Buying Notes from a Hedge Fund | Real Estate Notes Show

Episode: Note Investing Chaz Guinn Buying Notes from a Hedge Fund Dave's Goals and Plans: - Making chocolates at the end of November to give as gifts - Planning to share vendor/contact information that was previously kept private - Observing that property values are topping out in certain market areas - Developed a bridge in early 2009-2010 allowing investors with $50K-$300K to access distressed mortgage debt Nathan's Goals and Plans: - Attending conferences has re-energized mood and energy levels after extended absence - Observing dramatic product changes at the top of market with potential disruption in Q1-Q2 next year - Reporting that inventory conversations with investment community contacts show different patterns than in past cycles - Finding that in-person networking and relationship-building is significantly more effective than phone/Zoom calls Key Recommendations: - Protect real estate investments by holding them in an LLC, not personally - Act and treat yourself as a business, not an individual investor - Do footwork prior to speaking with institutional sellers - research properties on Zillow, Realtor.com, and Google Earth - Build relationships with vendors and institutional sources rather than cold emailing funds - Don't broker assets or misrepresent yourself when approaching institutional buyers Topics Discussed: - Market conditions and signs of value topping out in certain regions - Importance of in-person conferences and relationship-building in note investing - How to access institutional-level mortgage debt as a small retail investor - Proper business structure and legal protection when buying distressed notes - Vendor relationships and sourcing deals from hedge funds and asset managers - Historical context of 2008-2013 foreclosure crisis and bulk mortgage pools Guest Insights: - Chaz started in asset management buying bulk delinquent mortgage pools in 2007, inspired by seeing epidemic of unaffordable mortgages given in late 1990s-early 2000s - Built business by outworking others and consistently applying principles learned in sports - Expanded from US operations to Canada, then built distributed team across 6 states without being under same roof - Company buys debt and houses/assets across the country, managing them through virtual infrastructure - Identified market gap: institutional sellers were doing bulk sales while small investors ($50K-$300K) had no way to access similar deals, so created bridge to connect them everybody dave putz here from jkp holdings alongside me as always mr nathan turner hello hello hopefully uh everyone's having a good week um a good whatever right long as everyone's doing good stuff right now i think we wanted to connect we haven't talked to each other recently with all the conferences going on and just school starting uh nathan how you been bud i know we haven't seen each other on this live call recently how you been what's been going on we haven't seen each other for a little while now but yeah no it's good everything's good we're um we're you you get this too but we're into beautiful fall weather these are changing color we've got a big red oak in our front yard and it's turning red and beautiful and yeah it's it's gorgeous and so we're loving uh loving the weather loving the work work is always going and and things are moving and progressing and we're supposed to get 80 degrees here in jersey today and i'm not sure what like go outside not go outside summer night and it's supposed to be 60 on sunday yeah so good football on sunday yeah so you one of these conferences you got some good contacts i'm sure everyone saw the videos that you put out there um you know those did those re-energize you for this fall like just getting out there and shaking hands again yeah you know it's really interesting um being away from conferences for so long i i came to a realization that i think i don't i don't think i was ever like depressed but but i could tell my mood was just lower and i wasn't as energized as usual and so getting out to a conference like that that was a big boost and so it's exciting and it's fun and it's good to go and talk to people and see people and interact in person it makes a difference yeah shaking hands with somebody having dinner or just talking with them just is so much different than picking up a phone call or doing a zoom call yeah um and i'm sure product because we we're talking a couple people in our investment community uh last week and they're telling me the product at the top is changing dramatically right now and in the first quarter second quarter of next year it's could be a possibility of a blow up right not at the point where we had back in early 2010s but just to change was dramatic it was crazy um and they're seeing the top end be just as crazy showing signs of cracking is what i'm starting to see uh where some of the values have have kind of edged out they don't seem to be going higher in certain areas there are other areas where it's still going up but in some areas that's what i'm finding is that values seem to be topping out and and it only goes one way from there uh for the short term and then yeah long term of course it'll go back up so it's instantly say that because inventory is something a lot of people ask about they want to know more about it they won't know where it's at um they don't feel that what we're saying is possibly true they didn't see anything but what you don't realize is the conversations we have outside of this private kind of group we talk about right it's it's different so you get in contact with people that you know who bought product in the last three four months we're buying a much higher scale you get the knowledge of what's happening and it's different from last time and you know we we talked about i'll talk to somebody new to notes i say i will tell you anything and everything you want to know except where i buy yeah who who my vendors are um and we're about to let the cat out of the bag on them let me just press it before we introduce my man here sometime we had this conversation with the new investor recently they said dave to share your contacts some of that is private to us and the second part is if you cold email these big funds you may not get the same responsibility it's a relationship base yeah right so yeah let's let one of the cats out of the bag all right there it is mr chaz what's up buddy we're we're sporting some some revolve equipment today for you and i told you i told you both off camera but i'll say this on camera you're definitely getting a swag bag here for the holidays it's in route for sure awesome it's awesome and chocolates we're making chocolates the end of november so we're coming here bring those on those with a nice bottle of wine uh over nice fire is a good good day my friend we're talking pre-camera about all the stuff that's going on you and you know nathan and i've known you i think my entire no career i've known you um it's one of those kind of relationships that's been heaven flow for years the respect is mutual it's awesome but a lot of people don't know who you are and i think they should i mean you've done so many great things in node space and been so real and been still honest and wear two hats you were the hat of understanding our level and then you wear the institutional hat can you share a little bit about how you got started in notes for those who don't know yet it's it's so ironic that we're seeing a a plant behind nathan's shoulder because i felt like fresh out of college i was watering plants and picking guys up from the airport at an asset management company that what i felt in 07 was one of the first to market regarding buying big bulk pools of delinquent mortgages and so i was so new to it i felt like in college i i got a little bit of a background in finance especially with like a focus in real estate so always had a passion for it so i said look i just want to i just want to be around it um it so happened to be that you know you may see some football helmets behind me but um you know i tried to do it after college and i know that the joke is not for long you know it was definitely that for me and i had an agent um at the time who was trying to get me onto teams that says look there's a there's an ep there's like a an epidemic starting to happen mortgage loans have been given to people who could not afford them and they've been given to them for almost a decade call it the late 90s through the early 2000s and it's created like a seven trillion dollar market with a capital t um you know and you guys can can do them you guys can see the evidence now where fannie and freddie are doing like a trillion dollars of new issued mortgages a year because ever since this pandemic happened you guys the house uh i'm coming to you from my house this house your house became your your everything we had to be we had to stay at home we had to get resourceful uh so as a young man at a college i really started to learn first and foremost so wait a second you can buy the mortgage debt from the bank and then you can buy them in onesie twosie level and you can now collect on that debt if they so choose to start paying again or if they say stop calling you can actually foreclose and take the house back what yeah that's how i started in the business and i would say that after a few years of just consistently applying things that i did learn in sports which was to outwork the person in the room right be the hardest working guy and so i just put the time in so that by like my my later 20s my early 20s i was managing how to buy and sell this mortgage debt to investors all across the country and then what so happened is i met a guy that was doing it not in the states and he was doing it in canada right and there he is and so before you know it um you start building relationships because what we did as a buyer or an investor is we knew that we had to raise a lot of capital we had to get uh infrastructure wise we had to get uh compliance we had to do right by homeowners that didn't want to pay and stay and we also had to set up infrastructure for houses that were vacant that were actually causing neighborhoods across all of our country flint michigan cleveland dayton ohio to name a few were blight between 08 and 13.

i mean you couldn't even want to drive a car down these places because it looked like the walking dead the people hadn't been there for for months if not years boarded up so where i'm going with all of this is we knew and what we saw was hold on a second these houses are being sold like costco in big tranches okay and and there was no real market for an investor who had 100 grand 50 grand 300 grand to go by their local auction their local fix and flip why could they go do that but they can now not get their hands on this space yeah so i will say that in early 2009 and 10 we did develop a bridge a pretty strong bridge now this many years later that allows you as a new incoming investor to say look that's a hundred thousand dollar house you mean i can buy that for 350 what in today's market right where things are going over list right when there's less than two months of inventory across the market across every msa in our country um so so all that being said is is that there's there's there's you know from using that plant as as my as my analogy is there's growth in this business that truthfully you guys um our company today we can get into that has definitely grown really through 2020 and 2021 from the comfort of my house right i have i have team members in new jersey oregon california and irvine tampa florida and now i'm in dallas texas i mean literally we're touching almost every corner of this country yet none of us are under the same roof yeah so we're all learning how to do this virtually and we buy we buy debt and we buy banks so we're sorry we buy houses and assets all across our country and uh we we manage them in this function and we can get into you know the infrastructure there regarding vendors and stuff like that so anybody know what kind of tree that is what kind of that one and that one that's a money tree that guys that one's a dragon tree a dragon tree oh meaningful you see we had to we had to use we had to use the nature and that's in the part of the part of this field of steel here so so so let's look at this individual what's called bob schmo right uh bobby pest welcome bob repass right he get in the space he's saying hi and he has 50 grand 60 grand of his name and he wants to get involved how can he approach someone with the asset level you guys get involved with and be successful to reach out and and we don't want people coming into space and lying we don't want people taking the assets and brokering it what should that person do and not do to make sure that they're successful if you're going to want to step into this space which is to buy residential real estate for steep discounted prices uh you're not going to be acting as an individual you're not going into an open house on a saturday or sunday walking through and through it with your wife or your husband and uh you're starting to you know act like hey look we like this house here's our offer we open escrow just gonna tell you what we've tried our best at doing is kind of mirroring that process and buying notes for example you're going to see a spreadsheet i'm so i'm sure many of you call it we call them a tape you see these spreadsheets come across your inbox they're filled up of addresses these addresses are located in all different different states and in cities across our country so cool you can quickly copy and paste those addresses now into zillow into realtor.com google earth get yourself a sense of what you're looking at especially if the house isn't in your backyard okay so truthfully since you're going to potentially now step into the states of being the bank you should have this protected by an llc you should have this protected by a vehicle that is not dave putz nathan turner right the homeowner should not be calling you in the middle of the night letting you know hey i'm going to make my payment in the morning right you should be acting and treating yourself as a business so do that so with an llc yeah right especially as well you want to hold that real estate not personally right so when it comes to how do you get in is have a little bit of footwork done prior to speaking with sellers have your llc set up know where you want to service the the mortgage what does service mean it's a property manager for mortgage debt and their 50 state license compliant nmls license they carry all of the essential risk and communication between the homeowner and you as the lender you should have a third party just like if you were a lien a landlord and you had rentals throughout the country you have a property manager who collects the payment and then remits you uh the the difference right after he takes his fee for managing that house for you the servicer is exactly the same thing in our world so you should have your structure set up you should have your servicer set up and you should then really know if you're a running team or are you a passing team what does that mean are you do you want cash flow passively or do you want to get into the fix and flip business because you know how to buy houses for cheap put some you know how to you maybe have a deal at home depot or lowe's or some local shop that can get you some lumber because lumber's expensive today but you can get lumber for for cheaper than everybody else can um and you can you now can can do rehabs at a really really wholesale cost so now you're saving yourself a ton of margin when you go to flip these homes you i'll tell you there are people that eventually you become both but i'll tell you get strategic at one thing become good at throwing the ball become good at running the ball don't try and do both at the same time right so just a very high just a very high level was structure just an llc so you're protected servicer and playbook what do you want to do right so hopefully that gives you a little so now you have all that set up right and you look for inventory what should an investor who's brand new to space do define inventory successfully fund inventory right um and how should they approach what should they do with the inventory what should they not do with the inventory and basically what does an nda actually mean for some people you know look i'm going to put you on right on the spot i know we're recording here so truthfully you two are a humongous resource for everybody listening to this i'm a seller i know that i'm going to consistently put out products we do want to align ourselves let's just be real here we want to align ourselves with real capital we have we have a lot of headline risk to be concerned about right we we purchase assets from major tier one sellers folks that all of us have an atm card at and that's legit and so uh also there are government gscs that we also are vetted and approved to acquire from so there's risk coming involved when you try to step into the bank era and collect on debt right because first and foremost just so everybody understands if you can buy mortgage debt at a very steep cost and you can get that person to perform and pay on their mortgage again that's the best outcome for you as the lender and then as the homeowner keeping people in their frigging house keeping families together uh allowing stability across our communities to stay there foreclosure is the worst thing that we want to be doing that's the least that's the most expensive thing to do by the way in this business so if i can get to a resolution with the homeowner that is the best outcome so look if you're going to step now into the jews of a bank the first thing you should be looking to do is to get them to to perform again because guys here's the play for you all that want to learn how to manage mortgage debt from potentially your house the beach uh your mountain house uh europe canada what you need to do is you need to be able to acquire a mortgage debt for a for a discount you need to get mr and mrs smith to start paying on their mortgage again season up those payments so now you're getting mailbox money and you're also keeping them in the home win-win and then about six to nine to 12 months later at whatever time you choose to exit the deal why don't you sell it for almost what the whole mortgage balance is worth to somebody that wants to keep that cash flow until that mortgage loan matures boom you've quickly arbitraged your position inside of a year and you've made a really good return and you did right by those homeowners so uh just just a play that's a play that we we do uh here at the company so kind of don't don't let me don't let me hog all the mic you know and that actually goes back to you know what do you want to do because there are so many different ways you can split this when i very first started we were looking for properties in columbus ohio that was our main our main focus was acquiring the property so we would look for va like loans non-performing loans on vacant property in columbus ohio you can totally do that it does limit you somewhat but if that's what you want to do you can totally do that and then and then we would either get a deed in lieu or foreclose uh and and take back properties that way and so i love look at that play because what were you what were you going to do with those vacant homes in columbus were you guys going we didn't even well what we would do is we would sell or finance them back out oh my gosh to new people yep because those people needed you to come in to be that finance arm because they couldn't approach a traditional bank to get a mortgage exactly again another win-win cash flow along with helping people get home ownership creative way but but you all bought it through the milk though right yeah it's a spin off it's crazy but but figure out what your avenue is going to be because that will determine what product you look for uh prices you're willing to pay that it determines so much so figure out what you want to do with it before you start that's going to help a lot so should someone come up to you cold email i want assets how can a proper person come approach you guys and say i'm looking for assets i have five million dollars and looking to buy assets and when i have 20 grand in the bank right what's appropriate you know because some people come and go i have 10 grand to spend but i'm not going to approach chaz he has he's a big fan i can't buy from them with 10 grand 20 grand 30 grand i need a million dollars can you speak to that person yes because you know we're selling a deal today for 13 grand um and so you know there's mortgages we've acquired for five grand and we sold them for seven brand yeah right and uh now that seven grand it was collateralized by a thirty thousand dollar home i mean yes there are definitely thirty thousand dollar homes in this country it's wild it's like uh you you've gotten yourself into a whole new party you're like how did i get here but but but yeah the last one i bought from the last one i bought from you guys chas we paid 16 000 for it so those are out there then you know 29 27 20.

so that's 59.68 so it's all over the place so let's let new people know the fact that if you're walking in a space please don't tell people you have 5 million to spend just be open and honest of what you're really doing right and tell people hey listen i have x amount of money and i'm looking to buy assets right and we want to make sure that the new investor says listen don't be nervous about approaching jazz but be open to us and say listen i'm new to the space i want to get involved i have some capital i don't have a lot right they signed a non-disclosure agreement and for those people who are feeling better now about approaching someone a hedge fund that scary big and bold right don't lie what should they not do with the inventory that you share with them so a part of the non-disclosure and such part of the vetting process that we go through is really if you step into our restaurant i hate to use this analogy we're hoping you want to sit down to eat right we hope that you don't want to just come into the restaurant and just hang out in the lobby so we want to make sure you are who you are and you are ready to dine and that being said uh our that's a part of our getting to know you process we're looking to understand do you have a background in this space uh do you potentially need a little bit of let's just say education some some resources some tools to help you feel a little bit more comfortable at moving forward and and to be honest we are not an educator uh we're not in that space there are a lot of people who we've partnered with to to help you get real comfortable at starting to make decisions and call plays with confidence that's who we are we're here to show you that we are very diligent in our uh homework and our underwriting on the stuff that we purchase we make sure that because we we buy firsts a lot of people as you very well know audience that you can take out a first mortgage and a second mortgage and there are a lot of people that play in the second mortgage arena and there are a lot of guys that just play in the first mortgage arena um be honest with you there's some guys that do both and so uh for us we specialize in the first space uh we do like to partner with guys that do seconds because a lot of banks will sell both a first and a second and uh it's good to face the bank as as a big party because now you can take down more product from them but what you should not do dave is to take our food and walk right out of the restaurant and not pay for it right so sticking with the analogy so the whole point is is that um you know the whole goal is that if we show you something we're hoping that you diligently will roll your sleeves up and see if any of the houses and potential opportunities work for you if they don't no harm no foul just let us know we'll we'll look to future opportunities to work together right what we don't want to do is have you take our pool uh post it on linkedin or the internet and act like it's your chat your your portfolio and then by the way read then send it back to me and ask me do i want to pay 50 cents higher than i bought that that pool for it's crazy so no what we don't want you to do is start getting into a position where where you may not like something and you're now going to show your neighbor and that now that neighbor could potentially go and door knock one of these homes and violate restful law and now we're into some serious compliance issues that are violation of the non-disclosure and the stuff that we kind of did to get to know one another so that's kind of why we want to make sure you are here for a reason and we want to transact that's what we're here to do we're here to trade we're friendly we're fun we like to joke we we enjoy this business life is too fragile and too quick and we want to enjoy what we're doing um we are who we say we are um we don't want to you know there's no smoke and mirrors there are no middlemen we are not a broker we put up our our cash we own everything that we we we put out and so we just ask for you to approach us in the same fashion yeah yeah and and again that goes back to that whole relationship building aspect that we talked about earlier like it that is what it is so if you show up and you try to misrepresent yourself even just you know making it sound like you're a little bigger than you are or something it's not worth it you'll get found out and you'll look like a fool and you won't be taken seriously going forward i would much rather you be very transparent and direct and say hey look um i know the capital i personally don't have the cash but i know somebody's going to put up 250 to take this package down but what i would prefer you do as a seller is secure that 250 get that into an account that you have control over right so in the event of the 250 you only want to wire us 80 because you only liked x amount of the homes versus all of the homes for 250 then now that's your control that's your source so so i i couldn't agree with you more um nate when i'm out working to raise a lot more capital both equity and debt a lot of the questions that i get from bigger sources is so how do you get this product right like i'm like well isn't that the million dollar question like that's the secret sauce right but let's let's let's not let's not fake anything it's relationship based they they know that that um i'm a principal where we that i'm not going and brokering their deal i have the capital i have the cash in our account we've been around doing this now for almost 15 years and um and here we are uh as a known counterparty to very major sellers so now we we do have flow right that's the that's the really the the the key to this business that you all have to understand is that when you go to the auctions or you watch uh gosh these you know look i love chip and joanna gaines look i'm in texas i love it they created an empire i can't go to target now their throat pillows are like 250.

i'm like your blankets are like 800 bucks i'm like come on um but no good so so they created a really glamorized way of showing how to really kind of charm up homes buy them for low buy by the rough looking this home on the on in the block and make it look really good right well we by we do the exact same thing that they do yet we're acquiring it for far cheaper than they are and we're still doing the fix and flip so you can imagine our margin is wow right so it's just so funny because the question i always get is like why doesn't everybody do this thing right and i don't have a a magical answer for you to be honest with you the the answer is i'm kind of sick of trying to convince anybody if you if you get it and you like real estate and you prefer paying top dollar i love you i'll i'll cheers you at the bar but if you are are legitimate about real estate and you want to acquire it for far cheaper because we all know in real estate we make our money on the buy then we know that let's buy it for the cheapest cost yeah of course you need to learn you got to educate to do it yeah yeah so the one of the lessons yes is that and i think we answered the question if we did guys feel free to jump in here but how can someone brand new reach out to evolve and get a hold of their asset list what's the process are you do you acquire a kind of you know proof of funds and uh you know letter of intent and what does a person who's new do to get your asset list you know if david putz and his wife were hanging out on friday night and said look i want to i heard about revolve i want to go check them out our website is welcoming and friendly and it is very easy to do from an ipad smartphone or your computer and it allows you to it kind of there's a get started button right on our website that walks you right through kind of the recording process we want to get to know each other i kind of want to understand a little bit about your background because for me what if you came into um a clothing shop and you said how can i help you and i'm here for sandals and jeans and then i go ahead and put out you know sweatshirts and beanies you're like did you hear me i wanted sandals and jeans and so i want to understand are you a cash flow player are you a fix and flip play do you like pink houses purple houses right because for us we today we are acquiring product from maine to san diego from seattle to tampa we buy in all 50 states so if you are on the east coast i don't want to show you a bunch of stuff on the west coast right i want to get you you comfortable in your neck of the woods so what are what our sales guys what our asset managers and portfolio managers would want to do is get an understanding of your criteria your capital amount your infrastructure your your backdrop right that allows us to put stuff in front of you that limits not limits it condenses the time in which we can transact yeah i hope that when you come to sign up you don't want to just lookie-loo right i hope you're not coming into the restaurant to do nothing yeah um but the whole point is that by getting signed up at revcapgroup.com if you googled us you can find us and and it's real simple dave but i i would say that if you want to really scale up and take down volume um it's going to be about a relationship okay um you know just like the conversation mate that we had off camera it's it's going to be it's going to be a very similar deal where i just want to make sure that i can tailor a portfolio to how much you want to deploy yeah um and i want to make sure that you can acquire that at a price that you're leaving enough meat on the bone because guys this really isn't cheesy the reason why we have a business is because we are able to get investors like you to get really good at underwriting purchasing managing and selling and then before you know it you talk to your buddy who had a half a million bucks who retired and then you guys rolled that half a million into a million and before you know it you're a fun manager you've retired from your day job and you're doing this full time i mean that's why we have a business because we've done those for people a lot of times over the last 10 plus years yeah and a lot of i mean look at the two guys we're on the screen here with right it's this is now nate this is your full-time gift this is what you do right so i'm talking to you monthly pulling portfolios in front of you because that's our deal right we've we've got and what's cool about you nate is that you like assets that other guys don't like yeah so i'll show out one portfolio to to nate who likes this and another guy who likes this there's no overlap and then the entire portfolio for us is gone now i've unlocked cash within those assets i redeploy that into a bigger portfolio and we continue the chain so that's a good system so just one you know pro tip um and revolve makes it super easy you'll have a recent bpo you'll have a recent title report you'll have the information that you need to make a decision quickly so make a decision quickly and that's my my i guess in you know advice to somebody is you have all that information i do double check and and not because i don't trust chas at all it's more that i don't necessarily trust the information that chaz was given and so i'm just verifying that and and just making sure that that bpo really is what we all think it is and same thing with the title search just making sure that that's what we all think it is uh so that everyone can be on the same page once i've verified that and and which i can do in a day or two um funding comes next and that you know the whole transaction can take place in one week you know monday to friday it can be done and if you can do that and if you do do that you'll get tapes more often you'll be able to do more deals the worst thing you do is don't fund right you go through the whole process and you're like last second for no reason at all hey i'm backing out like listen people understand things happen yeah it's just up for an honest hey listen a little more money that i wanted to spend i have some capital but i don't want enough being open and honest versus hey i'm gonna fund you put a date in that day of you don't fund you can get blacklisted from company like that so two questions for each other someone asked about a particular state i know you guys buying all 50 states and i'm sure there's some states with more assets than others right um but that evan flows that's not consistent where it's like this state you know you see a lot of loans this month next month maybe a different state it's not a one state per se um have you seen any kind of translation of what states like back we got started ohio is hit hard and most tapes were fall ohio yeah have you seen any kind of trends recently fantastic question because yes if you would have asked me prior to the last two years how much stuff have i purchased in the north east i would have said over the last 10 000 units we've taken down i would say less than 20 percent of our portfolio has been in the northeast yeah so i would say i have seen far more new york jersey philly connecticut illinois uh illinois midwest and east has been a huge concentration but i'll give you a little bit of a secret sauce which is if you want to get to houses and states within a bigger portfolio that you want you got to take some of the bad with the good and one man's trash is another man's treasure so one investor will tell you new york bad don't touch it okay so no worries i'll take your new york i'll take your new york on for the right price i always use this example but i i have to use it we all are if any of us here are on this we're all salesmen right we've all you know at some degree we're a salesperson so if you see a rusty volkswagen on the end of the corner and that rusty volkswagen is worth 500 bucks how many of you actually are going to take that 500 bucks try to buy it and flip it for a thousand 800 bucks to somebody else worse okay so everybody kind of feels that now what happens you stick that same rusty volkswagen and it says for sale 5000.

nothing's sitting right you're gonna keep driving right on by it bad price okay so so for us it's it's really about i'll take your your less desirable state if i can factor in enough discount to justify the return on holding that paper in that house you know because the reason why just for you newer incoming investors why new york why new jersey why maine and other states carry longer timelines and horizons than others um is because we call them judicial states versus non-judicial the judicial system forces you to foreclose through the courts where the non-judicial does not so the system is much faster in a non-judicial state so i'm sure you all can imagine that the covid pandemic has definitely brought a backlog into the court system okay there was moratoriums in place you could not foreclose you could not evict and there should be no surprise to you all but you probably haven't seen this in the headlines for years but there was millions and millions of homeowners that had not made their mortgage payments for years pre-coded and you're like what the market was great i never heard that well they didn't want you to hear that so but if you're in a space like us we were seeing i was seeing tapes upon tapes of mortgages that had not paid since 15 14 16.

and i'm like they're still there and then they got saved by the bell heading into and cue the cue the music you got to re-edit this uh you know and so they get saved by the bell going into march of 2020 yeah right pause everything so uh we have a press release out we just took down a trade in late july roughly a 30 million dollar trade from a major and if you looked at the next due payments which in our world is the last payment made on the mortgage was 2016. i mean if i check we're in 21. so right they they definitely got a two-year kind of recess because nobody could do anything and then they got a three-year run of not making their payment i bet you most of you probably don't know this but your mortgage has nothing to do with your light bill your gas your your lawn maintenance nothing so you can be like hey mike and little do you know he's not making his mortgage payment right and they had there was millions of those pre-pulled in so i'm very optimistic i'm going to be one of those that is definitely thinking that the market is coming right to us um and i have many factors that lead me to that and we can talk about that at a different time but i'll just give you one one cents why dave so so one of the questions i had in the in the feed also was you know i guess they got burnt before how many times are assets that are being sold by you guys the crap assets you don't want it just you know it's the bottom of the barrel it's the ass that you just you work there's nothing left in it nate you tell me uh you tell me i'm making a living off of that stuff right so those who are listening right we bought assets too from it's it's not anything to do with the fact that they can't do anything with it there are other reasons why they sell that asset they may be a situation where they need to buy a bigger pool they need to re-capitalize stuff and they sell part of it to pay for the truth they paid for and then they're broke even and they're in a great spot i'll give you one example there could be a house in philadelphia that is worth a half a million bucks it is 80 complete through foreclosure the judgment's been entered for the auction sale date is waiting to be set in the courts to me i'm at the 20-yard line but today's the 15th of october okay so i'm going into a little bit of a cold season in the east coast right i mean even if i got foreclosure back how quickly can i get a gc out there to actually do the work right is whether going to affect me and then when can i actually be able to stick a for sale sign in that property and eventually liquidate it and get my capital back out so we all have different structures right and we all have different ways of returning capital but that timeline for me could have been too long for whatever reason because you don't know i could have held that paper for a year already sinking money into that file pushing along that that foreclosure to get it to 80 and now i'm going to exit it at a decent number maybe i exit at a 62 cents on the dollar so you're like whoa that's a good number that house is worth 500 i'm paying 280 all day get me that and so or 300 whatever that math is guys are like ah you know he's wrong um but no it's like look and look we just sold a half a million dollar home for 300k in this market right so again one man's trash another big treasure just like uh you know no that's that's that's not a that's not a wrong thing to think though dave yeah regarding that comment made by that person saying uh are they just selling the bottom of the barrel right but for us uh we're called revolve capital well and and what i would say to that as well is um it's like any real estate investing you cannot get emotionally involved with the asset so like of all of the loans and properties that i've purchased over the years i would not live in any of them i would never put my family into any of those neighborhoods i would not live in any of those properties i no i just wouldn't that's because that's that's not what i'm looking for i'm you know different priorities all that not to say that any of that is necessarily bad but it's just not right for me it's not what i want for my family and so that's not my stuff i like stocks and bonds just yeah the numbers exactly the numbers are what i look at so did the numbers work if i buy it at x price and i can resell it for x price am i making money yes or no and if the answer is yes then what's the problem it's a numbers game yeah it's totally a numbers game what people don't realize is they they may have a hundred grand to spend and they want to spend all hundred grand on one or two properties and sometimes the best angle here is a buy five yeah buy multiple properties because you don't know where the exercise is gonna be you have no clue where it's going to be right you don't know where that borrows it being a month they may be performing you're golden or the administration so yeah i think most people go into one mindset with this business instead of saying okay i don't know what's going to happen as long as my numbers work for the scenarios i'm good to move forward and with what's going on in the future and we'll get to a minute i think the opportunity is to build your platform build your structure build your systems make your connection go to the node expo right come hang out and shake us down right come say hi to me nathan start that networking now so that in two three months when things start happening you're ready to rock and roll and and as a different route and this is a shameless plug for myself but if you look at this and go man that's way too much work i'd rather just put up the money and get a return yeah there are plenty of funds out there mine included [Laughter] and put some money and park it somewhere and just and collect off it you know you understand the business but you think and that's that's way too much work i don't want to do that you said that earlier and i wanted to kind of come back to that nate which was look you've got nate who's a proven fund manager right he already has his infrastructure set up he has sources set up showing him product he has liquidation channels in the back and that's not always easy to find operators that can kind of have that full cycle so a lot of guys you can tell that i've come across and they have said look that's all you guys that's a lot of moving parts you got houses all over man you gotta manage the servicer man i don't have all that the the ability to do that i can completely understand what you're saying but because because this market definitely does serve an above market return then park your money with a proven fund manager right because you're not going to be able to acquire consistently real estate at these levels in this market especially as we head into where i think we're heading to because um truthfully guys i didn't get into this but i don't need to get political with you but if you're any new administration coming into 21 uh i guarantee one of your first major directives was to not let a housing crisis happen in the first six to 12 months of the president right and if anybody is listening that's a landlord that has not gotten a rent payment since the middle of last year then you completely understand what i'm saying but the the the water behind the dam it's only exceeding it's not slowing down i hope you understand so the dam eventually breaks okay it's just at what point does it do that and i think it has to strategically happen i'll tell you here's here's what i'm fighting a lot what i'm fighting a lot is yeah but today's market's way different right a lot of people have way more equity right all they're going to do is stick a for sale sign and pay you off and do okay cool first i probably bought that mortgage for a discount but they paid me off great return yeah second of all no if your house is worth 500 grand and you owe 250 but you haven't made a payment since 16 you don't owe 250 honey i'm sorry you owe me back interest fees corporate advances escrow advances that have all been done on my behalf foreclosure costs that have all been done on my behalf to a salvage my lean position and b you've been able to stay in that home rent and mortgage free yeah so no you don't owe me 250 you owe me far more than 250.

yeah right so i just want to make sure that like we're talking apples to apples when we talk about somebody being in an equitable position and then you don't make your mortgage payments for five years no no you don't still owe that same amount back it doesn't work like that right so we had another question regarding you know there's a lot of talk about cfds uh what's your perspective of buying cfd versus mortgages there's great areas of cfds with different states than there are with mortgages and i don't like a different rule set in certain states than there are in other states that's a personal fund management preference but i'll just be honest we have five homes today that we finished the foreclosure on the people in the homes were salt of the earth we kept them there we put a cfd on them and we're going to let them continually make payments until at some point they get in an equitable position and maybe they get themselves back to home ownership but truthfully in the meantime i'm going to liquidate those cfps for hopefully a higher number than i acquired them for and they're off the books but i have nothing harmful or bad to say about them but for me i like to be in the senior position head honcho bank it's not egotistical i promise uh it's it's i've been in this business far too long to i don't like seconds because i want to be able to call the shots in the first liam and cfds at some point in the race the borrower then gets back leverage and i don't like that as much yeah i like to keep the leverage so again it's kind of a management style thing cool yeah well before nathan goes into i know he has a hard stop stopper too um i'm looking forward to seeing all you guys including those listening in in november um in about just like two weeks now right so definitely shake hands come out and say hello this is when the networking happens that's when you find assets you talk to chad and say listen i'm in i want to buy stuff in hawaii or whatever you know talk to them not get out of the park and have that personal conversation when you make that phone call it's no longer cold it's warm right so it's okay to still be there at node expo to still be learning and getting comfortable but i'll just tell you as somebody you know i'm going to be speaking on a panel all speaking at a note talk but the note talk just so you guys know is a little bit more about like who i am as a person um i think it's very important to be in this business and realize that we're all humans and the reason why i'm doing this right here on a friday afternoon is not because uh i paid or they paid me to get here it's because of the relationship and because i enjoy seeing this entire space continually grow and that's just from the bottom of my heart and because i know that one person on this call is going to connect with this and that person probably is going to become a player and to me that was worth hanging out with the two of you before and and also you never you just never know you never know because as the market's coming to us and if you're you're a savvy enough person to get some real money behind all of this i think real wealth and riches are coming because you're going to be able to acquire real estate for dirt cheap and so yeah so so we often end off talking about what do we see for the future and we've kind of touched on that already but so let me let me ask it a different way what do you say to uh those people who say oh there's just no deals out there there's just there's there's nothing to buy anymore are you looking [Laughter] like i heard this the other day um about like resourcefulness and today i believe that we are in a era that is the most resourceful we have ever been right um if you can imagine some of the most tragic times in history what would have happened if we had social media because it would have been real time you would have seen this stuff real time right no delay um and no filtered way of getting it and so um what what all that means is that you know guys like myself and others that do sell in this arena are so out there we're looking for credible legitimate people and uh i am living proof that uh we're a three and a half year old company uh prior to this i ran two fairly successful companies that i i worked a lot with these two guys on selling a lot of product there and and it really helped revolve get off the ground a few years ago and that being said i've realized that we are seeing more npl flow in the last three years that we've ever seen in the three years prior um and that is i feel that we haven't even started about what we're going to see in 22 and 23.

so um you got to keep in mind that fannie mae and freddie mac own one out every out of every two mortgages in our country that's a fact that's a fact okay and they have just put out 1.9 billion in q3 you can google it you can find this those that 1.9 billion is broken down into four separate pools and as our government starts to move through this product others will follow suit and i'll tell you when you have product that's been on your books for years and years and years not making payments and that's in the billions right everybody here listening should be the beneficiaries of that product hitting market so thanks for having me guys all right guys well definitely stay tuned we'll be on in a few weeks we'll be seeing everyone enjoy we're going to disconnect from live hope everyone has a good weekend and we have some fun enjoy guys everybody dave putz here from jkp holdings alongside me as always mr nathan turner hello hello hopefully uh everyone's having a good week um a good whatever right long as everyone's doing good stuff right now i think we wanted to connect we haven't talked to each other recently with all the conferences going on and just school starting uh nathan how you been bud i know we haven't seen each other on this live call recently how you been what's been going on we haven't seen each other for a little while now but yeah no it's good everything's good we're um we're you you get this too but we're into beautiful fall weather these are changing color we've got a big red oak in our front yard and it's turning red and beautiful and yeah it's it's gorgeous and so we're loving uh loving the weather loving the work work is always going and and things are moving and progressing and we're supposed to get 80 degrees here in jersey today and i'm not sure what like go outside not go outside summer night and it's supposed to be 60 on sunday yeah so good football on sunday yeah so you one of these conferences you got some good contacts i'm sure everyone saw the videos that you put out there um you know those did those re-energize you for this fall like just getting out there and shaking hands again yeah you know it's really interesting um being away from conferences for so long i i came to a realization that i think i don't i don't think i was ever like depressed but but i could tell my mood was just lower and i wasn't as energized as usual and so getting out to a conference like that that was a big boost and so it's exciting and it's fun and it's good to go and talk to people and see people and interact in person it makes a difference yeah shaking hands with somebody having dinner or just talking with them just is so much different than picking up a phone call or doing a zoom call yeah um and i'm sure product because we we're talking a couple people in our investment community uh last week and they're telling me the product at the top is changing dramatically right now and in the first quarter second quarter of next year it's could be a possibility of a blow up right not at the point where we had back in early 2010s but just to change was dramatic it was crazy um and they're seeing the top end be just as crazy showing signs of cracking is what i'm starting to see uh where some of the values have have kind of edged out they don't seem to be going higher in certain areas there are other areas where it's still going up but in some areas that's what i'm finding is that values seem to be topping out and and it only goes one way from there uh for the short term and then yeah long term of course it'll go back up so it's instantly say that because inventory is something a lot of people ask about they want to know more about it they won't know where it's at um they don't feel that what we're saying is possibly true they didn't see anything but what you don't realize is the conversations we have outside of this private kind of group we talk about right it's it's different so you get in contact with people that you know who bought product in the last three four months we're buying a much higher scale you get the knowledge of what's happening and it's different from last time and you know we we talked about i'll talk to somebody new to notes i say i will tell you anything and everything you want to know except where i buy yeah who who my vendors are um and we're about to let the cat out of the bag on them let me just press it before we introduce my man here sometime we had this conversation with the new investor recently they said dave to share your contacts some of that is private to us and the second part is if you cold email these big funds you may not get the same responsibility it's a relationship base yeah right so yeah let's let one of the cats out of the bag all right there it is mr chaz what's up buddy we're we're sporting some some revolve equipment today for you and i told you i told you both off camera but i'll say this on camera you're definitely getting a swag bag here for the holidays it's in route for sure awesome it's awesome and chocolates we're making chocolates the end of november so we're coming here bring those on those with a nice bottle of wine uh over nice fire is a good good day my friend we're talking pre-camera about all the stuff that's going on you and you know nathan and i've known you i think my entire no career i've known you um it's one of those kind of relationships that's been heaven flow for years the respect is mutual it's awesome but a lot of people don't know who you are and i think they should i mean you've done so many great things in node space and been so real and been still honest and wear two hats you were the hat of understanding our level and then you wear the institutional hat can you share a little bit about how you got started in notes for those who don't know yet it's it's so ironic that we're seeing a a plant behind nathan's shoulder because i felt like fresh out of college i was watering plants and picking guys up from the airport at an asset management company that what i felt in 07 was one of the first to market regarding buying big bulk pools of delinquent mortgages and so i was so new to it i felt like in college i i got a little bit of a background in finance especially with like a focus in real estate so always had a passion for it so i said look i just want to i just want to be around it um it so happened to be that you know you may see some football helmets behind me but um you know i tried to do it after college and i know that the joke is not for long you know it was definitely that for me and i had an agent um at the time who was trying to get me onto teams that says look there's a there's an ep there's like a an epidemic starting to happen mortgage loans have been given to people who could not afford them and they've been given to them for almost a decade call it the late 90s through the early 2000s and it's created like a seven trillion dollar market with a capital t um you know and you guys can can do them you guys can see the evidence now where fannie and freddie are doing like a trillion dollars of new issued mortgages a year because ever since this pandemic happened you guys the house uh i'm coming to you from my house this house your house became your your everything we had to be we had to stay at home we had to get resourceful uh so as a young man at a college i really started to learn first and foremost so wait a second you can buy the mortgage debt from the bank and then you can buy them in onesie twosie level and you can now collect on that debt if they so choose to start paying again or if they say stop calling you can actually foreclose and take the house back what yeah that's how i started in the business and i would say that after a few years of just consistently applying things that i did learn in sports which was to outwork the person in the room right be the hardest working guy and so i just put the time in so that by like my my later 20s my early 20s i was managing how to buy and sell this mortgage debt to investors all across the country and then what so happened is i met a guy that was doing it not in the states and he was doing it in canada right and there he is and so before you know it um you start building relationships because what we did as a buyer or an investor is we knew that we had to raise a lot of capital we had to get uh infrastructure wise we had to get uh compliance we had to do right by homeowners that didn't want to pay and stay and we also had to set up infrastructure for houses that were vacant that were actually causing neighborhoods across all of our country flint michigan cleveland dayton ohio to name a few were blight between 08 and 13.

i mean you couldn't even want to drive a car down these places because it looked like the walking dead the people hadn't been there for for months if not years boarded up so where i'm going with all of this is we knew and what we saw was hold on a second these houses are being sold like costco in big tranches okay and and there was no real market for an investor who had 100 grand 50 grand 300 grand to go by their local auction their local fix and flip why could they go do that but they can now not get their hands on this space yeah so i will say that in early 2009 and 10 we did develop a bridge a pretty strong bridge now this many years later that allows you as a new incoming investor to say look that's a hundred thousand dollar house you mean i can buy that for 350 what in today's market right where things are going over list right when there's less than two months of inventory across the market across every msa in our country um so so all that being said is is that there's there's there's you know from using that plant as as my as my analogy is there's growth in this business that truthfully you guys um our company today we can get into that has definitely grown really through 2020 and 2021 from the comfort of my house right i have i have team members in new jersey oregon california and irvine tampa florida and now i'm in dallas texas i mean literally we're touching almost every corner of this country yet none of us are under the same roof yeah so we're all learning how to do this virtually and we buy we buy debt and we buy banks so we're sorry we buy houses and assets all across our country and uh we we manage them in this function and we can get into you know the infrastructure there regarding vendors and stuff like that so anybody know what kind of tree that is what kind of that one and that one that's a money tree that guys that one's a dragon tree a dragon tree oh meaningful you see we had to we had to use we had to use the nature and that's in the part of the part of this field of steel here so so so let's look at this individual what's called bob schmo right uh bobby pest welcome bob repass right he get in the space he's saying hi and he has 50 grand 60 grand of his name and he wants to get involved how can he approach someone with the asset level you guys get involved with and be successful to reach out and and we don't want people coming into space and lying we don't want people taking the assets and brokering it what should that person do and not do to make sure that they're successful if you're going to want to step into this space which is to buy residential real estate for steep discounted prices uh you're not going to be acting as an individual you're not going into an open house on a saturday or sunday walking through and through it with your wife or your husband and uh you're starting to you know act like hey look we like this house here's our offer we open escrow just gonna tell you what we've tried our best at doing is kind of mirroring that process and buying notes for example you're going to see a spreadsheet i'm so i'm sure many of you call it we call them a tape you see these spreadsheets come across your inbox they're filled up of addresses these addresses are located in all different different states and in cities across our country so cool you can quickly copy and paste those addresses now into zillow into realtor.com google earth get yourself a sense of what you're looking at especially if the house isn't in your backyard okay so truthfully since you're going to potentially now step into the states of being the bank you should have this protected by an llc you should have this protected by a vehicle that is not dave putz nathan turner right the homeowner should not be calling you in the middle of the night letting you know hey i'm going to make my payment in the morning right you should be acting and treating yourself as a business so do that so with an llc yeah right especially as well you want to hold that real estate not personally right so when it comes to how do you get in is have a little bit of footwork done prior to speaking with sellers have your llc set up know where you want to service the the mortgage what does service mean it's a property manager for mortgage debt and their 50 state license compliant nmls license they carry all of the essential risk and communication between the homeowner and you as the lender you should have a third party just like if you were a lien a landlord and you had rentals throughout the country you have a property manager who collects the payment and then remits you uh the the difference right after he takes his fee for managing that house for you the servicer is exactly the same thing in our world so you should have your structure set up you should have your servicer set up and you should then really know if you're a running team or are you a passing team what does that mean are you do you want cash flow passively or do you want to get into the fix and flip business because you know how to buy houses for cheap put some you know how to you maybe have a deal at home depot or lowe's or some local shop that can get you some lumber because lumber's expensive today but you can get lumber for for cheaper than everybody else can um and you can you now can can do rehabs at a really really wholesale cost so now you're saving yourself a ton of margin when you go to flip these homes you i'll tell you there are people that eventually you become both but i'll tell you get strategic at one thing become good at throwing the ball become good at running the ball don't try and do both at the same time right so just a very high just a very high level was structure just an llc so you're protected servicer and playbook what do you want to do right so hopefully that gives you a little so now you have all that set up right and you look for inventory what should an investor who's brand new to space do define inventory successfully fund inventory right um and how should they approach what should they do with the inventory what should they not do with the inventory and basically what does an nda actually mean for some people you know look i'm going to put you on right on the spot i know we're recording here so truthfully you two are a humongous resource for everybody listening to this i'm a seller i know that i'm going to consistently put out products we do want to align ourselves let's just be real here we want to align ourselves with real capital we have we have a lot of headline risk to be concerned about right we we purchase assets from major tier one sellers folks that all of us have an atm card at and that's legit and so uh also there are government gscs that we also are vetted and approved to acquire from so there's risk coming involved when you try to step into the bank era and collect on debt right because first and foremost just so everybody understands if you can buy mortgage debt at a very steep cost and you can get that person to perform and pay on their mortgage again that's the best outcome for you as the lender and then as the homeowner keeping people in their frigging house keeping families together uh allowing stability across our communities to stay there foreclosure is the worst thing that we want to be doing that's the least that's the most expensive thing to do by the way in this business so if i can get to a resolution with the homeowner that is the best outcome so look if you're going to step now into the jews of a bank the first thing you should be looking to do is to get them to to perform again because guys here's the play for you all that want to learn how to manage mortgage debt from potentially your house the beach uh your mountain house uh europe canada what you need to do is you need to be able to acquire a mortgage debt for a for a discount you need to get mr and mrs smith to start paying on their mortgage again season up those payments so now you're getting mailbox money and you're also keeping them in the home win-win and then about six to nine to 12 months later at whatever time you choose to exit the deal why don't you sell it for almost what the whole mortgage balance is worth to somebody that wants to keep that cash flow until that mortgage loan matures boom you've quickly arbitraged your position inside of a year and you've made a really good return and you did right by those homeowners so uh just just a play that's a play that we we do uh here at the company so kind of don't don't let me don't let me hog all the mic you know and that actually goes back to you know what do you want to do because there are so many different ways you can split this when i very first started we were looking for properties in columbus ohio that was our main our main focus was acquiring the property so we would look for va like loans non-performing loans on vacant property in columbus ohio you can totally do that it does limit you somewhat but if that's what you want to do you can totally do that and then and then we would either get a deed in lieu or foreclose uh and and take back properties that way and so i love look at that play because what were you what were you going to do with those vacant homes in columbus were you guys going we didn't even well what we would do is we would sell or finance them back out oh my gosh to new people yep because those people needed you to come in to be that finance arm because they couldn't approach a traditional bank to get a mortgage exactly again another win-win cash flow along with helping people get home ownership creative way but but you all bought it through the milk though right yeah it's a spin off it's crazy but but figure out what your avenue is going to be because that will determine what product you look for uh prices you're willing to pay that it determines so much so figure out what you want to do with it before you start that's going to help a lot so should someone come up to you cold email i want assets how can a proper person come approach you guys and say i'm looking for assets i have five million dollars and looking to buy assets and when i have 20 grand in the bank right what's appropriate you know because some people come and go i have 10 grand to spend but i'm not going to approach chaz he has he's a big fan i can't buy from them with 10 grand 20 grand 30 grand i need a million dollars can you speak to that person yes because you know we're selling a deal today for 13 grand um and so you know there's mortgages we've acquired for five grand and we sold them for seven brand yeah right and uh now that seven grand it was collateralized by a thirty thousand dollar home i mean yes there are definitely thirty thousand dollar homes in this country it's wild it's like uh you you've gotten yourself into a whole new party you're like how did i get here but but but yeah the last one i bought from the last one i bought from you guys chas we paid 16 000 for it so those are out there then you know 29 27 20.

so that's 59.68 so it's all over the place so let's let new people know the fact that if you're walking in a space please don't tell people you have 5 million to spend just be open and honest of what you're really doing right and tell people hey listen i have x amount of money and i'm looking to buy assets right and we want to make sure that the new investor says listen don't be nervous about approaching jazz but be open to us and say listen i'm new to the space i want to get involved i have some capital i don't have a lot right they signed a non-disclosure agreement and for those people who are feeling better now about approaching someone a hedge fund that scary big and bold right don't lie what should they not do with the inventory that you share with them so a part of the non-disclosure and such part of the vetting process that we go through is really if you step into our restaurant i hate to use this analogy we're hoping you want to sit down to eat right we hope that you don't want to just come into the restaurant and just hang out in the lobby so we want to make sure you are who you are and you are ready to dine and that being said uh our that's a part of our getting to know you process we're looking to understand do you have a background in this space uh do you potentially need a little bit of let's just say education some some resources some tools to help you feel a little bit more comfortable at moving forward and and to be honest we are not an educator uh we're not in that space there are a lot of people who we've partnered with to to help you get real comfortable at starting to make decisions and call plays with confidence that's who we are we're here to show you that we are very diligent in our uh homework and our underwriting on the stuff that we purchase we make sure that because we we buy firsts a lot of people as you very well know audience that you can take out a first mortgage and a second mortgage and there are a lot of people that play in the second mortgage arena and there are a lot of guys that just play in the first mortgage arena um be honest with you there's some guys that do both and so uh for us we specialize in the first space uh we do like to partner with guys that do seconds because a lot of banks will sell both a first and a second and uh it's good to face the bank as as a big party because now you can take down more product from them but what you should not do dave is to take our food and walk right out of the restaurant and not pay for it right so sticking with the analogy so the whole point is is that um you know the whole goal is that if we show you something we're hoping that you diligently will roll your sleeves up and see if any of the houses and potential opportunities work for you if they don't no harm no foul just let us know we'll we'll look to future opportunities to work together right what we don't want to do is have you take our pool uh post it on linkedin or the internet and act like it's your chat your your portfolio and then by the way read then send it back to me and ask me do i want to pay 50 cents higher than i bought that that pool for it's crazy so no what we don't want you to do is start getting into a position where where you may not like something and you're now going to show your neighbor and that now that neighbor could potentially go and door knock one of these homes and violate restful law and now we're into some serious compliance issues that are violation of the non-disclosure and the stuff that we kind of did to get to know one another so that's kind of why we want to make sure you are here for a reason and we want to transact that's what we're here to do we're here to trade we're friendly we're fun we like to joke we we enjoy this business life is too fragile and too quick and we want to enjoy what we're doing um we are who we say we are um we don't want to you know there's no smoke and mirrors there are no middlemen we are not a broker we put up our our cash we own everything that we we we put out and so we just ask for you to approach us in the same fashion yeah yeah and and again that goes back to that whole relationship building aspect that we talked about earlier like it that is what it is so if you show up and you try to misrepresent yourself even just you know making it sound like you're a little bigger than you are or something it's not worth it you'll get found out and you'll look like a fool and you won't be taken seriously going forward i would much rather you be very transparent and direct and say hey look um i know the capital i personally don't have the cash but i know somebody's going to put up 250 to take this package down but what i would prefer you do as a seller is secure that 250 get that into an account that you have control over right so in the event of the 250 you only want to wire us 80 because you only liked x amount of the homes versus all of the homes for 250 then now that's your control that's your source so so i i couldn't agree with you more um nate when i'm out working to raise a lot more capital both equity and debt a lot of the questions that i get from bigger sources is so how do you get this product right like i'm like well isn't that the million dollar question like that's the secret sauce right but let's let's let's not let's not fake anything it's relationship based they they know that that um i'm a principal where we that i'm not going and brokering their deal i have the capital i have the cash in our account we've been around doing this now for almost 15 years and um and here we are uh as a known counterparty to very major sellers so now we we do have flow right that's the that's the really the the the key to this business that you all have to understand is that when you go to the auctions or you watch uh gosh these you know look i love chip and joanna gaines look i'm in texas i love it they created an empire i can't go to target now their throat pillows are like 250.

i'm like your blankets are like 800 bucks i'm like come on um but no good so so they created a really glamorized way of showing how to really kind of charm up homes buy them for low buy by the rough looking this home on the on in the block and make it look really good right well we by we do the exact same thing that they do yet we're acquiring it for far cheaper than they are and we're still doing the fix and flip so you can imagine our margin is wow right so it's just so funny because the question i always get is like why doesn't everybody do this thing right and i don't have a a magical answer for you to be honest with you the the answer is i'm kind of sick of trying to convince anybody if you if you get it and you like real estate and you prefer paying top dollar i love you i'll i'll cheers you at the bar but if you are are legitimate about real estate and you want to acquire it for far cheaper because we all know in real estate we make our money on the buy then we know that let's buy it for the cheapest cost yeah of course you need to learn you got to educate to do it yeah yeah so the one of the lessons yes is that and i think we answered the question if we did guys feel free to jump in here but how can someone brand new reach out to evolve and get a hold of their asset list what's the process are you do you acquire a kind of you know proof of funds and uh you know letter of intent and what does a person who's new do to get your asset list you know if david putz and his wife were hanging out on friday night and said look i want to i heard about revolve i want to go check them out our website is welcoming and friendly and it is very easy to do from an ipad smartphone or your computer and it allows you to it kind of there's a get started button right on our website that walks you right through kind of the recording process we want to get to know each other i kind of want to understand a little bit about your background because for me what if you came into um a clothing shop and you said how can i help you and i'm here for sandals and jeans and then i go ahead and put out you know sweatshirts and beanies you're like did you hear me i wanted sandals and jeans and so i want to understand are you a cash flow player are you a fix and flip play do you like pink houses purple houses right because for us we today we are acquiring product from maine to san diego from seattle to tampa we buy in all 50 states so if you are on the east coast i don't want to show you a bunch of stuff on the west coast right i want to get you you comfortable in your neck of the woods so what are what our sales guys what our asset managers and portfolio managers would want to do is get an understanding of your criteria your capital amount your infrastructure your your backdrop right that allows us to put stuff in front of you that limits not limits it condenses the time in which we can transact yeah i hope that when you come to sign up you don't want to just lookie-loo right i hope you're not coming into the restaurant to do nothing yeah um but the whole point is that by getting signed up at revcapgroup.com if you googled us you can find us and and it's real simple dave but i i would say that if you want to really scale up and take down volume um it's going to be about a relationship okay um you know just like the conversation mate that we had off camera it's it's going to be it's going to be a very similar deal where i just want to make sure that i can tailor a portfolio to how much you want to deploy yeah um and i want to make sure that you can acquire that at a price that you're leaving enough meat on the bone because guys this really isn't cheesy the reason why we have a business is because we are able to get investors like you to get really good at underwriting purchasing managing and selling and then before you know it you talk to your buddy who had a half a million bucks who retired and then you guys rolled that half a million into a million and before you know it you're a fun manager you've retired from your day job and you're doing this full time i mean that's why we have a business because we've done those for people a lot of times over the last 10 plus years yeah and a lot of i mean look at the two guys we're on the screen here with right it's this is now nate this is your full-time gift this is what you do right so i'm talking to you monthly pulling portfolios in front of you because that's our deal....