Inside NoteExpo 2025: Why You Must Attend | Real Estate Notes Show

Episode: Inside NoteExpo 2025: Why You Must Attend | Eddie Speed Nathan's Goals and Plans: - Took Eddie's course in 2009 as launchpad for understanding notes business - Attended first NoteExpo conference and was overwhelmed but engaged within an hour - Discusses networking and education as keys to success on show regularly - Emphasizes that net worth is determined by network Key Recommendations: - Get proper education before entering notes business - do not rely on Facebook or informal sources - Understand partials documentation and structure correctly to avoid securities issues - Start with performing notes and partials rather than non-performing notes as beginner - Use partials as liquidity structure to recoup acquisition costs and scale with limited capital - Prioritize in-person networking and relationship building over virtual communication - Verify proper agreement documentation when learning partials - verify sources of information Topics Discussed: - Blockchain technology coming to mortgage industry within 6 months - NoteExpo 2025 conference and its value - What partials are and how to structure them correctly - Current market conditions - thin non-performing inventory - Performing notes as better entry point than non-performing - Importance of confidence built through relationships and networking - Securities compliance in partial note transactions - Scaling notes business with limited capital Guest Insights: - Eddie Speed has purchased 50,000 seller finance notes and specializes in scaling notes business - Partials were pioneered by Eddie Speed's father-in-law 45 years ago; Eddie learned at age 17 - Started with less than $50,000 in Roth IRA and used partials strategy to build wealth - Non-performing seconds created a wave 15 years ago but is difficult entry point - compared to taking NASCAR driving lessons - Relationships and networking provide market confidence and validation of strategies - Current market is tight with performing notes being more appropriate than non-performing for beginners I have some friends in the industry that are the ultimate ninjas in the mortgage and banking industry for technology.

And within six months, we're going to have these loans on blockchain. >> Wow. >> Fantastic. Oh, that's cool. >> I've heard of that, but I haven't seen it done yet. So, that's that's an exciting development. That's >> So, my man Cade Thompson is going to come lace it up at Node Expo of what that looks like and something that they are doing in the mortgage industry right now. >> Wow. >> Very cool. Oh, very cool. >> So, so it it it its potential of revolutionizing the business is just beyond any scope you can imagine. >> And it needs welcome back to another real estate notes show. Alongside me, as always, Mr.

Nathan Turner, how are you? >> I'm doing great. I'm excited for today's talk. So, this is going to be good. >> This is something that we look forward to every year. this conversation with these guests. Listen, if you know anything about notes, this guests, these guests are the kings in this, right? And they're the kings for a good reason. So, we're going to skip all the banter and cut out all the mumbo because we have a lot of stuff to get to today. >> So, welcome to the show once again, >> Martha and Eddie Speed. Welcome, guys. >> Thank you. >> Thank you. >> Appreciate it. >> So, let's get started.

You guys >> Yeah, you guys, we're saying before we start recording, you guys don't age. It is amazing when I met you guys years ago. It's awesome to see you guys still healthy, looking great, and have energy that I'm jealous of. So, >> thank you. >> Thinking back, I I say this to people all the time, but Eddie's course was the very first one I took back in 2009. And like that was the launchpad. That's that's what got me into uh you know, understanding what notes were. I was creating notes, but I didn't know what I was doing until I took Eddie's class. And then that helped me understand how to do it better.

And it really just took off from there. >> Yeah. And for me, the first time I went down there, I I had a friend we all know. I went down for the first time like traveling to a conference and I was overwhelmed. I was. And then by about an hour into it, it was talking to everyone. It was amazing. It was so surprising. And I think that is something people miss out on um when they don't know what's out there. So, >> yeah. >> How do you And Martha, give us a little bit of background for those who are crazy enough not to know you. How did you get started in the space? >> Uh, well, Martha and I have now been married 43 years.

So, um, >> Wow. >> I started about 45 years ago. Uh, Martha and I were friends. We weren't really dating then, but we were friends. And uh Sunday afternoon I go to her house and uh I meet her dad who was one of the pioneers of the note business, seller finance note business overall. And he starts explaining to me this idea of being the bank, you know, and what that meant and stuff. And uh I would say 45 years later, I turned out he was right. >> What do you know? >> That's amazing. Well, uh, we can appreciate both your knowledge. You know, you guys both have keys to the space that is unmatched.

So, high five for your great work and giving back to the community, which you guys do immensely. >> So, one thing that comes up over and over again when you look up anything to do with notes is a lot of your conversations with people >> and from YouTube to podcast, everything else, you're known around the space. What do you think you're best known for in the note space? >> Uh, I would say two things. I would say that, you know, I've bought 50,000 seller finance notes and so I think people are in quandry of how you scale that because most people haven't scaled it. And I would say the second thing is the the go-to, which is partials.

>> Mhm. you know there now there on YouTube now there's a lot of people claim that they they started partials >> so >> they they didn't >> Yeah I was I was working for my dad when I was 17 years old right out of high school. Um and that's what I did. I I helped them with documentation to sell partials. Yeah. >> Yeah. >> And for those who don't know what partials are, is it complicated? Is that something a newbie should avoid? >> It's not complicated. It's very it's it's really simple. It's a really simple transaction. Um I think it's just a matter of learning the documentation and uh just learning what you're doing like anything else and there's a process to it and it's um it makes it quite easy and you know you you just got to it depends you know who you're working with too.

>> Sure. >> So you know I work with passive investors and that makes that makes it a little bit different. So, um, Eddie kind of does it on a little more commercial of a commercial scale like my dad did. So, I think the key thing with partials is is you do have to understand you you're probably not going to get this information on Facebook or um I we're all familiar with Facebook law, right? >> Yes. >> Yeah. >> It's it's a degree you get, Nathan. It's a it's a Facebook law degree. It's not a real law degree, but it's Facebook. The biggest thing with partials is is it could it could bleed over into something that's a securities issue, >> right? And you have to make sure that you have the right kind of documentation and the right kind of clarity as to the fact that of how the transaction is structured.

And the biggest thing that I always kind of worry about is I see these people posting, oh, I I do partials and I do this and that. And I'm thinking, well, either you stole our agreement >> or I'm not sure what agreement you're using because otherwise I'm not really sure that it might be papered, right? So, that's a little bit of a caution flag and it's not meant to say like only us can do it, but it does mean that, you know, it's a little bit like a driver's license. You kind of need a driver's license to go drive a car on highway, >> right? >> There is a right way to do it. And that that is such a key part of this whole business.

And and we're seeing that more and more these days with inventive strategies and things which can be great but it again it has to be done correctly. Uh there's a right way to do it and there's certainly a wrong way to do it. So make sure you understand the difference and then do it the right way. >> Yeah. >> Yeah. But I think for the most part, partials is a great way to get into this space to just get your hands dirty without having to deal with, you know, all this stuff of, you know, a non-performing note and things like that. Can it go bad? It can, but I I often feel that partial is a great way for someone to get started if they want to get started in the space as an active investor.

Would you agree with that? I would say 15 years ago there was some people buying non-performing seconds, right? And that was kind of a wave. There was a big wave out in California. There's kind of a wave up in your neck of the woods, David. >> And I would meet people that literally couldn't spell note. They didn't know anything about the business. They service or oversight or foreclosure management or any of those terms was like wouldn't register. it wasn't on their page. And then I would go ask them what they were trying to go start with and they'd say non-performing seconds. And I'd be like, >> gosh, that's like taking driving lessons in a NASCAR.

>> Yeah. >> You know, >> that's a difficult one. That's a lot of work. >> And so, so I would say first of all, I think that the the non-performing I I the non-performing is coming right now. The inventory is thin. >> Yeah. And I know there's there's a lot of Facebook cowboys that say this stuff, but I'm fairly connected in the business as you guys know. And it just ain't hit yet. It just the inventory of non-performing hasn't really hit. I'm not saying there's not any, but it's it's it's pretty thin. And uh so it's not it's not lucrative enough for an amateur to get in it and go make mistakes.

Mhm. >> There's been there's a spot where you could just kind of, you know, not do it great, but the but you bought it so cheap the market would just take care of you. >> That's where we started. >> That's exactly where we started, right? >> The truth of the matter is right now I think the market is tight. uh there are people probably overpaying and I think performing notes is is the path and and secondly I think performing notes the path and partials are what allow you to do a bunch of deals because otherwise you just run out of money. >> Yeah. >> Partial is a liquidity structure structure. It's it's what if you fund a 100red grand or 200 grand how can you get a a good bit of your money back? and a partial is a way to go do that.

>> Yeah, it does let you recoup part of your acquisition cost in the note. So, it it does it gives them an easy access into getting into the note business if they don't have the cash just to to buy and hold, right? >> Yeah. >> Martha did it Martha did it for us and our family because we'd done 20,000 partials before we started doing it in our retirement account. So, we knew this transaction like the back of our hand. But Martha did it because we started out with less than $50,000 in a Roth IRA account and we started out with about $2,000 in our kids Roth IRA accounts. >> So, how do you take a little bit of money and work it really hard? Partials.

>> Yeah, >> absolutely. >> And that being said, like it's a definitely a lower barrier to entry. However, you have to learn the rules. You have to learn how it's done because again, you can't just like walk straight into it. There's there's rules around it. You have to understand what you're doing, why you're doing it, and all of the the paperwork structure, what that should look like. All of those things are really important. So, it's it's >> paramount. Anybody who's coming over from any other business that's coming into notes, get some education from somebody. And you guys have notes school, which is a great option.

So, get some education. Make sure you understand what you're getting into. And to double down on that, right, education and networking, right? Nath and I talk about this on the show all the time, guys. There's second and none in this space is networking and connecting with others. You can do 50,000 deals or do one and unique situations come out of everyone's deals. So talking, communicating, get together with people who are doing this on a regular basis is the keys to success in any business, >> right? That's the goal here. And we talk about on our show all the time is that the network your you know your net worth is your network.

Make your network work for you. And a phone call is wonderful. Zoom is wonderful. But shaking someone's hands and sitting down over a meal or just talking changes everything. >> Well, it changes the probably the most important thing, right? People say, "What does relationships mean?" or networking or having other people in the business. And the answer is it was kind of what we're all talking about before we just started filming this, right? >> Yeah. >> It's confidence. >> Yeah. >> Confidence in any business is the most important ingredient. >> Now, you may be confident about something that you're wrong about, >> right? That's just being that's being not informed well, which connections are what help fix that.

Or it's confidence that you that the market is right and you can go do something. So relationships and networking and and and interacting with other people in the business, you get a sense of what's working >> and that is what gives you confidence. >> Yeah. Yeah. >> That's well said. Well said. >> So what are some of the ways that when you first got started with very little people around you, how did you start networking and did you do anything to fix that problem if it was a problem? >> Well, I started so dogone early. There was no networking, you know. I started 1980 and I think the first trade show I probably went to was around 1990.

Now, they'd started some in the in the mid80s and and and so forth. And uh so we felt like we were on an island. most of the things that we had tested and you know I developed a couple things that kind of became the way the business was done back then but I'd also tested 98 other things that didn't work right >> and and we didn't have anybody to bounce anything off of and whatever so I became very excited you know probably in 1990 or so when I went to my first trade show and and um you know because of the networking and the the interfacing with other people in the business and it's nothing to say other than the fact that I'm in three real estate masterminds today that are probably the top 500 house buyers in the business and I do that for the same thing.

I do I do business with those people but I interface and understand their market and their conditions and their circumstances and that tells me how to guide my business. So it's all you know community is everything. >> Yeah. And you know, our note our note industry has >> um you know, it it doesn't have a whole lot of places to have that community quite honestly. >> Yeah. So, what did you do about that problem? What what did you do? How did you solve that problem? Because you've solved a lot of problems, >> right? So, what did you do about that problem? >> Well, I you know, it's funny for me like my journey.

So, about 1990, I set up the note system for home investors. Genangelo and I guy founded Home Investor. super smart cat, great guy. And I saw that he had all these franchises, so he was training them a a path to go do the business, a a a proven strategy so they didn't have to go try 20 different things. Go do this, go do it this way. Everybody's seen the ugly house billboards and all that stuff, which came out of Ken's mind. And I got to hang around all that. And I realized, you know, 10 years later by 2000, like what if I had a community, if I had an environment, if I had something that I'd already, you know, had that I had all that history of 20 years and if I could give somebody a compression of time and melt it down to do it this way, try it this way, then all of a sudden then I could just shorten their steps to go become successful.

Mhm. >> And once again, all the things that you're saying, just the feeding off each other and connectivity and uh knowing, you know, just a just a just a blueprint to go do the business. What's that look like? So, that was my vision. That's what got me started in forming a school 25 years ago. And then, you know, here I am 10 years after that or so, you know, I'm down to I'm I'm I'm looking at a trade show. Now, Nathan, you've got a wonderful trade show. Okay. But 10 years ago, there was not another competitor in the business that was legitimately in the business that had a trade show. >> Yeah.

>> Yeah. >> They were all promoters of something >> and they weren't, you know, I'd look up and I'm like, "Oh my god, that guy's out of prison. They've got him on stage now." You know, and it'd be like that kind of thing. Not all the time, but I did see that, by the way. >> Yeah. And and >> so so that's really what led me to the idea of I've had always had this heart for community. >> Yeah. >> So you created a trade show that bar none is one of the most sophisticated out there, complex but also very simple with with a mindset of community, right? networking, shaking hands with everyone in the circle from beginning to the most advanced people and being in a room full of that kind of thing for me as a beginner was quite overwhelming.

But the welcoming created different atmosphere. It allowed me to feel that I can go shake Eddie Speed's hand and realize that he's a real person. And I think for most people, they get intimidated by that stuff until they get to sit down and talk to people. Um, when you started this, what was the first event like? H well, you know, we had had we had a coaching program and we used to invite our students once a year to come hang out with us and just put love on them, right? Just have something special and special speakers and special opportunities. And we said, you know, if we have an audience that's already here, what if we were just open arms and said, let's just go invite people that are in the industry that may be our competition.

It may be whatever, right? and let's just go bring them in and let's have let's do let's do something that's a go-giver for the industry. That was our original intent >> is to get and and so that's where we kind of started and you know once again the market's changed a lot. So every year's been you know the theme and the focus has been very different depending on circumstances. I love the I love the theme of note expo this year which is um be the bank. And if you really look at, you know, what Martha's kind of become well known for in the industry is how to go take her mother's retirement account and Martha and I's retirement account, our three kids' retirement accounts, and now our five grandkids, you know, maybe Coverdale educational accounts or other things and like how do you spiderweb that into a family legacy? And so our family legacy is designed around using notes as being the bank.

That's a 100% of what what she's done. >> Yeah. >> Wow. >> Yeah. And it's very interesting. It can be done. It's kind of trickled down from from my mom and dad. And then so we've been able just to carry that on and teach other people how to do it. >> Wow. >> And so I think that's that's one of the things that's so nice about it is that people can see how to create that >> in a way they've never been able to see it before. And talk about a legacy benefits so many generations. >> Yeah. >> It's fabulous how it benefits so many different generations. So we think that that's that's one thing that's really awesome >> and not just that just you know like you're saying interacting with everybody whether it's servicesers.

We have so many different people there that you actually get to meet in person. >> Yeah. Right. >> Talk to that makes such a difference. And talk about a legacy where you're you're passing on not just you know a retirement account or a fund or something like that. you're you're passing on that knowledge so that they can then take that and then build on it and continue on. >> And I think that's so important, Nathan, because you you said the right thing because, you know, we're not giving it to our kids, right? Right. >> We're not just giving money to our kids. We're giving them the knowledge to carry on what we do.

They're in the business with us. >> Um, you know, it's their account. So, they have they have to be active about what we're doing. And uh so they're learning the business and they've been doing that for a long time since they were quite young teenagers. Uh but now they're actually on their own, right? They can go buy a loan, they can get it set up with a serer, they can do a lot all those things on their own and but they understand the structure of what we've done and if something happens, they can take it over and they can run with it. >> I think legacy I think legacy means that you're not hitting the reset button, >> right? starting back over is what you don't want the kids to do and >> just take it off and continue to run what you guys have already built which is fabulous.

>> Well, the the thing the there's a key thing that we have talked about Martha and I talked about a lot in Legacy and that is do you have an inheritable business? And and I know 10,000 landlords that the day that they God love them, lay them in the ground, the kids are going to call the realtor on the way back from the cemetery, you know, and say, "Get rid of this." >> Yeah. >> And and what they people realize is a rental portfolio is not an inheritable business. But I will say over my years, and I've now coached close to 3,000 people, I've had two people that wanted me to help liquidate a loan portfolio after the person that we trained died.

Two. >> Mhm. >> And I've had a bunch of people die of, you know, you can imagine because more likely than not, somebody that joined our coaching program, you know, might have been, you know, a little old. They weren't in their 20s necessarily, although we we we do a good job with that. But the point is, we've had people age out and die and life happens and accidents and whatever and they don't want to go sell the portfolio because they don't need to. >> Right. >> Right. >> And and it and and so Martha and Wood, our son, our middle son Wood, who works with Colonial in the due diligence side of the business and, you know, evaluation and look pricing loans and evaluating what's a good deal.

Martha and Wood are gonna present at Node Expo this year of this generational stepdown. >> Wow, >> that's awesome. >> That I mean, >> man, that's really >> No one's, you know, something that none of us have the opportunity to do yet. Our kids are young, but >> it's definitely education that we all have to focus on. I think that's that's amazing. >> That is amazing. >> Well, we we've fa we've placed a lot of emphasis on the fact we've not given our kids a big check. Yeah. >> Ever. >> And our kid, you know, our kids are in, you know, average in their 30s, >> right? And so it's not like we've dropped $200,000 in their checking account, but we have helped them get into the business and learn the business.

And we think that is way bigger than giving somebody a check. And and and great. >> So that's kind of a we think that what we've done is not magic, but we we think a lot of people are interested in how we've done it. And that's kind of what we're talking about. >> Yeah. We just want them to have the knowledge to go reinvest the money. >> That's worth more than the money itself. >> That's worth more than the money itself. If they have the knowledge and wisdom to go reinvest it and just keep it going. And so that that's that's the most >> Rockefellers, right? That's the whole Rockefeller method.

Just keep reinvesting it. >> So what else can we expect at this year's Node Expo? >> Well, I'll be honest with you. I think the changes in the business this year are the biggest changes that we've seen in a really long time. >> And uh I've been working on this kind of industry thesis so to speak for call it a year and a half which is basically that rentals aren't making money. Mhm. >> And uh so we're going back to kind of old school like I did for home investors where we've we really create a complete note manufacturing system. >> Yeah. >> Like everything from how do you sell it? Who do you sell it to? How do you structure the sale? How do you how do you do that? How what what is underwriting that is acceptable? And vendors to do all of those things for you.

And that's now kind of where we're at, what we call stage one, >> is that we now have it in place where we can take a landlord that has one or 500 rentals and help them transition and get and net two and a half times the income they're netting with their rentals today legitimately. >> Mhm. >> Right. And uh so they're they're they're going from uh you know a rental property to a seller finance model. And there's a there's a discipline to it. And there's a reason for the discipline. Today, I can help them go exit immediately and sell part of their cash flow. >> Wow. >> They're getting $2,000 a month.

I can help them sell a,000 bucks a month, right? >> Or I help them sell $1,500 a month, which gives them liquidity to go pay off their underlying mortgage or go do their next deal or whatever. But what you're going to find out at Node Expo is through some of my friends in the business. I wouldn't take credit for it, but I just great grateful I have brilliant friends. >> I have some friends in the industry that are the ultimate ninjas in the mortgage and banking industry for technology. And within six months, we're going to have these loans on blockchain. >> Wow. >> Fantastic. Oh, that's cool. >> I've heard of that, but I haven't seen it done yet.

So that's that's an exciting development. That's really cool. >> So my man Cade Thompson is gonna come lace it up at Node Expo of what that looks like and something that they are doing in the mortgage industry right now. >> Wow. >> Very cool. Very cool. >> So So it it its potential of revolutionizing the business is just beyond any scope you can imagine. And it needs desperately needed. >> I mean, what the the seller finance business has been this mom and pop handmake one deal, no secondary market because you did it wrong or you did that like like I've seen 45 years, you know, I've seen all the mistakes.

And so Kade and I have a kindred spirit from way back, a company he founded, by the way, did 65,000 seller finance transactions. And uh so we've had a kindred spirit from way back and a heart for like if you could bring liquidity to the market. You change everything and you change how many people would want to seller finance because they can get to part of their money today and can wait for future profits tomorrow and it's a lot less trouble. It's like it's virtually handsoff at this point. And then all of a sudden, you could go offer a fractional interest in a mortgage to somebody with a self-directed retirement account that has $8,000 to invest.

>> Oh, yeah. >> Or you or or Nathan, you could go buy a portfolio of notes and put them on blockchain and use that leveraging technique so you can work your money harder. >> Wow. >> Yeah, that's fantastic. So, so we think >> interesting >> like one thing led to another. >> Yeah. >> The first thing is is the market had to bust wide open. >> Listen, there's 17 to 20 million rent houses depending on who you ask. >> Sure. >> Most landlords are making about a 4% cap rate on their investment. That means for a $200,000 house, you're making you're making $8,000 a year. And that's before you pay the bank.

2018 they were making double the net income. They were making a eight cap. Now they're making a four. So the market has changed to where rentals are not a game like they were. So now you have this gigantic market that has opened up that people are want to do this. Now catch this news. President Trump signed an executive order in early August where people then can take their 401k money currently, they don't have to leave the company. >> Mhm. >> And invest in alternative investments like notes. >> That's huge. >> Yeah. >> That's huge. So, when I told you guys when we were kind of setting this up, I think Note Expo this year has the most lightning bolt information that we've had in years.

Now, I hope you get a sense of what that means. I think it's going to be pretty electric. >> I'm getting goosebumps just thinking about everything. It just wow. >> My wheels are turning. Yeah. Oh my goodness. That's huge. >> That's a lot lot of lot new. A whole lot. >> Yeah. Oh my god. >> Never. So, one of the things we talk about on our show a lot is these rap note sub 2 world. Um, we're going to keep this f familyfriendly. What's your input on rap note sub 2 craziness that's out there? And what do you think is going to happen next five years with these rap sub 2 stuff? >> I did a training for collective genius about a month and a half ago.

This is the top 500, you know, this is one of the masterminds that has these top 500 house buyers. I did it with Jeff Watson and we basically said, "What are the caution flags with sub twos?" And we pretty much said this because of gurus, because of every beginner house flipper, no training wheels, let's just go straight down the mountain, right? And and what has happened is is every loan serer out there today knows that when they get in the mail a power of attorney and a transfer to a trust, they've got a rubber stamp that says this is sub two. >> Yeah. >> And Fanny May and FHA and those guys have had enough.

They've kind of had their finger wagged at long enough and they have said enough >> and I've got inside information to be very s sure sure about this. >> Yeah. >> And so I'm saying to you that you if you think with AI today, you know, Rocktop has AI that can read 200,000 documents an hour. >> Okay. If you think with AI today they can't go through a complete loan portfolio and identify sub two transactions, you would probably be kidding yourself. >> Yep. Yep. >> And so it is it is a breach for a serer >> of a mortgage back security. It is a breach of their contract not to identify loans that are in non-monetary default.

>> It is a breach. And what what's stopping a bank from calling those loans due? Like why would >> nothing and and so you know I I I'm telling the biggest baddest house buyers in the business, fellas, we are not in Kansas anymore. >> Yep. >> And so I'm sure this going to cause somebody to get their feelings hurt, >> but I'm telling the truth. >> Yeah. >> So what's going to happen to all these investors? He noticed tens and hundreds of thousands investors doing this yield play and just doing it wrong besides the paperwork just doing all this stuff. What's going to happen to all these borrowers and all these people who are investing this money into it? What do happen to those? I think it's I think it's going to be a gigantic in a in a sad way and I'm and I'm very sad about this and I had a conversation with a major connected guy in the training industry like this morning.

>> It is going to be there's it's going to be very newsworthy and it is it's going to come out. I believe it is. I think all the things are in place for it to come out and I think it's not going to be good for our business and I think it is one of those things when I saw this all this storm cloud forming a few years ago you guys know I was very very concerned about it >> and I am concerned about it and I would just say the best we can be as leaders in this business legitimate leaders in this business >> the best we can be as as leaders in business is people that do good ethical rightsiz business that is good for all parties.

And if we're if we're buying a property, it's good for the guy selling. And if we're selling a property, it's the good that we're the guy that we're selling to and them to experience home ownership. And the best we can do is what we need to do for the business. And I've been doing this for 45 years, guys. There's been all kind of hot shots come and go. all kind of flash in the pans come and go >> and and it'll be a it'll it's going to be very newsworthy, >> but >> I think I think there's some borrowers that are going to get the short end of the stick. In fact, you know, I I know it's been discussed.

There's a high default rate on this paper right now. And I think people are figuring out, oh my goodness, they took over my mortgage and now they didn't pay and now I'm responsible for it. And I'm just telling you, I am not any a part of teaching sub 2 or what they're doing. I just think it's a mess. And I wish they didn't teach it, but they did. >> Yeah. >> Yeah. I I see as the first time I heard about it a couple years ago, I my immediate reaction is I can see this blowing up so badly where things are going to go wrong so fast and so bad and it's going to mess over a whole lot of people. So, >> so when we teach a landlord that we're going to help him create a note, if there's any underlying mortgage, the first thing that we're going to do in as part of that transaction is we're going to buy a piece of that note >> so that that underlying debt is paid off.

We're buying first mortgages. We're not buying wraps, >> right? And uh and I and I would not, you know, be I I just I don't Once again, Martha and I were in the business in the 80s and a and a wrap note in the 80s was not there wasn't a do on sale clause. >> So that provision in the agreement that on the loans we were buying did not exist. They couldn't call the note >> were >> just it was a different environment. Of course, they were in horse and buggy days back then, you know, >> dinosaur world, right? But let's get back to expo because that's really why I'm energized by everything you shared.

But the rap note thing is something we want to make sure we talk about this on the show all the time. >> Give us some insight of what a first time, no creator, no buyer walks in Node Expo can expect this year. Where is it at? When's the date? What should they be doing? How should be prepared? Make sure you bring business cards, people, right? That kind of stuff. Give us a lay down what that looks like. >> So, it will be th uh excuse me, Friday and Saturday. That's November 7th and 8th. It is at the Weston Galleria in Dallas. So, that's on the north end of Dallas. Very nice area of town. Very nice hotel.

Uh I think they need to come there Friday or excuse me, Thursday and be ready, you know, because we're going to start Friday morning unless they happen to be just local. And uh we are going to start out with some inspiration and we're going to start out with uh some clarity and vision in the business and we've got some very interesting speakers. The theme of it is be the bank. >> So what we're going to hear is h is we're going to hear the components of what it takes to be the bank. Right? In other words, because when people get the clarity of it and I and let me say the difference what I think is a trade show and a class, right? A trade show is a vision.

A class is all the how-tos, >> right? >> Right. This is like you can't do like the first thing that you should do in anything in business is first of all get a vision. What is it? What's possible? what what market void can we fill? You know, entrepreneurs solve problems. So, find a market and figure out how you can fix it. And so, and and somebody's gonna go in there, whether they're a beginner or they've done 10,000 notes, and they're going to go and sit down and say, I get the clarity of the market. Now, I want to know what puzzle pieces I need to fill in in my business to be able to take advantage of this, you know, get on this train, ride this opportunity, right? And so, I think that's what you're going to see speaker by speaker is that we have laced up speakers.

And some of them have a family story like Martha and my son Wood, right? because Martha has done this and now she's a generation down where Wood is, you know, getting in a position to go then step into that place. And we're they're going to talk about what Wood has done to get ready for this >> and what steps that that are are that they Martha and Wood see as critical. Now, let me tell you something. Wood's 31 years old at this point. He's a fireman and paramedic. like his day job is he's fireman >> and I believe it's 100% his God's calling to go be that. So we're not asking him to give up being a fireman, but we're saying to you his second job is doing this and what is it he's done along the way that makes him today very confident to do it.

But on the other hand, there's going to be people that talk about like how they've raised private money or we're going there's going to be people that have talked about, you know, different aspects of the business along the way. Listen, Kate Thompson's brilliant. Like, if you've ever heard Kate speak, you don't need any you you do not need to be convinced. This guy is crazy smart and he works with some crazy smart people. I just considered a blessing that, you know, I that we've been friends and he's been a he's had but he's got a vision of how seller financing can be way bigger than what we've ever thought about it being in the past because the one thing the business has never really had is liquidity.

>> Yes. >> And liquidity will change any business. And so that is, you know, and so now all of a sudden you you think about the first thing that you guys want to know, you're note buyers, right? How is there going to be more business? >> Right? >> 20 20 million rent houses with unhappy landlords could mean a lot of business. >> Yeah. >> Right. That's inventory >> liquidity. Once you're buying deals, how do you get some of your money back to go ch to go rebait your hook and to get it back in the water again to go find the next deal? Right. >> So, how do you go do that? Well, you go do that with with efficiencies in the market.

>> Yeah. So efficiency and inventory are the theme that drive how do you be the bank. Being the bank is the goal. It's how it's what drives the situation that allows you to be the bank. And that is what I think Note Expo is about. >> Wow. What a great why. What a great why. >> That's great. >> Oh my goodness. >> That's really great. >> I agree with you guys. Every conference I go to, you got to go the night before. Get well rested. Get prepared. Be ready to go first thing in the morning. It's not something to be slung at. You're there for business. Dress appropriately, right? Make sure you're dressed good.

Go inside and sit and listen to every speaker. You're not there to hang out and socialize. You're there to actually network, but listen to the people who are smarter than you share their knowledge with you and learn what's going on from those around you. And we always tell people when you go to these networking events and conferences and trade shows, sit with people you don't know. Sit with people you are strangers. >> Don't sit with your friends and people you know. >> People Everyone is friendly. You learn so much from different people and you don't know who you're sitting next to every time you sit down.

>> Exactly. Right. >> Martha and I talk about it. We don't ever have lunch together at Note Expo. And I and I'll if I'm in line, I look over there and Martha's at a table and I'm like, I bet you Martha doesn't actually know any of those people at that table. >> And I try to do the same thing, >> right? because we are, you know, we we love our social friends and we've been in the business so long. A huge amount of our social friends are people in the industry and you guys see that, right? And I know you're in the same situation. >> Yeah. >> But when you go there, you have the opportunity to network with other people >> and uh I just will tell you this for me like I go to events a lot.

I'm a speaker. I I go to a lot of masterminds. I'm at events all the time and I don't ever drive home from the airport or drive home from an event and go like, "Oh god, I wish I would have not done that. That was just the biggest waste of time." I just I don't do that. Now, there are events that may be that and I try to select that up front. So, you got to pick legitimate events with legitimate folks doing it. So, let's say that there's some judgment involved here, right? But beyond that, you know, networking and and that next idea and you know, I have I said, you know, I if I have a little thing that my marketing team has now coined and it's something that I said at Node Expo, I think like eight years ago, but it says it only takes five minutes to come up with a good idea.

You just never know which five minutes that'll be. >> Yes. And the point is is that the likelihood of that good idea has been fertilized with environment that you've been around. >> Very well said. >> Yeah, absolutely. >> That makes sense. >> And I Nate and I talk this all the time. There's not one conference I've ever been to, no conference that I've picked and been selective where the money I spend the time away from my family that sucks. Spend the money and time away from the family is heartbreaking. But I've never regretted any moment or any dollar I spent at any conference because that's truly how you grow.

Learn from experiences, learn from others, network, meet people. I've met some of the closest friends. Me and Nathan met years ago in a no conference and we became close friends sitting next to you on an airplane, right? >> Because of that conference. We don't know if we'd be close as we are today because of that. And it all happened from a conference. So I guys, I encourage you if you haven't signed up yet, please slide over yourself over on your web browser, on your phone, on the podcast, whatever you're doing, and sign up. Get your hotel booking. Do yourself a favor, spend the money, go down, fly down there the night before, get a hotel room in the hotel if you can because that's where you really network and socialize.

You may be up late talking, you may be up early talking because that's the time to do it. to go there, spend a time, shake hands, get business cards from everyone, and always follow up. I don't know how many people don't follow up with the people they connect with. >> Yeah. >> It only takes one thing. >> One thing one conversation with somebody new, you know, a new meeting, somebody that you are already connected with and you share an idea or they share one with you, something from a speaker, like there's so many opportunities to bring home one thing that can totally change everything. So, it well well worth it.

No doubt. >> So guys, I appreciate the time you spent with us on this Friday afternoon and your insight, your knowledge, and just fact you care about people and the community and what you've done for the community and what you're going to be doing for the community, which is exciting for us. Um, I'm not sure how to do our final question, Nathan, because we've got to answer this question. >> So, I'm trying to reward this. So, the final question we typically I'll let you ask the question, see how they answer it. Let Martha answer. I'm curious here. So, we usually try to get like we we try to have people on that are experts in whatever they're doing.

Uh people that can teach us things that we don't know. And and you guys are prime examples of that. You've been around forever. You've been around, you know, really pioneers in the business. So given what you've seen, given where you've been, what do you see coming up? What do what's your next, you know, 12 24 month predictions on the market, especially for notes in in particular? >> Well, for me, I I just see the this big chain change coming uh with the blockchain. >> It's almost like um I really have to get myself ready for that, accepting that. It's totally different than what I've ever done.

And I just I just we who knows what is how much is going to change our industry. And I think it's like Eddie said it's like having the the ability to to have that liquidity to invest in a note, but you might not be able to buy the whole note, but you can go invest in, you know, an interest in a note. It's that's kind of the concept, right? >> And so that's it just it's going to I think it's going to change a lot. I don't know how fast it's going to come. I just say I would just say that one thing that my dad was great at was accepting something that was going to happen 20 years from now. He already knew it's going to happen and he already had acceptance of it.

And so he knew to be that like that was the mindset that he had to have, you know, to create income for the future because that's where we're going to be and that's how you have to be doing business. So, I think that's something for everybody to be thinking about how it's going to change and then how it's going to change the node industry also. >> Um, and in the meantime, we're going to keep doing things the way we're doing. >> Yeah. >> Yeah. >> That's awesome. Um, I'm looking forward to seeing what you guys have. I'm excited. I got goosebumps still. Um, you guys never disappoint. Uh, I've met some of my closest friends and closest colleagues in the space at your events um because they're top of the notch.

They're just the best ever. Uh speakers, the presentation, the way you run things. Um it's awesome. So, I'm thankful for you guys for what you've done in the industry and what you continue to do. >> Um with that said, we're going to let you go and enjoy this Friday afternoon. >> We will be seeing you guys soon. Again, remember guys, fly down the night before nodeexpo.com. Get on the website, book your tickets, book your hotel room, and get your tickets, your airline tickets to get down there. Um, and make sure you let them know that uh you saw us on the on the show and that you're looking forward to learn more.

But thank you again, guys. We'll talk. >> Thanks so much, guys. Be well..