Expanding Your Products and Operating Areas

One of the great characteristics about the Discount Notes / Cash Flow Brokering business is the ability to expand product areas and areas of operation.  This makes the Notes / Cash Flow business a perfect opportunity for "mobile creatives" and those looking to establish multiple income streams from their ventures.

Real Estate Oriented Expansion and Financial Independence

Mortgage notes and mortgage note discount investing has always been the true "cornerstone" of the note industry since its earliest days.  Over the years it periodically has increased and decreased in popularity based on certain aspects of the general U.S. economy.  In today's historically low interest rate environment, where investors are lucky to garner 1% on a bank certificate of deposit, quality private mortgage paper yielding 8% or higher is in great demand. 

From the investment side of the industry, mortgage notes are just one popular segment and area of operation.  They are generated from the "sale" of a piece of real estate and many mortgage note investors also become involved in this pure real estate side of the industry...buying and selling actual properties for profit.  And, their extensive understanding of private mortgage notes provides a powerful method of alternative finance when it comes time to sell such investment property. From the broker side of the industry, this is also true. 

The Real Estate Path:  Lack of Capital is No Problem

Industry mortgage note brokers are most often only brokers simply because they do not currently have the capital to actually buy and invest in mortgage notes themselves.  But because of their involvement in private real estate secured mortgage notes, they are eventually introduced to methods of acquiring or controlling real estate with little or no money down.   Eventually, many such brokers make the important transition to successful real estate investing and they often owe all their real estate success to the industry introduction they received through the industry cornerstone, mortgage note brokering

So success in mortgage note brokering can be achieved with little or no capital.  But what are some other real estate-related areas where you can expand your business and where little or no capital are required?

  • Real Estate Wholesaling
  • Lease Option Investing
  • Real Estate Fix and Flip
  • Licensed Real Estate Agent
  • Licensed Mortgage Broker

 Factoring:  The Premier Business Opportunity for Brokering

But what about those that just want to stick to brokering?  Although factoring actually has little or nothing to do with the traditional consumer-related cash flow industry, it is related and has always been associated with it, simply because, like mortgage note investing, it is a "discount" transaction Factors purchase invoices from their clients on a daily or weekly bases and those purchases are at a discount, just like a mortgage note will be purchased at a discount from a note seller.  From the broker's aspect, the major difference between being a note broker and a factoring broker is that...

  • Note Brokers...deal with consumers and consumer-related finance products, being a middleman between the consumer and the institutional note / contract buyer during a sale.
  • Factoring Brokers...deal with businesses and are business-related loan brokers, dealing in the various methods of business finance and are a middleman between the business owner and the institutional lender during a financing.

 For those note brokers with a career goal of focusing strictly on being a middleman and not an investor in real estate, factoring offers a very, very attractive business expansion opportunity especially due to the relative ease of finding "targets" to prospect.  With the variety of finance products found in the industry in addition to just factoring, literally every business is a potential commission-generating client.  And what great commissions they are...residual and life-of-account.

Thus, the ease of locating "suspects" to target and market to makes factoring and the brokering of commercial finance products one of the ultimate business opportunities for those with a brokering-focus, rather than an investing-focus.

Multiple Income Streams from Related Businesses

Regardless of how they choose to expand their business, virtually all "true" Cash Flow / Note Brokers fall into the classification of today's "mobile creatives" and are seeking to create multiple income streams of revenue from a variety of different, but related businesses.  The goal in creating "related" income streams is that the members of the networks you develop have the ability to refer business to any one of your income streams and when you market, you have multiple products to sell to the same prospect or client.  You DO NOT want to divide your attention and marketing dollars into completely unrelated businesses.  Get the most bang for for your marketing buck by developing income streams that are somehow related, either because of product or marketing opportunity.