Human nature is funny. Unless you are cold-hearted and greedy, you must understand the weakness in most people - the want it all now mentality. Many people try and capitalize off that fraility.
A study was done on preschool children who were offered a plate full of cookies now, but if they waited the cookies they recieve would be doubled. Almost all of the children took the cookies offered instead of waiting for the bigger payoff.
We also admire the principles of sacrifice and hard work, but it is hard for most to resist the temptation of having it now instead of waiting for something bigger. This is why the credit industry is so huge. Instead of waiting to save money to purchase something, people want it now and are willing to pay more than the item is worth by getting it on credit. It makes the banks rich and the consumer poor.
One could look down on the consumer without self-control or business sense and think they deserve to get ripped off and value the ones who profit off such people. However, not all consumers are motivated by greed, but are looking for a way out of a desperate situation such as someone who may have had a lot of bad luck and about to lose a home or someone without insurance finding out they have cancer and need a lot of money to get treated.
As a person who is the middleman flipping notes, you need to show some display of compassion for both parties you will work with. They are not just your prey anxious to make you rich. Why should the ignorance or desperation of the note holder make you rich? This is where you need diplomacy for both parties - the buyer and seller.
The seller knows on some level when they sell their valuable property, the note, they are going to lose money. You need to understand why they are willing to take such a loss. Perhaps they know there is something about the note which might pose more of a risk for them to keep and they want a guaranteed sum of money upfront and let someone else take that risk. Or maybe they have an urgent need out of desperation or a business opportunity or need to pay bills or they want to go on a spending spree. Whatever the reason the seller wants to sell, you need to figure out the motivation for the sell.
Remember, until the money is in escrow after the sale is closed, the seller could always back out and change their mind. If you know why they are motivated to sell, it will help you know how to close the deal, but do so with compassion.
