13 Must Ask Questions About Wholesaling Notes

Foreign this is the no Closer show where you get the latest developments in distressed note investing and learn the secrets of how you can control millions of dollars worth of property for panties on the dollar. Get educated and entertained by someone who has closed thousands of deals and lives to support you in achieving the same. Now here's your host CEO of We Close Nodes, Scott Carson. Good morning, good afternoon and good evening everybody. Hey, welcome to this episode of Money Mondays on the Note Closure Show. Hope you are doing well, hope you had a great weekend. It is Monday here. This will be the actually the last meeting of 2024 for our money Mondays with our WCN crew. Take the next couple weeks off for the holidays and to revamp and go through some things kind of a slower time for a lot of folks. We'll be busy working on closing some notes along with a few of our coaching students have made some offers. Last week I got some stuff approved, excited about people getting some new bids submitted in and approved for the first time. So really excited for folks like Phil and Cal and Sterling, especially Sterling who's got a few of his four or five deals accepted or counted that we'll be working through later today with him and close it on his first couple deals. But I've had a lot of people sending me note tapes the last couple days actually really the last two weeks I'm not talked about this topic of wholesaling those that a lot of people aren't trying to buy, they're trying to flip them. And I'm starting to see a lot of comments in some of the Facebook groups of people trying to sell or wholesale notes that they have. And I thought I would go through these 13 things that you need to ask yourself 13 questions. Because when I ask like the first question or two, people don't have an answer and it never leads to the other option. So this is something if you're thinking about wholesaling notes, okay, there are some mistakes you can make and we had to basically help correct one of our coaching students who was trying to wholesale a little low value note. Hey, it's the first deal, I get it, totally understand it. But it's it wasn't a deal to begin with and it was just a waste of time to make an offer on it if I didn't know that he was trying to flip it or wholesale it because it really didn't hold a lot of mustard. Maybe a total difference, a thousand bucks. And part of it is educating your buyers. So I've been buying and selling notes for about 20 years, ladies and gentlemen, I've wholesaled a bunch of stuff still wholesale stuff occasionally. But when somebody sends me a tape and they don't have answers to these questions or they're not asking themselves this, that you're, you're just going to waste your time if you get a tape in and you don't know what it is, throwing it against the wall or blasting it out or trying to get somebody to look at it, it's just a waste of time if you don't have the questions answered. So you want to write these questions down as we'll go through it. Now, I didn't put a slideshow together. I just kind of wrote it down here in a word doc and we'll dive into them individually. Okay? But look, wholesale is not a bad thing. First and foremost. If you're wholesaling, you know, the thing to keep in mind is you got to understand exactly what you have, okay? If you don't know what you have, you need to learn to understand what you have. That's why our class upcoming in February. Yes. Plug in our upcoming three day workshop, February 14th, 15th, 16th here in Austin, Texas. Get signed up at Note Buying for Dummies dot com. We'll put the link in the description, but those are going to be some of the great ways for you to walk away. If you come to a class for three days, you're going to understand the note business, how to buy, sell. Fine. Find and flip notes. Whether it's flipping for your own portfolio or flipping the wholesale. The thing to keep in mind, ladies and gentlemen, what you have. If you don't know what you have, you're just wasting your time. If you're just trying to listen to podcast episodes and YouTube videos, hey, that's great. I get being on a tight budget, but it's not going to help you succeed in the long run. Okay? And I'm not badmouthing anybody at all. Don't think that for a second. I'm doing this episode so that you guys can learn how to do things effectively. All right? That's the thing. If you can't get make it to the three day class, sign up just for the WCN membership at 97amonth. There's some great stuff in. There's even a whole class on wholesaling notes just in the WCN crew base camp. All right? That alone is worth the $97 a month for you to make it happen. Okay? All right, let's dive into these things is it's one of the most important now the most important thing, all right, is when somebody sends you a tape, you have to ask them, what is the pricing? What's the price for these assets? What are you trying to get? All right, if you don't know pricing, and I had a guy reject me, hey, I got five notes in New York State, even though it's New York State, I'm like, okay, what's the pricing? He couldn't tell me. Well, that's the first thing. If you don't know pricing points on this, if it's, if you can't tell by the spreadsheet that it's performing or non performing, then it's a waste of your time. If somebody just sends you a PDF that's not an effective way, then it's not a deal. A PDF is a bunch of crap, okay? There's also somebody out there, a few folks that they're sending out like these word docs with like 20 lines of information about the ass. So you buy this $4 million note for 3 million, they don't give you the address, they give you all the pros. It looks like it's a realtor trying to sell a newly originated note or some high end. Those are a waste of time. Do not send me that guy. But first, number one is know the pricing of the deal. If you can't now, even if they tell you highest and best, great, that's something. Then nothing. If they can't tell you what the price is, you know, if it's performing paper, what do you want for? Well, we want par. Okay, well that doesn't make any sense. At least it's pricing. Okay? We went 95 cents on the dollar for performing paper. Okay. You know, that's a, it's a seller. But at least no money for you to make in wholesaling. Okay? Only if you're buying with your own funds, would that make any sense? If the rates are good. So that's the thing, okay, Know the pricing is number one. If you, if you don't know the pricing, don't blast it out to people, don't call people up. Because that's the first question I'm going to ask you is what's the price of these assets? If you don't know it, I'm not going to waste my time. It's also too on in here, is make sure if you get a tape in a spreadsheet in, it's all the information, not just partial information by partial. A lot of brokers out there will send out what's called a Sanitized tape. That's where they remove the addresses. Well, if I can't know the address of the property, how am I going to effectively bid it? I don't trust your BPO value I have on the tape, okay? On the spreadsheet, I need to know the full address to do my own due diligence. Like, I'll give you an example. We made an offer this past week and they have their updated value on it. Well, I asked them because I didn't like the value. It's a rural asset. I said, can you send me your bpo? Well, they sent me their BPO first. They sent me the wrong bpo, hoping that I would miss that. I'm like, okay, this is the BPO for a different asset. Oh, my apology. So then they send me what they call, what's an avm? An automated valuation, which is a Zillow value, basically. Well, I know that value. When it sends me the AVM, it only has, like a confidence score of 74%. So I don't trust their value. I know I'm going to have to order a BPO for myself to get true full value. And if the value comes back differently, which I 100% expected to, I'm going to go back to and say, listen, you value this at 149 because of an AVM. My BPO that I paid for is much more accurate than your $147,000 AVM. My value at 95 makes more sense, all right? And that's funds that are selling, you know, hundreds of assets. That makes sense to order AVMs, not full BPs. They're hoping somebody will do their due diligence. Okay? So make sure, A, you know the price and B, all the information is on that spreadsheet, okay? And that leads me to number two, who is in control of the deal. Now, if you get this list from somebody, the first question, the second question asking besides pricing is, how many people have seen this? Okay? How many people have seen this? Now, if it's. You got a spreadsheet from somebody you sanitize, well, you know, you're not in control of the deal. That broker is in control of the deal, and he may not even be in control of that deal. He may have gotten it from somebody else. If you got the tape from a friend of a friend of a friend, don't waste your time trying to flip it because you really don't control the deal. Now, if you get a tape in, and I'm going to use Sterling as an example, Sterling, we Got a tape in Sterling, made six offers on it. Six or seven offers. He got three or four accepted. The minute he says accept on those three or four, he is now in control of that deal. Yes, the seller still holds it, but he's in control now. He can actually wholesale them and he has a price, he knows the rest of the numbers on it. He is in control of the deal because he's basically going under contract. If you're not under contract, you really don't control the deal. If you have a spreadsheet with sanitized information, you don't control the deal. If you got the spreadsheet from a friend of a friend of a friend, you don't control the deal. Okay, so who's in control of the deal? You want to be in control of the deal. Part of the reason why we make 40, 50 offers is that we control more assets because our bids are more likely to get accepted. Something's accepted and we can control the assets. So either buy it from a portfolio, wholesale it, or go the route. Okay. And that's kind of falls in line. Are you direct to the seller or another broker? Joker dealer you got? That's the question number three, who's in control? You want to control that deal. Are you direct to the seller or another broker? Joker. Now I say broker and joker broker independently. A broker. There are brokers I work with. They're brokers on Wall street that I work with. There's a broker out of Florida that I work with. There's a couple other brokers that I deal with that send me lists that they get from banks, hedge funds, things like that. If they're selling on behalf of that seller, I'm completely fine. I don't care if they're making a commission as long as my price makes sense. Okay, now if it's a joker broker who's just sending a spreadsheet or a sanitized spreadsheet or a PDF, that's a joker broker. Don't waste your time. You're not direct to the seller. Okay, if you start giving like oh, the price is 65 plus 3, well that's a broker. That's not a joker broker. But it really doesn't make sense to pay $0.68 of the dollar for non performing stuff that's underwater. Okay, so are you direct to the seller? Ask yourself, am I direct to seller or a true broker or is this a joker broker? That's the thing, I mean that goes in line a little bit who's control the deal. But you have to Ask yourself that question. Otherwise it's not worth the time. Somebody wants to get you on a conference call to talk with their sellers rep. That's a waste of time. Don't do that. Let's get on a conference call and talk to my partner. And of course, if you get on a conference call, it's always somebody's removed, always my partner's friend. You're never direct to the seller, so don't waste your time. And the reason I ask, because you will waste your time trying to get on conference calls. Oh, so and so's got a tape. Well, so and so doesn't control the tape. They got it from a friend of a friend of a friend. That's not worth your time. Sorry, guys. Because by the time you get do all this due diligence, you're not directing the seller. They could have sold it to somebody else or pulled it, okay? Or tape could be marketed that's not supposed to be marketed, Tom. I've had that happen before too. One guy a few months ago sent me his tape of this huge tape of stuff across the country and he had sanitized it. Well, I knew that it was a list of reverse mortgages because I could look at it and see that $1 payment. And then I saw Austin, Texas, and I looked at the zip code of Austin, Texas, and I pulled up another tape I got from a hedge fund that I deal with. And besides the address, I could tell. Oh, wait a second. The unpaid balance on this matches up with this other unpaid balance. Same zip code, same asset. I said, you're marketing so and so's tape, which I don't need. I don't want to waste my time. I'm already direct, okay? Now, number four is one of the most important things I know that when you're brand new, you may not know this, okay? You may not know what number four is. What makes this a deal? All right? What makes this note deal or this property? What makes it a deal? Are you getting at a big discount so that if you buy it and get it re performing, especially note business, you'd be good yield. If you're going through foreclosure, is there a big chunk of profit? What makes this a deal? Not for you, the seller, but for you who you're flipping it to? Yeah, it's great if you make two, three points on the deal. But if that two or three points eliminates it from being a positive profit margin on the back end, then it's not good. 1. Years ago, I was teaching, we had A lady by the name of Liz Bruner. And Liz is still around. I think she travels the country in an RV or stuff like that. But Liz and her fiance, her husband at the time, they got a note in that they're trying to sell, and they're trying to sell it at 65% of the value of the property. Like, okay, that's not so bad. But that it. And they wanted eight. No, what it was. They wanted eight grand in commission on a wholesale. Well, that's eight grand caused it go from 65% to like 72%. I'm like, you can't do that. And somebody's not going to buy it at 72. They would buy it at 68. So you can still make like 4 grand on the deal. But if you try to sell what you fully want to make in commission, they're not. You're not going to have. You're going to reduce your pool of buyers. And that's what happened. They didn't sell it at all. So they made 100% of nothing versus 50% of something. So know what makes this a deal? Is it going to be a good property for somebody there if they foreclose? Is there enough of a profit margin between what you're buying, the note and the. Either the value of the property or the legal balance if you foreclose would be enough. Okay, if it's. Is it a good yield? All right. There was somebody who was trying to sell a note in one of the Facebook groups, and they're trying to sell it for. Above the balance of the note. They're trying. So I think that. Let's just say the balance was 150. Well, they're trying to sell it for 160. Well, the legal balance was 150. And they're like, you're foreclosing the one. You know, it'd be a good yield if it gets reperformed. Yeah, but you're literally going through the foreclosure process. That tells you it's not going to be a good rep. And so if somebody's going to pay 160 for the right to collect 150, even though a house is worth 300, it makes no sense because if it gets sold at auction, you're going to lose ten grand. And people don't understand that. So what makes it a deal if it gets re performing, will it be a good yield to somebody? And we're talking about a good deal probably if they're a real estate investor. Minimum 8%. If they're an activist, they probably want to make 10 to 12%. All right. Now, if you're using your own funds to buy the deal, does it make sense? If you were going to use your own funds, does it make sense to buy this deal? If it doesn't make sense, then you're going to have a hard time flipping it. Okay. And I kind of call this common sense underwriting. Just look through the deal. Hey, if they start paying on time again, is it a good yield? If they bring four months to the table, if they're more than four months behind, is it a good deal for the first year? If we have to foreclose, is there a chunk of profit between what we're paying for the note and either the full payoff amount or the value of the property, whichever is less, does that make sense? Is it in a state that's got a faster foreclosure process that can offset a smaller amount but can still be a good yield ROI versus something like New York, New Jersey, which takes two to three years to foreclose and where are they in that process? Is this going to be a 90 day thing or a nine month process? Okay, those are important things to keep in mind when you're looking at it. What makes this the deal? You need to know that and tell people that. Not just throw slap against the wall, hey, take a look at because now you're just not only wasting your time, you're wasting somebody else's time. And I get you're trying to make something happen. I get it. But taking the time to understand what you have, we'll go through. So what are the profit margins? That kind of also what makes this a deal? What? Knowing the profit margin is most valuable. Hey, you're going to make 60 grand on a foreclosure. You're going to make 400amonth. That's going to be a 20% cash and cash return. Those are things. Now the next thing. So first one we talked about, let's go back to the questions. You know the price of the deal. Who's in control of the deal? Are you direct to the seller or another broker or joker broker? What makes this deal? What are the profit margins of this deal? Okay, is it cash flow? Is it equity if it sells? Is it a big chunk if it forecloses? Or you get a cash or keys knowing those margins are good. Now what are the pros and cons of the deal? Pros? It's in a fast foreclosure state like Texas con. It's in a long Foreclosure process like New York. Okay, pros, it's occupied and the borrower has made some payments. Cons, it's vacant and nobody's made any payments for two years or three years. Okay, pros, it looks like there's hardly any back taxes. Those cons, there's six to seven grand in back taxes or it's going to a tax foreclosure. All right, those are the things that keep in. Pros, it's got a clean file. Cons, we don't have hardly anything of a collateral file. There's no servicing. Pros, it's with a servicer. Cons, no servicer. Okay? So you need to know the pros and cons. These. Okay? Now the thing is, if you're wholesaling, you have to look at how are you going to make a profit? Okay, how are you going to make a profit? And I bring this up because we had a student who basically he had a, a buddy who was looking for stuff in Ohio. He had Ohio note on a tape. The balance was only like 8,500 bucks or 9,500 bucks on the legal balance. He bid seven grand, I guess on behalf of his investor. Submit the bid to me. The bid came back at 8, 500. I'm like, it makes no sense in Ohio because It's about a nine month foreclosure process to pay eight grand for a 9, 500 note. It's in. The house is in good shape. It's occupied. It's gonna, you're gonna get outbid at the auction, so you're only gonna be able to collect nine grand. And I went to him, I said, hey, are you using your own funds? He goes, oh, no, we have an investor. I'm like, okay, this makes zero sense for an investor. Because if you're. Even if your bid was made at seven grand, even if the fund approved it at seven grand, how are you going to make any money that's worth your time? Oh, I'll charge the guy seven grand or I'll pay him eight grand. There. That makes no sense. Either you have an uneducated buyer who thinks they're getting the property, which is a waste of your time. Okay? If you're flipping notes to try and sell notes, you have to make sure that the end buyer understands it's a note, not a property. That will save you a lot of time from running around like a chick with your head cut off trying to explain. And they won't understand it and they'll drag you out. Then you'll lose face when they don't close. And now you're stuck with a note under contract or you can't close because you don't have the funds yourself. Okay? So understand how are you going to make a profit? Is it going to be a flat percentage, a 1 point or half a point on a performing note, or 5? A flat fee, 500 bucks. We had a student, Gail, a few years back was trying to flip performing notes and only charging 100 bucks in profits. And I was like, Gail, that is not worth your time to be doing all this marketing to make a hundred bucks. And if it doesn't, if something happens, the FedEx fees or other fees involved with having to return this, if they don't pay through, is not worth your time. Okay? So if you're not going to make at least a $500 fee wholesaling or $1,000, whatever it might be, don't waste your time doing it. If there's no profit margin for your end buyer, there sure as hell is zero in profit for you. I'm not bashing anybody, but quit wasting your time. This is part of why in our spreadsheets, one of the things we do is we get rid of low balance notes. Unless you're going to buy with your own funds and you want to put your IRA to work, that's a different story. But don't try wholesaling those deals to somebody else, okay? It makes zero sense. It's a lot of time wasted. Don't do it because it's just going to be a pain in the ass. You waste all your time not making money. If you're going to work, take the challenge and sell a higher assets, a higher valued assets going to have more borrowers or more. Not borrowers, more people looking for that stuff. It also gives you the opportunity to make a little bit higher profit margin. One point on seven grand is 70 bucks. One point on 70,000 is 700 cape. All right, so when you think about this, how are you going to make a profit? Then you also have to ask yourself, do you have a buyer's list? Now a buyer's list is not social media. A buyer's list is not LinkedIn profile. A buyer's list is a bonafide email list of contacts. Okay? An email list. All right? Now if you don't have an email list, then you need to get off your ass and go out and network. It means going to the local real estate club, going to networking events, going to an REI expo or something like that. And it does mean you still post to social media, but you start asking people for their email. Okay. Or you start going on LinkedIn as you're connecting with people, you start asking them for your email so that you can share with them. Because social media is not an effective way to wholesale deals. All right, if you have an email list, I don't care if it's 500 people or 100 people. That's much more valuable than a Facebook group because we all know that Facebook limits the amount of people who see your stuff. It may be 1 to 5% total of your friends or contacts on their Facebook group might get a little bit higher percentage, but it still limits. There's stuff I see that gets posted three days later. I'm like, I didn't see that three days ago. What the hell happened? So an email list, and preferably a cell phone list too, where you can text message blast people, hey, I got a deal. Those are some the two most valuable pieces of real estate in your whole real estate journey is your email list and knowing what they're buying. Okay. And they're cell phone list. And that takes me to the next question. What question is 1, 2, 3, 4, 5, 6, 7, 8. Buyers list. Email number 9. How are you going to market the deal? All right, an email is the first thing you should send out. Yes. To your buyer's list. Okay. A text message blast is also effective. Okay. But that's not the only way to market. Now, you also gotta be careful how you market. If you're trying to wholesale, you don't want to be like Elaine, one of my past students who got a list off of contacting asset managers on LinkedIn. She got a list sent to her. What did she do? She turned around and blasted one of the assets with a, with the same photo that the seller was marketing the asset for. Well, he caught it and blacklisted her. He's like, you don't own this. And her words were like, I'm trying to sell this note and make money. You know, look, I get if you don't have capital, you have to use things. But taking a picture of the property and knowing where you got the deal from, if the seller is on LinkedIn, you probably don't want to send it to him where he's on LinkedIn or you may want to go block him or un. You know, for a little bit. All right, posting in Facebook posts, LinkedIn groups. Here's the thing. You want to mass market your deal if you are in control of it. If you're not in control of it. Don't mass market it. All right? Now you can market things when you're starting off like, hey, I'm working on a deal, I'm working on a deal. But it's different in the wording so saying, hey, I got a note for sale. Okay, I'm working on a deal in here that's gonna start getting people to pay attention to you. You gotta start doing that. If you have no list, no email list, no contacts, no social media following, you have to start doing that to get the word out. Octopus CRM one of the great ways to find real estate investors or investors or specific people in your state with job titles or whatever. That's an effective way to start building a following. LinkedIn is posted on. LinkedIn is important. Facebook groups are better than just your Facebook. Okay. Video. I get a lot of people off of Tik Tock people off of Twitter. You never know where people are catch it. So if you're trying to be a fisherman, as you know, you would drag a net, you would have a cast net, right? If you're trying to harvest shrimp or harvest fish, fishermen use a net most of the time, right? Unless it's illegal. Like tuna fishers, they have to use the single line and that's very expensive to do, right? They hit or miss. But you want to literally post these deals and market things everywhere that you hate. I have a deal I've got and you can tweak it up. So it's different. Hey, I got a list in a 50 non performing notes. If somebody's marketing a list of like say 85 notes and 35 are performing in 50 are not performing. Hey, that's actually two postings. You could do you list of 35, a list of 49, pick a couple interesting properties off it and post a picture. Those are things that are going to help you. And yes, posting to LinkedIn and Daily is one of the most important things you can do because very few people, only 3% of people post to LinkedIn daily. To post their daily about something, it will help you. And I'm talking daily Monday through Sunday, okay? Seven days a week and posting multiple times. You may you post one thing and share a different deal and then share a different deal. But you may need to repost. If you send an email blast out to your buyer's list, you're probably only going to get 20, 30% open rate the first time, especially the smallest. Resend it out to them, okay? Rinse and repeat. If you're trying to get something done, get done if you have your own capital, that's great. Use these deals as an opportunity to raise more capital. Even if you're trying to wholesale, use these deals to help you raise more capital for things. Because that's the thing when you start thinking about that, who are the best buyers for these deals? That's the next question. Who's the best buyers? Where are the best buyers at? It's kind of 10 and 11 kind of go together. Who are the best buyers for these deals? Now some of these people have been posting deals in, in Facebook groups like, oh hey, you can buy these new report new notes at 8%. Okay. If it's three year balloons, those are great for a passive investor who wants to make 8% in their Iraq, okay, that's not bad. But they're not ideal for your, your turnkey investors or your more aggressive investors. More aggressive investors or people investing for all want to make at least probably 10 to 12%. If they're active and they're doing fix and flip, they don't mind being active, so they want to want a little higher percentage. If they're more passive, then you can get weight a little bit lower interest rate. But you have to understand who is your buyer for this and where are these buyers at? If their buyers are looking for past investors, then you may want to get on and start marketing to IRA investors. Okay, you may want to be marketing to cash flow investors. All right. And going to where those buyers are at. All right, where are those buyers? Are they at URIA Clubs? Are there at your, with your self directed IRA companies you can get on and do a webinar to or talk about deals or go find those groups and post those groups. You know, posting to like real estate investors in Houston, which is a big group of like 200,000 people, may not be an effective thing because you get a lot of tire kickers who think they're buying the property versus note versus say like the note Nation. We know there's note investors on there, active and passive. That would be much more effective to post there. Okay, now question 12 is important. What is the timing of the deal now? Timing of the deal stands. When does the seller want to close by? When do you need to sell these notes by? When are bids due by? So if they send a tape out to you, when are deals due by? Well, deals are due by Tuesday. Well, it doesn't give you a lot of time, right? Today's Monday, they're due by tomorrow. You better be bidding for yourself or better dive into and find a sweet Deal. Okay, but what's that? How long are they going to have? Do we need to go to contract immediately or how long are we going to have for due diligence? Or on this tape that you're marketing, when do you want to fund or close by? Okay. They say, well, we wouldn't need to close, especially right now. We need to close by December 27th. Okay. So that gives you 18 days with probably three days out of it because of Christmas. It gives you 15 days for due diligence and funding. That's really hard when you're flipping the notes. Okay. So if you're gonna flip it and just try to blast against the wall and you don't have any due diligence pulled, no values, you don't know that information. It's gonna be really hard for you to do at the end of the year. But if you are diving into this stuff and you understand the due diligence, you're doing some initial research on the front end and you can provide that information to your funding to the person buying the deal. That will help speed things up for you. Okay. Some people want to fund stuff themselves and they'll turn around and flip it a week or two later to get their money back and a profit. That's. That's also something you could do if it makes sense for you to flip it. Great. A lot of funds, when they get a tape in, they buy a new list of assets. They will work for 30 to 90 days working with the homeowners, trying to get them to read, you know, come to the table and re perform. And if they get them re performing, that's a good thing. They'll pull them off the block. But after 90 days, then they're going to try to sell these notes at a 10, 15, you know, percent markup. So they can make 15% in a quarter. That's a 60 cash and cash return. That's pretty good for them. Okay. If you buy it at 40 and then you flip it for. For 50 and make 10 grand in 90 days, well, that's like you made 100% cash and cash return when you annualize it, all that. So that's something to keep in mind. Mixes. But you want to make sure it's a deal. Still going through the due diligence process. How soon will they have, you know, due diligence documents to you? Those are some things to keep in mind. All right. Some funds want you to sign a contract and then they'll remove the assets that you kick off because of due diligence. Or things that don't match up, that don't make sense for you, or a lot of them will. Wait till you have a final population, a final list. So you got six approved. Let's wait till you get finalized on which ones you're going to fund, 1, 2, or 3. Then we'll sign a contract and go from there. Okay, but you want to make sure you're in control of the deal. You're direct to the seller. If, if you're a broker removed or two, three brokers removed, it's gonna be really hard for you to get this thing under contract. And by the time you get around to funding or doing your due diligence, it may very well be gone to somebody else. Okay, and that brings me to number 13. After, you know, the timing, the question is why? And this is the number one question that people would probably ask you, experienced note investors, experienced real estate investors, would you buy this deal? If so, what's stopping you from buying it? Now if you can't answer that question, don't waste your time. Hey, this is a deal. If I had the money, I would buy this myself, or if I had the bandwidth, I would buy this deal myself. But I just don't have the bandwidth or I don't have the time, or I'm getting ready to go out, whatever. There could be a variety of reasons that you, if you would buy the deal that you wouldn't be able to do it. Hey, I got a ton of other deals I'm working on. I just don't have the bandwidth to add another non performer. Okay, that's fine. Or I just don't have the time to raise the capital myself for it. Okay, that's, that's a valid deal. But if the only thing stopping you from buying this deal is that you don't have money, that can be relevant. But the second part of that is if you're wholesaling notes and you're trying to build a buyer's list to wholesale, you might as well just tweak your message a little bit to change it up so that you're marketing for capital. Because all the same things that you're doing to market the deal, email blast, Facebook groups, LinkedIn, TikTok, Twitter, whatever, so you're just trying to wholesale it. You can use that same marketing material to help you raise capital by just changing a couple of things. We're looking for a passive investor. We're looking for a funding partner. We're looking to either wholesale it, or for a funny partner, you could Even add those two things in there. As long as the buyer doesn't see that. Right, but that's the thing. Would you buy this deal? If you're not going to buy this deal and you can't tell me why this is a deal, like we go back to earlier on, then don't waste your time. Blast it. Why is this a deal? Take the time to understand why this makes sense and why you would buy this deal. Hey, I would buy this because it's going to be a 15% cash and cash return they re perform. I would buy this deal because a, it's a foreclosure. But I don't buy in Ohio because it's a little longer process. But it's an ideal deal for somebody living in Ohio who understands it, doesn't mind foreclosing. John Rickens is a past coaching student. Mine. He bought a note that was in Ohio. His goal was get the bar back on track. The bar wouldn't get back on track. He didn't want to foreclose and he was all worried about foreclosing. I said, well, then just flip the note. You still make 10, 15 grand on the deal if you flip it because you know where the deal's going. He's like, oh my God. I didn't think about that. He's happy. He made 15 grand on the deal. Somebody else took the deal off his plate and went through the foreclosure process. It was a deal for them. Okay? And it was good because he could tell the seller, listen, I bought this with the idea they're gonna re performing. They're not gonna re perform. I can still sell this to you and be a good deal for you and it'd be a win win for me. That, and that's a good thing. Okay, so would you buy this deal and what's stopping you from buying it? If it's just capital, go out and market. All right? If it's not capital or it's a. You don't know the answer to the price or you don't understand it, then you're going to have an uphill battle. When it comes to wholesaling, the best wholesalers I know are people that understand the deal. They know the ins and outs, the pros and cons and stuff like that. But if you don't have pricing on a deal. We had a guy that was trying to sell me some apartment notes and I couldn't get pricing from him. And he's like, oh, I'm gonna save these free. Like, okay, but what's the price. Are they occupied in cash? Oh, no, they're all vacant now. I'm like, okay, then what's the price? And finally get the price. I'm like, it doesn't make any sense of that price. I'm not gonna waste my time there. We're not even close to the ballpark. Okay, all right, now making an offer is great. And if they counter back, well, hopefully if you know your math and know what the deal holds, it shouldn't take you longer to look at that counter, see if it makes sense or doesn't make sense because you should be able to change one number, change it from what your offer was, which calculated your ROI to putting their number in and see if that ROI still makes sense. If it doesn't make sense, then cancel it or counter back. If it does make sense, then, then don't sit here and he and haw about a thousand bucks or 2,000 bucks or so. Just move on. We had a deal, we made an offer at 8. They came back at 10. They had an AVN for the property. I said, I'll offer it 9. They're like, counter, like, fine, I'll do the 10 and we'll see from there. All right. But the wholesale is not bad. I, you know the thing that you have to keep in mind, everybody is like I said, the 13 questions, you gotta know these answers to understand if it's deal, know the pricing of the deals, Number one. Number two, who is in control of the deal? Three, are you direct to the seller or another broker joker broker? Number four is what makes this a deal. Number five, what are the profit margins of the deal? Number six, what are the pros cons of the deal? Number seven, how are you going to make a profit? Number eight, do you have a buyer's list? I'm not buyers list, I mean email list. Number nine, how are you going to market the deal? Ten, who are the best buyers for this deal? Eleven is where are these buyers at? Are you direct to them? How do you connect with them? 12 is what is the timing of the deal, the contract, the due diligence, the closing and funding. And 13, would you buy this deal and if so, what's stopping you from stopping you from buying it? All relevant questions to ask yourself. All right, ladies and gentlemen, if you have questions, type them in the chat roll. If you're watching, I'm glad to answer those questions, help you guys get through whatever you need help with. As always, I want to make sure and reiterate that we do have our upcoming class in Austin here 2-14-1516 to be the first live class we've taught in over a year. I mean in person. We've taught live classes before and we're looking forward to having it here. It's normal price is 14.99. If you get signed up, you can save 500 bucks and get in for less than a grand and it's good for you. Plus your partner spouse. Go to no buying for dummies.com if that's outside of your budget range because the holidays and get signed up for the WCN crew at $97 a month, it's one of the most important things you can do. It will help you get rock and rolling. And the thing that you got to keep in mind, ladies and gentlemen, is if you really want to do this business, then take the action. And I'm going to give a shout out to Albert. Hi Albert. Hey Eleanor. Awesome. D Anthony D. Anthony Dupree, thank you for commenting on there. I know you've been working on some stuff there. I think this is going to help you specifically take your business to the next level. But look, wholesaling notes is not bad. Look, have a little belief, have a little faith in yourself. You're all capable of doing things. If you want your your situation to be different in 2025, you have to be doing different activities than you've done this year. Okay? If you haven't made any offers, the first thing you should do is look on making offers. If you haven't gotten a big close, then work on getting your first deal closed in the next 90 days, raising capital, flipping notes. I don't care what it is. Important thing, ladies and gentlemen is to take advantage of what's available out there. But understand the deal. Don't be one of these idiot joker brokers who just slaps stuff against the wall. It doesn't make any sense. If you're part of the WCN crew, go sign up for that 900amonth. You can scroll down into the base camp and retake the whole ceiling Notes master class that we put together a year to go. It's still very, very relevant. All of it's still accurate for you and it's a good way to get the ball started in the new year. So anyway guys, if there's not any other questions, comments, concerns, I want to wish you all a very Merry Christmas and happy New Year. This is will be. Like I said, this is the last WC and crew call of the year. It's not the last podcast. We'll release a few more podcasts before the year is out. If you are WC Crew, don't worry about it. You can still book some phone calls with me. Email me. So glad to jump on calls and help you along the way, especially if you're working through some deals before the end of the year. And with that I want to wish you all a very Merry Christmas. Happy Hanukkah, Happy Quanzai in a very safe and happy New Year, ladies and gentlemen. But otherwise, go out, take some action buddy and hopefully we'll see in Austin in February. If not, we'll see at the Top by Hey Real Estate Investors. This is Scott Carson. I'm known across the country as the Note Guy and I've been an active note investor and focus primarily on the niche of non performing notes, distressed mortgage notes and residential commercial properties for almost 20 years down. My company is we close notes.com and I know there's a lot of different things when it comes to the note world. Are you buying performing notes? Are you buying owner finance notes? Are you buying institutional debt? Like I would focus on? Are you buying first seconds contract for each There's a lot of questions and it can be very confusing about what you can or cannot do. So one of the great things that we've hosted for the last couple of years that we do on just about a regular monthly basis is we host our one day class called Note Weekend. If you go to noteweekend.com, you can register for a free three and a half hour class. We'll talk to you and share with you how you find fun and flip non performing notes. And yes, you can buy non performing notes from banks, hedge funds and a variety of different hard money lenders out there for your own portfolio. No, you don't have to have millions of dollars to dive into the non performing note game. We've got students that have bought plenty of deals with 2530 grand getting their ball rolling using their self directed IRA who are tired of dealing with toilets, tenants trashes, tired of battling contractors and GCs to get properties rehab. We all know the market is changing and while it may not be like 2008, 9 and 10 again, we do see a lot of distressed debt out there on both the residential and the commercial side. So if you're thinking about diving into the note game, becoming a note investor, a lean lord as you'd like to say, versus a landlord, or you just want to figure out what it is about the sexy side of real estate in the note space, well check it out. Noteweekend.com doesn't cost you anything. We host it live usually the first or second Saturday of each month. You can go today register at the website noteweekend.com Register for the next live class we host. You'll get sent a replay to the previous class so you can start learning about the note business today. No questions asked. No credit card needed. This is a great way for you to dip your toes in the water and see if it's warm because I guarantee going through our one day class you want to dive into the deep end and become a note investor. So check it out. Note weekend.com you also go to our website. We close notes.com check out our podcast. Check out our YouTube number one YouTube channel. We are here to help support you. Whether you're experienced investor or you're brand new investing, Note weekend is a great place for you to get the ball rolling. People often said we cover more in our three hour class and most people cover in their three day class so check it out. Love to have you be part of our note family but get signed up today@noteweekend.com thanks and have a great day. Sam.