Traders / the “Pros”: Insight from the Top
How to Learn from your Sellers
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Objectives for this Session
• The Good, the Bad, the Ugly – in Reverse
• Put some perspective to our guests
• 4 steps to mastering sellers: Capital Markets &
Traders
• Practicing the elevator pitch: what works
• Practicing the elevator pitch: what doesn’t
• The bid process: more insight
• Advanced tips for buyers (smaller in
particular)
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The Good, the Bad, the Ugly (re: Brokers)
Remember this, from the A-Z?
Bad Good
Type Knowledge Exclusivity Timing
Good YES or NO
The Bad NO
The Ugly Usually YES
Do you think this happens in reverse to you?
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About Our Guests
Mike Mand was Senior Trader, Matt Kennedy was Trader
at GMAC / RFC – then GMAC / ResCap
• Both came from loan originations departments ($6-
12B / month 1st and 2nd liens) early – mid 2000’s
• 2008, traded $3B in distressed whole loans, 4 traders
– 5-10 buyers throughout the year
• Based in Minneapolis, with GMAC until Nov. 2008
Rocket Scientists vs. “Regular Guys”
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4 Steps to Mastering Sellers (Traders)
• Remember – there are 3 broad categories of sellers:
• Loss Mitigation (banks, smaller
institutions)
• Secondary Marketing (mortgage
companies, warehouse lenders)
• Trading Desks / Capital Markets (banks,
hedge funds, larger financial institutions)
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4 Steps to Mastering Sellers (Traders)
• Practicing the elevator pitch: what works
• Example calls with Mike & Matt
• Keys to remember:
• Broker Price Opinion (BPO) fades – how
much has home price dropped from
bank’s value on spreadsheet?
• Keep it “easy”, this isn’t a race
• Find out who you’re talking to (you’re
after a relationship, not a deal)
• Convince them to “trust” you
• Transparency & predictability rule 6

4 Steps to Mastering Sellers (Traders)
Step 1: Practicing the elevator pitch: what works
• If there’s only one Key you remember, it’s
this:
• Constant Contact & Follow - Through
• It’s the old “Polite Persistence” mantra
again, but without the persistence
• (Remember how many buyers GMAC
had throughout the entire year – a lot?)
Who was your “best” broker, and why?
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4 Steps to Mastering Sellers (Traders)
Step 2: Practicing the elevator pitch: what DOESN’T work
• The One-Line Bomb (no, please, not
another one of these bozos?!@#)
• Other things to avoid
• Arrogance
• Let “No” mean “No”, even if only for
today (the telemarketer)
Remember the basics here:
honest, up-front, follow-through
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4 Steps to Mastering Sellers (Traders)
Step 3: The bid process – some more insight
• April 14 NDA sent
“Indicative”
• April 15-16 Bid package sent Bid Process
• April 20 Preliminary bids due
• April 20-23 Review bids
• April 24 Select finalists (2-4) “Final” Bid
• April 27-May 8 Final due diligence Process
• May 6-8 Collateral review
• May 11-13 Final “tapes” sent for April
• May 15 Final bids due
Close /
• May 19 Close Date Transfer
• June 3 Service Transfer (close+15) 9

4 Steps to Mastering Sellers (Traders)
Step 4: Advanced Tips for Buyers (Smaller Buyers)
• It’s easy to feel “overwhelmed” by large
numbers ($Millions, $100s of Millions,
$Billions!)
• But there’s one key thing to remember:
• All trades are not “clean”
Tip #1: pull-throughs & “fallouts”
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4 Steps to Mastering Sellers (Traders)
Step 4: Advanced Tips for Buyers (Smaller Buyers)
• Fallout Pools – How-To’s
• Be confident
• Be generous
• (Relationship, not a trade)
• Be quick
Tip #2: shared due-diligence
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4 Steps to Mastering Sellers (Traders)
Step 4: Advanced Tips for Buyers (Smaller Buyers)
• Shared due diligence – How-To’s
• Share with seller
• Share with other buyers
• In simple terms, use info that’s not your
own
• Cheap alternative: but you need to know
what you’re doing
Tip #3: split-upside / seller-carryback
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Q&A with Mike and Matt
Ask away … this is YOUR time
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Next Session TBD
1 of 3 Special Topics
• Licensing reviewed
• Bankruptcy In’s and Out’s
• Tools to help you manage your leads and your
Note Deals: meet “RED”
Note Brokering Course – hang on to your
skivvies …. it’s coming ;-)
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For Those of You Looking for Bid Assistance
Optional weekly calls with Mike/Matt
• Small group, less than 6 people at a time
• Coaching you through a live bid or…
• Prepping you for your next (first) bid
Email: info@notebuyingprofits.com
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