A Guide to Finding Cash Flow Notes as a Note Buyer
If you are a note broker, an important skill you must excel at is knowing how you can find cash flow notes. Although it can be difficult, you can still do it by having a good insight regarding the cash flow notes. In this blog post, we will discuss three tips that will help increase your success in finding these types of investments and make sure that they turn out well for your business!
Here’s what you need to know:
The Challenge
Seller financing takes up about 6% of residential real estate sales, and it actually makes most out of the cash flow note business. But the cash flow actually depends on your location and the situation of the economy. Cash flow is usually higher when the economy is tough and with properties that are difficult to finance like commercials, mobile homes, etc. And although the 6% seems to be a small percentage, it actually can add up to give you quite a big amount.
The Statistics of Cash Flow Note
If you look at the residential sales of just one year – 2009, there was about 5.160 million homes sales unit with a price of about $173,000. So, if you calculate the seller finance average according to 6% of the total amount, it will be almost 53.6 billion dollars cash flow notes that were created in just a year. The amount keeps growing if you combine the notes that are created with lands, business notes, or mobile homes.
So the question here is, how do you really find cash flow notes? Well, the answer is quite simple –
Target Marketing
Target marketing means you market to those people who are actually interested in your products and services, rather than marketing to the entire group of audience that you can actually market to. So here’s the thing, instead of wasting your time and money on marketing your note-buying services to everyone, why not market it to the sellers who are actually keen on the services you provide.
Moreover, target marketing acts a magnet for you in finding the cash flow notes, because when you have a great marketing plan that aims at targeting the sellers’ needs who have cash flow notes, you definitely will have a lot of deals flowing in.
Some Ways to Find Cash Flow Notes – Uncovering Cash Flow Opportunities: Strategies for Finding Profitable Notes
The five simple ways that will help you to locate a great cash flow deal are as follows:
Direct Mail Marketing
One method of reaching out to potential note holders is through direct mail marketing. This involves sending postcards, emails, and letters to a verified list of individuals who hold notes.
Advertisement
Advertising is an effective means of locating individuals who receive payments on real estate notes. By advertising, you can reach out to potential clients who may be interested in your investment services.
Online Presence
Establishing a strong online presence as an investor can help you attract a large number of sellers to your platform. Building a website, creating social media profiles, and leveraging digital marketing techniques can all help to promote your services.
Referrals
Networking with other professionals in the field can be beneficial in obtaining referrals. By growing your network, you can gain access to a wider pool of potential clients who may be interested in your investment services.
Brand Development
Investors who build a strong brand reputation as established experts in the industry are often able to attract the best deals from sellers. By positioning yourself as a knowledgeable and experienced investor, you can build credibility with potential clients and establish yourself as a go-to resource for investment opportunities.
The best way to find these cash flow notes relies on three things:
Budget – The amount of money you will be able to spend in your marketing as direct mail is quite a bit expensive.
Time – The time that you can spend on your business actually matters a lot when you use referrals or reverse ad marketing as they are time-consuming but are cost-effective.
Skills – Your skills are a vital part of your business because you will be managing the business. Normally, the basic skill set would include good knowledge of computers, contacts with real estate professionals, etc.
You can start with the five methods mentioned above, work according to your skills, time, and budget, and figure out a marketing strategy that best suits you.
In conclusion: You are now aware of a cash flow note and how to find them. But one question remains – do you have the skills or insight needed to succeed in this endeavor? If not, there’s an option for that too! A note broker can help you identify potential investments so that your time isn’t wasted on fruitless searches and unsuccessful results.
This person will also know where to look in order to find the best opportunities out there for you while saving time as well. Ready for some profitable investing with less stress? Then get started today by contacting our experts who specialize in finding high-yielding notes through their extensive database of sources. We’ll work hard to make sure your experience exceeds expectations every step of the way!
To expand your understanding of Investing in Notes, kindly read our article: Ultimate Guide to Selling Mortgage Notes
