Financial Institutions/Services - Note Brokering
Number of Customer Reviews for Note Brokering: 0
Would you like to provide a review for Note Brokering
? If so click here
Note Brokering is a process of buying debt or promissory notes from note holders and selling them to investors at a profit. Various websites and info commercials promise huge returns in note brokering. A note is only an IOU document by payer to pay another party, beneficiary, some amount of money.
Payer agrees to pay beneficiary the money in monthly, yearly, weekly, or daily installments or in one total amount in future. Note buyers come in between payer and beneficiary. You can buy note from beneficiary and pay a certain lump sum amount as total payment to become note buyer. The lump sum amount you pay to beneficiary depends on amount of discount on face value of note.
Security is the main deciding factor for amount of discount in note brokering. If payer is safe and healthy party financially, you can buy note from holder or beneficiary at low discount. However, if payer party does not have any good financial background, you decide on a higher discount. Similarly, notes with collateral securities like car, furniture, real estate documents-Trust Deed, Mortgage, Land Contract,- etc call for higher discounts.
Note brokers and note buyers buy notes for lump sum cash amounts. Beneficiary prefers one time cash to a series of long-drawn and small payments. However, note brokering is not a bed of roses. You need excellent people skills to read and understand people and their nature. You need to scout earnestly for note holders, which is by no means a simple job. Note brokers normally spend 80% of their time locating and identifying good note holders.
There is immense competition in note brokering. After locating solid note holders, you have to look for suitable investors to sell these notes. This again necessitates tactful skills to negotiate and sell your notes at a profit. Although Internet offers many free tutorials in note brokering, few take up course, as failure rates are high. You earn paltry sums after working for more than fifty to seventy hours per week. Risk factor is also high, which deters many from entering note brokering.
There are no customer reviews for Note Brokering. Would you like to provide a review for Note Brokering
? If so click here
Disclaimer: These reviews are for educational purposes only. The reviews given here are personal opinions, and other people might have different views on the products reviewed on this website. You should make any buying decisions based on your own judgment. No guarantees of income potential are given or implied; such income potential is dependent on your own skills and resources. We may receive commission or revenue from any service or product that is purchased through this site.