Buying Notes-Is There a List of Banks That Sell?


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Investing in Notes-The Most Common Question

A common question asked when investing in notes is…Where are the list of banks that sell? How do I know this? It has probably been a question that I have been asked over 58 times now. Based on the responses, I know for certain, this is a question that you want an answer to. I admit that it was one of my first thoughts when I finished a course on How to Buy Notes. My first course that I completed 4 years ago.

In fact, that was the most important question I wanted to ask my instructor Mark. And it was the most pressing on our minds. At the end of the 3-day workshop, I was so tense and ready to just get the list of banks that sell notes. Why didn’t he just give me the list at the beginning of the course to just get the tension out of the air so that we could all focus on now what to do with that list?

Banks That Sell Notes…The “Magic Binder”

When I finally got the list from Mark, I quickly skimmed through each page to gather any information that I could. Do you know what happened after that? What did I do next with my valuable list? Nothing. This is what happened when the course was over.

a) Most of the banks didn’t even exist anymore. (Look at Indymac. If they were a bank that I wanted to target, I bet I would have had a hard time dealing with the FDIC)

b) The phone numbers were just the main numbers for the banks themselves – which I had access to using Lane Guide or even Google

c) Some of the banks weren’t selling their notes anymore

d) Banks NOT on the list did sell notes and defaulted mortgages

e) Once I had the name of the bank itself, I still had to make my presentation to the right person – and that had more to do with what I needed to talk to the banker about than about whether the bank sold notes or not

And finally, here’s what happened to the list of banks, and that binder. It’s sitting on my bookshelf now. I’ve thought about copying it and distributing it – since it would probably be no less useful now than it was 4 years ago when I was leafing through it.

So What’s my Point on Buying Notes here?

The number of banks that sell notes and defaulted mortgages is huge.

In most situations, who you know at these banks is most important.

In fact, the people that know the list inside and out more than anyone are … Let’s think about this for a minute:

a) less than 3 dozen banks and lenders that sell notes.

b) The people I know well in this industry who run $1-50 million fund buy from less than 20 lenders in any given year. Most have less than 10 people that they buy from (or through – good brokers are a good find in this industry – treat them well)

c) One of my colleagues spent 7 years buying notes from The Associates – that was his EXCLUSIVE seller – it still boggles my mind, but he became very wealthy from that one relationship

d) So here’s the secret about the one thing in common that these “professional” note buyers share.

A Note Buyer’s Success

They can talk the talk and walk the walk. The professionals not only know exactly what to ask for, they know what to do with the information once they’ve received it. You get that? What you do with what you know is more important.

So picture for a moment that the most knowledgeable of all Note Buyers (think of this person as the Zen Master of Note Buying) and you are on the 20th floor of a New York City apartment building looking out over the Lower East Side.

It is an amazing view…all the noise of the city is muted. She asks you to join her onto the fire escape so you climb through the window. All of a sudden you can hear all the sirens and honking cars in the noisy background. She says to you…”Look….that building right there…there they are”. You have a puzzled look on your face.

“What are you looking at?” you ask.

“The ones you are looking for…There they are…” she answers.

You look out to where her arm is pointing, but her arm is moving in a gentle arc all the way from your far left to your far right. Now, you’re really clueless. You’re about ready to ask her to explain what she means, but she cuts you off.

“I sense your doubts,” she says, and then continues.

“I have a story for you”.

She shares a story with you about her master and the time he taught her where to look for the Fountains of Perpetual Notes. She tells me the four words that he spoke to her…”Look for the suffering”.

As she is pointing across towards the buildings, she whispers something to me. “Now…I tell you”.

“If you want to find the Fountains of Perpetual Notes, look for the suffering. That is where you will find it”.

She motions for you to go back into the building over looking the Lower East Side.

Look for the suffering. Fountain of perpetual notes.

All I’m looking for is a list of banks that sell notes!

How are Suffering and Buying Notes Related?

The suffering right now is everywhere.

A few lenders exist that do not have non performing assets on their books.

There is a ton of lenders out there that are selling notes to all investors.

Lenders are even being forces to sell notes to investors that they don’t know.

Investors are even calling up these lenders asking to be placed on a list to become an “approved” investor. Even if I had a list of banks that sell, it would be the same as grabbing a number at Kat’z deli in New York, and standing in line during the lunch hour rush.

Instead, go “Look for the suffering”.

And approach this with the belief that every lender sells. It’s not a question of “if” – but “to whom”.

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