4 Ways to Find Mortgage Notes on a Low Marketing Budget
Tara Mastroeni
Published: September 21, 2016 | Updated: January 30, 2024
It seems like circular reasoning: To be a highly successful mortgage note investor, you need to market your services to generate real estate note leads. However, in order to pay for marketing campaigns that produce the best results, you need significant investment capital. To get those funds, you need to market your services to generate leads, and so on.
If you’re just starting out, how can you go about finding mortgage notes for sale on a low budget? Here are some strategies for success.
In an interview with DailyProperties.com, founder and CEO of Amerinote Xchange Abby Shemesh helped answer this question by listing four lead generation strategies. If you already know how to buy real estate notes, you can use the strategies to build your note buying business and eventually position yourself to pay for marketing that takes your company to the next level.
Key takeaways
- Looking through for-sale-by-owner ads and courthouse records can be a great way to generate leads.
- Attending business events with mortgage industry professionals present is a solid strategy to find mortgage notes on a budget, but come prepared.
- It’s possible to make arrangements with loan servicing companies that will let you place your marketing messages on monthly statement to mortgage note holders.
1. Check Real Estate Advertisements
Browsing through real estate advertisements in search of sale-by-owner properties is one way to generate real estate note leads. After finding ads for the properties, contact the owners and explain how you can help them create seller-financed mortgages that you’ll purchase for a lump sum. Classified ads, real estate publications, and sale-by-owner ads are great sources for-sale-by-owner ads.
2. Attend Real Estate Business Events
When you’re finding mortgage notes for sale, another way to generate leads is to attend local real estate industry events, such as mortgage broker conventions and real estate law and finance meetings. Network with mortgage brokers, real estate attorneys, and other industry professionals whose clients may own mortgage notes that they wish to liquidate for a lump sum.
When you attend real estate events, it’s a good idea to distribute printed materials (e.g., brochures and letters) that explain your note buying business and articulate why note holders should use your services as note buyers.
3. Look Through Courthouse Records
While you’re finding mortgage notes for sale, keep in mind that not all states list sale-by-owner transactions in public records. For example, Texas is a “non-disclosure” state that lists the name of the mortgage holder but not the financial details of the mortgage. In addition to the Lone Star State, Alaska, Idaho, Kansas, Louisiana, Mississippi, Missouri, Montana, New Mexico, North Dakota, Utah, and Wyoming practice non-disclosure.
As you browse through records in states that don’t have a non-disclosure policy, look for home sellers who created a seller-financed mortgage between 6 months and three years ago. Then, contact the sellers with a letter explaining your services, and how you can help them receive a nice return on investment (ROI) by purchasing the mortgage note.
4. Contact Loan Servicing Companies
Some original holders of seller-financed mortgages use loan servicing companies to manage the loan payment process. This why it’s worth your time to see if you can place marketing messages for your note buying business on monthly statements the companies send to owners of mortgage notes.
When your information appears on the statements, it shows that the companies endorse you. Consequently, while you’re finding mortgage notes for sale, you may have to pay advertising fees for using another party’s client communications to market your services. If so, this strategy may be one that you pursue after you’ve used the strategies above to generate more marketing capital.
About Amerinote Xchange
Amerinote Xchange is a San Francisco-based investment firm that specializes in purchasing and finding mortgage notes for sale, managing mortgage notes, loan portfolios, business notes, and other debt instruments. We take pride in providing straightforward, informative, reliable service to all of our customers.
To inquire about our services, call us today at (800) 698-3650, or email us through our contact form. We look forward to helping you!
Cited article sources
- Daily Properties: “Finding Mortgage Notes on a Low Marketing Budget” https://dailyproperties.com/finding-mortgage-notes-on-a-low-marketing-budget/
- Back2MarketingSchool: “The 5 principles of advertising” https://back2marketingschool.com/principles-of-advertising/
- List of non-disclosure states
https://www.attomdata.com/news/most-recent/do-you-know-what-non-disclosure-states-are/
Do you offer lists of mortgage notes for sale(performing
?
We do not provide lists of notes for sale as we usually buy and hold. We do consider joint ventures with self-directed private investors. If you are using a self direct IRA and are interested in joint-venturing on the purchase of a note, please give us a call to get more info. Thanks for your question. I hope we answered your inquiry to your satisfaction.