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Starting a private mortgage note broker business in 2025 can be a good opportunity, but whether it’s right for you depends on your goals, skills, and willingness to navigate a niche but potentially profitable market. Here's a breakdown of why it could be a good business and some key considerations: ✅ Why It Can Be a Good Business in 2025 1. Aging Mortgage Notes & Seller Financing Growth As interest rates remain elevated compared to past decades, more sellers (especially in private or FSBO deals) are open to seller financing. This creates more private mortgage notes in the market — and more opportunities for brokers. 2. Baby Boomers & Retirement Cash-Outs Many older note holders are looking to liquidate long-term payments into lump sums for retirement or estate planning. Brokers connect them with investors, earning a fee. 3. Low Startup Costs This is primarily a relationship and knowledge-based business — no physical inventory is needed. You can work remotely with minimal overhead. 4. Attractive Commission Potential Brokers typically earn 3%–10% of the note's purchase price — sometimes higher for partials. One solid deal can bring in $2,000–$10,000 or more. 5. Little Competition, High Barriers to Entry It's not a saturated field like real estate wholesaling or e-commerce. If you get educated and build a good network, you can become a go-to expert in a short time. ⚠ Challenges to Be Aware Of • Requires Education & Trust Building You need to understand note valuation, risk assessment, underwriting, and legal basics. You’ll also need to build trust with both sellers and investors. • Lead Generation Is Key Success depends heavily on finding note holders willing to sell. Many brokers fail because they don’t master marketing, networking, or cold outreach. • Regulatory Complexity Depending on your state, you may need licenses (like a mortgage broker license or NMLS registration), especially if you're brokering notes regularly. • Niche Market It’s profitable, but the volume of deals isn’t huge. You may need to combine it with another service (like real estate investing or consulting) to scale..

[Audio] Welcome to slide number 2 of our presentation on starting a private mortgage note broker business in 2025. This slide will discuss the necessary requirements and qualities for successfully establishing a profitable private mortgage note broker business. It is crucial to have a thorough understanding of the financial and legal aspects involved in starting a private mortgage note broker business. This requires a willingness to learn and keep up with industry developments. Additionally, the success of a private mortgage note broker business relies on consistent lead generation, which involves building a strong network and identifying potential clients and opportunities. One of the advantages of this business is its flexibility, high margins, and low start-up costs, making it a scalable and profitable model with the potential for good profits. It is also important to have an interest in real estate and finance, as it allows for involvement in the industry without directly purchasing property. In summary, a private mortgage note broker business in 2025 has the potential for success, but it requires education, trust building, lead generation, navigating regulatory complexities, and possibly combining with other services for scalability. Thank you for listening to this presentation, we hope the information provided has been valuable. Thank you..