Myths of Note Brokering & Buying Direct from the Bank | Real Estate Notes Show

Episode: Myths of Note Brokering & Buying Direct from the Bank Dave's Goals and Plans: - Still interested in hypothecations and planning more deals with Jay Ben - Monitoring market changes and builder activity as potential problem indicators - Sensing change brewing in the market and wondering where it will lead - Looking forward to Melody Wright's presentation at DME conference about upcoming market crash - Encouraging people to raise hands about experiences with note brokers on social media Nathan's Goals and Plans: - Experiencing a family emergency (episode topic changed due to this) - Has been sent his own assets back by someone claiming to be a direct seller - Often shares story about brokers reshipping assets without permission Key Recommendations: - Always sign Non-Disclosure Agreements (NDAs) before sharing note assets - never blast lists outside your organization - Understand what a note is and how it transfers before attempting to broker notes - On social media, only share: city/state, interest rate, term, and property type - omit full address and detailed loan terms - Vet all potential buyers before sending assets to ensure they are legitimate - Network with people you don't know at conferences - don't sit with partners or existing contacts - Add value as a broker rather than just shipping spreadsheets - Never post full loan details on Facebook or social media as this violates borrower confidentiality Topics Discussed: - Myths and misconceptions about note brokering - Importance of Non-Disclosure Agreements (NDAs) and borrower confidentiality - Market trends and upcoming potential crash predictions - Hard money deals and wrap note opportunities as emerging market curve - Diversified Mortgage Expo (DME) conference announcement and networking importance - How to properly market notes on social media without violating confidentiality - Differences between real estate and note brokering businesses - Proper vetting of buyers and maintaining professional standards as a broker I'm still liking those.

Um I was just talking with a friend of ours, Jay Ben, just the other day and he's doing some hypotheications and uh looking forward to doing some more deals with him. But um yeah, I'm still liking those. I I am kind of keeping an eye on on what's happening in markets and everything. Um just as things change and if builders decide that they don't want to build anymore, then uh then that could be a problem. But uh but so far so good. It's looking okay. Um it's interesting. I think we're we're I'm feeling change in the air and I'm I'm wondering where that's going to take us and and what that's going to look like, but I I don't know.

I can just feel it brewing. Something's brewing. I did notice John say you couldn't hear me at first. I apologize for that. Um I'm going to quickly repeat what I said earlier. Our guest of honor, Nate Hair, had a family emergency. So please keep your thoughts with you with him. uh and his family um done the thing. This will we change the name of this topic as well as what we're talking about. Um just keep your your thoughts with him and his family. Hopefully things are okay. So yeah, for me I'm thinking the same thing. Um we're shifting gears a little bit. We're seeing a whole lot of hard money deals out there and wrap note opportunities and things like that, which you know, it may be the new curve.

Um, us old guys may not like adjustments, but we have to fly with the thing and see what happens. Yeah. Um, and I, you know, it's amazing as we just I think we're getting better at it. I think so. I think so. It's interesting uh how this business allows for change fairly easily. Whether we like it or not, we have that ability to just pivot and change and and figure out, you know, what different direction we want to go. So, as we look forward here, I'm I'm thinking and and Melody Wright will be at DME. She'll be talking all about what she sees coming down the pipe with her experience, which is vast and and I I trust her judgment quite a bit.

But anyhow, um she's she's looking at uh another crash coming here uh and and not a pleasant one. So, I'm curious to see what she's going to see say. and we've got about oh about six weeks until conference time and so a lot can happen in six weeks. So I'm I'm interested to see what's going to happen here this year. I think it's going to be an interesting year of change. Uh so keep up keep on top of things as much as you can and networking, right? That's a big thing. listen to other people, see what they're doing, see what adjustments they're making to make sure we're all on the same page, but also you can kind of get a sense that people are talking about the same stuff.

You may have to change. Yeah. Yeah. Exactly. And and networking is again so so key. This this business is all about relationships. So just talking with somebody knows something and and then you share that with somebody else. And I'm not talking about gossip. I'm talking about like staying on top of whatever's going on in in the industry. Yes, absolutely. And I think people get lost in that just in the the game of what we're we're trying to do and how they're making things out to be. So, another reason to network, right? Uh we have a networking a lot on the show and for those people who don't know who we are, we've been doing this for a long time, 15 plus years and we've seen a lot.

Um yeah, and when we shifted gears in a matter of about an hour ago to this new topic, it's something we've been dying to talk about as well. Um but it's topic for just us to talk about and we see a lot of this out there, right? Even with the rap notes and hard money loans and and notes in general and getting emails and social media, I'm sure if we can have people raise their hands, how many people out there have ever seen a note broker out there consistently and doing their thing, right? It's just it's crazy, right? Yeah. Yeah. So, I one thing I we have to talk about it real quick is just Diversified Mortgage Expo, like I say, coming up quick.

Um, I put your link, Dave, uh, into the Facebook comments. Okay. Uh, but use Dave's link uh, just so we can kind of track where people are coming from. Uh, that's helpful in our in our research and our marketing on those kinds of things. Yes. But get your tickets because we've got uh we've got tons of really great people coming. I I was doing, you've probably seen on on social media stuff where I've been posting little interviews I've been doing with people. Yeah. Um, we've got some heavy hitters. This is going to be a really great conference. So, I'm I'm very much looking forward to it. But get your tickets today cuz it's uh early bird pricing expires the end of next week at the end of March and so does the hotel block.

So, make sure you get your hotel um booked as well because that that will go away as well. So, get in there. Make sure you get in there and get your tickets, get your room booked so that we can have you there because it's a it's a big part of everything is just having enough people there to talk to. Yeah. So, I encourage you guys out there if you haven't been there um take a look at it. Get an idea of what you're looking for and come down and check a look at it. I think that you'll never regret going to these kind of things, right? Yeah. So, no, I would encourage you to come down if you're new.

I would also encourage you if you're experienced come socialize and network with us. Um, have dinner, have lunch. Rule number one, we'll say this a million times when you're there. Please don't sit with someone you know. Please sit with someone you don't know. So anyway, I am I'm I'm going to make it uncomfortable. Like I will have I I'm going to invite you as you're sitting in the audience uh during you know any after the next speaker change spots. Yes. Uh go sit by somebody you don't you don't know. If you come with a partner, don't sit with your partner. Go sit with somebody else that you haven't met yet and have this your partner do the same so you can double team and uh and meet that many more people.

It's a big deal. The more people you know, the better. So, absolutely, we'll make it uncomfortable for you. So, I'd love to hear put in your comments below if you're watching us live on Facebook, LinkedIn, YouTube, or wherever you're watching us to tell us if you've dealt with a note broker. Have you dealt with someone that's brokered notes to you? How has it gone? Did you enjoy it? Was it useful? What was something they did well and something they didn't do well? I get this question for you as well. How can I broker notes to you successfully? Step one, man. Yeah, right. Can you take a listing, real estate listing, get it and ship it out to somebody, a bulk list? You can do that and not any value.

You can't do that in notes. First number one rule with notes is you're sharing confidential borrower information. If I if Nathan sends you 10 assets that's for sale and you ship it blast it out there. You sign a non-disclosure with Nathan. And if you didn't sign non-disclosure with somebody, there's a problem. If you sign non-disclosure that the NDA literally stands for non-disclosure agreement, you cannot disclose it outside your organization. Right? When you do that, you are sharing borrower confidential debt that you cannot share with anyone else. And when you do that, that can be Yeah, that's sensitive information.

I I don't necessarily want everybody else to know or, you know, people that I haven't authorized to go and look and see how much I owe on my house and, you know, all the terms of my agreement and whether I'm making payments or not. Like, I don't want that information out there. It's the same thing. the these are real people that are these are actual loans on actual houses with real people in them. Y So when we're sharing this information, it's sensitive information. So you cannot take that for granted and just blast it out there. Yeah. So we see Robin on over in Facebook said he had she had two note brokers bring her a note who turned to be she was knew virtually nothing about notes.

Needless to say, we didn't get past two phone calls. So, we're going to get to what that means in the problematic situation, but I encourage you guys that if you want to get into note brokering, what do you think the best way for someone who really wants to go note broker, what should they do or learn beforehand before doing something like that? Understand that this is not real estate. It's this is loans. And I've said that so many times, but it it's still the same thing. if if you don't know what a note is or how it operates or how it transfers, uh you really have no business trying to broker something that you don't know anything about.

So, make sure you understand at the very least the basics of what is a note and how does it work? How's it transferred? If you're putting yourself in the middle of this of this deal, yes, that's fine. And and and we'll put that out front here, too, is you can broker. And I've dealt with brokerage. I've bought through brokers. They've been great. Um, but there's a right way to do it. And so make sure that's what we're going to talk about today, the right way to do it. But make sure at the very very least you understand what it is that you have and what you're selling and then how is that transferred.

That makes a difference to how you approach uh buyers and sellers. Yeah, we encourage you if you want to become a note broker, understand how to buy a note. Understand and add value. selling getting a spreadsheet and shipping it out to people is not useful. Um, it's unprofessional. It looks bad on your part. Um, I share the story often. Nathan has too. We've been sent our own assets back to us from a person who said they're direct seller. That can't happen. Guys, listen. If you're new and you ship our ass to somebody else who you think is a seller or buyer, you better make sure you vet them out and make sure they are buyers cuz they couldn't send that list and put post on social media or email us and say, "Hey, look at these assets." And now you're going to get blacklisted as a broker who didn't have permission to ship out our assets.

And uh speaking of, you know, one of the worst things you can do, one of the worst case scenario is uh throwing out all those lane loan details on Facebook or something like that. Oh my goodness. Again, this is sensitive information. This is private information. You cannot just post it wherever you want. That's extreme. No, no, you don't do that. What would you say is a right way on social media? Because we can use social media. What would be a good post to put on there about a note that you have that you want to sell? Yeah, I have a note. So, things I would omit. I would omit um the address for sure.

Uh if you include the city and state, that's fine. Uh that gives us as note buyers, we want to know that information anyway. So, that's that's a good thing to share, but certainly don't put the address on there. Uh, you're going to talk about what is the interest rate. I I would be I wouldn't put a whole lot of information on there. I'd say I have a note in Raleigh, North Carolina, looking to sell. DM me for information. Something like that. That's probably the best. I would tell to avoid people hammering you. I would give them the interest rate and the term. Yeah. That's it. Yeah. because most people can say I'd buy it or not buy it just generally based on that information.

If you're trying to sell a 4% note and it's a 50-year note, you're gonna get people passing on it, right? We've had class shows on that episodes on that topic. But that's all. Give me your state, give me the city, give me the the term, give me the the interest rate, and then also please include what type of property. Is it raw land? Is it mobile home? Is it residential? All those kind of things are good. Yeah. Right. But just some very very basic information. Do not go into major details online. It's it it's not worth it. But yeah, I agree. If you put in there, you know, a 9% interest rate uh and a 30-year loan on uh a property in whatever X city.

Yeah. Uh that's enough information to get some responses and you can start. And if we're missing anything, put it in the comments below and we'll answer the questions later for you guys. Right. So, when you're going to send this out to a buyer, what does it mean to vet out a buyer? How do you know if someone's truly a buyer? What do you think? What's your thoughts? Yeah, Robin just talked about that. Uh, that's a great point, Robin, because are they actually a buyer or are they another broker? So, are you buying for your own portfolio? Are you buying on behalf of somebody? Uh, are you brokering? Those are very appropriate questions to ask and you you should so that you know who this person are and you know if you wanted to go a little bit further how long have you been in note investing.

Um if again if you really want to push it and be like what's the tell me about the last note that you bought just who did you buy it from information? Yeah. Who'd you buy it from? I bought it from Nathan Turner. Oh okay. Let me ask Nathan if he did you know or not. Right. It getting your name out there. When you do the opposite, what is the coin phrase we use in our space as a bad word to use when someone's broken? You get the joker broker. Yes. It turns into a daisy chain and it turns into nothing and it and potentially could turn into a lot of trouble. But uh but yeah, you do not want to be the joker broker.

You certainly don't ever want to have that that nickname attached to you uh because that can that could really disrupt a lot of your business. So, if you serious want to get into this, what I would suggest you doing is get a list of assets from Nathan, from me, or whoever, review them all. Find out what the true value of that property is. Do due diligence like you're about to buy it. And when you come across it and say, "Listen, this asset is perfect. I just don't have the capital. I pulled the title report, the O&E report. I pulled the um the value of the property. I talked to an agent, the BO, whatever you want to do.

I reviewed the collateral. I even sent to attorney. It looks great. I'm going to tell you right now, Nathan will pay you more for that brokering than any other broker in the world. And I'll tell you what else. I'm going to come back to that. Yeah. And I'm going to keep coming back to that same broker because that's quality information they're coming to me with. That's something I can do something about right away. So, yeah. The value ad will get you more money than if you took a 1% or 3%, whatever. I'm going to pay you handsomely. I'm going to I'm going to give you a number and you can make the difference.

I don't care what the number you make. As long as I get my return, it works out. So, yeah, we're pushing on this because we're seeing a lot of this out there. And hopefully those who are doing it are going to learn something from this. Move on. So, you really truly want to go ahead and pretend you're going to buy the asset, do the due diligence. If you don't know how to calculate bids and stuff like that, you can watch online stuff, take our class, whatever you want to do, or take someone else's class, get a calculator, price it up, and say, "Here's my proof." And you're going to get feedback from people like ourselves and say, "Oh, that number doesn't make sense.

How about this, this, and you're probably get real life feedback saying the calculator missed this, this, oh, okay, great. If you're trying, we're going to support you." I believe me, if you can work, if you can hustle, you're going to make money in this business. when you look at something. So, have you ever brokered a note? I have actually to our friend Kim. So, have I? Yeah. So, brokering was aation. It was a $120,000 Tennessee note. I could not buy it. I didn't have the 120 grand 2013 or so. Didn't have it. Pulled the O and pulled the BO property was worth like 190 200. It was a solid deal and I sent them the capital.

I had the O and report everything else, right? It's golden. golden, right? Um, yeah, I've done the same thing where and I've even had it where I had a list and I was going to buy two or three, but there were five or six on the list and so I went looking and actually did we partner on that or somebody else. Anyway, yeah, I went back to So, I've done it different ways. Other ones where I've just brokered them out and then other times where I've gone in with no other node investors and said, "Hey, I'm looking at buying these three. Are you interested in these other two or whatever it is?" Yeah, we've gone in together and and done that before.

So, there's lots of different ways you can do it, but do it right. Yeah, I see Gabriel over on Facebook asked a question if we touched on rate, but is there anything wrong with sharing the number of payments remaining, the present value, which would be unpaid balance or the payment amount? Um, there's nothing really wrong with that. As long as we don't find out who it belongs to, it's typically okay, right? It's really, you know, it started with 360 months of payments and Riley and um here's the current balance, but I don't, you know, generally speaking, if the notes a 360 month, 3%, we're going to pass on it.

If it's a 360 month with, you know, a 15%, we're going to like it. And if it's just less months, we're just going to bid to that number. So, you don't truly need to give that. I would definitely give the security. What is it secured by? raw land, mobile home, ditled home or residential or commercial space, what is that? Um, but yeah, you can definitely as long as it doesn't tie back to an individual or that borrower can say, "Oh, that's mine." You don't want to be in that position. And if you're going to broker, make sure the seller is aware that you're doing it. If I give you a list of assets and you try brokering it to somebody else, I better be aware that you're trying to broker it.

I may not approve of it. And if you do that, you have egg in your face when that buyer comes across and it's not the person you connected with. They may look bad. Now granted, I would learn to become a broker before you start brokering. That's a key. So yeah, and and then again just kind of so for example, um I've had ones where I put up the loan for sale uh maybe on paper stack or something and uh and before I put it up on paper stack, I probably have already talked to First National and they didn't want it because whatever because of some reason. Um, I've had it where then I put it up on bas or somewhere on paper stack or whatever and then they come back and they're trying to bring First National into the deal and they're trying to broker it to First National.

I'm like, you think maybe I didn't already try? Yeah. And, you know, so just be aware of of what you're doing there. If you're just going to take stuff off paper stack and try to throw it into First National, that's probably not the best approach. Yeah. Uh, you're going to do better with private investors in general. Y uh bring you know your pocket people. Don't you know the national buyers we've probably already exhausted that we've probably already talked to them. So you know just don't waste anybody's time. Yeah, that's true. We're all connected somehow. We've probably all seen those assets.

But you brought up a good point. We had Jeff on a week ago and Jeff's way of getting assets is like no others. Mhm. They're able he's able to get a hold of notes that no one else is touching and he can broker every one of them easily because of the fact that the value ad is not just Nathan sending assets somebody and them send to me. Those assets that nobody else is seeing and he's able to get a hold of them. I would encourage you guys rewatch that episode or relist on the podcast. the idea of start actually mail marketing for notes, buying lists of lenders and sellers and mailing them. Jeff went through so much detail.

We'll probably back him back on the show eventually, but amazing detail on how he does mail mergers and mail he does a thousand piece of mail plus every month at the post office. Unfreaking believable, right? Amazing, right? Yeah. So, at Diversified Mortgage Expo, we've got a company called Click to Mail. They're going to be there. Uh, and that's their business is doing direct mail marketing. So, if you want to connect with somebody, we've got uh I'm trying to get a hold of Scott Arpan, trying to get him. There's a shout out, Scott. Yeah, he's getting over the flu right now, but yeah, we'll connect with him later.

Okay. Yeah, we're talking the other day. Yeah. So, again, you guys can go out there and buy that list. Um, when it comes to collateral, I would review the collateral to make sure it makes sense, but you don't have to deep dive into it, right? Do I need you to broker and review the collateral with an attorney? No. I can do it myself. I'd feel more comfortable with my attorney, but you could do it if you choose to. When it comes to note brokering though, what was your strategy when you broker? Why did you broker it? And how'd you go about doing it? uh for me is the same kind of thing as your situation where I recognize look it's a great deal I just don't have the available capital right now and that happens where I've run out of money because it's put other places and that's fine.

So then I take it to somebody that I know who is interested in that certain kind of note. So I mean I had buyers back in the day that I knew were uh buyers of contracts for deed. So I'd say look I'm looking at these contracts for deed. It's a list that I get on a regular basis. I'm tapped out for the moment. Uh but here's ones that I think are good and here's kind of my analysis. What do you think? Is that something you're interested in? And then I wouldn't try to break the bank. Like I I was just trying to put myself in the middle of the deal. I'd charge, you know, 500 bucks, 1,000 bucks as a brokering fee.

And and that's great. And partially what that does is it helps me stay in the game. Um networks that seller Yeah, exactly. The seller is happy with me because I'm helping them get a deal done. The buyer's happy with me because I'm bringing them a deal. And I'm happy because I got a piece of it in the middle. Yeah. So, it's just trying to put yourself in a situation where you can get win-win situations wherever you turn. Yeah. And on our Facebook group this week, this topic came up. Let's say you only have three, four, $5,000 and you're trying to broken and braze your capital. There's other ways you can take three, four, $5,000 and do actually buy a note.

you we've had on our show before buying partials. I know there's a couple people we spoke to this week or I spoke to this week on a phone call about what do I understand about partials when you buy a partials exactly by buying a note. Right. However, it's great for beginners because the seller is still part of that note because by when it's done they're going to get that note back. So if you only have four or five $6,000 maybe you create a Roth this past year and put seven grand away. We'll take that seven grand and go buy a note, right? And the process of buying a note on a partial was a yield calculation as long as the seller's willing to do a buyback if default happened.

And what a buyback I mean by is that if the default happens halfway through the payments, the seller of the who sold you the partial will pay you back of the unpaid balance at that current time. So you don't have to deal with the default or foreclosure. Now, he may ask for she may ask for a little lower yield on that. But hey, listen. It's a basically passive investment. We have a bunch of them we bought and sold that we've done that. Go get your 10%. If you have your own capital, you me and Nathan can't compete with someone who's going to buy partials at 9 10%. You're going to blow us out of the water.

We can't buy that. So, if you have a little bit of money, go buy a year partials, one year payments. And isn't that better than parking it somewhere at 5%. I mean 5% is not bad, don't get me wrong, but last I checked, 10 was better. So yes, some people ask, how do you calculate partials? It's a yield calculation. It's the handy dandy calculator you can use. Now, we've told you before, if you're buying a full note, the handy dandy calculator is very limited because it doesn't take the non-performing side if that note defaults. But in the partial world, if you have this buyback, as long as the seller doesn't go dark on you, I would make this strategy.

And I would add to it, I don't know if I ever shared on the show is what we typically do is I don't try buying any more than half the payments left. Say I buy a partial Nathan and the there's UPB is 100 grand. I'm going to buy 50% of the payments remaining. If there's 20 years of payments 240, I'll buy 120 max. And what I put in agreement is if you go dark and it defaults, I take control of the remaining higher note. That note stays in my hand. So, if Nathan runs away and goes dark and you're scared of that, hey, listen, I if I try and I have duct tation three times and then I hit you up in 15day increments or whatever I agree upon, I then own that note and I can foreclose.

So, if I'm stuck foreclosing in a partial, they either new or experienced and I didn't really want to do that. I'm into that thing for half the cost of the note. It's a golden home run for me. It's incentive for the seller to stay involved. So if you have a problem, you should be able to reach out to your seller and do it. For those who are listening, that's a golden nugget there, right? Yeah, that's great. Very good. If you're new, look at partials. You can definitely broker. We have a class that we run once in a while on how to create a calculator. If you're buying a whole note, I would encourage you to have a calculator and then send us one asset with the number spread out and telling us the comps uh that you ran a quick title from a protitle and it's cleaned or maybe there's a partner you didn't understand.

It was a IRS lean and you didn't understand what that meant. Ask us, but here's a deal. We have opportunity to buy and this is the number you came up with. Yeah, we have no problem discussing that. So, we wanted to Anything else you want to add about brokering and the the myths or cons of it? You know, I think just bottom line is it can be a good thing and we we sometimes get down on brokers and and don't mean to if you're doing it right. Like I say, both of us, we've bought through brokers all the time. Um, and if they're doing it correctly, it's golden. We love that. That's easier for me because then I don't have to go out and try to find these notes.

Yes. And if I have somebody just sending them to me, that's so much easier. So, just do it correctly and you can make some good money. If you're young and you have time, go rock with this. Go find assets and learn. It'd be awesome for you. So, let's shift gears here, right? Our second part of our topic. And people have asked me about this. I don't know how many times even new creators who are listening to us say, "Can you buy from a bank?" Yes. The answer is you absolutely can buy from bank with a really big asterisk. So, we've both heard about people out there who have classes. I'm not knocking the people.

I won't name names. still have classes about people calling up banks and getting a hold of special asset managers and stuff like that. But I've also heard the flip side of people who've done it for 3, six months and been unsuccessful. I'm not saying never successful, but unsuccessful. What are some reasons do you think that people are unsuccessful for doing that strategy? Well, put yourself in the bank's shoes. um if you're coming to them, they're managing thousands of loans and you come to the bank and you say, "Hey, I want to buy uh a loan from you guys." And they say, "One loan? Why would they do that?" Yeah.

Uh besides which, then they're looking at it and going, "Okay, all in today's market, most of those loans are performing. So, what incentive does the bank have to sell a performing note to you at a discount?" one note. It It just doesn't make a lot of sense. If you if you want to get in there and talk to the special assets person and start talking about non-performers, maybe, but again, put yourself in their shoes. They don't really want that to be public information. They don't want to, you know, advertise to the world out of these 10,000 loans, we've got a thousand of them that are not performing.

That's not something that they or even 500 or even 10. They don't really want to advertise that there's people out there that are not making payments on their mortgages. So, they're going to be reluctant to give that to you in the first place. From your memory, why do banks typically sell notes? What's the reason? What's your mo motivation for it? Even when we bought bought back in the day, well, why did they sell notes? Typically, yeah, back in the day, it's because nothing was paying. So, if they're not making payments, then on the bank's balance sheet, that's worth zero. banks are not interested in taking over that property.

It's a huge amount of work as we know a lot of time and energy and money that goes into that. Uh and then public persona is now they're the bank that forecloses on people. They don't want that. So they're very motivated besides that they're talking about a warehouse line of credit. Uh so they're making payments on it and if they're not collecting on on any money on that loan, they're very motivated to get rid of that. add in back in the day then you had government incentive to do that insurance there's all the reasons in the world and banks are limited on what they actually can hold in their balance she is negative so if they have too much negative debt the government says we're not going to let you lend any more money out and for them that's terrible they they have to sell they have to sell bad debt so absolutely yeah so the other problem with it is that you know you have to get a hold of the right person having enough capital.

We've heard a million times. I know a property on my street. If I call Bank of America, do you think I can buy the note on it? No. No. No. No. I really don't. No, no. When he asked why, it's just it doesn't work that way. Yeah. Especially if you're talking about a bigger bank, a Bank of America or Chase or Wells or something like that. Now, regional, you as an individual, you've got Sure. original maybe, but like even even for those big banks, even if you say, "Look, I've got a million dollars." And the bank's going to say, "Uhhuh. It's just not it's not enough." They, you know, I've got hundred million.

Okay, then let's have a conversation. Uh, but that's not a lot of people that have that kind of cash. So, you're probably just not going to get in the door. Absolutely. And what you don't realize that with that 100 million, they're not going to get to you at 10%. you're going to buy at a five or 6% max. The yield as you get higher goes lower. It's just the way the money works. And I think people, you know, I give them credit for trying to call up everyone and make the phone calls, get the right person on the phone. It just doesn't work that way. And we've seen I've seen tapes of banks that special matters.

I see churches, old manufacturing buildings, raw land, just nothing pretty, quote unquote. And that's usually the problem we have is that what happened to that clean residential? They're not looking to sell that. They're looking to get rid of the stuff they don't want. That clean residential is something they do want. Absolutely. Yeah. So, and if you can put yourself in that situation, so we're before the call, we were talking, do you know anybody who's ever bought from bank? And both of us said, yeah, one person, it's the same person. Yeah. So again, we may not know of everyone who's done it.

And is there some success somewhere? There probably is. But in the scheme of things, I'm going to say there's probably hundreds of people who have tried calling and dialing for dollars and never been successful. You could be successful. Prove us wrong. Put in the chat, send us an email, give us some proof. Wonderful. High five to you. Right. It's just not as common as you think. I love to hear about the experience. Yeah. And yeah, listen, I'm not knocking people who tell people to do that. I'm just telling you from our experience, it doesn't work. Now, if you can get a hold of somebody like we know with a boatload of assets and then they're able to broker 40 some odd assets, that was awesome.

Um, it was a very weird deal, very interesting. We know the person, we know their involvement, and it worked out for them, which is wonderful. But that was the only time it ever worked. Yeah. So, do I believe it? And it's going to be their problem assets, the stuff they don't want, and it's going to be not at the same kind of discount that you might get uh from a private sale. Yep. Absolutely. So, when we talk about this stuff, no brokering and direct from buying from bank, we're only speaking from what our experience is, right? Again, feel free to try it yourself. Spend some time, energy, and money.

I think if you have the time to call direct banks and you have the time to review, you know, note brokering, I really think Jeff Armstrong's way is probably the best way to do any of this stuff simply because most likely Nathan seen my assets. I've seen his areas extremely small. Most of the time the small groups all send into each other first to see if a bold deal is going to happen and then it goes to the masses. So my suggestion is skip that line. go right to a direct mailing and try Jeff's class and his strategy for six months. It'll cost you some dollars. Sure. But you're going to get deals that are golden.

And he told us after the call that he think he said he bought a performing note at 34 cents on a dollar. Holy. Now we don't know what interest rate it was at performing note at 34. Now was it could have been a 10% 6%. Jeeoff if you're listening feel free to chime in. I don't know what the interest rate was, but even if it's a 4% note, that's still low. That's amazing. And his strategy is, I want to solve the reason you were looking to sell, I don't want to make a money deal here. That if you're looking to move out of the house, what is the reason for the money? And that would be the key here is solve their money problem.

Maybe it's something that you can get cheaper and do a swap. I know we have we've had show topic about swapping. Yeah, that may be the best way to do that deal and it may be the cheapest way to do it. I want to buy a boat for 100 grand. Great. Well, your notes worth 500. What if I go get the boat for you for 80,000 cuz I know my brother works there and then I can trade you the boat for the house and then you got a situation even bought cheaper. Solve the problems. You most likely can get the solution. So, that would be my idea for those who are listening. If you have any questions about any of this stuff, feel free to put it below or post later or send us email later.

But these are two topics I think a lot of people ask about. Even those no creators and no buyers alike. This idea of a can I easily note broker and make a couple hundred dollar. I'm going to tell you that you have to learn a lot before doing it. Don't just take things off social media and blast it everywhere else. Um you make sure you say it's easy, but yes, it's possible. Yes. Yeah. I couldn't tell you how many broker emails I get a week. It's not a fun number of emails where it's just doesn't make sense. Um, and I'm going to tell you, we're lazy. So, it brokers, if you're listening, you sent my JKP Holdings Trade Desk an email and you sent me PDFs.

Believe me, we're going to take a long time to get to it just because we're looking at spreadsheets faster. So, is much much easier for us to deal with. Yeah, and that's a that's another good point. So, send a spreadsheet with all of the the note details. So, that is where you get into, you know, give me the address at that point, and I want to know um, you know, what was the start date? What's the end date? Like, I want all of the specifics on when's the last I don't even know the borrower's name yet, all that stuff. The I don't need to know that. Skip it. Just give me the data points that are inside the note that's not in the remember guys the note's not recording the county records unless it's attached to mortgage right I can see all the data in this county records I can't see the note data is it performing when the next due date is serer data sheets the easiest way to get that data what's the server say it is I encourage you guys and on a spreadsheet so that we can pick it apart switch I like you know I like to see mine in this particular order so I'm gonna take it and put it on Google Sheets and then switch around all the columns so that it's the information I want first and second and third because I like it like that that no other reason.

It's just it makes it easier for me to look at how I'm accustomed to it. Yep. So that's what I'm going to do. So on a spreadsheet that's going to be ideal. Yep. So guys, I hope this was You want to pull the data. So if it's on a PDF, yes, pull the data off the PDF, pull the numbers, put it onto a spreadsheet. um on our website. If you go to sell an asset and you want to do a bulk thing, we have a spreadsheet. Fill out the form. I'm going to tell you right now, we're going to look at that much quicker than we, you know, I have, I don't know, 15 PDF that, hey, I'm looking to sell this note. I'll get to when I get to it because if the one before it is or one after it is a spreadsheet, I can quickly review it, get an offer, bid offer in a matter of minutes, and I still didn't read your PDF.

I just it just the way it works. Um so I apologize for those who are have some emails sent to us. Um hopefully get that done. Now I will tell you and we've talked about this before too. So I don't care how many bedrooms it has. I don't care if it has granite countertops. I don't care if it's the nicest house on the block. That stuff is so unimportant. It's it's way down the list. Now a number of bedrooms possibly. But what I ultimately what I want to know is what's the house worth? Yep. That that's the ultimate question. And whether it has granite or not, uh it doesn't make any difference to me.

I'm not looking to move into this house. I don't even want to rent the house. Person living there, that's their issue. Yes. I'm just dealing with the numbers. Yeah, absolutely. You know, the big things we're looking for um are our original uh balance, what the original term was, what the original interest rate was, the PNI, making sure it matches, right? We need to know when the start date of that note is like damization start. Give us a maturity date, too, just so we can calculate it. If there's a balloon, let us know what the term of the balloon is and then let us know what the term of the payments are because you can have a 5-year balloon with a 30-year amorization.

That's possible, right? Um those are the kind of things that matters. Um and for us, that's easiest for us to review. So I I'm looking through a quick spreadsheet here as we talk. You know, I see the fact that we definitely need things like what type of property it is, the term, the PNI, interest rate, first payment, next due date. That tells us in the amorization schedule, where is it? Is it beginning, end, middle, right? Um, if there's any kind of legal balance and you need us to bid on legal balance, tell us what it is. Right? The legal balance is 105. The UPB is 100. We pay property tax. Makes sense.

I get that. right? We're going to pull the thing, but those are the big things I would say. Now, if the borrower occupies or not, it's not a big factor for us. Um, that doesn't really tell us anything. And payments in the last 12 months, I have it on my list. Don't really care because I can tell by the next due date if they're paying quarterly. Yeah, it I'll see that when we get deeper into due diligence. We look at the pay history, right? Um, service notes do not send, right? Not yet. Um, for the borrower's name, I I don't again, it's one of those things. I don't actually care what their name is.

What I'm going to look at, if I if there's a column that says name, I'm going to look to see if there's the word estate in that name. And I'm going to look to see if there's LLC in that name. Yes. Other than that, I don't really care. It doesn't really make a difference to me what their name is. If it started forclosure, it is helpful to give us a docket number. If the BK got started, it's helpful to give us a BK number. Then we can look it up and see what's happening on it. If it is in foreclosure and you care to share us what stage of foreclosure, we appreciate it. Um, that' be helpful. And why is that matter? We've had an episode about this, but if it's past judgment, it makes it worth a whole lot more.

And what judge me judgment just means is the judge agreed to what the balance of the note is and that's passed. that the borrower can't contest the balance of note, right? Um, I see Joe commenting on Facebook or good information. Thanks, Joe, man. Appreciate it. So, I hope this was helpful. I hope this informed a lot of you guys um and shows you what the rights and wrongs of no programing is. And I'm going to tell you right now, if you ask anyone who's been in the space and agree with everything we're saying right now, it you want to become useful. Um, I know there's classes out there becoming a note broker.

I'm going to tell you that the most useful note brokers in the world are the ones getting a deal, reviewing it, analyzing it, and sending it our way to make sure it makes sense. Don't bring me a 3% note and go figure it out. Most likely I'm going to pass on it because I know I can't get the yield I'm looking for. And the yield's based on what my money currently it needs to make, right? If I'm borrowing money at seven or eight or my own money, right? If it's my own IRA, I don't need to get 12, 15, 20%. I'm happy with 10 11%. Right. But that's what it comes back to. So again, uh for those who are tuning in a little bit late, um and missed the beginning of this, uh Nate Hair was going to join us about solo 401ks, the mega Roth.

We will have him back on. He had a family emergency. So we hope that you guys keep him and his family and your your thoughts. Um and just reach out and just wish him best of luck u when you get a chance. So from the community. Um, Nathan, I know that uh the last question I have for you before we disconnect, when are hotels available for DME, when's the block open up? Sorry, one second. When's a hotel block open up? Are they available now? It is available right now. Uh, it closes the end of next week. Oh. So, you got to I got to buy my Zoom. Yes. Yeah. Get to your hotel because you staying off site is fine, I guess, but man, it makes it a whole lot easier just to stay right there.

And for those who are new to the whole conference idea, no creator, no buyer, the reason you want to stay on grounds, you don't know what's going to happen in the morning first thing or later afternoon. If you're a person who likes to get up early, there's a bunch of people who are meeting up there. And if you're going to stay up late, some people do, you're going to want to collect together, right? People take Uber's places and whatnot. I would highly encourage not to knock all the speakers. I'll be there. I I haven't figured out what we're doing yet for me, but get there night before. break some ice with some people with just don't throw the axe at them, but come join the axe throwing.

It is such a creative way to break some ice with people you may know or not know and collective time to get together and talk. That's awesome. Yeah, and that's included with your ticket. That's not extra. Uh we will be sending out after you've bought your ticket, we'll send out a registration form so that you can get uh registered either as a participant or just as an observer. Yes. Yes. Um, I do know we're going to be having some upcoming shows. Um, and I think we're we're planning on some awesome stuff. So, those who are curious about what's happening. Um, I did send a link. You can actually subscribe to the calendar so you can see when we post new uh, you know, new show episodes and it'll be on your calendar.

If you don't know how to do that, you can go to our website or shoot me an email. Our next show will be on uh April 4th with uh Justin Robert where we'll be talking about hypothecations. Um something me and Nathan do not get involved with, right? But but Justin's way of doing it is a much better way than reaching out to note buyers who do that uh kind of work. Um and then in uh April 18th uh which is our anniversary uh we will be having Mary Hart on talking about uh different investment trusts. What do they mean? What is all these different wordsful trust, land trust, this trust, what does it all mean? How to use them? What do they benefit for? And uh that's going to be really interesting because I want to learn that stuff too.

I've heard all this stuff and I don't know what it all means. It' be really interesting to have that. And we will be rescheduling Nathan's uh Nate Har's uh talk because I think anyone who has a company who doesn't have employees should seriously look at doing a solo 401k. get up to 70 grand in IRA, Roth, uh 401k set aside you can invest..