Tuesday, March 30, 2021

Marketing For Notes - Note Investing 101


Wondering how to find real estate notes? In this session we take marketing head-on by covering (and grading) the five most common methods for attracting notes: Direct Mail Ads Online / Internet Marketing Referral Marketing / Networking / MeetUps Creating Your Own Notes We’ll also cover an often overlooked technique we call REVERSE Ad Marketing. This is a great strategy for a smaller marketing budget or for anyone wanting to take action immediately. Which note marketing method has the ‘best bang for the buck?” Join us Tuesday, March 23rd to start "Marketing for Notes"…and bring your questions as the session is LIVE! Discovering Notes - Note Investing 101 - https://youtu.be/pjtPZBUTU4M Profiting From Notes - Note Investing 101 - https://youtu.be/kGqZ1QJ_9lA https://www.NoteInvestor.com/101 #NoteInvesting #MortgageNotes #RealEstateInvesting Timestamp: 0:08 - Introduction: Marketing For Notes 0:41 - Disclaimer 1:37 - www.noteinvestor.com/101 2:13 - Main Area or Sources of Deals 2:43 - Top Five Ways To Find Notes 2:55 - Direct Mail 9:41 - Ads 13:15 - Online/ Internet Marketing 18:46 - Referral Marketing/ Networking/ Meet-Ups 22:48 - Do you use SEO for your website? 24:23 - How would you rate Online Networking? Do you find that effective as well? 25:05 - Where is the best place to buy a list of note sellers and what criteria do you use? 26:54 - Creating Notes 28:46 - Reverse Ad Marketing 32:12 - Sites for Buying Notes 32:46 - www.noteinvestor.com - Best of 2020

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Fred Rewey (00:00):

Hey everybody. Welcome to note investing 101. Which is kind of our mini-series. I'm Fred Rewey.


Tracy Z (00:16):

I'm Tracy Z. We're glad to have you here today. We're going to talk about marketing for notes. That's one of the things people always ask us, right? How do I find notes?


Fred Rewey (00:26):

It's kinda like, you know, cooking without food. I mean, you need to have the other part of it. 


Tracy Z (00:32):

Before we start that.  We're supposed to do a little bit of housekeeping. We always jump ahead of ourselves.


Fred Rewey (00:38):

Last episode we even forgot it. We need a disclaimer because it's the internet. People do weird things. Here you go.


Tracy Z (00:46):

We just want to let you know, we're not trying to sell you a security. We're not attorneys. We don't offer legal or financial or investment advice, but definitely use the services of those providers. Past performance is no guarantee of future results. All investments have risk. We are checking to you for informational purposes. Things that we've learned from doing note investing for 50 combined years. I started in 1988. You were early 90's.


Fred Rewey (01:12):

We're not attorneys, but we're glad to share the information that we've had with the combined over 50 years experience. If you missed any of the other ones, you can still catch the replays before we take them down. This one is on marketing. We're going to talk about marketing for notes.


Tracy Z (01:32):

Exactly. Marketing for notes. If you want any of the handouts or things that we're talking about go to note investor.com/101. You can sign up to get the replays. Also to get the five ways to cash in on cashflow notes and the 21 tips. Also information about all the things that we offer. We encourage you to do that. 

How do you find notes, as Fred mentioned, you need food to cook. To do all these cool strategies that we've been talking about, you need to have deals. Deal sourcing is very important. As we talked about on our very first investing in notes introduction, there are main areas or sources of deals.  You've got your non-performing notes, which are more like bank notes and hedge funds. You've got your seller finance notes. We're going to talk a lot about marketing for seller finance notes today. That's where a seller sells the property. Let the buyer make payments over time and then decides to sell those notes. Then you've got creating your own notes. We'll talk about that as a marketing method as well today. 

Which one do you want to kick us off?


Fred Rewey (02:37):

We're going to go over the top five.  We may actually try to sneak in a few extras before the end of the show, but we're going to talk about the top five ways that people market and find notes. Spoiler alert at the very end we are going to tell you where you can  go online and  see them. But it's going to be at a slightly different price. 

Let's do direct mail. It's one of the longest methods for a while. I mean it's pre-internet. It's still valid. People still get stuff in the mail. What we're going to do is we're going to break down each one of these  different areas and we're going to give it an overall grade. 

We're going to talk about how effective it is. If it's a good cost or not. How much time it takes to do it. If there's a lot of competition in it. We have these little cards where we can give them grades and we don't always agree by the way, just so you know.


Tracy Z (03:30):

Direct mail is something we love to hate and why do I say that? Well, when you're receiving it? What do you do so often with a piece of direct mail? You just throw it in the circular file. Well, if it's something that really intrigues or interests you, yes, but most of us were just sort or throw it away. That is the challenge with direct mail. The positive with direct mail in our market is at least it's about 6% of most real estate transactions. If we're going to send a direct mail to somebody who's taken back a note, we can actually buy a list of people that sold with seller financing we can target. If we were just to send a direct mail to every person, every household in a zip code, that would be a horrible marketing method because less than 6% of those would hold a note. If you look at the averages, obviously you've got a target, your marketing message. You just can't blast it out. You can't do shotgun marketing in the note business. You really have to think about whether I'm going to fine tune and target my marketing method.That has a lot to do with whether you have good results or not. With direct mail, you can buy a list of people that sold property and took back owner financing.


Fred Rewey (04:47):

What you do is you basically buy the list. To know who they are like Tracy said. If you shotgun market, then 96%, 95%, 94%, well it's based on the area. But it's not gonna be applied, you're going to get the list. Then basically you're going to either mail them a postcard or a letter. Our method is normally typically the first round to mail them a letter. The second round is to then mail and postcards afterwards. You're not going to get a response immediately. Some people will respond, but  it's a numbers game. 

Now let's talk about the fact. It's cost. If we're talking about direct mail, is it effective? We're going to decide if it's highly effective, medium effective, or it's not very effective. For me direct mail, I would say  it's medium effectiveness. 


Tracy Z (05:40):

But why is it medium effectiveness? You're thinking, well, why wouldn't, if I know I'm mailing to somebody who has a note, why wouldn't it be higher effectiveness? Well, not everybody who receives it needs to sell their note. So oftentimes we had it where they file it away. Cause we always put a little message on there, you know, if you're not ready to sell your note, now save this for future reference when you might need it. a lot of times you will file the way or they'll just throw it away. That is why, as Fred mentioned, you can't just mail to somebody once and think it's going to be effective because it won't be. We  usually start with the letter and then the postcard. We do every three to four months cycle when  we are mailing them. When you talk about traditional marketing, you talk about touch points. Someone may be interested in selling and in note marketing as well.


Fred Rewey (06:31):

There's a category we're not covering, which is basically timing. We can't effectuate the timing here. Basically we are mailing a letter or a postcard hoping to hit them at the right time. Which is why we have to do multiple. That's a medium for us. Cost. It's going to be high. It's expensive as the postage stamp keeps going up in price or just buying supplies, names are very reasonably priced.



Tracy Z (06:55):

You can get them between 12 cents, 15 cents. It depends on the number of names you buy, but somewhere between 12 and 18 cents a name. That part is cheap but if you think about mailing a letter when you add in the cost of the name, print, the letter, envelope and the cost of the stamp it's about a buck. It's about a dollar on a letter and a postcard runs about 44 to 45 cents. We still like to put old school stamps on our letters. But we don't mind using the presort postage page like a sort of mailing house on the postcards. We don't find that makes a big difference, but we do find the hand sign letters. Number 10 window envelope with a real stamp is worth a little bit of extra on the letters.


Fred Rewey (07:41):

Time-Wise, it's not a time killer. It's not hard. A lot of times you can buy the list, upload the list to a house, upload your letter, do a mail merge. I would say time, in a worst case, it's a medium. You can outsource a lot of it. You can automate a lot of it. I wouldn't say it's a high maintenance method by any means.


Tracy Z (08:05):

The competition, it just like cost. That is high. You're not going to be the only person who bought that list of names. Remember the names come from County recording information. There's lots of other people who mail as well. They don't always mail consistently. The consistent, direct mail person in the note investing business is the one that usually wins out. If you are going to just mail, once don't bother, in direct mail, it's not going to work,


Fred Rewey (08:33):

We never really put a number on it. I would venture to say that you probably need to be playing with something at no less than probably four to 5,000 names. That's your list size and you're mailing them three to four times a year.


Tracy Z (08:47):

We normally say, if you're going to start out, at least start out ideally with a thousand a month at the minimum 500. Then get them in rotation every four months. You'll have that higher number at the end of the year that Fred mentioned. When you put it all together,  I'm going to give a B.


Tracy Z (09:11):

I would say to B to a C.


Fred Rewey (09:13):

It's close to. It's a B minus. With little C showing there. So we're gonna say B or C. 


Tracy Z (09:22):

We'd love to hate it. We don't suggest people start out here. This is somebody who has some longevity and they have some funds to invest. But the good thing is, is it does get your marketing up and going, that's one of the positives. So we've got  B or C. We'll call it a B minus or a C plus. 

 All right. So what's the next one?


Fred Rewey (09:42):

We're going to talk about ads, but we're talking about offline ads. We're not going to talk about online ads right now because we're going to get into that, I think on the next one. 


Tracy Z (09:53):

We'll start with offline.



Fred Rewey (09:54):

How do you give it a grade? 


Tracy Z (10:05):

Offline ads are traditional ads. They are the dying newspapers. They are the nickel Nicks, the penny savers, they are the local newspapers. There's just not that many people that buy a newspaper. Most people go online to read their news. Normally ads used to be a really effective way. 


Fred Rewey (10:36):

Display ads are basically like a quarter page of it or a big box in the middle of the classifieds. Those were never really effective. What was effective was the lines where you got like 12 words and  placed it in there and you say,  “are you receiving payments?”  “Would you like to get a lump sum of cash?” or “Call this number toll free.” 

There are a couple of things and you can put that in different sections depending on what you were testing. Put it in the need of money or it in the real estate section. You can mix it up. You were looking at like Tracy said, the free papers and things like that. 


Tracy Z (11:24):

That’s if you're going to run an ad, that's offline. The places that we find that still work are in a rural area.  Where they have either a local, small newspaper or they have those green sheets, the penny savers, the nickel Knicks. It's called something different depending on what part of the country you're in. We buy mortgages, deeds addresses and real estate contracts. “Call now for a free quote and free offer”. For that, for those local ads, let's go ahead and talk about effectivity, costs and time competition


Fred Rewey (12:11):

I'd say they're pretty effective. I'd say a medium plus as far as being effective the cost is usually very low or should be low. Time is super low. You do the ad once and it just sits there. If you're paying it, like $10 a week for an ad or something like that, it sits there for an awfully long time. You don't have to do a lot of deals out of that. Competition is probably a medium. I haven't looked in one of those papers for a little while recently just to see what's going on,  but it's usually medium. You're not going to be the only ad there. 


Tracy Z (12:43):

What do you get for an overall grade? I'm going with a C .


Fred Rewey (12:44):

I'm going with a B.


Tracy Z (12:47):

Ads are really hard to group into one thing. Which is why Fred and I were doing the bantering back and forth because that's just one kind of ad. You have free ads online. Well, who wouldn't take a free ad. They're not super effective, but they don’t cost much.

What about Pay-per-click? Which would we'll get into on the online section as well. Pay-per-click as an ad online. That can be very effective, but also expensive. 

Let's go to the online category


Fred Rewey (13:17):

Let's talk about Online. Earlier we talked about direct mail. Let me make a comparison. This is important here. The direct mail, we did get a list of names and we are able to mail the people that specifically we know that have carried back a note. Sometimes we've got the list names. The advantage of online is I'm going to advertise based specifically on terms that they type in at that moment. I will advertise on Google  the keywords, where can I sell my mortgage note. The timing is perfect because they're specifically looking for how they can sell their mortgage note. The downside is it's going to cost me a lot more for that lead. If someone's already on the internet, you're definitely not the only game in town when they type that in. They're going to see five ads right out of the gate. Then they're going to see organic search below that. There's a chance that the competition's pretty heavy on that, but from a targeted standpoint, they're there.


Tracy Z (14:17):

In addition to the ads, then you've got your websites, you have social media. It's a very broad spectrum. We probably should break down. Do you want to break it down overall and then break down some of those other areas?


Fred Rewey (14:29):

Let's talk about a couple of areas, let's talk about websites. We talked about ads a little bit. Pay-Per-Click websites are phenomenal.


Tracy Z (14:33):

I love websites. I don't even know how you could do business without a website. A website is a storefront. It's what a storefront used to be. You've got to have a website. What's the first thing you do?  When you go search for somebody, you go online and you search for a website. Also if somebody is marketed, you and we see this all the time we're doing some rehab work on a house.  We'll pop over to Facebook marketplace to see if we can find someone  that might specialize in that area.  What's the first thing I do? I want to go see if they're legit, if they've got a website. Everybody does it. Everybody checks to see if you have a website.


Fred Rewey (15:09):

The other thing is you're not glued to your computer or glued to your job. You're going to go to bed at 10:30 at night. You're not going to wake up before 4:00 AM. But your website's working for you 24 seven. You'd be surprised at the number of people that are actually going to your website at 12 o'clock or two in the morning, cause they're stressed. That's when they're trying to find their solutions and your websites working for you, they're reading about you, they're submitting a form. Maybe putting a form in there telling you about their notes that they want to sell and submitting it automatically online. We are huge fans of websites, both from a credibility standpoint and from a kind of working for you standpoint.


Tracy Z (15:47):

Completely full disclosure, we got so good at figuring out how to build a website for the note buyer industry.  We actually created a little division that helps people build their websites that our daughter runs for us for the note business. There's really some things you want in there and you want good blog articles. You want an online quote request form. You want to answer the frequently asked questions. We have that on websites. If I had to only do this online category on websites, it would probably resonate. 

The challenge with websites though, is that it's not like you build it and they will come. You have to actually market your website. Just building a website in and of itself, isn't enough. You still have to market through these other methods to get traffic or visitors or potential clients to your website.  There's strategies like search engine optimization. Adding content through content marketing. Using social media. All of those don't end up with the immediate bang for your buck but they do establish your website. 

Do we want to talk about effective cost, time and competition?





Fred Rewey (16:59):

I would say online is highly effective.  Like what you said, it's not going to just market itself, but you can market that and say it's highly effective. 

Cost is great. You can build a website for less than 500 bucks. You can build your own website if you really want. Just make sure you have a checklist of things you should have on your website. There's lots of templates out there, particularly WordPress. You can do it yourself. Cost per click is high. 

Overall experience it's certainly efficient. 

Time, I would say, is kind of a medium. Particularly if you're doing what you need to do there. But the nice thing is there's flexibility. You can be anywhere as long as you can get the internet.


Tracy Z (17:44):

Competition it's definitely high. There's lots of people out there. That's the one thing that the internet has done. We've done this business before, during and after the internet and that's okay. You start in 1988, nobody had a website then. We built our first website in the mid nineties for our company.

The problem with the internet is that there is high competition because lots of other people have access to the internet as well, but it makes it so much easier to do business. 

Overall, I strongly recommend the A category. Do we agree on this? We love the internet. Only a B probably because if we were talking about some of the things like taking more of your time and content marketing or social media marketing or things like that.


Fred Rewey (18:45):

That's all right. Let's talk about referrals and networking.


Tracy Z (18:48):

This is the other one we talked about where our main sources of business come from. It's definitely our website, referral marketing and network marketing.


Fred Rewey (18:55):

Referral marketing is basically as opposed to marketing for notes, where you are specifically going for the note holder or the end user that is going to sell you the notes. You're actually looking for a middle person. You're looking for the people that know people that have deals. In some cases they're creators. They're rehabbing houses and they can create notes.  You're not really looking for the one-off mom and pop to go through there. In referral marketing, that could be just via your website. You can have an outbound, direct mail campaign and email campaign. You can be networking at meetings. You can do meetups and any of those things.


Tracy Z (19:36):

If you're wondering where to start, think about the professionals that interact in a seller finance transaction. Think about real estate attorneys, not just any attorneys, but real estate attorneys. Probate attorneys can also be good ones. Title companies are great referrals. Other servicing companies, sometimes a mortgage loan originator will see that somebody has received payments on a note. Maybe they need to get that soul to qualify or to get income for a bank loan. Those tend to be some of the main ones.


Fred Rewey (20:15):

The referrals networking part is it's anybody that sees someone else's money or potential notes. It's a much slower build. If you're looking for a CPA and let's just say, you know, your market through a hundred different CPAs, but you get that one that responds and understands it, they may send you four deals a year or six deals a year. That's very much worth your time in that effort. 




Tracy Z (20:58):

In addition to CPAs, I wanted to make sure we talked about the real estate investor clubs, because the REAs are really big for referrals and network marketing. 


Fred Rewey (21:11):

Referrals effective, highly effective. Yes. It can be.  I don't mean this in an insulting way. If you're dealing with a real estate agent, a lot of them are like. “You know what? It's a hot market right now. We're selling.” I don't need to do this. Sometimes you have to go through a lot of people. But it is a very effective form because when you do get somebody, it can be multiple deals.


Tracy Z (21:32):

Our cost is low, super low. Yes. The time?


Fred Rewey (21:36):

Time is very high. It's probably the one of the highest time-wise as far as what you're doing in the marketing. There's some shortcuts you can have but it is always going to be high for time.


Tracy Z (21:45):

The competition, you might be surprised, but I would rate it somewhere between low to medium. How about you?


Fred Rewey (21:50):

It's pretty low. If you're talking about a networking meetup. Which doesn't require a lot of effort from people other than just show up at a meeting and have coffee and donuts. Then that's going to be high. If you're talking about someone outbounding to other people that aren't at the chamber meetings then I'm going to say it’s a pretty low competition.


Tracy Z (22:09):

I think what you really want to focus on is if you're going to do meetups or networking, you've got to put yourself in a place where people will be in part of real estate notes and creating notes. A meet up at a general chamber meeting is going to have much lower results than going to a meet up for a real estate investor club.  A lot of people we've worked with, over the years have done it and started their own meetups. They did a little meetup in their own area and they would do it in person. Now most of them are doing it online because of COVID environment. But establishing your own meetup can be another method. 

Overall grade. I think we agree on this one.


Fred Rewey (22:45):

I definitely give it an A.

Before we move on to the next category. Someone just put a question on there. 

“Do you use SEO for your website?” 

Yes, absolutely. It's essential.


Tracy Z (22:57):

For anybody who might not know SEO is search engine optimization. All websites should be built on search engine optimization. The thing that people don't realize about SEO,  (we could have a whole episode on this) is that you have the game of SEO. It’s providing new, unique, relevant content that establishes you as an authority and post-it regularly. Then you use certain things with tags. There's lots of ways you can do SEO. It's not just a stuff or bunch of keywords on there that doesn't work anymore. It's really about good website maintenance. You've got to do at least a weekly post on your websites and students every day.


Fred Rewey (23:43):

One important thing to say about SEO (this is to save somebody some hassle) is that somebody is promising to get you at the very top of the rankings the next day, because they can fix your SEO. 

You hear about keyword stuffing. If you just put notes behind the scene over and over and over again It shows up that game has long since played out. It doesn't happen anymore. Don't fall for that. If you're looking for a good shortcut and you're running your own website (you're using WordPress there's a plugin by Yoast) when you do your post to kind of give the red out like Greenlight thing and tell you what to do on there. I would definitely look into that as well.


Tracy Z (24:22):

We had another question too. 

“How would you rate online networking? Do you find it to be effective as well? Like LinkedIn groups and Facebook groups?” 

Absolutely.


Fred Rewey (24:32):

That's our daughter chiming in here. If anybody didn't get that. It's why I didn't ask that question.


Tracy Z (24:40):

Well, it's a good question. Yes, definitely online networking is a wonderful way. We find that LinkedIn groups, as Mikayla mentioned, and the Facebook groups specific to note investing are good. You can spend a lot of wasted time just on Facebook in general. If you are specifically targeting those groups, that can be a great way to do online networking.Thanks for bringing that up.


Fred Rewey (25:04):

Thomas, I'm going to give you an abbreviated answer to your question.  

“Where's the best place to buy a list of notes?  What criteria do you use?”

That's a whole webinar in itself. Places like advanced seller data or advanced data services.


Tracy Z (25:19):

It's ASDS. Advanced Seller Data Services.  

It's notesellerlist.com. That's a whole lot easier thing to say. That's why I had to think about it.  Notesellerlists.com. We've been using him for list providers a lot. 

If you want to know other ones, go to noteinvestor.com, go to our homepage. You'll see this cool little placard that says “Best of Notes 2020”. If you go there, you'll see advanced seller data services in three other lists. Providers that are known for providing that. We give you that information right there on our website at noteinvestor.com. We have some cool articles about that as well. Those great questions.


Tracy Z (26:05):

We're not skirting the criteria. That's just a big animal. That could be a whole webinar, basically if you're buying the notes yourself, what range of notes you can pull? Like I want to buy notes that are under 50. I want to buy notes that are only in these States. You can choose all that upfront.


Tracy Z (26:20):

We acknowledge, this is just a crash course of marketing. We work with people in our group and we take this topic and  do an hour webinar on it. We provide  sample letters and sample postcards and things that have been tested. These are really in depth subjects. 

This is definitely a high level. We just want to get you thinking of where you could find notes. 

Next, we've got the creating notes.



Fred Rewey (26:49):

Let’s talk about creating notes. Creating notes is a big category. Do you want to talk about that a little bit? You did an entire course about that.


Tracy Z (27:04):

Talk about deep dive. Creating your own notes is either creating notes on property you own. We work with landlords. A lot that are wanting to convert, maybe not all, but some of their portfolio, they want to be lein lords instead of landlords. They'll sell a property. They have a principal and interest payments. They have no income and interest income instead of rental income.  They've got owners in their properties instead of renters. That is one way to create your own note. You don't have any competition on that. We have other people that use seller financing to buy properties, to create a note, then sell a seller financing. Wow! Huge concept, very advanced, but definitely worthwhile with other people having gotten really good at this. We do this as well and they help other people create notes. That can be sold for are very highly marketable with one payment made. Because lots of the note investors we work with will buy a note after one payment is made. He created a note, then the way that they'll buy it,that's a whole category again on its own. But I love creating your own notes.  

This one is definitely effective. I would say that it's highly effective,


Fred Rewey (28:13):

You're controlling all aspects of it. The cost is low. 

For time it's high because you're having to create the vehicle that even creates the notes.  You either have a property or you're marketing for a property that things like that competition


Tracy Z (28:27):

Probably. Well, you cannot compete against yourself to sell.


Fred Rewey (28:31):

I'd say it's low. Overall grade?


Tracy Z (28:36):

Well, because of the time it takes, I would give it A to B.


Fred Rewey (28:41):

I'm going to give it an A. 

Next let’s talk about reverse ad marketing. This is something that's often overlooked. It's also, as we talk about the different budgets, as far as costs, this is a very low cost item. But a high time item. 

Do you want to talk about it a little bit?


Tracy Z (29:04):

Reverse ad marketing is somebody else who has already placed the ad. You don't have any expense. You're responding to the ad. You can do this using online methods. You can do this with Craigslist or Facebook. You could do this. We're picking up one of those local papers or free nickel links, penny saver, green saver, types of papers. You're looking for anything that says property for sale. The owner will finance the lease and option with a down payment, easy terms. If you go to Craigslist or go to Facebook marketplace, booked for owner financing, sellers will finance any of those lease options. Any of those terms, you would see somebody selling property. Offering seller financing. If you have access to the MLS, you'd see it there. You might even see it on Zillow, depending on who was in the comments.





Tracy Z (29:57):

What you're going to do is you're going to outbound the market to them. You're going to call them up. You can do it via email. You could do it through text messaging. The most traditional way is to pick up the phone and call. You're going to say something like, “Hi, this is Tracy. I noticed your ad in the paper, offering property for sale with owner financing. Our company specializes in buying owner finance notes.” 

Sometimes they'll say,  “you've let them know” and sometimes they'll say, “Are you trying to list my property? Like your real estate agent?”

Those might be some of the objections, but you just explained to them. “No, we're not looking to buy the property, your list, your property. We help people create notes.” 

We find that many people who create a note would prefer cash after closing, but they aren't sure what a note buyer is looking for.


Tracy Z (30:44):

We find that the same things that make a note more valuable to a note buyer also make them safer for you. We have this helpful handbook that has seven tips to save seller financing. We can send that via email or we can text or mail it to them. We just ask them if this is something they like to receive.  We ask them if they want to know a little bit about what makes a note marketable to a note investor. That's a great way to get some follow up. It takes some time and energy but it's a great way for you to get comfortable talking about notes.


Fred Rewey (31:22):

There's no cost. It's just time and it's a good way to get in there. As far as you know effective, I'd say medium on the effectiveness. A lot of people don't have an interest at that moment. Or they don't want to hear it, or they don't know what it is. But still it's no cost. It's a phone call. 

Time is high. You're going to go through  a little competition, very little competition. 

Overall grade, I would say it's probably B. 


Fred Rewey (32:04):

If you're willing to sacrifice price, how much you're getting on a note. If you're, (this is for somebody that wants to purchase and own notes themselves), if you're willing to sacrifice your return a little bit or pay not as good of a price, (it's like a wholesale versus retail type thing),  there are sites where people actually list notes. Go to the site, look at the note, look at all the parameters. Decide if that's what you want. You can look for the criteria going. Sample, I want them only in the States and I want them to be this dollar amount. You're going to pay a little bit more for that note. Your return is going to be a little bit lower than if you go direct, but you also want to have a cost associated with going direct there.


Tracy Z (32:46):

I'm going to send you to noteinvestor.com and click on the best of notes tab. You'll see who is nominated for and who the best note listing sites. I will send you there and you'll see who they are, who they are. 


Fred Rewey (33:06):

Look for noteinvestor.com and go to the best of 2020. You'll see a lot of categories there, the best of notes including the top people and top sites for that.


Tracy Z (33:19):

We also provide all that information. We put out a directory every year of note buyers.  

That information is in there as well. The reason that we're mentioning this to you and Fred talked about is that some of these methods are great if you want to get directly to the source. They take more time and money. You have to decide what marketing method is best? It really depends on the time that it takes and the time you have available to commit. The expense that it takes on the dollars, you have to invest in it. If you're just somebody who wants to buy one or two notes and your self-directed IRA company, that's great. That might be a great place for you to start as the note listing sites, because you aren't looking to spend a ton of time and dollars marketing.


Tracy Z (34:02):

You just want an alternative place to put some of your retirement money. That could be a good place. Just realize that you're going to pay more for it. You're not going to get the lower price. You're paying retail. As Fred mentioned, not wholesale. If you're somebody who's going to refer notes, want to make a fee, or you want to do some of those really exciting partial deals like we talked about, then you're going to want to spend the time and the energy to go after that wholesale. Some of those methods, we just talked about building your website, doing the referrals, doing the direct mail, doing some ad that's where you're going to get the better pricing. What we give them is a grade, but what is right for you may not be right for the next person. So really think about what your strengths are. What are your weaknesses and what kind of time and dollars do you have to invest on the marketing side? But there are places you can just go finance for something that is new. 


Fred Rewey (34:53):

Hey thank you so much! Thanks for letting us run a little bit over on this.  If you have missed any of the previous ones, they're still online right now. Go to noteinvestor.com/101, you will be able to get access to the ones we've already done. Including a replay of this one tomorrow. If we do any in the future, anyone's come up and you'll get notified about when those are going to be there as well. Please continue to submit the questions and ideas for sessions. We're going to do a few more of these. This is just kind of a mini crash course.  Everybody can kind of understand the industry a little bit better. We've covered marketing. We've covered calculations. We've covered the general and industry. We've got a couple more ideas and some other ones we want to do.


Tracy Z (35:34):

As always, thank you so much! Your time is valuable and we appreciate you spending some here today with us. As we always end. Happy note investing!

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