As everyone in the Discount Note industry is aware, you should be networking with real estate professionals, accountants, etc. at every opportunity. But there are far more sources of referral and many who many note brokers and investors overlook. Below is a list of those you should seek to build relationships with to foster referrals.
- BAIL BONDSMAN: Bail bondsman often except performing mortgage notes as collateral for the bond. When meeting such individuals, make certain you add them to your lists
- CHARITIES: It is not unusual for local charities to be the beneficiaries of estates and in many occasions, such estates include mortgage notes. The charity will want (and need) the Lump Sum cash. When you meet directors and financial officers of your local charities, make certain they know what you do.
- BANKERS: Bankers are often considered trusted advisors and many elderly note holders mistakenly believe they can sell an inherited mortgage note to the bank or use a note as collateral for a loan. Bankers are delighted to send such referrals your way.
- COLLECTION AGENCIES: Personnel at collection agencies occasionally find individuals who would pay a delinquent debt if they could sell a mortgage note they hold. Make certain anyone you meet involved with “collections” knows what you do.
- CONTRACTORS: Construction professionals and especially those involved in the “home improvement” sector of the industry, are occasionally forced to “take back” mortgage paper when a financing falls through or is short. Contractors are not in the business of holding paper and almost always want to liquidate. Contractors you meet should know how to reach you. Make certain they have your business card and website address.
- MOBILE HOME PARK OPERATORS / DEALERS: Those owning and/or operating mobile home parks are constantly coming across private mobile home notes. Make certain they know you are a buyer of mobile home paper by dropping off a brochure, flyer, or at least a business card.
- LOAN SERVICING COMPANIES: Often times, part-time local residents that are note holders and real estate rental property investors will utilize the services of a Loan Servicer for collections while they are gone for the season. A loan servicer can be a “prime source” of referral as they a the first to know when a note holder is thinking about liquidation.
- PAWNBROKERS: Pawnbrokers are often approached by those in need of “quick cash” and many are not inclined to loan against a mortgage note and especially a note which is not geographically “local”.