Note Worksheets As Sales Tools

This is for people who are in the note brokering business. They find people who have a cash flow note to sell and then find a buyer who will pay a lump sum. The broker keeps the commission. When you’ve found a cash flow owner looking to get a lump sum, you complete a worksheet that gives the funding source all the information they need to decide if they want to buy that cash flow and, if so, at what amount.

This article is about how to use that worksheet as a sales tool.

By Barbara Graff of Graff Liquidations

Using The Worksheet As A Sales Tool

©2007 by Barbara Graff

The note information sheet (worksheet) is more than just a form to fill in information about the note. Look at this piece of paper as an outline for selling YOU and the note business to the Seller. As you start asking the Seller questions, use this opportunity to explore what is happening in the background with the Seller. What brought him to this point of wanting to sell his note? It might be a need you can identify with and talk about further. What is his line of work? Is he retired? If so, does he have any grandchildren? In other words, don’t make your first exposure with a stranger on the phone sound like an indifferent inquisition. This is a common mistake for most beginners and can be fatal when it comes to keeping a line of communication open with the Seller for future conversations and getting offers accepted. Be friendly on the phone. . .it will go a long way.

When you first talk with the Seller, it is imperative that you educate him on how the note business works. A good idea would be to ask him if he has ever sold a note before to establish a reference point. Most of the time, a Seller will not have any experience selling a note. Consequently, when a Seller’s note was structured initially, the Seller probably did not plan on selling his note (or even know that he could). Occasionally, you might talk with an experienced note holder who has a good idea what to expect when selling a note. This will make your job a little easier. But, for the most part, you will need to be patient and use the note information sheet to educate the Seller as you discuss his note. As you ask for information, explain to the Seller how interest rates affect a note’s value. . .or, how the term or seasoning of his note can be a negative when it comes to getting a high offer. By the time you have gathered all of the information about the note, the Seller should have a good idea what to expect.

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