If you can build a network of ten real estate agents, each providing you with at least one note deal per year, you will have been successful in your efforts to develop a Realtor referral base for your note business.

If you want to develop a Realtor referral pipeline, you need to focus on the people who can help you by marketing yourself to Realtors who are already active in the paper game. This primary target group includes Realtors who are active as exchangors and Realtors who are already note investors and traders.

Scour your local market to identify these "note savvy" Realtors, then proceed to contact them with a vengeance. Aggressive use of the telephone can help you save time.

Your credibility is of the utmost importance

Once you have developed your contact list, send these leads a professionally designed brochure describing who you are and what you do. Include a cover letter that describes your plan of action. Tell him you will contact him by telephone at a certain time/date, invite him to lunch, advise him that you will drop by for a visit, etc.

Don't wait for the Realtor to call you. I have found that it is best to initiate the action when following up with the potential resource person. The more action you can control, the better chances you have of steering the outcome in the direction you desire. Just be sure to use good judgment and don't become too overbearing.

Your whole plan during these initial stages should be to establish rapport with your target person. Developing this rapport is the key ingredient for opening the psychological door with your prospect. Getting that door open is the critical juncture.

Rapport is your gateway to gaining credibility and confidence with your referral sources. When it comes to developing a referral pipeline, credibility and confidence are all that really matter, especially with Realtors.

Realtors have a long-term vested interest in how well you perform on each transaction. The Realtor who is willing to take on the responsibility of becoming a referral source isn't looking for the immediate benefit of increased commissions.

This agent is looking to close the transaction in a manner satisfactory to his or her client. This agent is counting on more closed transactions and satisfied clients will send along more referrals, giving the agent repeat business.

When determining whether or not to refer notes to you, your primary targets, the professional exchangers and note active Realtors, will be concerned with your credibility as a note investor or broker and whether you can complete the job in a competent and professional manner.

Know your business well

To inspire this kind of credibility, you obviously have to know your business well. Make it a point to become as knowledgeable as possible about all kinds of note deals BEFORE you attempt to approach possible referral sources.

While experience does indeed help, you should make it a point to become well versed in the intricacies of the note business to provide that necessary confidence about your "product". It is much easier to inspire your Realtor referrals with your credibility if you have a thorough working knowledge of the business beforehand!

Fortunately, there are enough good home study courses, books, tapes, live classes, conventions and monthly publications available to aid you in your education process. You can also learn a great deal about the note business by carefully reviewing the underwriting packages available from institutional note buyers.

Convince yourself that this whole process is worth the commitment you make to it. Early in the process of developing your referral network, you will need to devote time to as many face-to-face interactions as possible. These contacts are essential to the development of the trust and confidence you need to work well with Realtors.

As you become more experienced, you will gradually develop a heightened sense of proficiency in securing clients and referral sources over the telephone. Using the telephone to solicit sources is a real time saver and can lend some real efficiency to your business operations.

Your marketing campaign should center around gaining a forum for communicating your expertise to prospective referral sources. Once you have gained that forum, you can utilize your business knowledge and forge some wonderful new referral relationships to enhance your business years down the line.

About the author...