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Note MBA

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Business
Education
Investing
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The Note MBA Podcast aims to show you an inside story of two guys who have jumped head first into the defaulted note business. Follow us as we share our grassroots education in this expanding community of note and real estate investors. Learn all while one half travels the world in pursuit of every location independent entrepreneur’s dream and the other expands his love for business and family enough to fill the great state of Texas. We’re here to show you that you’re never alone in the note business. Join us every Wednesday to find out what we’re up to now.

Read more

The Note MBA Podcast aims to show you an inside story of two guys who have jumped head first into the defaulted note business. Follow us as we share our grassroots education in this expanding community of note and real estate investors. Learn all while one half travels the world in pursuit of every location independent entrepreneur’s dream and the other expands his love for business and family enough to fill the great state of Texas. We’re here to show you that you’re never alone in the note business. Join us every Wednesday to find out what we’re up to now.

iTunes Ratings

142 Ratings
Average Ratings
133
5
2
0
2

Great Podcast

By JackButala - May 11 2016
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Fantastic Podcast. Informative, interesting and entertaining. Five Stars.

Entertaining and Educational

By Bnhugs - Feb 20 2016
Read more
Fun way to learn about a very technical way to invest in real estate.

iTunes Ratings

142 Ratings
Average Ratings
133
5
2
0
2

Great Podcast

By JackButala - May 11 2016
Read more
Fantastic Podcast. Informative, interesting and entertaining. Five Stars.

Entertaining and Educational

By Bnhugs - Feb 20 2016
Read more
Fun way to learn about a very technical way to invest in real estate.
Cover image of Note MBA

Note MBA

Latest release on Mar 07, 2018

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The Note MBA Podcast aims to show you an inside story of two guys who have jumped head first into the defaulted note business. Follow us as we share our grassroots education in this expanding community of note and real estate investors. Learn all while one half travels the world in pursuit of every location independent entrepreneur’s dream and the other expands his love for business and family enough to fill the great state of Texas. We’re here to show you that you’re never alone in the note business. Join us every Wednesday to find out what we’re up to now.

Rank #1: 143: Your First Note Investing Deal

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Your first note investing deal can be daunting as hell. Have you gotten yourself set up with all the right vendors? Have you fully research things like foreclosure timelines in the market you're investing in? How long did they say the service transfer was going to take? Wait, what's a service transfer? All of these - and admittedly many more - are important questions to review as you start note investing. During today's show David breaks down some items currently going on with his first note investing deal.

Your First Note Investing Deal

So, David can now finally answer the question, "What was your first note deal?" It's a 3 bedroom, 2 bath in Ottawa, Kansas. Right off the bat this is an interesting deal to look at because certain parameters. Most notably is the small population of just under 13k. Most of the time I like to see over 35k, but it might've been due to familiarity with the area or it was just a steal of a deal. It'll be something I'll follow up with on a future call for sure.

Another interesting twist early in the game on this asset is that the borrower is deceased. So, the first order of business - aside from getting the service transfer done and getting docs in order - is to TLO an possible next of kin. TLO is a service you can use in your business to obtain important information about your borrowers.

They've also dealt with some assignment of mortgage issues on the file thus far.

Note Investing In Equity Deals

This past week we had another swing and a miss on potentially buying a pool of loans. This time around the reason we couldn't purchase was due to huge equity deals in the pool. Originally we thought we'd be the ones nixing the deal due to being uncomfortable with the level of equity in the pool. However, it turned out that the seller just wanted too much for the deals.

One of the major reasons people recommend that avoid deals with equity, or at least substantial equity, is because the pricing on that loan is going to be higher. Also, you tend to encounter whole exit strategies being taken out of the equation.

So, the general rule of thumb is to avoid them in the beginning to avoid higher pricing and getting yourself hamstrung into an exit strategy you didn't want to take, or it being the only one you an take.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:
  • A Major Bank Once Again Offering Zero Down Mortgages
  • Brief Note Expo Recap, More To Come
  • Note Investing In Equity Deals
  • Deficiency Judgements in Kentucky
  • Robby Has A Loan Mod Mediation, Can't Wait To Hear About It
  • And much more!
Featured on the Show: Listening Options:

Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Nov 15 2017

49mins

Play

Rank #2: 054: Dave Van Horn, Notes Are A Vehicle To Build Wealth

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When we were at Note Expo, one of the things a ton of listeners we met mentioned they'd love of of on the podcast was interviews. It might seems like we took that too close to heart this week.

Dave Van Horn was sat down to talk to us about the business, and his 30 year perspective of real estate. The chat was too good to keep to ourselves for too long, so you get back-to-back weeks of interviews.

Dave has spent 30 years in the real estate business! Now before you get any ideas about him walking into a turnkey business, wait until you hear his story.

He was raised by a single mom with six kids, and after school he got married and moved back in with his mother. At which point he couldn't get a job, and started doing construction work. He grew that into his own construction business.

Dave goes into talking about how he originally bought his rental homes on credit cards. He'd use those credit cards to buy homes, then his construction and painting business to fix them up. Right around the time he amassed 40 doors, he was injured on the job site.

He dives into the importance of what he learned about owning a business that revolves around just him. He wasn't business building a legacy of wealth.

A contrarian at heart, Dave brings some amazing perspective to insurance, taxes, wealth building, and so much more in this episode.

If you want to know more about Dave head over to PPR. You can also catch him regularly posting on the Bigger Pockets blog. Also, be sure to grab Dave's free ebook.

We hope you enjoyed this interview with Dave Van Horn. If you have questions you want to throw at him the next time we sit down with him, or want to chime in, have any questions for us, or comments send them our way at ask@notemba.com.

Listen to this week’s show and learn:
  • How Note Investing Helps You Build Wealth
  • Where To Look Within The Economy For The Strongest Indicators For Where Real Estate Is Headed
  • What 30 Years Of Real Estate Has Taught Dave About Marketing
  • The Many Buckets You Need To Protect Your Family
  • How To Build A Fortress Around Your Business
 Listening Options:

Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Dec 16 2015

42mins

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Rank #3: 058: What It Takes To Win The Week

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It has been another busy week so we are coming at you with a somewhat shorter show than normal. We start off going over the movie The Big Short.

I don’t know what you’re waiting for if you’re in the note business and you haven’t taken the couple hours to get out of the house to see it. If you don’t get Chase’s Jenga reference about the collapse of the mortgage industry then you really need to get out and see it.

We talk about having collateral files sent to you. Robby just bought a handful of new notes and had the files shipped to him to review instead of to his document storage company Richmond Monroe Group.

Robby has seen more than his fair share of files and these ones are consolidated in a market that he is directly sending to his attorneys to begin foreclosing on the properties.

Robby touches on doing some of your own borrower out reach versus having an outside company reach out to the borrowers for you. He’s finding the value of getting on the ground and knocking on the doors of the borrowers versus passively working through a servicer or client contact company.

We’re still hitting on our goals again this week and talking about some reading we’re getting the year started off with. Big win over at the Thompson household where Chase’s wife Andrea picked up Tribes to start giving it a read.

As Robby has been reading, Chase has been working on writing every morning using a website that track his writing called 750 Words. We are still waiting to pick each other’s goal that they will be penalized upon for not complete.

Chase is also using an app recommended by Kevin Rose, a friend of Tim Ferriss, called Way of Life. A great app for helping you to create the habits needed to obtain the goals you set earlier this year.

We've also just launched our Note MBA Facebook page. We'll be adding some exclusive content over there soon. Keep us a Like! Come on you know you want to.

We get into goals again and we want everyone to continue to keep working and refining their goals with every opportunity you can. Robby sends you off with a bit of motivation titled “What it Take to Win the Week.”

If you have any questions for us, or comments send them our way at ask@notemba.com.

Listen to this week’s show and learn:
  • What To Look For In A Collateral File
  • Is The Big Short Worth The Time
  • What It's Going To Take To Win Every Week In 2016
  • Where Chase Is Tracking His Habits
  • Free Goals Download Worksheet
 Listening Options:

Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Jan 13 2016

31mins

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Rank #4: 062: Real Estate Marketing Mistakes

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We jump in talking about some books that are currently on the reading list; The Miracle Morning by Hal Elrod got Robby to toss on some gym shoes and go for a run. Chase caught an early morning Periscope session by Jarrod Glandt this morning where he was speaking on how he starts his day with speed and urgency.

Chase brings up an awesome story from one of his favorite people, Derek Sivers. The story is about the importance of relaxing to get the same results.

Into deal talk, Robby has one of his foreclosure sales get canceled due to the borrower filing a Chapter 13 Bankruptcy the morning of the sale. He talks about the additional costs, hearings, the process of handling the deal.

Moving to South Carolina Robby takes us through some back of the napkin math on a JV asset and how he is going to pick the bid amount for the foreclosure sale. Looking at the potential extended hold time by taking the property back as an REO and the additional capital needed to increase the sales price of the property.

Chase did a great webinar on Monday covering the main things he sees many real estate marketing mistakes being made.  FYI, he did it for free and is even uploading it to our Facebook page so that if you didn't catch it the first time you will have another chance. Take the hour to invest in watching this as soon as you get a chance.

Robby is about to put a tenant into one of his 'free' properties that he picked up a few months ago. He's got a bit over $7,000 into the free deal as it stands, so we are in this one for the long haul to actually see any profit. Additionally, he hits on the importance of an upcoming ruling on the statute of limitations ruling as there have been two rulings in the state of Florida as it pertains to SOL.

We wrap up with Robby reviewing the interaction he has with the servicing company of a 2nd position note that he has been working a short sale on for a friend.  Listen in to hear how limited this servicer was in regard to even a simple task like relaying information to the investor that owns the mortgage.

If you have any questions for us or comments send them our way at ask@notemba.com.

Listen to this week’s show and learn:
  • The Book That Got Robby To Run For The First Time In Over A Year
  • A Story From One Of Chase's Favorite People In The World
  • The Math On Potentially Extending The Timeline Of A Deal For More Profit
  • Where To Get Free Real Estate Marketing Advice
  • Why Many Of The Large Banks And Servicers Are Losing
 Listening Options:

Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Feb 10 2016

44mins

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Rank #5: 003: Note Inception and Post Foreclosure Eviction

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Follow along as we briefly touch on three simultaneous timelines occurring on a Florida note Robby is working: 1) Evicting a former tenant via an unlawful detainer due to adverse possession 2) Purchasing title from an HOA post foreclosure 3) Dealing with a 2nd lien filed 1st in time. When you’re having trouble making contact with an occupant, try using a vacancy sticker to get the occupant to reach out to you.  This is a technique Robby implemented by having another member of his Tribe post on the property for him.  Realize that when you’re new to the note business all these “issues” are part of the 10,000 hours you need to put in to become an expert at something, and that when these “issues” cost you money you need to chalk it up as “Life Tuition.”  Changing how you evaluate note purchases as you see more scenarios and realizing there is an abundance of inventory in the marketplace and to be as conservative as you need to be.

We slightly digress around 18:45 regarding Fiverr.com, but keep listening; there is a hidden message about valuing your time, not to mention that Fiverr.com is a great resource for your business.  Check out www.NoteHustle.com if you need help with your website, email marketing, blogging, etc.  Chase is a master at online marketing and is offering up his specialized talent to note investors that take action in their business.  Lastly, Robby has a potential new JV investor, but he needs to set realistic expectations as this investor has been doing his own research and knows just enough about note investing to get in trouble.  More on how this potential JV investor turns into an actual investor in episode 5. If you have any questions, comments, or a rich uncle, be sure to send us a message at: ask@notemba.com

-Post Foreclosure Eviction, It is going to happen sooner or later

            -A case study for you to check out

-Don’t do what the shady attorney suggested

-Using a Vacancy Sticker to make contact

-Using a case study to align expectations and provide a proof of concept

-Changing how you evaluate a note purchase upfront, the algorithm isn’t static

-Putting in your 10,000 hours and the investment in “Life Tuition”

-Using www.Fiverr.com as a resource for your business

-Placing a value on your time, and the time of others

-Introduction to the Note Hustle webinar, marketing within the note business

Dec 24 2014

34mins

Play

Rank #6: 130: Reviewing Your First Note Investing Deals

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Reviewing your first note investing deals can be a daunting task. You finally get a tape in, you load up Due Diligence Pro, and you get down to business. Before you know it, you've isolated a few potential deals, then what?

If you're like some of the folks that send us emails, or our very own David Glinkski, you might have to overcome that moment of fear. Is my team in this market set up? Do I believe the BPO? Can I trust my ROI calculator? Let talk about it in this week's show.

Road Trip Robby

After spending some extensive time out of the country, traveling, working on a movie out in California and many other things. Robby is finally ready to get back to doing his thing in the real estate space.

First off, similar to Fannie Mae selling off a large tranche of deals, we are looking to do the same. These are NPLs that no longer fit into the portfolio we're trying to maintain. If Ohio is a market you've been looking at investing in, or if you're already investing there drop us a line at ask@notemba.com. We'll be looking to offload these deals soon.

As part of this offloading Robby is planning another road trip. We'll be working to bring you some videos and content from Robby out on the road. One of the things that's bringing all this on is a transition towards some higher value notes and development deals.

Fear not is you're still in that lower brand price bracket! Between Chase and David, there will plenty of deal talk in that price range.

Reviewing Your First Note Investing Deals

David spent some time these past few weeks to review a tape. This was his first attempt at doing this on his own. We wanted to be as hands off as possible, however, when he had a question we took the time to answer it.

One of the issues he had to get straight first was his own strike price. The strike price on an asset usually refers to the lowest price a seller is willing to take as a bid. Well, I advised David to come up with his own strike price. What is the lowest ROI he's willing to take a swing at?

From there he was concerned about whether he'd be able to manage an asset outside his comfort zone. Robby mentions a crucial beginner technique of selecting your top 5 markets you want to invest in. This will help you narrow down where to invest, build your team, etc.

David didn't make any bids this go around, but I'm confident he'll pull the trigger soon.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:
  • Robby Is Headed Out For A Road Trip Through Ohio
  • Why David Didn't Pull The Trigger On His First Note Deal
  • How We're Planning to Improve Due Diligence Pro
  • What Are Your Top 5 Markets
  • The Numbers On Our First CFD Deal
  • And much more!
Featured on the Show: Listening Options:

Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Jun 28 2017

40mins

Play

Rank #7: 055: Daren Blomquist, VP of RealtyTrac

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This week we are coming at you with another great interview from a well-respected industry expert, Daren Blomquist is a Vice President at RealtyTrac. He’s been featured outlets like the New York Times, the Wall Street Journal, and NBC.

RealtyTrac is a leading provider of comprehensive US housing and property data.

We first met Daren out at Note Expo in Dallas and wanted to get him in front of our audience to provide some of the same high level content we were exposed to during his time on stage.

Daren starts us off with a look at issues from the impact of the Fed rate increases, to current level of foreclosure starts, and where the market has come from over the past three years.

If we stop to take a look at some market trends around the country we’re seeing more and more markets that are reaching new all time highs; though the nationwide average is still about 9% lower than peak of the market.

Moving into housing affordability Daren looks at some current debt to income ratios when qualifying for a loan compared to the ratios of the legacy years; but keep in mind when you’re looking at these ratios that CFPB currently caps the ratio at 43%.

We’re also seeing new loans allowing income from other occupants of the home, but not the primary borrower being factored into the ability to qualify for mortgages. Basically, lending is starting to loosen up again; so odds are we’ll see more inventory down the line.

Daren is giving access to our listeners to their award winning Housing News Report for free. This is something that every listener needs to action to e-mail RealtyTrac for this free $99 subscription. Send an e-mail out to marketing@realtytrac.com

In addition to access to the Housing News Report Daren is extending to the listeners of the Note MBA podcast access to RealtyTrac for $199 for a full year. This is normally $49 a month; we’re not getting a kickback for it, so if you don’t sign up you need to ask yourself how committed you are to using the best tools available in the marketplace. Send an e-mail to marketing@realtytrac.com and say you heard Daren on the Note MBA podcast offer the annual subscription for $199.

There is a wealth of other topics covered during this week’s interview that you need to listen in on hear about. Thanks again for making us a part of your week.

If you have questions you want to throw at him the next time we sit down with him, or want to chime in, have any questions for us, or comments send them our way at ask@notemba.com.

Listen to this week’s show and learn:
  • What Impact The FED Changing The Interest Rates Has On Notes
  • Actually Housing Data From One Of The Leaders In The Industry
  • How Housing Affordability And Down-Payment Savings Affect Our Business
  • Forecasting On Future Loan Programs To Come
  • How To Get Your Hands On Valuable Industry News
 Listening Options:

Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Dec 23 2015

45mins

Play

Rank #8: 064: Marketing Sessions & Meditations

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The kick off of content hits on the finalization of our seller financed deal in Marshall, TX. Our biggest piece of advice is to make sure if you’re going to go down this path to seek the assistance of an attorney.

We did not have experience in this arena prior to this property so the money invested in seeking help from an attorney turned out to be invaluable. Keep yourself protected from Dodd-Frank or any local regulations you may not be aware exist.

In the continuation of our reading segments, Robby touches on Mediations by Marcus Aurelius. This book has come as a challenging read, but we have learned that this is a book that seems to show up consistently on the reading lists of many of the successful individual we follow on a regular basis.

This book wasn’t created with the intention of being released as a book, especially one that still be consumed by individuals considering it was written in 167 A.C.E.

Moving onto some note content that is marketing based we wanted to talk briefly about the recent Realty Trac Newsletter that highlighted the work Chase and Robby have been doing within the note industry from the Mom and Pop perspective.

In case you didn't get the newsletter, check out the episode with Daren Blomquist from RealtyTrac for instructions to get on their list. This is all designed to highlight Chase's week in and week out marketing efforts. Everything that goes into bringing the Note MBA Podcast to the attention of as many people as we can that have an interest in learning about the note investing industry.

For those of you that truly want to get into the note business as a full-time endeavor, we have some great stuff coming for you. Building off of the marketing that Chase has implemented to bring in over seven figures we want to expose you to the tips, techniques, and tested processes of systemizing your marketing.

Chase has built out a full system called Marketing Sessions to help you develop your marketing game to truly expose you to those who are looking for investors to help support their passive investing. Marketing Sessions is going to be jam packed with content that is going to take your note business to the next level.

If you want to improve your marketing then these Marketing Sessions are what you need.

If you have any questions for us or comments send them our way at ask@notemba.com.

Listen to this week’s show and learn:
  • Major Takeaways From First Seller Finance Deal
  • The Former Emperor of Rome & Your Business
  • How To Handle Negative People Around Your Life
  • Why Book Talk Matter To Your Business
  • The Launch of The Marketing Sessions Community
 Listening Options:

Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Feb 24 2016

27mins

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Rank #9: 056: Raise Your Standards

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Welcome to our last episode of 2015. It’s been a great ride, and as we’ve said before “we couldn’t have done it without you.” Thanks for listening!

Recapping three straight weeks in a row of interviews we want you to go take action on the various offers/giveaways all three of our most recent guests have kindly extended out to our tribe of Note MBA listeners.

Eddie SpeedDave Van Horn, and Daren Blomquist offered up some great stuff and we really hope you’re taking action on these offers.

Jumping into some content for this week Chase has Robby review two unique items Robby has been working on recently. We start with a recent deficiency judgment in Florida and the value of seeking them within your note business.

It’s not just about the judgment, its making great content for our podcast as well. Robby also visits the recent court case where he was successful seeking the Assignment of Rents under a 1-4 condominium rider on a property in Orlando.

We got a heads up on the movie “The Big Short.” It was already on our radar to see, but we wanted to throw it out to our audience to get a chance to check it out.

A listener question came in regarding the number of bids to submit and how to avoid putting in bids that may be too low. We hit on the relationship aspect of this business and how important communication is to get the most value out of all of these relationships.

Our big topic for this week is getting everyone started on reviewing 2015 to see how they did in regard to the goals you set at the beginning of the year. It’s the end of the year and you owe it to yourself, your family, and your friends to invest some time in effective evaluation of your results.

Lets take this reflective time and apply towards some thoughtful planning for 2016. Please do us a favor as a listener and get at least one goal down on paper. That is the bare minimum, one goal, that is all we’re asking of you, but realistically you need to be asking yourself if you’re okay with only setting one goal for yourself.

We are going to dive into goals that much more next week and even share some of our personal and professional goals for 2016. Click here to download the free, simple goals PDF. Thanks for being there with us throughout 2015 and we look forward to seeing what 2016 has planned for us.

If you have any questions for us, or comments send them our way at ask@notemba.com.

Listen to this week’s show and learn:
  • Why We Put Time And Resources Into Deficiency Judgements
  • You Need To Get With The Program For Free Stuff From Our Interviews
  • How Robby Plans To Use A Blockbuster Movie To Generate Capital
  • We Soap Box A Bit This Week About Goals
  • Free Goals Download Worksheet
 Listening Options:

Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Dec 30 2015

34mins

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Rank #10: 004: Marc Gold of American Home Recovery Fund, NoteWerx, and The Shadow Inventory

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Chase interviews Marc Gold of AHRF (American Home Recovery Fund), NoteWerx and The Shadow Inventory Roadshow during Noteworthy 2014 in Las Vegas, NV.

The reason why the note industry needs as much transparency as you can get: “99.9% of the population has no idea that this trillion dollar business exists” Marc Gold.  Ahead for 2015 it is estimated that between 5-8 million loans are still on bank ledgers that will be unloaded, the prices are ticking up making discounts lower for investors across the board.  Marc recommends when you enter into the note business, come with an open mind, and get an education, don’t try to do this on your own, get some help as you enter the business.  Find Marc at: www.note.guruIf you have any questions, comments, or a rich uncle, be sure to send us a message at: ask@notemba.com

-AHRF: American Home Recovery Fund, www.ahrfund.com

-NoteWerx, www.notewerx.com

-Shadow Inventory Roadshow, www.shadowinventoryroadshow.com

Dec 31 2014

42mins

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Rank #11: 095: Replacing a Six Figure Income with Real Estate Investing

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Many of our listeners dream of leaving their corporate job, and making the transition into full-time real estate investor. Today we talk with a guy about replacing a six figure income with real estate investing.

Wayne Snell used to work over 80 hours a week as the VP of Marketing for a large cloud based software company called Trintech. He has been investing for over 10 years with a focus on Non-performing notes for the last 5 years and was able to replace his 6 figure annual income in that timeframe through real estate investing.

He now runs and is the President for his own Note Business called Platinum Ventures. Platinum Ventures is a private real estate investment company focused on the purchase of single-family residences and real estate notes to produce above-average, safe and consistent returns for their partners.

Chase starts out the interview by asking Wayne to recollect his early years in real estate investing and how he was able to juggle his 80+ hour a week job and his growing business with Real Estate Investing. Part of this conversation is about how to stay motivated when you’re still working a full time job. A big part of this is sacrificing your personal time outside of work whether it be going out drinking while you’re on a work trip or skipping a night out with friends back at home so you can focus on building your dream (and leaving the 40 to 80 hour a week job you hate!).

Fast forward to the present and Wayne is now focused on adding a 100 notes to their portfolio this year! They go on to discuss:

  • What a contract for deed (a.k.a. a Land Contract) is and how Wayne attacks these
  • How to deal with higher risk borrowers
  • When to use your attorney in specific situations
  • How to drive up your yields on contract for deeds - Wayne targets a minimum of a 24% return total and they typically see a return above 30%
  • Creating win-win scenarios for your borrowers when convincing them to go the Land Contract route
  • How Wayne & his business partner turned a work road trip (11 states in about a week) into an incredible marketing opportunity for their business
  • How Wayne & his team have been so successful at raising capital
  • Where you should be networking to maximize exposure for your business and to acquire new investors

Be sure to listen in closely as Wayne offers a multitude of advice that can be applied throughout any real estate business. Also, make sure to congratulate Chase as him and his wife had a healthy baby boy this past week!

If you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Thanks for listening and we will see you all next week!

Listen & Watch this Week’s Show to Learn:

  • How to juggle your current full time job and still have time to focus on building a real estate business.
  • How to stay motivated on your end goals when you feel like your full time job is sucking your life dry.
  • How to do your due diligence so your projections are within a 2 to 3% margin of error within your projected ROI or end game.
  • Utilizing VA’s properly so you can focus on growing your business.
  • How Wayne attacks contract for deeds
  • What a Land Contract (contract for deed) is and how it works
  • And much more!

Featured on the Show:

  • Wayne Snell - wayne@platinumventures.net
  • Platinum Ventures - REI company focused on above average, safe & consistent returns for their partners.
  • Land Contracts and turning them into 30% + ROI deals!
  • Note Camp - Wayne will be presenting this year so don’t miss out.
Listening Options:

Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Sep 28 2016

38mins

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Rank #12: 124: Investing in 2nd Liens, Case Studies and Turtle Pools

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Investing in 2nd liens has been the topic all month around here. And you know what? We're not about to stop now! On today's show we've got two phenomenal investor talking all about investing in 2nd liens. They drop some deal examples and case studies. We also cover some of the difference between the due diligence process on 1sts and 2nds.

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We kick off today's show talking about some wall art in Gabe Kass' office. It's a wonderful piece with four Chinese characters paint laterally. Roughly translated that characters mean, "If you work hard you will reap great rewards." Not sure there has ever been a more fitting quote to start a show off with.

Investing in 2nd Liens

Kicking us off Kimberly Bank Fawcett talks about a 2nd she recently acquired in Miami. This particular deal has a performing first, which is her preferred style of investing when it comes to 2nds.

We previously discussed with Fuquan Bilal the 4 buckets of investing when it comes to 2nds. The three main buckets we talk about in this show are: performing first with equity, the non-performing 1st with equity, and the non-peforming with no equity.

She gives us a breakdown on the numbers, and why she wasn't too worried about a possible bankruptcy. The fear of bankruptcy, by the way, is one of the potential major downsides to investing in 2nd liens. Gabe gives a brief rundown all about it later in the show.

The Difference In Due Diligence

Later on in the show we spend a decent amount of time going over many of the due diligence nuances on 2nds. In a nutshell, the biggest difference in due diligence between 1sts and 2nds is what you're researching.

We covered it in many different forms on the show already, but for investing in 1st liens, your major due diligence piece is the property. That isn't the case with 2nds. When you're investing in 2nd liens you want to start by researching the borrower. One of the main tools both Kimberly and Gage talk about using is TLO.

According to Kimberly, using just someone's name and where they live you can do some gnarly research. With that information, which admittedly isn't much, you can pull their social security number, date of birth, every email address they've ever used, the age of all of their cousins, the last time they ate a gyro from that weird Greek place at the mall.

You get the picture.

From there we move to the next really important piece of due diligence, pulling credit. The interesting thing about this is that you really have to rely on your sources/seller of the deal to get this vital piece of data.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:

  • The Major Due Diligence Differences Between 1sts and 2nds
  • Why Many Investors Are Sticking With 2nds
  • Why Two Different 2nds Investors Recommend You Start Your Business Differently
  • Some Amazing Resources And Vendors To Use When Investing In 2nd Liens
  • What To Do When Your Investment Gets Picked Up And Destroyed In A Tornado
  • And much more!

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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

May 17 2017

1hr 2mins

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Rank #13: 121: Paper Source & Due Diligence Pro

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Show notes coming soon!

Apr 29 2017

58mins

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Rank #14: 093: Loss Mitigation & Capital Raising On The Way To 198 Notes

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This week we dive deep into loss mitigation, capital raising, relationship building and more.

On this week’s episode, while Robby is off on vacation in Spain, Chase has a great interview with an experienced note investor named Jay Tenenbaum who is also the Managing Director at Prosperity Investment Fund. Jay will actually be presenting at the IMN conference coming up on September 22nd and 23rd as well. He will be featured in a panel entitled “Getting a non-performer to re-perform in this low rate environment; work out modification & rehabilitation strategies.”

Jay used to be a practicing debt collection attorney for 20 years in Southern California. After closing the law practice, he started investing in judgment liens with a focus on real property. He  then attended Scott Carson’s Note Buying for Dummies Workshop in August of 2013 which opened his eyes to this different debt instrument which ended up being an easy transition for him based on his past experience. His company has now bought 198 assets with an acquisition cost of over 3 million in just under 3 years.

Some of the topics that they discuss in the note space are:

  • Capital raising strategies
  • Loss Mitigation
  • Relationship building and partnerships when it comes to growing your team
  • Seller relationships & some great insight on building those
  • Seller Financing strategies

Jay details his experience as a debt collection attorney and how he came into the note business without any prior investors he could easily reach out to. He reflects back on how he was able to raise capital other than his own money.

When it comes to Loss Mitigation, Jay goes over his initial question that he asks the borrower - “How can I help you?” He goes over his strategies on how he is able to achieve a less than 10% default on his loan modifications and the key is to listen. He also discusses a 3rd party credit counselor called Polaris and an interesting story concerning one of his first deals that he worked out with a borrower.

Another great topic they cover are the partnerships and ways that Jay was able to grow his personal note business which include everything from family to close friends to outsourced agencies. Growing up around service based businesses, Jay was able to leverage that experience to build a solid foundation for this service based business and his vendor relationships.

One of the final concepts they cover is the ability to build lasting relationships with sellers. Jay has some great insight here as he has only worked with 12 sellers for the 198 notes they have purchased.

Listen in to the rest of the episode to learn about seller financing strategies with notes and how to build several revenue streams within the same asset!

That’s all for this week everyone and thanks for listening.

If you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:

  • How Jay Tenenbaum came into the Note Business & was able to purchase almost 200 notes with an acquisition cost of over 3 million in a little under 3 years
  • Capital Raising Strategies to employ at your note business
  • How an easy conversation can lead to unbelievable profits
  • The best way to build relationships with your sellers, vendors, & borrowers
  • Seller financing strategies for notes
  • And much more!

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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Sep 14 2016

50mins

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Rank #15: 100: The First Principles of Note Investing & Life

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This week we break down the first principles of note investing, life, and business. All viewed through the scope of our first 100 episode of the Note MBA podcast. We realized there have been some interesting trends and motifs that have emerged throughout the first 100 episodes.

So, today we discuss those principles, as well as a few of our favorite moments.

We kick off this week's Best of Note MBA-esque show with Episode 7: We're Not Gurus. This was a seminal episode for us, where we put a line in the sand about what the show would and wouldn't be. During this show we also talked about how we breakdown a note tape.

Episode 8: Joel Markovitz, VP of Business Development, is the next show up for discussion. An interview with a servicer can usually be a daunting task. However, time with Joel Markovitz is always pleasant. This was also the episode we announced we were on the home page of iTunes. This is something that we could not have accomplished without our growing community.

After this, Robby took some time to talk about NoteLinQ. We launched the service on the show during Episode 18: NoteLinQIt's no longer available, however, it pointed out some of the systemic issues within the industry. The fact that it is no longer available highlights a few key things, a lack of operational execution and lack of capital. Robby parlayed the experience into a further understand of choosing the right things to go after in business and life.

We continue review some of our favorite shows and guests that have graciously appeared on the show. After musing for a bit, we land on our collective opinions on what the first 100 episodes of the show have been. It wouldn't be prudent to view any one episode in isolation. The experience and knowledge we look to impart to ourselves every time we hit record is something we think will bring value to others.

At the foundation, the core, of progress you have first principles. Fundamental truths that when observed and practiced almost guarantee a harvest. For us, for these first 100 episodes, those first principles have been consistency, omnipresence, and goals.

Whether you've been here since episode 1 or 100, thank you for being apart of the Note MBA community. Here's to the next 100.

Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen to this Week’s Show to Learn:

  • About that time Robby was covered in bandages
  • What each guy feels is the overarching message of the first 100 shows
  • Which show title has Robby most concerned
  • How did the voting go on the survey to sell or keep the condo in Vegas
  • And much more!
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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Nov 02 2016

39mins

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Rank #16: 094: Flipping Homes to Raising 11 Million Dollars in Note Investing

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If you've wondered about making the transition from flipping homes into note investing, today's episode is for you!

Since Robby is unable to find a decent internet connection while on vacation in Spain, Chase is joined this week by Bob Malecki.

Bob is a professional investor who has been active since 2006 and specializes in the repositioning of stressed mortgage debt for both equity and cashflow. He has currently raised over 11 million dollars through his company, Resolution Capital Management, to build up a substantial portfolio with assets in locations including, but not limited to, North Carolina, Tennessee, Oklahoma, Texas & the Seattle area to name a few.

Bob went the traditional route of investing through buying rentals & flipping homes before he discovered note investing through a combination of Eddie Speed and his real estate agent who was also an investor. Bob ended up buying his first note (out of his self-directed IRA) on a mobile home where he realized a 42% annualized return on his investment and hit the ground running from there.

He explains that when speaking with new investors or others about what he does, he words it to the lay persons that he “renovates” or repositions distressed loans to help the borrowers start repaying on their debt to create cashflow for their investors. He also enlightens & reminds listeners & investors in this business (and all real estate investing really) that you should “Live where you want to live, but invest where the numbers make sense.”

Some of the key topics they cover throughout the rest of the interview are:

  • Investing out of your self-directed IRA
  • Sourcing Investors & how to earn their trust
  • Where to get a better understanding of the Note industry
  • Creating & setting up a fund for your real estate business
  • Marketing Do’s & Don’ts
  • The pitfalls of the industry for new investors

Chase & Bob cover a wealth of knowledge throughout on these topics & many more so be sure to take notes (no pun intended) and as always…

If you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Thanks for listening and we will see you all next week!

Listen & Watch this Week’s Show to Learn:

  • Bob’s story on discovering & building a Non Performing Note Business
  • What functions, events & areas you can go to learn more about the Note Industry
  • How to attract investors to want to work with you
  • How to work with out of state Investors
  • The unbelievable power of networking
  • The difference between Reg D, B & C funds and which one Bob setup for his business
  • And much more!

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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Sep 21 2016

42mins

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Rank #17: 136: Building An ROI Calculator

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Building an ROI calculator is something every note investor should do. Last week Robby gave David some tough love for not having one done yet - among many other things. So, this week we discuss the process David is going through to build one, and some of the challenges he's encountering.

HUD Home Flip

David recently finished his flip. He put it up on the market just a few days ago in fact. This was one of the items on his list that Robby was asking him about during last week's tough love session. Here are some shots of the flip, in case you wanted to check it out.

I completely forgot to commend David during the show, so I'll take some time and do it here. He didn't know Robby was going to bring up all the items he did last week. I'm sure he was as surprised as I was. However, this didn't lead David to shy away and lick his wounds. He dug in, and went to work. Not only did he get everything done for the flip, he was also up until 3 am working on his ROI calculator.

As David continues to grow his real estate business, specifically into notes, I'm stoked that he's coachable and willing to take action!

Building An ROI Calculator

Robby asked David last week, "You've mentioned needing an ROI calculator before, and that you were working on one. Are you building an ROI calculator?" David said no, he hadn't built one yet. For his part, he didn't give many excuses about it, and said he would get on it. So, over the past few days he's been building an ROI calculator.

David sent his new minted ROI calculator over to me. And, if I'm being honest, it's rough. However, I expected that. Mine was rough for a super long time. The design David has put together is rather interesting. It makes his calculator resemble a tape, which I find interesting.

We cover some of the items you'll want include when building an ROI calculator. The first item you'll need is the UPB, the unpaid principle balance. If you're investing in non performing notes, this should be a given. From there, you'll want to include some valuation metric. Whether this is exclusively valuations from places like Trulia and Zillow, or straight from a realtor, you'll need to have a field for value.

After that, you'll need a field for your bid price. Now, that might now be what you actually get the note for, but you'll want to have that so you can get as accurate a picture you can of the ROI expectations. We discuss more of the items you'll need when building an ROI calculator in the show.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:
  • David Has Finally Starting Building An ROI Calculator
  • We've Got A HUD Home Flip On The Market
  • What You Should Include In Your ROI Calculator
  • And much more!
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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Aug 16 2017

31mins

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Rank #18: 102: 0 to 1500 deals in 3 years with Paul Birkett

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Since Robby had to take a last minute trip up to Chicago to take a look at some of their assets, Chase took the time to interview, Paul Birkett, who has a 20 year corporate career background with the likes of Proctor & Gamble and Pepsi Co and has been able to acquire 1,500 assets in his first 3 years!

To start out the conversation, Chase asks Paul to describe how he got started and some of the pitfalls he experienced in the beginning stages of his note business. He begins by repeating one of our favorite phrases on the show, “well, you don’t know what you don’t know.”

He started out in the Note business while doing a short sale with PNC Bank when the lady who was managing the short sale called him and told him we can’t sell you the note because we sold the note. Paul then met the guy who bought the note and discovered the wonderful world of notes. He quickly sold the roughly 15 rentals had so he could putting capital in to the note space.

He also describes how they grew a little too quickly for their own good after buying a large pool of notes in the Chicago area. Due to the circumstances though, they quickly learned necessary systems and people they needed to put in place so that everything that came in the door had a clear plan & process.

The gentlemen then segue into what Paul believes are the most important aspects of the business to focus on and how to run your day to day operations. He breaks it down by into two things:

  1. Your to do list which is comprised of his 1, his 3 and his 5
  • 1 thing he’s definitely going to do today
  • 3 things he really wants to get done, but may not get fully complete
  • 5 things that he wants to get done and if he can, he will. (i.e. never go to sleep at night with un-actioned email)
  1. Having systems for the day to day so you can easily scale and don’t get caught in a rat’s nest once you have 15, 20 to 25+ loans going on at once.

They go on to discuss numerous topics such as building a solid foundation to prep for scaling, how to embrace being “in the weeds,” & much more so be sure to listen to the rest of the episode!

Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:

  • Issues with growing too fast
  • What type of growing pains you can expect if you’re just starting out in the Note business
  • Why Paul sold all of his rental properties to focus fully on Notes.
  • How to speak with investors to raise capital
  • Why you don’t want to put investors work immediately rather than let it sit briefly
  • What Paul believes are the most important things to be focusing on
  • What holds back the majority of investors from getting started and also scaling up
  • And much more!

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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Nov 16 2016

53mins

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Rank #19: 066: Managing Investor Expectations

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Alright, we're going to try something a little different with this week's show note. We decided to try a bit of outsourcing for a complete transcript of the show notes.

We're well aware they're rough in some areas, and we will try to fix that going forward. However, we'd love some feedback about whether these full transcript style show notes are better for you.

So, leave a comment down below if you want to weigh in on the full transcript versus regular show notes.

Without further ado:

Chase: Hey everybody! Welcome to the NoteMBA podcast, your home for note investing on iTunes. I'm Chase Thompson. This is episode 66 and I'm joined as always, by Robert Woods  - except for when we do an interview and it's only one of us and not the other, but that isn't today. We do have some sweet interviews lined up for you guys over the next couple of weeks. We are getting pretty pumped about that. We are getting those recorded, underway and edited for you guys. We are very excited about that. Mr. Woods, how are you sir?

Robby: I'm fantastic, back from vacation also another reason why we will start having more and more interviews on the show, so I can take more and more vacation.

Chase: Look man! You work hard. You earned it. I get it. It's all good. I can dig it.

Robby: Yeah, I like the interviews. I think it breaks up them and it brings a lot of great ... It also allows you to vacation. I think it's good. It keeps you fresh.

Chase: It does. It does.

Robby: I'm all about that.

Chase: Speaking of vacation, we've discussed before how taking vacation, affects aspects of lifestyle design and business design. It's setting up a system so things don't fall apart when you leave for a week or longer. Or also being able to manage stuff while you are on vacation if you have an extended one, it's being able to write off different aspects of vacation because of the things that we do and the way that you manage those kinds of things. Number one, how was your time away? Number two, did you have some other really great nuggets or some really good pieces to share with us regarding this most recent trip?

Robby: The time away was amazing. I was out there with a great group of friends for my buddy Tony's bachelor party and we just had an absolute blast. Beautiful island, great beaches, we had great group meals, good entertainment. It was the Heineken Regatta. It was just a great trip overall however to what you just said about the ability to facilitate working while travelling, I'm a big proponent of telling people how much I love T-Mobile because they've got a great international plan and that's what I've always kind of used as a crutch when I'm traveling. I got to say St. Martin had no service the entire time.

Chase: That's why we had to email back and forth I'm assuming.

Robby: That is 100% correct. I got Wi-Fi, so I could send out a couple texts. I did like a 15-minute mental assessment after I realized it's going to have no service and proactively sent out some emails to probably 7 people who had deals they were working on for me or a couple of attorney issues or some things that are going on. Then a broker on a property that we have listed right now in Georgia saying, "Hey, this is the deal. I will get back with you on Monday." It's funny it allowed me at some level after I got those emails out I just shut down. I didn't really do much work for the rest of the week and really just enjoyed it other than responding occasionally to some emails whenever I got on Wi-Fi which usually was I would say less than a half an hour a day.

Chase: You were rocking the definitive no probably four-hour week there for a little while?

Robby: Yeah. A hundred percent and no anxiety at all this time. I think no anxiety came from realizing I didn't have it and just being like, okay, what do I need to do? Hey, send some proactive emails. I don't really need to worry about ... I basically went through my top 5, 6 issues and said, "If anything happens with these they need to be dealt with. Anything else, it might be expensive. It might be annoying, but I can manage it if that makes sense."

Chase: Oh, yeah, totally. He actually talks about that, Tim Ferriss, that is, in his book. The seminal book on taking vacation while still working, I think. Anyway, he talks a lot about that. About how with his assistants and other key people, we've actually talked about it when you mentioned certain things with regards to attorneys, but basically saying, look, if it's something that's going to cost $100 or less, $200 or less, $50 or less , like wherever you are budget wise, just do it. I don't want to hear about it. I actually had a boss, a mentor for a long time that was that way with me regarding different things that we were doing from marketing initiatives and other things like that.

As far as he was concerned, as long as it was doing what needed to get done to push a project forward or push the day forward or whatever the case is, he didn't want to hear about it. That's kind of similar to that, I would assume.

Robby: Oh, yeah. Completely. It just puts a few things on alert and you know if it blows up it will be mitigated because you've actually done a few things in advance, I think.

Chase: For sure. For sure. Systematizing and things like that was the name of the game for this one. Any similar to when you were down in ... It wasn't Panama. It was Costa Rica? Right?

Robby: Yeah.

Chase: Did you take a look of any real estate while you were out there?

Robby: Do you know I did look at some real estate while we were there not an as excuse to write off my trip which I probably should have done. I actually paid for this one. Yeah, we looked at some stuff. I was talking to the caretaker in the villa that we rented about how much the house would cost and construction cost and things like that and looked at some other stuff. Relative to what we paid a night for the house and knowing that when we checked in on Wednesday, checked out Sunday. They had other people checking in for another week right behind us. I don't know what the rest of the year looks like in St. Martin, but they are doing fairly good. If they can at least keep that level of occupancy for what they are charging. I'm sure they are doing okay.

Chase: I was going to say you are kind of coming into peak season now I think lately. There is a bit of a little bit of peak season that's coming here but definitely they are doing well. That's awesome.

Robby: Yeah. They are managing. I can tell you one other thing just because it was a group of guys and we rented the house. It was not like city center or right by the activities. I will tell you about the big spurge in my opinion from a trip like this, but it was an absolutely necessary one. Probably one of the coolest aspects of the trip is we had a driver almost 24 hours a day the entire time we were there that was essentially with us making sure everybody stayed out of trouble, that way no one was drinking and driving or getting into taxis and getting split up. It was probably one of the most none luxurious luxuries we've had because it was also cramming 11 guys into a van every time we were going to go somewhere. It was definitely a unique part of the trip for sure.

Chase: Yeah. That sounds like a highly underrated aspect of something that you could do with regards to vacationing. That sounds amazing.

Robby: Enough vacation I found out on none performing notes while I was out there. It's Monday, I need to start ... It's March too. For me it's like a buying month. We bought a bunch of stuff in January. February kind of got all the king's worked out, files transferred. We only had 2 mortgages that we had hiccups with in the transferring in February which is being resolved still and now it's time to go shopping.

Chase: With it being a shopping month or buying month, all that kind of stuff, we've got two things that wanted to discuss today. I feel they go hand in hand. Where did you want to tackle it first? We discussed a little bit about my question. You mentioned you definitely wanted to discuss a particular side of investing. Where would you like to start?

Robby: Where to start, where to start. Well, I would start with what we were talking about with the two parts of investor expectations. Then I think I know where you are going to lead me. One of them is things that we are always improving or trying to improve the business that we are doing and we've got a few investors that have reached out that are waiting for us to be able to find some deals to put together for them. They call and they want to put a deal together and I'm like, well, that's great. As someone calls we go through some stuff. Two aspects of that that I find kind of interesting or kind of challenging. It's an opportunity depending on how you look at it.

The first one being the realization that the way we structure our JV deals is that if the assets go sideways essentially we are going to buy them back. Which I'm not buying anything with an investor's money I'm not going to put my own money into. Which comes in a unique aspect because there is a ton of stuff there I just want to throw my money on. I want to make sure it's a good deal. I have a specific yield that I'm looking for for myself. Now, if my money is in a deal this is the yield that I need. Then if I'm doing a JV deal I look at the deal and the way we are going split returns and I go, "Hey, this is what I need to make off of the time and energy that's invested in acquiring this asset, working the asset out, maintaining all the financials, all the legal aspects of it and then giving the money back up and sending it out."

What's interesting with some of the investors is we have these phone calls and I ask the returns that they are looking for and a handful can give you an exact answer to say, "Hey, you know, I'm looking for returns between 10 and 14%." Last week I met with an investor and we were working on a much bigger deal. The deal that I presented to him was around a 15% cash on cash return sub one year. The response was it's not a good enough return. I'm like, "Well, okay." It went to the perspective of if you really think you should be getting more than a 15% return directly, that's our goal as a passive investor I think that is a pretty aggressive target. Now, not to say that when I'm looking at deals for myself they are not going to be in the high 20s to 30% returns so that I could give that return to my investor but the expectation I think is quite interesting.

When you hear some of our investors that have invested or looked at gold and made no money in the last year, will put the money in the stock market. The stress that they had during the first six weeks and it's filling up in that roller costar of recovering that the expectations that they also seem not investing is riskier than it truly is, which I still don't know if maybe in just haven't made a big enough mistake yet or I haven't bought that wrong note yet to see the high level of risk that I think people are placing on it simply because of the fact that we are buying none performing assets. I think with the discounts we buy them at they are very secure. I don't even know that the investment class justifies the return some investors expect in a passive perspective.

I think they are attributing a higher level of risk to the investment and they are requesting a correlating return for the risk that they perceive to be there, which I honestly don't think exists.

Chase: Yeah. You mentioned two aspects and I don't know if that other aspect is the question I was going to be reading or something else you want to talk about. I just had a thought and this might be totally off base. You were talking about how some people have perceived risk logical diversion because we are "Investing in none performing assets." Right?

Robby: Yeah.

Chase: It just struck me that if I'm a traditional real estate investor looking to say place some one or start doing some tanky rental stuff or to start doing some fix and flip stuff, whatever the case is. By large, obviously as it's already a tenky rental, have already done all the repairs, have already done all that stuff and have already placed a tenant and all those kinds of things, but you've put forth a ton of effort already, most of those are also technically none performing. ie they are not performing yet. If I'm seeking some JV dollars to start doing some fix and flips or whatever it's really not that different except I don't have as many extra strategies. There are a lot of other huddles and I'm buying usually a little bit more expensive than we are buying and some other things like that. That is something I've never actually thought of before.

Robby: I agree with the perspective. The only challenge I would say I give some consideration to the expectations with that is most people don't perceive a fix and flip to last 12 months.

Chase: Sure. Okay.

Chase: You've got the time value of money aspect. They are turning their capital around faster. The other thing is how many TV shows do you see who have no investors? ABC hasn't called us yet but I'm still waiting. I'm holding out.

Robby: Fingers crossed. Fingers crossed. I think that's part of it. You see Sally and Jill are going to buy a fixer upper and they go out and they do their fixer upper and they are on Renovation Nightmares or whatever the TV show is where they can go do it. Where it's perceived as a lot easier to get in a car, go to home depo, buy the stuff you need to fix the house than it is to pick up a phone call, talk to a lawyer, review a title report, review a mortgage. Know what the a service is, board alone. That's different ... People have to study that a lot more in my opinion than it is to go out and you can hire the plumber, hire somebody else. We realized we teach people that.

Essentially we fix and flip notes from the perspective of I hire the attorney, I hire the service where I outsource all of it. I'm not really doing any of it except for one of the things I like to do is go see my properties which a lot of people don't do. It's a none issue. It's just an interesting thing, but the other part of it too is do they have the number they want? We've been working, doing some consulting and I see ROI calculators and I'm looking at the returns I'm like, "Okay, is that the return you want?" Well, I don't know what how much of a return should I get. That's not the question. What kind of return do you need or want on your money? What do you value your time at? Are you paying yourself $50 an hour because you want to make a 100,000? Or you are paying yourself $350 an hour because you want to make equivalent to 700,000 this year? Or 1000 an hour you want to make 2 million. Whatever your perspective is.

I think it's interesting to not go into it knowing that. I've got buddies of mine that do different aspects of real estate. One of them send me something the other day asking me if I wanted to fund a deal and I was like, "Well, yeah. Send me the numbers." I looked at it and it was like a twelve and half percent return and I'm like why would you pitch this to me? He was like, "What do you mean?" I was like, "We already know I make a significantly higher return than that. Why would I want a twelve and half percent return?" He was like, oh, I just thought it would be easy. I'm like, "Well, if somebody comes and offers me money at 6% tomorrow and I can just put it into your deal at twelve and half then that's a good deal but otherwise ...

However, the flip side is if you are an investor with $300,000 say in your bank account or your IRA and it's not doing anything and somebody can propose a deal that makes you 11% and you kind of look at it like it's not a good enough deal, it makes me wonder what your expectations really are if you don't even have a number picked out.

Chase: Or that you would lets say in that scenario you presented that 300,000 just sit as opposed to utilizing it per say.

Robby: Yeah. Not having it ... It's okay. Here is an interesting thing. Maybe it's a little too personal, but here is a great parallel. On my whiteboard I know from my last call my life coach says what do you want in an ideal partner? I told her it's like I need to take some time to think about this right now. Now is not the right time for me to be running around dating and I want to think about it and have an answer. Then when I have a better answer for what I want right now for where I'm at in life I go and get that. Through an investor they can call me and say, hey, we are looking for 10 to 12% returns. We would prefer single family homes but we understand you really like condos in Florida so if it's a condo in Florida, we are okay with that. We are okay with investments between 12 to 18 months and we don't want to keep rentals.

I had that call. Then there is, well, I don't know. We could do whatever. We could do this. That will be interesting. I'd like to see this and I need an 18% return. Okay, that's great. Would you like me to refer you to some other people? I don't know if you got it.

Chase: Right. Definitely. Sure. Okay. I guess it's definitely two sides. No question. I'm just trying to weigh more sense to that when it comes to investor expectations. For the listener that might be encountering this, is it as simple as just saying ... I guess it depends on where your business is. Right? But referring somebody out or just kind of continuing to call your business and continuing to work on attracting those people that were the first example. That type of thing.

Robby: Yeah. There are two ways to with that. I think I know part of the underlying question you are going to ask me next after this. As it relates what should the investor perspective be, it depends. Is it an investor that's just investing for themselves that's listening to our podcast? Or is it an investor that's listening to our podcast, investing for themselves but trying to call up outside capital? The guy that's trying to get outside capital needs to know without question what that is in my opinion. The guy that's doing it just for his own IRA, he is not going to go tell his buddies, he just wants to do it for fun for right now should also be able to sit down and say, hey, this is what I want. This is what I expect.

The difference there, what you and I were talking about before our call is I know what I want for my targeted returns and that's why I have a challenge sometimes finding a ton of inventory to put into JV deals because my expectations are considerably high because I know I'm the one doing the labor and I expect to be paid handsomely for my time. If it's my money going into the deal I want a very substantial return. Well, if it's somebody else's money going into the deal I need to be paid extraordinarily well for my time and energy. I also have to be able to provide a return on the capital that meets their guidelines or their expectations.

However, if I'm new to the Note Investing, I'm only investing for myself, I would say I think there is a lot more deals out there that could fit into that appropriate targeted range and you are simply not necessarily paying yourself as much for your time and effort to go into the deal because it's also not meant to be your full time job. This is your side hobby, the extra thing you have going on to make sure you are helping with the financial stability and growth of your current income, your future income and retirement income and managing it that way. I think there are more deals out there they could find. It's like anything else. There is a reason the stores have clothes in every size and every color. Everybody wants something different. We are not all walking around in uniforms.

Where we were talking about earlier with this, where I was going is I think there are a lot of deals out there that I don't think are good for me because the returns are high enough, but for other people that are going to do it themselves I think the return could be great. I don't know too many investors that are regularly coming across stuff right now, they put in their portfolio after having fixed and flipped or rehabbed the notes so to speak and making 13, 14% return and just pocketing their IRA. You are talking about doubling your money in five and half years, six years. Six years, I guess is 12% with low 72. It's 72 or 73. Probably 72. Right?

Chase: 72. Yeah.

Robby: Yeah. I don't know why I was thinking 73. Yeah, okay. Six years you are doubling your money. I think it's probably safe that you can find a lot more of those out there in the note space and you can find the ones that are going to yield 30%.

Chase: Right. Right. That was the genesis of the question I was asking based around the idea that we are picking up new listeners every week  - by the way if you are a new listener, we appreciate you are listening to the show. Yeah, we have a lot of new listeners coming into the show and some of them are going to be self-funded like you were talking about. Then we were talking about having the money at the beginning of the show that this is a buying month, looking at X, Y, Z deals and looking at over the past couple of months some of the inventory we've seen isn't stuff we swung at for this reason or that reason or this reason. Basically looking at some of the new people coming into the space and going, well, if we are not taking a swing at it doesn't mean they can't. It's either comfortability in that state or the returns they are looking at.

Because for you looking at JV deal something returning 20% isn't going to work. That's just not going to ... Unless you are JV one six or something, five or something crazy it's just not going to work but for someone who is self funded or someone who is only looking for a deal for themselves or whatever the case may be, 20 might be fantastic for what it is that they are looking to do as a first deal or whatever the case may be. That was really the genesis of the question. It was looking at we've got a lot of new people coming in to the space and from an inventory perspective what might they have available to them? I know that there is a bunch of stuff out there that we are not swinging at for a lot of different reasons, but I know the questions are also going to start coming. I just wanted to basically address it before it even happened so we can just link people to the show basically.

Robby: Yeah. Completely. You just finished reading a book too? Speaking of Converting People.

Chase: Speaking of Converting People. Yeah. We did a slight teaser a couple of weeks ago about a new book that's out. I am positive it is going to be a best seller. It's called the Conversion Code. It's by a friend of mine named Chris Smith. It actually drops today while we are recording this, March 7th. We will link up in the show notes to the Amazon page and all that kind of stuff if you want to pick it up. It is fantastic. It is fantastic. It touches on converting leads not only from the marketing side about how to drive leads in both in quantity and quality. Then it also talks way more so about the sale side of it. About actually once you heard that person on the phone, once you have that internet lead, once you are talking with the person face to face, whatever the case may be, actually getting them to move forward with whatever your product is.

In our case for people that are looking for JV capital or things like that I think that this is where this type of book is going to be just an amazing tool to kind of have available to you. He talks about a lot of different stuff, everything from the marketers creed, the scheduling creed, the closers creed where he has certain phrases like "Yes, it's not accident." and things like that. If you are out there struggling to get people to actually commit JV dollars to you, this is the book for you. If you are struggling to actually get people to sit down across the table from or call you or clicks through your website or whatever the case is, this is also the book for you. It's just freaking fantastic.

It covers a lot of the stuff like what you say, how you say and when you say it and why that matters literally giving scripts and a lot of the stuff is just really fantastic. From a marketing perspective when he talks about the internet, he talks about how Facebook is now the homepage of the internet for pretty much everyone. Which is completely accurate and a drum that I've been beating four years now. It talks about how to create videos. How to create calls of action, how to create the perfect blog post, how to set up your website, landing pages, how to handle leads that come in through phone calls. The little script that you need to use to be able to convert someone and actually close them with whatever that means to you and your business. It's fantastic.

Towards the end he actually talks a lot about ... There is an interesting phrase. I want to pull up the quote that he said. It's a mentor I believe of his, gave him. Let me see if I can find it here. All right. Here we go. The quote is from one of his first sales coaches. Basically the quote is, "There is only enough room on my spreadsheet at the end of each month for results not excuses intentionally." He talks a lot about the metrics that matter whether it's Facebook ads, website, leads, all these kinds of things but really the end result is only one result. That is, is your business growing or is it not? All of these other vanity metrics, they matter or don't at all and if they do matter here is how you should be measuring them and things like that.

It's a true playbook. It is not a ... I'm trying to think of a ... Grant Cardone actually likes to say, "I do doing better than anyone else." This book is about doing. It isn't about reading about how Facebook can help you grow your business or about videos or about how Atlantic page. It's not about that. It's literally execution. Start to finish. Philosophy is in there sporadically just to help you understand why you are executing against these particular principles, but really it is 100% a play book. It is Xs and Os unlike most book you are going to find out there, period, flat out.

A lot of the stuff that's in there from a Facebook ad perspective is coming from someone who on a month to month basis such as Chris Smith and his company are managing millions of dollars in Facebook ads. This isn't somebody who is chucking 100 bucks a month and hoping to convert here or just maybe testing there. Literally millions of dollars a month roll through their business into Facebook ads and he provides to you the playbook for setting up your ads to perform just as well.

It's tremendous. It's heart fully fantastic. Like I said, we will link it up in the shown ads or you can just go Google it whatever it's called, the Conversion Code. We also have a bunch of links to like Chris' twitter and Facebook and stuff like that in case you guys have some questions to go directly to the author. I highly recommend it. Like I mentioned for you Robby, I think a portion of the book, a third of the book is going to be really great for you as a refresher. I think that you are an awesome closer as it were. Then the rest of the book will just be the other things that you want me to implement for the show or the business whatever the case will be which is fine.

I think there is literally something in here for everybody and I also think that for a lot of people the whole damn book is what you need. It's really really great.

Robby: Interesting. Well, I'm looking forward to getting that in the mail. What else do we got? Oh, a lot of full closure sale today in south Carolina.

Chase: This was the deficiency judgement sale that was postponed because of that?

Robby: No. This is one where South Caroline if you want to have a deficiency judgement you have to have two sales.

Chase: Right.

Robby: I figured one on the hand or two in the bush. I didn't want to bother with deficiency on this one. We have the sale today. I'm hopeful to have an email when I get back from lunch from the attorney with what happened. I am suspecting it came back as an REO. We did not place our bid too high but we were quite aggressive because we believe the home is in really good shape after the property preservation company went out there to do the organization and got us our internal pictures. I think 7, $8,000 clean it up, painting a couple rooms put some new appliances in there we should be able to get much closer to a retail value. We were aggressive with the four closure pricing.

Chase: For those that are keeping a spreadsheet, what was the timeline in--

Robby: Timeline on?

Chase: In South Carolina in terms of the full closure itself? We talk about timelines.

Robby: I can't give you one on this because we picked it up and it already had ... Whoever was selling it I don't know if they didn't do the due diligence or whoever else was buying it probably hadn't neither. There were some other people looking at the asset when picked it up. There already been a judgement granted so we just had to go in and reconfirm the judgement.

Chase: Oh! Well, there you go.

Robby: I essentially just bought the confirmed judgement. I can actually tell you this is the great part about this one. Lets look at some numbers real quick. It will just take me one second to pull up note works so plug from Mark Gold who is making movies now by the way if you are watching his Facebook.

Chase: If you are watching his Facebook he is making movies. That's right.

Robby: I'm really not sure about what the hell he is doing, but I will have to check it out. Okay, here we go. We picked this note up. Our acquisition date was 10, 12, 15. It took a little while to get some of the paper works. Our assignments hadn't gone out for recording until December. We set our bid at $100,000. Here goes what we are talking about but we are also talking about time value money. Lets say if it sold at 100K it's a 35.7% cash on cash return for the IRA that invested in the deal. He set numbers.

Chase: Probably should have started the show with that.

Robby: Yeah. Lets see. Our financials on it. We picked the mortgage up. I have not logged on my direct custom but we picked the mortgage up for low 50s. The zestimate, which we all know about the zestimate--

Chase: I feel like we need to stop saying that. I feel like if we all know then we all know. I guess you just have to say it so you don't sound like uneducated. Is that what it is?

Robby: Well, this is what I learned. I've got my BPO value from when we purchased it. Anyway, right in here I'm in my screen. I've got BPO value of $90,000 on 10, 5, 2, 15. That wasn't a BPO that we did or was given to us, that was my extremely conservative valuation on it. That was what we ran our numbers at essentially saying we would liquidate the property at 85% of 90,000 and would give us the yield that we wanted. Which is why we put the listing and we think it's worth obviously a little more. We put the full closure sale price at 100. The zestimate on here is 135 and I'm ready to reconfirm that now with a local broker I've been talking to. It will be interesting.

I don't think that that zestimate is too far off. I think it might be maybe somewhere in a low 120s but for the extra 2 grant and the fact we only had low 50s invested, we figured it was worth going after it a little more aggressively and taking it back as already ongoing from a short sale perspective.

Chase: For sure. For sure. Yeah. That sounds interesting. Okay. From a deal perspective South Carolina ... Yeah. I guess it's hard to ask. Right? Because you already have the judgement in there. It's not really much to go up in terms of is South Carolina somewhere you will go again if there is a judgement early in the file definitely. It's on your list of places to invest. Why?

Robby: Well, actually this was ... It's in Lancaster, South Carolina. It's about a 45-minute drive south of Charlotte and I can do a direct flight on America to Charlotte very inexpensively. I have a couple of friends in Charlotte and it's close enough to me on the east side of town or east coast of the United States. Yeah, economically speaking I think there are aspects in larger cities that are well supported from an economic base and at are least going to grow at a normal clip. There are good places to check out. There are some good colleges there. If you can find some stuff around college towns.

Chase: Well, I know that South Carolina is on a lot of people's list. I just didn't know what in this case if it was on your list and say we are looking specifically there, it sounds like you kind of came into a really great deal there regardless.

Robby: Yeah. As well and also these little ones ... It ends up on your list, you run the numbers and you look at it., you stop looking at other stuff and you make sure you buy it. I think that's one of the other unique things. We could save that for another time, but I was talking with somebody else the other day about going through a tape we called a hundred assets. They are doing the Google search in the Zillow, in Trulia and Realtytrac and documenting stuff about each one of these notes all the way through and then going back. Going, okay, which ones were good? Which one were low crime? Which ones met my metrics?

As opposed to, not that I think that's a wrong way to do it, but I found that they are finding less good deals or they are concentration on less good deals thinking they need to find that one diamond in the ruff as opposed to when they find a deal they think is good just stop, start evaluating it as though you are going to buy it. I think that--

Chase: Oh, that's interesting.

Robby: That's the paralysis or the analysis ... Analysis paralysis that people get and maybe that will be an interesting thing. I like to talk to get some emails when somebody has got some other take-backs on that about going through tapes and leaving. Because for me when I find what I really like I stop. I go dig into it, get enough numbers to the point where I ... When I say I'm going to dig into it we are talking ten minutes max. I'm not going to spend much more time than that. To go, "Hey, I'm I willing to put a bid in this or not?" If I am great. I'm through with my ROY calculator I'm going to change my offer price to get to my returns that I need based off of what I have known about my understanding of the value today and my understanding of taxes today.

Then I'm going to start submitting offers based off that as soon as I can because you got to forget this is a race to the finish. You are not the only one looking at these tapes most of the time unless you are lucky enough to have the phone call you directly and say, "Hey, we brought a bunch of stuff last month. Can you take a look at this for the next three days? If you want it, great. If not, just let me know."

Chase: Is that a grass is greener potential? I know it's analysis by paralysis, I guess I wouldn't have even thought that that would be an issue someone would come across.

Robby: I think its just not ... There is too much analysis in it. Not say it's a different form of not taking action by continuing to just go look at other ones, it's like I don't want to commit to anything yet. It gives some excuse also to not commit to anything.

Chase: Wow! That's fascinating. Yeah. I would like to get some I guess listeners' feedback on that. Is that something that either you struggled with and you've overcome, that you struggle with and you just now realized or something like that. That's pretty fascinating--

Robby: You are saying from other people, not for me.

Chase: Yeah. Yeah. I'm saying listener's feedback. If you are listening to the show--

Robby: Oh! I though you were asking the same. I was like, "No."

Chase: No. No. I think it's interesting in so far as also in knowing what you know now in terms of how many bids you have to put in to actually get an asset and other things like that why not just stopping, finish whatever the initial due diligence should be on a particular property getting that ready for an offer submission and then maybe going back to the tape or whatever the case is. If you stopped, submitted and then came back you still could not end up with the asset but it's a race to the finish and often times first one there gets it by a proxy of busyness of people's lives or whatever the case may be. I think that's interesting. Yeah. I would love some listener feedback on that for sure. Fantastic.

Well, guys thank you so much for listening to episode 66. If you got some value please head over to iTunes, give us a rating and a review if you have not already. Also be sure to check out the show notes this week and every week but specifically this week for all the links that we've talked about with regards to books and other things that we will be covering. As always you should tell five other people you know about the NoteMBA podcast. We will catch you guys next week.

Robby: Have a good one guys. Take it easy.

If you have any questions for us or comments send them our way at ask@notemba.com.

Listen to this week’s show and learn:
  • The Conversion Code By Chris Smith
  • Why JV Investor Expectations Matter
  • More Lifestyle & Business Design Takeaways Regarding Vacations
  • Our Latest Deal In South Carolina & Why We Didn't Seek A Deficiency Judgement
  • The Different Part Of Investor Expectations
 Listening Options:

Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Mar 09 2016

38mins

Play

Rank #20: 068: Becoming A Full-Time Real Estate Investor

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This week we are doing an Investor Spotlight with Gabe Kass, an investor out of Huntington Beach, California.

Just within the last 6 months, Gabe has left his full-time job working as an analyst on some very large bond portfolios to focus on his note investing/real estate business. He’s currently managing a portfolio of over 25 notes and has recently picked up a handful of REO properties.

He owns a mix of 1st lien and 2nd lien position loans. Gabe also has a background in managing a portfolio of hard money loans for his family members.

One of Robby’s biggest takeaways from the call was Gabe’s digging into social media background of delinquent borrowers when evaluating potential note purchases.

Beyond that Gabe shares a great resource for getting drive-bys on properties. For $35 you will get a report on the condition and neighborhood. You need to get a few minutes into the show to find out about this great nugget of information. (www.nvms.com)

We span the note business, from evaluating notes to how conversations with investors go on the front and back end of a deal. We also talk about investing only money for friends and family, and Gabe covers the progression to also managing assets for friends of friends through a close network of peers.

Gabe’s whiteboard notes on his business routine:

  • You need to acquire new loans
  • You need to market your loan results
  • You need to network to gain new investors

Sign up for Gabe’s newsletter on his website at www.surfcityinvestors.com.

If you have any questions for us or comments send them our way at ask@notemba.com.

Listen to this week’s show and learn:
  • Our First Investor Spotlight
  • The Difference Between Investing In 1st and 2nd Liens
  • How To Use Social Media Due Diligence As An Investor
  • How To Distinguish The Goals Of A Potential JV Partner
  • Which Deal Got The Note Of The Year Award
 Listening Options:

Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Mar 23 2016

47mins

Play

148: The 5 Best Ways To Lose Money In Note Investing

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The 5 Best Ways to Lose Money in the Note Business

Intro

#5 - Investing Your Last Dollar

Twofold -- you have to keep money on hand for holding costs and workout expenses. If you have $50k to invest, you better not buy a $50k deal or you are going to stuck holding that deal forever. Your servicer’s kids need to eat too, you know.

You also do not want to invest the last of someone’s savings. These will be the investors that constantly want to check in and see how things are going. They need to know their last pennies are OK so they need to hear — repeatedly — that all is well. You want the guy with enough invested overall that by the time he gets around to checking in with you, you’ve already emailed him an update. Then once he’s sure you’ve got it together, he brings you more $$.

#4 - Sloppy Due Diligence

We all know where to start -- beds, baths, square footage, sale comps… But there are things you could be overlooking that might not be a big deal if you budget for them or might make your deal a total loss:

Do you CALL on the taxes? County websites are not great, even if some are better than others. You cannot be sure that looming tax certificate or tax deed sales are posted. You also cannot be sure that the county website details what city taxes, school taxes or even local sewer charges might be delinquent. You have to call and you have to ask the right questions.

Do you call code enforcement to see if fines are accumulating? I’m not sure everyone understands how quickly these charges can get out of control. We are currently foreclosing on a FL condo that has had a torn screen on the patio for years. Her outstanding town lien is over $600k. (We’ve been assured that since the town has not had to actually spend money on the issue, it will be wiped out with the foreclosure. I’m choosing to believe that until proven otherwise.) Other issues — like forcing the town to come mow the lawn — are easy fixed even though you don’t yet own the house. I’d much rather pay $100 a month during foreclosure to have the lawn mowed than get a $5000, earning more interest every day, bill from the city.

When you check condition on Google, do you zoom out to see if there is something unsavory near the house that will negatively affect its value? Do you know how hard it is to sell an REO close to a sewage treatment plant? Do you want to worry about what the heck is in that weird green pool of something down the street? It's no news that foreclosure happens and you want to take back an asset you can actually sell.

Have you checked to make sure the borrower name matches the current owner’s name? If it doesn’t, it might have gone to tax sale. Or the HOA might have already foreclosed. If the new owner is a beneficiary of the original owner, there could still be some probate issues. No one needs a distant cousin 700 times removed to put a cloud on title.

If it’s a condo, have you checked to see if there is a rental or age restriction? This will make it harder to sell the asset if you take it back.

Do you check Pacer no matter what the tape says about their bankruptcy status? Even if they actually aren’t in BK now, if they filed previously, the case information will be available and you can get great insight into their life at that time vs. now. It’s a great window into why they aren’t paying.

Do you check county records to see if the borrower owns any other properties? This is where a deficiency judgement might be a great play. There are different opinions in our space about filing for deficiency judgements so this may not apply to you. If the borrower works with me, there is no way I would even consider a judgement. But hostility, lying, forcing me to evict you? I’ll do it if I can collect.  If they own other properties — their own home or other rentals — there’s my money, assuming that state allows me to file a judgement.

Do you have your attorney review the collateral file BEFORE you purchase the loan? Collateral custodians do not understand the legal nuances that each state enjoys. Even if they find a gap in your assignment chain, they can’t recommend a fix for it other than using their expensive, pay even if we are unsuccessful document management process. Not only can your attorney find issues, find cures for those issues, and tell you how big a problem any unresolved issue might be, they are going to recognize issues that are unique in their particular state. Without question, you will pay more money for an attorney’s file review. But if an extra $100 keeps you from throwing your money away on an uncollectable deal, it’ll be the best $100 you ever spend.

A quick example. I was reviewing a deal in Ohio -- a first on a typical 3/2, 1500 sq ft single family home. A husband and wife were on the deed but only the husband was on the mortgage. For the newbies in the room, that’s not a deal breaker as long as the non-borrower spouse grants permission for their ownership interest in the home to be used as collateral. The wife had signed to give her permission so I checked that off the list and moved on. Everything else was fine -- the assignment chain, the note and allonges, servicing history, even the entire loan app with all it’s disclosures and documentation. I was ready to close and had my funding set up. All that was left was sending the wire.

And then I got the call. The language that was used when the wife approved the mortgage was incomplete. Apparently, in Ohio, spouses (both men and women) have something called a dower interest -- beginning forever ago when a wife came into a marriage with a dowery. And apparently, the approval has to specifically address the dower interest and this one did not. Worst case scenario, I wouldn’t have been able to take full ownership of the house. I’m not sure exactly what you do with 95% of a house. My attorney saved me from a huge headache that a collateral custodian would have never found.

#3 -- Accounting

Accounting in the note space can be such a torture. We’ve all dealt with that deer in the headlights look when explaining note investing to a potential funding partner. We shouldn’t have to deal with it from a professional.

Grasping the concept doesn’t seem to be a matter of intelligence or education but rather being able to put aside what you currently know about real estate investing long enough to see a new path. And accountants, either by birth or by training, aren’t great at putting anything aside. As a client, you really have to walk them through a few deals before they get it. And take it from me — unless you personally know a note investor that has used this accountant, don’t believe them when they tell you they have experience with note investing. They certainly don’t all lie but putting a one off seller finance note that has never missed a payment into the system is a lot different than trying to book 100s of semi performing, went BK, paid every third month for a year, finally foreclosed but now have to evict kind of deals. Exaggeration affects all professions.

If you need an accountant, there is a guy who presents at different note conferences you might consider. He’s not particularly good at answering questions from the audience but he could be a fantastic accountant. His firm is large and there is nothing necessarily wrong with with staff accountants but the head guy’s understanding of the notes space does not necessarily transfer to his staff. You have no idea if the junior accountant you’ll be assigned to is any good let alone trained or trainable. If you are interested in talking to them, I’ll be happy to give you their information off stage. But you have to promise me that you are going to press them to make sure the staff member assigned to you either knows note investing or is willing to be trained on it.

Another headache is the fact that when someone has a great accountant, they really have to keep that on the down low. I’m currently still testing the one I’m using but let’s say I was comfortable enough to recommend him. What if every investor at DME suddenly calls him during tax time? Would my returns ever get done? And done efficiently and in a timely fashion? Until there are more hours in a day, passing this particular resource along to everyone does make your life more difficult.  

That’s why I think your best option for finding a good accountant lies in your network. With almost everything notes related, you need a group of people you can count on for advice and good recommendations. If my guy turns out to be good, I’m certain he can handle

#2 Tunnel Vision/Inflexibility

This issue can affect your business in many ways.

When you decide you will only invest in one market or only invest in one type of deal, you always limit your deal flow. Currently, there is a remarkable number of tapes flying around but prices are pretty high and quality is kinda low, making it tougher than usual to find a good, solid deal you know will make your investors happy. If you have a really narrow focus, you might find yourself out of deals. You need to explore different note deals (1sts, 2nds, contract for deeds — performing, non-performing), different markets (judicial really isn’t so bad if you have patient investors and holding costs built into your model), different real estate deals (you end up with an REO from time to time so how about starting with one? You usually note yourself into a deal — how about noting yourself OUT this time?) or different asset classes (have you checked out commercial?). You can also try finding new deal sources (if you’ve always bought from hedge funds, have you tried calling banks? Current investors? Looked online?). When deal flow changes, you have to change with it or it won’t be pretty.

Another inflexibility we see amongst note investors is a hard focus on purchase price. Don’t get me wrong — you’ve gotta know your numbers. But you have to make sure you are hard and fast on the RIGHT numbers and flexible on the others. I confess — this was a big one for us. First, the prices some sellers are looking for — and unfortunately, some of the newer investors are willing to pay — have gotten crazy. There’s not enough room in a note deal to pay almost 80% of value because you really have no idea what the inside of that house is going to look like. You need that buffer. But how do you find your absolute highest % of value you’ll pay? Well, it’s not like I did at one point and pull it out of the air. “I absolutely, positively will not pay over X% of value!” Is a statement that can get you stuck. Because ultimately its not about price. It's about your ROI. Let’s say your seller counters at 60% of value. If you have decided that 60% is just nuts — with a few rounds of “that seller is out of his freaking mind!” — you may be walking away from a good deal. Did you run your counter through your ROI calculator? Is your return still at or above your target return? Then why would you walk away? No one wants to overpay obviously but prices are what they are. Deal flow is what it is. You pay what you have to pay to get the results you need. What’s your alternative? Sit around waiting for lower prices while your investors put their money in other deals? Do that for too long and you’ll be out of a job.

Taking that a step further, what if that new price lowers your expected ROI to just under your usual target. I’m talking 2% off, maybe 5% off — not cutting it in half. Do you immediately say no? Or do you take a beat before you decide?

This has been an issue Chase and I have dealt with frequently. If I’m going 50/50 with my funding partner, an ROI of 20% is hard to sell, especially as a one off and especially to investors in this room. But if keep turning down all of my counters, I lose credibility with both note sellers and my investors. I need both to keep coming to me, not looking around this room for other investors who might be able to close. That means I have to consider changing the deal split. If I take less so that my investor gets a great return and then brings me more money, have I really lost anything? In this 20% example, say I go 14/6. My seller is happy. My investor is happy. And it’s not like I’m out on the street. I’ve just made an investment in both relationships and still got paid a return on funds I didn’t even have in the deal. Note investing is a numbers game so if my return on 1 or 2 deals out of 20 dips a bit but my business overall is stronger, it’s a definite win.

Honorable mentions -- vetting, education

Vetting

Not vetting your investment partners. This holds true for both the active and the passive side of the transaction. I know you want the money for your next deal but do you really know the person you are taking it from? I’m not talking about the investor questionnaire and the 5 touches you need to do to keep the SEC happy, although those are obviously important. I’m talking about what it’s going to be like to have this particular personality in a deal with you. Are they going to call every day to see what’s up? Will they respect your knowledge and experience when it’s decision time or will there be a lot of second guessing and repetitive questions? Likewise, are they going to be so hands off that you can’t get a hold of them to make sure you are both on the same page? If this person seems annoying before funding, they aren’t going to get much better after funding. Obviously, you won’t become BFFs with every investor but the reality is, a bad investor can make even the most profitable deal torture. Hard as it is to imagine, you could actually turn someones money down.

On the flip side, for our more passive investors and the newbies who want to learn by partnering on their first deal, what kind of vetting are you doing on the guy you are giving your money to? Charisma won’t keep your money safe. Excitement and energy are not synonyms for effectiveness or focus or even character. A wonderfully detailed story about how a great a deal went could be just that — a fantastic story. Could have been someone else’s deal or it might be total fiction. Your due diligence cannot stop at the deal itself. The best ways to vet your asset manager finding someone who has actually done a deal with this person and see how it went. Go online and look for reviews. They are harder to find than reviews for an Instapot but they are there. Start by searching Google with the term “I invested with” and his or her name and see what pops up. You can do the same on Bigger Pockets. You can also pick the largest counties in the state the investor lives in and see if any liens or judgements have been filed. In general, we do more research before purchasing a television set than we do before handing over our savings. Don’t let that be you!

Education — While note investing is a lot harder than some people make it sound, you probably could learn it all by yourself. Lots of us write books and articles, maintain a blog, record a few videos — put out a lot of content that could help someone start from scratch. But that takes an incredible amount of time and energy. And it’s isolating — you don’t meet anyone who is learning alongside you compare notes and bounce ideas off of. Wouldn’t it be much easier to dive into a formal note education and speed up your learning curve? Yes, it will cost you but so will taking a bath on deals you bought before you knew better. And your network? With many programs, your access to other investors explodes and you can watch, listen and learn from so many more people faster than you ever imagined. And there are many options out there — choose the one that fits your learning style and pocketbook best. Time really is money so if you shorten the learning curve, you’re investing sooner and better than the rest.

#1 Not acting like you are running a real business

While some people are operations and systems focused and others find that painful, you really do need to have a system in place to manage your note investments. There is a lot of detail and paperwork in every deal and if you can’t keep on top of it, you’re going to lose money. In the beginning, your workouts will simply take longer because you won’t have the information you need on hand to make decisions quickly. As you progress, you’re going to miss nuances in the data that you can use to make sure you don’t leave money on the table.

Of course, your systems are going to evolve over time. The spreadsheet you use for your first 2 notes is going to look a lot different than the software you are using by your 100th deal. But you have to keep the business part of your note business in mind as you grow to avoid chaos. Because as you add another deal here, 2 more there, maybe another 5 a little while later, you feel the need to keep it all organized looming. Are you going to manage that need thoughtfully as you go along or are you going to keep putting it out of your mind until it blows up and all your deals are in limbo for a bit while you try to dig yourself out of the chaos?

This also applies to processes. Some elements of the note business are pretty repetitive. Reviewing a collateral file. Boarding a loan. Vetting an investor. Adding force placed insurance. All important tasks but things you eventually could do in your sleep. And what happens with repetitive tasks after a while? We get sloppy. We get busy and don’t focus like we should. And then we miss things.

What if you documented the process and then followed a checklist every time? If you’ve got 10 things to check off while reviewing a file, are you just going to ignore step 6?

And what about when you finally hire an assistant? Training — and trust — are tough. How much easier will it be on you if you can look over their completed checklist to see that they covered it all? A thoughtful management system — with appropriate checks and balances — will help you function as a real business and not just a hobby.

Aol email addresses

Not putting your face on LinkedIn

Using FB for business but having your cat as your profile picture

Not managing your relationships

Mar 07 2018

38mins

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147: Note Investing to REO & Finding Yields In Different Markets

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Feb 21 2018

1hr 25mins

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146: Endure The Monotony Of Success

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Endure the monotony of success, according to Gary Keller that is something that sets winner apart from everyone else. "The number one reason most people will fail, it's because they are unwilling to endure the monotony of success." Robby talks about it at the top of the show, but there is no question that 2017 was one crazy year. We experienced some tremendous opportunities for growth and education through some hard knocks. And though we are definitely grateful for that. We're also grateful for the other opportunities that came our way as well. So, let's dive into the first episode of 2018.

Setting 2018 Up For Success

If you've been apart of the Note MBA community you know transparency is important to us. We love that we get an opportunity to speak to you, where you're at in your life and business. And we take it very seriously, which is why integrity and transparency are so important to us.

In this week's show, we bring some real heartfelt content to you about where we are right now. Around 2 AM on Tuesday before the show goes live this week, Robby recorded a brief, high energy message about where we've been these past few months. 2017 kicked us in the knees a bit - to phrase it lightly. But, we're here, and we're grateful. 

Goal setting shows have always been special for us around here, and they've been a fun look in for y'all as well. I'm sure with Robby and David out this week, there will be more goal chatter in the episodes to come. But, for now, let's dive in on what I've got lined up for the year.art a capital fund, who else is there to call but Bob Repass. So, they've been running that operation since about 2012.

Endure The Monotony Of Success

For this year, I'm doubling down on my reading goal for last year. For those that don't remember, I decided that in 2016 I had read too many books. Which I know might sound crazy. However, that is how I felt about the consistent striving for more people have been driven to regarding reading books. I felt that I wasn't really giving myself to time digest and implement in a way that was really impacting my life.

Fast forward to this year and I couldn't have been more right. The experiment to read less but implement more worked extremely well in 2017. So, I thought why not take it one step further. Instead of 3 books, I'll only do one book. And since our Note Investing Academy Book Club book of the quarter is The One Thing, I'll make it that book.

In making that decision, I might've changed the path of my life forever. And I mean that in the best way possible. Take a listen to this week's show to find out what I mean.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:
  • Are You Committed To Endure The Monotony Of Success
  • How To Properly Write Your Goals
  • Why Setting Activity Based Goals Will Change Your Life
  • What One Book I'm Reading This Year
  • Upcoming Events & Real Estate Travel Plans
  • And much more!
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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Jan 10 2018

45mins

Play

145: Buying $300 Million A Year In Notes & Note Expo 2017 Recap with Bob Repass

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Bob Repass is a 25-year veteran of the seller finance and note investing space.  Over his career, he has purchased over 40,000 performing and non-performing mortgage loans totaling over $2 billion in volume. He brings a tremendous amount of expertise to show, and we really enjoyed talking with him during the expo - and on today's show.

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Bob Repass

Bob Repass has had an impressive career. Even more impressive is how quickly he rattles off many of the highlights during the interview. Some of the highlights he mentions are starting with Associates Financial Services in 1997.

From there he mentions moving on the Bayview Financial, and that is where the fun starts. Bob casually mentions buying over $300 million a year in seller finance notes. I couldn't let me just walk past that - which I've been told says more about me often times. As an aside, I find it incredibly interesting when you're in a conversation with someone, especially when others are present, and someone drops some knowledge like that. Then everyone just smiles and nods like they know full well what that feels like.

It's ok to be in awe of something you haven't experienced. It doesn't make you seem like less of a business person to ask questions about things like this. That is my opinion at least. Rant over.

So, he moves on to buying a tremendous volume of deals over the course of 8 to 10 years. Then when Eddie Speed wants to start a capital fund, who else is there to call but Bob Repass. So, they've been running that operation since about 2012.

Past, Present, & Future

Framing up Note Expo 2017 was entirely focused on the past, present, and future of our industry and the market. The biggest takeaway was the shift many of the bigger players see market headed.

During the event, there were numerous panels and presentations about what different people were doing cradle to grave with their deals. Which lends itself to many different talking points. Obviously, if we start with the cradle piece of that analogy, we can get an idea of what kind of deal these people are primarily focused on, and where are they getting them. From there we can go through potential workout strategies on deals, all the way through to full disposition.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:
  • What It Feels Like To Go Through Over $300 Million In Loan Acquisition
  • If You Don't Have A Seat At The Table, You're On The Menu
  • Interviewing A 25 Year Veteran In Note Investing
  • If You Have A Big Checkbook You Can Go Buy The Market
  • Upcoming Events & Real Estate Travel Plans
  • And much more!
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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Dec 13 2017

48mins

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144: Evolving As An Investor

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Evolving as an investor is the best way to keep yourself ahead of the competition. And though we've discussed on the show before that in the note investing space people can have a spirit of coop-etition, there is certainly still an element of competition in there. Which makes evolving as an investor an important endeavor.

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Evolving As An Investor

As we get closer to 2018 you know there is a goals episode on the horizon. However, there seems to be some more pressing issues at hand. During some recent conversation both online and off, it seems too few are paying attention to all the macro and micro issues within the note investing space.

Just to name a few, the recent rumblings at the CFPB and early numbers coming out about foreclosures/defaults headed into 2018, are two macro issues you need to keep an eye on. And that's just two! There are many more where that came from. There is a double edge sword thing happening here in the note space. Everyone wants to talk about how great it is to be the bank - which it is. Though, they fail to see how important all the data points from a macro economy perspective can affect their business... you know, just like a bank.

And on the micro side, we've been blowing the horn about proper business management, organization, and systems for the better part of 2017. We've gotten our fair share of emails about how we sound like a broken record from time to time. And that's fine, we'll continue to talk about because it matters. Running a tight ship, paying attention matters. Doing the right thing is always the right thing.

And lastly, like we mentioned many moons ago, it's ok to pivot from time to time. If you have a great wholesale opportunity come across your desk, do the deal. Got a good lookin' development deal? You might want to do more than just "consider" it. That's what evolving as an investor is all about. Remember Amazon started as just an online book seller. It's unlikely a bit of evolution will kill you, but not doing it, just might.

Note Investing Contracts

That header could've also read real estate contract, or just contracts. The number of times I've read through a contract and seen errors is bananas. One that we went through this week though was something else. This was a seller many listeners might know. This is a seller with a good reputation - or at least a decent one. It didn't matter though.

His contract was junk.

If you haven't been burned from not reading a through an entire contract, line by line, congratulations. It's one of those lessons that seems to catch everyone at least once. And I've seen too many bad ones in the space that I'm surprised we haven't covered it on the show before.

With all the sellers and potential buyers you plan to do business with, please... please read the contracts you're given thoroughly. The one we cover on this week's show had some unreal errors and was so totally lopsided in favor of the seller I'm surprised he's made it this far with it. And I know some people that have touted buying from this person. Which can only mean one of two things: he thought he could pull one over on us or he's been pulling one over on others. Either that, or he accidentally sent us a very old contract from 3 years ago... that he just had laying around... I guess.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:
  • The Importance of Properly Reviewing Contracts
  • Why You Need To Be Evolving As An Investor
  • What We Did For Thanksgiving
  • A New House-Hacking Project
  • Upcoming Events & Real Estate Travel Plans
  • And much more!
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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Nov 29 2017

30mins

Play

143: Your First Note Investing Deal

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Your first note investing deal can be daunting as hell. Have you gotten yourself set up with all the right vendors? Have you fully research things like foreclosure timelines in the market you're investing in? How long did they say the service transfer was going to take? Wait, what's a service transfer? All of these - and admittedly many more - are important questions to review as you start note investing. During today's show David breaks down some items currently going on with his first note investing deal.

Your First Note Investing Deal

So, David can now finally answer the question, "What was your first note deal?" It's a 3 bedroom, 2 bath in Ottawa, Kansas. Right off the bat this is an interesting deal to look at because certain parameters. Most notably is the small population of just under 13k. Most of the time I like to see over 35k, but it might've been due to familiarity with the area or it was just a steal of a deal. It'll be something I'll follow up with on a future call for sure.

Another interesting twist early in the game on this asset is that the borrower is deceased. So, the first order of business - aside from getting the service transfer done and getting docs in order - is to TLO an possible next of kin. TLO is a service you can use in your business to obtain important information about your borrowers.

They've also dealt with some assignment of mortgage issues on the file thus far.

Note Investing In Equity Deals

This past week we had another swing and a miss on potentially buying a pool of loans. This time around the reason we couldn't purchase was due to huge equity deals in the pool. Originally we thought we'd be the ones nixing the deal due to being uncomfortable with the level of equity in the pool. However, it turned out that the seller just wanted too much for the deals.

One of the major reasons people recommend that avoid deals with equity, or at least substantial equity, is because the pricing on that loan is going to be higher. Also, you tend to encounter whole exit strategies being taken out of the equation.

So, the general rule of thumb is to avoid them in the beginning to avoid higher pricing and getting yourself hamstrung into an exit strategy you didn't want to take, or it being the only one you an take.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:
  • A Major Bank Once Again Offering Zero Down Mortgages
  • Brief Note Expo Recap, More To Come
  • Note Investing In Equity Deals
  • Deficiency Judgements in Kentucky
  • Robby Has A Loan Mod Mediation, Can't Wait To Hear About It
  • And much more!
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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Nov 15 2017

49mins

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142: Boots On The Ground And Note Expo

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Boots on the ground is a phrase you're likely to hear quite a bit in the military and in real estate. And sometimes it hard to tell which group takes it more seriously. Boots on the ground is what we say in the real estate space when we're referring to having a solid group of referral partners in place in a particular area. 

Boots On The Ground

On a recent trip to Ohio I got the opportunity to establish some more boots on the ground contacts. Well, I tried at least. Before heading out we gathered some names of some local contacts to meet with during the time in Dayton. Some stood me up, others never got back with me. David mentioned on the show that they've had issues with flaky people in the area as well.

The reason for the trip was to handle some recording issues we had with the county. Apparently the phrase, "the right hand not talking to the left" was invented in Dayton - or more specifically, Montgomery County. The issues we've had trying to get a deed recorded remotely for the past several months has been absolutely comical. All of which came to a head when I had the pleasure of dealing with it in person.

During the trip I also drove assets from some bank and hedge fund contacts, and I took a look at some assets for a few fellow note investors. Once all that work was done, I took some time to drive multiple top zip codes in the Dayton area to get a better understanding on where we should be looking for deals. And so we can better communicate with those boots on the ground contacts we'll be working with - whenever they decide to call me back.

Note Expo, Selling Around You & Big Live Success

We've gotten a few emails about whether we're heading out to Note Expo, and the answer is yes. If you were on the fence, we'd love to see you come out to the event and say "Hi!"

Don't forget about Robby's life and business coach Michelle Humphrey. She has another Big Live Success event happening in November. This event is something you can attend to really get your mental game on point. We've heard feedback from a few different members of the community that have either gone to this event, or hired Michelle to coach them, that have blown past roadblocks and driven some serious success.

Lastly, on the week's show we talk about a seller, selling around us on a few deals. Many it was an opportunity to hear how other people handle this situation, and whether or not they've encountered it before, or regularly. 

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:
  • The Importance of Boots On The Ground
  • We Are Headed Out To Note Expo
  • The New Book Robby And I Are Giving Away
  • Why You Should Eat At Red Lobster On Your Next Note Road Trip
  • Being Sold Around
  • And much more!
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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Nov 01 2017

58mins

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141: Buying an Entire Hedge Fund Tape

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Buying an entire hedge fund tape sounds really exciting - and maybe a little scary. Recently, with many of the pricing issue we're all seeing in the market, we've decided that buying an entire hedge fund tape seems to be the only way to get the deals and pricing we want. On today's show we talk about our recent at bat trying to do just that.

Buying an Entire Hedge Fund Tape

We've heard a decent bit of grumbling in the market about pricing - we've even talked about it on the show before. And if we're being honest, we've done some belly aching ourselves. However, belly aching isn't going to solve the problem. So we've been game planning and strategizing on what we can do about it.

Recently, the thought of buying an entire hedge fund tape is one of those ideas we landed on. Now buying an entire tape isn't something new. People have been buying entire hedge fund tapes since the 1980's. We even have some close contacts that have picked up entire tapes - or pools the size of an entire tape.

If you've been in the busy long enough its likely you've even bid on an asset or two and lost on those deals due to someone buying the entire thing.

We recognized a tape that might fit the bill. We did some initial high level due diligence, and things looked good. We knew bids would be due soon, and coming in with an offer on the entire tape was a stick we hadn't swung before. So, we decide we'd do a bit of formal due diligence on the tape to make sure we knew what we were getting into. After some time spent on that the tape was moving from good to great - there looked to be some real cherry deals.

The day before bids were due, we got some follow-up form some boots on the grounds, and took one more look at each asset, line by line, and things fell apart. And it was not for us trying, that's for sure. It was heartbreaking to find ourselves in another situation where we'd done a ton of due diligence only to not have a bid accepted - in this case because we weren't submitting one.

However, we carried forward some valuable lessons. We became increasingly more comfortable with the idea of buying an entire hedge fund tape. We locked down some "must have factors" for an entire tape purchase to make sense. And a few other items. It's a numbers game, and we'll keep stepping up to bat.

Note Expo, Big Live Success & Ohio

We've gotten a few emails about whether we're heading out to Note Expo, and the answer is yes. If you were on the fence, we'd love to see you come out to the event and say "Hi!"

Speaking of event, Robby's life and business coach Michelle Humphrey, has another Big Live Success event happening in November. This event is something you can attend to really get your mental game on point. We've heard feedback from a few different members of the community that have either gone to this event, or hired Michelle to coach them, that have blown past roadblocks and driven some serious success.

I'll be out in Ohio this weekend. So, if you live around those parts and want to meet, or if you have an asset or two you want me to take a look at, send me an email, and I'll see what I can do.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:
  • The Event Coming Up With Robby's Coach Michelle
  • We Are Headed Out To Note Expo
  • Buying an Entire Hedge Fund Tape
  • And much more!
Featured on the Show: Listening Options:

Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Oct 18 2017

37mins

Play

140: Delinquent Tax Proof of Payment Strategy

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Delinquent tax proof of payment strategy was a hot topic over on our Facebook page. Robert wracked his brain for a strategy and system to improve the way we handle providing proof of payment on delinquent taxes. And it would appear as though we've made some headway. 

Deal Closings and Course Launching

It's been a ruckus past few weeks for the Note MBA team. We've had several closing, some of them from note deals - including a bit of wholetailing - a lot deal, and David closed on his flip. We take some time diving into the numbers and strategy of David's flip.

One of the key takeaways is that David did all the work himself. He even admits in the show that this probably wasn't the best strategy. After doing a little happy dance, he talks about how he picked it up as a HUD home. In the beginning he was living in the home while renovating, using a house hacking strategy. 

He bought the home for $180k, after $20-25k in repairs, he was able to sell it for $283,000. So, first off, solid freaking deal. This obviously doesn't include his time costs. However, it gave him an amazing education in what it takes to do a quality rehab job. Going forward he'll be able to take that knowledge into numerous future deals.

Today is also the launch of The Note Investing Academy. This is, without a doubt, going to be the premier course for note investing education. We've been planning it for months, working with the input of numerous other investors - including two additional "instructors" for the course.

The course itself currently includes over 60 video modules that cover everything we could think of, and have encountered in the business. And that word currently is important. We know that things changes, and that there is always something for to expound upon. So, one big aspect of the course is community feedback. We're committed to listening to feedback from everyone that takes the course.

We will continue to add to the course, and improve upon it as time goes on.  We're very excited about the the launch, and if you pick it up in the first 5 days you'll get $500 off.

Delinquent tax proof of payment strategy

It all started when Robby needed to get proof of payment over the FCI, so that he could add as a corporate advanced expense delinquent tax payments. It was like banging your head against a wall to get the proof over to FCI. Enter into the picture the delinquent tax proof of payment strategy.

With the payment slip, proof showing on the county website FCI still wouldn't move on it. So, Robby thought of a genius strategy to overcome this issue. He sent a handwritten note, a self addressed & stamped envelope, and a forever stamp to the county. And wouldn't you know it, it worked.

To see how we've moved to systematize this take a listen to this week's episode, right around the 21 minute mark.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:
  • Closing Deals All Over The State Of Florida
  • A New Note Investing Education Course Debuts
  • An Interesting Facebook Content Strategy
  • Delinquent Tax Proof of Payment Strategy
  • And much more!
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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Oct 04 2017

41mins

Play

139: Wholetailing Might Be Something Your Note Investing Business Needs

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Wholetailing might be a phrase you're unfamiliar with - heck, you might think I spelled wholesaling wrong. And though wholetailing and wholesaling might sound similar they are very different strategies. Deciding to wholetail a deal might end up saving you some serious time and money. Let's get into it.

Wholetailing & Note Investing

The best definition for a note deal worth wholetailing is an asset that isn't busted up enough to wholesale, but isn't nice enough - or rehabbed enough - for a retail sale. When it comes to NPNs it's likely that many of the homes, even owner occupied homes, will have a decent amount of deferred maintenance issues, or outright problems.

Some of these issues are worth getting fixed, some might even be worth doing a full rehab on - there's no question about that. We've talked extensively on the show about deals we've done full rehabs on. Recently, we've also been discussing some of the major issues that can arise from rehabbing from afar.

A solution like wholetailing brings new light to a deal that might look like a time and money pit. These are the classic handyman specials you see advertised. And though wholetailing a deal will almost always bring in less money, it's worth evaluating exactly what you're missing out on. One area many people forget to appropriately allocate resources towards is holding cost - and for that matter speed. Often times just exiting a deal a few months earlier than you would've otherwise can turn the tide on what is quickly becoming a tough ROI situation.

Hardwiring Happiness

"By taking just a few extra seconds to stay with a positive experience—even the comfort in a single breath—you’ll help turn a passing mental state into lasting neural structure." This is a direct quote from the book Hardwiring Happiness. During the Distressed Mortgage Expo this past weekend I had the opportunity to meet a fantastic listener, Steve. 

When we had time to chat Steve didn't want to talk real estate. He didn't want to talk note investing. He wanted to talk about our show with Dr. Dan Wurzelmann. It was our episode on how to handle overwhelm in real estate. More specifically it was our episode on mindfulness, meditation and mental health. There aren't too many real estate groups, YouTube channels, or podcasts willing to broach a topic like that, but we did. And Steve wanted to commend us for it. 

However, more to the point, he wanted to talk to me personally. "You breathe from your mouth when you begin to struggle, don't you?" "Don't take even a second to accept gratitude in, do you?" The questions came fast, and they were as gentle as they were sharp. He cut right through me.

Listen to this week's episode to hear how the full conversation went.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:
  • Wholetailing In The Note Investing Space
  • Why And How Wholetailing Could Save One Of Your Deals
  • What Chase Thought Of The Distressed Mortgage Expo
  • One Of The Most Interesting Conversations We've Ever Had At A Conference
  • A Great New Book Recommendation
  • And much more!
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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Sep 20 2017

41mins

Play

138: Note Investing Insurance

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Note investing insurance can present some murky waters for a new - and experienced - investor to wade through. That's why we're talking with one of our favorite insurance service providers on this week's show. We've also had a ton of requests for this topic with all the hurricanes, storms and natural disaster happening in many states that we all invest in.

Note Investing Insurance

Mel Babtkis from Ross Diversified, joins us on today's show to talk all about the note investing insurance you need for your business. One of the major reasons I like the guys over at RDIS, is because they are note investors too. They understand the issue we encounter in the business, and helps us get the right coverage for numerous different scenarios. 

Some of the items Mel touches base on are force placed insurance, CFPB compliance, how to make sure you're protected on an asset by playing FBI agent, and so much more. On the topic of force placed insurance, he covers all the CFPB lets for staying in compliance. This has led to an interesting conversation in our office. We've been talking about the systems we have in place to make sure those letters go out, not only in a timely fashion, but at all.

We've, since the recording, had a conversation with the guys over at RDIS - specifically Mel's brother Ed - and they said they'd be willing to give us the boiler plate letters to send out to the borrowers; as well as, giving us the exact timelines for when those letters need to go out. We'll be including those letters in the doc section of our upcoming training.

How Much Insurance Do I Need

Another main competent to understand regarding your insurance coverage is, how much do I need? This was a question it took me a few deals to get right, and Mel gives a solid breakdown during the show.

Insurance is always tied to the value of the structure. When it comes to insurance a 1,000 square foot home, at $10 a square foot. So, you've got an asset with a value of $100,000. Let's say the note is going to cost you $50,000 to acquire. So, how much can you insure? The $100,000 value of the home or your $50,000 stake in the home?

Well, the answer is both! You can invest up to $100,000 because that is what the home is worth. However, you might be in a position where you don't want the increased premiums, and you're only interested in insuring your interest in the property at $50,000. Both are options you have when choosing how to insure the asset.

Mel goes on into more detail around minute 16 of the show! Definitely spend some time understanding this aspect of the business.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:
  • How Much Insurance Do I Need On This Asset
  • How To Stay CFPB Compliant With Regards To Insuring Your Assets
  • What To Do And What You Can Do If You Have Assets In Places Like Florida With 'Named' Storms
  • And much more!
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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Sep 06 2017

46mins

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137: On The Horizon

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Aug 25 2017

11mins

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136: Building An ROI Calculator

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Building an ROI calculator is something every note investor should do. Last week Robby gave David some tough love for not having one done yet - among many other things. So, this week we discuss the process David is going through to build one, and some of the challenges he's encountering.

HUD Home Flip

David recently finished his flip. He put it up on the market just a few days ago in fact. This was one of the items on his list that Robby was asking him about during last week's tough love session. Here are some shots of the flip, in case you wanted to check it out.

I completely forgot to commend David during the show, so I'll take some time and do it here. He didn't know Robby was going to bring up all the items he did last week. I'm sure he was as surprised as I was. However, this didn't lead David to shy away and lick his wounds. He dug in, and went to work. Not only did he get everything done for the flip, he was also up until 3 am working on his ROI calculator.

As David continues to grow his real estate business, specifically into notes, I'm stoked that he's coachable and willing to take action!

Building An ROI Calculator

Robby asked David last week, "You've mentioned needing an ROI calculator before, and that you were working on one. Are you building an ROI calculator?" David said no, he hadn't built one yet. For his part, he didn't give many excuses about it, and said he would get on it. So, over the past few days he's been building an ROI calculator.

David sent his new minted ROI calculator over to me. And, if I'm being honest, it's rough. However, I expected that. Mine was rough for a super long time. The design David has put together is rather interesting. It makes his calculator resemble a tape, which I find interesting.

We cover some of the items you'll want include when building an ROI calculator. The first item you'll need is the UPB, the unpaid principle balance. If you're investing in non performing notes, this should be a given. From there, you'll want to include some valuation metric. Whether this is exclusively valuations from places like Trulia and Zillow, or straight from a realtor, you'll need to have a field for value.

After that, you'll need a field for your bid price. Now, that might now be what you actually get the note for, but you'll want to have that so you can get as accurate a picture you can of the ROI expectations. We discuss more of the items you'll need when building an ROI calculator in the show.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:
  • David Has Finally Starting Building An ROI Calculator
  • We've Got A HUD Home Flip On The Market
  • What You Should Include In Your ROI Calculator
  • And much more!
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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Aug 16 2017

31mins

Play

135: Do You Have An Accountability Partner

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Do you have an accountability partner? I'll be asking you this question again. This is one of the areas I think too few people focus on. After much real estate talk, Robby as a tough love session with David about some of the things happening in his business. We've had these back and forth sessions before, but this is David's first one. We want to see him win with his business. So, we breakdown some accountability for him.

The Road Show Never Stops

Thanks to the wonders of the internet the note investing road show never has to stop. We'll be uploading some great videos Robby shot while he was traversing the country. We'll be releasing those videos later this week and early next week.

They are fantastic examples of the simple marketing style videos you can make for your real estate investing business. He's not hard selling in any of them for people to send him capital. He's not holding some check, while he's headed to the bank. He's in front of real assets, we actually own, talking about the portfolio.

And it doesn't matter how great your Photoshop or Canva skills are. When it comes to creating marketing pieces for your business, nothing is better than a case study. However, there is one exception, actually standing out in front of the damn house. It's why we're talked so much about the importance of visiting your assets whenever possible.

Do You Have An Accountability Partner

Sometimes the universe just places situations in front of you. If you're a Note MBA Insider, if you get our Monday emails. this past Monday you received a message of self awareness and accountability. One of the primary reasons for my recent move was to address this issue in my own business. Without any prompting Robby took an opportunity to get after David on where he's been slacking.

Depending on how comfortable you are with confrontation the segment could be tough. However, you've known us long enough, and you've seen Robby and I go after each other enough, to know we do it with the right attitude. We want to see David succeed. We want to see him build the business he claims to want to build.

And doing things like that can require outside help. So, do you have an accountability partner? It might be that missing link to achieving what you're after in your life and business.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:
  • An Update on The Atlanta Fire Property
  • Follow-up From Last Week's Mid-Year Goals & Routine Episode
  • We Almost Had Another Borrower Call In
  • Robby Gives David Some Tough Love Accountability Feedback
  • We've Got Road Trip Videos Headed Your Way
  • And much more!
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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Aug 09 2017

44mins

Play

134: Mid-Year Goals and Routines

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Mid-year goals and routines have been top of mind for us these past few weeks. Mid-year goals for obvious reasons, we've done a mid-year goal review show every year since 2015. However, the topic of routines, though something we've definitely covered before, isn't something we've talked about like this before.

Mid-Year Goals and Routines

Today's show format is a bit different. We wanted to have all three of us on to talk about this topic, but it just couldn't happen. So, we've got Robby kicking us off with his thoughts on where he's at for his mid-year goals and routines. And, if I'm being honest, when he sent over the audio, it wasn't what I was expecting.

This year has seemed like a runaway train for me. Though I've accomplished a many of my goals, some of the important ones have been incredibly elusive. It wasn't until I listened to Robby's take on his year that it hit me as to why everything has seemed so haphazard.

Because it has been haphazard!

He brought me some wonderful insight into where he's been with his lack of routine. And our unwittingly mirrored situation was refreshing to hear. Not in an entirely misery love company kind of way, but it's helpful to know that other people have similar struggles as you. And it can be empowering to hear about their situation, and how they are getting on with improvement. 

Your Life in Weeks

An article written a few years ago has stuck with me in a way many books haven't even managed. It's called Your Life in Weeks, and I talked about the chart presented in this article in the show.

Basically, if you made a grid of 52 circles by 90 circles you'd have a 90 year life represented as simplistically as possible. It's an interested graph to look at, however, it becomes very unnerving - very quickly.

You look up and down at the axes and find where you sit on the chart - and you marvel. You're all at once taken with all the time that has passed, and all the time that's left. Depending how old you are all in the context of that last sentence is going to be very different.

Here's an example of that chart, but I'd recemmond you still take time to go check out the article:

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

 

Listen & Watch this Week’s Show to Learn:
  • Where We're At With Mid-Year Goals
  • How Things Can Easily Go Off The Rails Without Routine
  • Your Life In Weeks
  • One of Chase's Favorite Blogs To Read On Line
  • Is There A Survivorship Bias With Written Goals
  • And much more!
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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Aug 04 2017

47mins

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133: Supreme Court Adopts New Bankruptcy Rules

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Supreme court adopts new bankruptcy rules that could affect our entire industry.. or not. No, they probably will. Though it can be hard sometimes to parse out all the doom and gloom messaging from many different news outlets. Bankruptcy itself isn't going away, so that isn't the major change. What we've been served with, however, is a new set of rules to play by. We talk about some of them in this week's show.

Supreme Court Adopts New Bankruptcy Rules

Finally, after several years of debate, major changes have been approved that will have a profound impact on consumer bankruptcy cases.  On April 27, 2017, the Supreme Court of the United States, through Chief Justice John Roberts, submitted to Congress amendments to the Federal Rules of Bankruptcy Procedure which set forth extensive changes dealing with forms and filing of claims.  The proposed changes will take effect December 1, 2017 and will significantly change how creditors should approach consumer bankruptcy cases (Chapter's 7, 12 and 13) and will require crucial adjustments to conform to the shortened timelines for creditors to take action, particularly in Chapter 13 cases.  

The most noteworthy changes are as follows:

Rule 2002: Notice to Creditors

The amendments to this Rule now require that creditors are to be provided at least 21 days' notice of the time fixed for filing an objection to confirmation of a Chapter 13 plan and be provided at least 28 days' notice of the confirmation hearing in a Chapter 13 case.  Neither of these notice provisions existed prior to the proposed rule change and each provides creditors with advance notice for the date of the scheduled confirmation hearing and the deadline for filing an objection.

Rule 3002: Filing of Proof of Claim

The amendments to this Rule may have the biggest impact on creditors largely due to the shortened deadlines for filing claims and the requirement that all creditors—including secured creditors—must file proofs of claim within 70 days of the filing date of a Chapter 7, 12 or 13 case or within 70 days of the date of conversion to a Chapter 12 or 13 for the claim to be deemed allowed.  The new Rule does add a provision that allows a creditor the opportunity for an extension of time of up to 60 days to file a proof of claim upon motion and order if the creditor can establish that it did not have a reasonable time to file a proof of claim because the debtor failed to timely file the list of creditors and addresses or because the notice was mailed to the creditor at a foreign address. The Rule does clarify that a lien that secured a claim is not void should the creditor fail to file a proof of claim.

There are a lot more notable changes, you can see a few more here.

Shrinking, Aging Skilled Labor Force

This is easily one of the best articles I've read on Bigger Pockets in the past year - if not ever. It's a well researched piece about the aging skilled labor force in America. Those blue collar jobs many young people no longer care to do.

The author begins the article with a great story about start from the bottom - insert Drake joke here. And weaves that into a statistic laden romp through our future. A future rife with higher prices on everything from homes to consumer goods. All because no one wants to do the hard blue collar work anymore.

And truthfully, I'm not entirely sure no one wants to do it. Personally, I think we just haven't communicated all the benefits of these jobs to would-be job holders. I'd love to hear your feedback on this topic, and the entire show in general.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:
  • Note Investing Due Diligence
  • Where To Go To Check On Foreclosure Status, Other Than The Attorney
  • Trust, But Verify
  • Techniques To Manage Shitty Days or Weeks
  • And much more!
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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Jul 26 2017

46mins

Play

132: Note Investing Due Diligence And Crappy Weeks

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Note investing due diligence has been a huge focus for us recently. With the addition of David to the team, it's been important for us to get him on top of his due diligence game. This is where you have the chance to make or break the profitability of your business. It ins't a cliched saying for no reason, "you make your money on the buy, no the sell."

Due Diligence Pro Updates

For those fantastic listeners that use Due Diligence Pro there has been some updates to the app. If you use the software on Chrome, it'll update automatically. If you're a Safari user, you'll need to log back into the website and get the updated app.

We received an email from a user of the app, and he mentioned wanting to see Wikipedia added to the list of sites used in the app. I've never thought to use Wikipedia for due diligence. So, I went a few days using it as I reviewed some assets this past week. The best I could figure was two different uses for Wikipedia.

One would be for demographic data, and the second would be for isolating potential up and coming markets. For demographic data I use http://usa.com.

Either way, this needs to be one of the next additions to Due Diligence Pro.

Note Investing Due Diligence

We continue this discussion of due diligence by reviewing some specific note investing due diligence items. We've been analyzing our portfolio to see if there is any deals we can move.

One of those deals is currently going through foreclosure, and we needed an update on the taxes. So, I tasked David with going about getting an update on the foreclosure situation. To do this he needed to go through the clerk of courts to get the records of what has happened with the proceedings.

After getting that information, we need to verify the details on the taxes. Using DD Pro we pulled the tax data that the county was reporting online. However, one of the ethos of the show is trust but verify. With that in mind, we called the the county to verify the taxes.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:
  • Note Investing Due Diligence
  • Where To Go To Check On Foreclosure Status, Other Than The Attorney
  • Trust, But Verify
  • Techniques To Manage Shitty Days or Weeks
  • And much more!
Featured on the Show: Listening Options:

Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Jul 19 2017

42mins

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131: Note Investing Road Trips

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Note investing road trips can be a vital component to a thriving investing business. Or at least that's what the travel loving Robert Woods and David Glinkski keep telling me. While we took off the week last week for the July 4th holiday. Woods and Glinski were traversing the Midwest in search of real estate deals.

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Note Investing Road Trips

Over the July 4th holiday Robby and David did a 6 state note investing road trip. They drove through Florida, Georgia, Kentucky, Tennessee, Indiana and Ohio. This road trip took them by numerous assets that we own, or have acquired with JV investors. And assets that are on active tapes.

Only one home on this particular trip was rough, and according to David many of the assets they saw were worth taking a look at as investments.

As far as David is concerned every investor needs to make road tripping part of their business. Getting out and really putting your eyes on some assets can help you recognize some home run areas around the country. And if you're picking just a few markets or pockets to invest in, it makes total sense to familiarize yourself with many of these areas.

In fact, they made right party contact with one of the home owners on a deal Robby invested in. And she's ready to start making payments, and is glad to have someone to talk to on the other side.

Orlando Note Meetup

We've got a Note MBA Meetup group in Orlando. If you're in the Orlando area and want to connect with other note investors, check it out.

David had a meet up with this group a few days ago, and aside from the general success of the event, many people posed some great questions. The first topic David mentioned that was covered was pricing. This is something we've covered on the show before, but it bares repeating.

We have the ability to control market forces with our dollar, no question. However, if every seller from here to Seattle wants to move their NPN assets for 58 cents on the dollar, your 50 cent on the dollar model isn't going to work. It might eventually get back down to that level, but until then you're going to either need to adjust your model, or figure something else out. Just because you think the asset prices are too doesn't matter. What matters is your ability to adapt to the changing market environment.

We also cover questions about being licensed in Georgia, and how to talk to real estate agents regarding potentially rougher parts of town.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:
  • The Orlando Note MBA Meetup
  • Is A License Required in GA
  • Are Assets Currently Priced Too High
  • Why You Need To Consider Note Investing Road Trips
  • And much more!
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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Jul 12 2017

47mins

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130: Reviewing Your First Note Investing Deals

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Reviewing your first note investing deals can be a daunting task. You finally get a tape in, you load up Due Diligence Pro, and you get down to business. Before you know it, you've isolated a few potential deals, then what?

If you're like some of the folks that send us emails, or our very own David Glinkski, you might have to overcome that moment of fear. Is my team in this market set up? Do I believe the BPO? Can I trust my ROI calculator? Let talk about it in this week's show.

Road Trip Robby

After spending some extensive time out of the country, traveling, working on a movie out in California and many other things. Robby is finally ready to get back to doing his thing in the real estate space.

First off, similar to Fannie Mae selling off a large tranche of deals, we are looking to do the same. These are NPLs that no longer fit into the portfolio we're trying to maintain. If Ohio is a market you've been looking at investing in, or if you're already investing there drop us a line at ask@notemba.com. We'll be looking to offload these deals soon.

As part of this offloading Robby is planning another road trip. We'll be working to bring you some videos and content from Robby out on the road. One of the things that's bringing all this on is a transition towards some higher value notes and development deals.

Fear not is you're still in that lower brand price bracket! Between Chase and David, there will plenty of deal talk in that price range.

Reviewing Your First Note Investing Deals

David spent some time these past few weeks to review a tape. This was his first attempt at doing this on his own. We wanted to be as hands off as possible, however, when he had a question we took the time to answer it.

One of the issues he had to get straight first was his own strike price. The strike price on an asset usually refers to the lowest price a seller is willing to take as a bid. Well, I advised David to come up with his own strike price. What is the lowest ROI he's willing to take a swing at?

From there he was concerned about whether he'd be able to manage an asset outside his comfort zone. Robby mentions a crucial beginner technique of selecting your top 5 markets you want to invest in. This will help you narrow down where to invest, build your team, etc.

David didn't make any bids this go around, but I'm confident he'll pull the trigger soon.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:
  • Robby Is Headed Out For A Road Trip Through Ohio
  • Why David Didn't Pull The Trigger On His First Note Deal
  • How We're Planning to Improve Due Diligence Pro
  • What Are Your Top 5 Markets
  • The Numbers On Our First CFD Deal
  • And much more!
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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Jun 28 2017

40mins

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129: When to Start Looking for JV Investors

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When to start looking for JV investors? It's a question that has come up regularly in the Note MBA inbox. So, we decide to tackle this topic on today's show. We also cover Nevada as a super lien state, using your reserves to invest in deals, we take our first call-in question, and more. It's a freaking jam packed episode!

If you dug the call-in segment let us know. We can potentially work out a better system for taking the calls, and bring more of that kind of content to the show. We absolutely loved it. And an future call-in would need to work on matching Iris' energy - which is gonna be no small feat.

When To Start Looking For JV Investors

There are numerous angles that need to be addressed when you ask this question. One of the first hurdle for many people is fear. When to start looking for JV investors, often time comes down to a person's fear about losing money. And don't kind yourself, as we discussed in last week's show, fear can be an important response to stimuli.

However, fear can also be unnecessarily debilitating. Once you've run the numbers, and you're as sure as you can possibly be expected to be that they are accurate, then it's time to move forward.

If you have no desire to expand your business past your personal wealth, or family money, then this might not be something that will ever come up for you. However, it's worth noting that for people like Warren Buffett almost their entire wealth has been derived from using outside capital.

Only you'll know when it's time, but I'd say error on the side of sooner rather than later. And make sure that the first deal is one that has a ton of room. And be ready to make mistakes.

Super Lien & Deficiency Judgements

One of the best parts about doing this show is getting to talk with a wide variety of investors from all over the country. Mostly those conversations happen over email or on Facebook - until we make it out to an event and meet everyone face to face. Today we decided to change that up a bit, and we took our first call-in question from an investor.

Now, if you want to get technical this was a call-out, but let's not argue over semantics. Either way, it was an awesome opportunity to talk with an investor that wanted some guidance on an issue out in Nevada. She wanted some clarification on our exepeirnce with deficiency judgments and super lien states.

One interesting part about this deal we discussed was the fact that not long ago we discussed some talk of Nevada no longer being a super lien state. So, we'll need to have an attorney from NV on the show to fully clarify, however, it might no matter on this particular deal because there might be some grandfather. That's a big maybe though.

All of this is because, as the investor notes, all the super lien, HOA foreclosure hoopla has become more and more convoluted as time has passed.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com.

Listen & Watch this Week’s Show to Learn:
  • When to start looking for JV investors
  • Why It's Important Not To Use ALL Your Money For Investments
  • What's Your Number
  • What's A Super Lien State And Why It Matters
  • Can An HOA Foreclose On Your Deal
  • And much more!
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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby

Jun 21 2017

52mins

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iTunes Ratings

142 Ratings
Average Ratings
133
5
2
0
2

Great Podcast

By JackButala - May 11 2016
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Fantastic Podcast. Informative, interesting and entertaining. Five Stars.

Entertaining and Educational

By Bnhugs - Feb 20 2016
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Fun way to learn about a very technical way to invest in real estate.