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Eddie Franklins’ Cash Flow Note Sales.- A Cash flow note sale is no exception to this There are basic concepts behind marketing that always apply, regardless of the company or marketing method Perhaps the most important part of marketing and a cash flow note sale is getting the attention of your client While using seller finance techniques to sell a property are no more difficult than a traditional real estate closing, following a logical and proven plan is the best method for ensuring a successful real estate sale with seller financing Many property sellers stay away from seller financing because they mistakenly believe that creating a note is not a viable solution for selling their home After all, if they can't walk away with enough cash to provide the down payment on another property, they'll be powerless to replace the property they're selling As a consequence of this common misunderstanding, many sellers feel compelled to stick with conventional real estate methods, limiting their options and missing out on the benefits that seller financing could offer them In actuality, many notes created through seller financing are quickly sold and the seller ends up with the cash they need Even better, if the note is created with buyers' purchasing criteria in mind, the seller could walk away from the closing table with cash in hand This means that the net result is almost exactly the same as with a conventional real estate sale In the cases where the note holder does have a problem selling their monthly payments, the difficulty in liquidating the note is typically a result of one general problem: the note was not created with the buyer in mind Instead, it was created with only the payer in mind To ensure that a newly-created note will be attractive to potential buyers, it is important to recognize that their purchasing criteria are important as well For property sellers looking to sell their note immediately, it would be a grave mistake to create the note by prioritizing only the payer's demands A buyer must have a compelling reason to agree to collect payments in order to buy a note, such as a substantial down payment, a respectable payer's credit score (to minimize risk), a competitive interest rate, or a fairly short term An example of a "bad note" from a buyer's point of view would be a seller financing situation where no down payment was collected, the payer's credit score was not checked, and the interest rate is fixed at 3% Basically, this is TOO good of a deal Even payers that qualify for loans from traditional lending institutions would jump at this offer with no out-of-pocket money required and a rate below prime Clearly, the note payer and note buyer are looking for very different things Payers would love a "no money down" purchase with financing at a low interest rate, but most buyers wouldn't want anything to do with this sort of note simply because it is a bad deal for them In a situation without a reasonable down payment there is nothing holding the payer to their obligation After all, a payer involved in a "no money down" purchase could walk away and lose almost nothing financially Abandoning their obligation to pay may hurt their credit score, but it was their substandard credit that forced them into a seller-financing situation in the first place When there is no equity in the property (buyers will use the lower of the property value or the sales price to calculate equity), all offers to purchase the secured note will be discounted substantially in order to compensate for the buyer's risk of default A heavily discounted buyout offer often means the seller will not be able to get the money they need If the seller of a private note needs a large amount of cash immediately, they must be able to sell the note as soon as it has been created And to quickly find a buyer, the note must meet the general buying parameters of these people, which include a solid down payment, a decent interest rate, and typical terms Every buyer has their own criteria that determine what they will or won't buy, but a down payment of at least 10% is a good minimum figure when creating a note This upfront payment immediately creates equity in the property which acts as the buyer's safety net in a foreclosure A competitive interest rate is important because it will make it easy for the buyer to purchase the note and yield the desired profit without much of a discount to the note holder Finally, keep in mind that people typically avoid notes that do not follow a traditional term (amortized over 120 months, 180 months, etc) A two-year, interest-only balloon term is a perfect example of a note that most buyers would avoid The points described above are only a rudimentary starting point for note creation; there are certainly other things that buyers look for when considering a note It is always a good idea for the seller to contact a qualified note finder in order to get the specific information they need The finder will be able to utilize their experience in working with buyers to give the seller general guidelines about what should meet most buyers' parameters Of course, there are no absolute guarantees of a quick sale, but when the seller creates a note with the buyer It should be obvious that any marketing materials should be clear, powerful, and 100% free from typos and grammatical errors Judging by the technical problems found in many small business� websites and advertising materials, many businesses apparently still haven�t realized this Don�t just use an electronic spell check, because many word substitutions won�t be caught (such as using your instead of you�re) After you�ve checked it yourself repeatedly and think it�s perfect, run it past some friends and family Good advertising copy will attract people interested in cash flow note buying Your copy has to do more than just publicize features and benefits In fact, leading off with a headline that touts how amazing and wonderful your product is might have the opposite effect and instantly turn off the reader If you use a headline or sub-headline, remember that the purpose is only to grab the reader�s attention and compel him to keep reading The following copy must make some kind of emotional connection with your prospect You might consider starting with a story or anecdote that seems to have nothing to do with what you�re pitching An involving story (one with people or animals in it) sucks your reader in and makes him forget that he�s reading an advertisement It also plays to the reader’s emotions, perhaps sparking their interest in cash flow note buying Make sure whatever you�ve written isn�t too long Again, try it out on acquaintances and get their input Ask them how it makes them feel, or if they got bored or easily distracted while reading it Ask them if they came up with any objections to performing the call to action What do they think about the company behind the ad after reading your piece You can find out all you need to know about marketing and cash flow note buying at NoteNetwork Peer-to-peer financing is a convenient way to purchase real estate, especially today when loan regulations are tightening Due to the fact that real estate is an extremely safe investment, many people are interested in purchasing the financial instrument that results from peer-to-peer financing That financial instrument is known as a cash flow note While the purchase of a cash flow note can be beneficial for investors, it can also be beneficial for the individual who matches buyers holding cash flow notes and prospective investors interested in purchasing cash flow notes Such a match creates benefits for both the seller as well as the buyer In addition, the person who creates the match can collect a fee in return for making the deal possible The amount of the fee that can be received provides a method for individuals to establish financial freedom Click Here For More Information Hyperlink Text
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