Introduction to the Core Product Areas of the Discount Note Industry

Although there are many actual products you can represent as a broker in the popular Discount Note Industry, there are really only two (2) “classic” or core product areas of associated with traditional operation.  They are:

  1. Private Mortgage Notes:  This includes private promissory notes on residences, commercial properties, mobile homes, investment properties, vacation properties, etc.
  2. Annuities:  This includes structured settlement, lotteries / gaming awards and investment annuities

DataMax “Note Broker Series” and “Mortgage Note Investor Series” website templates focus on products found in these core or traditional product areas.  DataMax “Mortgage Note Investor Series” websites focus only on the investment side of the industry for those individuals who are actual buyers of and investors in mortgage paper.

Cash Flow Professional Series” sites are expanded sites for industry brokers that include additional “niche” product areas of operation and even related enterprise areas for consumers.   Additionally, those brokers involved in the rehabbing and wholesaling side of real estate will expand their sites to display their current properties for sale using their Cash Flow Professional series sites.

Start Your Business With Core Products and Expand

As you will eventually learn, there are literally dozens of various contract types and obligations that can be invested in and purchased and sold using methods of discounting.  The Cash Flow Industry, or simply paper industry, is made up of hundreds of institutional companies whose business is to purchase this “paper” for investment.  Most paper is purchased at less than face value or at a “discount”, hence the name Discount NotesNote Brokers are simply independent freelance agents that work as middlemen or “finders” of such paper for sale and refer it to these institutional buyers for a fee or commission.

Core Industry Size

Some paper markets are small, specialized markets and attract just a few players.  Others are large and attract large finance companies and even banks.  For example, everyone has seen an ad or two on television for J. G. Wentworth regarding the purchase of structured settlementsStructured settlement investing is a very large investment segment with powerhouse buyers of paper.  On the other hand, you have probably never seen an ad for the purchase of private business notes and will find very few institutional buyers of such notes simply because this is a very small and specialized “niche” area.

Where to Start

Most new industry brokers will start their business with a focus on the traditional “core” products.  They will then expand operations as they find and are attracted to the many “secondary” industry products such as inheritance advances, pre-legal settlements, personal luxury asset loans, senior life settlements, etc.  Many more “professional” brokers will add the much larger commercial finance segment of the industry to include business finance products such as factoring, inventory finance, equipment leasing, merchant cash advances, and others.

Which Series Website is Right for You?

If you are absolutely certain your primary business will focus strictly on note brokering, then a DataMax “Note Broker” series site is the right one to choose.  It you are “mobile creative” and anticipate expanding into many product areas and payment streams, then a “Cash Flow Broker” series website will be the right choice for you from day one, even though you may not initially market to the additional cash flow product areas found on these larger websites.

Drop Down Menus

Additionally, if you intend to expand your operations into the professional areas of lease option investing, real estate wholesaling, fix and flip, etc., you will want a “Cash Flow Broker” series website with drop down menus.  It is very easy (and inexpensive) to add additional product areas and pages to DataMax websites with drop down menus as you expand your business.  For example, those involves in real estate transactions will want pages to insert images of your wholesale properties, fix and flips, and other real estate opportunities.

Get “Wicked Smart”.  Immediately Start Investing in More  “Inexpensive” Industry Knowledge.

One of the most important tasks you have as a “newbie” mortgage note broker is to educate yourself and expand your industry knowledge.  Such a financial education represents an enormous asset and opportunity for you to create a true career.  And most importantly, acquiring such an education does not need to be expensive.  Throughout this DataMax blog and it’s many articles, you will see links to excellent books on various subject matter.  Many are in KINDLE FORMAT which means if you have a Kindle Reader or Amazon Fire, the book or training guide and its valuable knowledge is often accessible for under $5.00, or in some cases, free.

Even movie star Matt Damon knows the value of such an inexpensive opportunity.

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