Sources of Paper - (Classified ads)

(1) Classified ad - A classified newspaper ad can be very effective, but can be costly. It can be a waste of money to advertise if some care is not put into designing the ad. Avoid "false economies" where you try to save money by reducing the size or frequency of ads.

Let me give you an example. The ad I have used very effectively in my area and other parts of the country has a bold large headline that is specifically designed to attract attention. It is also sized large enough to put my ad at the top of the column - which is an advantage. I noticed the calls had totally diminished one week and inquired why. I found out that an employee had reduced my ad to two lines by dropping the point size of the type to save money.   The ad says:

FAST CASH

TOP PRICE

We buy contracts, trust deeds and mortgages. Any size,

any state, any condition. Call John at 374-NOTE

This ad isn't magic and may or may not work best in your area, but it's development is very important. The strategy behind the ad is what counts. There are some elements that are important here.

My bold headline catches the reader's eye. That results in receiving the first call. I can also aid this by being at the top of the column. Most papers put the largest ad at the top of the column. Some papers position ads alphabetically. Some papers position ads by longevity (whoever has advertised longest, consistently). I will do whatever it takes to be that first call. There is no better approach to advertising. If you do your job right and get the first call, you have a great advantage. Handling the call right can also mean that you will be the last call also. All of the other advertisers can fight for the scraps.

The FAST CASH headline is important. I find that most note sellers want cash yesterday. Some are under incredible pressure and time constraints. This may be their last chance for quick cash.

The TOP PRICE part of the ad relates to the variety of options I can offer the seller of the note. I follow a "Benefits" approach to funding notes. I counsel with the note seller and find ways to meet their needs. That may not be an all cash offer. I may buy a partial, use staged funding, give them an amortized partial or use many other options. This topic is way beyond the scope of this book. For more details on all aspects of partials and staged funding, see the book "Advanced Discounting and Negotiation Techniques" by John D. Behle (801) 297-2503.

A couple other examples of headlines are:

CALL ME LAST - (This one makes the point of you will make them the best deal - another ad in the paper said CALL ME FIRST)

CASH IN 20 MINUTES - (This one really stresses the urgency. Some have said it is unbelievable to them. It is possible to buy a note that quick in many cases. In others it is possible to advance option consideration or do some partial funding.)

FULL PRICE - (This headline stresses the win-win of using partials and staged funding.)

DON'T DISCOUNT - (This headline also stresses using partials and staged funding.)

WARNING!  Do not sell a mortgage or trust deed before reading this special report.  (You then gather leads through giving out a report on how, when and where to sell a note.  Stress partials and other creative options.  Build your credibility.  A gentle warning about people that can't perform is appropriate too.)

Do all you can do to have a human voice on the end of the phone. If it can't be you, then have someone else pick up the calls. A home-bound individual might be a good option. One approach is to reward them for getting names and phone numbers. Many answering services do not make a serious attempt to get phone numbers - especially when they are busy.

Much of the world still hates voice mail, but they like it better than answering machines if it is structured properly. A serious approach is to have a voice mail that forwards calls. I have several computerized voice mail cards, that will forward to a cellular or any other number. In addition, if the line is busy or is not answered it goes back into a voice mailbox to take a message and then the computer is like the "Terminator" in tracking me down to give me the message.

It can be costly to give out your cellular number, but alot cheaper to have your voice mail transfer the call to whatever phone or location you are at.

Take the first call and make it count. Gather the information you need in one call and move to buy the note if it is a good one. Avoid the call back. Calls can come in after business hours and you may miss a good deal by waiting until 9:00 the next morning. I may have bought the note by then.

That first call is all important. Your goal is to decide whether you want to buy the note and move to tie it up. In some areas, it may work to not talk price on the phone. Not in my city. I will gather the information I need and negotiate based on examination and confirmation of the details. I will give a "contingent commitment" to buy the note and set an immediate meeting with the seller.

Ideally have a local phone number from the area where you are advertising. The alternative is an 800 number. This is essential and will pay off well in the long run. Many people do not understand that an 800 number isn't much more expensive than long distance. Avoid the personal 800 numbers where the people have to dial an extra code or PIN number. They don't want to bother with that.

The most important thing you can do is to get a name and number on the first call. Caller ID has finally made it to most areas and will be one of your most valuable tools. The name and number is there automatically. I've lost too many good prospects in the past where they talk to you for a few minutes and then say thanks and hang up before you have a number to call them back.

One of the nicest aspects of this is that you have the name and number of all calls whether they left a message or even hung up before it was answered. You can call back anyone who has called. This is especially useful with those callers who leave a message and forget to leave their number or name. It can be interesting when they say their name and number is one thing and your Caller ID shows your competitor's name and number. Tell him that you have 10 million dollars of funds in the checking account and that you pay full price for all mortgages. You could also tell him or her that a new law makes it illegal to buy notes in his state.

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