Making Money From Paper Assets
The Paper Source Note Symposium Day 2
We were back at it again today. After the conference yesterday, I managed to do a fair amount of networking and met some really great investors. I am looking forward to doing some transactions with them in the future.
By far, the highlight of Day 2 for me was being able to meet the creators of www.notemba.com, and the podcast “The Note MBA.” Chad and Rob are great guys, and both down to earth. I originally found their podcast by going down a rabbit hole one day listening to podcasts about my favorite topic, location independent lifestyles. Both these guys got into note investing for the freedom it affords them, and they are living proof you can truly invest in notes from anywhere. Late in the day, they did a podcast live from the event, and I was able to participate in it. Once I get a link to the show, I will add it to the notes. Let’s jump in…
John Schaub-Author of Building Wealth One House At A Time
Millennials even bigger demographic than baby boomers
Building materials and labor costs up 33% since late 90’s
Never bring me an offer, just bring me an opportunity
When tenants start moving out to buy houses, that is a sign of a change (credit markets are getting too loose
If Trump passes 15% pass through, may need to restructure RE holdings (entity)
Everyone should have a business because of the write off opportunity
Have investments to pay for things like boats and planes
Have a Roth IRA and invest conservatively with it
Take your risks on the business side because you can deduct your losses
Leverage low down payments on houses with notes, to increase cashflow
Keep a balanced portfolio of houses and notes
When looking for investors, seek those that already have RE experience
Most deals are made during recessions because of more opportunities
If you have weak notes or tenants, now is the time to sell them
Sandor Lau-How Defaulted 2nd Mortgages Helped Me Survive and Thrive:
Re-read Real Estate Riches (Rich Dad Series)
Invest in discounted, non-performing 2nd’s that are behind performing 1st’s
Discounted RE is exceptional, discounted notes are standard, while 2nds are most discounted
Performing 1sts means borrower most likely has capacity and will
Do due diligence via credit reports and borrower social media accounts
Emotional equity is greater than financial equity
Check out Tapetechs.com and guru.com
Books to read: Paper Profits
Performance Anxiety
Turning Distress into Success
Art of Investing In Distressed 2nds…
compassion is good business- Borrower staying or selling on their own is best scenario
Panel: How To Succeed As A Note Broker:
As a broker you must be fully disclosing up so your relationship with buyer is solid
Better brokers get a lot of info up front- get questionnaire from FNACUSA.com
Be available to go back and find answers
If you don’t know the answer to a question, say so upfront
Don’t just send out deals, reach out to the investor first
Always look to protect the investor, underwrite to protect the invested $
Must master the numbers through the financial calculator
Brownstone Mortgage Capital Corp buys commercial paper…min $100k brownstonebuysloans.com
Look up “loan Loss Reserve”
Seeing the checks or bank verifiable notes gets higher pricing
Keys to success: Discipline, Dedication, and Diversification
Dean Engle: Get ‘Er Done:
Leads: listsource.com
You want to negotiate with the person who got hurt the most (the 2nd lien holder in a foreclosure)
Check out Real Quest Voluntary Lien Report
Excuse to talk to a bank about a specific property looks less like a newbie
“Special assets” banking term for troubled assets
Use listsource.com and Linkedin or google to find ppl that were at a bank in the past to help facilitate deals
Don’t sell…find what you believe in and do that
Read memoirs and bios for self-development
Exercise #1: What would I be most happy doing, if I could do just that? (5 words or less)
Exercise #2: What one thing would or could you do right now so that you could “Be Me” more?
Swami Vivekenada saying…see photo
Andrew Carnegie saying about putting all your eggs in one basket and mind that basket
Print a letter and Fedex to CFO “ Hi I am blank with blank and I have been trying to reach someone for the past 3 weeks about this loan (address). Can you please have someone call me so I can buy this note?”
As mentioned in the Day 1 notes post (click here, if you didn’t read it), my goal is to use these notes to further my study, and create additional content in the future to take a deeper dive into some of these concepts.
Do you have any concepts in particular you would like to see more posts on?