Note Camp 4.0 2017 Panel Speech | Real Estate Notes Show

background on the real estate investing industry as a whole but currently my full-time job is I run a major mortgage company for a state agency here in the state of Oregon so I I'm in charge of origination I also am in charge of a servicing portal portfolio of about three hundred and one million dollars worth of loans that are just under two hundred or two hundred two thousand loans and so you know for all intents and purposes I think I'm kind of uniquely positioned for this and it's just a matter of me going through the transition of you know finding a way to escape the day job into something to do this note trading full-time and so for the last of the last year how many not to be close so far Cody whether you fund 1516 somewhere in there so I just funded one this just just this last Wednesday so so awesome good job that's great cuz you're working full-time so that's a you got your numbers you're rockin throat we'll go from there so let's go above them who I'm seeing next is mr.

Adam Adams mr. fu-manchu's there Adam once you share a little about you those that may not have heard you know who you guys are that makes you official now that you've got it but we come from apartments still have another 40 units hopefully we sell those next spring but um you know kind of moved in a note I think it's a lot I can play more in note world Apartments are pretty tight but uh I'm gonna have fun notes that we can not buy notes for I don't know you're an app now throwing some that I'm JB on just closed on a trade today was that - yeah a couple of my partners on mr. Lambert mr. book pages well if you want to follow and see week in what kind of hits we get off this so anyway hey guys welcome back to camp for now we are at over halfway through day two but we're excited for this session we've got five characters joining us for the next hour 15 minutes and they're here on their Friday it is Friday yes Friday it's 5 o'clock Papa Tom sometime wherever they're at but we brought these guys on to help share kind of their knowledge we've got guys have done it for several years guys have done it for a year and I wanted to have a good broad experience level for all of you that are watching out there whether you're watching it on the Facebook lives or you're watching it live here at note King 4.00 the replays to be able to kind of see people's see these guys different experience levels kind of what they went through so these guys are still working full time somewhere now full time investors and everybody's got a little bit different story that's what I love you guys all have a little bit different business model so what I thought I'd first started off with is turn it over to let's go by the guy with the least amount of hair and have you introduce yourself and work our way to well you got hair on your chinny-chin-chin and your jobs there Adam so we'll start off with our the senior statesman of the group here mr.

Cody Cox they feel sure right you kind of where you're at your background and kind of your note history well I've been a party to mastermind here for about a year now and so I've really for the most part been trading notes earnestly for about a year but I do have a full-time job and so obviously the effects of a full-time job impact how much I can do on a given night so I've been in the mortgage industry for 35 years and so that in a lot of ways kind of gives me a unique perspective on what the mortgage industry is all about and of course with trading notes I also ran a REO here in Portland Oregon here for about four or five years and so I you know that gives me a pretty good chance I haven't checked the rolls lately and then that was struck from a bank portfolio San Antonio Craig 31 note San Antonio they're all from San Antonio Bank they're not performing with about 13 performing notes but they all have balloons on some kind of resolution pretty soon that's good actually I like these balloons they're kind of like where that carrot you know yeah perform and we get rid of the blue I've already got a couple of funds that want to buy the note cool awesome and your big thing is you've got a sugar mama but you were really great at systems there's nothing wrong with that I think most of us guys wish we had a sugar mama at some point but that's fine that's right and we'll lead into him next as we got Stacey wall top out of the Maryland Mark Adam is out of the dallas-fort Worth area Cody Cox is on the Portland Oregon area you're out of Hagerstown Maryland is that correct Frederick Maryland Bedrich Mary that's right sorry Yeah right next door right next door exactly so you've been four right about a year now too but left the full retired and go kind of headfirst into real estate let's talk a little about that right yeah I did a semi retirement I guess last year about a month ago so it's been about almost a full year we started the notes got into it when we saw you at the RIA in Hagerstown and we've been on a roll so we've gone through and and purchased we're at 39 notes now nine of which we're partners in their value financing but it's been a good ride so we're really enjoying this right and wife is still working care still working full time we can't tell you know she's you know she's the sugar mama so we got to let her go nothing wrong with that as well in your background you come from the retail side you used to have to go in and deal with distressed kind of Bed Bath and Beyond right we also did some other fix and flips on around awesome good stuff they will drop down to our New Jersey boy mr.

Dave Platts Dave you've got you've been in a no investment for quite a few years stuff what you're still working full time as well though absolutely yeah health benefits are expensive in the country so we still work to keep the health benefits and make things happen yeah how many deals have you getting in so far cuz you've been in this for what five six years how long because I started personally buying I think juggling 12 2013 started out slowly and jumped in quicker in last year probably around twenty four twenty five deals in last year um and we're bidding on another 15 right now Ashley so we're going towards some you know in New Jersey's it's just different it is nice to be local but so some of the deals we get people don't look at but I started out basically valuating tapes getting in dirty and finding out values learn by doing one of my own mistakes and make things happen group what I could start my own little meet up and try helping other ones do the same thing we're doing now grow some JV partners do 401 k's do some self-directed stuff all kinds of different things but my background I did landlording and I couldn't stand it got threatened I also did some fixing flips and just not for me so when I got into the paper business it was a lot easier for me and I like helping people so good stuff and you're working what where are you working at right now cuz you still have a job what said what line work is at it I'm in estate I've actually worked for these are government's team jersey so if I told you have to kill you kind of thing right but yeah I work for the government still which is really comfortable for me I can take a lot of time off Ani Thank You tax payers but I also I can get the phone a lot so people who are working right now who need to get in these things you can do it I mean that's one of the biggest things I push people to do is you can do this while you're working full time at nights during a day making phone calls like Adam said before creating a system is your biggest adventure here just get the system going and you can really automate a lot of things values you can't automate and contacting agents you can't automate but lots of you can automate awesome good stuff that takes us to the last guy wearing a blue shirt glasses looking quite epidemic Wayne is our buddy Wayne Snell out of the well you're Dallas Colorado now I mean has it remarried yet but anyway Wayne Wayne with the help of Natalie's business party flows down with over 300 notes now that correct right we actually we just sold off a bit but we're still over 300 I think we're at 312 I just bought today five new assets so now we're near as much as Adam closed down but still we're moving forward right but let's talk a little about your background because you we're working 80 plus seventy plus hours a week a lot of international travel too and like I think what Dave just said you kind of had a goal to tell your boss to take this job and shove it right or to Wow yeah so I I have a 29 year here at career in her head I should say a 29 year career in the software industry most recently the last few jobs I ran marketing for global software companies I was traveling around the world I had a team of people London and Australia and other places around the country and working 80 80 to 100 hour weeks but yet still doing the note business as Dave said I really was gonna emphasize that you can do it if you have the if you put your heart to it yeah that's a lot of work don't get me wrong but you know I found time to do it when other people were partying and going out to pubs in London I was I was working on assets with a with a pint in hand from the hotel room so what I want to start off with you guys is probably let's start with so we have five-year this could go on forever but what's one big tip you want to share with those that are sitting there ready to pull the trigger looking at assets for the first time what's probably the biggest tip you could give them and let's let's start first let's go back to the beginning start with Cody on man what's one tip of ice you give somebody is looking at doing their first deal Cody well I think you just to sit down and do it I mean the main thing is is just sit down and discipline yourself to go through that tape and know what your model is eliminate the ones that are not part of your model and and the biggest thing I found when I get myself in trouble on a deal it's because I have went outside my model so with all of us thinking like we're really business people this is not a hobby we have to do this as a business and just make sure that you've defined your model and stay within those parameters because again every time I've kind of tried to very outside of that is when I found myself on down the road tripping up and having some problems so that's the main thing I would say make sure you sit down and establish what you're after after cool Stacey let's jump up to you next I answer that question little bit of ice can you give somebody's branding Tom I would agree you as Cody you got to jump in and just do it and then you got to be a not be afraid of working outside of your comfort zone you've got to do the things whether you like it or not to get the job done and it doesn't take a ton of work to do it you just have to do it and you know have your schedules every day you have your program every day and you go through it step by step it's a step by step process and it works all right Adam I'm sure you're gonna dive in there you add a little bit difference to that though huh I like it I learned a lot from it as you do on the experience for me you know actually doing it the educational level just kicks in high gear and you learn so much more and once you do it once you break that little cherry the others are easy yeah hashtag note virgin is over say now Dave three quick bullet points networking Marroquin other note investors talk to people get some kind of ROI calculator some sorts and just get comfortable talking to attorneys I mean ROI calculate never clean other people and just just go ahead and do just do it but just do your ROI calculator together and make sure your count for all expenses go quaint well actually I was gonna that's a great point Dave what I would say is of course to get started but one of the things I think everybody especially when they're brand new that they get really enamored with a deal and they try and make it work a million ways to Sunday they always get in love with the deal so much so that they get blinders on the deal and sometimes the best deal you buy is the one you didn't buy and and I will warn you because I will tell you my first note ever I did make money on but I don't know how because I thoroughly did everything that was wrong to it and it was because I fell in love with the deal not with the numbers if you will it was more oh how would a pretty house oh I felt bad for the borrowers okay we now foreclose so I have to rehab let's make it look really nice when this wasn't necessary and yet we made money but my point is don't necessarily get so caught up I saw somebody posted on Basecamp that they were desperate for a deal don't be desperate for dealing because you will make mistakes and that's where you lose money second piece if I may is just really focus on your due diligence and all these guys talk a little bit about it but you know check your values work with Realtors run a BPO and not necessarily when you're bidding on assets but you need to at least have Realtors go look at them and then when you get an offer accepted make sure that the numbers work sometimes as I go back to what I said before you get so an arrow with the deal you like the values aren't exactly what I want but that's okay and it isn't so you need to be careful there right Wayne I'm gonna start this with you and then filter back through it for you how is your business different today than it was four years ago when you started off first of all it was a hobby and I will say it was a hobby I didn't treat it as a true business until probably three years ago with an eye towards getting out of the job so and that does okay for where I was back then but for those of you who want to make it a full-time business you really do need to put systems in place I know I don't talk about that you need to look at things like where you gonna get capital and and I started out with my own capital against all advice and and I will say that if I could start over I would I would have definitely raised more capital in the beginning my business is evolving tremendously we're we're obviously continuing to buy non-performing notes but we're also smattering in performing notes now to increase our yields we're also looking we're three four years ago I wasn't really considering creating my own paper as an exit strategy over the last 18 months we really have focused in as that is my number one exit strategy so that we can continue to have annuities going forward and either sell notes later or live on the cash flow so good Adam you want to chime in because you've gone through some changes or the last year definitely now Adam is affectionately known as the death squad unless the bar he's by there's a death in the family huh female murder at that - how's your business change Adam I think I only bought two singles this whole year I keep buying more oh I'm liking pools and now I'm looking at out it yeah when I learned in apartments and create those little cookie cutter syndication so that I can will create these bonds within a few we know when I find the deal I can go get the fund raised and do it that way you know get away from the JV model I don't mind a JD model this is more risk involved the KP then pay now you might get home run that's great but yeah they don't they're not all home runs bagging somehow indicate that everybody just everybody mitigate that you know maybe it's on a loss paper for the investor that's where I'm going now after this year that's cool it's Daisy no I think our biggest piece is just trying to make sure we keep tweaking it you know you go into some areas and they work out great you own some areas you try it not so good you can't you know fall in love with their area because it might be next to the beach you got to move on to where the numbers make sense and I've been you know tweaking there our ROI calculator pretty much weekly trying to get everything into it and now I popped the number in I get a good number and it's you know it's not 100 percent of a return it's gonna be you know 10 12 13 percent and it makes more sense so I think really diving into that and making sure you understand and know your numbers right Cody for me it's just getting more comfortable with the whole process I mean when I started off you know I actually had bought a couple notes before I you know became part of the mastermind but I really didn't know what I was doing but just within the last year just defining what I'm doing being disciplined to come home and do the due diligence that I need to kind of refining how I do that so it becomes more in hit you just just more innate for me so I kind of have a better understanding what I'm doing I have a higher degree of awareness about what all the parts are not only what I am doing today but what it's gonna be like a week from now a month now from now on that particular note so there's a lot of learning along the way and I agree you know all for these other guys well you feel included have all been great resources for it for me and so just pull from the resources that are around you because there's a plenty of people that you know are of the note family that are willing to help and so just just utilizing those resources and just learning along the way gave anyone else when we first got started things were 30 to 35 3 cents a dollar it's not like that right now systems are a big thing creating ROI calculator ingesting it billing teams in different areas if you find area you do like I'm like Wayne says you like an area you can get good rental numbers now you're re owing it focusing building teams I've more and more putting on systems and building teams and find deals may not be weird or different or whatever if people don't like other ways of finding sources for just maneuvering ways but from 35 cents to now we're pricing is now is just different you know right I totally agree to that and could you move a little closer your microphone you're a little faint so he's a saint in would you guys question for Jonathan here in webinars and chat rooms are a lot of people who request ROI calculators besides figured out rough I our eyes at each stage of a note when do you need a more detailed calculator and is it something that each note investor develops by themselves I think it's a you start with something that's rough generic and then you develop it as you go because each state's gonna be different for closing time frames taxes what do you guys suggest to that will start with Wayne yeah I would actually say you know I get a lot of questions can you send me your ROI calculator and and Wow to some degree I feel it's kind of my special sauce if you will so I don't like sharing it it's beyond that it's just if you don't build your own you really don't understand the numbers and and and I will tell you I think it was a Cody you said it he's tweaking his ROI calculated week I was Stacy I still cook tweaked mine all the time and you'll be amazed at some of the things when you learn a new nuance to this you're like oh wow okay that's gonna help me for next time we I'm happy to share the idea of how to create your upper you got to create your own and it's really if you're scared of Excel there's a lot of really simple tools out there Linda I forgot what just got acquired by somebody they have always very inexpensive resources to learn Excel so if you're scared of it you really don't have an excuse heck you can even write it down on paper and use a calculator although that's not efficient it might be a good way to start out the website is referring to is Linda ly nba.com which is a lot of free in cheap courses a buck 9 bucks 10 bucks 99 bucks all sorts of different discounts on that so Linda ly in the komm correct Adam back to you then stacy yourself but his regard to our I would agree Wayne kind of to create your owner yeah no I think yeah you absolutely have to do it on your own cuz everybody deals with this a little bit different everybody goes down a different path and then you want you know things are important to certain people and they're not to others so you've got to put in those numbers that you come across and yeah all of a sudden you find out hey this is gonna cost me another hundred dollars isn't gonna do it on every note so you could add those numbers in there so you don't get burned at the end all right Cody here you you always have this big generalized number that you want but you do have to drill down and change things and get closer and and then one of the things I do is I always calculate on a worst-case scenario so you know if it's a worst-case there's always going to be a foreclosure if you get the number and we Couture you want on that then everything else is kind of like gravy so that's the way I approach you but I think it is it's something and you know there's a few things that are proprietary for each one of us individually and I think are alike later because of the little tweaks that we've done ourselves from our own experience and I agree with what Wayne said to begin with you learn more about you're all putting your own thing together than you do just taking something from somebody else you don't quite appreciate it the same right we're gonna ask a different question of Adam here maybe he'll pay attention this time which is alright he's counting numbers this head and I think Jen standing right there too right tell her I said hello but you've done a really good job about trying to be as lazy as possible and we all say that in a respectful term of the matter of different websites of systems things like that you want to talk a little about kind of the development of that for you Adam my five-year goal was did not work so I've been really working hard at doing that that's my key i minimizing my work output into marketing and out of published here blog there and i'm pretty much done we I do one email and what really I'm starting to videos but they're not that hard in 10 20 minutes make a long video and yeah it's good for him up I remember remember me and Stacey were over in California talking another guy out there and he was trying to calculate how much money we make an hour and he said some about what he said a hundred and sixty hours a month times poem or some language you get on 60 no it's a bad system and maybe some habits I do have some good app it's about you know writing down the things I need to do on a computer and then I let the computer tell me what I mean do you think about to happen but that the systems them take care of yet of my thing and the more the better I'm at it right some of you guys quick quick kicking your desks cuz it sounds like a drum in the background when you are talking on who it is but anyway I want mr.

Lai okay well I want jump in I think it's your great question here because this is one thing is we all talk about a car like a bar being important and we ultimatte bill your own you don't want to see any one of ours did you not understand at all yeah sometimes I get lost my own my great where to go and adding things on if it you're not a county publications in different carriers are different in different states but I would definitely give the little tidbits here's there's a Fannie Mae site about what costs for foreclosures and different states you can grab their fees call your servicer and say you have Shantay on hey what are typical fees I'm gonna incurred what installations also talk to an attorney in our local state and say hey what's your cost to not only what the legal costs are or what are the court costs what's it what is it did you have to pay the auctioneer at the end those kind of things you should put your account there you're not going to share mine but yeah I get this question also when I run my webinars I can't give my now it doesn't work it just you won't understand it and it's not fair for you to reach mine and it just not I rather you build yours help you understand some little expenses that you may not understand but servicers call your servicer call your attorneys take a look at the Fannie Mae site for 20 costs and go careful careful saying service our own lane may cause them to turn red so I want to take you to a different thing there let's talk about your favorite states or if it's not your favorite states your favorite kind of deal if you hit a bread-and-butter deal because I think we all invest in different states we all have our different strengths and weaknesses because of our team so Adam when we start with you what are your kind of your top three or four states that you like to invest in why okay you're calling you a blind squirrel cuz even a dead clock cuz even dead pockets right twice a day yeah you got pretty lip but that was all came from networking now on that that deal can we agree to that Jamie let's move on to a different besides the Texas State today I mean they all have some nuances that I like I like in Vienna because I can build back on my attorney fees if I try to get legal at the bar wants to reinstate well you guys fail my legal fee I can't do that in Ohio but Ohio if I if they get delinquent I can accelerate the note so I mean which states better it just depends on your exit Michigan I got all kinds of periods I don't like what you like I think you like Michigan Ohio also because you got a really good attorney that matches both the states though too right trust me I always get a whole lot more there for you but one thing you you have bought stuff in Flint when a lot of people like why Flint someone's only got to buy it I'm on and so I started looking at demographics if they're watching it and I saw a job moving there people stopped leaving and I saw cheap prices when I start buying stuff so we bought 19 up in Flint the last year and I mean I I can't flip them I'm not looking to flip them but they make good rentals and the people that be on there know I mean it's easy money oh yeah I mean just I don't know I know I know no one reads about it but we're just broke ran up there new pack three takes on any jobs and GM just spent two million dollars in Michigan and Nevada I think 200 million with the plant they've already fixed the water I don't know if anyone saw that story hey it's big yeah Wayne once we go to you are you where you feel okay you look at you're about to sneeze and you went like paralyzed face you're doing all right just listen okay you got me set off on the servicer coming yeah actually I'm still a really big fan we I have like 70 notes in Florida right now and one of the reason I like Florida is because the values just keep doing keep increasing yes it's a judicial state yes sometimes it takes a little bit longer than 12 months we've ever never seen anything take more than 14 months I know a lot of people run around oh my god it's a two-year foreclosure I don't I don't see that at least with our attorneys that we're working with I like Ohio still for the same reasons Adam mentioned we're we're pretty comfortable with North Carolina as well for a lot of reasons one of the reasons is we seem to get a lot of reinstatements in North Carolina I think that it's got to do with the demographics the military bases and yeah we are also we're branching out a little bit we are in 18 states so I want to make sure that we're doing the right thing I don't want to just be in 50 states would be because a California and New York but as long as I have a really good attorney and a network of Realtors I worry about property management and that's really kind of our ecosystem that if we can get those we vet those correctly then I'm okay with going to any of those states but if you're someone getting started I mean I know we have to say pick five states I say pick - I started with Ohio in Florida way back when and they've served me well they're still making us money and you know you know we've branched out as we've got more experience and I feel good about some of the states I'm in a couple states okay you know at least particularly I'm in Memphis I'm not a big fan of what's going on in Memphis right now so you can't really sell a house in Memphis you have to read it and while that's okay the clientele aren't always the best even renters so we are doing a lot of evictions and you know and I really want to sell those off as turnkey rentals but no one really wants over because it's you know you call my buddy Chris clothier over there with Memphis invest actually I'm plan to meet him in a couple weeks when he's down all right good good good stuff there Coe deal about yourself well kind of the classic five as far as Indiana Ohio Michigan a little bit Missouri I'll take a look at things that are in either of the Carolinas but those are the ones that kind of focus on again with with kind of still taking the baby steps if you will to make sure that I'm you know can contain what I'm trying to work on I just kind of keep them within those levels there you know I look for the ones that are always owner-occupied because my main model is to try and reinstate doesn't always happen but that's always what I try and go into I don't want any sort of rentals with what I'm doing and so you know having some relationships with some of the rhea across the country you know i try and get into some of the reasons they're for investors that can take those things out once i foreclose on them so that's just a little side strategy i've got going on because i don't want to hold anything long-term cool Stacey yeah I'm probably with most of the other guys I'm in Ohio North Carroll No Florida Florida's been good we're in New Port Richey Jacksonville Jacksonville has been great there's a lot of new industry coming in there and it's really kind of watching that yeah we're you know we're the area's start to build up that's where you want to be right Dave five boroughs in New York Chicago Illinois no heart attacks that I like Missouri I'll definitely still buy Tennessee Ohio is a hot spot because it's too much product there well by Jersey just we're here we have bought in the Carolinas as well of course Texas but I would say the top five and reason being is either pricing timelines or the deal just makes sense again it's nothing to do with anything else but the numbers make sense and go back to our eye cop there and also what I've hear from the people in the space when I network with my friends and what we hear is going on there we go cool have any of you had success with hardest hit fund just raise your hands and Colin we just literally got got hardest hit funds on a deal we have in Alabama Huntsville Alabama so I'll talk about it tomorrow my presentation but the the short story is guy it's a guy who is disabled his wife had passed so hadn't been paying his mortgage a couple years we met him face to face on our road trip last September and got him reinstated right away under forbearance went to a permanent loan mod was really cool he actually not only did he reinstate he gave us a really nice reinstatement fee he started paying double payments to try and catch up when he got on disability and so we explained to him that you know you might qualify for hardest hedge funds we'd love to help you to apply and he did most of the work we just kind of coached him a little bit with our servicer at the time and we get the funds when I was on the Alaska cruise so what three weeks ago 100% caught up nice you got that you're one you've got him you got any more besides just that one that's the only one I've got right I've gotten four over the last two years anybody else got in hard asset funds it's not it should not be considered a viable exit strategy for you should be gravy everybody okay definitely yeah definitely gravy there okay clover tickets you guys all do something different for marketing and and first of all is marketing important can you just eight razor-headed No okay so what's what would you say is your best marketing tool that you do and how often do you do it and we'll start those station we'll start with you our best tool is a combination of our video which we roll into our weekly bi-weekly email our email by far gets our best best response cool and how long were you doing that before you started to see results happen it was probably about three months four months somewhere around there it took a while a little longer than we expected but now it's working great we're doing a weekly or once a month we were doing a weekly on a regular basis and you were building a database at that point because you didn't really have one to begin with though right we started from zero and our database now is about 7,000 very nice very good Adam let's go down to eNOS comments on bigger pocket feedback and stuff I think my best returns are with email and how often do you do that Adam obvious low down down about one a month maybe you I used to do it regularly every two week but right now when I send an email it cost me time about half a day I can end on the phone answering emails sure I know why I talk to people give me money who's that house is that what you're trying to say I mean you don't have time B because you get to the point where you're like you're happy now you just you're gonna retire Jin get her home but you're at the bunker your systems are you're like you're comfortable where your eyes that's that we're saying oh cool Cody you're working full-time let's talk about your best marketing tactics yeah well I basically do two things I am Sunday night I sit down and write basically an email I call it an email there because it's not really a newsletter if you will it's it's basically just kind of what journey I've been on for the last week what's going on on my business and I try and approach a little different than some of the other ones I've seen not from these guys here but some of the other ones that are starting out because it seems a lot of people are just marketing they've got a deal in their marketing for a joint venture partner that's not what I'm looking for although that's the bottom line of what I'm looking for but I'm just kind of telling what the business is and what I'm doing in the business and what's out there and what's available and what happened this last week and so I get that out every Sunday night I started that about a year and a half ago because on Sunday nights I always got what I call this Mondays which basically is that Sunday night before Monday I had to go to work and so I I needed something else to kind of get my mind off this Mondays and so so I send that out Sunday night and then Wednesday morning I look to see who has not opened that resend that thing out for who hasn't opened it and each time I send those out they go on my facebook business page and my personal page and then here I don't know I guess it wasn't June or something like that I started this Friday stroll just a facebook video or just something that's been playing on my mind for the last week and just kind of talk about that at 7 8 10 minutes and just just using that as a Friday stroll and I uploaded into a Facebook and uploaded into my into my youtube channel and those are the main things and and they've been pretty highly effective when I started this you know a year and a half ago as far as the sunday it took about six to eight weeks and I got invited over to a small RIA meeting at about norm the about 20-25 people show up well they had 45 people show up because the leader that meeting had been receiving my emails and then I walked out with about 2 million dollars worth of pledges from that one 45 minute presentation that all came about for my from email so those things and you got to be consistent that's the thing I found I find is you've got to be consistent and roll them out and you know part of my goal is to position myself as a promissory note point of contact for the for the Portland area we've got some other guys are trying to enter into the space but you know so far that's kind of where I want to be is so for you know Portland's a hard market right now to fix and flip because there's just no inventory and prices are way high so trying to convince some of these guys to to take their capital and invest with me is kind of one of my target cool Dave you do something a little bit different which is great I do a lot of little things I definitely go in that way I said we've drank in a hot tub before so we're little thing so we I do a lot of little things here where I go to a lot of meetups locally and I speak a lot of real estate investors who and I relate to them hey have you been a real estate agent have you been a real estate investor fixed and flipped landlords and I can complete understand the problems um tired fix and flipping are the problems with that tell landlording have you tried to enesta Nate no clue I do run my own Meetup I kind of bring people in so not only do I walk around I love Ria's and tell them what I do I also say you can come meet me next month and that's a great opportunity for your local market even if you get four people in the room those four people are interested to know what you do I answer a lot of questions either online or locally I go to auctions I go to actual proposal auctions and just talk to people and make the joke that I'm selling to you guys so making money when you're buying for me I also speak to the agent screw them on the phone with and say hey listen we're looking at property blah blah and when I'm talking to them hey do you know I want to be interested buying this thing what do you mean and I start going into it whoa whoa what do you mean you do that and it's it done some really cool stuff but I find the best solution is the people retired fix and flipping or landlording or whatever and I can relate to them and tell me we do don't miss anything there I don't think so no I think you're good there with that for the time being right now how long you been doing your your meet up stuff you do once a month though now I think um and I do it's just bringing people together and networking because space is so small it's amazing so yeah it's a good stuff though but you do a really good job though gathering information you're just not getting people together you're literally hey what are you trying to do what's your goals I'm looking to invest so you really do a good job of mining that information and trying to find opportunities for people to get involved right yes yep absolutely cool Wayne actually everybody I really impressed with what you guys do it's really funny I'm a marketing guy by trade and I hate it I guess the thing I do the most I promote myself I guess I go to every meeting there is in town here in Dallas pretty much I'm at although I've kind of slowed down a little bit I was going every you know four or five nights a week to some real estate meeting some investor type oriented event the RAS the Ria's the fix the flip meetings and just talking about what I do and ad nauseam dying I think everybody got sick of hearing from me for a while but when you grab a bunch of business cards you talk to them and then you add them into your database and you follow up with a personalized email and then you just you know constantly keep saying the same thing here's what I do here's the kind of money we make here's how you could potentially get involved you know people start asking you if they can participate and and so from my perspective that's the biggest thing the other thing Natalie and I do although it isn't as procedural as a program is we try and do we generally take interesting trips together around a business meeting like we were in Alaska a couple weeks ago on a investor cruise a year ago we went to look at all our assets we video the whole thing we talked through it and so people can kind of see but but I think you people are interested in this story yeah they kind of start following us and I get to Scott's little gesture there I get a ton of people going oh you're the guy they threw up when you were till given that house and it's kind of funny because a year later and and I think that really does help it puts a personal side to the business as well that hey I work hard but I play hard at the same time because of the note business for me yeah you've turned your networking into social hour for you to because it's something you do once a week at least right correct yeah cool I love it you guys do something different and it works it's just it's doing something unless you get enough done and then you don't do anything like Adam says which is good you don't want to work maybe don't want to we're still showing up here we're just like he's wearing a shirt without a shirt on we're like whoa hey God you ask a good question in today's market what ROI percent on an annual basis are you targeting on the front end and are you seeing us ever returns it actually has dramatically changed over the last few years but for us we target about a 12 to 15 percent return on every deal assuming a foreclosure now wait a second 12 for 12 to 50% to you and your funny partner or none of you to me so for example every deal that we investigate or every deal that we analyze has to turn return a minimum of 12 15% regardless now if it ends up being 25% are better that's what when we might offer that to a JV partner because we can show them that we're going to get them about a 12% but we buy deals where there are 12 to 15% that we're happy buying with that we don't JV on and it's just because for us that's a nice number that's Dave I would definitely agree with Wayne they're a weird sheet for if you do a JV partner like 25% return and I build my are like out there can bid it based on a return of that number so if the deal I feel the JV partner opportunity for a learning good experience I'll build that into it just for myself I'm running seaming a wing I'm looking for a 15 plus but I'm also bidding it making sure them if it performs that's uh performing know exactly paid out well to because we administration's where I first bought and performing levels at 7% oh I should realize that and another thing we add to our calculator sound performs make sure you pay that well exactly Adam I'm looking at all the different exits and come for a week ten percent and that's uh at each baby double digit there's my minimum if I get under that and basically pass I'm looking at the foreclosure I'm looking at the Reaper formal if I don't if one of those doesn't hit that mark then I drop it but then you also look long-term to hold stuff to on the rental side as a longer to run out processor plus we get the equity I see benefits I know people don't like rentals but I'd like to get a mix mainly because you have a rental property get equity and I take it to the look at it as a farm it guy you know I I don't see a new roof is costing me my rents for three years I'm gonna go refinance that house the bank's gonna pay for the roof and I'm also gonna fix up some other stuff with some other houses you know I'll get that money you're using nuts though to feed your Reynolds portfolio yeah Stacey yeah I'm looking at like ten to fourteen on stuff that we're carrying on our own and then yeah in the twenty-four market for stuff we're gonna JVL okay Cody same thing for you buddy yeah I just I'm a little bit more conservative I'm looking into 30% on a worst-case scenario that's kind of what I talked about that 30% would split 15 15 that gives me a little flexibilities in case I missed something is I you know just gonna miss something so that's kind of where I'm at and everything I've fun and so far has been with JV partner so I want to make sure I'm taking care of those guys cool question here are you seeing sellers care that you offer on larger offers larger offerings and so just one offs here you have sellers that really don't care III will tell you you get better pricing if you offer on larger pools not that they're phenomenal either but you know at least and it depends on who the seller is quite frankly but sometimes they charge more if you buy more I think but those deals just you yeah so the funny thing is I get pretty good deals on one-offs - you know it just depends on how long they've held it and you know if you see the same ass I'm going to tape for a couple months there's a reason usually there's some some ugliness to the deal and you have to decide if the onus is palpable to you but but ultimately that's where you can start getting better deals we try to buy minimum groups of five notes per tape whenever we buy anything somewhere between five and ten per per purchase if you will like we close on five today but normally I don't buy a lot of one-offs maybe one or two a month just if it's really nice Adam I'm looking at pulls good context I think I'm two steps away from Fannie Mae now I'm not gonna do maybe a few purchases a year that's it they'll be big and but I'll get better price and I can sit around for four months and not do anything right nothing wrong with that man nothing wrong you can go to Aruba wherever you want to go to Dave but I worked with the fund that I worked for back when I first got started I found out that most the pricing wasn't based on this stepping program of you have to buy it based on a percentage of you PB or BPO it was based on what they bought it for it but they could sell it for um a lot of times you can get a really bad deal and it really a good deal based on the fact they bought it really well so you can get a great one off in a terrible pool it's just different kind of thing I think one of what Wayne does and I think we all kind of do keeping track of old assets so if you've been on something you didn't fly through and you see the next day hey I'm back on this thing I'm still interested I'm still my number but those two things is hedge funds gotta sell things for a reason and normally it's just a tail something you want to get rid of debris some capital into buy more and if they bought it cheap enough you're gonna get cheap enough so that's my my suggestion to everyone all right I want to ask a question if you guys started planning every planned out or it started setting goals for yourself for 2018 okay what's your biggest goal then for your business and then personal for 2018 and Wayne was the loudest we'll start with him and sorry for yo for me my personal goal is to travel more work less so it's good that you and Adam are next together down then you can fry some I don't mind Adam doesn't work at all I like working stay but no for me it's it's being able to enjoy the lifestyle that this is actually affording me I've actually been very minimalist over the last two years and and so the business that I'm running is paying for me and two other families essentially and the rest of its kind of gravy and I just I love that I'll continue like I want to take one trip a month next year just someplace I've never been so the bucket list stuff but from a business perspective I am evolving it where we're going to be creating a lot more new paper so I am also I am looking like Adam talked about he likes rentals I don't dislike Colonels I think there's a great tax values to rentals as well but one of the goals for me is when I create a rental it's going to be creating paper for me as well so we're trying to do a lot of owner finance transactions so that I can sell a piece of the note or maybe the first and create a second that I can keep for legacy as well cool Adam my goals for next year I think you know the big one work trying to get Jen more into the notes and less debbie to you and well actually looking at houses in the lakes right now that's where we are right now amber so we can fit on the dock and there you go it's a good goal to have Stacy I'm looking to really increase the value in which we're buying our notes up you know we've been buying this year a lot of notes that are in that you know fifty seventy five thousand dollar range and we're on one get up into the 150 range where we can do less notes and get more dollars doing the same my work at a higher price point and drive that yes he wants to work less to Adam we got a hashtag work glass you got to put that somewhere and get a t-shirt okay okay Cody how about yourself in well I think the main thing is just getting to the position that I'm a lot closer to exiting a day job I think that's one of the things on my list on our list but there's a lot of things that got to fall into place before that and so you know just taken those steps to do that you know my wife Juan and I we've got some things that we want to accomplish and we've got to get Saul in on a couple of other things and so just you know just taking those steps I don't have a defined number that I need to close I kinda have a cash flow idea what I want to get and again with a lot of these notes especially when you're buying non-performing is it's got about a 12-month sales cycle so you know you're not always realizing profits until you liquidate and sometimes that takes about 12 months and so you know I'm just kind of approaching that 12-month cycle on a lot of the deals that I did here a year ago so so that's kind of what I'm trying to move for is you know I kind of have a date mind but that doesn't mean anything it's pretty darn flexible cool Dave more networking I love networking I love talking to people you never know what you'll find out being out there being connected find different exit strategies you never know a new one that pops up just different things happen I think that the Seraph Lyons route is something I want to expand on so I guess like Cody says it's not a dollar amount it's not how much money raised or how many deals get done I'm buying the houses there in the 150 200 thousand mile range which are fun and great but same problems exist so it's more just expanding my knowledge of real estate and using my notes knowledge to allow me to do that cool biggest mistake you guys have made and what did you learn from it Adam I think all CO compliance Gainesville and I've got this house I'm stuck with it's gospel money and I can't even donate it we're on our third title search and this one came up with a link so I'm stuck with this thing for now but yeah if I had called code compliance I would not have bought this house or won't be in this problem in right now yeah go complain making that extra phone call before you close enough to do that I mean like Michigan it we can't call Co complain you have to go fill out the Freedom of Information Act and all that stuff so we take chances up there it's cool Stacey I would say the biggest thing is following up with your legal team we got burned a couple of times or almost burned and simply just by not following up on a weekly basis is that stuff falling through the cracks with the attorneys or what do you mean by that yeah we had one of our assets that actually we had purchased it and in the interim of the files being transferred over and whatnot the property had gone through into tax sale luckily we had caught it we had two days left to put in a bid to be able to Kupa recoup it back but the lawyers oh yeah we didn't see it they were notified I mean you know so yeah let's follow up cool David one of the first deal I did we didn't realize we had what an assignment of Rentschler and we spent an entire year in Ohio foreclosing and finding out the landlord was collecting rents which could have paid off the taxes and everything else we closed the note we waited five months for d transfer got back in got the tenant and they were telling me where to send check and didn't realize what assignments were rent was back 2012 that was uh quite a bit of money that I lost so that's a it's a really nice factor when you have that on a contract that you can enforce and take it away a lot of the takes away a lot of the motivation from the deadbeat borrower once they get that taken away that they don't want to have a free ATM so that's a good point Wayne probably the biggest mistake I've made is getting complacent with services as they when you when you start a service or relationship they seem to do a fantastic job and then they snow you into believing that they're going to continue doing a fantastic job and if you're not writing them every day they don't do a fantastic job and eventually fire them and and I have gone through quite a few servicers I now have a newfound appreciation for my job as servicer rider I call it I have it on my back and you know that's probably the biggest one because you know I there's a lot I'm at a lot of money in my mind when they you know they charge you for services and then they don't really do when a borrower is wanting to give a reinstatement and it takes them three or four months to get those docs over that's just irresponsible and and unfortunately at the we have enough Alone's it it's easy to overlook on our side too so so that's my bad in my mind that's the first thing the second thing is just I mentioned to getting kind of enamored with the deal itself or the nation early on issued prior to you know I'm doing it as a hobby working full-time you're kind of like I just want this to work it's just what this work like I said I thank God I made some money on it and it was only my money that I was risking but in retrospect I could have done better the final thing if I add that is my biggest mistake was not raising capital sir let's talk about that let's dive into that okay cuz that's one of the biggest things people ask about is raising a private capital now we kind of hand out a little bit about what your best marketing thing that you guys do in a regular basis Adam talked about how well Adam you do a lot of your mom oh no no it's good don't your honor Jen doesn't give herself as much credit cuz she can talk the business and you guys do a really good job Adam going out to different networking events around your kind of apartment roots right yeah I will confess that my first money was apartment bunny and actually I'm getting a lot of farming money now because all these guys are cashing my apartments when they don't want to put it back so I got a lot of I got a lot of perfectly fine notes that's been helpful and you know I mean there's all cousin my CPA they had a little hosting for all the people they detectives for that are investors and I got an investor from that it's networking it I mean we don't we don't go out to as many fences that Wayne does but you're married though he's like hey that's nothing wrong with that I only see because that was a voice of experience here years ago - there Wayne so seeing you and work my friend Stacy what about your side I wanted Stacy's when I first met you you and Kerry were very kind of introverted you're still kind of quiet a little bit hmm but you've you you know you bust out your shell kind of talk about is it more so the marketing in the videos that are helping you raise the capital more so or you're more extroverted now I don't know how much more extroverted I am but I can talk when somebody asks me a question and we can go through the details make usually hook them in at that point I think the biggest flint for us was was our you know our YouTube videos and our emails and with every email now that we send that I usually you know get a handful of calls people there looking to do something with their their phones and that's been our biggest piece so it's just killing scenario right now we just keep doing it rinse and repeat Cody you agree agree the same thing with what you're doing yeah same thing you've got to follow up with the people that are enquire with you and and I'm kind of more of a guy who likes to sit down one-on-one although I've gotten a lot more comfortable speaking in front of groups but you've got to sit down and explain to them and let them ask questions and kind of kind of tell them they this is the real deal because you know sometimes when you show an example that shows this got a thirty thirty five percent return a lot of people don't believe that but when you break down the numbers and show them exactly like you know what what the numbers are on that deal it almost sells itself so you've just got to be able to prepare you know the examples and understand make them understand what you know all right Dave I always be careful telling people that like we all say just Cody looks good on paper doesn't mean it is and vice-versa yields terrible tape paper it works out well I find my most money's come from networking locally reaching out to my note local networks talking to people who are buying properties or rentals or whatnot and sharing what I do and they don't have a clue what this is so just talking them I've gotten to 3 JV partners where I walked in a property and take a look at it and they're dealing with a rental next door and may ask me what I do and they say hey I'm just doing a drive-by for it and we're not talking I'm opening your mouth I don't do a lot of emailing I don't do that a lot of that stuff I get out live in front of people who are struggling with real estate for whatever reason and say listen there's another option and most time they have never heard of it even if you know live about it just talk the fact you understand it and tell you no emailing more information you jump on some video that's got them together and say listen learn a little bit more and go back and talk to him your your local contact for that person we thought I thought to Wayne about this it's amazing the money around you that people buying real estate that don't know anything about this cord getting burnt left and right constantly but yet network locally is my best having you have any of you guys going onto a rival or another AE special and networked at those events Mike gone in is a secret agent to network with other investors that are going through a fortune flow sirs or fix a flop or anything anything into that aspect or now every week every week yeah right now yes every month although the bust it scares but notes but then what do you do now we find out would more playing at their guard and I got them right yes came down agree yeah yeah we heard a couple people talk about rentals returning their re owes or properties in the rentals you guys what's going the biggest tools that you guys have found to finding our ml OS they'll be originated that paper wing well I started out using my local attorney recommendations for the regions but I've actually over the last couple months really evolved to one national firm who actually spoke west on right then he did speak with them and so and one of the reasons is that their license every state it makes it I kind of now know that all my contracts are gonna look exactly the same which is critical if you're trying to sell your your performing loans to institutions they want to see a certain set of criteria they want to see a certain credit score for the borrower they want to see that the loans look a certain way and so that way I could system C to do that I'm not necessarily selling all them but if I ever need the opportunity to do that I don't want to take a big haircut later on because the paper is what institution thinks it is make sense who else Dave you're using owner finance stuff yeah I still use my local attorney so that the areas we're buying at it just been my Avenue I haven't really needed to go nationally so that's probably my reasoning I've only done two states so I really don't deal with the national wide but as we grow if I go that route then I'll definitely look and I'll be giving way in a call and say hey get me out again networking in the space is big question for you have you guys bought are you guys a bit by an institutional paper about any owner finance paper I have bought some performing loans not a lot but a couple we're looking for you know minimum 12 to 15% yields when we do that and that's really more for my personal portfolio that's a part of the business but we're evolving a little bit because I do okay do like the cash flow so so we may end up buying some in the business as well okay what about contract for deeds and you guys buying contract for deed Dave is that yes I haven't yet I've been tempted by the the guys in this webinar to jump in that we've talked about this extensively and I've been extremely interested the problem I find is the value I don't like buying anything under 30,000 value period and a lot of CFDs are under that I'd rather from the buy CFD buy at about 50 there's not a lot of those kind of price points I know if I'm sure we'll talk about the success and see if these are really really good and they're just easier than seconds but their price point of seconds so that's my two cents of CFDs when you want to respond back to that well yeah I was actually gonna say I haven't bought a single safety this year bunch of them last year ton of them actually and and one of the reasons I'm not buying them right now is just because of the uncertainty of the CFPB's crawling in the short so each of the major see if players I want to see how that pans out I mean we own a bunch and and as they've said when they actually read perform your sorry a lot of them will Reaper form it's a significant percentage we have a 80% of their of the CFDs we bought last year that Reaper form and quite frankly it's because the payments are pretty low and the people don't have a lot of options you go if you can't pay 350 bucks for your house how you gonna rent it and 800 bucks a month for your family it's a pretty simple decision you either want to live in your house or I don't know where you're going to go but when they don't Reaper form their disastrous and generally that's because these people trash these houses out there not exactly high value properties to begin with and we found if we want to do the rehab it's a $20,000 yeah Adam bless them yeah but a lot but uh front bye I always I get cools and they'll do the drive-bys and they'll say yes or no that's all I'm looking for you know they'll tell me how much I should pay anything at all so when I say no I walk away I don't even clients at it so we've got some pretty good ones actually I think most of my rehabs have been 10 grand and under or the pop up in Michigan but it's cheaper rehab in Michigan if down in Indiana being an extra 10 grand so I might be up to 20 grand in it but yeah I've made a lot of money oh yeah Stacy you guys but you've already I bought my first one about three weeks ago and working on a modification now there you go good I guess sorry no no I've taken them I've taken a look at him but I him bunny yet because it'll be real careful with my bathroom money we're late Adam was that you need to know the rule yes illegal just don't go by blindly go find out the rules first huge huge definitely so I heard that teams are important Marquis important your servicer is important and doubly important for because he doesn't have an aneurysm all right you can do this business whether you're full-time has it or a full-time employee or just a lazy person you could do this business though too right I say we all say that respectfully there's no there's no we love it right I'm very proud of a lot of you guys so what's one thing that if you would tell somebody right now who's brand-new to this what's one thing you want to tell them and we'll leave it at that what's your thought your head waiter Network named Dave says the coordinators okay networking talk to people pick up the phone you guys are all pretty relatively open about answering phone calls and talking with people for a few minutes not an hour to waste your time but you know call pick your brain for 10 to 15 minutes is that right yep go Wayne what's one thing you only people with before you're gonna wrap it up they of the pan here I think you need to set your goals for where you're trying to get and I think that's real important when I when I first started I I really didn't have the goals in mind it was more of a hobby I had I had an event that caused me to kind of dabble in notes but it really took me realizing I hate my job and what am I going to do out of the job so some of the other guys points and when you do that that kind of helps you set a set of goals that you can march to and then sit and you know constantly evaluate them as well you know why am I not making the goals if if I'm not or if you are making the goals maybe you as I've learned maybe you didn't set the goal heart high enough from the beginning so so that's just something to keep them on awesome Adam um I was a be going to dabble I would play with performing notes first get one or two laughs if you're gonna non-performing I would get in and dedicate your knowledge did not perform it there's so much to learn about it every state is different every exit strategy is different so many things don't just fun just say I want to do it and go by note and not do your research and dedicate yourself you're saying I'd be a shiny object chaser I'm gonna do some rental I'm gonna do some fix and flips and do some wholesaling I'm gonna do some notes I'm gonna do some of this into that you say not to do that what I've seen a lot of people like get started I wanna do now performing notes and then three months later I'm gonna do partials later oh hey man I got rid on hey I got are you figure out what you want to do and focused on it and learn it yeah learn it all learn it all I always say get you know first gets the education and then buy your first note cuz you can learn more from that than anything else and if you need to you know hook up with and get a JV partner that is willing to give you a little information as you go sure Cody I would say build your teams you can't do this job by yourself and it's one of the hardest things I've had to do is be able to let go and delegate but you've got to build your teams and know that your family's important that the family is gonna have to support you and and they do and then just talk to folks I mean like I said the other days are on this panel I've called them multiple times and use them as resources so there are resources out there and don't ever expect that you can do this by yourself alone also just making sure that blonde you people get this a lot when I talk to him if you get taping in your email make sure you know that the artist seller I get so many times we all get it hey I'm direct hey I don't care if you're direct you re the principle you're not I don't unless I know they're true broker and they've dealt with something I don't look at those tapes I talk to the people there isn't a lot of million sources out there just be careful with tapes you got and don't pass them out because we've seen tapes three times three years later without them Oh Wayne stuff today that was really that I saw yeah never I've never been asked for funds everyone buying a deal yeah they're the only time I've had that was when I was finding on major trade from a major bank they wanted to see that stuff before when her contract and that's the only time I'd to put up earnest money as well but I agree with you most of time you're buying one-off or small trades or stuff like that they don't care they just want to know the money's coming from some but they're not gonna ask for proof of funds in the front yeah I do the proof funds that also say who's a servicer on this stuff I can ask questions that they should know who is a servicer where's your Claro file that's something that due diligence doesn't in me did need but new people could ask that question most time did all the answer it's something they don't know they own or whatever so be careful that exactly question for you guys if you guys all filled out the the survey for now camp yes yes yes is a survey so Dave's gonna not get anybody's contact information go ahead fill it out trust me cuz you want people to be able to reach out to you hopefully there you go my friend thank you very much this has been awesome no problem guys thank you appreciate all that you taking time on your busy Friday night I know it's cutting into Duane's day tonight but that's okay he's got a steady girl now which is good thank you so much for always being sharing things for being here and make sure you I got your write address in the survey so we can send you something we've got plan for you so everybody's listening out here you're watching the replays all these guys got big hearts all of them do a really great job they all have their niche that they've tied in to they have all their business models here unless the others have crossover but I think that the most underlying thing that they'll tell you is be serious about it go frickin do it and and network like crazy and raising capital is a lot easier than you think it is so you're welcome thank you guys I think will we see you guys all up at the node Expo in a couple weeks yeah all right Cody you're not flying out do it again gonna go to Denver next week for the Mortgage Bankers well you better get some servicing contacts there come on man come on man all right guys we are gonna take a a Twix 12-minute break don't go anywhere we're coming back ri Racine are our keynote speaker tonight Scott Duffy jumping in fourth you're gonna love what's guys to share he's gonna talk about going from Richard Branson or even from Tony Robbins to Richard Branson how to think big overcome obstacles build the life your business and Adam might want to stay awake for this one all right brother we'll see you guys and we'll see everybody back in about ten minutes everybody all right.