Thank you for your interest in our home business opportunity. This easy to understand guide will teach you about our home business opportunity and how you can earn an average of $3,000+ per month from the comfort of your home. Our company is Charter Financial and we have been purchasing privately held owner financed mortgage notes since 1997.
What is an “Owner Financed Mortgage Note?
When someone purchases a home or property they have three options to pay for it. The first option is to obtain a bank loan, the second is to pay cash for the property, and the third option is the one we focus on and occurs in around 10% of all real estate transactions, it is known as owner financing.
In owner financing, the owner of the property will act like the bank and sell the property to the buyer and the buyer will then pay the seller each month, same as if the buyer obtained a bank loan except that it is an individual who is financing them, this is known as owner financing.
After a home owner sells their property and finances it for the buyer, they are said to be “holding or carrying a note” and they now receive monthly payments from the buyer. What’s interesting is that there almost always comes a time when this note holder would prefer to have a lump sum of cash instead of small monthly payments.
This is where you come in. We will teach you how to find these notes and our company will purchase them and pay you a great referral fee each and every time. The average fee is over $3,000+ per transaction.
If any of this sounds technical, don’t let that bother you. Your entire job is to just locate notes. You do not need a financial background or any knowledge of real estate. No licensing is required to work with us as a referral agent and you can work the business in any state you desire, no geographical boundaries.
You will find that our business opportunity is very unique because although you might have never heard about our business, you will see that that it is a multi-billion dollar market, and it’s virtually untapped and your earnings potential is unlimited.
All you need is a desire to earn additional money for you and your family. Another great thing is that you can work from home, do not need any employees and you can set your own schedule.
Watch the video below for short and fun explanation of how our business works.
Additional Income Streams
Charter Financial also purchases other income streams that you may choose to work with. These options will open up your business to additional money making opportunities.
Structured Court Settlement
Settlements, as we call them, are paid out by insurance companies who are liable for their customer’s car accidents, wrongful deaths, medical malpractice, etc. These awards are almost always paid out over time in the form of an annuity, paid by the insurance company. The types of notes are also created daily all around the country.
Seller Financed Business Notes
This segment of our industry is EXPLODING. These types of notes close daily and result when a business owner sells their business to another individual and finances it for them. The business seller receives a down payment and usually finances the business for anywhere between 3 to 10 years. The market potential is enormous and we estimate over 50 billion dollars’ worth of business notes are in existence at the present time. The reason is because it is difficult to obtain traditional bank financing when purchasing a business and business sellers are therefore forced to offer financing for the buyers.
These types of notes are the least common simply because there are not that many lottery winners. However, we estimate that there are approximately 100,000 lottery winners in the U.S. who currently receive lottery payments. When an agent locates one of these, they feel like they have won the lottery due to the enormous referral fees paid on these types of deals, sometimes in excess of $100,000+. If you combine all the owner financed mortgage notes with structured settlements, business notes and also lottery winnings, the market for these is in excess of hundreds and hundreds of billions of dollars.
If you just learned about this business, and most people are just like you, then you will see that the market and earnings potential for you is off the charts and there is very little competition.
Our Focus is to Teach you How to Find Notes – You Refer them To Us – You Earn Huge Fees
Also, keep in mind that our referral agents earn an average of $3,000+ per transaction and the average time that you spend on any given transaction is usually less than three hours.
How to Find Notes
Now that you have an understanding of the types of notes we purchase, it’s time to learn a few methods that you may use to find them. Keep in mind, you do not need to worry about the technicalities of a note or real estate in general, your entire focus will be TO FIND NOTES FOR CHARTER FINANCIAL TO PURCHASE.
We teach you over 50 methods that you may use to locate notes, below are just a sampling of some of the more popular marketing methods that our agents use.
1. Direct Mail
2. Placing Ads
3. Reverse Marketing
A direct mail campaign is by far the most effective long term method of marketing. The question is, how do you get a list of names? You may either research them yourself or purchase a list. Real estate records are public information and we teach you how to use online courthouse research to find the names of individuals who have notes, then you mail to them using letters or postcards, we provide you with samples. If you do not have the time to research courthouses online then you can purchase a list of names from us or from any other reputable company.
You may place free classified ads on multiple sites such as www.craigslist.com. You may also place small classified ads in local newspapers. Another excellent method is to advertise on search engines like Google and Bing using Pay per Click Advertising. We have a video that teaches you how to do this. We have documented cases of referral agents earning over $5,000
and spending just $50 in search engine advertising. The key is to place your ads locally, where you have an advantage over others.
This is when you research for people who are selling a home and offering owner financing. You may contact them and let them know as soon as they sell their home and have a note then you can purchase it from them. Just think of it this way, every person in the country who is in the process of selling their home and offering owner financing, is a potential future client. Also, you may research past ads where perhaps 3-6 months prior, someone was selling a home and offering owner financing. It is now likely that they would be holding a note and might have interest in selling it. These methods can be done without using any out of pocket money.
Networking can really help you get started and also take your business to the next level. The first thing you should do is to ask everyone you know if they have a note or if they know of anyone else who has a note, you will be surprised by the positive responses you receive. Also, you can network with people who come into contact with notes such as attorneys, Title Company and escrow companies, accountants, etc. You can even join your local Chamber of Commerce or Rotary for additional networking opportunities.
Like was mentioned above, there are over 50 methods that you may use and the ones listed above are some of the most popular methods. We always recommend that you determine your advertising budget and the amount of time you have to devote to the business, then decide on which marketing method(s) would work best for you.
Submitting Notes to Charter Financial
There is nothing more exciting than finding your first note. As you will see, the process of obtaining an offer and working with Charter Financial is really an easy and simple process.
When a note holder responds to your marketing efforts all you have to do is ask them the questions found on our one page Mortgage Quote Sheet or you may submit the information through our Online Submission Form or you may fax or email the information to us. Once we receive the information we will work up an offer for you, usually within 24 hours. After you receive your offer then you make a new offer to your client. Referral fees are discussed below.
Setting Your Fee
Now that you know how easy it is to submit the information to us, it’s time to learn how to set your referral fee, a fee in which you are free to determine.
Yes, that’s correct. You get to determine your own fee on each and every transaction. Referral fees usually average around 3% – 6% of the amount that we offer, but sometimes can be more or less than that amount. It just depends on the circumstances for each note.
To calculate your fee, let’s assume that we offered $100,000 for your note and you want a fee of 5% or $5,000. Then what you do is subtract the $5,000 from the $100,000 that we offered and then offer your client $95,000 for their note. $100,000 – $5,000 = $95,000 – It’s that Easy!
Our Offer: $100,000 We offer to pay $100,000 for this note
Offer to your Client: $95,000 At closing we pay your client $95,000
Your Fee: $5,000 At closing we pay you $5,000
Here are a couple of things to keep in mind when setting your fees. The amount you can make on each transaction depends on how much the note holder is willing to accept and also on whether or not the note holder is shopping the note around and has other offers.
Example: If you receive a referral from a friend of yours then there’s a good chance that the seller isn’t shopping the deal around, thus you can make more because there is no competition. However, if you have a classified ad online and you see other ads on the same site then most likely so did the note seller. Then you know you have some competition so you might want to take less of a fee on this particular note in order to get your offer accepted.
It’s really not complicated and if you ever need guidance on how much you should make on each deal then just ask us and we will gladly assist you on each and every transaction. Remember, your entire focus is finding notes for us, we will assist you with any help you need along the way. Also, keep in mind that we will always pay you the difference between the amount that we offer for the note and the amount you offer your client. We have an agreement in our training package that we both sign that clearly states this.
It is always an exciting time when you receive your first offer back from Charter Financial, after you receive your offer then it is time to contact your client with their offer. You might be a little nervous about contacting your first client with the offer so to make the process easier for you, just can use the short script below as a guide when you contact your client.
You: Hello, Mr. Jones, this is Your Name, we spoke yesterday about your note and I’m contacting you with our offer. Is now a good time for you?
Client: Yes, it is.
You: I’ve worked up an offer for you that I think you will be happy with.
You: Assuming all of the information you provided is accurate, we can offer you $$$ for all remaining payments on your note.
Client: Ok, let me thank about that and I’ll get back in touch with you after I speak with my wife.
You: Great, I look forward to hearing from you soon.
You then wait to hear back from the client. If the client doesn’t get back to you when he said he would then give him another day or two then call to follow up. When you do speak with him and he accepts your offer then you are on your way to financial freedom.
There is no better feeling in the world than having your first offer accepted and when it is, we make it easy for you the rest of the way. When your client agrees to your offer, tell him that You will have someone from the home office call him back within a couple of hours to get the process started.
Then all you need to do is call in or email us the following: Note sellers name, telephone number and accepted offer amount. We will then take over and contact your client and get the process started and completed in a timely manner (usually 2-3 weeks). It really is that simple. Remember, your only job is to locate note holders and have them agree to your offers, we will do the rest.
Business Set up
To this point, you have learned about all the different types of notes that Charter Financial purchases and you have learned a few methods find them. You have also learned how to submit them to us for quotes and also how to make offers to your clients. Now it’s time to set your business up and actually get started locating notes.
First, we want you to know that Charter Financial will never offer legal or accounting advice to any of our referral agents, but we do provide you with guidance on how to set up your business.
The only thing you really need in order to work this business is a telephone and it can be a cellular phone to begin with and you will also need an email address. Those are the basic things that each referral agent needs and probably already have.
Many agents will ask us if they should incorporate their business. We really can’t answer that for you but we can tell you that over 98% of our agents set up their businesses as a sole proprietorship, this means that they are not incorporated in any way and that you use your social security number for tax reporting purposes.
When it comes to naming your company, you have two options. You can either come up with your own company name such as: My Funding Company or you may use your own name and state that you are an Independent Agent for Charter Financial.
Agents always ask us if they need to set up a fax and the answer is no. We rarely fax anymore and most documents are now scanned and emailed. If you do not have a fax or access to a scanner then don’t worry, we can take care of sending and receiving documents for you.
As was previously mentioned, your whole focus should be on locating notes and everything else should be secondary. You don’t need to know all of the ins and outs about how notes are created or know anything about interest rates or real estate, your entire focus is on Finding Notes.
Another important thing you should be aware of is that at Charter Financial, We only make money if You make money. That is why we call our training program “Building Wealth Together”. Because we work together so that we can both succeed and profit.
When you sign up and start working our program you will receive our great home study manual, immediate online access to our online training materials that include recorded training webinars and tele-seminars, forms documents, marketing materials and everything you need for success. Plus, you also receive telephone and email support as well. We will do all of your paperwork for you on all of your transactions. We provide you with all the training materials and support that you need to become successful because if you aren’t making money, neither are we. We also throw in a bonus on your first three transactions, these bonuses are in addition to your referral fees. You receive a bonus of $195 on your first transaction, $250 on your second and $500 on your third.
Now it’s time for you to get started. If you are ready then we have several ways for you to get signed up with us and get started on your way to becoming a successful referral agent for Charter Financial.
You can sign up online by Clicking Here
You can call in your order to our 24 Hour Toll Free Order Line – 800 566-1609
You can also pay by check or money order – Print out our Mail In Order Form
Hopefully you have a pretty good understanding of how our business opportunity works. If you still have questions about our program then please visit our website at www.brokeringnotes.com or call us at 800 349-0552 and we will gladly assist you.