COVID-19 UPDATE: Many prospective agents have asked us about the affect the coronavirus is having on our business so we would like to address that. Fortunately for our agents, this is one of the best times ever to be in this business. Our business has doubled since the lockdowns began, this is because so many people are selling their notes to get much needed cash. Now is a great time to start a note referral business.
Owner Financing is a Multi-Billion Dollar Untapped Market and it occurs in about 10% of all home sales in the U.S., and it’s growing in popularity every day. Our company has been in business since 1997 and is one of the largest buyers of Owner Financed Real Estate Notes in the country. We have created a program whereby we work together (You and Charter Financial) so that we both make money in this great market. Before we go further, it’s important that you understand exactly how owner financing works, please watch the short animated video below for an easy to understand explanation of our business.
Hopefully you now have a good understanding of how owner financing works. It’s pretty simple really, instead of a home buyer going to a bank for a loan or paying cash for a home, the home seller acts just like the bank and finances the home for the buyer. There are many reasons why a home seller would finance the buyer, one is that it makes it easier for them to sell their home when the buyer doesn’t have to qualify for a traditional bank loan and two, sometimes the home seller would like the monthly income that comes from holding the note. Either way, there always comes a time when the note holder decides they would prefer to have a lump sum of cash now instead of waiting years to collect all of their money, this is where you come in.
We are going to teach you how to find notes and then you will bring them to us to purchase, we will cash out the note holder and pay you a great referral fee each time. We make money on each deal because we buy the note at what is known as a discount; this means that we do not pay the full value of the note, this is common practice in our industry. For example, if someone has a note with a balance of $90,000 left on it, we might pay $80,000 for the note, we make our money over time as the note pays off. You make your money upfront each time we close a deal for you, the home seller gets their lump sum of money and nothing changes for the home buyer except they now pay us each month. Everyone wins!
Our opportunity is really unique because YOU determine your fee on each and every transaction. For example, let’s say that you bring us a note and we tell you that we will pay $100,000 for it. You are then free to determine your own fee on that deal by subtracting the amount you want to make from the amount we offered. Let’s say you decide on this particular deal that you want to make a fee of 5% (the average is 3% – 6% but you are free to charge more or less on each deal). So in this case you would deduct your fee of $5,000 (5% of $100,000 = $5,000) from the $100,000 that we offered and you would then offer the client $95,000 ($100,000 – $5,000 = $95,000).
Our Offer to You: $100,000
Your Offer to the Client: $95,000
You Make: $5,000
When the deal closes we will pay your client $95,000 for their note and pay you your fee of $5,000 for a total payout on our end of $100,000. You get to determine how much you want to make each and every time. You might be asking yourself, could I have taken a fee of $20,000 on the above example. The answer is yes but then your offer to the client would have only been $80,000 and they might not have accepted. You will find that our offers are market driven and very competitive, and if you take a reasonable fee on each transaction then you will be able to close more transactions. If you are not sure how much to charge, just ask us and we will be happy to provide you with guidance each and every time.
Why we need more Referral Agents
There are literally millions of people in this country who are currently receiving payments from an owner financed mortgage note. Our company is a major buyer of these notes and it is our company mission to purchase as many of these notes as possible. We are well funded and have the ability to purchase an unlimited amount of notes. As each day passes, there are literally millions of dollars of new notes being created and this offers you and our company a great opportunity. Since the inception of our company, we have relied on a network of referral agents from around the country who work as independent agents and who bring us these types of deals. We have found that this formula works best for both our agents and our company and the great thing about this is that there is very little competition in the note business.
We offer an excellent home study program that will teach you our business, we call it “Building Wealth Together”, because we work together, You and Charter Financial to find as many notes as possible to purchase and we both make money each time. Our program will teach you the most up to date and proven methods of locating notes. One of the best things about working this business is that you really do not have to sell people anything; you will find that note holders will be coming to you for your help in getting them the money they are looking for.
Once you sign up with us you will receive everything you need for success, there is nothing else to purchase and no one will call you trying to upsell you on anything else. We would prefer you spend your money on marketing your business and enjoying your new found freedom.