Module 10 Note Investment Mentoring [10/10]

And we've got Scott, who's one of my students, on the phone tonight. And I'm going to try to get Scott on the call here because you're going to be amazed at this. If I can get Scott here. I don't know if I can or not. Okay. Okay. Okay. Well, Scott is one of our students here, and we're gonna go through three of Scott's deals, and I'll just go ahead and do it myself here. Let me show you. Scott and I met each other about six months ago. And let me show you what Scott has done. Scott bought a pool of notes, five notes, I think, and it's been about six months. Scott's background, just overall, he's done short sales. He's an experienced real estate person. And I'll just say this, he's on it, which is a big part of what it takes. So let me. Let me show you this here. Make this a little bigger here. Okay. Here's his Colorado short sale. Here's what Scott says. This is Scott's writing here. And this is. Once again, Scott is one of our students. He's been with us for about six months. He. He bought a pool of notes, five notes, for about $50,000. I think that's about what it was. But in his Colorado short sale, here's what he says. He says, I received a call from the homeowner in Durango, Colorado about his loan on his property. He wanted to know if we would agree to a low buyout price on our loan. I gave him a couple of offers, but we were unable to get a deal done as he basically did not have much cash on hand. So after 30 days or so goes by and no further communications, I decided to look up his house on Google. As he is no longer communicating with me by phone or email, I was surprised to find his house on the active market for sale, listed as a short sale. I called the listing agent and asked about the house and he told me that it was already sold. Very surprised. I told the listing agent that I hold the second note on the house and asked how come nobody contacted me in regards to this note. To this now sold short sale. Eventually, I received some paperwork on the sale, and with a couple of changes to the real estate commission and utilities that they wanted us to pay, we agreed to the sale. The property closes this Friday. This was a good note, as I may have a total of five hours work into this one. The numbers for the Colorado short sale Note are purchase price 15,255. That's what he paid for the note Short sale proceeds after the sale $46,500 profit 31,254 now if I'm correct, Scott paid $50,000 for the entire pool and he's got most of that back with four notes to go. Let me go to note two. This is a California note as he calls it. And let me see this one here. Make it a little bigger here. The California note says Rebecca in California responded to our shock and awe package the same day she received it, stating that she wanted to stay in her house. We offered to help and send her the following 1 modify the loan, removing all the interest and late fees, but keeping the principal amount of $38,320 in place and extend out the loan to 30 years at 2.5%. The next proposal was to offer her a reduced payout number of $29,250 cash. We also agreed to administer a short sale if that was of any interest, as this loan has great equity. Rebecca responded back almost immediately stating that she would start to make monthly payments of $151.41. We have since received back a signed forbearance letter from her. The first payment starts on October 1, 2012. The homeowner is also owed a large sum of money from her ex husband and may in turn buy the note at the agreed price of $29,250 in the near future. The numbers for the California note are as follows. Purchase price 5979. That's what he paid for the note agreed to loan amount of full value 38,320 with monthly payments of 151.41 starting October 1st. So the borrower agreed to a full value of the loan and the exit strategy is also to get the note performing and sell within the next year or or look for buyout from ex husband. That's his California note and we've got one more here right here. Make this one a little bit bigger. Colorado Reperforming Note A couple of days after we sent over our Shock and Awe package to Deb in Colorado, she called and stated she was relieved to finally find out who owns the second loan on her house. She also went on to say she really did not have much cash but really wanted to stay in her house. A separation from her husband had put her in debt, but she was very confident the future was going to be better than the past. After we reviewed her financial information, we sent her a list of options that included a buyout figure for the loan and a monthly payment number for a new loan with a lower interest rate. Listed below is her response to our options letter that we sent Mr. White. I would like to do the 253.28 per month at 4.5% option beginning October 1, 2012. I also need to ask if you would be possible to double up payments on my loan when I am at my peak season to cover January, February, March payments. Thank you. Best deb numbers for this Colorado loan purchase price 9311 agreed to the loan amount full value of 49,987 with monthly payments for 30 years of 253.28. First payment to start October 1st. Exit strategy will be to sell the note in eight months to a year, value unknown. So he's created a strong reperformer here, let it season a bit and take it from there. So I tell you, Scott is my hero here. He's actually stepped right up and taken this forward and been very successful. So there's two other notes that he's also working on and that is, I think, just a great story. So what I want to do now is kind of talk about the future here. What we're going to do is this. On the 26th, which is a few weeks from now, we're going to have what I'm going to call a pro bono coaching call. Because the real beauty of this business is the creative, the workout strategies. And I know some of you, like Scott, have got notes and are working at them in different stages. Some of you are still in the buying process or some of you are still in the brand new status or analyzing things. But the real once you understand the concepts that we've gone through in detail and the paperwork and this business and the people, then it's a matter of saying, okay, you know, how do I look at this one? Or what's the unique things about this one? Or how would you approach this one? It's kind of fun. And what I want to do is kind of bring the group together and not have me with this, with this monologue. But basically have people come on the call, introduce themselves, talk about, you know, who they are, where they come from, how they found out about this course, what their plans are with the course, what their goals are and kind of do a little interaction thing because I've heard some feedback where people said, you know, this has been great, but I'd like to meet the other people. And there is huge value in a group, in a group setting and the people that you meet. So tonight is the culmination of the whole thing. But if there's an interest in that, email me, let me know. I will set up the meeting for the 26th, and we'll have that meeting. And if nobody wants to do that, that's fine, too. You won't hurt my feelings. But I hope you guys have had as much fun with this whole thing as I've had. I've had a great time doing this. It's been a great experience, and I get inspired by people like Scott and other people that are taking this business to the next level and being successful with it. So with that, I'm going to sign off. I once again appreciate everybody's participation in this course. It's been a pleasure and best of luck to you all.