The best and most reliable way to buy notes direct from banks is to begin with the decision makers at your local, community and regional banks and credit unions. Buying notes from banks is essentially a B2B sale. You are in business and they are in business. They have a problem and you have a solution. You need to find the right banks and then find decision makers. Here’s what the process looks like in broad strokes- Buying Notes Directly from Banks - The Short Version
- Find local, community, and regional banks that have the types or notes you want to buy. Banks file reports each quarter that give us surprisingly deep insight into which banks are selling notes and which aren’t. We use these reports to find the real sellers and then we use a collection of other resources to find decision makers.
- Call as high up in the bank as possible and have the decision makers direct you to the people who are responsible for selling notes. This person’s title or the department’s name will vary from bank to bank depending on the size and to some degree the locale. We have a complete list of titles in the Academy. The smaller the bank and bigger the credit (credit = bank-speak for note) the higher up the chain the decision will be made.
- You need to gain an understanding of their note selling process. Some banks will have a dedicated trading desk. Some banks will have the “line” (loan officers) handle their own workouts. Some banks will have direct involvement from top officers. You don’t know how any one particular bank handles their note sales and workouts until you call, speak to a decision maker, and ask.