April 06, 2009
Oceans of Water and Nothing to Drink
When I speak to a note holder for the first time, I typically get one of three dispositions. First is what I call the 'tirekicker'. Tirekickers really have no need for the money, and are just curious what kind of price the market would pay. We'll speak more about the tirekickers in a bit.
The second kind is the 'cliffwalker'. These folks are in dire straits; they need money, and they need it yesterday. Whether it be a family emergency, the taxman knocking at the door, or the evaporation of their rainy day funds, the cliffwalkers are on the edge of peril, and their need for cash supercedes all else.
The third kind are what I call 'fencesitters'. Fencesitters have a cash need, but they also want to be sure they are getting the best possible deal when discussing the sale of their note. This last kind of seller defines the guy I spoke with last week.
I learned this particular note holder had been shopping his note for more than three months. He was in no particular hurry, as cash wasn't a pressing problem, but he expected it to become one by the time summer rolled around. After building some rapport, I learned the note we were discussing was just one of three he owned.
He lamented that he even had to consider selling, as all were good income producers and he never had issues getting the payments from the borrowers. "The problem", he told me "is I have over $500,000 in notes that don't do me one damn bit of good when my need for a large sum of cash arrives." That statement is what prompted the title of this blog.
Liquidity can be a challenge. Cash is king in a lagging economy. (actually, cash is always king, but its loyal subjects pay it a bit more attention when it's not easy to come by) That's where we can help. For this particular note holder, we offered a partial that will get him the cash he needs now, and he will still have a large principal portion when the note reverts back to him a few years down the road.
So which are you? A tirekicker? Tirekickers are simply sellers in denial. If they weren't contemplating selling, why would they solicit their note at all? Do you drop by the local used car dealer just to get an idea of what your car is worth if you aren't planning to sell it anytime soon?
Or are you a cliffwalker? If so, rappel on down and give us a call. We'll do everything we can to fix your cash situation and keep you safe and secure in your financial matters.
And if you're still sitting on that fence, just know that our pledge to you is to provide a fair price, to deal with you professionally at all times, and to meet your needs specifically. You'll know when it's time to sell - we just want you to call us when you're ready.
Have a fantastic week.
Our efforts stay focused on note holders. If you are a note finder, a note
broker, or anyone other than the actual note holder, please do not contact