Note brokers seek out note holders receiving payments from real estate-secured deeds of trust or mortgages and connect them with investors seeking to purchase them. The broker earns a fee for acting as the financial matchmaker between the two parties.

Anybody claiming there are more good notes available than ever to buy is either uninformed or lying to sell you a course. Many of the "on-line exchanges" promoting notes for sale are filled with seminar graduates competing against each other.

1. Know Your Market

Note brokers are financial matchmakers, connecting note holders who want to sell their individually held seller financed notes with investors who want to purchase them. They earn a finder’s fee at closing of each transaction.

Anyone who claims that there are “more notes in the United States than you could ever hope to buy” is either uninformed or lying for profit. The fact is that most of these notes are in a very bad state and would not be acceptable investments to anyone but the original note holder.

In addition, many of these infomercial note brokering courses claim to have a large number of "note buyers." What actually happens is that new course graduates call the first "note buyer" on the list (who is really another note broker) and then they get stuck in a daisy chain of note brokers who all try to earn their fee on a non-investment grade note.

2. Build Relationships

Note brokers need to develop relationships with note buyers and other professionals who are in the industry. This is an essential part of the business and should be done in a very careful and professional manner.

Many new note broker's go out and purchase a list from a seminar course promoter that promises them a list of "note funders" or real note investors who will rebate back to you some amount, say $1,000 for every deal you bring them. Unfortunately these lists are almost completely useless and what usually happens is that a note seller will call one of the "note funders" on the list and they'll make an offer and, if it's too low, the deal won't get done and everyone has wasted their time.

3. Get Involved

Note brokers act as the financial matchmakers connecting owners of seller-financed mortgage notes with investors that purchase them. They have the opportunity to make a large income using the time value of money, but it is not easy and requires significant networking skills.

Often times new course graduates who get the idea to become a note broker find themselves getting scammed by so-called "note buyers." These are actually seminar participants trying to sell their deals to real investors who can't afford to buy them.

This can lead to frustration and discouragement for those who want to start earning cash flow from notes quickly. It is important to set realistic goals and start small. Often working as a single person is best until your business grows to a point you can hire help.

4. Get Sales Leads

One of the hardest things about being a Note broker is finding a steady stream of note buyers or investors. Once you find them you can nurture the relationship and eventually ask for a sale. You should also stay top of mind with the leads so that when they are ready to purchase a sales solution your company is the first that comes to their mind.

Some note brokers use so called on-line exchanges to find notes to broker to investors. But these exchanges are often smoke and mirrors. They will list a note and tell the seller that they have "note funders" or "note buyers" who are willing to rebate back to them some amount of money, say $1,000.

The cash flow notes business can be very lucrative and rewarding if you have the right training and the ability to find investors. But don't let the stories of overnight riches fool you, this is a business that takes time to grow.

5. Cold Calling

Note brokering can be an incredibly lucrative business for those that are willing to put in the time and effort. You can invest in mortgage notes for profit, resell them to private investors, or even use them as down payments on real estate purchases.

Business notes are another form of promissory note that can be brokered as well. These are usually sold at a discount to note buyers and are often used as a source of capital for small businesses.

Many infomercial note brokering courses promise a large pool of "note buyers" that you can sell your notes to. This is largely a scam. In reality these "note buyers" are often other seminar course graduates who are competing against you for the same deals.