If you can find a note, but do not have the money to buy it, you will need to have investors already lined up to buy the note you found. It makes no sense to go through all the hoops of finding notes if you cannot flip them to those with the cash to buy it.
If you have made it your job to find the notes, the easiest thing would be for you to buy the note yourself. Of course, if you do not have big pockets, you might want to consider having partners who can help you. Otherwise, you need to find note buyers looking for notes.
As the middleman in this note flipping business, the infomercials do not tell you the distinct disadvantage you have when it comes to selling the notes - most who invest in notes already have their feelers out to buy directly from the source and will split a small portion of the note value with the one who generates the leads. They usually know the lawyers and real estate agents and deal directly with them. In the case of large firms, they place nationwide ads to find note sellers directly without the middleman.
Watch out for some of the infomercials that promise a network of investors and leads. The leads have usually been contacted many times before you are given the same list everyone else who buys the program gets. And when it comes to the network of investors, they are counting on those who have bought the program to be investors eventually, but it never pans out that way and the note you found can sit there for months and go nowhere.
If you are in this business as a note flipper, be sure to have your legal paperwork in order when you need to rely on lawyers and real estate agents to give you leads. If you are sure they have no conflict of interest, you can draw up legal documents requiring they are exclusively your source and will not try to flip the same leads they give you. This assures you your source will not go behind your back, strike a deal and leave you out of the loop.
If you are running national ads to find note holders directly, you will need to establish legal documents with them which require them to exclusively deal with you for a certain period of time while you are working on the sale. This prevents other note flippers from contacting them and stealing your potential deal away.
The biggest investment you can make in the business of note flipping is to have a lawyer working for you to draw up legal documents you will need that will protect your interests. Yes, it does cost money upfront for this protection, but it sure beats having most of your deals fall through to others with a bigger network of connections.
