What Are Current Note Prices & Market Trends? | Real Estate Notes Show

[Music] [Music] what's up guys dave putz here from jkp holdings alongside me as always nathan turner hope everyone is doing well on this friday afternoon or morning time for you guys but uh i'm glad we got to connect so before we jump in here and introduce our paper stack uh guess nathan how was uh things going this week for you what's going new with you good good just got closing documents for property i'm selling another one supposed to be on its way moving ahead oh awesome so it's interesting we're doing a bunch of situations right now we got some offers accepted of course this week uh we sold a ton of loans last week as well um and this topic came out um we got the email right we got the numbers and the hush i started talking um i got phone calls about the numbers and i said nathan we gotta talk paper stack and gotta dive into some things and get the thoughts process and answer some questions um on general scale because right now a lot of people are wondering are notes going up our notes going down pricing what's happening are there more supply is there less supply what's new in that world and what do we expect the next six months or a year so i appreciate guys uh getting their email guys was interesting because we never look at that as a collective wholesome because we're buying anything based on our model other people are basing on their own calculations but they get an idea where the market's at is quite interesting so guys once you do introduce paper stack what you guys do and what the platform's all about sure my name is rick allen i'm one of the founders here this is brett burkey my other founder paper stack it's an online marketplace i'm sure you've heard of it to buy and sell debt um but it's so much more than just a marketplace we've got um you know it's an automated workflow engine helps you transact a note from the time you buy it uh or you make your offer all the way through the time you're going to close on it um we've had you know i know nathan's uh been on there several times trading on the on the platform so we appreciate you guys having us also yeah i don't think i got that email or if i did i deleted it without looking at it so first time checking out the number so i'm i'm excited to see what you guys are the one you're the one i don't know so one thing we want to get we learned about the numbers are they for most people who aren't familiar we have non-performing numbers we have performing numbers uh we have firsts we have seconds what other kind of assets do you guys have listed on there um i know you guys who do cfds what are the different categories of assets available you got mortgages you got a land notes uh so there's cfds but you know like cfds peter trust so that's pretty much it anything that's we focus predominantly it's going to be single-family residential um you know you have some mobile home stuff on there but predominantly it's you know i'd say 75 percent of the assets on there are going to be single family mortgage or due to trust on that platform um first and second position it's important that we do have first and second position on there um but that's yeah that's i mean that's that's sort of our niche right now okay and and you guys got going in cfds which i was happy to see yeah we had some help nathan right remember that some conversations early on where i deal with a bunch of those so that was i'm glad that you're into that now and that's been helpful yeah you helped us go global too because at that time that's when we did you're like hey i'm trying to create this but it doesn't have a drop down for providence is it well i never thought anybody would come here and say change that international we are international now we have israel and um england yeah people are coming kind of from all over to start buying loans on there so that's awesome hopefully we'll start transacting european debt i'm gonna say are you primarily right now only dealing with american debt right now or okay yeah right now we're just focused on the the u.s market we're rolling out an enterprise product um probably by the end of this year which will allow us to start letting institutions use the uh the transaction engine not necessarily the uh the marketplace but more so the the trend they can obviously use our marketplace but to help transact the the you know 20 30 40 million dollar portfolios you know track what's going on with conditions and post closing uh tracking for you know interest payments stuff like that um well shocking stuff it's still still being done through email and spreadsheets so there's a long way to come at the yeah absolutely i think uh like you guys we've had conversations technology is my favorite thing and this idea of you know spreadsheets being passed back and forth is just odd in today's world especially during coburn right um yeah but it still happens it's still available i know our asset list is on our google sheet that we have available and that's so we can constantly keep it updated right this idea that we sent a spreadsheet out and three days later you get emails saying hey which assets are still available it's just old-fashioned i don't unders i don't get it but whatever it is it is so with you guys for your assets you guys have a ton of people looking to buy you have a number of sellers and i think what's interesting about you guys different from a lot of services out there is you actually share who the seller is so if i had a relationship with that seller in the past i don't have to deal with that person if i choose not to or if i like that person a lot i'll look at their assets a little differently so that's pretty cool you know in our system our assets we have available i don't share with the seller is because of my structures you guys i'm not my my business model is not just to do loan transferring it's just a side business that we have that we handle but i think that perk is awesome and i i was checking it out that that ability to know who i'm dealing with is quite interesting yeah you know when we set out to uh uh for to develop paper stack one of the biggest things we wanted to bring was transparency to the market right we wanted to make things very transparent and then make things very secure and transparency and security they kind of go hand in hand um so it's you know people have asked us are you worried about people doing business outside the platform of course it's something you think about but when you see the same two people who are doing transactions and they've done 25 transactions on the platform it's like clearly they're they like it's more than just the marketplace there's an efficiency portion to that that people like and um honestly a lot of people are are using it just for the digital audit trail because everything happens and there's a digital time stamp and if you ever have to get sued or you're going to sue somebody it's nice knowing that everything is right there in a night nice neat little box it protects you it protects your other party so it's uh it's really worked out yeah it's the idea of other big differences yeah i think like the idea of you know you know the watch my son when i was watching the whole ray kroc thing right you can make an exchange of notes but then there's the the actual process is what people enjoy right that process is easy and simple that you can go buy notes anywhere else but the process is what you guys bring to the table which is interesting so yeah i know that it's good it's especially helpful i think it's especially helpful for people um i think especially for people that are just getting started where or they don't know the process they don't know how to like what comes next so we've signed a purchase agreement great now what uh and so that's a huge huge help for people to know okay so and it's very much spelled out on your site is now this and the buyer does this the seller does this and it walks them through exactly what the next steps are funny you say that we actually had someone two two interesting conversations at one of the last conferences we went to years ago now it seems like um someone that was a first-time buyer never bought a note before he came up to me said look i think to do this he's like i i got kind of scared when i finally figured out who was behind the name of the company because it wasn't he didn't know the guys he knew the guy by the name not the company name he's like i knew he was big and he's like i buddy said i knew as long as i just kept checking the boxes i would be able to close the deal and he did and then it was another person that actually is part of a hedge fund uh you know they're large and they put stuff on there and he's like man i love this it's like i'm able to get a higher price for you know asset because the very end retail guy will pay a little bit more than some other people and i'm able to make more money yeah so i think it goes both ways i think you'll see some higher some lower something yeah it just matters you know sometimes like that's interesting yeah yeah but that that outlined process is really helpful and that that helps just everything move you know smoothly and easily all the way through awesome so i wanted to get into the numbers right um so some questions that came up with the numbers and stuff like that and for those who don't know we're starting an investment community that we're going to be meeting and these numbers are kind of an idea to look at right what do you want to get into do you want to get to notes do you not want to get the notes so the numbers itself give you an idea what you should be looking at and what you should should bring up so i'm going to see if i can carefully bring up the notes um in a nice shared window so we can kind of look at them uh okay bring it up make it easier for everyone can we all see that yeah perfect cool awesome so let's break this down right we have the idea of investing into balance for those who are not familiar that's the upb or uh on paper legal unpaid balance of the loan right so we're seeing the fact that it's showing here um that a performing first is selling at 76 of the mpb right as a seller that's awesome information right um and there's some interesting things there so nathan now you haven't had a chance to look at this so i'll slow down make sure you get a chance look at it so we have the first position second and second positions here performing and non-performing and i tried pulling our internal numbers of things we sold um i just ran out of time to be honest with you uh but we were oddly enough as as much as i did not know if the numbers were equal we were close too which was surprising to me um so nathan when you see this number what's your first thoughts here uh performing first in a non-performing first being 11 points difference that's really interesting um that's really close i would have thought there would have been a bigger spread there uh the other thing that's interesting just off the bat is is um 17 lower than previous is that then a year ago yes that's seven yes wow that's interesting i'm not i can't like right quickly i can't really come up with a reason of why the price would be 17 lower than a year ago i i would have said the opposite i would have said the opposite too which was kind of strange to us when we looked at it because people are paying seems like they're paying more for non-performing right now just because how hot the real estate market is everybody's anxious to to get that real estate back um we were kind of shocked when we saw the actual numbers uh this is for 2020 so i i don't know if how much of these numbers were pulled down from that sort of q2 covid dip um because we saw i saw people for well i guess april really now it was may june and july i saw i saw people who had hard money selling off hard money loans at 80 cents of the dollar so there was sort of this yeah there was sort of this holy cow people are selling off just trying to recapitalize uh because they stopped you know a lot of those guys were doing they were floating the uh you know float in the escrow as far as like money that they were using to uh to repair the property stuff like that so it that was interesting that's the only thing i can sort of look at and say that might attribute to it was just that q2 started q3 dip in cobid where things were kind of really still shaky i think towards the end of the summer and definitely into the fall people sort of were you know they're comfortable this is just how we're living for a while right right so what i'm saying too is that non-performing number is is weird to me right um to see a non-performing note sell for 65 of upb there's more factors of course to go into it but that one part is amazing right um unless that you peop the interest rates of 10 right i can understand that point of view but it's interesting to see the fact that uh even performing seconds are selling cheaper than non-performing first on average here percentage of ppb yeah until you start drilling into these things and start looking at the data you're like man i had you would have no idea you would you would say there's no way yeah yeah really interesting and then the investment to value that's interesting as well is that just a function of of equity and inflation i think that's a function yeah that's what i attributed that to it's like that's just a function of equity yeah and slightly lower the slightly lower sales price you know we've got um our sales prices or they dropped a little bit but you know this is certainly a function of equity yeah investment to values and the market's been nuts yeah i mean looking at the fact that performing seconds there's i mean it's hard to guide gage that right because equidios and non-equity deals there are a lot of other factors but to break all the factories down is probably impossible but not performing second selling three percent is crazy and then obviously uh of that property value um to me that shows the fact that these a lot of these things are are equity position situations these are huge equities i think i've you know i'll look at the closed deals as they come through and just kind of get an idea of what's going on and a lot of them a lot of hot markets um we saw a lot i saw a lot of florida i saw a lot of second position in florida and the florida markets you know pretty much statewide of just you know definitely not maybe not in the panhandle but anything you know jacksonville tampa orlando miami you know definitely anything on the coast it's just been it's been crazy stuff is just going up quickly even even now stuff is on the market for one day selling over asking price and it's just you know i'm sure you guys are experiencing some of that you know in some of your localized markets but yeah florida i guess are no income tax people seem to be coming here pretty quickly yeah i just actually i just went into contract on a property in tulsa in oklahoma we had it listed for 105 and it sold now here's the funny thing i had two offers one at 121 and then the second one at 120 with a clause that said they would beat the highest bid by one thousand dollars escalatory addendum i used to use that yeah that's awesome so one for 120 congrats on that yeah it was awesome great so one of the questions we have on facebook one of the questions we have facebook so we're running this on uh zoom but we're live on facebook through zoom was the question um you know can they set up a saved search kind of thing of when an asset is added uh elijah so elijah yes you can set up what they call a save search so that saved search will notify them when an asset in their search is brought to the system is that correct yes yes that is correct you can set it up there um get it's very robust how detailed you can get as far as um your search parameters and then yeah you'll get notified when assets become available so it's you know i say it's working while you sleep it's the efficiency tool okay it's also great for sellers too yeah when there's a new seller come on they think that maybe they're gonna list something and then they might need a couple days to have people look at it but as soon as that thing hits live it automatically goes out and they're getting offers right away yeah we got stuff go like right on i had a guy he did uh i don't understand how it worked but he had a bunch of land in colorado and he said you think it will sell and i was like that i don't i don't know i looked at it looked like just down the middle of nowhere and he called me back there today he's like man i'm already into closing i was like really i'm dead but i've had that too where i've listed stuff and within hours i'm getting uh questions at the very least offers in some cases so we're looking at sales prices here it it what we're seeing here for the newer investors is probably very attractive right so we're seeing the fact that most your average purchase prices are below 50.

you know that that pillar thing even below 30 in most east regions um is quite interesting yes these are um a little they could be a little missing you know we do have some tools that go out some micro pools and we're doing some stuff that's true yeah so you know we do we do sell some pools that are 500 000 but for the most part yeah the single-priced assets that are available this is i mean this is what you're seeing and it is attractive for the newer investor coming in there but we do have you know it's crazy to even look at a first position that sold for two thousand dollars yeah oh performing i mean how do you not have the yield on that one i mean it's amazing um for that to happen so i got a question for you guys that uh i was listing um alone with you a month or so ago and um i'd just like to hear the rationale because i'm i'm sure you've talked about it but i have one that i wanted to list that's sub-performing where she pays sometimes and then didn't pay and then she would catch up and then and it was just kind of off and on hit and miss but there wasn't a category for sub-performing so i ended up listing it as yes it's funny you mention that because um that's something that i just listed three or four assets yesterday and i put on there and i was like sub performing and then in the description i was like look they're paying they're usually rolling 30 rolling 45 somewhere like that they get caught up so i think we're probably gonna add a sub performing category on there okay the thing about it is is a lot of the way we designed the system was we thought that all the servicers would just love to integrate with paper stack and that they'd just be chomping at the bit and it's been a little bit of a task to get them to do that but it's it's hard-coded in there to where you know our servicer sends a nightly data dump so if you look at all of our assets they're updated every night i don't have to do anything and it comes right from our servicer whether it's performing or not well you guys might know that servicers will call it performing as long as they're not 90 days past due yeah right right and so our system is reading it right off our tape um and so i've actually have to put it in the title if it's sub-performing or not just because it's getting updated nightly and i could change it today to sub-performing or non-performing but as soon as it gets updated at night it's going to go right back to performing so i just write it in the title in the description got it got it yeah i ended up listing it as non-performing and then i got all these questions and i said well but the next pay date is like a month a month behind so what do you mean it's not performing well sub-performing but i'd rather err on the side of caution so that's what you got so one of the requests that josh scott had was that adding partials to the platform yes partials so it's like man we're up against this whole like bandwidth thing we have people can still conduct a partial on there we've had people buy and sell partials on there right um it's but they're just they're putting that language in there we don't have the the contracts or anything like that built in you could use your own custom documents um but we don't have a way to sort of market it in the marketplace and label it yet um we didn't have the idea of being able to turn something into a partial after you actually close the deal so if you bought it you could turn right back around yeah it'd be just resell it as a partial it's a part of it it's something that we're it's listen it's there's a ticket out there for it by a ticket i mean it's in the yeah it's it's in the pipeline but we're you know rushing and sprinting to getting enterprise done it like it keeps getting bumped down because that's for paper stack that's a huge a huge goal of ours but it's coming coming definitely these are really interesting numbers just to see what um you know i mean and these aren't made up numbers this is the stuff that you just took straight from your site so it's interesting to see how the market has changed in the last year it did it has changed a little bit um we did uh did this i think the last time we did this report was 19 right we did a mid year last year no we did a mid year with those direct than we did yeah we did a white paper with notes direct and we took all of our data and aggregated it but it didn't necessarily have all this stuff there we're doing actually a follow-up white paper um shortly just to kind of we did one mid-year we'll do one um on all of last year's data it's different numbers different stuff that we look at we look at more like state specific which states where the biggest sellers um supplement transfer servicing yeah who are the servitors that are being touched the most um that sounds bad being used the most um but yeah you know one of those we're seeing one thing i want to mention though is that with everything going on you know a lot of people are asking about supply someone mentioned the fact that supplies low right now are you guys able to see your ebb and flow of how many assets are coming on the platform and going where are you at today versus a year from ago we actually have more to we have more today we did a year ago is that about right i don't know i'd have to look i mean usually it seems like for some weird reason always like in the beginning of the year it's always lower it always seems to be pretty hot around like june and july for some reason i don't know why like last year i noticed that there's like 300 something notes there at one point yeah but that was that was later like know july or something like that but uh i don't know what yeah it's i mean what do you guys think as far as um are you looking at the gecko yeah i'm looking here as as far as inventory i'm curious to see what you're seeing on your end good nathan i i haven't seen a shortage i you know compared to three years ago five years ago sure there's less out there but i haven't really seen a shortage uh a big enough shortage to make me worry there's been plenty of notes available um and i i you know i i foresee many more coming available in the next uh 12 to 18 months yeah so i just pulled up our stuff we're up about 40 percent okay as far as the no yeah so it's it definitely the inventory is there one of the things is actually kind of encouraging for us is we're seeing we're seeing larger funds find paper stacks like before we were having um funds who were you know where people who were managing you know their families hundred thousand or two hundred thousand dollars now we've got some funds on the platform that are um you know hundred million dollar funds 250 million dollars under management so that number is starting to go up and the great thing is is they're not only selling on the platform they're buying on the platform so it's really helping out buyers and sellers um which is which is great and so i think the longer we go the longer paper stacks around the more of that you're going to see um and certainly once we tap into the enterprise market you'll see that more as just a liquidation strategy and it should make more inventory available to um the retail investor the smaller the smaller guys that's great i know recently for us that the last month or so we've seen a lot more inventory than we did in probably fourth and third quarter of 2020 not sure why even performers are selling we got a tape of you know 200 performers just recently uh which in 2020 we didn't see larger tapes um they just weren't around as much as they were in the past so for us supply has gone up just first quarter and you know i understand why i sell non-performers people are just kind of stuck and just want to get out so i'm curious to see what happens and you know where it goes because i think right now cfds and land contracts even our finance situations are getting interesting because of that um people diving into different sectors yeah we're you know we see a lot of seller finance stuff um we've got people out there who are doing some active marketing um they're turning quite a few quite a few notes over each month and you know we're even we're doing it a little bit but there's yeah there's the seller finance market is very interesting right now um largely because you can get some really good deals in the seller finance market yes you can get really if you know how to market and you know how to get in touch with people wow there are some smoking deals out there um on some really great assets so yeah it's interesting those are finding their way onto the platform right now which we're certainly happy about yeah that's cool so i know for me uh the platform has been interesting um we have our own little exchange and they're just so busy with everything going on we're just not diving into it but i did test out some things um and i have no problem giving feedback but i think overall the setup is really really nice from the old fci exchange to this uh is night and day so it's uh it's good to see that so with regards to sellers are you guys you know the difficult part of doing these kind of exchanges i think you guys have fixed i want to say besides the the automation is dealing with servicers right say we list an asset and to get that updated data is quickly often a difficult task yeah it is yeah that's right so we've uh like i said we have one servicer who sn i'll talk sn they still send if you're servicing with them they'll send nightly data dunks to paper stack um and we're tying in with fci fci has got a newly released api yep that's that's gonna be fantastic and that's like for us that's security that's like that's what we want that's the golden prize it's like look let's let the computers do the work let's let them talk we're a technology company if you have an api we're happy to hook up with you so we're definitely open to working with servicers and having those integrations but starting out man it was a beast to try to get people to even talk to us we would go and people would be like who are you paper stack who yeah and then i remember it was actually in 19 our last one in in dallas when we were at um speeds thing no note expo like we walked in and there was people weren't talking to us the demo went out and then people were like oh we need to talk and integrate so it's been it's been a long road to hoe but we finally are i think getting there that's great so what do you expect to come in 2021 what are some things are coming out that you guys are able to share at this time some huge things are um a la carte closings i think that's that's coming out very soon probably within the next 60 days which is basically you can order a closing through paper stack you don't have to be in the marketplace um drastically reduced fees like just a flat fee 200 closing on an asset um the ability to close it inside of a um like a white label so we own noteclosings.com as well and so you'll be able to order up a closing if you're brokering a deal you don't want them to know about paper stack you can order a closing if you run if you have your own marketplace or run your own trade desk and you're like look i just want to use the workflow i don't want the marketplace i don't want to pay two points i just want to pay a flat fee 200 bucks an asset for the workflow um that is coming and so i think that's going to be really big integration with casey wilson oh yeah is our um that's that's awesome they're going to be handling all doc prep um so explain what that is for those who don't know what what casey wilson does what's what do they do for those who don't know oh you're impressed whether people might [Music] wilson is unbelievable they are truly um they're unbelievable and they handle large institutional trades of you know thousands of loans at a time and they deal with the one-off mom and pop guys so they'll handle casey wilson has a bunch of different services they offer um document preparation so if they if you need them to prepare assignments lounges if you need them to prepare quick claim deeds um forfeiture of bond they can prepare if you're doing a contract for deed and you're taking that back they also do stuff like imaging or they'll image all your collateral files and they'll host them in a cloud basically dropbox and they'll do document storage there's so much stuff that they cover i couldn't possibly do it it's really it's like a whole hour to go in detail about it yeah we're integrating with them um they're gonna be a vendor on our platform to where all of our doc prep will be handled by them and will make it easy for people to start ordering up due diligence from them so maybe they want to order a complete collateral audit where they go through and you maybe you're a first time note buyer and you don't want to put that pressure on yourself of running the risk of missing something casey will a great place to start so that's good our due diligence portal coming up in the middle of the year you'll be able to start ordering your bpos o and es not from vendors that we're choosing but for vendors if you know we'll have multiple vendors on there so you can choose who you want your data to come from cool so lots of stuff like that and then the enterprise transaction is really that big one if uh hopefully by the end of the year which that's that'll be huge for us very cool casey wilson i know what i use them for mainly is chasing documents so if there's something missing in the chain three or four transfers ago i'm missing an assignment or something like that then i'll call them up and they they work their magic and they oftentimes i mean i've had it turn around in 24 hours where i've got the document that i was missing because they know people right they've been doing it for i think since is it since the 80s or 90s it's been they've been doing it for a while yeah and so they've just got all the relationships yeah that's amazing oh that's really great so guys what do you for first time note investor to get started with you guys what do they need to get going because technology is great for optimization but also secure so registration or anything like that you guys charge anything nope it's free to get on the platform it's free to register um if you're going to do if you're be a seller there is a seller on boarding we just have to go through and approve you make sure you know you're selling your assets stuff like that but seller onboarding is pretty quick with brett and then you know you can register for an account today it's free and start looking at assets um it's it's an open platform yeah cool and at the end of it um again not too much into it but but uh so the way you guys make money is is when a transaction completes then you charge a fee on that but let me just say it's not a lot it's not a huge crazy fee that's going to kill the deal no and it's actually going down so hopefully all right we're working on yeah we're working on tiered pricing to to make everything just a little just a lot better um you know you can check out we can do a demo a live demo would be great with you guys or we can give you a recording of a demo um just to see what actually goes on because we do so much people don't really realize how much the platform does um even at the very end of the transaction when it's time to to do the servicing transfer we kick it off with an email the outgoing servicer the incoming servicer we give them the cutoff date we give them the upb we say here we copy everybody on the email you're the outgoing you're the incoming here's the buyer here's the seller because that's something that honestly that how many times does that get overlooked it can get overlooked a lot and so we just we just started you didn't have to worry about it it just it just happened and that's you know everybody seems to be pretty happy with the platform they love the automation and yeah love to have you guys thank you for coming on there not a problem yeah that's been one of the biggest things is you see a lot of the platforms and i i remember having this conversation with you a couple of years ago where you see a lot of the platforms um but that's the biggest difference is that automation that goes into it and the document prep and all that kind of thing that that a lot of people just especially when you're getting started you have no idea what's involved and there's there's stuff to do yeah well before we end guys i just wanna let everyone know we are having our our investment community first open meeting sunday night so if anyone is looking this is set up like a mastermind so we're going to have uh more higher level to mid-level people that are looking to get together and talk on a weekly and bi-weekly basis um i encourage you guys to check out paper stack um some of the automation i've talked about in the background is awesome um as you guys know i'm all about getting things done quickly and efficiently and correct that process is done right um our assets we have for sale do not have the process they have which is amazing right so you see the prices that are things are selling for some of these prices are awesome if you're looking to sell an asset you can literally buy you know on average 65 for a non-performer that's right right um you know they don't do any kind of education it's strictly there to automate buying and selling notes they also have notary stuff that's electronic notary i mean there's no more that's going to bank things that we did for i don't know how many years having my neighbors sign my notary doc right um it's amazing what what technology's been going on in the fact you guys are pushing that edge even more and more so i thank you guys for doing that stuff uh it's encouraging to see people getting that interest to do it and be willing to take the risk on of automating this process so sometimes people are older kind of nervous about doing the stuff but we'll be talking more about the stuff in the future um if there's any more additional questions feel free to jump in and leave them if not nathan do you have anything else you want to talk about these guys um you guys down in florida you're crazy down there so what do you guys see for uh coveted fallout like what yeah you guys are almost epicenter but what do you see for you know and so i kind of have um covent fallout i'm i we are the epicenter according to everything but i sort of have an inside track that my wife works in the emergency room or as a nurse practice yeah so and it's i don't know i would just say don't believe everything that that splattered across the media um it's not there's not dead people laying around everywhere i mean it's not the apocalypse or anything like that it's really it's not as bad as people say you know it's interesting how you can manipulate numbers and you can say well hospitals are at 110 capacity what's interesting about it is staffing is cut by 60 percent and so there's tons of beds available there's not the staffing there and why is there not the staffing there because they keep people inside and if you keep people inside there's not people coming in the emergency room so you're not generating the revenue so you got to cut the staffing so yeah don't believe what you hear in florida is great it's it's awesome down here um the second that my wife my wife's a pa right assistant system same level as your wife and she works er in urgent care and you're right i was shocked it was i want to say may or june she's like yeah my house was cut in the docks like wait cutting the docks like this and she's yeah the money's not available the patient count at the er is lower than on average what it should be at and she's like you have to cut a job like well what's going on here it's cause surgeries aren't happy because the money really made for hospitals aren't your surgeries so they're cutting all the stuff it's crazy and it's just you hear things and like we've i mean florida's been i would say i don't know you would say freer or maybe not like the least blacks been pretty lacks on as far as you know desantis our governor has been like look we're not shutting down the economy and you look at it you'll be like ah it we're doing okay we're not it's not like our numbers are crazy and so you know i saw the super bowl i saw the super bowl that you know they let it loose for the super bowl because the tampa bucks won and they got you know tampa bay in general and floridians got torched and the the two weeks following the super bowl they reported the lowest numbers since like last year and so it's just yeah it's just you know whatever i don't want to get i won't get into the you know i'm in jersey so in jersey is the complete opposite or underneath now you guys are we're still locked down we're i think we're at 40 restaurants but the problem is they can't go above 50 because the six foot distance they can't like it's still crazy yeah wow what about up there nathan what's canada like we're we're still locked down as well um the thing is for myself i mean i don't go anywhere anyway you know i work from home everything i do is at home so personally it doesn't really affect me but i am very interested to see what it's going to do to the the overall us economy um just to see you know i i expect we're going to see a bunch of stuff coming up available but on the other hand if numbers and everything are over inflated maybe we won't maybe they won't i mean do you guys kind of feel like we're kicking the hand down the road on the foreclosure stuff and like like like we're like you know eight to 12 months from like oh wow there's there's some there's some inventory available yeah because of us i mean there's what 30 of the mortgages are held by privates and you know i learned i have two going on in chicago right now chicago um has been seeing five cases per judge a day on foreclosure via video conference but none of them could be owner occupied yeah so he could couldn't be owner-occupied and and on april 1st they're opening up fully to let it go so i mean i've got two that were at judgment in february of last year and just got just got hit a brick wall and i'm like me too exactly same thing in chicago yeah so it's one of those things where right now i'm like i want to get those back because the proverbial real estate time clock is ticking yeah it's so the weird thing about that and we talked about this one of our uh previous facebook lives is that yeah i know i i know you guys have been involved in that space maybe not right but for as long as we've been around i think though the massive amount of people who are at the upper level has grown the hedge funds that are around now that weren't around 2012 2011 that those people will probably absorb summer loans are out there where it won't trickle down as much as it used to where do you guys see that happening or what not happening so i think kind of what happens is unless they're super niche those sort of birds of the feather flock together like there's always that that 20 of a trade that just doesn't meet the criteria and it drops out it just drops out and if it doesn't meet that guy's criteria the next guy coming down the line is probably not like hey i would love to buy that that's typically not how it works that inventory actually when that falls into the hands of sort of the retail investor it it's like a match made in heaven it's stuff that they can buy it's stuff that meets their cr it meets their criteria and meets their budget and they've got you know they put that personal man hours touch in it so i agree with you i don't think there's no way we'll see what we saw in 10 11 and 12.

it's not the same scale but yeah i do think there's going to be an increase in him i think there's stuff that's going to fall down okay it'll be interesting to see how much and when and what that's going to do to overall supply and demand and all that kind of thing so but yeah there's there's also still those funds out there who like um like kcc who will buy a big huge pool and maybe over capitalize under manpower they're still focused on that velocity model right they only have so many in hours they can throw at something so if you throw them some throw them and offer and they're gonna make four or five grand on it don't be surprised if that that would that those hit the tree yeah you know we talked about two is you know some of the bigger funds we're buying from fannie and freddie those trades are still trickling down from 0.70809 that they're still selling off those assets that they didn't start selling them on june 11.

i think they started like 2015 selling the assets so those assets are still backdated and whatnot so yes i agree to be some kind of flux i just don't know what's gonna happen with the assets um and i think we'll see commercial stuff too oh yeah the commercial stuff like what do you i mean i know here we're downtown and we're at our office downtown office like uh once a week maybe twice a week but just i was walking down the street um i was like man it is there's there's no business people out walking it's friday normally you would be shoulder to shoulder especially you know late lunches stuff like that people you know it's happy hour people are like cutting out early man it's it's just dead and you look around all the spaces it's just it's i know what's going on in new york new york is losing commercial left yeah yeah so i think i'm in jersey and i'm seeing a lot of people move from new york to central jersey because they don't have to commute anymore they're an hour outside the city where they can drive up there if they need to to meet do a meeting real quick but they're moving to central jersey because they can and all these office spaces are just changing over and whoever comes with that technique to have amazon buy the entire world up and use every office space available is they make really good money so i think that the the transition period figuring out is pretty interesting so it is yeah we're doing a series a funding round right now at paper stack and sending out stuff to different different venture capital firms and probably ten percent of them the address is no longer valid from just your uh yeah wow so it's just yeah it's crazy it's nuts well that's an interesting time i'm gonna ask you what what have you learned from a year ago to today that the common seller buyer what does something change with those people is there something you can say well the buyer used to do this now this happens is there anything that's unique that you can off top of your head that that's changed um i think if anything there's the wound of like that three-month dip is still tender and people are still like oh what's what's the next thing that's gonna cause that dip should i be waiting i think there's some people who maybe are sitting on the sidelines like oh they're here us talking about maybe an increase in inventory at eight months and i think to um not to their benefit you know that they're gonna maybe sit on the sidelines i think that's absolutely i just don't think that's the right thing to do you know somebody asked like when's the right time to start buying notes like well always is the right time to start buying notes and you can look at it and say well prices are higher i'm like well real estate prices are through the roof so if you're buying non-performing you're you're just you're riding it or if it's a performing loan it's like well you know if you're buying performing you're kind of you're you're buying the yield right you're what are we what are we talking about here if you're happy with the yield so i think that's the one thing is i think just there's still the little bit like uh should i you know when some people were for sure just like flying through the market some people are a little hesitant um i think that'll change because i think we still have probably another 12 months of like really a really strong market yeah well guys i i for me i learned a lot of people are getting into space for the fact that the same reasons that they're like reo's way too expensive and they're fine in this world of notes similar to what's happened over the years that hey short sales oreos are expensive let me move to the next step and i can buy these notes we're i'm seeing a lot of people move into that specter and land contracts the seller finance world is getting nuts um so i'm curious about getting that process automated that i'm trying to work on my end uh nathan what have you seen with people in the last year obviously prices are up but real estate general's up i think one of the most surprising things to to just about everyone is i remember having these kind of conversations last march and april and may and and the most surprising thing was how many defaults were not happening yes and just everyone was expecting huge number of defaults and their mortgages and payments and things and it just didn't really happen there was some dip but hardly you know we're talking like one or two percent yeah of a whole portfolio so so when we talk about things coming available um from defaulted mortgages i there's i mean there's we can talk about this forever but there there's you know free government money that i helped help prop things up for a while and that's still going on and i think that's certainly a factor um yeah and then we've got moratoriums uh same thing just kind of kicking everything down the road so in a lot of ways i think it's still too early to say exactly uh to to really accurately predict what's gonna happen and and what kind of of fallout we're gonna see um but generally speaking i don't think it'll be as bad as anyone thought the government's helped a lot of that though so i'm curious what happens when that money stops and that fact you're living scot-free right now stands i know i've been posting articles about that that's the big question i think is is so when the free money stops then what yeah yeah yeah for sure so for those who still listening next week me and nathan turner will will be on uh where we have a couple different topics we're discussing we're probably leaning towards bankruptcy talk um so definitely tune in next friday uh for talking on that in the meantime guys i appreciate you guys coming on the numbers are awesome the fact you pull the information out there and share with everyone is really awesome because a lot of people ask that question what should i buy at what what should i where should i go my numbers and this kind of helps them kind of guide them a little bit but even that being said it's 65 with the average but that the range there was huge yeah yeah it's a huge range so we put it on there so people can get that idea it's like look don't get hung up that like i have to be at 65 cents if it's 66 cents 67 it's okay yeah right you'll it all works out so yeah we appreciate it guys thank you for having us on um a lot of fun yeah awesome good to talk to you guys all right guys well i appreciate everyone tuning in we'll talk to everyone soon and uh i hope you have a great weekend everyone thank you thank you.