“By making and keeping promises to others and achieving our set goals, little by little, our honor becomes greater than our moods.”
– Stephen Covey
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:
Contribution Limits for Traditional and Roth IRAs
Roberta M. Standen, President
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.
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 1-209-966-3445, ext. 12.