The brokering of owner carry-back privately financed mortgage notes is the cornerstone of the cash flow industry.
The business of note brokering is the cornerstone and the entry point to what is known as The Cash Flow Industry. Unlike their cash flow consultant brethren, however, note brokers tend to be singularly focused on one product and one product only, owner carry-back mortgage notes, and do not delve into the many other product areas of the cash flow industry.
Owner financing, where the seller of a property holds the mortgage rather than a bank or institutional lender, is relatively common in real estate transactions. By holding mortgage paper, sellers can enjoy higher rates of return on investment than they can typically receive by investing the proceeds of a sale in savings accounts or certificates of deposit at banks. On occasion, however, mortgage note holders need to liquidate their notes due to unforeseen circumstances. It is the job of the note broker to locate note holders in need of capital and to match them with an appropriate institutional buyer of private mortgage notes. For their services, the note broker then earns a commission.
Very low cost of start up
Networking Intensive
Extensive affiliate opportunities
As with Cash Flow Consulting, this is a home-based enterprise where you can easily utilize a quickly set up static html website but for most, you will also want to install a WordPress blog in the background to take full advantage of endless social media marketing to drive visitors to your site as well as establishing income generating opportunities from affiliate marketing.
Very low cost training for this enterprise is provided by several industry specialists and note buying institutions. A popular and highly recommended resource is Charter Financial located in Houston, TX which provides comprehensive training and support at exceptionally low cost.
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The business of note brokering is very popular among the real estate investment crowd and often goes hand-in-hand with businesses like real estate wholesaling, foreclosure investing, fix and flip, etc. In many instances, note brokers will eventually become note investors, using their own or borrowed capital to actually purchase mortgage notes rather than simply act as a middleman in the transaction.
Like cash flow consulting, this is a business that is very networking intensive (80% or more) with direct marketing (and associated costs) used more sparingly or not at all. This is a perfect part-time business for those that spend considerable spare time on social media such as LinkedIn, Facebook, Twitter, etc. In fact, many practitioners using social media and networking with local real estate investors as their primary source of business have almost no business costs and operating expenses other than minor costs associated with their website and web hosting.
Affiliate Marketing Opportunities
As with many consumer-focused businesses, cash flow consultants have almost endless opportunities for generating additional income from affiliate marketing and the most successful consultants will, as networking specialists, operate blogs and write articles showcasing consumer-related problems and then feature problem solving affiliate products that can be purchased to remedy the problem, thus generating monthly affiliate commission income. Commission income from cash flow consulting is very very attractive but can be often be sporadic. The more predictable income from affiliate marketing can smooth out the gaps often present between generating the larger commissions from mortgage note cash outs and other cash flow deals.
Enterprise Success Rates
Success rates in this home-business are about average or perhaps slightly above average but as with cash flow consulting, can be deceptive. Those that do not succeed in this home business tend to be “serial” home business opportunity seekers jumping from opportunity to opportunity in search of a “quick buck”, easy business. Note brokering is not. But for those interested in a quality real estate-related home business, note brokering is a perfect starting point. This is also perfect business to enter part-time and for semi-retired individuals, a great place to start and to grow and develop a full time real estate enterprise. Start with note brokering and then continue to develop this real estate focused business opportunity by adding additional income areas such as real estate wholesaling, foreclosures, and even consider becoming a licensed real estate agent.