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If you don’t have a copy of the Beta Power Quoter, please download a copy here: Power Quoter – Beta(2) Sorry, this is no longer available.
Czarina, in this training, you said that flipping notes is the best way to get started especially if you don’t have a lot of your own capital to work with. You stated that the way you speak to investors when raising capital is different than when you are looking to sell the notes. Can you help me understand this better? What kind of things should we be talking about when raising capital and what are some common questions and answers that potential investors might pose to me while I’m out trying to raise capital? Is there a sample script somewhere that I can download? Any help you can provide will be great. Thanks!
Binh, very quickly, I would use 2 different types of investors when doing a deal like this. The person who gives you the upfront capital is looking for a different return than the person you would sell the partial to for a longer term investment. For the Capital Front Guy, treat him just as he is, a Bridge Funder. He needs to know what deal you are looking at and how much he can lend for how long. Since you are merely flipping the deal, he will want more upfront and fairly quickly.
The Backend Buyer is the person you are selling the note to (or the partial) for a lower yield than what you bought it for. This person wants to know how things relate to long term investing, the safety, what he can do if it defaults, etc.
There’s no script and I can’t really say exactly what questions they will ask. But you should know what you want to say to them and using their needs/desires/current investment strategies in mind when making your presentation, you will easily give a clear enough picture for them to make an informed decision.