Top 3 Deals and What Attracted Us to Them | Real Estate Notes Show

Episode: 5 28 2021 Top 3 deals and what attracted us to them Dave's Goals and Plans: - Uses a master spreadsheet system with tabs for current loans, rough figures, monthly payments collected, and completed/sold assets - Tracks performance by highlighting REOs sold in light purple and performing loans sold in green for annual review with wife - Avoids New York and New Jersey deals immediately without further consideration due to long foreclosure timelines and past negative experiences - Had two difficult New York loans near Niagara Falls that encountered bankruptcy filing and extended foreclosure periods requiring 1.5+ years - Now has established attorney network in New York and uses proximity to trusted agents and realtors as a decision-making factor for new markets Nathan's Goals and Plans: - Took his birthday light by skipping office until noon and maintaining a light schedule - Experienced difficulty unplugging during vacation but returned to 100+ emails; found team delegation helpful upon return - Maintains similar asset tracking system with dropdown menus to organize assets by status and automatically populate completed deals tab - Emphasizes importance of building external team (agents, attorneys) as equally important as internal team for scaling deals Key Recommendations: - Build and maintain a trusted team of local attorneys and real estate agents in target markets before entering new geographic areas - May pay slightly higher for assets in areas where you have established team relationships rather than pursuing perfect numbers in unfamiliar markets - Keep detailed historical records of all deals with comments on what worked and didn't work for future reference and pattern recognition - Don't permanently quit on deals - revisit sellers on failed bids 1-2 months later as larger pool purchases often fall out - Monitor local weather and conditions for properties in unfamiliar regions (hurricanes in South, winter storms in North) as it impacts property management Topics Discussed: - Criteria for selecting favorite deals versus most powerful deals - State-level filtering strategy and avoiding certain geographic markets - Importance of local market knowledge and established professional networks - Deal tracking and historical analysis systems - Team building and delegation for business scalability - Regional weather considerations for property investment - REO sales challenges in different states sold at auction where's my number shoot i don't have it here i have the profit number so it can kind of extrapolate but anyway my my overall profit net profit was thirteen thousand dollars uh on a 17 000 purchase so the total roi was like 68 so you know pretty pretty good um very you know a happy ending for that one that's where i met that realtor and then that's the guy i continue to work with today in san antonio so that's it's just been a win-win kind of a relationship and it was a good note you know i one of my favorite deals was a deal that i i feel confident about um and i learned a lot about the borrower and it was in it was just outside columbus ohio it wasn't realized i it was a good return wasn't the high return we've had before but it was a really good return and i liked it because a was a condo it was in a condo flex and the values when you're in a concentration you're really good strength of values so when we're in that spot that values to me even if they fluctuate a little bit it was based because the unit being different from another unit it was really really good for that so if you see a condo it's really often a buy good buying because you can really comp it well yeah plus it was next to one of one of the first terms i worked with who i loved still today um and he actually moved on uh and his junior partner actually took over most of the files um right inside columbus ohio um and we had an agent that was um a good agent over there as well that both of us work with and the combination of those three made this deal stick out to me right i had an i don't remember what month it was but but the tape the itself was was two or three months old uh and i knew that because on you don't get this all the time but on this particular tape it had data data date or whatever or yeah the date of deposit yep and it was like two or three months old um and i noticed i noticed that that it was a couple months old and then i saw that this one loan it looked pretty solid it looked like it had been paying pretty solid uh there was a pay history on there but because the data was a couple of months old we were listing it as a non-performing note and i went because just the data just quick formula yep and i and i looked at that and i said i i have a very strong suspicion that it is not non-performing it's actually been performing this whole time and they just haven't updated it wow so i did so i put in my bid here's the numbers on this so uh unpaid balance was 76 000.

uh on uh cmv of 75 so there's really no equity at all a little bit underwater just barely i was at an eight percent interest rate you know the kind of things that i like to see when i'm looking at uh at loans a higher interest rate i picked it up for 35 500 which was good that was that was a good price and that was partially because we did it as a as a group bid i then i sure enough i contacted the borrower and uh found out yes they had been paying so i got the updated pay history from the servicer uh and yet they've been paying the whole time so there's no break there at all so i think i actually sold this one back out to i think it was to first national okay um turned it right back around out to those guys as soon as i could pushed away a little bit not as much as ohio but as you and i began ohio was majority of tapes you know um columbus was huge we love columbus for a long time um you know those kind of things it's like detroit michigan you know that we're more popular we're pulling out of those are you pulling out of areas too a little bit uh like you say ohio's getting tougher um yeah just some of the laws cuyahoga county has gotten a lot tougher yeah coyote county ohio yeah it's long time friends difficult yeah long time frames and foreclosure and the deed yeah and and there was a new law there i don't even remember what it was what doesn't was it insurance or oh no it was a bond the bond ten thousand that's been on the books for a long time so those who don't know there's been a book for a long time there's still enforcement in most counties i think he does if the property is vacant in foreclosure they they require you to put a ten thousand dollar bond up front and they pull they they uh draw down from it for property issues for mo long all stuff and they can use money as they wish yeah to draw down from um yeah if it's vacant and boom and you have to register it you have to register bacon you have to keep no yeah no it's just not just it's tough like imagine cook is just everything about it the county itself just getting any kind of documents uh processed at all it's just a huge headache water bills in cook is just they're ridiculous uh lawyers i find actually i've got a good attorney there now but i don't know how much we'll work together and now and then the other thing that's been really really difficult for me in cook county is realtors i have i have had properties hey fellow no investor are you looking to learn the basics of note investing so you can get started however you don't want to spend a few hundreds or thousands of dollars and hours online on some training program have you thought about attending a notes conference however you don't want to spend the money or the time away from your family well we have a tremendous beginners video series of 20 different topics with each video being less than 15 minutes this means each video is less fluff and direct to the content visit www.jkpholdings.com beginner dash series to learn more again www slash beginner dash series learn about celsius and we left at 43 degrees fahrenheit and i came back or i got called tuesday morning my neighbor says listen it's been 90 degrees and everything's burning plants are burning right now in four days unbelievable heat straight that came through so it's been a whirlwind we got back open the pool all of a sudden all ready for a nice 45 degree weekend like oh my god yeah that's what happens when you live in the north east you get this kind of thing so what kind of temperatures you have are you guys currently like yesterday and today it cooled off big time on wednesday it was it was nice warm sunny a little humid not too bad uh like 30 celsius so like upper 80s okay and now today it's like 10 degrees right now so it's like like maybe 60.

55 60 somewhere in there so it's it cooled off a ton uh but you know by the end by middle of next week we're back yeah it's interesting too because you know this weather thing goes crazy for us and you know as we talked earlier monitoring the weather from the south is different from whether it's north we're probably years ago where people weren't thinking about winter storms or whatnot um and i don't think about hurricanes right so when we have property in the south i don't think i'm boarding them up i say hey listen that's florida and it's oh crap we gotta make sure we get on top of that i mean same with you guys like you could be having a really cold weekend and it's burning up there it's just yeah unbelievable so it's interesting you know we talk about weather but it's it's like you say it's kind of significant because i need to know for example i just had last weekend i've got a couple of properties in lake charles louisiana and last year they had two hurricanes come through a month apart and then just last weekend they had more heavy heavy rain and flooding so oh my god just you got to kind of keep your ear to the ground and see what's going on all over the country yeah so that comes almost full circle what we want to discuss today and guys we're going to keep it light i'm just trying to get back in normal stuff uh we got a lot of things going on and um it's a holiday weekend for united states and all stuff um and one of our guests who are joining us today just couldn't make it because the holiday weekend so we want to talk some in light but really kind of hit home on some things here um i think for a lot of people you know knowing what to get into what not to get into um and cody cox if you didn't see the message wish i haven't broken the man in the chat so uh cody always a good man thanks cody so uh yes happy birthday nathan by the way everyone happy birthday all the good stuff that was yesterday yeah yeah so belated birthday everyone so how was your birthday my man would you guys do anything special it was really good actually i i gave this is one of the perks of working for yourself so i i went for a nice run in the morning actually i took my girls to school which my wife usually does but i'm like yeah i'll do it i took them to school came home went for a run uh just kind of had a i didn't really even get into the office until around noon and then uh just i had given myself a light schedule because i'm like it's my birthday so just kind of took it easy it was fun i had a good time how are you were you able to disconnect and then and relax yeah it was pretty good uh pretty good so it was i you know there's always something going on and you can all you can drive yourself crazy but yeah your brain doesn't shut off it's just yeah i think you're like oh crap you know you do show up a little while you start freaking out yeah um which is good right i'm glad to see you do that man we all need to do that when i was on vacation i was able to unplug weirdly enough panicking when i came back to the computer like hundred and some odd emails and whatever it was and like holy crap and that's like two days later yeah um thankfully team around me and my you know people who are taking over for me kind of helped out good talk about that kind of stuff you know we want to make our business easier for us um and putting the people around us that make it easier is key yeah even if you have one deal or 100 deals or 300 deals getting a team around you and that's not just internally that's external as well yeah yeah definitely so share a little bit you know we want to dive into our deals and i'm going to bring up a question that someone asked yesterday we want to address but here's something about you know we're talking offline about what is our you know our favorite deals and i want to make sure we're clear everyone these aren't our most powerful deals they may be but there's a reason why they're our favorites what was about it that made it so easy to get into so yeah and you know it's really interesting when you after you've been um working at this a little bit you'll get a tape and um i can go through a tape much easier and faster now than i used to be able to and and part of that is just being able to look at the numbers a big part of that one of one of my first things that i filter is states so for example for me new york new jersey they're they're immediately and i just i don't even look at it because i'm just not interested i no matter what you know if somebody came and said listen i've got this really good deal and this is why and they can make a case for it i'd listen i don't know that i'd desperate for it but i'll listen yeah but if i just get a tape forget it you know those ones are off the list right off the top and for those who are not familiar why why is that off the list for you so part of it uh had to do with with you know rumors and and just hearing from other people's experience and then part of this from my own experience so i had heard that new york was you know terrible long foreclosures this and that and so i i thought okay yeah no i'm not interested i'm not gonna do that a couple years ago i had um both in new york but not in new york city one is in just outside of niagara falls uh and the other one's nearby it's not too far from from niagara so so you know different part of the state not new york city nor close to the boroughs and they were right at the end of foreclosure both of them so i'm like you know what yeah that sounds good that sounds about right wouldn't you know one of them uh declared bankruptcy the day before or two days before the sale so that got off the rails and and we had to deal with that the other one uh close to the end of foreclosure in any other state meant i still had a year and a half to go which i found out the hard way and and we had to kind of deal with it take it as it comes but so my experience is you know what it's just not worth it for me yeah i i've got now i i went through a couple of different attorneys just on those two loans so i didn't have an attorney in new york uh i do now uh you know a guy that i can work with and trust and know that he'll do a good job but getting started somewhere new is difficult um it's not impossible but uh but you know it's a consideration so i'll look at a place and i know okay so i've i've already got my attorney set up i've got a good realtor in the neighborhood i know the area maybe i've been to the city and i know you know what side of town to look at that kind of thing and that that will help kind of direct my decision maybe i've done another property in that uh in that city or another loan and so i i just have you know a better idea of just kind of the local feel and what happens there and that will definitely guide my decision and from you know i got horror stories of people selling reo's in new york as well right um and we've had a couple in new york but they're performing so we haven't had that issue um anything we did now before we actually sold off luckily um so when doc's really wanted new york so we're able to sell a small pool of assets to somebody um because we didn't want to take reo of the because the issue of selling it um it's a headache compared to a lot of places you mentioned having your agents right having an agent and having a good agent are completely different worlds oh yeah um and when you get a hold of someone that's good you kind of want to stay with them and the only way to stay with them is to buy assets near them exactly so you may buy a little higher than you want but your team is there to really trust and know what's going on um definitely so share a good one where where was the situation where you bought an asset that maybe the numbers weren't perfect you know you don't need to give me the numbers but tell me about the deal um so i've got a couple here i mean i'm looking through my list i i'm not sure what you do dave but i keep a list of um i've got kind of a main spreadsheet and with that i've got current loans a different tab for just kind of rough figures on on what i'm kind of expecting to happen um any monthly payments that i'm collecting and then further down the line there i've got uh one that i just it's called done owned so ones that i have had and now have sold and then beside that is done figures so it's it's that same rough figures that i had but now it's the the real numbers so okay i scroll through that and there's a couple hundred on there which is awesome to see and it's it's really cool but it's when you go back and you're like i remember that one oh yeah that one oh yeah you put comments on there right you put comments what you did didn't like about it just recall it yeah right near the end there's there's uh how it was sold we actually uh every year my wife and i will go through this and and we'll separate it out so it's it's organized by year and then within that year i'll say okay so these many uh they're highlighted you know a light purple and those ones are the reos that we sold and then the the green ones are the um performing loans that we sold um payoffs um ones that sold at auction things like that and so we'll we'll have them kind of separated out so we can see at a glance you know what's working what's not what's our best um our best returns and which are our worst returns and where did the surprises come in and all that kind of thing so just real easy quick reference yeah we have something similar um we got the point where we were able to check uh a drop down and we choose it and move those assets to a different tab so that we'll see any assets we sold on one tab and it automatically populates based on a drop down so every asset we see is in a master list right and we can see where it is and go to that tab and say okay what do we like about that one any answers we saw we'll move over as well right then we reviewed so we can go back and say okay we like this asset but something happened here and if it's an area we like we can revisit at any time and go hey listen seller do you still have it um and that's key right yeah um in our mastermind we're talking about don't always and quit on a deal that someone that you lost a bid on go back to the seller reoffer your offer a month later and see if the assets still available yeah it happens all the time where where deals fall out sometimes they'll be looking at some another buyer will be looking at a larger pool my experience with larger pool purchases is is they fall out a lot uh yeah it's it's much easier to close a deal on five or ten notes than it is on 50 or 100 so those ones will fall out all the time so yeah that's a good point go back and check it yeah so i'll share one here that uh this going back we purchased this one in 2016.

and i like this one because um for a few reasons it it paid out well which is great that's always happy um this was earlier uh on and things and so i was kind of getting the hang of of foreclosure processes and different states and things and this one happens to be in san antonio texas so it was a good um just a good experience of going through the process of a foreclosure in texas and we talk about it being this fast and everything and i've never i don't know what you did but i've never had one actually complete in two months flat i know that's what everyone talks about it i've never experienced that it's it's never been that fast i've had it happen in uh three or four months but yes but i've never had into no no i think 68 days is my record and that's you know in theory you could do it in two but you're you're having to hit the dates exactly right and buying exactly right and filing exactly right yeah because of the dates and when they go to auction yeah there's all the auctions are once a month so just that alone if you're if you missed the deadline and you've gotta put it in for the auction it's two or three weeks in advance so it's gotta line up perfectly to get that two months um it's not impossible but i've never had that go that fast but anyway i'll share this one because uh because it's in san antonio and um first of all i like i like san antonio it's a great city and it's uh it's always done well for me what i like about this deal what really came of it was a like i say made money and then number two is i got a great realtor out of this one and we talked about realtors versus good realtors and i've got a great realtor in san antonio um and this is back in 2016 and we're still working together now uh we just had a deal in fact uh a little tip on on how do you keep a realtor happy so i had a foreclosure that we were working on for the whole last year and because of the moratorium it kept getting bumped and bumped and bumped and bumped and my realtor was kind of looking out after the house and making sure that everything was okay and it's not getting vandalized and that sort of thing so he's putting work and time into this expecting that he's going to list the property for sale i did not expect there was not a lot of equity on this so i really didn't expect auction that somebody would buy it at auction um and then of course somebody did uh which is great for me uh but not so great from our realtor because all that time and effort that he put into it then is all for nothing yeah um so i let him know right away and i said hey i'm really sorry i did not think this one was going to sell at auction at all but it did thank you so much for your time and your effort and then i got him an amazon gift card and i sent him an amazon gift card as a thank you um it's not a big thing and it wasn't a whole lot of money on that gift card but it's something and he knows that i appreciate it and and uh we'll be able to keep working together you got to keep the good realtors for multiple reasons right um for future properties and future deals especially in texas right if they get a seller finance deal when they throw it your way that's like gold yeah um so yeah texas is a hard state because a lot of people want it the pricing is always really crazy um so did you get a decent pricing on when you bought it we did this back in 2016.

okay i got the numbers here i bought it for oh man i got a good deal i paid 17 000 for it okay uh we had uh at the time we had a cmv of 50. i it's sold at auction and this is this happened this has happened a couple times now to this realtor agent who could work with attorney eight investors who couldn't do any kind of re-keys and trash house we needed i had solid comps and i had an attorney that said listen yeah it's ohio but we'll get through it um i knew the borrower was a landlord which made me even feel a little more stronger um because when i found out that it was habitable there was someone living in it told me the fact that it was probably knowing the fact of the land illustration told me something else right the reason i knew was landlords tax records were incent somewhere else but the fact the property was there okay um they did some quick research and the person the owner was younger wasn't like an older person a younger child right and um during their 40s that deal was attracted me for that for those reasons having the people in place i knew the fact that even the numbers got tight i had the people in place to kind of help me out make sure the deal was solid i think for a lot of people you know reaching out and meet new people is difficult um start with the attorney right get in the phone call we don't work with a ton of attorneys right you may work with two or three estate get on the phone feel the ones that are the most controversian quinn is one that comes out a lot of people talk about great person great work with her she gets behind some things but you know at the end of the day she has your back um and things like that so if you want to reach out with that uh i know mike nazak is on the group too if i need to have a deal with his area and that's a strength i'm going to use that many of you have a situation where you can reach out and talk to another investor or a rehabber or if you know somebody local focus on those areas if you can right then maybe your backyard it may not be just like me and nathan we buy in our backyard just not happening so it makes you feel most comfortable going outside your boundaries so having those teams together provide you the opportunity to have the best opportunity for success even if the numbers are great doesn't always mean success we've got a deal where i bought it for 50 grand probably worth a buck 50 and the young pay balance like 90.

way underwater i was so solid and things it turned to be one of our worst deals it's just there's so many problems delays issues that the numbers weren't good and the reason was i was in an area that i was didn't have an agent it was in just a really weird part of ohio and in i went for it for the numbers um understandably but i didn't have a team and that's what differentiates things a lot so yeah don't burn bridges as anthony mentioned in the chat box and connect with people right connect with investors so is there another deal that that was there a seller right um or you know i have one in my mind as a seller was reason i bought it or an opportunity that was around it that made it attractive to you besides numbers actually he's here's a good one um this is a good example one one that i wanted to share is so this deal actually was brought to me by one of our friends liz and she said hey i've got this new seller that i'm working with um i think it was her and kimberly and i all put in bids together just so that we could have a larger bid collectively so we could get better pricing uh and and so that was that was the first thing so first of all it comes from liz and i trust liz and i like her a lot and so she's she's fantastic and second of all when i was going through tape i noticed something and watch for stuff on the tape because you can learn all kinds of things what i saw on this one this was a contractor deed in indiana and um i think it was like uh and we completed a deal they they bought it from me for 56.4 whoa yeah so i mean i hardly had any expenses on this some due diligence and that was it and then and my turnaround time on this was four months so i was able to turn it around for a really nice return on that in just a few months just because i was paying attention and i saw that the data was old and uh had the suspicion that it was performing and i was right and i i still would have been just fine if it wasn't um the numbers were still good if i if i had to foreclose and if i had to take the property back but uh but this way it was just i had 263 dollars in expenses and that that's it wow so that one that one worked out really well that was the favorite note guys so what happens is so those who are maybe not you know ultra familiar with this is when they put a data tape together they give a cut off date right and they say this is the cutoff date of all the data anything newer is not gonna be on here any older well sometimes it get to a broker a little late or the data got through and they got distracted and eventually gets the broker and gets sent out to all of us so that data may be old and if you go through the tape and you see multiple assets on the tape that has the next due date being two months ago three months ago and there is nothing current and you look at the pay history if it has it and you see a line of pay history looking good be a little suspicious that that may be performing right and in my formulas i calculate it's non-performing because it's three months old right so just be mindful of that kind of stuff including a nice little caveat to those looking at stuff look at that the last date of all the assets and see where it is because not every tape we get has a cut off date um look at the next due date all of them and see if there's anything past it um you can always ask the seller hey listen is this the last pay issue on this one is right they're not going to pay attention and i i i don't a lot of the time that doesn't happen very often but if i see something like that i'm not going to say anything i'm not going to ask that just well yeah that's the point i don't want to raise uh any anything where they go oh wait a second no no no that's old let me get you the new data no no no i'm good i'll stick with what you sent me thanks so you know it's weird because i'm not to mention last names here but we both know chris one of the sellers we really like working with yeah um we bought a few assets from kim and i i bought a few assets they were a little bit below where i my bid number just because i trusted him right um going through that seller has never been a problem where there's other sellers where um even the numbers are good i sometimes be away from them yeah um but chris has been such a good person to us uh fair honest up front um patient idea where we're doing it ira minor it was called all kind of health and he was able to come through and kind of hey listen i get it just keep me impressed what happened so yeah sometimes a seller makes or breaks a deal um yeah sometimes deals just look good but you question what else are they hiding yeah um they're still out there we kind of beer away from for those reasons so for me sometimes the seller is the key reason why i'm going to look at something deeper and there's other tapes that we both get that we kind of ignore nowadays right because it's out there everyone has the seller doesn't know what they're doing the paper is kind of crazy um or we know the fact that pricing is high in that seller yeah or or it's a brand new seller or somebody that wants to broker the tape i don't necessarily have a problem with brokers um but you've got to if you're getting broke or something you've got to be able to back it up 100 percent if this is a daisy chain then yeah i'm really sorry it's just i want to make sure that i get the collateral yeah and if you're going through a guy through a guide to a guy then no so and i know repeat this before so i apologize for this listen to it brokers don't often know they're actually brokering or in a daisy chain right they hear sellers rap they hear on direct seller they hear on the seller more likely they're not the seller most sellers don't chain their stuff out it doesn't work that way there are some that do um so whenever you get a tape and you're from either on director cell or seller's rep you got to ask some questions guys and ask questions like who's the service running where the cloud file is and things like that to kind of find out if they don't know and they don't work to find out most of there's a problem so what other questions do you have any other questions you typically ask to kind of narrow down brokers um no asking about the collateral file is a big one and the servicing file as well and that's something i have done more recently um i've got actually uh a guy that was referred to me from tracy tracy rui um and uh he's bringing me seller finance deals cool uh and so again in that sense it's kind of basically he's acting as a broker and again like i say i don't necessarily have a problem with brokers he's newer and again that's fine but i need to make sure that everything is in place so he he brought me a deal last week it's in pennsylvania which again is a state that i typically steer away from numbers are good uh house looks good everything looks good so i had them send me all the information like i said i can be talked into something if if everything looks right but he brought me all the information i was reviewing it everything looks great except the the one thing that's missing is the note which is kind of important uh and in pennsylvania it's actually critical we have to have at least a copy of the note along with the loss noted after david and that we're not sure if that's going to be available or not so if if we can find it great we'll go ahead with this deal and it'll be great if not unfortunately it's a dead deal [Music] so brokers if you get a tape of assets linkedin facebook whatever the first thing you've got to make sure if they sent you a tape without nda red flags should well yeah um if i'm saying tape nathan i'm not nba in him because it's no sense we know each other relationships there but someone's sharing a tape with you that's not nda question that first off it doesn't work another way you can figure it out is queue for funds poi um pos kind of stuff most sellers don't care about approved funds you don't perform your blacklist you're off the table so just be careful that kind of stuff so we bought from brokers you know there are some really good brokers out there and it's the brokers who have great connections um we have a broker that actually works a deal out and sends us the details of the deal if we buy it we're gonna pay three four thousand dollars for booker fee no problem with that they did all the work for us yeah um we have brokers who just have direct sources of assets that you know we may not have the connection to for whatever reason silver fines world's a completely different world than our our financial institution one yeah whereas our finances they may actually be doing their own skip tracing and data scraping with that which is interesting we're looking at getting into more into that um but yeah if you're brokering or trying to get into the brokering space not understanding the note space you've got to learn the basics if i go to you and ask you is it a mortgage or a contract and you don't know that's a problem yeah because i'm going to bid differently if if you don't know who the servicer is how do i know that you are direct to seller and why is director so important you don't know how many other brokers are between you and the seller that tape may be three years old and someone put it out there just hoping to get a connection and trying to build a rolodex up yeah so cool so we actually had a good question today from an investor that we had a call with um and i wanted to go over with you and see your point of view they want to learn about how to present an offer to sellers they got the point where they felt they can evaluate nasa they feel they can come up with a good bid okay but they wanted to present the offer in a presentable way a really good indicative offer they're asking do you put a letter together do you you know how do you look professional before i put my thoughts what are your thoughts on that should you put a formalized letter together where does professionalism appear in your eyes uh it's a good question um i think part of the thing to remember is that uh this is it's very much a relationship business yeah so so you're not necessarily trying to impress with your materials uh you should be trying to impress with um with the relationship and specifically about uh your willingness and ability to perform um if you put in a bid and it gets down the road and you know you're a day or two away from funding and then you pull out that that speaks way more than a fancy approach to to putting in your bid so that's that's the main thing i think to remember i i put in bids all the time where it's just um you know one or two lines in an email uh that's that's incredibly common uh that's not a big deal in fact i think really the only time that i would put it on to a spreadsheet is if i've got say more than five or something like that yeah just because it's it's more organized and easier to read but if i'm bidding on one or two loans no that's that's just an email i maybe the only tip i would put in there is um this is something i learned way back when uh just kind of the psychology of negotiating is when you're talking about um putting in your bid um instead of saying my bid is 50 000.

instead of just writing 50 in the letter k i'll actually type out the whole thing so i'll put a dollar sign 50 comma zero zero zero dot zero zero and make it look as big as possible and and does it make a difference i don't know but that's that's something i learned a long time ago and it's just kind of stuck uh and and this this person's coming from the real estate world right where they have to make a nice presentation to the sellers a lot of time even homeowners are getting letters from oh can't wait to we've raised my kid here our sellers in our world outside the seller clients world don't care they're not looking to negotiate with you and say hey listen let's get a phone call and talk now start fighting it's a little different right you can kind of gab with them and explain things with them but when you're buying institutional loans you're not going to get a phone call and shoot the breeze with them um i i share with her my thoughts professionalism is really on the bid being where it's at right now if you make an offer on an asset it could be both ways way too high you're being a you know a three percent coupon rate at 95 percent of the loan they're gonna laugh at you the whole way home and know the fact you're not professional and sell it alone laughing right versus you're buying an eight percent coupon and you're trying to bid sixty percent of it they're gonna at the same time think you're not professional either because you don't know where you're at you're throwing numbers out there so me the bid actually if you can't back up the bit right right so if i put an offer out there and see where did you come across that bit number hey i'll explain my bid if you don't like it it's fine but hey listen i did 68 because x y and z where if you come back to you say why did you bid 65 and you said well you know i did 60 of or 75 that doesn't really do anything so your bid offer is the professional part for me is if you present a accurate bid and define it with background and say listen this is how i came to it that to me is the most professional thing most of my bids like you said or emails yeah you know here's my offers here's a spreadsheet here's my offers spreadsheets or i'll put if it's a couple loans i'll put that into an email as well it's not formal right only all i had in there is my list of what i need i have you know things i need to make sure that i get such as a cloud file and service or your notes and something like that you know we have a whole list of 13 on our website of things i asked for that that to me is not to look professional but just to get the items i need so if you say yes to it i want to make sure you give me a service notes and whatnot right so um so so anthony's motivated um he mentioned next time spell it out and put the number in parentheses as well so sure you know hey whatever way we can get across that's the bit number yeah one of the other ways i always um you know read about net uh never split difference is never come across as an even number yeah that's a funny right forty nine thousand eight hundred and ninety six dollars and twenty three cents yeah it looks calculated right it maybe is but it looks specific you know where it's like listen this is calculated based on numbers if you come across 50 000 it may look like you just spit a number out and you look negotiable right where if you come clean and say this is my number well there's some thought into this so yeah so let's take another example too is uh just going again going back to the relationship thing um so i mean there's guys that i buy from all the time on a really regular basis um so much so just this happened just this last week where um i got a tape from a seller who most of those loans that they sent aren't going to be sent out to the public for another two weeks so i kind of got first look at what was available so i put in my bids i was hoping to get more of them but i i ended up with just two um the price that we settled on uh i know and they know too that if they put it out to the public in two weeks they'll get more for it uh but but we've got a good working relationship they know that i'm for real and that i said you know i'll i'll give you this much and i can close next week and uh and they know that that's accurate because that's what we've done in the past so you know they said okay so based on that if you can close next week then yes we'll give you that price we know that we can sell it for more in two more weeks when they send it out to public and i say yeah i know but the thing is they risked that too right they may be able to get an offer it's higher than yours but they don't close or the problem or concern or issue yeah um where hey listen these guys are closed right we've done offers of assets where the sellers listen just give me your best number we know you're close just give me your best and highest i don't want to negotiate just give me your number that works yeah here it is great close on it right and that's what we do yeah and building that reputation for yourself is really really important uh and just making sure that everybody knows and if you're not gonna close just be open and communicate hey listen that's what's going on yeah be honest about that as well uh like you say an ira snafu you know you know what funding is going to be delayed by two weeks we've got the ira that we're working with this is the company uh you know we're having to comply this way in that uh it's for sure for sure it's coming we just have to go through this and it's going to be another two weeks yeah most of the time that's going to be like oh okay no problem yeah um if there's any other questions um what's your type up too if there's any questions guys feel free to jump in here i wanted to kind of break it down because that was the question she had uh where she got stuck on the fact that how do i present that with a fool um and weirdly enough it's not as clean cut as typical real estate right um it's really used to contracts and formalized stuff and it's an email it's crazy but it's an email right but yeah you're like it's not like real estate where you're sending in your picture with a letter about yourself and this is why yeah yeah um and you know yeah and not even reason sometimes right sometimes you send an offer so listen here's all the rehab possibly to go along with that justification it's like listen get my numbers yeah and yeah the next step right so those who haven't been on an asset understanding your indicative offer you're still subject to a bpo cloud overview and hopefully no seller listening you have plenty of reasons to get out of deals too there are so many ways to get out of situations legitimate reasons right you've been in an asset they say where's 50 you think about 50 you come back at first one or the house is missing listen the value is not there now the house is worth 45 you've been 50 you better be coming down you remember a little bit don't be just trashing the deal right right right um if it probably retired you shut your mouth and you bought a deal right exactly but if the collateral falls missing something yeah right that's a key right if there's title issues or you know when you come back with taxes there's always usually something in there that you they they can get you have a deal as long as your number's right the first time if the deal ends up being what you thought it was yeah you shouldn't be backing out and within reason and and i've had that where you know um we bid on it and then i get a tax bill for for a 2 000 tax bill listen a 2 000 tax bill is not a reason to to back out of a deal and if you start pulling that kind of thing that you're gonna have a lot of trouble and headaches just getting deals at all uh if you're gonna call out for a real small tax bill so we also had a situation with um a water bill came across like five six seven thousand water bill yeah and and what what do you do in situations like that right you get a water bill that comes to your hands and you're like holy god i agree the situation it wasn't on the o and e get all the county records you come back to him so you know what do you i know i've run that what have you done institutions like that where you call the county and found it out oh when he didn't have it on there or whatever how do you present it to the seller most times i just eat it and i just say you know what that sucks it would have been really great if i'd caught that beforehand uh within reason you know there there have been things where it's come up and um something that should have been on the title uh that wasn't a a water bill it's mostly most time is there but it's not terribly uncommon for it not to show up if they've put if the county has or the city has put it as a lien then for sure it'll be there if they haven't registered that as a lien um it very well might not so in most cases i just eat it if it's you know kind of more extreme case and there's something that actually wrong with it uh then i'll go back i have gone back both to the seller and to the title company if it's something that should have shortened up on title and it's not there i'll go back to them and say hey this should have been there uh it was registered lien and you didn't catch it i've i've come back to the seller and so listen guys this came across you know as long as it's not a high percentage of the purchase right but if it's on our house and it's 12 grand water i'm gonna go back if there's a thousand dollars i'm not gonna worry about too much don't eat it you should have some kind of thing gene just mentioned that um water bill's been a problem for him lately well um and it for whatever reason right um faking homes or whatever and i think that for me as long as you catch early enough it's not a huge percentage go back to seller explain them they may or may not know about the problem yeah they may be an eyewitness but we'll often go back and listen i've split the middle with them i have done things where i've gotten to take off the whole thing like listen this is 12 grand the house wearing 50 grand yeah sometimes they'll split it somebody just negotiate you may not be able to you may be and you may say listen this just kills a deal for me all my numbers yeah i've had it where they say okay listen you know unfortunately i can't send you any money but we can we can give that to you as a credit on your next one yeah that's that's not my favorite one uh but okay you know but whatever you can negotiate yeah gene said that um they came up after they bought it they didn't uh look they didn't see it as they looked in the lean situation they didn't see it that sucks right that's um and sometimes they don't you know i've been wearing situations where they actually don't file the lien which is crazy the bill accumulates and they don't bottle in it's i was saying water bill it should go with the borrower but it's another dozen so um county yeah so i think for those out there you know we're giving some scary things here um these are these are not all the deals okay so hopefully you're not you know we're not fearing the worst here but just kind of monitoring and see what's going on um see if these um anything with no celebrations if it's vacant give demonstration when it's occupied um so i think you know for me what we're looking to do is put the team around you and to find the deals you have the both security in because those are deals even with the smallest margins sometimes work um oh she said that one of the water bills 189 which ended up over 900.

um gene how much was the purchase price if you don't mind sharing so you know getting those kind of people in there getting a hold of county people um so those who are listening you can definitely call the county or the lien company and ask what the water bill is um and find out that kind of stuff just like taxes you can find out that the tax bill yeah um and what not um moving forward do you have certain counties in the country that you identify as being those areas where you're buying more of because the teams because of what you've success that may supersede numbers all the time now let me see here so actually um i still continue to buy in texas i just picked up a few i got uh an el paso nash temple houston uh port arthur i i i like texas um like to say it can be hard to get uh but part of part of why i like texas is because i've got a good attorney there san antonio like i mentioned i've got a great realtor but if and when they come up uh yeah otherwise actually houston i just picked up a really good um realtor there too are these performing notes or non-performing yeah okay yeah in fact that uh houston one uh it looks like we're gonna have that for the july auction that might be my two month oh not quite i bought it in may so for those who don't know nathan's more he likes to turn things ass that's over he doesn't hold things long-term so getting money and getting money out is what do you think he looks for so um which is cool right it's a different mentality we have performers and we love our performers the way our structure goes um and whatnot so that's shifting some for me as i go into the fund it'll be more long term but for now it's it's the quick turnaround how about you you got specific areas yeah yeah we you know um we love to buy in jersey in areas we like um because of where we're at we have a network but like you we most of the time avoid it we've had our biggest home runs in jersey just because the seller didn't know any better um hopefully paul's not listening um right and it was just because it was in a city area um and it was short to foreclosure um but we we do avoid pa to the most part we have a we have loans in pa but um we're not heavily looking at it but we do look at the most the taxes in tennessee's and alabama's and the florida and the carolinas um we'll also look at like montana and missouri and midwest area we don't buy much in california um i don't buy in illinois um definitely buying cook county uh sorry kathleen but you know for me you know i pushed away from ohio um laws timeline cost property taxes water issues yeah um even in the end i've kind of several in the la over the last few years and i've never been able to get a good realtor in cook county and so if everyone's got one i've got a two more one of our one of our mastermind uh members is actually in cook county those who are not from there we have a group that meets weekly um and discusses goals and we're done we have a lot of awesome stuff so if you're interested get a little website or shoot me an email but yeah one of our members is actually uh uh she's she's actually a uh realtor in cook county in chicago okay i think she's in the southern side so okay um but i'll connect you uh yeah that would be great it's just hard right it's cook county it's just a long tedious process so it is it's tough and then new york uh gene i'm gonna be talking to gene later about maryland or sorry maine oh yeah maine's got all kinds of funky i don't know if they changed the foreclosure law i think they did i was talking to um someone recently and you had to bring the originator and all the previous note holders in the court in person yes to foreclose that's still the rule it's ridiculous and including ones that no longer exist and so how do you do that i don't know but the the work around there is a work around i'll share it is is if you can get back to the originator and just have them assign it directly to you that's the work around it it's not good but it's assignments on the books how does that it's a it's a corrective assignment it will make it so that you are now it's just a direct line so they have to appear then as well still the originator in you gotcha you don't have 15 people between them right so it makes things a little easier but it's a little bit of a headache yeah northeast northeast is tough yeah just the the rules around foreclosure are long and arduous and difficult yeah so i know there's a couple conferences coming up um we're gonna see them up probably soon the next few weeks we're gonna have some um some additional services coming on um and some new people coming in um if there's a topic you guys want to talk about feel free to reach out um i'm checking out some of the numbers behind the scenes we're getting good reviews and people you know watching it after our live video which is awesome so well nathan man i appreciate your friday afternoon i hope you have a good weekend we have a three-day weekend down here i'm gonna take it yeah yeah take off monday for us um so everyone uh morally we can have a good time but remember what it's for um enjoy it um but stay safe everyone thank you for tuning in and we'll catch you guys next weekend very good thank you i went for a nice run in the morning actually i took my girls to school which my wife usually does but i'm like yeah i'll do it i took them to school came home went for a run uh just kind of had a i didn't really even get into the office until around noon and then uh just i had given myself a light schedule because i'm like it's my birthday so just kind of took it easy it was fun i had a good time how are you were you able to disconnect and then and relax yeah it was pretty good uh pretty good so it was i you know there's always something going on and you can all you can drive yourself crazy but yeah your brain doesn't shut off it's just yeah i think you're like oh crap you know you do show up a little while you start freaking out yeah um which is good right i'm glad to see you do that man we all need to do that when i was on vacation i was able to unplug weirdly enough panicking when i came back to the computer like hundred and some odd emails and whatever it was and like holy crap and that's like two days later yeah um thankfully team around me and my you know people who are taking over for me kind of helped out good talk about that kind of stuff you know we want to make our business easier for us um and putting the people around us that make it easier is key yeah even if you have one deal or 100 deals or 300 deals getting a team around you and that's not just internally that's external as well yeah yeah definitely so share a little bit you know we want to dive into our deals and i'm going to bring up a question that someone asked yesterday we want to address but here's something about you know we're talking offline about what is our you know our favorite deals and i want to make sure we're clear everyone these aren't our most powerful deals they may be but there's a reason why they're our favorites what was about it that made it so easy to get into so yeah and you know it's really interesting when you after you've been um working at this a little bit you'll get a tape and um i can go through a tape much easier and faster now than i used to be able to and and part of that is just being able to look at the numbers a big part of that one of one of my first things that i filter is states so for example for me new york new jersey they're they're immediately and i just i don't even look at it because i'm just not interested i no matter what you know if somebody came and said listen i've got this really good deal and this is why and they can make a case for it i'd listen i don't know that i'd desperate for it but i'll listen yeah but if i just get a tape forget it you know those ones are off the list right off the top and for those who are not familiar why why is that off the list for you so part of it uh had to do with with you know rumors and and just hearing from other people's experience and then part of this from my own experience so i had heard that new york was you know terrible long foreclosures this and that and so i i thought okay yeah no i'm not interested i'm not gonna do that a couple years ago i had um both in new york but not in new york city one is in just outside of niagara falls uh and the other one's nearby it's not too far from from niagara so so you know different part of the state not new york city nor close to the boroughs and they were right at the end of foreclosure both of them so i'm like you know what yeah that sounds good that sounds about right wouldn't you know one of them uh declared bankruptcy the day before or two days before the sale so that got off the rails and and we had to deal with that the other one uh close to the end of foreclosure in any other state meant i still had a year and a half to go which i found out the hard way and and we had to kind of deal with it take it as it comes but so my experience is you know what it's just not worth it for me yeah i i've got now i i went through a couple of different attorneys just on those two loans so i didn't have an attorney in new york uh i do now uh you know a guy that i can work with and trust and know that he'll do a good job but getting started somewhere new is difficult um it's not impossible but uh but you know it's a consideration so i'll look at a place and i know okay so i've i've already got my attorney set up i've got a good realtor in the neighborhood i know the area maybe i've been to the city and i know you know what side of town to look at that kind of thing and that that will help kind of direct my decision maybe i've done another property in that uh in that city or another loan and so i i just have you know a better idea of just kind of the local feel and what happens there and that will definitely guide my decision and from you know i got horror stories of people selling reo's in new york as well right um and we've had a couple in new york but they're performing so we haven't had that issue um anything we did now before we actually sold off luckily um so when doc's really wanted new york so we're able to sell a small pool of assets to somebody um because we didn't want to take reo of the because the issue of selling it um it's a headache compared to a lot of places you mentioned having your agents right having an agent and having a good agent are completely different worlds oh yeah um and when you get a hold of someone that's good you kind of want to stay with them and the only way to stay with them is to buy assets near them exactly so you may buy a little higher than you want but your team is there to really trust and know what's going on um definitely so share a good one where where was the situation where you bought an asset that maybe the numbers weren't perfect you know you don't need to give me the numbers but tell me about the deal um so i've got a couple here i mean i'm looking through my list i i'm not sure what you do dave but i keep a list of um i've got kind of a main spreadsheet and with that i've got current loans a different tab for just kind of rough figures on on what i'm kind of expecting to happen um any monthly payments that i'm collecting and then further down the line there i've got uh one that i just it's called done owned so ones that i have had and now have sold and then beside that is done figures so it's it's that same rough figures that i had but now it's the the real numbers so okay i scroll through that and there's a couple hundred on there which is awesome to see and it's it's really cool but it's when you go back and you're like i remember that one oh yeah that one oh yeah you put comments on there right you put comments what you did didn't like about it just recall it yeah right near the end there's there's uh how it was sold we actually uh every year my wife and i will go through this and and we'll separate it out so it's it's organized by year and then within that year i'll say okay so these many uh they're highlighted you know a light purple and those ones are the reos that we sold and then the the green ones are the um performing loans that we sold um payoffs um ones that sold at auction things like that and so we'll we'll have them kind of separated out so we can see at a glance you know what's working what's not what's our best um our best returns and which are our worst returns and where did the surprises come in and all that kind of thing so just real easy quick reference yeah we have something similar um we got the point where we were able to check uh a drop down and we choose it and move those assets to a different tab so that we'll see any assets we sold on one tab and it automatically populates based on a drop down so every asset we see is in a master list right and we can see where it is and go to that tab and say okay what do we like about that one any answers we saw we'll move over as well right then we reviewed so we can go back and say okay we like this asset but something happened here and if it's an area we like we can revisit at any time and go hey listen seller do you still have it um and that's key right yeah um in our mastermind we're talking about don't always and quit on a deal that someone that you lost a bid on go back to the seller reoffer your offer a month later and see if the assets still available yeah it happens all the time where where deals fall out sometimes they'll be looking at some another buyer will be looking at a larger pool my experience with larger pool purchases is is they fall out a lot uh yeah it's it's much easier to close a deal on five or ten notes than it is on 50 or 100 so those ones will fall out all the time so yeah that's a good point go back and check it yeah so i'll share one here that uh this going back we purchased this one in 2016.

and i like this one because um for a few reasons it it paid out well which is great that's always happy um this was earlier uh on and things and so i was kind of getting the hang of of foreclosure processes and different states and things and this one happens to be in san antonio texas so it was a good um just a good experience of going through the process of a foreclosure in texas and we talk about it being this fast and everything and i've never i don't know what you did but i've never had one actually complete in two months flat i know that's what everyone talks about it i've never experienced that it's it's never been that fast i've had it happen in uh three or four months but yes but i've never had into no no i think 68 days is my record and that's you know in theory you could do it in two but you're you're having to hit the dates exactly right and buying exactly right and filing exactly right yeah because of the dates and when they go to auction yeah there's all the auctions are once a month so just that alone if you're if you missed the deadline and you've gotta put it in for the auction it's two or three weeks in advance so it's gotta line up perfectly to get that two months um it's not impossible but i've never had that go that fast but anyway i'll share this one because uh because it's in san antonio and um first of all i like i like san antonio it's a great city and it's uh it's always done well for me what i like about this deal what really came of it was a like i say made money and then number two is i got a great realtor out of this one and we talked about realtors versus good realtors and i've got a great realtor in san antonio um and this is back in 2016 and we're still working together now uh we just had a deal in fact uh a little tip on on how do you keep a realtor happy so i had a foreclosure that we were working on for the whole last year and because of the moratorium it kept getting bumped and bumped and bumped and bumped and my realtor was kind of looking out after the house and making sure that everything was okay and it's not getting vandalized and that sort of thing so he's putting work and time into this expecting that he's going to list the property for sale i did not expect there was not a lot of equity on this so i really didn't expect auction that somebody would buy it at auction um and then of course somebody did uh which is great for me uh but not so great from our realtor because all that time and effort that he put into it then is all for nothing yeah um so i let him know right away and i said hey i'm really sorry i did not think this one was going to sell at auction at all but it did thank you so much for your time and your effort and then i got him an amazon gift card and i sent him an amazon gift card as a thank you um it's not a big thing and it wasn't a whole lot of money on that gift card but it's something and he knows that i appreciate it and and uh we'll be able to keep working together you got to keep the good realtors for multiple reasons right um for future properties and future deals especially in texas right if they get a seller finance deal when they throw it your way that's like gold yeah um so yeah texas is a hard state because a lot of people want it the pricing is always really crazy um so did you get a decent pricing on when you bought it we did this back in 2016.

okay i got the numbers here i bought it for oh man i got a good deal i paid 17 000 for it okay uh we had uh at the time we had a cmv of 50. i it's sold at auction and this is this happened this has happened a couple times now to this realtor sold at auction where's my number shoot i don't have it here i have the profit number so it can kind of extrapolate but anyway my my overall profit net profit was thirteen thousand dollars uh on a 17 000 purchase so the total roi was like 68 so you know pretty pretty good um very you know a happy ending for that one that's where i met that realtor and then that's the guy i continue to work with today in san antonio so that's it's just been a win-win kind of a relationship and it was a good note you know i one of my favorite deals was a deal that i i feel confident about um and i learned a lot about the borrower and it was in it was just outside columbus ohio it wasn't realized i it was a good return wasn't the high return we've had before but it was a really good return and i liked it because a was a condo it was in a condo flex and the values when you're in a concentration you're really good strength of values so when we're in that spot that values to me even if they fluctuate a little bit it was based because the unit being different from another unit it was really really good for that so if you see a condo it's really often a buy good buying because you can really comp it well yeah plus it was next to one of one of the first terms i worked with who i loved still today um and he actually moved on uh and his junior partner actually took over most of the files um right inside columbus ohio um and we had an agent that was um a good agent over there as well that both of us work with and the combination of those three made this deal stick out to me right i had an agent who could work with attorney eight investors who couldn't do any kind of re-keys and trash house we needed i had solid comps and i had an attorney that said listen yeah it's ohio but we'll get through it um i knew the borrower was a landlord which made me even feel a little more stronger um because when i found out that it was habitable there was someone living in it told me the fact that it was probably knowing the fact of the land illustration told me something else right the reason i knew was landlords tax records were incent somewhere else but the fact the property was there okay um they did some quick research and the person the owner was younger wasn't like an older person a younger child right and um during their 40s that deal was attracted me for that for those reasons having the people in place i knew the fact that even the numbers got tight i had the people in place to kind of help me out make sure the deal was solid i think for a lot of people you know reaching out and meet new people is difficult um start with the attorney right get in the phone call we don't work with a ton of attorneys right you may work with two or three estate get on the phone feel the ones that are the most controversian quinn is one that comes out a lot of people talk about great person great work with her she gets behind some things but you know at the end of the day she has your back um and things like that so if you want to reach out with that uh i know mike nazak is on the group too if i need to have a deal with his area and that's a strength i'm going to use that many of you have a situation where you can reach out and talk to another investor or a rehabber or if you know somebody local focus on those areas if you can right then maybe your backyard it may not be just like me and nathan we buy in our backyard just not happening so it makes you feel most comfortable going outside your boundaries so having those teams together provide you the opportunity to have the best opportunity for success even if the numbers are great doesn't always mean success we've got a deal where i bought it for 50 grand probably worth a buck 50 and the young pay balance like 90.

way underwater i was so solid and things it turned to be one of our worst deals it's just there's so many problems delays issues that the numbers weren't good and the reason was i was in an area that i was didn't have an agent it was in just a really weird part of ohio and in i went for it for the numbers um understandably but i didn't have a team and that's what differentiates things a lot so yeah don't burn bridges as anthony mentioned in the chat box and connect with people right connect with investors so is there another deal that that was there a seller right um or you know i have one in my mind as a seller was reason i bought it or an opportunity that was around it that made it attractive to you besides numbers actually he's here's a good one um this is a good example one one that i wanted to share is so this deal actually was brought to me by one of our friends liz and she said hey i've got this new seller that i'm working with um i think it was her and kimberly and i all put in bids together just so that we could have a larger bid collectively so we could get better pricing uh and and so that was that was the first thing so first of all it comes from liz and i trust liz and i like her a lot and so she's she's fantastic and second of all when i was going through tape i noticed something and watch for stuff on the tape because you can learn all kinds of things what i saw on this one this was a contractor deed in indiana and um i think it was like i don't remember what month it was but but the tape the itself was was two or three months old uh and i knew that because on you don't get this all the time but on this particular tape it had data data date or whatever or yeah the date of deposit yep and it was like two or three months old um and i noticed i noticed that that it was a couple months old and then i saw that this one loan it looked pretty solid it looked like it had been paying pretty solid uh there was a pay history on there but because the data was a couple of months old we were listing it as a non-performing note and i went because just the data just quick formula yep and i and i looked at that and i said i i have a very strong suspicion that it is not non-performing it's actually been performing this whole time and they just haven't updated it wow so i did so i put in my bid here's the numbers on this so uh unpaid balance was 76 000.

uh on uh cmv of 75 so there's really no equity at all a little bit underwater just barely i was at an eight percent interest rate you know the kind of things that i like to see when i'm looking at uh at loans a higher interest rate i picked it up for 35 500 which was good that was that was a good price and that was partially because we did it as a as a group bid i then i sure enough i contacted the borrower and uh found out yes they had been paying so i got the updated pay history from the servicer uh and yet they've been paying the whole time so there's no break there at all so i think i actually sold this one back out to i think it was to first national okay um turned it right back around out to those guys as soon as i could uh and we completed a deal they they bought it from me for 56.4 whoa yeah so i mean i hardly had any expenses on this some due diligence and that was it and then and my turnaround time on this was four months so i was able to turn it around for a really nice return on that in just a few months just because i was paying attention and i saw that the data was old and uh had the suspicion that it was performing and i was right and i i still would have been just fine if it wasn't um the numbers were still good if i if i had to foreclose and if i had to take the property back but uh but this way it was just i had 263 dollars in expenses and that that's it wow so that one that one worked out really well that was the favorite note guys so what happens is so those who are maybe not you know ultra familiar with this is when they put a data tape together they give a cut off date right and they say this is the cutoff date of all the data anything newer is not gonna be on here any older well sometimes it get to a broker a little late or the data got through and they got distracted and eventually gets the broker and gets sent out to all of us so that data may be old and if you go through the tape and you see multiple assets on the tape that has the next due date being two months ago three months ago and there is nothing current and you look at the pay history if it has it and you see a line of pay history looking good be a little suspicious that that may be performing right and in my formulas i calculate it's non-performing because it's three months old right so just be mindful of that kind of stuff including a nice little caveat to those looking at stuff look at that the last date of all the assets and see where it is because not every tape we get has a cut off date um look at the next due date all of them and see if there's anything past it um you can always ask the seller hey listen is this the last pay issue on this one is right they're not going to pay attention and i i i don't a lot of the time that doesn't happen very often but if i see something like that i'm not going to say anything i'm not going to ask that just well yeah that's the point i don't want to raise uh any anything where they go oh wait a second no no no that's old let me get you the new data no no no i'm good i'll stick with what you sent me thanks so you know it's weird because i'm not to mention last names here but we both know chris one of the sellers we really like working with yeah um we bought a few assets from kim and i i bought a few assets they were a little bit below where i my bid number just because i trusted him right um going through that seller has never been a problem where there's other sellers where um even the numbers are good i sometimes be away from them yeah um but chris has been such a good person to us uh fair honest up front um patient idea where we're doing it ira minor it was called all kind of health and he was able to come through and kind of hey listen i get it just keep me impressed what happened so yeah sometimes a seller makes or breaks a deal um yeah sometimes deals just look good but you question what else are they hiding yeah um they're still out there we kind of beer away from for those reasons so for me sometimes the seller is the key reason why i'm going to look at something deeper and there's other tapes that we both get that we kind of ignore nowadays right because it's out there everyone has the seller doesn't know what they're doing the paper is kind of crazy um or we know the fact that pricing is high in that seller yeah or or it's a brand new seller or somebody that wants to broker the tape i don't necessarily have a problem with brokers um but you've got to if you're getting broke or something you've got to be able to back it up 100 percent if this is a daisy chain then yeah i'm really sorry it's just i want to make sure that i get the collateral yeah and if you're going through a guy through a guide to a guy then no so and i know repeat this before so i apologize for this listen to it brokers don't often know they're actually brokering or in a daisy chain right they hear sellers rap they hear on direct seller they hear on the seller more likely they're not the seller most sellers don't chain their stuff out it doesn't work that way there are some that do um so whenever you get a tape and you're from either on director cell or seller's rep you got to ask some questions guys and ask questions like who's the service running where the cloud file is and things like that to kind of find out if they don't know and they don't work to find out most of there's a problem so what other questions do you have any other questions you typically ask to kind of narrow down brokers um no asking about the collateral file is a big one and the servicing file as well and that's something i have done more recently um i've got actually uh a guy that was referred to me from tracy tracy rui um and uh he's bringing me seller finance deals cool uh and so again in that sense it's kind of basically he's acting as a broker and again like i say i don't necessarily have a problem with brokers he's newer and again that's fine but i need to make sure that everything is in place so he he brought me a deal last week it's in pennsylvania which again is a state that i typically steer away from numbers are good uh house looks good everything looks good so i had them send me all the information like i said i can be talked into something if if everything looks right but he brought me all the information i was reviewing it everything looks great except the the one thing that's missing is the note which is kind of important uh and in pennsylvania it's actually critical we have to have at least a copy of the note along with the loss noted after david and that we're not sure if that's going to be available or not so if if we can find it great we'll go ahead with this deal and it'll be great if not unfortunately it's a dead deal [Music] so brokers if you get a tape of assets linkedin facebook whatever the first thing you've got to make sure if they sent you a tape without nda red flags should well yeah um if i'm saying tape nathan i'm not nba in him because it's no sense we know each other relationships there but someone's sharing a tape with you that's not nda question that first off it doesn't work another way you can figure it out is queue for funds poi um pos kind of stuff most sellers don't care about approved funds you don't perform your blacklist you're off the table so just be careful that kind of stuff so we bought from brokers you know there are some really good brokers out there and it's the brokers who have great connections um we have a broker that actually works a deal out and sends us the details of the deal if we buy it we're gonna pay three four thousand dollars for booker fee no problem with that they did all the work for us yeah um we have brokers who just have direct sources of assets that you know we may not have the connection to for whatever reason silver fines world's a completely different world than our our financial institution one yeah whereas our finances they may actually be doing their own skip tracing and data scraping with that which is interesting we're looking at getting into more into that um but yeah if you're brokering or trying to get into the brokering space not understanding the note space you've got to learn the basics if i go to you and ask you is it a mortgage or a contract and you don't know that's a problem yeah because i'm going to bid differently if if you don't know who the servicer is how do i know that you are direct to seller and why is director so important you don't know how many other brokers are between you and the seller that tape may be three years old and someone put it out there just hoping to get a connection and trying to build a rolodex up yeah so cool so we actually had a good question today from an investor that we had a call with um and i wanted to go over with you and see your point of view they want to learn about how to present an offer to sellers they got the point where they felt they can evaluate nasa they feel they can come up with a good bid okay but they wanted to present the offer in a presentable way a really good indicative offer they're asking do you put a letter together do you you know how do you look professional before i put my thoughts what are your thoughts on that should you put a formalized letter together where does professionalism appear in your eyes uh it's a good question um i think part of the thing to remember is that uh this is it's very much a relationship business yeah so so you're not necessarily trying to impress with your materials uh you should be trying to impress with um with the relationship and specifically about uh your willingness and ability to perform um if you put in a bid and it gets down the road and you know you're a day or two away from funding and then you pull out that that speaks way more than a fancy approach to to putting in your bid so that's that's the main thing i think to remember i i put in bids all the time where it's just um you know one or two lines in an email uh that's that's incredibly common uh that's not a big deal in fact i think really the only time that i would put it on to a spreadsheet is if i've got say more than five or something like that yeah just because it's it's more organized and easier to read but if i'm bidding on one or two loans no that's that's just an email i maybe the only tip i would put in there is um this is something i learned way back when uh just kind of the psychology of negotiating is when you're talking about um putting in your bid um instead of saying my bid is 50 000.

instead of just writing 50 in the letter k i'll actually type out the whole thing so i'll put a dollar sign 50 comma zero zero zero dot zero zero and make it look as big as possible and and does it make a difference i don't know but that's that's something i learned a long time ago and it's just kind of stuck uh and and this this person's coming from the real estate world right where they have to make a nice presentation to the sellers a lot of time even homeowners are getting letters from oh can't wait to we've raised my kid here our sellers in our world outside the seller clients world don't care they're not looking to negotiate with you and say hey listen let's get a phone call and talk now start fighting it's a little different right you can kind of gab with them and explain things with them but when you're buying institutional loans you're not going to get a phone call and shoot the breeze with them um i i share with her my thoughts professionalism is really on the bid being where it's at right now if you make an offer on an asset it could be both ways way too high you're being a you know a three percent coupon rate at 95 percent of the loan they're gonna laugh at you the whole way home and know the fact you're not professional and sell it alone laughing right versus you're buying an eight percent coupon and you're trying to bid sixty percent of it they're gonna at the same time think you're not professional either because you don't know where you're at you're throwing numbers out there so me the bid actually if you can't back up the bit right right so if i put an offer out there and see where did you come across that bit number hey i'll explain my bid if you don't like it it's fine but hey listen i did 68 because x y and z where if you come back to you say why did you bid 65 and you said well you know i did 60 of or 75 that doesn't really do anything so your bid offer is the professional part for me is if you present a accurate bid and define it with background and say listen this is how i came to it that to me is the most professional thing most of my bids like you said or emails yeah you know here's my offers here's a spreadsheet here's my offers spreadsheets or i'll put if it's a couple loans i'll put that into an email as well it's not formal right only all i had in there is my list of what i need i have you know things i need to make sure that i get such as a cloud file and service or your notes and something like that you know we have a whole list of 13 on our website of things i asked for that that to me is not to look professional but just to get the items i need so if you say yes to it i want to make sure you give me a service notes and whatnot right so um so so anthony's motivated um he mentioned next time spell it out and put the number in parentheses as well so sure you know hey whatever way we can get across that's the bit number yeah one of the other ways i always um you know read about net uh never split difference is never come across as an even number yeah that's a funny right forty nine thousand eight hundred and ninety six dollars and twenty three cents yeah it looks calculated right it maybe is but it looks specific you know where it's like listen this is calculated based on numbers if you come across 50 000 it may look like you just spit a number out and you look negotiable right where if you come clean and say this is my number well there's some thought into this so yeah so let's take another example too is uh just going again going back to the relationship thing um so i mean there's guys that i buy from all the time on a really regular basis um so much so just this happened just this last week where um i got a tape from a seller who most of those loans that they sent aren't going to be sent out to the public for another two weeks so i kind of got first look at what was available so i put in my bids i was hoping to get more of them but i i ended up with just two um the price that we settled on uh i know and they know too that if they put it out to the public in two weeks they'll get more for it uh but but we've got a good working relationship they know that i'm for real and that i said you know i'll i'll give you this much and i can close next week and uh and they know that that's accurate because that's what we've done in the past so you know they said okay so based on that if you can close next week then yes we'll give you that price we know that we can sell it for more in two more weeks when they send it out to public and i say yeah i know but the thing is they risked that too right they may be able to get an offer it's higher than yours but they don't close or the problem or concern or issue yeah um where hey listen these guys are closed right we've done offers of assets where the sellers listen just give me your best number we know you're close just give me your best and highest i don't want to negotiate just give me your number that works yeah here it is great close on it right and that's what we do yeah and building that reputation for yourself is really really important uh and just making sure that everybody knows and if you're not gonna close just be open and communicate hey listen that's what's going on yeah be honest about that as well uh like you say an ira snafu you know you know what funding is going to be delayed by two weeks we've got the ira that we're working with this is the company uh you know we're having to comply this way in that uh it's for sure for sure it's coming we just have to go through this and it's going to be another two weeks yeah most of the time that's going to be like oh okay no problem yeah um if there's any other questions um what's your type up too if there's any questions guys feel free to jump in here i wanted to kind of break it down because that was the question she had uh where she got stuck on the fact that how do i present that with a fool um and weirdly enough it's not as clean cut as typical real estate right um it's really used to contracts and formalized stuff and it's an email it's crazy but it's an email right but yeah you're like it's not like real estate where you're sending in your picture with a letter about yourself and this is why yeah yeah um and you know yeah and not even reason sometimes right sometimes you send an offer so listen here's all the rehab possibly to go along with that justification it's like listen get my numbers yeah and yeah the next step right so those who haven't been on an asset understanding your indicative offer you're still subject to a bpo cloud overview and hopefully no seller listening you have plenty of reasons to get out of deals too there are so many ways to get out of situations legitimate reasons right you've been in an asset they say where's 50 you think about 50 you come back at first one or the house is missing listen the value is not there now the house is worth 45 you've been 50 you better be coming down you remember a little bit don't be just trashing the deal right right right um if it probably retired you shut your mouth and you bought a deal right exactly but if the collateral falls missing something yeah right that's a key right if there's title issues or you know when you come back with taxes there's always usually something in there that you they they can get you have a deal as long as your number's right the first time if the deal ends up being what you thought it was yeah you shouldn't be backing out and within reason and and i've had that where you know um we bid on it and then i get a tax bill for for a 2 000 tax bill listen a 2 000 tax bill is not a reason to to back out of a deal and if you start pulling that kind of thing that you're gonna have a lot of trouble and headaches just getting deals at all uh if you're gonna call out for a real small tax bill so we also had a situation with um a water bill came across like five six seven thousand water bill yeah and and what what do you do in situations like that right you get a water bill that comes to your hands and you're like holy god i agree the situation it wasn't on the o and e get all the county records you come back to him so you know what do you i know i've run that what have you done institutions like that where you call the county and found it out oh when he didn't have it on there or whatever how do you present it to the seller most times i just eat it and i just say you know what that sucks it would have been really great if i'd caught that beforehand uh within reason you know there there have been things where it's come up and um something that should have been on the title uh that wasn't a a water bill it's mostly most time is there but it's not terribly uncommon for it not to show up if they've put if the county has or the city has put it as a lien then for sure it'll be there if they haven't registered that as a lien um it very well might not so in most cases i just eat it if it's you know kind of more extreme case and there's something that actually wrong with it uh then i'll go back i have gone back both to the seller and to the title company if it's something that should have shortened up on title and it's not there i'll go back to them and say hey this should have been there uh it was registered lien and you didn't catch it i've i've come back to the seller and so listen guys this came across you know as long as it's not a high percentage of the purchase right but if it's on our house and it's 12 grand water i'm gonna go back if there's a thousand dollars i'm not gonna worry about too much don't eat it you should have some kind of thing gene just mentioned that um water bill's been a problem for him lately well um and it for whatever reason right um faking homes or whatever and i think that for me as long as you catch early enough it's not a huge percentage go back to seller explain them they may or may not know about the problem yeah they may be an eyewitness but we'll often go back and listen i've split the middle with them i have done things where i've gotten to take off the whole thing like listen this is 12 grand the house wearing 50 grand yeah sometimes they'll split it somebody just negotiate you may not be able to you may be and you may say listen this just kills a deal for me all my numbers yeah i've had it where they say okay listen you know unfortunately i can't send you any money but we can we can give that to you as a credit on your next one yeah that's that's not my favorite one uh but okay you know but whatever you can negotiate yeah gene said that um they came up after they bought it they didn't uh look they didn't see it as they looked in the lean situation they didn't see it that sucks right that's um and sometimes they don't you know i've been wearing situations where they actually don't file the lien which is crazy the bill accumulates and they don't bottle in it's i was saying water bill it should go with the borrower but it's another dozen so um county yeah so i think for those out there you know we're giving some scary things here um these are these are not all the deals okay so hopefully you're not you know we're not fearing the worst here but just kind of monitoring and see what's going on um see if these um anything with no celebrations if it's vacant give demonstration when it's occupied um so i think you know for me what we're looking to do is put the team around you and to find the deals you have the both security in because those are deals even with the smallest margins sometimes work um oh she said that one of the water bills 189 which ended up over 900.

um gene how much was the purchase price if you don't mind sharing so you know getting those kind of people in there getting a hold of county people um so those who are listening you can definitely call the county or the lien company and ask what the water bill is um and find out that kind of stuff just like taxes you can find out that the tax bill yeah um and what not um moving forward do you have certain counties in the country that you identify as being those areas where you're buying more of because the teams because of what you've success that may supersede numbers all the time now let me see here so actually um i still continue to buy in texas i just picked up a few i got uh an el paso nash temple houston uh port arthur i i i like texas um like to say it can be hard to get uh but part of part of why i like texas is because i've got a good attorney there san antonio like i mentioned i've got a great realtor but if and when they come up uh yeah otherwise actually houston i just picked up a really good um realtor there too are these performing notes or non-performing yeah okay yeah in fact that uh houston one uh it looks like we're gonna have that for the july auction that might be my two month oh not quite i bought it in may so for those who don't know nathan's more he likes to turn things ass that's over he doesn't hold things long-term so getting money and getting money out is what do you think he looks for so um which is cool right it's a different mentality we have performers and we love our performers the way our structure goes um and whatnot so that's shifting some for me as i go into the fund it'll be more long term but for now it's it's the quick turnaround how about you you got specific areas yeah yeah we you know um we love to buy in jersey in areas we like um because of where we're at we have a network but like you we most of the time avoid it we've had our biggest home runs in jersey just because the seller didn't know any better um hopefully paul's not listening um right and it was just because it was in a city area um and it was short to foreclosure um but we we do avoid pa to the most part we have a we have loans in pa but um we're not heavily looking at it but we do look at the most the taxes in tennessee's and alabama's and the florida and the carolinas um we'll also look at like montana and missouri and midwest area we don't buy much in california um i don't buy in illinois um definitely buying cook county uh sorry kathleen but you know for me you know i pushed away from ohio um laws timeline cost property taxes water issues yeah um even in the end i've kind of pushed away a little bit not as much as ohio but as you and i began ohio was majority of tapes you know um columbus was huge we love columbus for a long time um you know those kind of things it's like detroit michigan you know that we're more popular we're pulling out of those are you pulling out of areas too a little bit uh like you say ohio's getting tougher um yeah just some of the laws cuyahoga county has gotten a lot tougher yeah coyote county ohio yeah it's long time friends difficult yeah long time frames and foreclosure and the deed yeah and and there was a new law there i don't even remember what it was what doesn't was it insurance or oh no it was a bond the bond ten thousand that's been on the books for a long time so those who don't know there's been a book for a long time there's still enforcement in most counties i think he does if the property is vacant in foreclosure they they require you to put a ten thousand dollar bond up front and they pull they they uh draw down from it for property issues for mo long all stuff and they can use money as they wish yeah to draw down from um yeah if it's vacant and boom and you have to register it you have to register bacon you have to keep no yeah no it's just not just it's tough like imagine cook is just everything about it the county itself just getting any kind of documents uh processed at all it's just a huge headache water bills in cook is just they're ridiculous uh lawyers i find actually i've got a good attorney there now but i don't know how much we'll work together and now and then the other thing that's been really really difficult for me in cook county is realtors i have i have had properties several in the la over the last few years and i've never been able to get a good realtor in cook county and so if everyone's got one i've got a two more one of our one of our mastermind uh members is actually in cook county those who are not from there we have a group that meets weekly um and discusses goals and we're done we have a lot of awesome stuff so if you're interested get a little website or shoot me an email but yeah one of our members is actually uh uh she's she's actually a uh realtor in cook county in chicago okay i think she's in the southern side so okay um but i'll connect you uh yeah that would be great it's just hard right it's cook county it's just a long tedious process so it is it's tough and then new york uh gene i'm gonna be talking to gene later about maryland or sorry maine oh yeah maine's got all kinds of funky i don't know if they changed the foreclosure law i think they did i was talking to um someone recently and you had to bring the originator and all the previous note holders in the court in person yes to foreclose that's still the rule it's ridiculous and including ones that no longer exist and so how do you do that i don't know but the the work around there is a work around i'll share it is is if you can get back to the originator and just have them assign it directly to you that's the work around it it's not good but it's assignments on the books how does that it's a it's a corrective assignment it will make it so that you are now it's just a direct line so they have to appear then as well still the originator in you gotcha you don't have 15 people between them right so it makes things a little easier but it's a little bit of a headache yeah northeast northeast is tough yeah just the the rules around foreclosure are long and arduous and difficult yeah so i know there's a couple conferences coming up um we're gonna see them up probably soon the next few weeks we're gonna have some um some additional services coming on um and some new people coming in um if there's a topic you guys want to talk about feel free to reach out um i'm checking out some of the numbers behind the scenes we're getting good reviews and people you know watching it after our live video which is awesome so well nathan man i appreciate your friday afternoon i hope you have a good weekend we have a three-day weekend down here i'm gonna take it yeah yeah take off monday for us um so everyone uh morally we can have a good time but remember what it's for um enjoy it um but stay safe everyone thank you for tuning in and we'll catch you guys next weekend very good thank you hey fellow no investor are you looking to learn the basics of note investing so you can get started however you don't want to spend a few hundreds or thousands of dollars and hours online on some training program have you thought about attending a notes conference however you don't want to spend the money or the time away from your family well we have a tremendous beginners video series of 20 different topics with each video being less than 15 minutes this means each video is less fluff and direct to the content visit www.jkpholdings.com beginner dash series to learn more again www slash beginner dash series learn about celsius and we left at 43 degrees fahrenheit and i came back or i got called tuesday morning my neighbor says listen it's been 90 degrees and everything's burning plants are burning right now in four days unbelievable heat straight that came through so it's been a whirlwind we got back open the pool all of a sudden all ready for a nice 45 degree weekend like oh my god yeah that's what happens when you live in the north east you get this kind of thing so what kind of temperatures you have are you guys currently like yesterday and today it cooled off big time on wednesday it was it was nice warm sunny a little humid not too bad uh like 30 celsius so like upper 80s okay and now today it's like 10 degrees right now so it's like like maybe 60.

55 60 somewhere in there so it's it cooled off a ton uh but you know by the end by middle of next week we're back yeah it's interesting too because you know this weather thing goes crazy for us and you know as we talked earlier monitoring the weather from the south is different from whether it's north we're probably years ago where people weren't thinking about winter storms or whatnot um and i don't think about hurricanes right so when we have property in the south i don't think i'm boarding them up i say hey listen that's florida and it's oh crap we gotta make sure we get on top of that i mean same with you guys like you could be having a really cold weekend and it's burning up there it's just yeah unbelievable so it's interesting you know we talk about weather but it's it's like you say it's kind of significant because i need to know for example i just had last weekend i've got a couple of properties in lake charles louisiana and last year they had two hurricanes come through a month apart and then just last weekend they had more heavy heavy rain and flooding so oh my god just you got to kind of keep your ear to the ground and see what's going on all over the country yeah so that comes almost full circle what we want to discuss today and guys we're going to keep it light i'm just trying to get back in normal stuff uh we got a lot of things going on and um it's a holiday weekend for united states and all stuff um and one of our guests who are joining us today just couldn't make it because the holiday weekend so we want to talk some in light but really kind of hit home on some things here um i think for a lot of people you know knowing what to get into what not to get into um and cody cox if you didn't see the message wish i haven't broken the man in the chat so uh cody always a good man thanks cody so uh yes happy birthday nathan by the way everyone happy birthday all the good stuff that was yesterday yeah yeah so belated birthday everyone so how was your birthday my man would you guys do anything special it was really good actually i i gave this is one of the perks of working for yourself so i i went for a nice run in the morning actually i took my girls to school which my wife usually does but i'm like yeah i'll do it i took them to school came home went for a run uh just kind of had a i didn't really even get into the office until around noon and then uh just i had given myself a light schedule because i'm like it's my birthday so just kind of took it easy it was fun i had a good time how are you were you able to disconnect and then and relax yeah it was pretty good uh pretty good so it was i you know there's always something going on and you can all you can drive yourself crazy but yeah your brain doesn't shut off it's just yeah i think you're like oh crap you know you do show up a little while you start freaking out yeah um which is good right i'm glad to see you do that man we all need to do that when i was on vacation i was able to unplug weirdly enough panicking when i came back to the computer like hundred and some odd emails and whatever it was and like holy crap and that's like two days later yeah um thankfully team around me and my you know people who are taking over for me kind of helped out good talk about that kind of stuff you know we want to make our business easier for us um and putting the people around us that make it easier is key yeah even if you have one deal or 100 deals or 300 deals getting a team around you and that's not just internally that's external as well yeah yeah definitely so share a little bit you know we want to dive into our deals and i'm going to bring up a question that someone asked yesterday we want to address but here's something about you know we're talking offline about what is our you know our favorite deals and i want to make sure we're clear everyone these aren't our most powerful deals they may be but there's a reason why they're our favorites what was about it that made it so easy to get into so yeah and you know it's really interesting when you after you've been um working at this a little bit you'll get a tape and um i can go through a tape much easier and faster now than i used to be able to and and part of that is just being able to look at the numbers a big part of that one of one of my first things that i filter is states so for example for me new york new jersey they're they're immediately and i just i don't even look at it because i'm just not interested i no matter what you know if somebody came and said listen i've got this really good deal and this is why and they can make a case for it i'd listen i don't know that i'd desperate for it but i'll listen yeah but if i just get a tape forget it you know those ones are off the list right off the top and for those who are not familiar why why is that off the list for you so part of it uh had to do with with you know rumors and and just hearing from other people's experience and then part of this from my own experience so i had heard that new york was you know terrible long foreclosures this and that and so i i thought okay yeah no i'm not interested i'm not gonna do that a couple years ago i had um both in new york but not in new york city one is in just outside of niagara falls uh and the other one's nearby it's not too far from from niagara so so you know different part of the state not new york city nor close to the boroughs and they were right at the end of foreclosure both of them so i'm like you know what yeah that sounds good that sounds about right wouldn't you know one of them uh declared bankruptcy the day before or two days before the sale so that got off the rails and and we had to deal with that the other one uh close to the end of foreclosure in any other state meant i still had a year and a half to go which i found out the hard way and and we had to kind of deal with it take it as it comes but so my experience is you know what it's just not worth it for me yeah i i've got now i i went through a couple of different attorneys just on those two loans so i didn't have an attorney in new york uh i do now uh you know a guy that i can work with and trust and know that he'll do a good job but getting started somewhere new is difficult um it's not impossible but uh but you know it's a consideration so i'll look at a place and i know okay so i've i've already got my attorney set up i've got a good realtor in the neighborhood i know the area maybe i've been to the city and i know you know what side of town to look at that kind of thing and that that will help kind of direct my decision maybe i've done another property in that uh in that city or another loan and so i i just have you know a better idea of just kind of the local feel and what happens there and that will definitely guide my decision and from you know i got horror stories of people selling reo's in new york as well right um and we've had a couple in new york but they're performing so we haven't had that issue um anything we did now before we actually sold off luckily um so when doc's really wanted new york so we're able to sell a small pool of assets to somebody um because we didn't want to take reo of the because the issue of selling it um it's a headache compared to a lot of places you mentioned having your agents right having an agent and having a good agent are completely different worlds oh yeah um and when you get a hold of someone that's good you kind of want to stay with them and the only way to stay with them is to buy assets near them exactly so you may buy a little higher than you want but your team is there to really trust and know what's going on um definitely so share a good one where where was the situation where you bought an asset that maybe the numbers weren't perfect you know you don't need to give me the numbers but tell me about the deal um so i've got a couple here i mean i'm looking through my list i i'm not sure what you do dave but i keep a list of um i've got kind of a main spreadsheet and with that i've got current loans a different tab for just kind of rough figures on on what i'm kind of expecting to happen um any monthly payments that i'm collecting and then further down the line there i've got uh one that i just it's called done owned so ones that i have had and now have sold and then beside that is done figures so it's it's that same rough figures that i had but now it's the the real numbers so okay i scroll through that and there's a couple hundred on there which is awesome to see and it's it's really cool but it's when you go back and you're like i remember that one oh yeah that one oh yeah you put comments on there right you put comments what you did didn't like about it just recall it yeah right near the end there's there's uh how it was sold we actually uh every year my wife and i will go through this and and we'll separate it out so it's it's organized by year and then within that year i'll say okay so these many uh they're highlighted you know a light purple and those ones are the reos that we sold and then the the green ones are the um performing loans that we sold um payoffs um ones that sold at auction things like that and so we'll we'll have them kind of separated out so we can see at a glance you know what's working what's not what's our best um our best returns and which are our worst returns and where did the surprises come in and all that kind of thing so just real easy quick reference yeah we have something similar um we got the point where we were able to check uh a drop down and we choose it and move those assets to a different tab so that we'll see any assets we sold on one tab and it automatically populates based on a drop down so every asset we see is in a master list right and we can see where it is and go to that tab and say okay what do we like about that one any answers we saw we'll move over as well right then we reviewed so we can go back and say okay we like this asset but something happened here and if it's an area we like we can revisit at any time and go hey listen seller do you still have it um and that's key right yeah um in our mastermind we're talking about don't always and quit on a deal that someone that you lost a bid on go back to the seller reoffer your offer a month later and see if the assets still available yeah it happens all the time where where deals fall out sometimes they'll be looking at some another buyer will be looking at a larger pool my experience with larger pool purchases is is they fall out a lot uh yeah it's it's much easier to close a deal on five or ten notes than it is on 50 or 100 so those ones will fall out all the time so yeah that's a good point go back and check it yeah so i'll share one here that uh this going back we purchased this one in 2016.

and i like this one because um for a few reasons it it paid out well which is great that's always happy um this was earlier uh on and things and so i was kind of getting the hang of of foreclosure processes and different states and things and this one happens to be in san antonio texas so it was a good um just a good experience of going through the process of a foreclosure in texas and we talk about it being this fast and everything and i've never i don't know what you did but i've never had one actually complete in two months flat i know that's what everyone talks about it i've never experienced that it's it's never been that fast i've had it happen in uh three or four months but yes but i've never had into no no i think 68 days is my record and that's you know in theory you could do it in two but you're you're having to hit the dates exactly right and buying exactly right and filing exactly right yeah because of the dates and when they go to auction yeah there's all the auctions are once a month so just that alone if you're if you missed the deadline and you've gotta put it in for the auction it's two or three weeks in advance so it's gotta line up perfectly to get that two months um it's not impossible but i've never had that go that fast but anyway i'll share this one because uh because it's in san antonio and um first of all i like i like san antonio it's a great city and it's uh it's always done well for me what i like about this deal what really came of it was a like i say made money and then number two is i got a great realtor out of this one and we talked about realtors versus good realtors and i've got a great realtor in san antonio um and this is back in 2016 and we're still working together now uh we just had a deal in fact uh a little tip on on how do you keep a realtor happy so i had a foreclosure that we were working on for the whole last year and because of the moratorium it kept getting bumped and bumped and bumped and bumped and my realtor was kind of looking out after the house and making sure that everything was okay and it's not getting vandalized and that sort of thing so he's putting work and time into this expecting that he's going to list the property for sale i did not expect there was not a lot of equity on this so i really didn't expect auction that somebody would buy it at auction um and then of course somebody did uh which is great for me uh but not so great from our realtor because all that time and effort that he put into it then is all for nothing yeah um so i let him know right away and i said hey i'm really sorry i did not think this one was going to sell at auction at all but it did thank you so much for your time and your effort and then i got him an amazon gift card and i sent him an amazon gift card as a thank you um it's not a big thing and it wasn't a whole lot of money on that gift card but it's something and he knows that i appreciate it and and uh we'll be able to keep working together you got to keep the good realtors for multiple reasons right um for future properties and future deals especially in texas right if they get a seller finance deal when they throw it your way that's like gold yeah um so yeah texas is a hard state because a lot of people want it the pricing is always really crazy um so did you get a decent pricing on when you bought it we did this back in 2016.

okay i got the numbers here i bought it for oh man i got a good deal i paid 17 000 for it okay uh we had uh at the time we had a cmv of 50. i it's sold at auction and this is this happened this has happened a couple times now to this realtor sold at auction where's my number shoot i don't have it here i have the profit number so it can kind of extrapolate but anyway my my overall profit net profit was thirteen thousand dollars uh on a 17 000 purchase so the total roi was like 68 so you know pretty pretty good um very you know a happy ending for that one that's where i met that realtor and then that's the guy i continue to work with today in san antonio so that's it's just been a win-win kind of a relationship and it was a good note you know i one of my favorite deals was a deal that i i feel confident about um and i learned a lot about the borrower and it was in it was just outside columbus ohio it wasn't realized i it was a good return wasn't the high return we've had before but it was a really good return and i liked it because a was a condo it was in a condo flex and the values when you're in a concentration you're really good strength of values so when we're in that spot that values to me even if they fluctuate a little bit it was based because the unit being different from another unit it was really really good for that so if you see a condo it's really often a buy good buying because you can really comp it well yeah plus it was next to one of one of the first terms i worked with who i loved still today um and he actually moved on uh and his junior partner actually took over most of the files um right inside columbus ohio um and we had an agent that was um a good agent over there as well that both of us work with and the combination of those three made this deal stick out to me right i had an agent who could work with attorney eight investors who couldn't do any kind of re-keys and trash house we needed i had solid comps and i had an attorney that said listen yeah it's ohio but we'll get through it um i knew the borrower was a landlord which made me even feel a little more stronger um because when i found out that it was habitable there was someone living in it told me the fact that it was probably knowing the fact of the land illustration told me something else right the reason i knew was landlords tax records were incent somewhere else but the fact the property was there okay um they did some quick research and the person the owner was younger wasn't like an older person a younger child right and um during their 40s that deal was attracted me for that for those reasons having the people in place i knew the fact that even the numbers got tight i had the people in place to kind of help me out make sure the deal was solid i think for a lot of people you know reaching out and meet new people is difficult um start with the attorney right get in the phone call we don't work with a ton of attorneys right you may work with two or three estate get on the phone feel the ones that are the most controversian quinn is one that comes out a lot of people talk about great person great work with her she gets behind some things but you know at the end of the day she has your back um and things like that so if you want to reach out with that uh i know mike nazak is on the group too if i need to have a deal with his area and that's a strength i'm going to use that many of you have a situation where you can reach out and talk to another investor or a rehabber or if you know somebody local focus on those areas if you can right then maybe your backyard it may not be just like me and nathan we buy in our backyard just not happening so it makes you feel most comfortable going outside your boundaries so having those teams together provide you the opportunity to have the best opportunity for success even if the numbers are great doesn't always mean success we've got a deal where i bought it for 50 grand probably worth a buck 50 and the young pay balance like 90.

way underwater i was so solid and things it turned to be one of our worst deals it's just there's so many problems delays issues that the numbers weren't good and the reason was i was in an area that i was didn't have an agent it was in just a really weird part of ohio and in i went for it for the numbers um understandably but i didn't have a team and that's what differentiates things a lot so yeah don't burn bridges as anthony mentioned in the chat box and connect with people right connect with investors so is there another deal that that was there a seller right um or you know i have one in my mind as a seller was reason i bought it or an opportunity that was around it that made it attractive to you besides numbers actually he's here's a good one um this is a good example one one that i wanted to share is so this deal actually was brought to me by one of our friends liz and she said hey i've got this new seller that i'm working with um i think it was her and kimberly and i all put in bids together just so that we could have a larger bid collectively so we could get better pricing uh and and so that was that was the first thing so first of all it comes from liz and i trust liz and i like her a lot and so she's she's fantastic and second of all when i was going through tape i noticed something and watch for stuff on the tape because you can learn all kinds of things what i saw on this one this was a contractor deed in indiana and um i think it was like i don't remember what month it was but but the tape the itself was was two or three months old uh and i knew that because on you don't get this all the time but on this particular tape it had data data date or whatever or yeah the date of deposit yep and it was like two or three months old um and i noticed i noticed that that it was a couple months old and then i saw that this one loan it looked pretty solid it looked like it had been paying pretty solid uh there was a pay history on there but because the data was a couple of months old we were listing it as a non-performing note and i went because just the data just quick formula yep and i and i looked at that and i said i i have a very strong suspicion that it is not non-performing it's actually been performing this whole time and they just haven't updated it wow so i did so i put in my bid here's the numbers on this so uh unpaid balance was 76 000.

uh on uh cmv of 75 so there's really no equity at all a little bit underwater just barely i was at an eight percent interest rate you know the kind of things that i like to see when i'm looking at uh at loans a higher interest rate i picked it up for 35 500 which was good that was that was a good price and that was partially because we did it as a as a group bid i then i sure enough i contacted the borrower and uh found out yes they had been paying so i got the updated pay history from the servicer uh and yet they've been paying the whole time so there's no break there at all so i think i actually sold this one back out to i think it was to first national okay um turned it right back around out to those guys as soon as i could uh and we completed a deal they they bought it from me for 56.4 whoa yeah so i mean i hardly had any expenses on this some due diligence and that was it and then and my turnaround time on this was four months so i was able to turn it around for a really nice return on that in just a few months just because i was paying attention and i saw that the data was old and uh had the suspicion that it was performing and i was right and i i still would have been just fine if it wasn't um the numbers were still good if i if i had to foreclose and if i had to take the property back but uh but this way it was just i had 263 dollars in expenses and that that's it wow so that one that one worked out really well that was the favorite note guys so what happens is so those who are maybe not you know ultra familiar with this is when they put a data tape together they give a cut off date right and they say this is the cutoff date of all the data anything newer is not gonna be on here any older well sometimes it get to a broker a little late or the data got through and they got distracted and eventually gets the broker and gets sent out to all of us so that data may be old and if you go through the tape and you see multiple assets on the tape that has the next due date being two months ago three months ago and there is nothing current and you look at the pay history if it has it and you see a line of pay history looking good be a little suspicious that that may be performing right and in my formulas i calculate it's non-performing because it's three months old right so just be mindful of that kind of stuff including a nice little caveat to those looking at stuff look at that the last date of all the assets and see where it is because not every tape we get has a cut off date um look at the next due date all of them and see if there's anything past it um you can always ask the seller hey listen is this the last pay issue on this one is right they're not going to pay attention and i i i don't a lot of the time that doesn't happen very often but if i see something like that i'm not going to say anything i'm not going to ask that just well yeah that's the point i don't want to raise uh any anything where they go oh wait a second no no no that's old let me get you the new data no no no i'm good i'll stick with what you sent me thanks so you know it's weird because i'm not to mention last names here but we both know chris one of the sellers we really like working with yeah um we bought a few assets from kim and i i bought a few assets they were a little bit below where i my bid number just because i trusted him right um going through that seller has never been a problem where there's other sellers where um even the numbers are good i sometimes be away from them yeah um but chris has been such a good person to us uh fair honest up front um patient idea where we're doing it ira minor it was called all kind of health and he was able to come through and kind of hey listen i get it just keep me impressed what happened so yeah sometimes a seller makes or breaks a deal um yeah sometimes deals just look good but you question what else are they hiding yeah um they're still out there we kind of beer away from for those reasons so for me sometimes the seller is the key reason why i'm going to look at something deeper and there's other tapes that we both get that we kind of ignore nowadays right because it's out there everyone has the seller doesn't know what they're doing the paper is kind of crazy um or we know the fact that pricing is high in that seller yeah or or it's a brand new seller or somebody that wants to broker the tape i don't necessarily have a problem with brokers um but you've got to if you're getting broke or something you've got to be able to back it up 100 percent if this is a daisy chain then yeah i'm really sorry it's just i want to make sure that i get the collateral yeah and if you're going through a guy through a guide to a guy then no so and i know repeat this before so i apologize for this listen to it brokers don't often know they're actually brokering or in a daisy chain right they hear sellers rap they hear on direct seller they hear on the seller more likely they're not the seller most sellers don't chain their stuff out it doesn't work that way there are some that do um so whenever you get a tape and you're from either on director cell or seller's rep you got to ask some questions guys and ask questions like who's the service running where the cloud file is and things like that to kind of find out if they don't know and they don't work to find out most of there's a problem so what other questions do you have any other questions you typically ask to kind of narrow down brokers um no asking about the collateral file is a big one and the servicing file as well and that's something i have done more recently um i've got actually uh a guy that was referred to me from tracy tracy rui um and uh he's bringing me seller finance deals cool uh and so again in that sense it's kind of basically he's acting as a broker and again like i say i don't necessarily have a problem with brokers he's newer and again that's fine but i need to make sure that everything is in place so he he brought me a deal last week it's in pennsylvania which again is a state that i typically steer away from numbers are good uh house looks good everything looks good so i had them send me all the information like i said i can be talked into something if if everything looks right but he brought me all the information i was reviewing it everything looks great except the the one thing that's missing is the note which is kind of important uh and in pennsylvania it's actually critical we have to have at least a copy of the note along with the loss noted after david and that we're not sure if that's going to be available or not so if if we can find it great we'll go ahead with this deal and it'll be great if not unfortunately it's a dead deal [Music] so brokers if you get a tape of assets linkedin facebook whatever the first thing you've got to make sure if they sent you a tape without nda red flags should well yeah um if i'm saying tape nathan i'm not nba in him because it's no sense we know each other relationships there but someone's sharing a tape with you that's not nda question that first off it doesn't work another way you can figure it out is queue for funds poi um pos kind of stuff most sellers don't care about approved funds you don't perform your blacklist you're off the table so just be careful that kind of stuff so we bought from brokers you know there are some really good brokers out there and it's the brokers who have great connections um we have a broker that actually works a deal out and sends us the details of the deal if we buy it we're gonna pay three four thousand dollars for booker fee no problem with that they did all the work for us yeah um we have brokers who just have direct sources of assets that you know we may not have the connection to for whatever reason silver fines world's a completely different world than our our financial institution one yeah whereas our finances they may actually be doing their own skip tracing and data scraping with that 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