of their most important (if not the most important) financial assets. So you have a situation where someone owns something they really didn’t want, doesn’t know what to do with it and doesn’t understand what they own. You are probably familiar with the old expression – ignorance is bliss. That may be true in many cases. However when it comes to owning a note ignorance can spell disaster.  Once you understand this phenomenon, you will be in a position to close many more transactions and you will be helping amateur note holders. You will accomplish this by creating urgency.

Tip #30
This tip sequence started with the outline of the three goals of a successful marketing plan: Keep, Create and Repeat. Please refer back to previous tips. We will continue with  - Creating-Note Owner's Manual.
One of the most successful marketing resources which will help you SUPERCHARGE your note business is something called a Note Owner’s Manual.  I am talking about is an owner’s manual for people who own notes. It is similar to the owner’s manual you get with a car, appliance etc. What struck me about this idea is that people do not throw away owner’s manuals and it is an authoritative written source. The written word is a powerful tool. Years ago there was a segment on the TV show CANDID CAMERA. They posted a sign on the Delaware state line- DELAWARE IS CLOSED TODAY-DO NOT ENTER.  Motorists read this sign and pulled off the road. This is an example of the power of the printed word. My Note Owner’s Manual, like any other owner’s manual is a primer on what note owners need to know about the asset they own. The Note Owner’s Manual is easy to read and to understand. Scattered throughout the Manual are highlighted areas called helpful hints. These helpful hints work like magic in doing the one thing that is essential if you want to make money in this business and that is create urgency
Next tip will continue with the topic of “creating urgency – Note Owner's Manual”.

Tip #31
This tip sequence started with the outline of the three goals of a successful marketing plan: Keep, Create and Repeat. Please refer back to previous tips. We will continue with  - Creating Urgency-Note Owner's Manual. 
One of many helpful hints deals with insurance.  The Note Owner’s Manual discusses in detail the importance for the note owner to be covered by insurance. This hits a lot of hot buttons. It is amazing how many calls you get from folks who now have an urgency, at least to get more information. "Why do I need insurance" they want to know; "didn’t my attorney take care of this", etc.?  I have made the following statement to many note holders (and I mean it,) “do not go to bed tonight until you know you are adequately covered by insurance”. I have even helped place insurance binders for note owners. But the important thing is you never would have had the conversation about this unless they read about it in The Note Owner’s Manual. It is almost impossible to create urgency in an owner who is naive and uninformed, who thinks the only thing they have to worry about is depositing the payment. It is easier to deal with an informed seller. One who has some understanding about the need for insurance, record keeping, legal issues, inspection of the collateral, etc. (of course, these topics are all covered in The Note Owner’s Manual).
Next tip will continue with the topic of “creating urgency – Note Owner's Manual”.

Tip #32
This tip sequence started with the outline of the three goals of a successful marketing plan: Keep, Create and Repeat. Please refer back to previous tips. We will continue with  - Creating  Urgency-Note Owner's Manual. 
If the potential note seller is informed and still wants to keep their note, that’s fine. But you will soon discover that many hard core ‘I won’t take a discount’ types become much easier to deal with.
My original goal in using the Note Owner’s Manual was for the long term marketing benefits. I never anticipated the short term immediate results that this resource  generated. I have actually had note owners call in a panic seeking more information about various topics covered in the Note Owner’s Manual. Talk about creating urgency- wow! There are  many additional benefits you get when you use this powerful resource. Getting potential note sellers to remember you is critical if you desire long term success. The Note Owner’s Manual works as good as or better than any marketing tool in achieving this goal. My marketing motto is “give them something they will keep” (See previous tips). All your marketing efforts are wasted if the note seller does not have your name and phone number when it comes time for them to sell. Because note owners as a rule keep these manuals, you have achieved a major marketing goal. Even better, people will actually pay for your Note Owner’s Manuals. If they paid you for it they will almost certainly keep it.
Next tip will continue with the topic of “creating urgency – Note Owner's Manual”.

Tip #33
This tip sequence started with the outline of the three goals of a successful marketing plan: Keep, Create and Repeat. Please refer back to previous tips. We will continue with  - Creating Urgency-Note Owner's Manual. 
To SUPERCHARGE your cash flow business, you must have entree to the professional market. Note Owner’s Manuals are your ticket. Distribute them to financial professionals such as attorneys, financial planners and real estate brokers. This is one of the best ways I have found to get your foot in the door. This resource places you way above your competition and gives you an important competitive edge. This is not an original idea. Why are not more note brokers using Note Owner’s Manuals?  I believe the answer is simple. It takes time, effort and money to produce this asset. It took a lot of time to create a resource that can be used in all markets i.e., mortgage, trust deed, land contract etc. and is also economical to produce. I would encourage you to get started now. If you do not want to go through the effort of creating a Note Owner’s Manual immediately you could create a marketing letter with a theme such as -Ten Things Every Note Owner Must Know. That would at least get you started. 
I hope you use the Note Owner’s Manual idea it will help you to SUPERCHARGE your note business and dramatically increase your income. The benefits of incorporating a Note Owner’s Manual into your marketing plan are huge long and short term. For creating urgency and generating income this little gem cannot be beat.

If you want to learn all about how to implement this idea, you need to invest in Joel Cassway's SuperEarnings program. Call Joel using your Consulting privileges and he will guide you on this. He loves talking paper.
Next tip will continue with the topic of “creating urgency –Appraisals”.

Tip #34
To become successful in the discounted note business, you must have the ability to reach note holders by all different means. It is also mandatory that you establish relationships with financial professionals i.e. attorneys, accountants, etc. Almost every cash flow transaction goes through an attorney or accountant. To be successful, you must be able to get the attention of these professionals. One strategy that has been very successful is the note appraisal. Note appraising can (1) give you immediate credibility, (2) increase short-term profits and (3) add to your long term profits. A very powerful trifecta.

Tip #35
This tip sequence started with the outline of the three goals of a successful marketing plan: Keep, Create and Repeat. Please refer back to previous tips. We will continue with Appraisals.
Market research indicated that there was a fair amount of note holders who needed to know the value of their loans. They required a valuation for partnership purposes, estate planning, business dissolution, divorce settlements, etc. Almost everybody who has such needs almost always requires the assistance of a financial professional. When you are wearing the hat of an appraiser, you have dramatically improved your status above all other note brokers (AKA your competition). Once you discover this source of business, it is amazing how much of it exists.

Tip #36
I first instituted this note appraisal program for the long term potential. It seemed natural that anyone who paid you for an appraisal would naturally come back to you when it came time to sell the loan and that has proved to be accurate. What I did not anticipate was how many note holders would sell now once you had the opportunity to explain all the potential options. It is astounding how much easier it is to deal with a note holder from your elevated status as an appraiser. The appraisal itself is valuable and extremely accurate. You can tell a note owner exactly what their note is worth to a ready, willing and able buyer. To do this you need to do is get a quote from an institutional buyer.

 If you are interested in how to become a Certified Note Appraiser, you need to invest in Joel Cassway's SuperEarnings program. Call Joel using your Consulting privileges and he will help you to implement this. Again, he loves talking paper.
Next tip will continue with the topic of – Appraisals”.

Tip #37
This tip sequence started with the outline of the three goals of a successful marketing plan: Keep, Create and Repeat. Please refer back to previous tips. We will continue with - Appraisals.
When I first started to use this powerful marketing tool, I issued a one page Opinion of Value on letterhead and, to get started. I did some of these for free. The appraisal has since turned into a seven-page document with attachments. When finished you have photographs of the security, copies of all pertinent documents and all the necessary information about the loan. To increase my credibility, I thought it was a good idea to be certified as a note appraiser. Subsequently, I was certified by the American Appraisal Institute of Privately Held Notes and Mortgages. Never heard of them, you say?  That is because I am the founder, CEO, maintenance department, etc.

Tip #38
I like Note Appraisals as a marketing tool because it serves several important functions. It gets you in front of note holders in a way that your competition does not; elevates your status; enables you to more easily deliver your message; and you can get paid whether there is a transaction or not. It is my opinion that for you to be successful in the note business today, you must do business with financial professionals. In general, a financial professional is anyone who, as part of their practice, reviews clients’ financial statements. Professionals who fall into this category include but are not limited to: attorneys, accountants, financial planners, mortgage brokers, bankers, etc. You should concentrate your efforts on attorneys and accountants. Almost every cash flow transaction today goes through the hands of one or both of these financial professionals. If you can establish a relationship with one of these professionals who can refer to you two, four, six eight transactions a year you will have a very nice part time income working part time. When this number reaches five financial professionals referring you business you will have a full time income working part time.

Tip #39
The most powerful and important benefit of note appraising is to get you in front of these financial professionals in a way that eludes your competition. In essence, you are working with them professional to professional. These professionals will not only have clients who need notes appraised, but will also have clients who need to sell their cash flows. This is a win-win for everyone. Establishing relationships with financial professionals can put you on the fast track to success in the cash flow industry. When working with financial professionals, it is imperative that you act like a financial professional. If you market yourself as a note appraiser, you must remain consistent. That means you must take off your a note broker’s hat and put on your appraiser’s hat. When marketing a particular professional you cannot cross-market. This means you cannot send a marketing piece one time as a note broker and the next time as a note appraiser (stay consistent). Choose how you want to market someone and stay with it.

Tip #40
If you handle yourself in a professional manner, you can increase your income and prestige in several ways.  (1) Note Appraisal fees are substantial for the amount of time it takes to complete the required work. (2) Some appraisals will turn into brokerage situations either almost immediately or, more possibly, in the future. (3) Some financial professionals are in a position to refer numerous transactions (repeat referral business) per year. (4) Financial professions who are satisfied with your work will refer their colleagues to you-- double repeat referral business. You must also be impartial and make an appraisal that indicates the highest and best value of the asset (cash flow) you are evaluating. There are important advantages to doing this. Once you earn the trust of the financial professional, they are in the position of referring many different clients and cash flows.  They can make most of your problems go away and it is possible to broker a note that you appraised if you handle the transaction properly (more about this in the future).

Tip #41
The Note Owner's Manual (see previous tips) becomes a very important and powerful ingredient in your appraisal program. You want to get this powerful tool into the hands of  “appropriate” financial professionals. The Note Owner's Manual will do a much better job of explaining what you do (broker notes) than you can. The Owner's Manual will accomplish three things; (1) educate the professional, (2) educate the professional clients and (3) create urgency to sell. I suggest you give Note Owner Manuals to “appropriate” professionals – those who you have done business with and those who show a real interest in learning what you do.

Tip #42
How are note appraisals priced? You are in uncharted waters when it comes to pricing, because you are practically a pioneer in the field. Almost certainly, nobody else in your area is appraising notes, which is why you want to. Remember- the main reason for appraising notes is to have an advantage over your competition. Appraisals gives you access to financial professionals-- and financial professionals are the best source of repeat referral business. And repeat referral business is the secret to making a substantial income. This is not to say that the fees you make from the physical appraisals are not important – they certainly are. The best guideline for fees is to determine what a real estate appraiser would charge for a like kind appraisal. If you were valuing a note on a single-family house, find out what a real estate appraiser would charge and use that as a guideline.  Pricing will change from area to area. This is important to keep in mind when you are doing an appraisal out of your area.

Tip #43
There are two major decision areas when pricing and charging for a note appraisal referred by a financial professional.
(1) It is my opinion (learned from experience) that it is wise to conservatively price the appraisal you do for the client of a referring professional. It is natural to want to earn a “nice and fair” fee for the work you do and you should. Keep your fee reasonable. In my opinion, you should charge less than you would an individual note seller who is going to be a one-time client. There is not a much competition in the note appraisal business-- but what you do not want to happen, ever, is for your referring professional to find that your fee is substantially above another appraiser they may have found. Remember you are in this for the long haul, and want many repeat referrals as well as referrals to other financial professionals. I have been asked about doing free appraisals as a way of establishing a relationship with a financial professional. This is something you need to think long and hard about. Under certain conditions, it might be ok to do a complementary appraisal to help establish a relationship.
Next tip, I will discuss how to handle the situation when an appraisal client turns into a brokerage client.

Tip #44
The second major decision area is what to do about your fee when the note holder decides to sell. In previous tips, I addressed the fine line we walk regarding converting an appraisal to a brokerage transaction. If the note holder decides that they would like to sell immediately, I think it is fair and reasonable not to charge for the appraisal. Your brokerage fee will be more than fair compensation. If the request for your brokerage service comes a year after the appraisal, there probably shouldn’t even be a discussion regarding the fee you already earned. I believe the cut off time should be somewhere in the 90-day area. Everybody has to make his or her own policy. You should be flexible. Remember one of the major reasons for doing appraisals is to build relationships.

Tip #45
This tip sequence started with the outline of the three goals of a successful marketing plan: Keep, Create and Repeat. Please refer back to previous tips. We will continue with a summary of what you have learned over the last several tips.
You must establish a long-term marketing plan. The key is long term.  There are three major components that make up a successful marketing plan. A plan that will bring you financial success in the discounted note industry.
(1) Keep-use marketing pieces that note sellers do not discard. One major key to success is for noteholders to retain the marketing materials that you provide to them. You must also keep marketing over and over again to the same person. There is no substitute for repetition.
(2) Create Urgency-your marketing plan must be designed to create urgency- motivated note holders are the only ones who sell.
Your marketing plan must be designed in a manner that educates noteholders regarding the asset they own. Very few note owners have any idea about the complexity of their asset.
(3) Repeat referrals-it is imperative that your marketing be designed so you do multiple transactions with note selling sources. Marketing individual noteholders exclusively will not get you any additional business. Adding financial professionals to your marketing list is essential.

#46
The most successful note brokers have long known and understood how to use the power, prestige and credibility of public speaking to grow their businesses. They know that public speaking is more cost effective because it lets them deliver their message to many prospects at one time as opposed to having to make many one-on-one presentations. They fully understand how public speaking can enhance their professional image, position them as a leading expert in the field by increase their professional standing and credibility. Find out more.

#47
An elite group of super-successful note brokers know how to get in front of an audience of real estate pros, accountants, attorneys and other qualified financial professionals and make a dynamic and persuasive note presentation - a presentation that shows these targeted groups of financial professionals how they can earn more for themselves while helping their clients. Find out more.

#48
What all of the heavy hitters in the note business have discovered is that speaking to groups of highly qualified professionals is a surefire way to find more brokerable notes, close more deals and make more money. They know speaking to these groups works, and they do it every chance they get. In fact, the most successful note brokers never miss a chance to give a powerful, informative and persuasive speaking presentation to financial professionals who can refer them business on an ongoing basis. If they can do it - you can too! Find out more.

#49
One of most powerful image building, business-getting techniques is to have an article with your name as the author published in a newspaper, magazine or newsletter, or on a web site. Everyone knows the benefits of getting published are enormous. First of all, when an article appears with your name in the "byline", you establish instant credibility. You're immediately perceived as a leading expert in your field, a consummate professional, a person who is knowledgeable, reliable, established and respected. Learn more

#50
Getting a few articles with your name as author published in well-circulated news feeds is an extremely impressive way to get noticed and achieve favorable recognition. Not only does it get your name out, it demonstrates that you know what you're talking about. The implication is that the publication in which your article appeared has effectively endorsed you as its expert on the topic. If it got published, it must be good. Getting published immediately positions you as a leader in your field and gives you a decisive competitive edge that you can use effectively to increase your business. Find out more

#51
Besides attaining immediate recognition as a leading expert in your field, getting your articles published has many other benefits that will help you grow your business. Once your article has appeared, it automatically becomes a very powerful business-building tool you can use in marketing and public relations efforts. For example, you can reprint your article, include it as part of your public relations press kit, and make it a part of your general business promotional arsenal. You can send it out to your current clients as part of a regular mailing. You can include all of it or part of it in your newsletter. You can post it on your web site in for visitors to download and print, and include with your handouts at out at your next speaking presentation. Find out more

#52
This series started with the outline of the three goals of a successful marketing plan: Keep, Create and Repeat. Please refer back to previous lessons. We will continue with a summary of what you have learned over the last several tips.

You must establish a long-term marketing plan. The key is long term.  There are three major components that make up a successful marketing plan. A plan that will bring you financial success in the discounted note industry.

(1) Keep-use marketing pieces that note sellers do not discard. One major key to success is for noteholders to retain the marketing materials that you provide to them. You must also keep marketing over and over again to the same person. There is no substitute for repetition.
(2) Create Urgency-your marketing plan must be designed to create urgency- motivated note holders are the only ones who sell.
Your marketing plan must be designed in a manner that educates noteholders regarding the asset they own. Very few note owners have any idea about the complexity of their asset.
(3) Repeat referrals-it is imperative that your marketing be designed so you do multiple transactions with note selling sources. Marketing individual noteholders exclusively is almost a sure path to failure. It is too expensive and there is no way to get additional business. Adding financial professionals to your marketing list is essential