Traders / the “Pros”: Insight from the Top
How to Learn from your Sellers




                                            ...
Objectives for this Session

•   The Good, the Bad, the Ugly – in Reverse

•   Put some perspective to our guests

•   4 s...
The Good, the Bad, the Ugly (re: Brokers)

Remember this, from the A-Z?
                                           Bad    ...
About Our Guests

Mike Mand was Senior Trader, Matt Kennedy was Trader
at GMAC / RFC – then GMAC / ResCap
 •   Both came f...
4 Steps to Mastering Sellers (Traders)


•   Remember – there are 3 broad categories of sellers:

     •   Loss Mitigation...
4 Steps to Mastering Sellers (Traders)
•   Practicing the elevator pitch: what works

    •    Example calls with Mike & M...
4 Steps to Mastering Sellers (Traders)


Step 1: Practicing the elevator pitch: what works

    •   If there’s only one Ke...
4 Steps to Mastering Sellers (Traders)


Step 2: Practicing the elevator pitch: what DOESN’T work

    •   The One-Line Bo...
4 Steps to Mastering Sellers (Traders)
Step 3: The bid process – some more insight

 •   April 14         NDA sent
       ...
4 Steps to Mastering Sellers (Traders)


Step 4: Advanced Tips for Buyers (Smaller Buyers)

    •   It’s easy to feel “ove...
4 Steps to Mastering Sellers (Traders)


Step 4: Advanced Tips for Buyers (Smaller Buyers)

    •   Fallout Pools – How-To...
4 Steps to Mastering Sellers (Traders)

Step 4: Advanced Tips for Buyers (Smaller Buyers)
   • Shared due diligence – How-...
Q&A with Mike and Matt


Ask away … this is YOUR time




                               13
Next Session TBD


 1 of 3 Special Topics
     •   Licensing reviewed
     •   Bankruptcy In’s and Out’s
     •   Tools to...
For Those of You Looking for Bid Assistance


 Optional weekly calls with Mike/Matt
      •   Small group, less than 6 peo...
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How to Buy Notes Defaulted Mortgages Non Performing Notes Buy and Sell Notes NoteBuyingProfits.com

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http://www.NoteBuyingProfits.com No-nonsense Note Buying Information. Up-to-date! Hours of FREE Note Buying Training Videos. FREE 1-on-1 Coaching Session. Click or Call 718-783-7605

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How to Buy Notes Defaulted Mortgages Non Performing Notes Buy and Sell Notes NoteBuyingProfits.com

  1. 1. Traders / the “Pros”: Insight from the Top How to Learn from your Sellers 1
  2. 2. 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) 2
  3. 3. 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? 3
  4. 4. 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” 4
  5. 5. 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) 5
  6. 6. 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
  7. 7. 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? 7
  8. 8. 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 8
  9. 9. 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
  10. 10. 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” 10
  11. 11. 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 11
  12. 12. 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 12
  13. 13. Q&A with Mike and Matt Ask away … this is YOUR time 13
  14. 14. 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 ;-) 14
  15. 15. 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 15

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