If you are interested in buying defaulted notes on residential or commercial properties direct from the bank on a regular basis, then you have to realize that following up with your banking contacts on a regular basis is the critical lifeblood of your business. It becomes even more important when you are direct to over 1000 banks across the country.
Such is the case this past week when I had one of our newest team members make a few phone calls following up with some of our banking contacts that we touch base with on a quarterly basis. She was not only able to get us a new contact in with one of the top 5 banks across the country (who will now do pools of 50 npn’s) but she also had a nice list of 16 NPN’s of commercial properties sent to her. Beginners luck? I don’t think so.
Women seem to have an edge in the business of calling the male dominated asset managers and getting lists of notes sent to them along with having their phone calls returned in a timely fashion. I’m not stubborn enough to take offense to this fact and I actually embrace this fact. As long as we continue to get NPN’s sent to us, its a win-win situation.
In this list of notes, there were several small apartment complexes and some mixed use with residential in the Southern California market, a 48 unit complex in upper New York State, and a couple mixed use property in New Jersey and Chicago. What really excites me is that the bank hasn’t received payment on these notes for some time and they should be willing to take a nice discount on the note balance to make it a worth while deal for our organization whether we end up buying the notes for our own portfolio to take over the assets or if we broker the deals and flip the notes to local investors in that market.
All in all, you make the most amount of money by picking up the phone and calling banks on a regular basis. I preach this constantly and with over 80% of sales being made after the 5th contact, you would think more investors would be willing to work the numbers to make huge profits. Unfortunately, most investors give up after a few no’s. It’s those investors that come an go with the changing markets instead of the ones who build a long term, sustainable business that is taking advantage of what the market is giving them instead of trying to fit a square peg in a round hole.