Our "Secret Sauce" to the Note Biz

Put this article in the "secret sauce" bucket. Actually, honestly, these best practices aren't that secret, but they aren't easy to practice on a consistent basis. Maybe THAT's our secret sauce...that we do this stuff on a daily basis.

Shhhhhh.

So here we go...for all you newcomers to the Note space, do these things consistently and you'll build a solid reputation over time.

1. Make sure purchasing funds are available at the time of bid. Scrambling for capital to close a deal is bad business and a sure-fire way to kill a relationship.

2. Make sure it's easy for the seller to evaluate your bids. Communicate openly to ensure there's no confusion and send your bids in a Microsoft Excel file with all the pertinent information (e.g. seller's loan ID, servicer ID, and the last name of the borrower).

3. Present each bid as a percent of the Unpaid Balance (UPB).

4. Respect deadlines; three in particular:

a. When submitting - Submit bids on time, especially if there are others bidders involved, and communicate openly with the seller if you need more time to complete more due diligence (explain why you need more time).

b. When closing - Close when you say you're gonna close.

c. When wiring - Wire funds when you say you're gonna wire the funds. And remember time differences; as a general rule, wire funds before 5 p.m. EST to ensure they get to the seller that same day.

5. Have an organized due diligence process. Tons of information is exchanged during a deal so it's important to be organized during the different stages.

These are just a few best practices. We've learned over the years there are more than a few, so stay tuned to future posts. We'll continue sharing the not-so-secret sauce.