First, research the types of debts you want to buy. Learn the specific kinda of debt class or contact with a group looking to sell debts. Buddy with a debt buying professional and lean to measure market conditions to get an idea of pricing and value. Just about any group or person that lends money has the ability to sell their debt; if they are interested, a price will need to be negotiated based on the market, the likelihood and time of collections, the type and age of debt, how long it has been actively worked, etc.
Before buying, research third-party collection agency to see what asset classes they specialize in and what they charge on an account. They may be able to give a clearer breakdown as to what they are able to collect on a specific debt type and age. Also, try to find out the following information:
- Asset classes.
- Length of time in collections.
- Liability and errors and omissions insurance.
- Industry references.
- Contingency rates.
- Liquidation rates on recent portfolios.
I have developed a proven system that covers all areas of debt buying and gives you the utmost confidence in you investment. The debt collection market current estimated value is $10.9 billion and expected to grow exponentially over the next 5 years. This is the time to get in. Stay tuned for more information and look out for my YouTube series.