There’s nothing quite like a New Year – a clean page, a new leaf, a fresh
start, another chance. The New Year is the logical time to identify and set
new goals. No, I am not referring to resolutions made and broken by
mid-February or sooner. I’m not talking about a “dream”. I’m talking about
setting a Specific Goal, and the development of a Plan of Action to get you
where you want to go.
Some of you reading this article may be at the crossroads of whether you
are going to continue in the cash flow business and/or at what level. Some
may even be considering leaving the business to get a “real job”. I have
found that there comes a point when you have to stop dreaming and start
building a business.
Some people are just spectators, they sit on the sidelines, wishing they
were successful, wishing they had the guts to be “in the game” some even
have the trappings of success, but they never took the chance, took the leap
and actually dug in and “did the deals”. They talk a lot. They get up to
bat, sometimes hit the ball, but then are stuck on first base, afraid to run
to first base. I’ve got news for you, “you can’t get to first base until
your get your foot off of home plate”. I suggest you take a deep breath,
step back for a minute and then sit down an set a realistic goal for the New
Year – be specific by writing it down. Then develop a Plan of Action, Set a
time limit and then go for it with all your might. Believe you will succeed
and you will.
In the last Newsletter I gave you all some ideas on how to market to
Attorneys as a “Synergy Partners. Seeing there has been many requests to
give an idea of how to develop a relationship with a Title or Escrow
Company, as a synergy partner, we have included a brief summary as part of
this newsletter.
Our featured article this month is "A New Twist on Mortgage Notes", written by Tom Anderson, President
of Pensco. Don’t miss it! Along these lines, while the close of the calendar
year may mean different things to everyone, it only means one thing to those
who know IRAs: There are only 3 ½ months left in which you may make a 2004
contribution. Additionally, here is some good news and a Roth tip, that was
just forwarded to us from Pensco. Take a look:
You have until APRIL 15th, 2005 to either contribute to an existing Roth or Traditional IRA, or to open and fund a new Roth or Traditional IRA for the tax year 2004. You have even longer for SEP IRAs – until your (or the company’s) tax filing date, including any extension.
Roth tip: If your adjusted gross income (AGI) will be $100,000 or less
for 2004, you should consider taking advantage of a Roth IRA and make a
new Roth contribution by April 15th. Once you make the
contribution, these funds are able to grow tax free for life, even if
you are not eligible for a Roth in the future (i.e. due to an increase
to your AGI).
Also, don’t forget about the ‘catch-up’ contribution limits if you are at least 50 years old. See the chart below for the new limits and try to contribute your maximum each year so that you can maximize your retirement opportunities.
2004 $3,000 $3,500
2005 $4,000 $4,500
2006 $4,000 $5,000
2007 $4,000 $5,000
2008 $5,000 $6,000
Have a Happy New Year! May the New Year bring you Prosperity, Peace and Joy!
Roberta M. Standen, President
II. Note Brokers: Developing
a Title and/or Escrow Company as a “Synergy Partner”.
One of the most common questions asked during the workshop we present is:
“How much should I pay for a referral to the Escrow/Title Company for a
referral” or “of what assistance can I be to a Title/Escrow Company”. First
of all, let me remind you that YOU are their customer! When I was in the
Real Estate Brokerage business, the title companies would visit my office
and my agents on a weekly basis in an effort to get our business. They would
leave pens, note pads, mouse pads – anything with their logo and name to
encourage us to brings the business to them. At Christmas the candy, nuts
and pop-corn would roll in along with a fine bottle of wine for the Broker.
It was not unusual to be invited to lunch as their guests. Why, because we
bring them business. Duh! Double Duh! What do you think you do???? We bring
them business!
Here's how: each time there is a sale or purchase of a note an Assignment is prepared for
recording. Other services they offer in conjunction with a note transaction
could be: Preparation of a Grant Deed, Reconveyance, Note Modification, Date
Down, Title Insurance Policy and/or Endorsement, forwarding. Etc. Think
about it, You are their customer and they want your business. Remember, the
qualifications required to be a “Synergy Partners” I presented in the
previous newsletter? Title and Escrow Companies are the perfect candidate
for a Synergy Partner.
Although their transactions are private and confidential until recorded; In
the “due diligence” process required to make an informed decision when
purchasing, “flipping” or brokering a note, a Title Company can provide you
with a vital ingredient in establishing value of the security of the note by
providing comparable sales.
They are the people who put the seller transaction together, draw the note
and record the Trust Deed. They do the UCC filing with the Secretary of
State; handle Mobile Home Security Agreements etc. Also handle loan and
refinance escrows and are involved in all kinds of notes, both institutional
and private.
By far the biggest problem a note finder has, in establishing rapport, with
these companies or even getting in the front door, is not talking to the
right person. What I hear from students is the following: “I called the
escrow company and they never heard of purchasing notes” or They didn’t know
what I was talking about! Well, who in the world were you talking to – the
receptionist at the front desk, typically a high school girl working part
time after school?
I suggest you call, ask the name of the Senior Title Officer and then ask to
be connected to him/her) Introduce yourself and ask for an appointment for a
personal visit. If small town, ask to speak to the owner.
Secret is, you have to let them know you exist. They must be cultivated just
as any other referral source. You must be prepared to do business: Have
Business cards, a personal brochure and present yourself appropriately as a
business person. Many Escrow Companies have servicing departments and
although they cannot share their database with you, they are aware of
beneficiaries who wish to sell. When anyone in the General Public wants to
sell a note – one of the most logical sources they call is a title or escrow
company.
Remember, always “leave the door open” for your next visit or contact.
Follow through or die! Put them in your database. You will probably
eventually put a newsletter together. Ask them to write an article for you
to include with their name and telephone number. As with any other “Synergy
Partner” the name of the game is to develop an on-going business
relationship.
We hope to have our book on “Finding all the Notes you Need under your Nose”
ready by May 2005. Our little booklet on a “Gold Mine of Notes” is available
on our web site at www.sellerloans.com,
in the online store.
You can also read or download previous Newsletters containing information on
the developing of other Synergy Partners. Go to
www.sellerloans.com/ What's New?/
Old Newsletters. If you have problems locating
these, just call Pam at
1-209-3445, ext. 12.
| Jan. 28-30, 2005 | How to Build Your Real Estate Empire
Using Little or None of Your Cash or Credit Location - Red Lion Hanalei Hotel - San Diego, California For additional Information and Registration: Please call Scott Whaley at 800-684-7788 or email him at scott@landtrust.net |
| May 26th -29th, 2005
|
American Cash Flow Convention Location - San Francisco, California Information: www.americancashflow.com |
| October 2005 | Pensco Symposium for Self-Directed Retirement
Plan Investing Location -San Francisco, California Information: www.pensco.com |
|
P.O. Box 87 Midpines, CA 95345-0087 |
||
| Phone: | 209-966-3445 | |
| E-mail: | info@sellerloans.com | |
| Fax: | 209-742-7153 |
 |