How to Find Legitimate Note Buyers
- 1). Gather a list of note buyers from advertisements, the Yellow Pages, the Internet and word-of-mouth recommendations. Write down each of the companies' names and, if possible, the name of the agent that others have dealt with in the word-of-mouth recommendation. Put well-known companies in your area on the list. Another place to find note buyers are at property tax sales. Note buyers attend to take advantage of new property investments being sold to pay outstanding taxes.
- 2). Check out each of the companies' ratings at the Better Business Bureau and other professional organizations. Do an Internet search of each of the companies to read online reviews of people who have good and bad experiences with the company before. Remember that people with bad experiences are more likely to post about a company on websites targeted to only bad reviews, such as Ripoff Report. That doesn't mean that the company isn't legitimate. Keep all of the reviews in perspective.
- 3). Do a search on the agents to ensure they have the appropriate licenses. The Financial Industry Regulatory Authority regulates securities agents and brokerage firms. Because notes are securities, licensed agents and brokers must handle the selling and buying.
- 4). Call up the companies and ask to see their procedures and policies. Get some idea of how the company works and how long it has been doing business. Inquire about management and whether the company was recently acquired by another company. Usually, the longer the company has been in business, the more likely it is that it is legitimate. But if it was recently sold to another company, then the previous reputation tied to the initial company's name is no longer valid. New management means new policies, procedures and reputation.
- 5). Narrow your list to the top three or four companies from the investigations you've done so far. After using reviews, policies and the ratings from professional organizations, you should have an idea of which companies you feel more comfortable doing business with.
- 6). Make an appointment to sit down and talk with someone from all of the companies left on your list. Find out what options they will give you and how much they are offering for your note. Get a feel for the agent you will be dealing with. Use your gut to tell you whether you think the person is trustworthy.
- 7). Chose a company that gives you the best deal, but also makes you feel the most comfortable. If the deal is too good to be true, most likely it is. It is tempting to just take the most money, but sometimes the fair offer is the most legitimate.
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