If you are like most people, then you might be assuming that all it takes to buy bad loans is walking into the nearest bank and telling them you wish to purchase bad loans. That scenario would probably go something like:
You walk in confidently and go straight up to the bank teller, saying, “I need to see the president.”
The bank teller looks up at you and asks, “Well sir, do you have an appointment?”
“No, but I want to buy all your bad loans. Now can I talk with the president?” you reply.
You could take this approach if you’re feeling lucky, but in all honesty, you are without a doubt going to fail. It doesn’t matter how badly you want to buy more loans, or how many files of bad debt are sitting at the bank gathering dust. The simple truth of the matter is that you cannot just walk right in and expect to have these bad loans just given to you. It would be a total waste of your time.
It would also be a waste of time to approach the wrong bank. You see, to be able to purchase bad loans, you need a LOCAL bank rather than the LOCAL BRANCH of a NATIONAL bank.
Why The Right Bank Matters
Another rookie mistake that many make is to approach the wrong bank – you might know of a prominent bank that has a branch in your town, and you may think that this would be a good place to start. You would be dead wrong however – that would be the very worst bank to approach.
The reason for this is simple – local branches of national banks differ hugely to local banks. You could think of your branch of a large national bank like a fast food retail chain. Even if the local branch is run by people you know, and is situated in your neighborhood, the branch is heavily controlled by the head office. That means that all decisions and moves can only be done if the head office gives the all clear.
What does this mean for you? This means that if you are planning on buying bad debt from a local branch or a large banking chain, chances are high that you won’t have much luck, and you will have trouble forging solid relationships with decision makers too as they are nearly always at the head office.
The solution is therefore to choose local banks. These are the smaller banks that have full decision making powers, and the decision makers are people in your town who you know and trust. They might not be known across the globe, and their presence may be limited to your town, but that is what makes them the RIGHT banks to buy your bad debt from easily and simply.
No Competition…
The best part is that there are thousands of these banks all across America, in every single town. And even better than that, there is zero competition when you buy bad loans from these banks – something that becomes a huge challenge when trying to buy bad debt from large, national banks.
This tip is one of the single most important secrets of the big players in this game. The big guns know that approaching local branches of banks one by one is a waste of time, and the real money lies in approaching the smaller local banks instead.
It really is that simple.
To find out how else you can maximize your profit without wasting time when buying bad debt check out Bill Bartmann’s In Home Debt Buying Workshop.
