Investing in Note Partials | Real Estate Notes Show

they're in the read yeah when I was doing owner-occupied another reason besides the banks not lending less usually at seventy five the biggest issue is you know a lot of these investors come in they might have submission right they might have some issues now with their income and since I really stopped doing all occupy financing that was before the whole dodd-frank issue came in we had to have them on the you can only do a certain amount a year but um you know anyone with credit issues that's great for seller financing as long as you can get them set up in a situation where they can turn around and refi that loan out or be able to close out on you're to fix those credit up but you do got to get them on there in also that's kind of what I do a little differently and you know that's why I work with occupy Josh I want to add to and ask you the same questions you know we're hearing is banks can't do anything with loans undervalue some people when I get back into being the lender you know this this method takes away the risk of being sued as the owner of the property where you become the lender again versus being a self Lanting and being a landlord would you say this is commonly what you're hearing small estate that's out there why people do some financing because people looking to buy partials sometimes wonder what the game is why these people are self financing what you know where are they losing and when they're not realizing there's a win-win situation for both sides this whole game yeah absolutely well personally I don't have a whole lot of experience with seller finance I know a lot about it I've assisted a couple folks with seller financing their properties I haven't taken too many properties back myself on that so I haven't needed to but what I'm seeing as far as partials is you know kind of what you touched on it is a win-win for both sides so folks selling partials at least my dad my dad started us in the business and so we've been doing partials for since the early 70s my dad actually originally sold partials to an institution and that's kind of how we learned about you know being able to do partial a note and how it works and all the ins and outs of that and so that's how we got started so if you listen a little bit more about notes itself in general ya know school is our training entity we have a family of companies but no school is our training entities so we offer the read a classes that basically teach the note business performing and non-performing notes buying notes and then you know we also have extended training that goes along with that if people are interested and then we also have our note buying sod where we buy pools of and acquire poles of loans and as well as one on loan you share about look like yourself your experience and what your knowledge and pourcel's in general I love to thank State Bank Army on Oh once again Danza toski from shiitake Kappa we are a rare managed fund that we acquire for last 28 plus years a 29th year both real estates ID we've acquired I want a non-performing notes all over a thousand assets what we like to do is we like to take a non-performing asset from a note attack salinas fish seller property REO and turn that into performing asset as a turnkey rental and then we're different whereas we like to sell our properties to turnkey investors on a note so we're actually working more on the non-owner occupied side on the note and back in the day of probably about up until about seven years ago I used to sell off partials to get all my money back on a deal in 12 to 18 months so my returns then become infinite over the last seven years I really haven't been so much on my notes I talked to live and pass it like being the bank so we're taking down we're working with a lot of contracts a lot of performing notes but basically what we do is really before me no it's the non-owner occupied that are very very very very advantageous in this industry we just choose not to sell a lot of what we definitely could work with investors that come in with smaller amounts of money because maybe sell-off you know 40 50 payments or something on a parcel that's how we built our business about that so we changed it over about seven years ago and never looked back great Josh Sanders can you juice yourself and explain a little bit that who you are and what you do with parcels yeah appreciate you having everybody on here certainly I'm probably been in this business a lot less time than some of these folks on here so it's neat to see kind of a spread of different folks I've been buying and selling and modifying notes for about five years and I actually started in non-performing seconds which I know to a lot of folks sounds crazy I actually do first as well and we buy reaper forming product so about a blend of maybe 50% or so performing and then the other half non performing that we work out for resolution of some sort I really love partials I mean partials everyone else can talk about this as well they are just so cool so fantastic there's a lot of things you can do and you know I still have a lot to learn in that department we do quite a bit of them one gal that I was speaking with today actually that was mentoring me a little bit on kind of an oddball deal Tracy her last name is Rui I believe and she has a website note investor comm so there's a lot of just good non salesy educational stuff there you know a lot of information about partials as well so I'm looking forward to talking about partials and kind of what we're doing in here and what other folks are doing with them as well thank you so much awesome well welcome all you guys and joining us and I appreciate you guys jumping in here and giving away free information which we've talked all about how valuable free information is but the biggest part of taking is taking action that's the hardest part so let me let everyone know that again there's a chat bot in the bottom if you want to ask questions but I mean I'm gonna start off with a bunch of questions here and kind of ask you guys some general ideas of about parcels before we get into the more specific ideas um we have a little matter of capital we're working with 15 20 grand Martha what why would you say that you know with 15 grand is it's difficult to buy a knob performer or even a performing full-blown loan with 10 15 maybe $20,000 what are these struggles with that and the risk with that we just don't see a lot of assets we see some but not the majority of assets are going to fall within that category the majority of our assets that we are acquiring are even though they're on working-class property there going to be more to buy the full loan there going to be more from about the $35,000 on up to you know of course 100k plus and so the nice violating any security issues there there have I mean that that would just be my suggestion what is she meaning by and what do you mean with security why can a joint venture agreement when you do an equity split when the person sitting back giving you money be a dangerous thing to be into Dan go ahead and jump all over that one I know we you know we keep it pretty brief real quick you got to be careful on a joint venture agreement I just tell people check with SEC attorney make sure you have an eternity lucky joint venture agreement I've had three attorneys and two accountants saw me that joint venture agreements are not truly joint ventures you're not working as a joint venture with that person so your ways out of them is they either do a you know file with the SEC on a ppm or doing that true LLC I know it's a pain in the butt to do an LLC that's kind of we're doing now because yes you have to file for an LLC that can cost you with the operating agreement maybe you know $1,500 then you have fault ax returns you can put that all in your agreement it's part of the agreement it's part of the money you raise but you're not truly joint ventures with these people because they are they're not truly partners on this deal the way a joint venture agreement supposed to be ran but I'm not laying set up not an attorney in am NOT an accountant that's my disclosure check with your accountant and check with your attorney like I said I was using joint venture agreements that everyone else is running around using and I have three attorneys including two of mine tell me you should be using them and I had two accounts hit us up and say well you're not giving my client a 1099 york' wanting them because they're actually partnering this business so just be careful as far as that question Peggy yes I have no clue I would like to share thing about for someone that has smaller dollars that they want to invest and to enter into this asset asset class is that when we break off the front end of the loan and sell them a partial interest then it gives them the opportunity to take that amount of money to invest in the note and the majority of ours are what we find on on single family for what we buy you know they're going to be in that forty fifty sixty thousand dollar range to do to actually acquire a full purchase on a loan so it definitely allows them some flexibility to come into the asset class and an inner you know entering into the note space and buying a performing long yeah what would you say your your ideas of buying alone for 15 grand what are the risks with doing that from your experience dan what's your experience buying a loan in 15 gram the type properties when I buy you know like I said I'm I think I'm a little different than pretty much the whole market in this range is I'll never buy a note on a property I don't want because my worst case there as I have had nine exit strategies and my worst exit strategy when one is a strategy that has a box that's the check every single time is I have to be willing to own that property and I'm not wall to own a property that are 15 20 thousand dollar values because when you get in we know what happens it's still gonna be thirty forty thousand dollars of work so I I do not touch those twenty thousand dollar values and I don't mention companies names that out there Saul knows but there are certain companies out there selling that's pretty much what they sell Martha gave a great rendition of what I I think we're very similar and that's why the partials have been so good my values of my properties are usually no less than five thousand or not so I'm gonna I play in that sixty five to one hundred thirty thousand dollar range so when I saw when they're put together properly you know it's a win-win for the seller and it's also a win for the buyer so no one you know when you look at it objectively no one's being taken advantage of it's a very fair transaction for both sides with regards to the seller finance side of it I really can't speak much to that because I don't have a whole lot of experience with that awesome more thing one of the reason I called you guys to come on here is you guys been doing this for as long as PI I've been alive which is awesome had that guy experience I made that mold right no of course not I'm going to dive into the little detail for a minute and I'm gonna ask you as best you can to be as common language is possible and it will get back into more common topics but what paperwork is needed to do a partial from a if someone's taking a property back doing self Lansing and want to sell farce or what people are legally required that happened well what we do is keep it really simple it's not complicated I know people probably have in their mind that it's a complicated process but basically if you could created a proper paperwork to start with you've created a real estate note and a deed of trust or mortgage depending on your state then when you buy a partial it's just simply a you're going to have a transfer of the lien then you will endorse the note payable to the partial buyer and then we have what we call basically an agreement which we call receivable purchase and sell agreement which outlines the terms of what the partial buyer will be receiving and you know then it's got the amortization schedules attached so that they can see the amortization on the loan as well as somebody I can easily work with somebody from $10,000 to 40 $50,000 whatever it might be that's all partial but the nice thing is people that have 1520 thousand 10,000 it's nice for them to get involved in the game learn the game to get really passive income possibly using their self-directed IRA soul Froman case Carver Dells health savings accounts kids at kids accounts cash get in the game for a small amount of money and know that they're gonna get a decent class beat you know B minus 2 B plus my property in a blue-collar neighborhood where they're not really I mean you can't guarantee anything but you know we really had your bet when you buy a better property and how can you collect payments on it with ten fifteen twenty thousand dollars other than buying are really a Class B property and the pure ghetto excuse my French or you know but the pure ghetto which um you don't want that because if somebody doesn't pay that note you're you're not getting paid your parcel I mean they still have to pay for you to get may we we used to sell parcels we offer some guarantees where if somebody doesn't pay we'll buy the note back - the cost that they've received because we want that deal back we're only like I said I'm only willing to do a note on myself that's why I'm different I think everybody in this industry I see everybody and the minute they take them back they don't have thirty forty thousand dollars to fix about so back to your question on that's why ten fifteen thousand dollars into a partial is a great deal because you can get yourself you know eight ten maybe twelve percent return on a partial and you know you're in a quality property okay and you can make that money like I said in your self-directed IRAs 401 k's most kind of things tax free if you do it right and you learned servicing you learn you know insurance you learn how to accept the payments you learn how to deal with the collateral it's a great way to get started when you're first starting out Josh I'm going to piggyback on Nash's question then you know a lot of people want to get in the Performing world because it's it's an easier world at not performing for sure not scary you know what um what kind of loan I mean is there a lot of loans out there that you could buy 15 grand and if the ar15 been performing low what kind of asset is that maturity is left well I'd have to say very similar to what the other folks have already said where you're looking at something that either just doesn't have much meat on the bone left you know it's almost over as far as the maturity date getting close to it or it's just a very lower and type of property or asset that is not really suitable for a beginning investor or someone who is more passive that they just have money in an IRA and they want to put it to work the partials are much better from both sides in my opinion both the seller and the buyer most folks that I work with kind of very similar to you know what Dan and Martha have mentioned the partial purchase price is anywhere from let's call it 15 on the very low end to maybe 35 and that gives them some security they're in a higher-end property it just it makes more sense than an outright purchase of fifteen thousand dollars on a full note there's just not a lot there and there's not a lot of security I think buying the note outright at that price Martha I mean you guys do a lot of seller financing where you're at why would someone star clients versus sell a property outright and they'll bar to go to a bank get a loan for it what makes our fancy attractive on assets maybe worth 50 grand resound 50 while they score the banking alone number one is that at that asset class at the $50,000 and really even above that I would say more even at the $80,000 and below a lot of banks aren't financing those properties they just they can't originate them they can't make money on the origination because of all the you know new you know documentation that's required and all the regulations that are required by the government there's just not enough money for a bank to go and finance those type of working class properties but they can be very nice neighborhood I'm you're still looking at a customer who potentially made a very good down payment there's just a variety of different reasons you know that that this person you know would need the owner financing but primarily it's just that the banks are not offering the financing that's needed on this type of property the right buyers are still you know the buyers are still out there they pay well and it's you know it's like they said it's like a several people said earlier you don't want to get into too low an asset class you know you don't have enough of a monthly payment to collect number one but you know the working-class properties are you know there are people that pay they make good town payments normally when someone does finance and you know it's it's good solid paper yeah I'm sure that you know did Dan and Josh will definitely that's the biggest problem that most people who are looking at these loans go why would someone actually own a property and not to sell it out the biggest problem based in France it they won't bother and worth the time to wrap for the money that makes it difficult so did when you take a loan back what are you well you know you do sometimes a little differently than were explained here why would you take back a loan and versus sell it outright to a bar or why you want to get back in the paper business game game what's your what's your reason for getting back honestly to make it really simple yep sorry I I sold off a lot of properties in my life I mean I worked my ball because anyone who knows me knows the type of money making doing that what about seven years ago like I said I really want to get back into the passive income game my my goal was to live you know pretty much truly passively and mitigate my rest as best I possibly could so if I'm gonna sell off these out to seventy eighty thousand dollars and make myself you know ten to twenty thousand dollars per asset and I'm giving the money to the government for taxes and stuff like that I'm just rolling the money and costly so the reason I wanted to do what I do and be a be the bank is because I'm in a good position when I'm at the bank because the way I get into these properties especially is turnkey rental properties is there truly turnkey I mean I'm taking these assets over from a note a tax lien and distressful whatever REO whatever it might be I'm rehabbing these properties I'm putting a tenant in them getting profession knowledge not by myself but a professional property manager and then they sell more to investors and when I work with an investor the reason why I like working in investors is one is I don't think ill Todd Frank I mean I'm not a fan of dodd-frank is not my friend I don't want to deal with him I don't have to deal with him Don Frank I'm not doing residential loans in the commercial so in most states I'm allowed to do whatever I want no States most states and this I can't I'm not I'm not working in any way so i'ma do a per pull in for 1780 the rehab and then when I sell to an investor I'd say thirty percent down or twenty thousand dollars whatever is greater so now I'm basically lending out about 50 percent loan to value on a performing asset with skin in the game and I'm collecting payments every single month I don't care about tenants toll that's a trash and I'm giving them a good call blame property so if an investor comes to me and they have a hundred thousand dollars the best which most of my investors are north of a hundred thousand but if they come one hundred thousand also invest I now could sell them three to four properties around and sell them one properties for cash of $80,000 hope that makes sense and and four people are trying to I say is there a lot to buy five people with Josh why would someone what's a good you know this makes them weird noise house to be true why so long cause I think immediately how can you guys hear me now you guys hear me now yes okay okay I think it's a reason a question for you know a buyer or someone I think that each seller is gonna have their own reason a lot of times we sell to recapitalize so money on the transactions we are a lot of times it's a simple act of just going and keeping that tail and in fact you don't even know your own money or anyone else's you know do the deals like is it a dual closing or something of that nature and do large amounts that way and just keep half of it so it's a little bit more advanced it's something that I'm working on with some other folks learning but there's a lot of different things you can do with it and it's not a simple matter of just making money a lot of times it's getting your money back and then moving on but still keeping a substantial portion of that note you are unmuted the amortization on the partial investment so it's very easy we make it very simple and it's pretty much just those those three documents it sounds very similar to what we do when we buy non-performing it's very similar paperwork you know did we talk about this weekend and so let's J one of the biggest concerns we have in his face is when a bar to false so AB 15 grants in my IRA and I said I can't buy an hour performer I don't want to buy a low-end performing note I mention this whole partial thing what I would someone stops make it up aim it Dan what are you having you agreement that you set up that if that happens how terrible the situation are as the buyer being of the partial in okay somebody starts they I do a guarantee with them if they stopped making payments I have the right to buy the note back from you and we obviously I want to make sure that no keeps performing or it's protected so I would buy it back for you - the payments that you receive so you get paid in full so essentially I take away all that risk from people I don't know how every balance does it I do it because like I said I'm usually lending out about fifty fifty five percent so for me it's in a situation where I'm willing to think that I don't I don't want people to default that's not what I'm looking for but people say what's the worst that can happen usually I say they pay me back is if they don't pay me back I just got all the equity back result somebody else I mean but well I guess that I always tell people well that mean you need before clothes on yourself I'll do everything but as far as partials I'm willing to do that I don't know if everybody's willing to do that I'm always willing to pay them back any monies they don't receive but they may call awesome Jade you guys the other same situation and if someone doesn't make the payment defaults that they have options we talked this week and also about your three options what you provide the buyer to help three should you want to briefly go over those three options you give that buyer when you sell a parcel to them yeah absolutely so I think the first thing you know for people that are interested in maybe buying a partial or learning more is the fact that the person's selling or the entity selling the partial to them has a lot invested in that transaction as well and they also want to see it do well and we want to see that partial buyer get paid every penny that they're owed because we rode that second half or whatever is left on the note so interests are aligned in that respect and so for that at least the folks that I work with a lot of them are just passive IRA money business professionals that are smart well-educated they just don't want to make a business out of it so why I tell them and we have an a purchase and sale agreement along with the amortization schedule spelling everything out very clearly in the event of default first they notify us just to let us know that this has actually happened typically we already in the service or portal but they need to let us know and then there's one of three options the first option is very similar to what Dan said where we'll buy them out - any payments they received so that basically just amounts to let's say they purchased the note for 20 grand they received five thousand dollars worth of payments from the borrower of are we defaults well we're gonna pay them fifteen thousand dollars so they're gonna be made whole they're not gonna make money in that instance but they're gonna be made whole I'm not gonna lose their money the second option is we can replace the note just take that note back for ourselves and fix it deal with it on the back side replace that note with a suitable note of equal or greater value obviously the buyer needs to agree to that be cool with that or let's say there's just a year or two worth the payments left we could also take the option of undertaking in writing to make those payments to the buyer on the behalf of the borrower so let's say they're paying 400 bucks a month they defaulted oh great you're gonna sign that loan back to us and we're gonna undertake in writing to make those $400 a month payments to you to the end of the term and then we're gonna deal with this guy on the backside so like that provides some peace of mind for them it's not a guarantee we're not guaranteeing anything but we're they're saying hey we're in this together we're gonna take care of you we're not just gonna leave you out there to try to figure this out if something were to go south awesome Martha you know we're talking about missed payments and you know borrow defaults do you have in your situation who pays for the foreclosure feed if something does go foreclosure how do you guys structure that when you're selling your parcels right well that's a great question we probably have and I don't know what everybody does but basically we do all the asset management on behalf of our partial buyers what we've on is we are dealing with investors that want to be passive many of them are close to retirement they are investing mostly with IRA self-directed retirement account money and so they don't really want to oversee the data des aspects of dealing with the assets and like Josh said they don't want it they don't want to run a business they want it to be truly passive and so we manage all of that for them if we come into a situation where we have a slow pay account possibly it needs to be modified we would we would handle that of course we're always looking to work with the customer in any way we can we're not we're not trying to go just jump into a foreclosure right off the bat we want these people to be able to keep their homes that they can in any and we work with them in regard to that we work with them to try to get a deed-in-lieu if we you know if they can't pay and then of course the last resort would be a foreclosure where we basically just as I said we're already doing the asset management and we're going to stay in that role and take the property through to foreclosure and we normally absorb that expense and then as also as Dan and Josh said we also are in a situation where our partial investor is getting their full payout irregardless of the steps that we go through and how we do the work out because we also have options in our agreement in regard to how we can do that but it's our personal you know you know process and it's just our process at the office to manage all of that for them to so that they don't have to get involved in that so they're going to be made whole and they're going to get their their full payout irregardless of what the process is on that I think is it you know it's not the worst case is that true no I mean you know there there are benefits of course in the payoff also and so for us you know when we do have a payoff it's a situation where we you know we can help the investor reinvest the money and you know of course we're reinvesting that that money too if the loan pays off early all right now for the good stuff a little bit here some reason what are these things sell for Josh what are you selling your partials for what kind of yield well ours vary because we're dealing with very passive investors of course we are only only buying and selling a partial on a performing loan most of the time they have excellent payment histories they have since I'm muted am I am i muted know we can hear yeah we can hear you okay I'm sorry yeah so we're looking at loans that have been paying hopefully for for some time I mean that that's our when we're looking at selling a partial that's that's what we're wanting is just for this partial and buyer to have security and the fact that that it is a really solid performing loan so it can start anywhere from a 6% and go on up to 10 or 12 depending on the risk tolerance of the investor so I think that's important for the investor to understand it's like Dan was talking earlier about the different levels properties like are you looking at an a quality property or RC quality property and notes are graded very similarly so the more secure the loan is I would say the lower the investment rates going to be and as there's more risk involved in the loan then of course it's going to be a higher rate of return to the investor awesome Dan's one hearing is for a period time who has experience and you could bias i array you can buy pink you know deal get up money were you just getting into is that what we're hearing correctly it's pretty cool because we're not going to sell you a note when I'm gonna say you're partial you can get yourself you know eight nine ten to twelve percent depending on a deal and depending on what they sell the partial lot and you know whoever's working with you I used to work it out the way I would work it out as I would always try to give somebody a ten percent at least a 10% return on their money so I'd figure out how much money to have how many payments I have and how will you solve those famous so I wouldn't just go out and say I'm gonna solve you know fifty payments somebody would invest would sit down with me and they would turn around and say hey I have twenty thousand dollars what can I do with that I really didn't have a note to sell them they really couldn't do much with all my properties so I'd say listen I'll sell you off you know forty payments at this pay this amount and I would show them how it worked and then I would tell me a little bit about my guarantee and I would usually work out and they loved it they could do it like I said they were able to get involved with our I raised a confidence health savings account yes is everything cash whatever it is but to get in the system but I like what Martha does they actually manage the it based on manager if you guys saw that that's pretty cool if somebody wants to get in you are Josh Saunders me myself Josh what do you say about that as well live in a money year but no money here I'm sorry I lost the last K Lenny said are you saying people can get money and have actually of you guys yes yes so essentially what it is or at least what I'm doing is we are assigning when you buy a parcel we're assigning the note over to you so you have full ownership for that period of time so let's say you purchased the next hundred payments worth you have an amortization schedule which shows that you own the note for that period of time not only do you have you know whatever purchase and sale agreement whether it's a warranty or something of that nature like we're all alluding to you also have another thing to consider you have a low investment to value meaning let's say this property is worth $75,000 it doesn't matter what the partial seller purchased it for let's just make an assumption you know we purchased the note for 25 grand or whatever in all 70 or 75 owed well this partial buyer only came in to buy their part at 15 or 20 grand so they're in a property in addition to everything that we said they're in a not in a property but they've purchased a note with a huge upside so they're very well protected in a sense that as long as the the deal structured correctly they're very well protected I'm gonna assume you are more than just I think you're echoing off your phone when do we get into Southwest how is that I'm sorry would you repeat that what's the difference in the cost of servicing Miller what is the as a performing no we know all right well to explain that to the audience a little bit what we and I'm sure possibly Dan and Josh may do also is we use third-party servicing companies so when we acquire the loan we board the loan with a servicing company and so they're going to have a monthly fee involved in collecting that monthly payment taxes and insurance if there's an escrow so they collect all of that for us and then when you acquire the partial then they just forward the payment to your account so that's how the servicing works and it varies in price every month depending on on the servicer it can start as low as eighteen fifty per month and it could go around to up to about $35 a month depending on the servicing company that you use all right hopefully we actually the questions came out again was asking about IRA by these we are on other things like where history class a lot of people walk into space 20 grand I walk up to all would be Seles austenite kind of fear kind of worrisome would that I encourage people want to gain a performing world so I'm open for Q&A talking followed the ecers let me know way from the let me know let me know so buying a parcel am I still on I don't know can you hear me okay you absolutely can use more than one account to acquire a loan and you could either you know have undivided interest you could have percentages depending on how you know how much money is in different accounts and the other things that you can do is create a personal property trust where you would create a trust both of those entities would invest in the trust at whatever percentage would be appropriate depending on what how much they're contributing the trust then would actually acquire the partial interest in the loan so that's just another step if you wanted to go that direction but that is one avenue that is available and it works really well we've seen we've had really good experience using the personal property trust as opposed to having money coming in from so many different accounts and trying to merge all those together on one document but that's just an option you know just so people are aware that that's available all right and as you see the chat there's another question regarding market for parcel I'm resuming the question is you want a performing loan Jay as a performing loan Kings don't worry I'm gonna try [Music] immunity day from you today we can't hear you Davis people are getting a deal is where they wanting cares go Bank won't let them cash it's too low but nested and they want to get money in there again is that a good at 8% making them available just because people want to get a look do you want to tell of a great performer a little bit property what would you say it's the main reason it marries and when we bought lens from individuals there's so many different reasons that they would sell an individual loan you know most of the time it's a life event right an illness they need medical medical money they just have some kind of crisis possibly in their life and they may want to sell the loan because of that and that's like if an individual holds alone and then you've got rehabbers you know someone that buzz we have the property you know then they sell or finance so it's more of a business for them so they definitely need a situation where once the note is seasoned that they can sell the note to go invest in the next property to rehab and then of course we have the institutional paper that comes to us because we also bought bulk acquisitions where you've got you know hedge funds that have acquired these assets in bulk and then of course it trickles down and gets sold off and you know because of different reasons we will end up bidding on you know portfolios that have 50 hundred 200 loans in them and so then we also so we also have that institutional paper that that we require and of course those are traded for various reasons also so it just depends on who you're buying from where the assets are coming from as to why they get sold so I'm gonna get open up there was a question regarding accounting the servicer we do have someone right now who said you know they can see what she do this problem it's denied or make a deal out it was stuck in the ESA looking to buy or get a loan and let my kids raise it so I encourage anyone curiosity about this get a post in hand or whatever with that wall away for different reasons like to hear from everyone here how many you guys it really varies my the inventory is just consistent turnover I could have 10 at one time or I could have thirty at one time so it just depends on the inventory that I see that I have the opportunity to acquire and then also like I said what one of the things that we really like to do is you know we like to get the servicing set up and transfer it into the servicing company we want to make sure that borrower has you know actually started making the payments to the servicer and that they're on a really good payment you know cycle where they're they're paying on time and they're making that payment every month and so there's there's no glitches there when we do actually transfer that partial over to our partial buyer so so it just depends on the stages that you know that that the different loans are rent us to actually what I have available but but we normally have would say anywhere from about 10 to 20 at any given time that that we have available to show someone if they wanted to inquire with us and and look at what what we have and talk to us about about what they might do with so the other few questions you detective really just let everyone answers you know what happens after what happens with Dean but the actual house it's the owner who owns a know how was the ownership you sell it only entire paper until it's live dan what's your on that okay and then paperwork it's actually owned by them for let's say the forty or fifty pain amends and then it's automatically reverted back because it's what the Serbs and I have mine with servicing company when they did it so the servicing company will say you sell fifty payments after the fifty first payment it transfers right back to you on your in your payments I mean I hope that you know um I the question was broken up a little bit just cuz I mean here great but that's from what I got into question I think I answered it if I didn't if you want to jump in more for Josh feels right cuz I didn't hear no question I think the question was you know who owns the note when the parcels sold who actually owns it who is controlling it is it at all partially owned by the person who sold in the first place or the fully owned by the personal yes I think points up in Josh go ahead I think Dan touched on that essentially what happens is let's say you buy the next sixty payments of a note so starting next month you're gonna receive that five hundred ollar month payment or whatever it is for the next sixty months that note full ownership of the note is assigned to you via an assignment to your IRA let's say at the end of that term myself or whoever else in the company or the servicer is going to contact you and say hey it's time to assign it back that's part of the agreement the purchase and sale agreement and then we cover that assignment so we handle the paperwork to do that it's very simple but what makes it very appealing and very sweet to folks is you know we're not holding one side of the ownership and you're holding the other even though we do have an interest in the tail-end a partial seller is assigning that over to the buyer and so in most cases you know I can't speak for the other folks but in most cases my experience has been during that term when you purchase a partial you have full ownership of that note one of the questions in the room here was you know and I would jump back to take his question in chat was who typically pays Martha who typically pays for this Simon we saw our solo recording right well when we acquire the loan of course we're paying for it when we when we assign the loan or assign the partial then typically there's some closing cost involved in the acquisition for the partial buyer you know it's it's not expensive but there is you know there's some document prep to it and you know then you've got a recording fee so there there's a small amount of closing cost that's involved that the partial bar does just pay one of the questions asking the gives down these two years up or leave what do you do then what do you do then but Dan jump in the question in the question we really haven't had an issue with that I can understand you know that somebody's curious about that but I don't think that we've ever actually had that happen I think the payment would still revert back because you know we you know you they are under an agreement the servicer is monitoring the agreement in regard to the terms of the loan and I know that that there is a situation we don't necessarily do the paperwork upfront but there is also the situation where we could go ahead and have all the documentation prepared have the partial buyers on everything and the servicer would be holding those documents which would be the allonge and the assignment back to us which the servicer would just file at the time that the partial reverts back to us so so that's an option there just for the audience so that they know that's something that they could do to protect the back and interest if they wanted to go ahead and have that done in advance and have a service or third-party document custodian hold those documents for the time that that it should revert back payment came right back basically in their account so we didn't we I've never had and I probably sold well over a hundred hundred some parcels and I'm not a big partial guy now but we never had an issue where we had that happen to us well yeah we anytime we did a partial we had the paperwork signed in advance so it's almost like signing a deed and lo at the closing when you do private lending you have it signed in advance that they don't they don't perform you just follow that paperwork and that's it but I like north I haven't had they've done a lot more parcels than I asked but I haven't run into that issue yet either Joshua thank you you're answering a lot of good questions in the chat you know and I think that a lot of the questions were you know what happens it pays off it's great thing one of the questions I was really good in the chat was Peggy asked can parcels be used as an alternative to an equity split in a JV agreement more than shaking her head what's your feeling about that again what commercials be used as an alternative in equity split in a JV agreement agreement I would I would be very cautious about that situation that I just want to caution people about it if you're going to do something like that I want I really want you to reach out to an attorney and make sure you are not like Martha said I would definitely check with an attorney on that one I probably wouldn't even touch it to be honest with you it's just now I don't think it's worth it I mean you gotta just get involved with deals you think they're worth it I don't see that as being worth it if you're gonna sell a partial somebody sell a partial somebody if you want to raise money from somebody to buy a part whether you doing an LLC a ppm or if you can truly use a joint venture agreement but um that's that's about it I just you know we're gonna be very careful in thinking in fact I've turned down probably about four different investors and the last month that really only want to do joint venture agreements with us they had money they want to do joint venture agreement I'm just not doing it at this point I forced him into an LLC it costs us a little bit more money but it covers us a hundred percent so you want to be careful I'm doing that and how you doing and just make sure an attorney I would have an SEC attorney look over your paperwork to make sure you're compliant because it's never an issue until it's an issue guys it's very important my attorney I mean he ripped the shreds apart of the joint venture agreement I've been using for years thank God I haven't had any issues and I've done for a PPM's and we're working on a fourth now for that reason but like I said we just we just this mom file two LLC's with different joint venture parks so called joint venture partners and it was like pulling teeth with them and in fact their self-directed IRA companies out there are telling them not to do that because it's too much work and it's it's a fight but you know what you better off doing it right up front and you know being in compliance and not having any issues and protecting my biggest thing is for honestly guys protect this industry because I love the industry and some great things for me and my family over the last you know I'm in his 29 years I had a great conversation with Eddie at the event who spoke for baby were there we spoke probably in a couple days I spoke with Eddie for the first time for like two hours and I think I love him to death because I think he's the real deal and he's you know out there saying he wants to protect this industry and that's what he cares about I mean God he's a relic in this industry he's he's somebody I actually look up to in the industry and you know he was wants things done right and that's kind of how I want things done it kills me when I see people out there doing things wrong way and in doing joint venture agreements the wrong way when it's truly not a joint venture okay so yeah yeah I say everybody running around Plano and throwing these joint venture agreements now yeah we all get even an opportunity to issue you people's money at risk and you're not protected yeah he said this dangerous joint venture agreement were throwing around it's scary so we don't want anyone put in jail because of their SEC knocking your door so I do you know we've had some great information here amazing and stuff that I hope everyone got a nugget out of and I'm gonna wrap it up with you know encourage people who have a little bit of money they're just it's dangerous to get into a non-performing that low or camp by performing alone this is a great opportunity to reach out to me you have my email address I'll connect you with things people or whatever we have deals flowing so if you have a little bit of money and been told you could buy a number former I just stressed that be careful with that should be an email ask me who has it let me know how much capital yeah and I'll connect you guys I connect anyone here on on the webinar they will also get your contact information so they'll be reached out to you as well so again I want to thank all you guys again for joining me tonight again give me your quick who your email address and best contact information and leave it there and again I want to again say thank you before closing out mar 13 just briefly your your contact information so everyone who's on here can you you know see you can email or give you guys a call absolutely everyone can reach me it's Martha speed and my email is Martha s at Colonial funding group.com again it's Martha s at Colonial funding group comm damn what's your deal what's the best way Capital Management calm and you should me an email I'm pretty on top of my email I travel a lot so I always tell people give me 24 hours and get back to you but usually it's sooner and I'll put it in the chat box as well and I see Josh do that already Thank You Josh I appreciate you guys Josh if there's any questions you have all Josh information air oh yeah Dan just change that from private to everyone in your chat box and your response you sent just to me so again thank you all for joining us if there's additional questions please feel free read it to me and I can connect you guys with these guys if you haven't asked it to sell also reach out to me I'll connect everyone is the best I can thank you very much guys for joining us have a great night and this will be posted on the YouTube channel enjoy your evening guys thank you everyone.