Buying Defaulted Loans – A Success Tale
“I may need some handholding.”
Will really heard these exact words from someone this week.
Who’s Will?
He’s a new investor learning how to buy notes and has been hitting the phones like a wild man. He started two weeks ago, and has made 110 contacts.
How’s he doing in his endeavor of buying defaulted loans? He just got 15 requests from banks for his company information and they’ve questioned him what his buying criteria are.
(Wait, this stuff really works?)
A Banker In The Note Buying Business Needs Help
Will’s tale is about an experience that he had with a banker. This banker spoke the exact words that make up the title of this article. Are you understanding this?
During his converation with the bank, the banker admitted to Will…”I may need some handholding.”
Are you serious?
Yes.
A banker.
A banker – a real employee at a small regional bank that Will called as part of his calling campaign to find banks that sell defaulted loans.
A Note Buying Experience
Here is how the conversation went:
Will: “I want to buy defaulted loans from your bank, can you please pass this along to the right person?”
Banker: “I have to admit that our bank has been thinking about doing this, but I have never been involved in a transaction. Isn’t there some kind of confidentiality agreemetn that we need?”
Will: “You are right, we do need one. I have an agreement that my company uses. We can just delete all the pertinent information. Also, I can gover the process of selling defaulted loans with you and your bank if you like.”
Banker: “I do have a few loans that I want to show you, so that would be fantastic. Thank you for the handholding.”
I‘m not making this up! Will, a new note buyer, is “handholding” a banker through the process of selling his defaulted loans.
The Key in Buying Defaulted Loans is Making Bank Relationships
If Will pulls this off properly, he could be the 1st (and only) investor the bank turns to in order to sell its portfolio of non-performing notes aka defaulted loans.
Do you see how backwards this picutre is?
Do you see how unsophisticated BANKS can be in selling their defaulted loans?
The opportunity here is huge.
The bank will probably turn to Will first in order to sell its defaulted loans.
What Will Your Note Buying Success Tale Be?
That person could be YOU. That’s all it took. I will be following Will’s progress in the future – it’s going to be impressive.
So get out there and DO some handholding, and stop feeling like you need YOUR hand held when buying notes. YOU can be Will. You can be teaching a bank how to sell its defaulted loans.