Breaking Down a Tape of 15 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. Hey everybody, Scott Carson here. Just want to say thank you again for listening to the podcast. If you've been listening for a while, you're subscribed to the podcast. First of all, thank you. Second of all, hey, you know, if you're you're not one of our coaching students or you haven't signed up for one of our three day workshops, here's an opportunity for you. You want to check out our WCN membership. This is the biggest bang for the buck of the notice street. Besides our one on one coaching, this is our monthly membership for 97amonth that gives you access to all of our online training, our virtual workshops, our note weekends, our special one day master classes that we've taught in the past, anything that we have going in the future, as long as you're a live member, if I can't make you or save you $97 a month, I'm doing something wrong. But save you paying 997 or 99 bucks or 399 here or anything like that. We make it affordable at $97 a month and like I said, it gives you access to all of our past replays, our upcoming classes, our access to our special classes. We also do weekly coaching calls with our WC members and also our WC members also get first crack at tapes and lists of notes that we get in after our one on one coach to take a look at them. But it's a great way for you to go. You can also schedule call with me anytime to go through deals that you're working on marketing things, questions you got going on about a deal. We're here to help you. So how do you get signed up for that? Really easy. Just go to noteumbrella.com that's noteumbrella.com get signed up there for you 97amonth guys. Like I said, biggest bang for the buck of the nursery and we want seeds of the family. So let's get you signed up today. That's knownumbrella.com welcome to the no family everybody and thank you for always for listening. Good morning, good afternoon and good evening everybody. Hey, welcome to this episode of Money Mondays here on the Knuckles Show. Hopefully you guys all Had a wonderful weekend. It was hot. It was hot. Maybe the last week of summer, but I think summer, summer's holding on for its last dying breath of horrible heat wave. Anyway, but if you guys are looking for some hot deals, we might have some for you guys to take a look at. Whether you're interested in performing notes or non performing notes. Maybe an REO or two or something get for decent cash flow. We got this recent tape in and if you're in the WCN crew, you would have gotten the tape posted the base camp or in an email to you just a few minutes ago. And it's a tape from actually a past coaching student. One of our coaching students is still an active note investor. Closed on, I don't know, a couple hundred notes reached out to him last week. So they had a couple for sale and said, hey, what else do you have that you're looking to move? So he's like, oh, I'll send you the whole list. And so that's what he did. He sent me a whole list on Friday. We looked a little bit at it and I thought I would take the time to go with it with you guys here in the video. If you're interested in getting more information, you can always email me and we can talk about our. As always, our coaching students get first crack at then followed by our WC increment members and then thirdly the general public. But for 97amonth you can access to different lists of notes available and these you don't need to buy the whole thing. You can buy a one off note on these. Some of them have higher balances, others are a little lower. The two reos need a little bit of work on those. They had renters in them before, but based on the notes in the actual spreadsheet, I think they're not a bad little deal here for you guys. So let's, let's jump on here and share the screen. Let me make sure I've got everything all doing good here. Anybody having questions they want to ask before we dive into the actual tape breakdown of what they're working, I think chat roll should be enabled. Life is always interesting, you know what I mean, ladies and gentlemen? I get a lot of people like, oh hey, I'm looking for deals, I can't find any deals. And I'm like if you just market, if you just follow for the people that you've sold notes for or you've bought notes from before or check out who they are selling notes to, you probably won't have an Issue finding notes in a lot of cases just because there's a lot still available out there. Not everybody is doing the marketing aspect. And that's how we came across this list is just following up with some of our investors, some of our students out there. These have a mixer. Some of these are performing, some of these are non performing. So that gives you a bit of a breakdown in the tape and base camp. It outlines exactly what they are. But just so you know, the red overwhelming most of these. About half these are performing in the red. The two that are blue are ones that are in an active modification. They should be current in the next couple of months. The two purple are reos or foreclosed. They've written the foreclosure. They're vacant. And the two yellow here are non performers that are in the foreclosure process. The sellers already started the foreclosure process on these. Okay. So that's the good thing, is that they're kind of ready to rock and roll for you. Information in the basecamp on the spreadsheet is all that I have. All right. Don't ask me questions that I don't have answers to, because you have exactly what I have. If you have a question or two, feel free to reach out to and just wanted to go through this with you guys so that you have a bit of an idea to know what to look for and go from there. So. All right, it is. The tape has been uploaded to basecamp. Let's go through it here. There's two tabs at the bottom of this spreadsheet. Let me make sure that you guys can see my screen. Yep, I think you can. All right, there's notes at the bottom down here then. REOs for sale. The REOs for sale here are. One is in Corona, Michigan, single family. It's a foreclosure that reverted back to the lender that needs floors and drywall. And then the one in Memphis, Tennessee, is a foreclosure reverted to the lender the previous owner was renting out. And when they took ownership, the renter moved out property and some repairs before sale or rental. Now, I did ask out to the seller if he'd be willing to finance the REO purchases for you carry financing for a period of time, 6 to 12 months. He might be willing to do that because he's a savvy note investor. But if we look at these. Let's just take a quick look at these two photos run in Michigan, so you can kind of get an idea where it's At. Here we go. I don't know how big it is, but there's the house. Pretty good little size house. This is June of this year. So it's a very current photo. Kind of see the neighborhood. Let's go over the corner here and see if we can't get a better angle, front side. So it's not a bad looking little house as it sits. Right. That's great this year. And you see there's a sign there listing for sale. I don't know if they've got listed for sale in the mls, but there's a sign there. Now if we go back over here, just give you a bit of an idea on this one. I'm just gonna jump on the Zillow listing here. Yep, it's been on the MLS. Oh, look at it. 79. Nine is what he's looking for. Okay. Two bedroom, one bath is only 880 square feet. It looks bigger than that though, doesn't it? It's got 47 photos on this. So let's look at all 47 photos on this. That's the exterior. Okay. Blue kitchen. Blue. They got a little bit nice tile work in there. A little bit of flooring there. I mean it's not. I mean I've never seen wood paneling in the shower. That's a bit of an interesting thing, wood paneling in a shower. I would probably remove that wood paneling and put a shower install on it. But you know it needs new flooring. Yes. Sheetrock. Yeah. So some basement access is down there. Okay. There's the basement. You see water heater, heating unit carrier. Okay. So it could be a nice little house. It just needs. Needs some tlc. All right, there we go. Up to the second floor. A little bit of gated in fence sort of guess there for a small dog. So what's nice is that you have interior photos of this. You have a true idea of what it is. I don't know what it's worth after pair value. Like I said. Just got this on Friday. Haven't had a chance to it. There's the unfinished garage. That's pretty normal breaker. I mean it's. It could be a nice little house, right? A little REO that you guys could fix up, turn in a rental if you want to do that. If you're looking for something there. There you go. So that is the property on that one. Once again, that property is located at 120 West McNeil in Corona, Michigan. Let's see. Let me click on one. I think. Let's see what they say is rent rates here. Do they give us a rent right here? Probably not been on them on the MLS or on Zillow for 104 days. Okay, there you go. There's that first one. Okay, any questions about that before we move on? I know two bedroom, one bath, not very big, but if you're already in Michigan. Hey, that's my. That probably. I don't know what would that rent for? 900,000 bucks a month. Okay, all right, let's move on and go click on the other one. The other one is this one in Memphis, Tennessee to reo foreclosure once again. Probably need some repairs. Give you a bit of an idea. We'll click on the map here. So you can kind of see it's this little smaller house over here in Memphis. Memphis is on the main street here. So I kind of like that. Memphis you really got to know block by block. This is October of last year, 2023. Get a question from somebody. I just spent a week driving across Michigan for the tax sales. It looks like the rest of Michigan. It does exactly Don, thank you. Looks like Michigan houses have plenty of those little houses like that. Okay, so there's this one in Memphis, 2927 Seventh Street. Let's go back here and click on this one. Another two bedroom, one bath, 800 square foot house. It's valued about 64. That's the assessment. Rents for about 800, 900 bucks a month therefore. So it could be a decent little rental if you like rentals in Memphis. But like I said, if you're interested in making an offer, feel free to reach out to me. I'm glad to facilitate it. I will tell you this right now. There is a charge of a thousand dollars per deal on this to me. That's my commission for helping to move these to you. Unless you're one of our one on one coaching students. Okay. And then there's no for you. Let's move on. Let's go back over to the spreadsheet then we take a look at some of these as well here on the tape. So you get an idea. So performing wise, let's look at some of these. So performing eyes. I don't have what he wants as far as pricing so it's hard to figure a yield. But let's go through these performing ones in almost door, Pennsylvania Jackson, Mississippi Cocoa, Florida Westland, Michigan Monroe, Michigan Milton, Florida Waterloo, Iowa Williamsport, Pennsylvania. That's a payment plan modification place. This is a payment plan will be current in October. This One is in St. Louis, Missouri. There's a first and a second death. Basically a sub BK account. This is in Baraboo, Wisconsin. This is on here twice. Because one is for the main balance, the other one is for the back payments they're paying on. And then we're gonna go through these two foreclosures, two pending foreclosures. Okay, so what would you guys like for me to hit first? The performing the two mods, the BK or the two that are in foreclosure? What would you prefer performing? Nishard says who else? Anybody else want to throw in bk? Okay, so what we'll do, we'll do the BK one first because it's only one. Okay, so it's this one here. Let's just make it simple. Baraboo, Wisconsin. All right, 326 Elm Street. Let's just take a look at it first. Oh, we'll get maybe some better photos of this one. No. So this is valued at about 150 is what Zillow gives us for. And okay, this picture is taken From August of 2013, a few years back. Okay, so it's not a current photo, but you get an idea of the size of the house and what it is. It is a. They don't know square. Don't know square footage bed and bad. Okay, that's fine. Let's go back to spreadsheet. All right, so this, the sub account performing join to BK. Join with main BK. So it's these two. Tonya Crenshaw. Boom. Let's see here. The. The BPO is about 169, 300. I don't know if that's right, because the exact same value, they probably forgot to add that into one. But that. It's about the value of that. All right, so BK first. So basically, here you go. It's 41, 559 is the balance on the underlying UPB on the first. Basically the current principal balance. Here we go, 67 2, 2, 4 6. And then the current balance on the. Basically the second or the BK part of that is 14, 79 7. So all together, it's. What is it, 81, $82,000. The first is at 5.5. Obviously, it's on a scheduled payment plan over here for the rest. So they're making, basically, if you look at this, a combined payment between the two. This is just principal and interest on this. So it's 363 on the first and then 464 on the BK. So together, making a payment of 82-709- and their next payment due is in September. So they paid already August. All right. And you can kind of see that. All right. Adjustable rate increased of 6. The rate goes up to 6.5% in January. First since they filed the bankruptcy last year. Paid on time charges currently 2563. Total due per BK 1479. Currently paid $464. They made the first payment on the BK payment reduces to 420 for February 2025 due to rate increase on main loan. Bankruptcy payments are applied to charges and fees first before the principal balance of the bankruptcy portion. There we go. That's awesome. The foreclosure here. This is for that other third asset. So it's just these two. So it gives you a bit of an idea that you want to figure this. I don't know what he wants on this. It's a little different when you're figuring two. And it's just for rates. I know that he's a little bit flexible on some things. So you know, if it's at a. You're getting a pretty decent cash flow in that for a few years, but it could be potentially a decent deal for you. So don't know best way what you guys want to do calculating, obviously the payments come in for a couple years on that. If not, I mean the thing is the value is there, right? Filed bankruptcy, wants to stay in the properties want to make payments and they've got a ton of equity being valued about 140, 150 afterwards. You know what I mean? So that's the BK. Okay, let's go over the performing ones now. Performing the few performing on here. Okay, so here's the performing ones. Give you a bit of an idea. BPOs, you got values anywhere from 42 up to 2 third. 260. Okay. The original balances were obviously lesser than that. They mature. Closest one is 27 and the others don't mature for a while. Current principal balance, if you add these up between these. Let's make sure this. Yeah, anywhere from a 2.72%. Oh, that's a tough rate. That's a tough rate. 2.2percent is a tough rate. I think he understands he's have to sell it at a big discount on that. Monthly payments on these are anywhere from 254 up to 912. That 363 is the one from the BK we just looked at. It's not performing. Some of these escrows are included. Total monthly payment is that paid to next date. So they've all basically there might be one, it might be 30 days behind here or 60 days behind almost. We'll see if they're up to date or not on that one. But you've got 38 months maturity to 368 months. C1 makes multiple payments and wants to catch up. He falls behind a month or two. So there you go. It's a kind of a rolling 30, rolling 60 on that one. So the note maturity is 11:1, 20, 27, but was amortized over 168 months to 12:1 including deferred balance. Total balloon is expected to be 17:5, 46. Okay, so it's got a balloon in three years basically three night, three years, three months. That could be a pretty decent one. Legal balance is 25. Some of those as well. All right, so let's look at some of these. What these look like, huh? If I get price and expectations back, I'll update the spreadsheet obviously. So they'll. That one, that's in Molesford, Pennsylvania. That's a good list is from July 2012. But still not a bad looking house then, right? Okay, that's not bad at all. Let's go back to the tape. That one is valued at. This one's got the big BPO 232. Okay, let's look at the one in Jackson, Mississippi. This is also performing. Oh yeah, this one's out in. Yeah, it's a little blue house. I looked at this earlier. So this is from May, March of two years ago. So it's just about two, two years, five months ago. It's performing. Guy likes to trim to match his car. It's in a kind of normal neighborhood in Jackson, Mississippi. Yeah. Okay, not bad. This one's in Cocoa, Florida, which is never too far from the beach. Yeah, this is referred to. Yep. This is from April 2011. So it's a little bit older photo. Somebody's blocked out there. That's okay. So you can get a bit of an idea how close it is the beach there. There you go. It's about 2,000ft. One for the beach, give or take. Let's go to Westland, Michigan. Most of these are with fci. A couple of them are with Medicine Management. As far as the servicing company, this is a 1 1/2, 2 bedroom, 1/2 bath. Look at that one. That's not bad. Whoa, I do not mean to do that. There we go. You got some. This is May of this year. Some definite pride of ownership on this one. Yeah, look at that. Look at that landscaping. That's A pretty good little performing note there. Okay. You'll probably see me post a few individual videos over the next couple days on these assets too. Let's go back here. I like that little one. Let's go. Keegan Ron in Monroe, Michigan. This one's a little Keegan Road, Monroe. Yeah. Okay, so that's what this is performing. Okay. We got the American Pride, America. This is from May 2023. So it's a current photo. Okay. Yeah. Swing motorcycle or is that a trike? It looks like a golf cart actually, but yeah, some pride of ownership there. Nice. This one. I think I've looked at this one before. Yeah, this is a. I think this one is blurred out, but there's a trick to looking at it. This one's on a bad looking little house. Yeah. So the borrower is called. Contacted Google was like, I don't want my house to be showed. Okay, let's blur it out. But this, you can see the roof back in here. This is picture from June of 2020. You just got to go over here a little bit. Now you can see a little bit better. Okay. And you got some, you got some money with some pride of ownership, obviously. Plants, they like their plants. And there you go. Is that aloe vera there or something like that? A little backyard. The side of the house is blurred on the other side. But it's a not bad looking little house there in Milton, Florida. Right, everybody? All right, let's go back. And this one's in Waterloo, Iowa. Yeah, look at that. This photo is from June of 2020. No, is that 8, 5, 4? Are we looking at 8? We want to. Let me go back to spreadsheet here real fast. 8, 5, 7. That's the house where. Yeah, this is the house. We're eight, five, seven. Oh, wait, no, it's eight, five, four. That's it. That's why it's important to look at the address. 859-857. That's a little strange. 84084. 846. Okay, so maybe it's. Maybe it is this one. They just have four on there to screw people up. Yeah, that's supposed to be 8, 5, 7. That's strange. You don't usually see the addresses weird like that. But that looks like that's it. Check the county. All right, and there are those. So now let's look at. If we haven't already looked at these, the two that are non performing foreclosures. This one's in South Bend, Indiana and this one's in Milwaukee, Wisconsin both single families valued at roughly 98 and 170. Original balance is much smaller. Current balance on this UPB is 25 and 628 and 6%. Let's see if they got the full legal on this. Loan charges unpaid deferred balance. So legal balance is not. It's basically 28 and 72. So on the first one which is in South Bend, Indiana bar passed away several years ago. Drives down the main point of contact has been reasonably communicated up to lately. She said recently a reminder house with the intent to sell it soon. Historically she makes several months of payments at a time but it's not. And we have begun foreclosure begin the process July of this year. So just starting it out. And since the NOI basically two weeks ago the notice of intent to foreclose ends on September 2nd. No known probate this time. This foreclosure will. This will initiate probate. Okay. And this other one is foreclosure referred to Barnum and Bueller on March. So it's already in the process of going through a further one in Wisconsin. So let's look at these two. This one in South Bend, Indiana. I think it's a little a frame house member looking at it. South Bend's not bad. It's not close to the university. It's about five miles from Touchdown Jesus in Notre Dame. Well, maybe not. Maybe I did the wrong 25 2K. Yeah, there we go. This, this photo from June of last year. So obviously if they're fixing up to sell the house, they're hopefully fixing them up but use a little bit of work. Yeah, but that's a year old. So if they are fixing, maybe they're making it cleaner versus this one without the truck right outside. And let's go over and pull the other one up here. This one in Milwaukee. This photo is taking August of 2022 and 532. Is that the address we're looking for here? 5320. Got tarp on the roof. Well that's from a couple years ago. So maybe they have a new roof on it. 32 0. I think that's it right there. Then the neighbors here. 5314. Yeah, I mean it's probably it right there. 5320. Let's go down here. Look at this asset. Can't see it's not. It's pretty normal. Thousand for you. 5331. Yeah, yeah, that's got to be it. Hopefully they got a new roof on it with Wisconsin. I mean they Got some pride of ownership, some landscaping stuff like going on there. So maybe they were just in the process of. But it's got an older roof on there, so who knows? That'd be worth checking. Having a drive by. So these guys, some of these, you make some money on some of these, you know, hold for ROIs. It just depends on the pricing, like I said. He said he's flexible on some of these. So if you want to make an offer, take a look at the tape, email me directly@scottclosenotes.com I'd be glad to take a look at it, submit your bids on it, and help you get a deal or two Close. If you've got any other questions, feel free to type in the chat roll. Got a hopefully busy week for each and every one of you. The school's back in session for a lot of us and things like that. I see that. Don, you said you were traveling across Michigan looking at tax sales. Hopefully you had a good time. How many properties did you look at when you were up there driving around? We got there for a week, couple days most I've looked at. We, we flew up to Michigan. Oh, I guess with eight years ago. Eight, nine years ago. And I had 60 to look at 150 plus properties. Yeah, that's, that's doing it there for a week. We hit about a 50, 55, you know, in a. Basically a two and a half day period. So we made a whole like triangle from Detroit all the way up to Bay City, basing across to like Jackson and Lansing back. So I bet, you. Bet you're tuckered out. Hopefully you found some deals that you're excited about. I know that I saw a listing from Wayne county on their tax sales and it was like 30 to 40 pages long. And I was like, wow, that's a lot. Lots of good prop. Yeah, I mean there's not bad properties. That's the great, that's the great thing about Michigan. Now is there a. Any type of redemption period in Michigan on that tax sales or is it you buy the tax taxes that foreclose and you take the property as a redemption period in Michigan? I can't remember. Oh, this is. The county's already foreclosed and you get the property. Oh, that's easy. So you're basically buying it on the. Basically over the counter, basically from the land bank. Basically. Okay, that's awesome, man. Congrats. Well, love to see some of those, those deals. How many do you think you're gonna buy? Oh, they were auctioned. Oh, okay. They were all auctioned. Okay, so you're just buying the property straight from the county then. Okay, three to four. Well, that's good. And you're playing with those is to probably, what, flip them or you turn them into rentals. What's your ultimate plan? Sell them on owner finance. Create your own notes. What's your plan for those? Quick flip to other investors. Okay, there you go. Good stuff. Well, let me know if you need a resource up there. We've got a great realtor, Lisa Rush, who's also part of the WC and crew. And if you ever need some help on those, let us know. We're glad to help help you flip them. So other than that, everybody, I don't have anything else for you today. Like I said, go check out those notes. And performing on performing a couple reos. Let me know if you're interested in making an offer and we'll go from there. But go out, ladies and gentlemen, take some action. Be courageous. Courage in today's world isn't just sitting on the sideline. It's getting up and taking action. So kudos, Don, to getting on a plane and flying around and looking. That's. That's courage. Courage is getting out of your comfort zone, getting out of your safety and going and doing something. So the more that you can embrace that, you know, expand your comfort zone, you get more. I mean, Don learned more about those areas by looking and seeing them than anything, anything you would on Zillow. And it was worth the tweak to be invested in your future there for you. So kudos to you, Don. But anyway, ladies and gentlemen, go out, take some extra buddy, and we will see at the top. Hope you enjoyed this episode. We'll put the link. If you're just listening to it and watching it, we'll put a link to the actual batch geomap into the description so you can actually look at the addresses a little bit further. But I won't put the tape there. So we'll see you later. Bye, everybody. Sam sa.