Finding local lenders with product and more commission questions

Hey, welcome to this. Week’s Q and a. So I’ve got a number of questions to get through, and I’m going to point you to a few different resources where you can get answers. So the first one up is you recommend 100 to 200 prospects to start. Also, there’s mention of trying to be local. I pulled up North Carolina and looking at the possibilities.

I don’t seem to have near enough that fit the model. The first thing that I would say about that is, you should be using the power search, which is the map search that you see in front of you right now, right here. There’s this little map button click that’ll get you here. We’re actually doing way with the advanced search and moving to the power search.

I’ve got a new, help doc for you over in the help docs over here. Under power search in order to find that you just click here and you type in a power search

and you’ll see that you can get right to the, article there. And there’s a video in there that goes more in depth. First thing I would say though, is start with the power search. When I look here, at North Carolina, if I say. Show me all the lenders that have one to four family, non accrual, at least a little bit of it.

Let’s do a quick look and see we’ve got 269 bags to just meet that criteria. And it looks like we’ve got lots and lots of context. 

The first thing to understand when you’re looking at the power of search is that all of the criteria are in here are. And so if I say, if I go to note sale indicators, and I say, I don’t want to see that they have loans for sale and non-accrual, and I want to see that they sold nonaccrual loans last quarter.

And I want to see that they have some, first position non-accrual right now. What do we have here? 20 banks. So 20 banks have a presence in the North Carolina area that did sell loans last quarter that were non-performing that do have a non-performing right now in do have some held for sale.

Hope that makes sense. If it doesn’t go deeper into this right here, which is the power search, and that’s going to explain the whole, this whole feature right here. Next thing is Gary says due to some of information being dated as we are, we applying the same criteria to banks and credit unions pertaining to what we’ve studied.

So we try to keep updated information in all the training. And some of the things though, don’t need to be updated, like the way that charge offs work that doesn’t ever need to be updated. The fact that not what non-accrual is or how leverage ratios work or capital adequacy or any of that.

We’re probably not going to update that because that’s not changing. So the criteria that you would look for today are the same that you would look for before the financial things haven’t changed. Some things change like websites and how to use them and different approaches and, that sort of thing. in terms of the actual content in the training with respect to the numbers and the math and all of that, doesn’t really change if it does, we’ll certainly post an update. 

It says where’s the training that shows you how to get investors. So if you’re watching this video right now, then you have access to our verified investors database.

We don’t have training right now for how to use this. So I’m just gonna do a quick once over here. In general, and I think question maybe points more to how do you talk to investors or how do you be a value to investors? So here’s the verified investors database and we can click on any one of these to get more detailed information or we can click into one them like this.

And from here, what we’ll see is that we get the name and the phone number and the investment criteria in the locations, in the asset types. And so, that’s step one. So is you identify, does this investor, are they the type of folks who have the appetite for what I’m looking for? What I’ve found, depending on the order that you’re going in here in terms of the approach.

You want to be able to put together the deal and say, why you think the steel is attractive, why you think somebody should buy it. So that there’s two ways, right? So either I start with the buyer criteria. Where I say, okay, I’ve got this person or this company that is looking to make these types of acquisitions.

And then I go and I contact a potential sellers about that specific deal. Now that’s can be a great way to work. And it gives you something to talk about you’re contacting sellers. The other way to do it is to contact the sellers and say, I work with lots of folks who buy lots of different things.

Here’s how we work. What do you have? That might be a fit. In either case, when you’re engaging an investor, you’re going to want to talk about why you and why the deals that you’re going to bring. There’s a lot of different ways you can do it. Generally speaking, if you’re going to put together a tape or if it’s for a particular asset, you want to bring some value to that.

And so you want to be able to say why you think that deal is worth investing in. And so I would start, with that if in addition to this, which we have right here,  we also have video, how to find mortgage note and real estate buyers on LinkedIn, which I think you’ll find very helpful that said distress pro.com. Slash find buyers, LinkedIn with hyphens in there. Where I go over an approach to use on LinkedIn. If you’re, you do need to get comfortable with that and have the business, you need to be able to ascertain what it is that an investor is interested in, what meets their criteria.

And then you need to be able to look at a deal and say, Is this likely to meet their criteria and how can I best present this to them? For the most part, what find is most investors are pretty experienced, so you don’t really need to do too much other than to present the deal. So I hope that’s helpful if you have more questions about that, let me know.

It’s a pretty general question about where’s the training that shows how to get investors. There’s much more demand than there is supply out there still today. There’s tons of money looking for deals. There’s lots and lots of capital that needs to get placed. And so you should not be shy about communicating with investors about potential deals.

Okay. Next one I have is to clarify the process with performing non-performing notes. 

One. I got a tape from a bank or credit union 

Two put a non-circumvent place with potential investors. 

Three, I send the tape to evaluate 

Four whatever comes next in terms of how the investor in bank works, their deals, which determines what my tasks are to help close the deal.

So is the deal finder is the way money is made on the deal. The percent I have negotiated with the investor prior to submitting the deals to them. The way to receive a larger percent of the deal is to be representing the bank and have that amount built into the sales process. I’m just not clear on who, how the commission is determined or at what point in the process the conversation occurs.

What about with REO? Same thing for who, how the commission is determined. Okay. So I covered this in last week’s Q and a, and you should go and have a look at that. But how the commission is determined is by who you’re representing. So it’s possible to represent the buyer it’s possible to represent the seller it’s possible to do neither and to just facilitate the transaction and.

The approach that you take in any one of those scenarios is going to be up to who you’re dealing with what kind of product it is. And what they’re open to for some lenders, they’re going to be open to you, representing them for a fee. And in fact, most of the sales that I’ve done for lenders have been with an ERTS or an exclusive right.

To sell, which is an agreement that says, I’m going to take your product to market. I’m going to get somebody to, or some company to buy it. And when that closes, you owe me a fee, that’s an exclusive right to sell. You can also do the inverse of that and you can work on the acquisition side and get compensated on that side.

So . The way that you choose is going to be determined by who the players are and what they’re comfortable with. And then the amount that they’re willing to pay again is going to have a lot to do with that. I’ve actually a lot of information about this around the site.

And I’ll put a couple of links in down below, but you should certainly listen to Mike Ruscica interview a couple of his different interviews because he takes a slightly different approach, which I think is. Pretty interesting. But generally speaking, you’ll get a larger percentage on smaller deals and a smaller percentage on larger deals.

Most of the time, if I’m going to go back through this one, two, three, four, a system over here that you have, I would say that most of the time what you’re going to find is that it’s. If you’re just starting out, if you don’t have any the complete guide to funding buying non-performing notes. Is that Stein. I’m sorry. It is how to buy mortgage notes in 2021 five steps. And in this article, we, I walked through what is the process  history, if you don’t have any background of any kind, it’s going to be much easier to get paid by the buyer than it is from the seller.

Now that’s not always true. And you should listen to Paul Marshall’s interview because he did not have experience selling notes when he sold his first tape or was actually  two portfolios for a bank. He got paid by the bank and didn’t have prior notes, sales representation, and anybody who first sells a tape for bank or first represents a bank.

Didn’t previously have that experience, right? If you want, if you’re looking to understand a little bit more about how the actual process of closing a deal works, then  I think you should look at our, how to buy notes article .

If you haven’t done this before, and you’re looking to understand how you get a note from , I’m looking at a tape to now somebody else owns it.

It’s been assigned and they’re collecting payments. We try to cover that in here. And I also have it in a number of other interviews. 

 Next one. If I arrange a bulk REO deal between a banker and an investor, does the bank pay me a fee or a commission?

This is the same question. And it depends who you represent and who you represent. Again, depends on how you’ve negotiated that deal. Some lenders are going to be open to you representing them. And in many cases you’ll represent the acquirer. And so I’m going to push that back to last week’s commissioning question.

Guessing listing is not feasible in such a situation and only a private off-market transaction shall be performed. I hope I do not need to join the investor as a joint venture partner. I’ll take the last part of that question first. You don’t have. To be a joint venture partner, many people in this and other businesses just get paid in fees for having performed a service.

And so that’s the right way to start, especially if you don’t have any capital of your own. As far as doing a listing, if you’re taking a bulk REO listing let’s talk about that when you get one in hand most of the time, the way that’s going to happen. Yes, this is off market because you’re not going to, you don’t go to MLS and put bulk listings in there.

Now I will say that I have sold bulk REO for lenders before with treating each asset individually as its own. Sale. So get a tape and on the tape, there’s a bunch of properties and you’ve got to get your arms around each one and understand what’s happening with each one and sell each one.

Now I’ve also had instances where. It’s low value stuff. I had a tape in Ohio where it was all like sub five and $10,000 type stuff and that stuff you’re going to sell off as a package. So it really it really depends, but you’re not, if you’re listing them in bulk with a low dollar bulk REO type package like that, doesn’t go on MLS If I can secure a letter from the investor who stated his desired investment amount and States so that I can show it to the banker. Would that help me further to make the deal .

I’ve never. In representing lenders, I’ve never received a letter like that. I think that this kind of goes back to, you will hear about things like a proof funds letter that kind of thing. To be honest, the generally doesn’t come into play and you’ll find if you’ve listened to a number of the interviews that we have that no, that’s not usually how it works. And so the way deals usually work if they’re, if it’s not a traditional.

Transaction is with an LOI, which is a letter of intent. There may or may not be a binder, a required with that, which is like a good faith or escrow deposit. There’ll be a due diligence period. And and that’s it. So there’s not a, and then there’s close, title and close. doing things like getting, letters and that kind of stuff not, really something you need to worry about.

What are your thoughts on subscribing to LinkedIn premium and using the InMail function to reach out to contacts? I recommend it. I have sales navigator. I think I pay 800 ish a year or something like that for it. I definitely think that, sales navigator, LinkedIn in general. Those are tools that you should be investing in.

I live in Michigan and noticed that there’s only one bank Flagstar that is operating out of Michigan. I want to begin. With assets in my own backyard. How can I identify banks with assets in my state? So this is what I would start with is the power search. If, another way that you can that is you can just drill in like this into Michigan, but.

All these other searches that we have here all are related to. So the headquarters. So if you really want to get down to where the bank’s doing business then you want to use the power search, which is right here. It’s got this little map pin so we can see there are 85 banks that are in Michigan.

28 of them have commercial REO. If we go over to residential 27 of them have residential area 70 of them have non-performing first position on a cruel. You can do this drill down. You can come here and you can drill down in and get your list of lenders through this interface. But another way to do that and the way I really like right now, And I think it’s our best way is the powered search, which is this little map pin right there.

You click on that. It does take a little bit of time to load because we’re packing tons of data into that screen. And this is the same thing I would just search for Michigan appear like this. Then I would put the criteria that I have. I’m just going to leave the same criteria here and I can see that there are eight banks.

Now, if I take one of these off and I look again, I can see there are nine banks, and if I take this loans for sale off and I look again, I can see there’s 17 banks. So there’s a couple of different ways to approach this, but the power search here is definitely the fastest way to get all of the information that you’re looking for in one place, so that you can really evaluate it here.

So hope Q and a has been helpful. If you have other follow-up questions from this, certainly let us know. One thing about hypothetical’s. I find a lot of folks get stuck on things where they’re like what if this happens? And what if that happens? Here’s the deal. The best way to approach this business is to start finding folks who need product or start finding folks who have product, and then to understand what it’s going to take in order to make that transaction happen.

All of the other stuff that you might be thinking about that might be itching in your brain, where it’s what if they say if they say that? Until they say it. It’s just stuff that you’re creating in your brain. It doesn’t actually exist. So what I’ve recommended to do is find buyers or find sellers and then go and find the inverse for that.

If you’re brokering deals and then as things actually come up, then let’s get past those hurdles. I hope this has been helpful for you. Can’t wait to hear about your success and can’t wait to hear about the deals that you find.