Unlimited Loan Servicing for $77/Month: Borrowers Pay It | Real Estate Notes Show

**David Putz:** Welcome back to another Real Estate Note Show. I'm your host, Dave Putz, from JKP Holdings. Alongside me, as always, Mr. Nathan Turner. **Nathan Turner:** Hey, hey, how are you? **David Putz:** Good, man! Hope all is going well. It is getting springtime and warm out, dude. **David Putz:** Get started! **Nathan Turner:** It's getting to be DME time, where… **David Putz:** No, it's crazy. **Nathan Turner:** exciting stuff. This is, we've got lots of good stuff going on. I love springtime. It's interesting in the note business, we seem to have swings, and I would say one of the swings is that springtime.

And so it's been interesting seeing what's coming out there and what's, what's available, what's going on, so it's good. **David Putz:** So, right now, we're… things are shifting, like I said, the springtime coming out there, notes have kind of been where they're at. I think that we've seen a shift in the last couple months. I've seen some non-performers come through. I've seen some questions about some stuff. **David Putz:** that are not typical. We're hearing some things, the rumbles of default starting to possibly happen with some economic worldwide that we talked about. **David Putz:** our private call, all this stuff going on, I think that people get caught up on the stuff, in the past and not know what's gonna happen in the future, and you have to be prepared anytime you get into situations.

**Nathan Turner:** Yeah, it's kind of an interesting thing, and it's one of those things that I like to tell people about with notes is. **Nathan Turner:** We're fairly… **Nathan Turner:** undisturbed by what was going on in the world. To a point, right? Of course, there's always going to be extremes, but, **Nathan Turner:** But generally speaking, if you're talking about a performing note. **Nathan Turner:** It's most likely going to continue to perform, and if it doesn't, then you most likely bought it at a good enough **Nathan Turner:** deal, the way you're supposed to, to make sure that you've got equity in there, and so it… overall, it doesn't really affect the note business too much.

And again, of course, there's extremes, and there's things that can happen, but **Nathan Turner:** But that's one of the things that I love about notes, is that whatever's going on in the market, yeah, do whatever you want, I don't care. We're good. **David Putz:** Yeah. **Nathan Turner:** warming note, it's doing what it's supposed to do. **David Putz:** Absolutely. **David Putz:** One of the things we talked about before we got on air is that, you know, we have a great guest with us talking about **David Putz:** You know, simplifying getting it servicing. **David Putz:** You know, you and I both know servicing is one of the crucial elements.

If you guys are listening for the first time, and you create notes, or you buy notes, servicing is crucial. I know you can service yourself. **David Putz:** But I highly recommend you don't. Nathan, just before we aired, shared about a situation that he's dealing with, and still in Cook County, if those are our fellow investors who listen to us regularly, still dealing with it. **David Putz:** Without a servicer, that's something he has to handle all the time. And you don't want to deal with that kind of stuff. You want to have something that you can prove in court, third-party data that's something outside your hands.

**David Putz:** Really? **Nathan Turner:** Absolutely, and it's crucial to have that, and it's… **Nathan Turner:** Is it possible to service your notes? Of course it is. Yes, it is. And we're gonna talk to our guest today, and he's gonna tell us about how to do that properly. But, you know, there's gotta be a mix there, and you gotta decide how you want to approach this, and… **Nathan Turner:** What direction do you want to go? **David Putz:** Absolutely. Well, without further ado, let's bring him in Ted. **David Putz:** Thank you for joining us, Amanda, appreciate you coming on for a little bit.

Tell us about. **Ted T:** Thanks so much for having me. **David Putz:** Yeah, tell us about yourself. How'd you get started into the real estate world? What's your background? **Ted T:** Sure, so my name's Ted Teacup, I'm the CEO of Simple Money. I've spent my whole career in financial services, which is getting to be kind of a long time now. I've got more gray hair than I used to. I worked for 3 different banks along the way, one of which… one of those was the top 10 mortgage lender in the country for a while. Then I got into FinTech about 15 years or so ago. FinTech, for those who don't know, is the intersection of **Ted T:** financial services and technology.

Really, it's where, in my world, where software meets financial services. And, you know, I thought there was a really interesting space in the market, as there's been a big shift from traditional bank lenders, like a bank or a credit union being the predominant lending source in the United States, to private lenders. Believe it or not, over a trillion dollars in annual loan volume in the U.S. is done by **Ted T:** Private lenders, non-bank entities these days. **Ted T:** And while banks run their whole loan book off of their core operating system, private lenders don't have the same set of tools, and they're not going to pay hundreds of thousands of dollars for a core system.

Oftentimes, they don't want to pay, you know, 10 grand a month for some of the software tools that are available to, you know, larger mortgage loan origination shops. And so I just thought there was a great opportunity in the market to help **Ted T:** Help small to mid-sized folks doing real estate lending that need to manage that whole process from the time you make the loan all the way through the end of repayment. **Ted T:** So, that's what we're, that's what we've been focused on at Zimple Money, and kind of continue to, you know, work to evolve and meet our customers' needs. **Nathan Turner:** Well, that's cool.

How long has Zimplement Money been up and running? **Ted T:** Zimbo Money's been around for a long time, since 2009. I've been CEO for about 3 years, and, you know, have continued to kind of build the team and evolve the platform and make it easier and easier to use and meet all of the different kind of unique use cases that we see in the private real estate lending market. **Nathan Turner:** Very cool. **David Putz:** So, it's software that an investor who is creating, lending, anything could use to **David Putz:** Put their loan on a platform, track their payments, get the statements out, send out the annual stuff.

**David Putz:** All the simple things that can be done by the investor, but made it so much easier, so much more… **David Putz:** Let them be the investor. Let them be the real estate person. **David Putz:** And allow an automatic system to work in the back end to do all that heavy lifting, and just forget about it, kind of thing. **Ted T:** Yeah, that's right. I mean, we're purpose-built software to manage loans that are in the repayment process. We're integrated with the ACH network, so we can automatically process payments if somebody turns on auto-pay, make it really easy to get that set up, you know, both on the borrower and lender side.

We have customers that are originating loans that come to us once they have a borrower and have agreed to all their terms and need to, you know, set up that loan for, you know, self-service **Ted T:** for repayment. We also have folks that come to us that have been doing it themselves on a spreadsheet, or have been using some old software that is clunky and hard to use, or is really expensive, and we can help, you know, migrate an existing portfolio onto our platform as well. **David Putz:** Just taking… **Nathan Turner:** Cool. **Nathan Turner:** Interesting. I'm curious how you guys compare to some of these other, there's actually not a lot.

There are not a whole lot of servicing softwares out there, but what makes you guys a little bit different? **Ted T:** I think, you know, we're cloud-based, first of all, so you can access our software from anywhere. We're an independent third-party source of truth, so we have, both a login for lenders and for their borrowers. Borrowers can log in like, you know, traditional mortgage servicing software. They can see what their payoff amount is, they can see when their next payment is due, they can make, they can make a payment, turn auto-pay offer on, make an extra payment, extra principal payment.

**Ted T:** kind of all the different things that you might expect. So being that kind of third-party source of truth, I think, is really helpful when you get into default scenarios, like you were talking about earlier, Nathan, where you need some system of record that's not just the lender's spreadsheet. That's where you can kind of get into trouble. Also, we've built out, you know, 10 different loan types, 3 different interest rate bases, a whole bunch of different repayment frequencies. **Ted T:** We can kind of automatically handle everything that happens over the course of a loan. It's not hard to come up with an amortization schedule in Excel, but it gets real complicated the first time somebody misses a payment, or when you have, you know, two different investors in a loan that each own part of it, and you need to split repayment it, you know, as each payment comes in.

**Ted T:** We're just sort of designed and built to handle all of those different use cases at a really affordable price that kind of the small to mid-tier guys can afford. **David Putz:** We can definitely get that in a second. You say you're fintech. Do you guys have, like, API or ways for lenders to pull the information on without having to manually log into the website? **Ted T:** We do! So, we have our own Zimple Money branded website, Rick, where we can sign up today, or we have private label versions of our website. Some of our bigger customers take advantage of that, so it looks and feels like their product.

And about a year ago, we finished building out APIs so we can integrate to other software platforms. We're going to be announcing a couple special deals in the node investing space with other software platforms here shortly. So we can… **Ted T:** We can originate loans from other platforms, we can accept payments, you know, through other platforms, and we sort of manage all the maths in the back end and the money movement on our side. **David Putz:** That's awesome. **Nathan Turner:** Interesting, yeah. **David Putz:** What are some… **David Putz:** biggest issues or problems or things you would like for those who are creating notes to know **David Putz:** to… you make it easy, but you can't do a whole thing for them.

What are some things that you have come across that are just no-goes? Like, what are some things they just… you can't do? Listen, you guys make it easy, but you can't be that easy, right? **Ted T:** Sure. Yeah, I mean, look, there are some basic things that you need to have, you know, to set up repayment on any loan. Things like, what's your interest rate? When are you going to start accruing interest, how often do you want to process a payment? You know, who's your borrower? What's their bank account information? Borrowers can provide their bank account information themselves, but you'd be surprised how often, you know, folks aren't aware of all that.

**Ted T:** I, you know, we strongly recommend, having a note agreement drafted by an attorney, and we can do document storage and put that on any note on our platform, too. That's another, you know, kind of key thing. I think, you know, sometimes people come to us and they've been managing it themselves and kind of doing it wrong, yet, you know, the terms of their note agreement don't match what they've been doing in their spreadsheet and how they've been **Ted T:** spreading principal and interest and fees, you know, across the repayment process. So sometimes we've got to do a little work to, like, you know, help correct things or start new, you know, with a new loan setup.

So yeah, we see all sorts of different stuff. **Nathan Turner:** That's interesting, so you'll actually help walk through people who are bringing over… let's say they've been keeping track on spreadsheets or something like that, you'll help, kind of. **Nathan Turner:** Make sure that it's actually all correct, as it's getting. **Ted T:** Yeah, absolutely, yeah. **Nathan Turner:** That's a big deal. **David Putz:** You said, you said storage collateral. Do you guys actually physically store physical files? **Ted T:** We don't store physical files, we store it in the cloud, yeah. So you can upload any document, any title, loan agreement, any other documents that pertain to the deal, you can store all those attached to that file in our software platform.

**David Putz:** And if it goes to fault, how do you guys handle that? Are you guys doing borrow outreach, or is the lender doing that kind of stuff? **Ted T:** So we have automated late payment notifications in our system that are on kind of a preset cycle. We send out payment notifications via email and SMS, with a link in it so they can do, you know, one click to pay. However, if a borrower's not, you know, not responding to that, not making payments, and they go into default, our lenders can mark a loan as in default. That prevents automated payments, and it prevents them from **Ted T:** logging in and making a partial payment.

At that point, we refer our borrowers either to their attorney, or we have a list of attorneys that can help them in their state. Because really, you need to get an attorney involved if you're going to foreclose on a process. **Ted T:** That is one thing that's different between us and a traditional third-party servicing company, is we don't, you know, follow the schedule of which notices you need to send out when to be legally compliant in that state. We recommend that you get an attorney involved, because you're going to need one anyway if you're going through that whole foreclosure process.

**David Putz:** Yeah. The one thing I always use my services sometimes used for is for demand letters, where it's a simple letter sent out on my behalf that says this, do you guys do demand letters, or you instruct the lenders to go to their attorneys and draft it that way? **Ted T:** Yeah, the latter, yeah. **David Putz:** Okay, awesome. **David Putz:** So, Nathan, we deal with a lot of servicers. One of the things that I have in my systems is that if a loan goes to fault, I have to email them to make sure that they mark it as, do not collect. Don't take partial payments. So, that… **David Putz:** Seems like a simple feature to add.

**David Putz:** The fact that you guys add it is really cool, right? Because I want to be able to log in and hit a button and be done, and then undo it if I need to, or, hey, listen, you know, the borrower calls up and says, I have full payment to make. **David Putz:** let… it obviously will override it because they paid in full, right? Or they paid up. **David Putz:** That simple feature is really cool. What other tech stuff… **David Putz:** do you have that maybe different traditional seller finance, owner finance, note buyers, servicers have? **Ted T:** Yeah, that's… I'm really glad you brought that up.

So that's one, one point of differentiation between us and kind of a traditional third-party servicing model, is we put you in the driver's seat. **Ted T:** So, if you want to waive a late fee, change the payment date, let's say somebody gets a new job and now they get paid on the 7th instead of the 1st, you can do all of that yourself. You can extend loan terms yourself, you can change the payment amount yourself, you're in control of doing all of that. Where traditionally, you've got to call or email the servicing company and say, hey, can you waive that late fee for me? You know, it just kind of gives you **Ted T:** a lot more hands-on control in the platform.

And, you know, we're continually gathering feedback from our customers, changing different features, adding new features and functionality. One thing that we added within the last year is enabling loan syndicates, so multiple different lenders on a certain loan, and we can either do that on a pro-rata basis on, you know, how much of the principal they're lending out, or we can do what we call a **Ted T:** managed loan contract, or some people call it a wrap contract, where the principal lender gets a higher yield than the other co-lenders. That's, you know, features we got actually at DME, Nathan.

We talked to one of your attendees there that had that idea. So we're continuing to evolve that platform out. Also, we've added some capabilities where some of our customers **Ted T:** are both a lender and a borrower. Like, they'll borrow money from investors, and they re-lend that out, or, you know, buy different notes, and they can manage their repayment to investors as well. Again, with that whole syndicate structure, if they're borrowing from more than one lender or investor at a time. **Nathan Turner:** Very cool. **David Putz:** We have a four-letter word that me and Nathan are not big fans of, and I'm curious if you guys will service them.

Wrap notes, where you have a subject to, and the wrap note pays the underlying debt. **David Putz:** Do you guys service those? **Ted T:** We don't do that specifically today, so we won't accept a payment on a new note and then pay on an existing loan. We don't do that today. That's one other thing that some servicers will do that we don't do. **David Putz:** Yeah, that's okay. We're not big fans of it, just in general. It just… it gets dirty and gets messy, so it's good to hear. So, when about. **Nathan Turner:** It's hard to do that one correctly. **David Putz:** Yeah, when a lender comes to you and they have a note in default.

**David Putz:** That's typically scary. For those who are listeners who have never had defaults. **David Putz:** I think it says me and 8th have been around for a long time, and our first 9, 10, 12 years of being in the space, it was all defaults, and now we're all performing. **David Putz:** What do you typically walk them through that they may get nervous? This is like new… **David Putz:** They've been in this space for 3, 4, or 5 years, and going, holy goodness, it defaulted! What do I do now? How do you comfort them? What kind of direction do you tell them? Obviously, attorneys, one thing, and we've had attorneys on our show.

Attorneys can be nervous. They're scared, right? **Ted T:** Correct. **David Putz:** Simply walk your lenders through to make sure that they're comfortable with what the next step is. **Ted T:** Well, we advise of the late notifications that we send out, first and foremost. We show them the, you know, the default feature, you know, that we talked about earlier. But as I said, we're not, we're not specialists in managing through that whole default process and, you know, ultimately the foreclosure process. **Ted T:** So we do work with a network of different attorneys locally, and can refer those folks, you know, out to people that can really help them.

**Ted T:** Awesome. You know, I know attorneys can be scary, and they can be expensive, but, you know, ultimately, that's the kind of legal resource that you need. And it's also why it's important to set your note up right, to have full records on, you know, the payments that you've received, and be able to, you know, present all of that. **David Putz:** One thing that was big in 2025 was hard money lending. **Ted T:** Do you guys offer hard money? **David Putz:** Lending, servicing, 12 months, 6 months, whatever it is, can they load that note up there and service it for you guys? **Ted T:** Absolutely, yeah.

Yeah, a good portion of our customer base are hard money lenders that use our software, too. **David Putz:** Amazing. **Ted T:** So we can do things… we can do things like additional draws, you know, that happens in the. **David Putz:** Yeah, yeah. **Ted T:** where they'll loan a certain amount, you get a certain stage in a project, and they, you know, advance additional funds in a draw. We can do that in our system, too. **David Putz:** That's awesome. **Nathan Turner:** That's really cool. **David Putz:** We didn't get into the hot topic. What are some of the pricing, just broadly touching upon, for a note that **David Putz:** We'll start with a note that is in default.

**David Putz:** How do you guys price that note? Are you charging different? Is there any extra fees? **Ted T:** No, we don't. There's no extra fees for that. We charge, we charge in a couple different ways. One is a monthly subscription fee, and that's just based on the number of active loans that you have in our platform, including loans that are in default. So our cheapest one is just for up to 3 loans, and it's a… it's as low as $23. **Ted T:** Middle tier is $47 a month for up to 20 active loans, and unlimited is only $77 a month, and you can have 1,000 loans on there if you want. It's unlimited.

**David Putz:** Wow. **Ted T:** Though it's… **David Putz:** $77 for… if you have 1,000 loans, it's $77. It's not 70 bucks a loan, like a lot of services we know, Nathan, right? That's right. We charge $30, $40, $50 a loan. Yeah. You're saying if we have 1,000 loans, it's less than $100 a month. **Ted T:** That's right, yeah. **David Putz:** servicing. **Ted T:** That's correct. We do charge a transaction processing fee when we're processing ACH payments, or for, like, installment contracts, we can also process credit or debit card payments. **Ted T:** So on ACH, that's $1.50 plus 2%, with a cap at $19.

And we do have volume discounts for our larger customers in that space as well. So if we're moving the money for you, we charge some transaction fees as well. We actually have costs associated with processing those, and automatically post all of those to the ledgers. But one thing I tell all of our customers is, you can set up your contracts so that you pass all of those **Ted T:** fees on to your borrowers. You can set up a monthly service fee that will automatically charge, you can charge ACH transaction fees, you can charge origination fees, you can do all of that through our platform as well.

So, honestly, most of our customers end up using our platform for free, because they're passing those fees on to their borrowers. **David Putz:** Wonderful. So, when they do this kind of stuff. **David Putz:** Do you guys have an RMO section? Do you… are you guys originating **David Putz:** Are you able to do RMLO work? **Ted T:** We are not a loan origination software. In the software world, it's kind of LOS, or loan origination systems. It's an LMS, loan management systems, and we're in the latter category. We have been talking to and thinking about more capabilities in the LOS space, but don't have any of that developed yet.

**David Putz:** Yeah, I personally think that, you know, the software itself needed a great improvement. You know, Nathan and I have been here for a while. The software's… **David Putz:** clunky, to say the least, right? It is not fun, it's not easy, and it's just not clean, right? Cloud-based stuff is great, **David Putz:** just the fact you're a tech person, I enjoy it. I think that most people get into servicing are scared and nervous, because it's so old-fashioned. **David Putz:** The fact you bring into a tech portion of it. **David Putz:** isn't scary, it's actually smoother. It's just easier.

So, when they do onboarding, what's that process look like? The ease of it? Are they dealing with a live person? Are they doing an email? How do they board a loan with you guys and start that process? **Ted T:** Sure. Well, first of all, it's music to my ears when you say that legacy software is clunky and hard to use. That sounds like opportunity to a guy like me. Second, when somebody's onboarding a new loan, most of the time when people sign up, we, you know, we walk them through a demo during the sales process and show them how it works. Once they actually sign up, we'll help them set up their first note, just to kind of answer any questions as they go through.

**Ted T:** And then, of course, if they have questions as they're doing their second or third or tenth, you know, we've got a little chat bot that they can ask that goes to a real human. They can call us, they can email us, we've got, you know, real folks that are here in the US that will hop on a Zoom and answer their questions. **Ted T:** And if somebody has more than one or two notes, like if they've got 10, 20, 50, 100, we can do a batch upload process to upload all of their loans at once. Typically, we'll do that in our test environment, so they can go see them all, and we can correct anything that, you know, didn't come out right, and then we'll push all those to production and invite the borrowers.

**David Putz:** Gotcha. Wow. It's good, music to our ears, hearing some kind of tech is getting into this space, right? **Nathan Turner:** Yeah, that's good. **Ted T:** Okay. **David Putz:** You sound like you had a chatbot and things like that. Do you have a phone person that can answer a phone for borrowers? Because a lot of borrowers are old-fashioned. And is that call service? **David Putz:** Seem to be easy for most borrowers? Is it something that's practical, multi-language kind of stuff? **Ted T:** Yeah, anybody can call our number, it's on our website, right? And that'll get you to a real human.

You know, if somebody isn't available, you can leave a voicemail and we'll call you back. But yeah, that's a real person, and we help both our lender customers and their borrower customers, so we support both sides. **Nathan Turner:** Very interesting. So, **Nathan Turner:** This is the… man, this is the kind of thing I was looking for when I was first getting started, and I tried a couple of different iterations, and they just… **Nathan Turner:** didn't work, they were… they just… **Nathan Turner:** were not as, you know, useful as I was hoping they would be. So this is really interesting. **Ted T:** Cool.

**Nathan Turner:** And you talked about licensing a little bit, like, state licensing for collecting, on… **Nathan Turner:** debt on loans. Sure. How do you handle that, or how does that work with using your… **Ted T:** So we are not a lender, right? And we don't have lending licenses in any state. We're a tool for lenders, just like many other software applications. You know, Microsoft doesn't need a lending license for you to use Excel to do this yourself, either. So, you know, thankfully, we don't have to worry about that. In terms of, **Ted T:** Money transition, we, we operate with an FBO trust account, so, that's how we comply with, with money service business regulations.

We're also, NACHA compliant. We comply with all ACH rules, we're PCI compliant, on the card network side, and we're SOC 2 certified as well, so we've got kind of all of the, all of the information security, you know, controls audited by a third party, too. **Nathan Turner:** Okay. Now, and Dave, let's tangent a little bit here, because from what I remember, learning way back in the day, is if I'm… if I'm servicing my own loans, I have the right to do that, and in most states. **Nathan Turner:** I don't need to be licensed, because I'm only handling my own loans. The trouble comes when I'm trying to service somebody else's loans, and then I become a servicer, and then there's all kinds of licensing that goes along with that.

There are some specific states where just the fact that you own a loan means that you need, **Nathan Turner:** Debt collector licensing in that state, but **Nathan Turner:** for the most part, and this is something that I would invite people to go and double-check, for the most part, my understanding is that if you're servicing your own loans, you don't need to be licensed, you don't need any kind of special anything. But again, like I said. **Ted T:** That's it, don't. **Nathan Turner:** Don't go with me. **Ted T:** That's a great point, Nathan. There are state-by-state requirements. My understanding is the same as yours.

In most states, if you are servicing your own loans, you don't need a lending license to do that. There are certain states, and sometimes certain counties in certain states, where the rules are different, and those can be tricky places to do business. **David Putz:** What are some… But going on with that, what are some problems if you self-service? What can go wrong **David Putz:** Just using a spreadsheet. **Ted T:** So using a spreadsheet, first of all, it's your own records, it's not a third-party source of records, so if you end up, in default or in foreclosure, your case is not as strong as if you, you know, print out, you know, the loan ledger from Zimple money.

Second, if you're using a spreadsheet, it's really easy to get wrong. Like we talked about before, you know, the minute that a payment is late. **Ted T:** or you get a partial payment or something, and you need to recast the loan. Like, that gets really complicated really quickly. **Ted T:** So, yeah, I mean, there's a hundred different things that can go wrong if you're trying to do it manually yourself. **David Putz:** And a lot of people do, right? They want to save the money, they want to be cheap on it, they want to limp into it. And I think your key point before was. **David Putz:** Well, this could be free! **David Putz:** This doesn't have to cost you any money at all.

**Ted T:** You can literally put this on here. **David Putz:** And if you have one loan, you're paying, you know, $23 a month, and it's a 3, you're still paying $23. So… **Ted T:** Okay, yeah. **David Putz:** You just pass along to the borrower and say, listen, you're paying his bill, And… **Nathan Turner:** Tip it! **David Putz:** For note buyers, that's actually a plus. If you create a note with the borrower pays servicing fees, it helps us buy it for a higher price. **Nathan Turner:** Yeah. **David Putz:** That feature right there allows you to do this absolutely for free. **David Putz:** Right? So, be mindful of the fact that this is not a cost.

This is a benefit to you. So, yes, wonderful, wonderful. **Nathan Turner:** Yeah. **Nathan Turner:** Go ahead. **Ted T:** I was just gonna say, yeah, absolutely. I mean, you can set it up so you're not out of pocket in terms of actual dollars, but think about the time that you save, too, and the value of your time in trying to manage it manually. You tell me that trying to do that in a spreadsheet isn't going to eat up $20 a month worth of your time. It eats up $20 before you even turn on your computer to do it. **David Putz:** Yeah. **Nathan Turner:** Yeah, and as a note buyer, if I'm looking at, you know.

**Nathan Turner:** two loans, everything else being equal, if I'm looking at a loan history on a spreadsheet versus something that comes from Zimple, man, oh man, that Zimple one is far more interesting to me, because I have so much more confidence in that. **Nathan Turner:** than looking at that spreadsheet, where I know all the troubles that you can have, because I've done them. I've fallen into those same kind of things, and… **Nathan Turner:** You make mistakes, and you don't know what you don't know, and if you're not doing it correctly, that's gonna cost you a lot. **David Putz:** So, I'm gonna double down on that.

If me and Nathan get a note from you, and you're trying to sell it, and you give me a spreadsheet. **David Putz:** The first thing I gotta do is verify with the borrower that they agree to the amount being owed. That's… I gotta! **David Putz:** Because if I don't, and the borrower says. **David Putz:** That's not my debt, I paid off a lot more. And I have no proof, besides a seller or loaner holders **David Putz:** Word, I can go to court and have a real big issue. **David Putz:** And most of the time, the people who created spreadsheets are either taking cash, or they're showing their bank account.

It doesn't work, guys. So, for $23 a month. **David Putz:** It is so simple to switch over here, guys. Why not? Make it easier for yourself, for your borrowers, and everything out there, because you don't want the latter, and again, if you want to sell it, hypothecate. **David Putz:** Or even, you know, leverage it up. **David Putz:** You can't do that with your own books. It just doesn't work. I would love to. I'm a spreadsheet crazy person. **David Putz:** I still don't do that. It doesn't make mind sense, right? **Nathan Turner:** Yeah, no, it makes your loan so much more valuable, so much more.

**Ted T:** No. **Ted T:** Yeah. The one other thing I'll point out, since we're talking about buying and selling loans, is you can transfer notes in our platform as well. So, if you're… if you, Dave, have set up, you know, if you've originated a loan and it's in repayment, and you want to sell it to Nathan, you can transfer it right to our platform. And you'll have, you know, full loan history, they'll already have all of the borrower information in there, and you can, you know, take it from there. **David Putz:** That's wonderful. **David Putz:** So many cool stuff that we just. **Nathan Turner:** Don't have to… **David Putz:** Yay.

**Nathan Turner:** Yeah, and then, and just, again, let's back up a little bit, because you don't… **Nathan Turner:** You guys are the software provider, so you don't care if it's a short-term loan, a long-term loan, you don't care if it's on residential land, you don't care if it's commercial, like, that stuff doesn't matter to you, that's, you know, whoever you are as the loan… **Nathan Turner:** Holder, that's the only person it matters to. **Ted T:** Yeah, so there's a lot of flexibility on our platform. We have folks that are doing commercial, hard money lenders, like we talked about, single-family homes, multifamily homes, undeveloped land.

Undeveloped land's a pretty big category for us, actually. **Ted T:** All sorts of ways. **Nathan Turner:** Very cool. **David Putz:** For no buyers who are interested, is there any way, maybe we should pause the recording here, that we can come to you guys and say, do you guys at all… **David Putz:** those lenders who are looking to possibly sell a note, do you offer note buyers any opportunity to possibly buy notes your lenders may be looking to sell? **Ted T:** I just got goosebumps as you're talking, Dave, so that, that is, on. **David Putz:** Pause, pause, pause! **Ted T:** And that's on our 2026 product roadmap, and something we're actively working on, is bringing sources of capital onto our platform, be that, you know, folks that want to lend money in this space, you know, to our lenders, or ways to, you know, sell off loans to other folks.

**Ted T:** So there's a couple different ways that we can do that. Integrating with different third-party marketplaces is one. Making loans, you know, anonymized but visible to other participants is another thing that we're talking about. So we're, yeah, we're working on our product strategy in that space, but that's definitely something we're gonna do this year. **David Putz:** Okay, awesome. Awesome. **Nathan Turner:** Good. **David Putz:** Well, Nathan, I think we gotta change this word around a little bit. So, Nathan has a final last question that's typically. **Nathan Turner:** Yeah. **David Putz:** Let's… let's see how Nathan, an on-demand can come up with this and adjust it.

**David Putz:** Let me ask you before you ask it, do you get into some of your data on your… on your portfolio of lenders? Do you have an eyeball where things are at in general? **David Putz:** How many… **Nathan Turner:** I don't know how much. **David Putz:** How much do you track that down? How much do you track, yeah. **Ted T:** Good question. You know, we don't do a lot of data analysis on loan performance in our platform. We have looked at it kind of on an ad hoc basis, but it's not critical to our business at this point. That is also on our sort of longer-term product roadmap, is bringing in data analytics and using AI to do some risk-based pricing as well.

We sort of start to cross over **Ted T:** we're into the loan origination space with that. So yeah, not… not yet, but that is something that we're… that we, that we do think about. **David Putz:** Mmm, Nathan, so how are you gonna word this question? **Nathan Turner:** Interesting, indeed, okay. **David Putz:** Everyone, put it in the chat, what question would you ask Ted, right? **David Putz:** So… **Nathan Turner:** Yup. **David Putz:** Can you word this? I mean, because data's a big thing for us, right? If we… one of the things we've talked to some of the servicers is, like, what numbers are you seeing, right? **Ted T:** boom.

**David Putz:** What are the lenders dealing with? How many are in default, right? And, you know, what kind of notes are in default? Or, what are. **Ted T:** Maybe geographically, where are they, right? **David Putz:** You know, and are they, you know, land notes, or are they, you know, what kind of asset are they? So that's a big thing. But you also do some real estate in general. Your history, your background in banking. **David Putz:** You guys have some kind of background in that, do you? **Ted T:** Sure, yeah. Yeah, when I, when I worked for, you know, for a top 10 nationwide mortgage lender, we did data analytics all the time.

And they were one of the first ones to come up with a risk-based pricing engine for pricing out mortgage **Ted T:** mortgage, both on origination and on the securitization side. So I do have some experience in all of that, and I know, you know, what a lot of investors are sort of interested in seeing and why. I think there's a lot of opportunity to add value in our platform with that. We just haven't quite gotten there yet. **Nathan Turner:** Very interesting. So you're… you're looking at… **Nathan Turner:** I mean, a lot of… most of your stuff, I would say, is seller finance, so you're not… you're not generally boarding a lot of bank-originate… excuse me… **Nathan Turner:** One more second.

Of your bank-originated paper, you're mostly seller finance? **Ted T:** Correct, yeah. **Nathan Turner:** Really interesting. So, I mean, you've got that background in the fintech and in banking in general. **Nathan Turner:** So, what's your… **Nathan Turner:** What have you seen, I guess, in the marketplace so far, and where do you see us heading in the next 12, 24 months, in terms of, I mean, performance, in terms of, bank versus residential, or seller finance loans? Like, what kind of trends are you seeing, and where do you see us going? **Ted T:** So, I think that the longer-term macro trend is that banks have gotten more and more and more conservative on who they're going to lend money to.

So that applies across, you know, FICO bands, it applies across collateral, LTV, DTI, you know, all of those different things have kind of gotten tighter and tighter in that credit box, and I think that that isn't going to change anytime soon. That's part of what's driven the big shift to the private **Ted T:** market, and part of what has, I think, been a big tailwind for seller financing, particularly in residential mortgages. **Ted T:** I, I think that, you know, as we look out over the next **Ted T:** you know, 12 to 24 months. You know, it's hard to say what's gonna happen with interest rates.

**Ted T:** You know, your guess is really as good as mine. There's so many different macro factors, and let's just call it an X factor that throws wrenches into the market on a pretty regular basis, that that's… **Ted T:** Hard to predict. I think that if you look across different asset classes, so, you know, auto or consumer credit being one, there's definitely trouble brewing, so delinquency rates have risen in both of those categories. It hasn't really affected, mortgage too much yet. **Ted T:** But I know that a lot of folks are worried about that. **David Putz:** Interesting. Cool. **Nathan Turner:** Well… **David Putz:** Those who are curious, Ted, will you be at the DME this year in May? **Ted T:** Absolutely, yeah, can't wait.

**David Putz:** There we go! **Nathan Turner:** Yeah. **Ted T:** Awesome. So for those who don't know, the DME will be happening early May. **David Putz:** Nitin, do you want to give the announcement for those who may not get your email and your information? **Nathan Turner:** Yeah, so we've got a bunch of really cool things happening this year. We've got, first of all, it's May 1st and 2nd out in Nashville, back to the same hotel we were the last couple years. We really like that space, it's got that awesome atrium, so you can have all these private meetings and get some deals done. **Nathan Turner:** An exciting thing that's happening this year is, crowdfunding lawyers.

They are doing an additional day before we start, so April 30th, Crowdfunding Lawyers is putting on their own kind of event that is going to be combined-ish with, with what we're doing. **Nathan Turner:** But they're talking about not just the structure of raising capital, but, like, the actual how-tos, and, you know, where to go, and how to get it, and **Nathan Turner:** how to market yourself, all those kinds of things, they're gonna be covering that for a full day. It just… in order to do that subject justice. **Nathan Turner:** they needed a whole day to do it, so they, they decided that they wanted to go ahead and put on this extra day.

We're really excited about that, because I think that's going to add a ton of value. Tickets are available both on the DME website and… **Nathan Turner:** I'll find it here, it's the… **Nathan Turner:** He's got his own website going on, summit.crowdfundinglawyers.net. **Nathan Turner:** And that is, another place where you can get tickets as well, and some more information on that. Really exciting stuff, can't wait to see everybody. We've got our head-to-head, conversation. **David Putz:** Yeah! **Nathan Turner:** That's gonna be a lot of fun. **Nathan Turner:** We're pricing out a note, we're gonna price out several notes, actually, that are available for purchase live, so with the people that have them for sale, they said they're gonna bring the collateral and everything, so, like, literally, you can get a deal.

**Nathan Turner:** Right then and there, and. **David Putz:** That's awesome. **Nathan Turner:** Some really cool and fun and exciting things, so make sure you get your tickets, and we'll see you there. **David Putz:** Yeah. **Ted T:** Are we gonna do axe throwing again next week? **Nathan Turner:** Absolutely, you bet. Axe throwing the night before, on the 30th, so make sure you come in time for that. **David Putz:** For those who don't know it, get down there, take a look at it, it's a great, awesome weekend. Business casual dress, be ready with business cards, bring paper business cards, please.

**David Putz:** Digital doesn't work well for writing on, right? **Ted T:** Be ready! **David Putz:** You're gonna be going all day long, but it's a really good networking opportunity and learning opportunity for you, and an opportunity to get deals on the spot. So make sure you get your checkbook ready, so… Well, Ted, thank you so much for joining us, spending time with us. **Ted T:** It's been a real pleasure. **David Putz:** Yeah! **Ted T:** Yeah. **David Putz:** Hang on for after hours, and we'll talk to everyone soon. Guys, we'll see you in a few weeks. Take care. **Ted T:** Alright, take care.

Thanks a lot. Take care..