To broker for a buyer, a couple of steps will need to be followed.
IMPORTANT
We provide a way to conduct transactions on the site, and there is no need for a transaction to go around the platform. This violates our terms & conditions, and users can be removed from accessing our site if caught trying to conduct business in this manner.
We've built features to better position and protect you, the buyer's broker, when you receive your funds at the end of the transaction.
We want to stress that we don't tolerate starting transactions with sellers to shop their assets once you've agreed upon a price.
To broker correctly, you should work directly with the buyer before entering into a transaction and know his or her buying criteria.
Things You Need To Know About Your Buyer
Buyers buying criteria
Buyer vesting information (the legal buying entity of the notes)
Buyer servicing information (where the buyer wants the loans serviced)
Buyer shipping address (location to ship the collateral after the closing)
Working With Multiple Buyers
If you are working with more than one buyer, it is best to set up separate accounts to keep their transactions siloed off from each other. You can do that by visiting your Manage Account area and finding the button labeled +Create Another Account.
Adding Your Fee to a Transaction
There is a button to add a Broker fee to a transaction. This fee can be either a percentage or a flat dollar amount. It will be deducted at the end of the transaction when funds are disbursed from the escrow payment sent by the buyer.
Conducting a Transaction as a Broker
Once a transaction has been created, you can find most of the answers to simple questions on either the Asset tab or the Files tab. This is where all of the note details will be displayed, as well as any included files.
Let the seller know of your intention to act as a broker. This will help them be fully transparent about the transaction's flow.
Once you've run due diligence with your buyer and the seller and you have agreed on a price, opt to use the closing schedule of "Escrow and Audit."
Your fee will be delivered from the escrow payment at the end of the transaction as either a percentage or a monetary amount your buyer has agreed to prior with you.
When it comes time to enter the vesting profile, please use your buyer's vesting profile. The vesting profile is the entity that is purchasing the note.
For the vesting profile, you will want to know the following:
ENTITY NAME: Name of person, company, or SDIRA account
SIGNER NAME: Name of person executing contracts
SIGNER TITLE (optional): If an entity is a company, you can optionally enter the signer's title
PHONE
EMAIL
COUNTRY
ADDRESS LINE 1: Street Address, P.O. Box
ADDRESS LINE 2: Apt, Suite, Unit, etc
CITY
STATE
ZIP CODE
After that, you will want the buyer to sign the Purchase Sale Agreement. On the step in the negotiation phase of the transaction, there is a way to send the Purchase Sale Agreement to your buyer and have them sign it.
Your buyer doesn't need a Paperstac account to sign. All they need to do is click on the link in the email, open it, and sign it. The Purchase Sale Agreement will automatically show as a backup on the Paperstac platform.
Entering into the Closing Phase
After the Purchase Sale Agreement has been signed, you're officially in the closing phase. You will enter your buyer's shipping address in the To-Do labeled: Buyer provided a shipping address for receiving collateral.
After this step, you will want to enter the buyer's Servicing information so we can initiate the Servicing Transfer Request at the end of the transaction.
Lastly, you should provide your buyer with the Buyer's Invoice. This invoice includes your fee.
You will be paid out via PayPal at the end of the transaction. You can add your PayPal details in the My Account area.
