10 Tips for Raising Private Money for Real Estate Note Deals [Distressed Pro Podcast]

Welcome to another episode in the distressedpro.com Professional podcast series where we bring you actionable information from successful professionals on the front lines of today's real estate market. Go now to www.distressedpro.com mini to get your free 14 part course where you'll learn what the pros already know about how to source today's best REO and note deals.

And now, here's our show. Hey, this is breck palumbo from distressedpro.com and what you're about to listen to is an audio version, a full webinar that Scott Carson and I did from. He's from weclosenotes.com and we did it in sort of impromptu fashion in a flash, but we had a lot of fun doing it. And we got to tap into Scott's ideas and practices around how he raises private money to do his deals. At the time of this call, you'll find out that he is just wrapping up closing about a dozen notes and he had an offer in on 13 more that day and so he's been hard to catch up with. So I was very happy to get him on the call. I hope that you find this worthwhile. What I want to point out is if you're a paying member, then inside distresspro.com you get the full webinar. Not only that, you get the extracted points which we've pulled out into a worksheet. And on top of that, what we're going to do for our subscribers is over the next month or so we're going to focus in on a handful of the key points out of these top 10 and we're going to do a deep dive on them and give you you real instruction with video and action steps and that sort of stuff that you can take right now if you're looking to get out there and generate some money, some private money to do your deals. If you're in the business right now, you got to know that the demand for returns from money is significantly higher than the product that's available. If you don't know what I mean, then maybe you're not out there pounding the pavement yet. But, but that's a fact. There's a lot of money looking for a return and I hear about this from people every single day. Hopefully these tips are going to help you to go and capture some of that so you can get your deals done. So here we go again. If you're a premium subscriber, go onto our training page. You can get the full video webinar there and you can look forward to our action sets and the upcoming videos where we dive into the most important of the top 10 tips. Thanks a lot. I was talking to Scott. Scott and I have been going back and forth. He's a very hard man to nail down. You're always on the move. You're in Florida, you're in Texas, you're in California. Where else have you been?

Chicago, Albuquerque, New Mexico, Northern California, Arizona, Las Vegas, Nevada. I'm on the road about 35 to 40 weeks out of the year.

And what are you doing?

I'm doing a variety of things. First thing I'm doing a lot of is I'm working with a lot of my one on one coaching students.

Yep.

Where I'm putting time with them in their market, doing deals, buying notes. You know, I'm also speaking a lot of investment clubs across the country because note buying is so hot. Yep. Third thing I'm doing, I'm actually just traveling, having a lot of fun to taking time to kind of check off things off my bucket list at a young age.

Nice.

And just having a blast right now. That's cool. So now's the time to travel. Yep.

Yep, it is. I can tell you with I have a third one on the way. Now is not the time to travel for me. So. Yeah, thanks. So get her done, you know, get her done now while you can.

You are getting her done.

Oh boy. Well, that's all right. Let's take a turn from there and talk about doing deals for a minute. You know, a couple of weeks ago I blasted out an email and I wanted to really talk to folks, find out, you know, I hear about a lot of frustrations. I hear about some successes. People call me more and email me more about frustrations than they do successes. So I really wanted to find out like what's the deal? You know, where's the pain at? And people came back and overwhelmingly it was finding deals where they could make some money. And but even more than that was finding financing for their deals. And so I know this has been a major challenge for a lot of folks. And so when I knew that I had you for just a few minutes and I know that you've been just cranking on deals. Can you tell us just a little bit about what you've been up to for the last month or so transaction wise?

Yeah, basically there was a period, I'd say that there was period here in the market where things were a little low for about four weeks, four to five weeks slow. There wasn't really a lot of Information out there out of the banks and hedge funds were just hold on. Stuff. But it's been absolutely overwhelming lately in the last month of stuff coming in.

Back to school time. I mean, I don't know about for you historically, but for us on the auction side, in August, it's dead. You know, everybody's on vacation and nobody cares. So I mean, that's kind of the.

Same way around for July. July was, was slow. But everything started to peak up as banks and hedge funds getting ready for the fourth quarter of the year. Just, I mean, the last, you know, I spent an offer yesterday in A pool of 13 notes that it accepted today. Single family condos in Florida, several hedge funds that are sold me, golly, at least another dozen notes, 12 to 15 notes individually that in the last month that I've closed on, all using private funding, all finding funding, not none of my own funds on that stuff. I've had banks come back that we made offers on notes six months ago, come back and say, hey, is your offer still good? We'd like to review it. I've had trustees for banks call me, hey, Scott, you closed on this note deal on this apartment complex, this, you know, in December. We've got three other deals that could be note deals. Are you interested in buying them? So it's just little people are really starting to move stuff right now, guys. It's just, it's absolutely crazy. And my friends laugh at me because it seems like I'm running around like a chicken, my head cut off because I'm never in one place at one time. But I'm. It's never, never have time to stop and kind of relax a little bit. And even when I'm out having fun, I'm on my phone getting things happening. But now's the time if ever there's ever been an opportunity, guys, for you to be out. And I understand people's frustration and stuff. And yeah, it takes some time. You have to build contacts and build relations. But my God, there's so much stuff available right now. And understand people having a hard time finding funding, but honestly, everybody struggles with that at first. When you're a new investor, no matter what you're doing, and especially if you're new to notes, it's a little bit different animal. But honestly, guys, there's so much cash out there, so much people are looking for deals. You talked about the foreclosure markets just a minute ago. You look at markets like Nevada where the foreclosure auctions went from like a thousand in every Every day, every week down to 100 or so. Every day or so. Or other areas of the country where the whole county of reos is being bought up by one investor. You know?

Yeah.

Notes is really the way to be going, guys, because you're avoiding your six to 12 months out before the foreclosure auction in a lot of states. Right, so. Right.

Hey, I just noticed you totally butchered my name, but I'm gonna let you get away with it because we only decided to do this a few minutes ago.

How do you spell it wrong?

It's P, A, L, O, M, B, O. But that's quite. All right.

Well, so you know what? That's a good sign. You don't have to be a good speller in this business to get things done.

Yeah, I believe it. So. Well, so let's get into it. And people came here for, in a flash, this flash webinar, which I. We've never done before, but it just seemed like the thing to do if we were going to be talking about it, then why not take an extra few minutes, put together a slide, and share it with some folks? And I appreciate you doing that. So let's jump in there and, you know, lay it on them.

Let's. Let's just lay it on it. Those guys are gonna call. Appreciate taking time as a last man, but, yeah, as Brett did, he called me up. Let's just knock it out and put a quick slide together, see how many people jump on to have a little fun this afternoon. So it's all about kind of finding the deals. And honestly, I put together this top 10 list, the top 10 ways to find Ben and his friends. And I've been. I mean, Benjamin Franklin. Okay. We're talking cash. And his friends are obviously Grants, Hamilton, Jackson. Hopefully you're getting more than that, A lot of those together, whether you're a David Letterman fan or a Wayne's World fan, which is more my speed. The top 10 list we're going through, we're gonna have a little fun with this afternoon. But honestly, guys, take a lot of notes. If you got your phone on. On ringer, turn it off, grab a piece of paper because you're gonna want to write stuff down. And, Brett, you're gonna record this and say this for other people as well if they needed to listen to it again.

Yeah, I'm working hard right now to make sure we're doing this right. So, yes, hopefully we will be.

All right. Perfect. But anyway, kind of the top 10 list for you. It starts off this way. And it's just kind of things that I've used over the last couple years a lot recently helped me find. I'm always prospecting. You may have heard, you know, story ABC always be closing. Well, I'm always prospecting. I'm always looking for new investors to help me fund deals in different ways. I think you guys get a lot about today's top 10 list. But let's start with top 10. Number 10. The first thing I say is it comes out to. You have to have a mental change. Okay, and on the left there, you see a picture of Ben Affleck. Well, honestly, that's a picture from the movie called Boiler Room. And one of my favorite movies talks about Wall street and how he says, act as if you know your $12 is a $200 suit. Act as if you've been in business for years. Act as if you know what you're doing. That's going to come across more so than anything. Have a little confidence in yourself versus being like the guy on the right. I just can't do this. It's something new. I can't do it. I'm a big crybaby. Okay, you got the mental aspect that you actually, when you're out looking for money, you've got to have the belief that you've got an actual deal. You know, hey, I know what I'm doing. I'm not going to put you in a bad deal. I have belief in myself and I think that's the best. The number one overall thing, you've got to have belief. And the biggest distracting and the biggest hurdle that we face as new investors, I call it as a 4 inch hurdle. And I mean by the 4 inch hurdle, it's the 4 inches between your ears. You have to believe in yourself. You have to be educated, of course, know what you're talking about, but you also have to believe. You have to open your mouth and talk about that. You know, what you believe and believe is total. People can tell if you don't believe in yourself. And you know, sometimes we've all done different things that beat down this, but right now, guys, you're in the best market out there. And there are so many people out there that can help you evaluate great deals and find good deals and stuff like that. But if you've got a great deal, believe it. Oh, my God, this is the best deal of the century versus being like the guy that just kind of lays down and gives up before we get started. So you're gonna have to take action. That's the biggest thing about this. You know, if you're gonna be successful at finding notes, finding cash and stuff like that, you're gonna have to do some stuff. You can do several things to be successful. You just can't sit there, you know, and expect it to come. And you got to get out and do something. But basically, number 10 is acting as if you've been doing it. That's the biggest thing that I can't. I can say right there. Number 10, right there.

How long did it take? How long did it take you to get to that spot, Scott, where you. What did it take for you to be acting with confidence?

I don't know. If somebody asked somebody, you're saying it. I hear my assistant laughing because she calls me cocky. I think it just comes with time. And honestly, it depends on what you've done. I mean, I've been. I'm an extrovert by nature, so I'm not afraid to jump into anything. You know, it's just a matter of you close the deal. When you close your first deal, no matter what it is, hey, you're gonna have confidence. I think that's the biggest thing. Once you get a check, especially what I call a comma check. A check that's got a comma on it, comma in it, you know, sure. It just takes time. I mean, anything new is gonna take time. For you guys, I think the more educated you are, the better you can speak it and go from there. But the idea is you don't want to be just a professional idiot or an educated idiot that doesn't do anything. You want to be somebody that takes action. And we'll get to that later on. The next one is finding fun. You gotta kind of have an idea. You gotta build a team around you. A good team will help you find more money than you can ever do yourself. And that's, you know, picture there, the dream team on the left hand side, and you look at the best player. That team was Michael Jordan, okay? Now, Michael Jordan, if he was like Zach Galifian, Atticus and was just a lone wolf playing best, playing five on one, he would never want a game, okay? He got out and shot more shots than anybody else did. Make him successful, okay? That's what made all those guys successful. They took a lot of shots. Well, it's the same thing with you guys as investors. You have to get out together and put a team together around you. What I mean by a team, you need to get title company, you need real estate agents, commercial agents. You need Hard money lenders. Okay, you need to get out and talk to those people and tell them what you're doing so they can help you take more shots. They can pass you the ball. Title companies is one of the best ways to find funding out there. Every title company I've ever walked into, and I told them, hey, listen, we're funding, we're closing deals. Do you have a couple people that are looking to lend money? Are there closing deals that you'd mind referring us to? And nine times out of 10, those pull out a paper, write down a person's names, phone numbers, or they'll make the introductions for you versus you being like Zach out there. That is kind of a funny guy, but he takes people to be around him to make him make them funny. Alone, he's kind of annoying. Okay, you don't want to be the Zach out there and the lone wolf. You want a wolf pack, right? You know, doing nothing and expect something. Sorry, go ahead.

No, no, I don't mean to be talking over you, and I apologize for that. So you'll go to title companies that you're doing work with or that you've networked with or whatever. You'll ask them who they know that are investors that'll invest in debt or invest in notes. Is that your plan?

People have money sitting on the sidelines. I don't let them make the. I don't differentiate. Hey, who's got money that you know, it's investing? And I talk not only the title companies. I talk to real estate attorneys, real estate agents, commercial agents, anybody around me, I want a team of refers. And that's the biggest thing. You're talking to people that are all professionals in the real estate industry because they know people. Yeah. So that's what it comes down to. You guys put a team, surround yourself to help you really find things. That's. I mean, that's the easiest thing if you want to fool from somebody else. That's awesome.

If I was a title company, if I worked at a title company and you were talking to me, you know, we're networking, what would you say to me?

I'd be like, hey, Bright, listen, I'm buying a lot of REOs, or I'm doing a lot of note purchasing. You know, I'm looking to close more business here with you. I mean, that's the biggest key. I want you to be my attorney or I want you to help me close. Bring. Bring this title business to you. Who do you know who spun it deals with you recently? Who's Got money to lend on. Yeah. So as I can maybe get them involved and we can close more deals with you. Right, right.

W. Right, exactly.

Exactly. Yeah. And never assume that somebody doesn't know anybody. Always assume if somebody knows somebody. That's one of the biggest thing when you're building a team is you got to assume people are nailed things. And they do. Okay, cool. So, all right, next one is finding the cheddar. You know, you did network a lot besides just having them same and talking to professionals. You have to literally get out and talk to people. On the left hand side there, you've got some of the two things I used to really network a lot. Meetup Calm. I use that to find real estate investment clubs across the country. That's a great source. I mean, it's free. You can online and you be networked in. Yeah. I'll give you an example. I was looking to move a note in Charlotte. I got online and found three investment clubs that had over 300 members each or roughly about a thousand investors. Within five minutes I was able to post to the websites. I was actually able to network with those on the message board. Email out to help me find deals or find funding for that. You know, there's other things, different conventions. Not worthy is a great convention that's coming up. That's a great place to network. You don't want to be the guy at home on a Monday, Tuesday, Wednesday, Thursday, Friday night, not doing anything. Right. Okay. Get out of your house and go down to your local investment club. Most of the big major cities have two or three to choose from. It's one night out of your week. Okay. You've got your spouse, take her girlfriend, take her. Okay. Gives you a reason to get out. If anything gets a reason to get out of the house, get you some room. You maybe have a little night alone. Okay. Don't be a homebody. You're not going to be able to do anything. But you got to get out and talk to people in network. And honestly, people networking takes a while to do. It's not going to happen overnight. It takes a good probably three to six months of you showing up consistently to events realistically for people to really start to like and trust you. Yeah. And see that you're serious. But this is something I do monthly when I travel. I, you know, I attend investment clubs all across the country just to network, just to see who's doing stuff. And I always get to talk about the deals I'm doing. And it's a great way for a lot of people. A lot of new investors will 10 clubs, especially right now, to get to the end of the year, in the first of the year, you're gonna want to definitely show because a lot of investors are start looking at their goals or people like, I gotta do some my money. My 401k is a 101k. I got to do something with it. So they start looking to invest and they start showing up. And those are the quiet people. And if you've been showing up two or three times, four or five times talking about deals, those investors will actually approach you. But if you're at home, there's no way for you to be approached. Number seven I have on here is you got to get online and quit being computer scared. You know, you got to get out. And I do a lot of stuff on my social media through Facebook and LinkedIn. You know, Facebook has the social words, you know, your personal stuff. You can also put business pages on there. LinkedIn is a. I'd say it's like a business, you know, resume, business networking event. You, if you're not talking about business, you're not really a fish out of water in there. But the two biggest things on these guys is you got to get on there regularly and talk about things. You can join investment groups also and talk about deals. You can create flyers to postlets and post on there. These are just a couple of the social media websites out there. The two most popular really. But you can't be like the guy on the right. I can tell you one of the biggest things I see when I tell people, hey, go join these websites. Create your profile is people are scared because they've never done it before. And I don't understand that. Why we as adults are scared to try new things. Us as kids, heck, we're willing to try anything. We're willing to stick a bug in our nose or a rock in our ear or touch a hot stove two or three times.

That's true. You know, I see. I think a lot of times people get concerned about kind of putting it out there and getting judged or, you know, people finding them or whatever, but, you know, or, I don't know, them being exposed. But I got to tell you that, you know, content strategy, like putting out, you know, stuff that people care about, want to talk about, want to share and that kind of thing. It's really been huge for my business. I am contacted, you know, emails, phones, you know, whatever. Every day, multiple times a day, every day. People like, I have this deal or I have this need Or. Or whatever else. So I think you're right on about that. But you can't just go in there and, you know, set up a profile, you know, walk away. Doesn't exactly work.

Doesn't work like you got to be on it. I mean, I'm on LinkedIn, you know, probably at least combine an hour to two hours every day, just kind of reviewing things. One, it's a great way to build my investors in my buyers list or sellers, because I'll see that there's different note investment clubs or just property owners. There's people advertising funding, there's people advertising tools and notes. It's a great way to do business. Now, it's just one way. You don't want that to be your solely sole force. Right. Because I know people that have gotten trapped in. Oh, I just use LinkedIn. Well, LinkedIn wants. Nice. You know, you've got to use other things to do things as well, help you find stuff, you know. Yeah, but you can't, like I said. Well, I. Like you said, you just can't create a profile, never log on, ever use it. You got to log in regularly. You've got to post things that are relevant to what you're looking for. Right. You know, but it's a great. Especially LinkedIn is a great way to contact. I know you use this with asset managers. A great way to find note buyers, note investors as well. Yeah.

And you got to bring something of value so that people pay attention to you. If you're just in there shouting about what you want or whatever, it doesn't really work like that. You need to provide.

You've got to bring some of the table, whether it's a buyer, seller, and kind of go from there. Tell people you're looking for. Yeah, I'm looking for notes in Detroit or, you know, Zimbabwe or whatever you're looking for.

We're talking about finding money, though. Have you found or connected with folks with money there?

Oh, yeah, completely. There's people out there that see that I have deals. Yeah. And they're like. Or see the deal that I advertise and I'll even post. Hey, I'm looking for a joint venture partner on here, right. For this deal. People contact me. Oh, hey, I've got some funding. I'm interested in this deal. What can I do? What do you get involved? Yeah. And they're good to go. And they're gonna look at your profile. So make sure your profile is set up on your resume. Have stuff on there that's relevant to what you're doing. I mean you don't have one or two lines. You don't want to put a picture of you in your bathing suit. Okay, guys, leave the string bikini off your profile.

I think that's a personal decision, Scott. You know, I don't, I don't think, I just, I wouldn't rule that out across the board. We don't know who's listening. There may be some people who should maybe have the.

You know what the finer people maybe should do that. A lot of it. A lot of friend requests. Hey, use what works. I'll give you. Now that we're talking out there, I use ads on Facebook and LinkedIn. I also, you know, I've running ads for people to click on my website and stuff like that. And I use pictures, I use attractive pictures. But the funny thing is I'm friends with Carl White who does a big bunch of stuff on social media. Yeah. And he said, he goes, put a picture of attractive woman, show a little cleavage. Because he posted one thing targeting both men and women. Yeah. And based on all the. Even put an attractive man on there he goes. The women clicked on the women's picture more than they clicked on the men's picture.

Yeah, no, that's true. I've seen actual studies with that kind of thing and over the last couple of months I actually did some, you know, I didn't do the cleavage work. Maybe I should have. But I did do a bunch of LinkedIn paper.

Click.

And I gotta tell you, I got, I got like over 800, you know, new opt ins and leads over in a month. So. Yeah, it's really a pretty reasonable thing to do and you just gotta, you know, you gotta be offering the right thing. So maybe at some point I'll, I'll talk about how I did. Let's go on to.

Let's get back to fun. Let's get back on track versus talking about cleavage.

Yeah, exactly. Yes, it's very inappropriate.

That might take us back to whole funding.

I'm going to get some hate mail for sure. Okay.

Hey, just email to me. It's my fault. I think it's mine. Number six, perception is reality, guys. And I put a picture of Country Time Lemonade up here in the lemonade. Standing here because you want to have your business be a business. You want to work it like a business. Okay. You can't work it like a hobby worth an hour or two every week. You know, what do these pictures have in common? Well, the bill selling lemonade. Okay. And they're selling it for about the same amount, you buy a little package of Country Fine lemonade. It's about a quarter to 50 cents per thing of glass of lemonade. Country time is just. They treat like a business. The lemonade stands more of a hobby. What does your no business look like? Okay. What does it look like to the public? Do you have a website? Do you show up? Do you have a llc? I see a lot of people that. Oh yeah, I don't even have an LLC set up, you know, or a DBA even in the worst case. So you should think about that. How does your business look like to the public? I don't like everybody else. Right. Because really, if it looks shoddy, it is shoddy. Right. Okay.

Yeah, you got the GoDaddy waiting page, you know, or whatever. You know, this, this park page.

Exactly.

All the time, you know, you just.

Email, you know, butterfly 2345 at, you know, well dot com.

Right.

You know.

Yeah, don't do that.

Keep that in mind, guys. I mean, don't get me wrong, you don't need a website to do this business. I did a lot of notes my first year and half of that old website. Yeah, I use one Scott Carson@gmail.com as my email for a while. I still use that in some different cases. But honestly, start investing in your business with some things, business cards. A website's not that expensive to do. Not like it used to be. It's pretty easy to design. And yeah, even just getting email addresses, I can do that in like 10, 20 minutes on GoDaddy or something.

So a phone number that your kids won't answer?

That's correct. Maybe a 1, 800 number. Yeah, exactly. Hello? Daddy's not here right now. Yeah, great.

I was going to just invest some money with him. Now I'm thinking maybe.

Yeah, exactly. Now those kids have Roth IRAs or covered in IRAs. Different story. But anyway, that's kind of six. Perception is reality, guys. Number five, this comes with everything. You have to take action. Now. If somebody talks to you and says that they're interested in investing calm today, don't wait till tomorrow, don't wait till next week. If you're at a Christmas party or at a networking event, somebody says, damn, I got laid off. Do you know anybody that I could move my money into an IRA with or something like that? Or here's what we talk about that. Take action now. Say something now, because otherwise you can turn around and take action and that ship has sailed. Long ago, they either invested that money somewhere else or somebody Else has got them taking that money and doing something or they change their mind on things. You have to take action right now, guys, when people. When you start talking to people or doing something, if you sit around and wait, you might as well do something else, okay? Because your ship isn't going to come in. Your ship is sailed, all right? And I can't stress enough. I talk to people. Well, wait till tomorrow. Do it. No, you've got two hours today. Do it today. Well, I'll get to it next week. No, do it now. It Only takes you 5 minutes to pick up the phone and talk to somebody. Or it takes five minutes to answer that, you know, phone call or, you know, go meet that person. You know, don't wait. The biggest thing I see, I'm always amazed is when people call. People do a marketing aspect, and they get a bunch of leads. People call or respond, and they never call them back. Oh, I was too busy. I had to go to a seminar next week. Well, this week. Well, you got a phone in the hotel. You've got Internet at the hotel. Make the phone calls. There's, you know, do it now. That's all I can say. That's one of my biggest pet peeves. I think that's the biggest thing. If you take more action, your confidence is going to build and you'll be able to go back to, like, number 10. Act as if you sit around and wait, your confidence and the voices in your head are going to get you down, and you may never take action. Step off that dock. So anything you want to add to that, Brett? No.

I mean, I think analysis paralysis is sort of a. It's pervasive, and it can be crippling. I see a lot of people who talk about wanting to do something, and they actually do have the knowledge, and they're just not executing and that, you know. You know, you're not getting anywhere like that.

Exactly. Most of the people that go to investment clubs, 99% smarter when it comes to real estate than most people, than most realtors. Sure. And I'm always interested in people that attend all these classes, but they never do a deal. Right. You know, they just. They just don't take action. They're professional educators. Like going to brain surgery, becoming a brains when you go through 12 years of school and then never getting a job as a doctor. Yeah, yeah.

You got to cut that head open analogy.

That is. But we'll come up with one. Number five is focus on your warm market. At first, I've used different email software systems to blast out to my warm market like my friends, family contacts. That's the biggest thing when you get started is you got to get the word out of what you're doing people. I use mailchimp. I like mailchimp. If you're getting started, it's a great service to use, you know, you know, then it cost you 2000 contacts track all your marketing. I'll do autoresponders for you. People opt in, you gotta use something. I contact, constant contact. I've used it in the past. They're not really realtor or I'm sorry, real estate investor friendly. You can't be a double oh seven in this business. You got to get the word out to your people. That's why I say your warm market. Send an email out talking about, hey, this is what I'm doing. Here's deal that I'm working on. Big point here on this guys is when you send an email out, don't suffer from diarrhea of the mouth. Don't throw up on them. Just do a little, you know, newsletter once a week or once a month talking about what deals you're working on and what it is. And be indirect. Don't say hey, hey Scott, or hey Brett, you got 50 grand to invest with, you know, unless that person's company said, hey, I got the grand, right? You know, you wouldn't say that. You say, hey, I've got a deal. Do you know if you're interested or knowing. But it's interested. Okay, but you get the word out via email. Some form or fashion, some software service that you can actually track to see who actually opens it up and what kind of your hit rate is that will help you actually. Amazing. I mean this is the biggest thing I always see people that suffer with us, they won't send it out or they send it out to people that only know they have money and they end up missing so much money because we all know, you know, what is they. The Average person has 300 to a thousand people. If you send it out to your database, you know, a thousand people, they're going to become referrals, they're going to become part of your team for those that care. One thing I want to add to this 5, maybe 5B is if you've got a stack of business cards, networking and never put those names and phone numbers and emails into a sprint into your outlook or anything like that. Shame on you. You should take the time to dust the letters off. I mean that's the, you know, that's the Dust off those cards and put them in a spreadsheets so you can upload them to something, make them usable. Because otherwise, if you're just stacking business cards, all you're doing is basically making sure that that 2 by 3 inch spot on your dresser drawer never gets any dust. Right?

Okay, a couple of things, just some on that, right? They say that you've got to hear or somebody has to be exposed to your message seven times before they're going to act. And that's really what the email thing is all about. And that's what it is about going on LinkedIn or wherever you're going to get some leads or you're meeting, you know, people and then you're in person, you know, heaven forbid, and then, you know, coming home and being in contact with them regularly because they might not have the ability to invest right now. They might not know somebody who's talking about doing it right now. And that's why they need the light touch. Whether it's weekly or monthly or whatever it is, where they, they hear from you again, they hear from you again. They go, oh boy, this person really is for real. They're really in this business. And you know, now all of a sudden, a few months later, they're somewhere else and they've met somebody who does have some money in your top of mind because you've been there or maybe they've come into some money or whatever the circumstance is. But, but there's a life cycle, there's sort of a gestation period to a lot of leads. And the way that the email helps you manage that is that you don't have to be, you don't have to be calling them, you know, all the time. You just drop the email in there, they know you, they like you, they trust you over time and you're offering, you know, something that's valuable. You can't just be bugging them with nonsense and then, you know, sooner or later you do some business with them.

Yeah, you also, one of the biggest things, you can't be bugging them, unfortunately. There's a lot of people out there that have bounced from one thing to another. I mean, they're serial bouncers. Whether they're doing something with MLM where they're selling soap one week and then vitamins the next, and then selling energy or whatever, right? You hit your friends up, you may have burned those bridges and that's why even sending an instant mail out and sticking to it and repeating that is maybe more important, maybe you slightly burn the bridge with your friends because they realize, hey, this guy or gal can't stick to anything. But if you send out messages and you do it for a few months, like, okay, he or she is actually serious about this, I'll take more notice now. And that's the thing. I can just stick with it. It may or may not get anything at first, but if you're going to stick to it, it will build results. And I can tell you with every email that I send out to my database on deals, it yield results. And you know, you're not going to get 100% open rate unless you only send it to one person.

Pretty much. Maybe. No.

Yeah, exactly. If you send it to a decent list, you get a couple hundred names or thousand names or whatever. Expect about an 18 to 20% open rate. Yeah. Actually read the email and about a 4% click rate. So if you've got a website or something on there, they're going to, you know, 4% of that hundred. So 4 out of 100, probably gonna click on the link and actually look at it for you. So something to keep in mind for you guys.

And then it's about just growing that list and some regular communication so that they know what you're doing, what you're up to and how you can help.

Exactly. And a lot of people ask me, they're like, what do I put on there? Well, put a blog link, say, hey, I found this blog useful. You don't have to be. I know a lot of successful investors that have never written a blog to be in their life. They use other people's blogs. Sure. Investors are glad to, hey, get my word out. I'm glad. As long as you give me credit for what I'm writing, I'm glad to let you use my blog or whatever or my deal that I'm posting. So you don't have to be Edgar Allan Poe to be successful.

Was he? I guess so.

Okay. Okay, thanks. Well, number four, now maybe you do want to consider becoming Edgar Allen Poe. Okay. You want to make it not about them, make it about you. I mean, you want to make it exactly about you guys. Okay. Use two things. And this is what I say. As you start doing deals and starting building momentum, the more you talk about it, the better. I'm always convinced when I go to investment clubs and people don't get up and talk about deals as I'm networking, oh, hey, I just closed this deal, so why don't you get up in front of the club and talk about it? That builds confidence. That builds not only confidence in yourself, but respect among the other members. But also it gives people hope. It gets new members that show up on a regular basis. Oh hey, this can be done. I can do that. I want to learn more about what you're doing. And using a blog like HubPages or WordPress to write those type of deals that gives you basically two things. Not only does it do the same thing where you're able to talk about what you're doing, but it basically becomes a 24 hour testimonial for you. It becomes a 24 hour webpage, 24 hour market where people can actually read your blogs and see the deal that you're doing. Same Thing on YouTube. Take the time to go buy it or use your smartphone or buy a $50 flip camera from Best Buy to go out and record a deal, just do have it turn on you and talk about the hey, I'm in front of this house, I just flipped it. You know, it's a note deal I'm working on or it's a property that bought that I, you know, I bought it for this, I put 10 grand into it and then I sold it for this. Here's what it looks like. People love that. Oh Yeah, I got 200 plus videos on YouTube and really between my blogs and YouTube those are the number one ways that I actually raise a lot of money outside of having personal relationships with banks. It's from YouTube and honestly we have enough hub page blogs, enough blogs and videos, they will actually pay you after a while. You become with analytics and stuff like that. I actually make money off the YouTube and hub pages on a monthly basis. I get a couple hundred dollar check from both each month.

So, so the deals that you're doing right now that you're closing, where did you source those investors?

Let's see, a couple of them came from speaking and investment club. Yeah, a couple of them came from just me on my email blast I said hey, I've got deals I'm looking for joint venture partners on. People email me hard today I've got money. Yeah. And then I've got another couple people that hey Scott, I followed you on YouTube. I see the deals that you did here, my backyard or wherever it is. Yeah, I've got some money to do some deals with. So it's come honestly the source money has come from everything I've mentioned in here. But honestly these are probably the two biggest areas over the last six months because of the content that put into it. Right. The work is done into this stuff is Paid tenfold. I mean exponentially. I mean I didn't cost me hardly anything. A little bit time to write and film this stuff. And it's just I get deals. I get funding from these just about every day.

Yeah, I've noticed you've been really prolific with the videos. And they're good, you know, they show real people, you know, and real deals and whatnot. And I, you know, I've definitely been watching you over there. I've been paying attention.

I appreciate. I mean, you don't be professional. I mean, I'm not by far MTV or you know, anything like that. But I'll tell you what, actually, it's funny. I actually turned down a reality show recently. Oh yeah, That's a group come to me there. Oh, what is it? Property flippers or something like that? But they came to me, asked me since I see, do you invest in Charlotte? Would you like to be on a reality show in Charlotte? And it been following my YouTube videos. Wow. Yeah, I think, well, I don't live in Charlotte and I don't go to the foreclosure auctions in Charlotte. Actually do notes there. It wouldn't work for what you're looking for. And so I'd actually turned them down. But it was kind of funny. I felt it was an honor. But you never know what you'll get. People will call you up all the time that hey, I got bill in your backyard. Are you interested or hearing and such. No. That's pretty funny lately.

That's cool.

Number three. This is a little outside the box, but it works well. Drink the Kool Aid. We talk about networking real estate wise. Well, sometimes my friends actually crack up at me because I will find investors usually wherever I end up going. Yeah. One of my favorite things to do is I like to go to different vineyards, breweries. Yeah. I like to travel, have fun and really be. If you go to like different wine clubs, every big city usually has a wine club. Okay. That you know, if you don't, you know, if you show up to these people usually have money, wine can it be expensive. And a lot of people that have invest in wine are usually investors of some sort. Right. And now you don't want to go in there and bash them in the head. I'm looking for a deal, just network with people like you would anything else. But what's funny, I was in Santa Barbara about three weeks ago and had a Friday off and so I went on a wine tour of the Santa Barbara and that's where the movie Sideways was filmed. Okay. And I'm on a private tour. I'm assistant. Along with me, the tour guide picks this up. There's another couple. There's a couple in the car. One of them is an SEC attorney. Wow. Out of Florida, police from the day, just laughing, talking. But that happens a lot. You know, you get talking to people ask you what you do in real estate is sexy. Okay. Yeah, everybody loves real estate investors. You know, they want, oh, they want to be one. They love to watch those shows, but they just have the brass to basically become one. So if you get out and talk to people, people, wine livens people up a little bit, loosen them up, they have a good time. You know, usually you bring a bottle of use it and cost much. But this is kind of outside the box now. I'm not, you know, posting you want to be, have a designated driver and be responsible 21 and over to go to these things. But honestly there's a lot of great networking that goes along with it. You learn about people and people grow to like and trust you because you'll drink a glass of wine with them. Drink a glass of wine and spit it in a spittoon, whatever. But this is honestly, hey, if you're single, it's a great way to meet single people as well. All right, I've got a buddy, Kevin, I keep trying to get him to go to a wine club to meet girls because he works all the time.

So network where the money is. So where it's likely to be.

There is money at wine club. So go where the rich wealthy are bringing a $2 bottle of 2 bucks truck if you have to.

Right. Better change that label though. They know it.

Exactly. All right, that's number three. Drink the Kool Aid. Number two, hey, look where the funding is. Follow the paper trail, as I like to say. I've got some names of some self directed IRAs company. The Quest IRA, Equity Trust, you know, PENSCO people, when they use their IRAs, they're usually named on a piece of paper that's recorded at the county clerk. Anybody want to take a guess what that is? It's the deed of trust. What the deed of trust says, it says, you know, Equity Trust or Quest ira, FBL for the benefit, Virginia Slim's IRA or Gary Smith ira. If you go and do a search online through the county clerk, you can often download all that information for free. And if you pull up the copy of the deed of trust, it will show you the borrower, the lender's name, whoever lent the money on that Subtract area. It will also give you the name of who borrowed the money. It will give you the address a lot of times and actually give you mailing addresses. Or you can use a service called White Pages or something just to search in your local community for those people. Those are great ways to find people that have invested. That's like shooting fish in a barrel when you pull the list because you know those are people that have self directed ira. Most self directed IRA are real estate investors. Especially if they've went on deal. You'd always say hey I see you the loan. I'd love to see about buying your note and talk to you about maybe doing other deals. Very simple layer X amount. And I get people call me off that occasionally.

So you're saying that in order to find the people who are already doing the self directed IRAs like I know Pensco, they're local to me. So someone's. If someone's with Pensco and they make a loan on real estate, that's how you're going to find them. As finding the recorded lien on the property is that we're talking about.

Yeah, the recorded deed of trust, the mortgage and that won't show up but in all areas. But the deed of trust will. Okay. These do a simple grantee grantor or mortgagee mortgage or search for equity trust. Yeah. Or Pensco trust. Yeah. It'll often pull up a nice list.

And then you're going to. And then you're going to put together a mailer and send that to them. That's the idea.

That's a letter. Hey, I see that you made this loan on such and such date to such and so it's via public records. I'm a real estate investor would love to talk to you about maybe doing some more deals. Very simple.

Cool.

Now I think guys that slide is worth about 1500 bucks. There are investors that there's. I will say gurus or I should say sleazy china slime balls. But I've been preaching this for years. I have people that will actually have gone out and taking that free information and bundling for 1500 bucks and tell people that a simple package on how to go search on the county recorder's website. Yeah. I mean yes, we all have brought education the same thing. But I'm always amazed, like hey, this is something that's free information. Everybody can do. You just got to think about it, think outside the box. But this is a great way. I know people literally selling this, this information for 1500 bucks. And so There you go. Your afternoon here been worth 1500 bucks plus more.

At least. Yeah, an hour.

That's at least. Exactly. Yeah. Now that takes us. That was number two. That takes us to the number one. Number one, everybody get high on your own supply. People. Let's say people sit around and wait for the money tree. They're looking for the fountain of youth, the money tree. They're looking for the tree. I can't do a deal before I find money. And if that's what you're doing, you're looking for funding before you ever do a deal or ever make an offer, you're killing yourself. You're wasting so much time. Okay, go out and make offers on deals. You know, use your title company, use your hard money, use your other investors to help you evaluate those deals if it's a good deal. A lot of times if you go to the same people that evaluate, they'll have funding for you, or they'll help you find funding, or they'll know somebody. So that's the biggest thing I want people to take is you have to take action. You can't sit around and do anything. You literally have to make offers. If you find offers and good deals, money will find those deals. Because you got to get out and speak. If you use the things we talked about previously here, either writing a blog or email blasting, or talking to your database or talking to your team, if you're making the offers, you'll end up growing your own money tree. That's the biggest thing I can say, that was the biggest mind shift for me as an investor is when I got started, I was, oh, I had to wait for money. I got to wait for money. No, if you do a good deal, if you find a good deal, the money will flood in for you. People seem to have a hard time believing that you have to speak what you're doing. You got to talk to people. But honestly, people, if you do what we tell you to do, the money will show up. Okay. As long as you're not shooting yourself in the foot and throwing up on them and giving them just every detail in the book on the front end. As long as you just basically almost kind of tease people a little bit of information on a good deal, it'll explode to you. If you build your buyers list or you're posting stuff on Facebook and LinkedIn and stuff like that, you'll get more money thrown at you than you'll ever know before. And that's the biggest thing. Invest like you have. Act as if you've Got money to do a deal. All that stuff kind of rolls into this number one for you. And I think it high on your own supply because honestly, it'll be amazing. You'll be like, oh my God, I need more deals because I have more money than I can, I have more product or money available funding for me than I have deals. I hopefully wish that everybody that's on this conference call has that at some point. And if you do the things that we've discussed today, you honestly will be there. It may take you a month or two, you may not do it on your first deal, but honestly, the more you do, the momentum you build. That snowball becomes just this huge avalanche of funding that will roll down the hill towards you and then you'll be basically easy. It's much easier to go downhill when you start doing that. You're kind of going uphill a little bit against the grain. He going to do the things like that and it makes for easy way down there and all that. Like I said, that avalanche of funds just kind of follows you sometimes.

Yeah, it definitely seems to me from the, you know, the people that I talk to and that I'm approached by constantly, there's a lot more money looking for deals than there are deals being found. So I mean, if you just like you just said, you go out there and you nail it first and then you, you look to fill the need after you've got the deal that that is, I think you're dead nuts with that. And you got to really get it out there.

Yeah, simple supply and demand. I mean, there's what, 7 trillion, 7 to 8 trillion dollars in private money sitting out there in IRAs and stuff like that, you know, and it's looking for a home. You know, the 401ks are now the 101ks, right. The CDs are certificates of disappointment, you know.

Yeah, the 1% I'm getting.

I'm sorry, go ahead, Brett.

I just said yes, the CDs are a disappointment.

Anyway. That's kind of my top 10 there for you guys. What we've done and built our business on here, it's changing. We don't do one play over and over again. We do a multitude of things. I try to cross market, do a lot of this stuff that we talk about. But honestly, that's kind of what I want to take a break. Give me a second here and talk about what kind of upcoming you're looking for more information, you go to my website because notes calm. I actually have a couple boot camps Where I spend a lot of time talking about funding upcoming here the end of the year. It's a three day boot camp that I have. It's called note buying for Dummies. I have a special running to the end of the year that was not the end of the end of the month. Actually the two for one special for $5.99. What that $5.99 gets you is few tickets to class. It's a three day class and you repeat for free.

This is an on site class, right?

No, no, it's actual. It's a. Well, I have a home study course. It comes part of it. You know, download the class. Yeah, but I also have a workshop. I'll show the addresses for the last two of the year. Sure. Next slide. But it's a two for one special. 599 I give you the home study course for both your people for you and your partner. Business partner gets you. You can come to any of my note buying for dummy classes. I have two scheduled for the year. I have five scheduled for next year. You repeat for free. Step 599 I also get you a membership to my website. I don't blast you with everything else, but I have a website where if you don't want to call banks, you can actually log on and take a look at notes that are available. You can cherry pick right now. So I get listed notes from hedge funds that you can actually take a look at and go from there. And then as a part of being a part of this, call part of Brett's group here. If you sign up for this special, I will legally take 30 minutes out of my day to call you and actually work with you, help you find funding for your deals. And then this is one thing Brett I'll also do. I'll actually send them an app. I'll send them my email that I use with a lot of investors as a template for them to use when they blast out to their database. Cool. So yeah, I'll give you 30 minutes for that with a little one on one with me. If you go to weclothesnotes.com under note training you'll see some drop down menus and stuff like that. It should have your name on there, Brett. I just tweets around with it but I think go Betty just tweaked how they. It should have your name on it but it doesn't say other. Then just type in Brett Palumbo in the name and I'll make sure you get it taken care of. Cool. But the next two classes are. I have one October 18th through the 20th in San Jose. That's going to be a fun event. It's a Thursday, Friday, Saturday, classes at the Radisson San Jose Airport. I have one in San Diego, the end of the year, November 29 through December 1. The Country Inn and Suites on Lunch Boulevard. That wraps up the year then. I've got a list of five events for next year on there as well. But if you take the time to sign up for the $5.99 now, do it before the end of the week because on the first it goes back to $5.99 per person.

And end of October. Are you a definite for Noteworthy?

Yeah, I'm speaking on Friday there, actually.

So you want to tell everybody about that in case they hadn't heard about it?

Yeah. Noteworthy is a convention. Noteworthy USA is a website that's run by Jack Sternberg. He's a really big advocate for the note business. He's been doing it for the 27th annual Noteworthy Convention. There's speakers there. This will be my first year speaking, of course, you've got the usual. You have Eddie Speed, you have Donna Bauer speaking on some stuff there and some other speakers. But honestly, the networking event last year I went to, it probably revolutionized my business more because I just networked with a lot of great investors. We talked about things. I'm at Carl right there with marketing up my marketing aspect on it. It's a great, great thing. If you're interested in signing up for that. Actually, there's a link on the website on the front page. Forward Noteworthy. I think it's 398A seat that's for your person. And if you bring a guest, it's 198. There were some early birth seats, but those have sold out already. So they're at the 398 special. But it's well worth it. It's at the Tropicana Hotel, Las Vegas, so you can click on the front of weeklies notes if you're interested in. Sign up for that as well. Cool.

Well, hey, I really appreciate you jumping on here. We've been trying to connect for weeks and it's our first stab at a flash webinar. Didn't even give people enough time to respond to it. So I hope that people found a lot of value from it. I know that I did. And I think what we're going to do is I'll have my assistant run through this thing and and put together sort of an action list, you know, or you know, tasks after this to go take some of these, your top 10 here and implement. Because that's really the key, isn't it?

Yeah, I think it is. You got to do something, do something. If you do anything on there, you'll be better offers than not doing anything, guys. Right?

All right, Scott, thanks a lot. Really appreciate it. And I if I don't talk to you soon, then I will see you hopefully in Vegas.

Sounds good, Brett. Have a great day. Thanks again. You guys take care. All right, buddy, thanks, Bye. Are you sick and tired of the.

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