EP 358 – Buying And Selling Owner Financed Notes with Kristin Adam Gerst

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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 pennies 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 Notes, Scott Carson.

Good morning, good afternoon, good evening, everybody. Welcome to this episode of the Note Closure Show. As always, I'm your host, Scott Carson. Excited to be here. And we have a very special guest on this morning, somebody who is rocking the note industry, doing an amazing job of not only being an asset, but doing a great job of closing deals and also sharing what they're doing as well. And I'm honored that this person who looked like they had just an absolutely amazing vacation would come back to the States and be on this morning with us. So give us a warm welcome to the the woman, the myth, the legend, the Amazing note investor, Ms. Kristen Adam Gerst. Good morning, Kristen.

Good morning. Thanks for having me on.

Applause there from the audience there for you.

Is that what that was? No.

So you are the rock star behind Capricorn Mortgage Investments. So for those that don't know who you are, why don't you take a second and share with my extended note family out there, Note Nation, what you do and how you're awesome. What you're doing.

So Capricorn Mortgage Investments, I am purely looking for performing mortgage notes owner finance high interest rates. Right now, I'm looking in that 9 to 11% interest rate range. If it's got a good payment history, even if it's an older note, it's 10 years old, I want it, I want just the cash flow off of it. I'm paying in the 90s for it consistently. And I don't have a problem doing that. My margins are super small, but I do a lot of volume. Last year I did 15.8 million. I'm missing that mark this year, unfortunately.

Yeah. So that's the thing. You're buying performing notes. And are you buying just in Texas or you buy other areas as well, nationwide?

In fact, I just, while I was in Italy last week, I put in, I don't know, 55 notes, all totaled about 3.1 million. And that was completely nationwide. No notes in Texas. Obviously, I prefer Texas just because I know the market, I know how it works. I'm comfortable here. We've got, of course, for everybody who does notes, you've got judicial and non judicial states. And really. And until I actually buy in those states. I'm not going to know specifically how much I can actually pay for those things. And it's less, you know, my guys who are buying from me, I'll buy one offs of course from individual investors. But what I do is I package them into large portfolios and then I sell them to banks, REITs, hedge funds, those types of buyers. And they won't talk to me unless I get a lot of paper on there. And they only want performers and it's gotta be stuff that I can stack to mimic bank paper. So decent underwriting, you know, I help that along if we need to redo some stuff. But I go through word by word in almost every document looking for errors, making sure that my product that I'm giving to my banks is top notch.

So how did you get into what you're doing now? How did you get into it? What's your background?

My original background was about 15 years ago. I started buying low income properties. When the market crashed in 08, I had 61 doors, all rented. Section 8 that I was self managing.

Wow.

Yeah. And I hated it. I absolutely hated it. So I started owner financing all of these. I just learned how to do it, you know, and then, well, okay, I don't have anything to owner finance this month. So then I started talking to other investors and saying, hey, I'm doing this, do you want me to do it for you? So then I started originating notes for other investors as well. And then I started teaching realtors how to get their clients to do it. That was all back in like the heyday of creating these, taking things subject to and wrapping them back in 08, 09, 2010 and then starting Capricorn. Everybody pretty much also knows that I also do hard money with Bay Mountain Capital and Dean Lantos over there said, hey, if you would like to tell me how you can sell these things, if you can show me that you can sell these things and show me that there's a market for these notes. Yeah, we'll do a fund and we'll lend on that. And I said, okay, there's got to be a market for this stuff. So I left bay Mountain in 2015 and I started Capricorn because you know, I had all these wraps and I wanted to get them completely paid off and pay off these underlying liens. And I'm like, there's got to be people paying decent amounts for these. Not that non performing in the 60s and 70s of UPB, but somebody who would come in and pay 90, 92, 93 95% UPB prices. And so that's what I went out and built. And it was trial and error and then finding guys above me to buy from me. Yeah, I have to make sure that I just have a lot of it.

That's the truth. There are definitely funds out there buying performing paper. I've got some buddies that are buying it. If it's an 8% yield to them or 9% yield to them, they're happy with that because they've got cheap money coming in from savings accounts and things like that. They've got, you know, some of those funds that have cheap money, they can make 7, 8% yield on their money after servicing stuff like that. They're pretty excited about it.

So, you know, and for a lot of us who are buying these things and using warehouse lines to do it, once you have, I found, you know, it's a lot easier to get money once you have a lot of experience doing this. A lot of places do not want to give you money to buy and sell notes, unfortunately, because it's just not in everybody's wheelhouse. These, you know, things they're just set up to do. But like mine, I'm watching right now interest rates very, very intently because I'm at prime plus one. If we're slated. If you look at historical interest rates going back 10, 20 years, I remember when 7% was free money and we're going back there. When I started in 05, I was getting 9% on a commercial line and that was great. I was like, okay, I was happy with that. And now people hear 9% and they're going, how can I even make money off of this? But, you know, I also don't want to get caught buying a 30 year, seven and a half, 8% note. And then watch my interest rates, you know, when I'm paying on these lines at 6.5%. So I'm pretty careful right now discounting almost anything that is below 9%.

What kind of rates? When you're looking at buying a performing note, how much season are you looking for on the note?

For me, I live in six months. You can get me six on time payments is great. I can with certain. I've got two or three buyers who will go with three on payments. But I've got to hit them right in the cycle. So it just doesn't always work out. One of my favorite buyers, they're doing some other stuff now. And if like this past month I approached them with. I've already approached them this week with 3 million. And they're like, we're buying $127 million project that we're investing in and we just don't have the bandwidth to go through 55 other notes. And so that right there becomes the game. At least I have a pretty substantial buyer's list for these funds. I just need to know, okay, what's in this thing? Because some of them only buy Texas, some will buy nationally. And so when I look at these things, okay, are you interested in it? They might pass this time, but they're a buyer three, four weeks down the road.

Everybody's got different cash flow ins and outs and ebbs and flows of the market depending on what they're working on. So that's good to know that you know your database of where they're buying and what they're buying and going from there. It's a beautiful thing. Is there a specific kind of yield that you're looking for? I know you said 9% loans, roughly a higher interest rate to help with the people that are thinking out there. Because we got a lot of people that watch this have taken non performing loans, worked on them and got them re performing.

I love those. Bring them on, bring them on. People always ask, what about credit score? I don't really care. If something is where the credit score really plays into is if the investor owner finances to another investor. I had one loan, I just couldn't. It got tossed out of probably five, six different sales because it was an investor owned property, cool property. I mean I actually thought about buying it just because I hoped he defaulted and I could have it. It was like a lake house with a boat dock out back. I'm like, very cool. But he had a 434 credit score. He owed everybody money. And so all of these banks are going, this guy is just prime, you know. And the first thing, when an investor, they're not going to lose their own personal house, they'll lose any investment properties they have. So that plays into it. If it's an actual owner occupant doesn't matter as much. Now I do have some funds that like to get these refinanced with their own bank lines. And doing that they require that, oh, they've got to have a minimum like 620 or 640. And then their game plan is that they work with them and then refinance them into brand new loans so their PI, the principal and interest starts all over.

Yeah, we feel that First National Acceptance Corporation, they're wanting a 620 FICO score. And a 10% interest rate, 10% down.

They must spend a ton on postage and letters. I don't know if they're out there. I've talked to that guy like once or twice. But, man, they. I probably get two or three letters a week from those guys. And I'm like, no, I'm like, I just see it with a little eagle in the top corner. I'm like, yeah, I want your 75% UPV offer on my stuff.

And that comes into play because they're trying to make about a 15 yield on their money. For the most part.

No. And that's cool. Everybody business model is different. Going back to what I'm looking for, yield, I look at this completely differently. Just don't focus on yield. If I'm going to originate something right now, I'm going to originate it at 9.9%. And if I'm happy with that doing it, why do I need to all of a sudden count down underneath the 90s so that I can get like an 18% yield on my notes?

So one of the great things, you spoke for a few minutes at Quest Expo and you got on the stage and I love the presentation that you had to rush through like the last minute. It was very valuable. They should have had you on the panel with the rest of us because you know how to market as well instead of just being us all guys. But that's the thing. When I started, you and I started about the same time, unbeknownst I was doing a lot of creative financing, owner financing wraparounds. But I loved what you talked about, how to structure your owner finance deal with a first and a second and a down payment. And I think so many people that love owner financing because everybody thinks it's just great and it is great as an exit strategy. But you've got to realize it's not the heydays in 2004-2008 where you could sell at the closing table. You got to have some seasoning, as you've talked about, you got to have an interest rate that makes sense to somebody who's going to buy. If you give something like a 5% interest rate right now, you're going to take a haircut on that, right? You're going to be.

Yeah. And you know, to any Realtor listening to this, I did a conference call with a Realtor and a seller and they already had the buyer in place and they came up and they're like, yeah, and the interest rate is 6.5. I go, absolutely not. And I Said, I won't be a buyer for that. I said, you want me to discount down there? I go, I don't want to take your note at 50 cents on the dollar, but I go, but that's basically what I need to do to get it sold. So I tell all people, any investors that are originating this stuff, use an rmlo. One, it's the law. Two, your borrower pays for it. So why wouldn't you do it? Your RMLO will set it up. What is it? It's six points above prime to keep it as a qualified mortgage. And I what is six points on a 15 year and six and a half points on a 30 year to keep it as a qualified mortgage and not have it be a hope loan. That's what your RMLO is for. Get one that has great underwriting, great reputation, use them and they will get you the best amount you can. Right now, I haven't checked interest rates this morning, but you know, is ten and a half an egregious interest rate right now? Absolutely not. I'm telling everybody, 10, 10 and a quarter, 10 and a half, go for it. Especially if it fits the parameters and with the way rental prices are, especially in Dallas. Geez. Even in south Dallas areas. I just saw somebody sent out something on Facebook about an hour ago about, I used to own some in this neighborhood, so I know. And I was renting it five, 10 years ago for, I don't know, 750amonth. They're wanting for that same exact place. Looks rental grade. Looks like they haven't done anything to it in decades. And they're wanting, I think it was 1150, you know, and I'm like, oh my gosh. I mean, that's got to make those little townhouse condo things completely off the charts valuable. So, you know, and if that's what your rent is. Yeah. Then you can afford to put higher interest rates on things. And really, I tell Everybody a year, two years down the road, 9, 10% is not going to seem unrealistic at all.

Amen to that. I totally agree to that. I think we're going to see a downturn in the economy and an increase in interest rates. I think values are going to already start to soften up in a lot of places, hot places like Dallas, you're seeing days on market extend a little bit. But I love one great thing you talked about because the idea of 9% interest rate on a house that you buy with owner financing through the borrower, on that you've probably got the discounts and somebody's giving you an opportunity that hopefully that you go out in two years or 12 months or 24 months or 36 months and you've worked in a credit, go get refinanced out with a traditional loan. Right?

Correct.

But a lot say what again, Kristen?

It rarely happens.

I know. It really happens.

I value that. It does. I used to sell that one all the time. I've probably had maybe two or three.

Right. Because people just don't take the opportunity. But what happens though is if you start where you do 100% financing on one mortgage, that's really difficult. But the way you were taught, you want to talk about how you like to have their notes because that makes it a lot more easier for refinance later on.

Right. So this method that I preach to everybody is because money is finite. So when you're an investor, I teach let's scale up a business. If you're going to be an investor, if you're going to just wholesale real estate or just flip real estate, that's a job. You want to be an investor and that means you've got to build long term cash flow and you've got to have assets. But I also believe that debt, especially going into a downturn, is dangerous. And investors, especially new ones, don't understand how dangerous a lot of debt can be. One, it makes you look awful on paper. Nobody will give you any more loans, yada, yada, yada. So you want to do it as debt free as possible. And if you find a private lender, an individual, a bank, even a hard money lender who's willing to let you temporarily wrap that with the idea that your exit strategy is going to pay it off, you need a way to structure that note to pay off your acquisition and your rehab. Any of your costs, take a down payment that you get to keep in cash. And then there's always that second that I encourage people to hold on and keep. So you sell out that first it pays off all of your debt to acquiring that property. You keep a small second, which it might only be 150, 200 bucks a month in cash flow. And then you get to keep your down payment, which are often 10,000 to $20,000 a pop. So when you start really doing the math on that, I've got investors who are doing five to 10amonth of those. Well, if they're adding $200 times five a month, that means that their personal salary, right, their personal bank account is increasing $1,000 a month every month. So in a year they're making $12,000 more a month than they were before. And this is in perpetuity. And they have no debt. They've sold off their first liens. The number one question that I get when doing the first and second lien method is what's the safety there? Because you know the seconds are risky. So if the first gets foreclosed on, your second is wiped out. What I always say is when you're setting these things up, there's a clause that goes into the first that says the second lienholder has the first right of refusal, secure it and bring it good second, so you can go step back in, take over that first and redo the whole thing all over again. Because yeah, you're going to foreclose on them, you're going to get them out of the property, but at least you get your property back and you can take a new down payment and set it up again and resell it. This way, if you are paying back every four to six months, you're paying back your lender, they are going to love you. Because private money, how do they make their money? They make it on point. Really. They're borrowing money as well. And so the interest rate got 12% on it or 10 to 12%, it's really not that much. But where they really do make their money are in those points, which are those fees. And so if you're paying them back every four to six months, they're going to lend you as much as you need to get that done and you can build your business and scale it and actually have a company, not just a guy with a truck.

Get some fans out there. Looks like Jawah giving you an arm there for Kristen. Hello. Florida says good morning everybody. We got some good mornings from Colorado, Portland, Austin, Texas, roughly area. We've got people across the country watching you right now and stuff. So I'm loving the nuggets that you're sharing out there because not everybody's sharing, not everybody shares this. And you're in the trench. People talk a lot of theory, they don't talk a lot of activity a lot of times. Right?

Yeah.

You're in the trenches buying a regular basis now. Are you buying from banks? Are you buying from hedge funds? You're buying from private investors. What's kind of your mix of where.

You'Re finding Where I'm actually finding these? It's a mix. I like the mid level organized investors, which are actually closer to a firm. These guys have been around for years. They've been doing this, they've got a whole team behind them. Those grades are great to buy from. They've got the experience. But my average person that I buy from mom and pop, and in some cases, they couldn't sell their own house, and so they owner financed it and they just want out and they want their underlying lien paid off. They don't want the stress. Or maybe they want to go buy another house. That was the one thing that I did first when I was learning who to sell these to and how to price these things. I took my own portfolio, and anything that I had wrapped subject to that was what went first. Why? Because I had a responsibility to these homeowners that I had picked up their houses for and wrapped. A lot of them had. Were under the impression, oh, they're going to refinance in 12 to 24 months. And that never happened. And then they're calling me up going, you know, we really want to buy another house, but this is still on our credit, and it's making our DT look bad. And can you help me out here? And so getting those sold and paid off, I think is the right thing to do. But again, every investor is different and their business model is different.

You do a great job of marketing and networking out there to find your deals, right?

Correct. I basically am throwing everything against the wall to see what sticks. So a good friend of ours, Ryan Harper, who I love, I am anything propelio wants, I'm like, I'm right there, and I'm promoting Propelio nonstop. And Ryan helps me out all the time, too, Just promoting me for, you know, if, hey, if you've got a note to sell, call Kristen. I mean, he's even doing it on Instagram for me, which is freaking awesome. So a lot of it when you're out here networking, it's meeting really great people and hanging out, having a drink with them and then going, all right, how can we help each other? How can we promote things? You know, would you like to. You're just like, oh, come be on my show. And I'm like, absolutely. I'm like, that sounds great.

And we got some questions on here. People are asking Jeffrey Wolf out of San Diego is wondering, are you going. Are we going to see Kristen at note camp, our online note conference, which is slated for November 15th, 18th, and yes, I've already asked Kristen to be on there. She's working on her schedule. Right, Kristen?

November 15th to 18th. Yeah, I'm in for that.

I know you're going to be traveling. Otherwise, I think you'll be in Vegas when we originally had it scheduled, which is.

Okay. Okay. So I didn't know what happened to that. I'm like, all right, well, I haven't heard anything on this, so I'm just going to hang out by the pool all day. I hope I don't get a text from him that says, what are you doing? Yeah, so no, I went to the Flamingo pool party all day on Friday. We're coming alive doing a thing for.

My hotel party for note Camp 6.

I actually thought it would have been fun, you know, I'd just be on my iPhone. I'm like, hey, everybody, check me out here.

Yeah, it would not be the first. We've had people do different things. We scheduled to be on and I'm seeing your travel to Amsterdam and Florence and you were just at the Blue Lagoon yesterday or the day before in Iceland as well.

Yeah, like two days ago. So kind of a culture shock coming back here. I got off the plane, I think I was in town less than 24 hours to make it to Ryan Harper's propelio meetup. And he's like, where's your costume? I'm like, dude, I'm like, right now my body thinks it's 2 o' clock in the morning. I'm like, you're lucky I'm here.

Uh huh. Stephanie up there says Kristen sharing some wisdom in the trenches, which is good.

Thank you.

So what are your mistakes that you see people making out there that are coming to you with notes? We talked about low interest rates is one of the first things they think.

One that I've been talking to and he's a newer investor and he wants to sell these things. That's his business model because he's using hard money. He's wrapping these. His lenders understand that he's doing that and they've given him permission and that's cool. But they want to pay it off as soon as possible. So he sent me three and he did the first and the second. And the first and second have to be serviced separately. Not sure why they were set up together, but they literally added all the numbers together. The servicer did, I would say probably not use that servicer anymore because that was. Yeah. And he goes, well, I'm going to need you to talk to them and straighten this out. I go, man, it's called moving your servicing. Because I'm like, I don't even know where to start if I have to explain to a servicer how their business should be run. But those have to be. That's a mistake. But I mean, that's a mistake his professional made. Lower interest rates, I've heard, even at 8%, and they're like, oh, well, you know, they came with a certain discount. You have to remember that you need an exit strategy and you need to protect yourself. And I tell everybody, you don't have to sell every note. Would I like to buy every note from you? Sure, absolutely. But you don't have to sell every note. In fact, you should keep some. You know, it's like the rental property theory. You know, if you buy five rentals or five fix and flips, you keep one as a rental and you sell the other four so that you can pay off any debt you have. Well, it's the same thing that goes with notes or owner finance properties. So if you're originating these owner finance notes, you can't keep 100% of it. You've got to pay off the debt that you got there to keep them debt free. So as far as interest rates, don't think that you're doing any favors because you might think, oh, I'm going to keep these for 30 years. Five years down the road. All of a sudden you have a sick parent that you have to pay all the medical bills for or your daughter's getting married. There's so many things that come up. And so it's called keeping all your options open and having multiple exit strategies for this stuff. If investors can get that in their head and go, all right, what am I going to do with this property? What if that doesn't work out? Then I'm going to go to the next step. Then I'm going to go to the next step, have three, four, or five exit strategies. So, you know, people are asking me, well, how long do you think this is going to run that you can buy notes like this? I go, I don't know. First time you, first time me. I. I have no idea how long the demand is going to keep up like this. It's huge. Right now, my biggest problem is I can't get enough paper. I have way more demand from my buyers for this stuff. I'm trying to think of other errors. He's going to know. If he's watching, he might be watching. There was one about a year ago, and he tried to set it up in the first and the second method, like what I was teaching, and she didn't have a down payment. So he decided to tack that on at like, I think it was like 20 or 25% in a third. And it was. Yeah, it was like she was 5,000 short. And I looked at this mess and I'm like, dude, I don't want any part of this. I'm like, forgive that. Third. I'm like, are you serious? Anyways, in the state of Texas, I go, this is on somebody's house. Granted, it's a third lien, so maybe you can charge 25% interest, but it was insane. I talked to him a month ago and he's still trying to get this lady out of this house. And you know, she doesn't. She'll make a payment here or there, but it just makes sure that they have enough skin in the game and don't get desperate. There's no reason to. There's going to be somebody who shows up with 10 to 20% down. And if you go and take somebody for like a rental deposit, take $2,000 and move them in, they'll just walk away. They'll put their keys on the mailbox and you won't ever see them again.

Yeah. They won't have any equity into the property and be one. And actually pride of ownership, they come from that rental background and that's how they're going to treat the house. Like a rental, not as their own. For the most part.

Correct. And that's another thing that I get. And I know this throws in the face of everybody else teaching notes and how to do it. I don't mark any properties up. I look at the day of the appraisal. I know, you know, I hate it. And the analogy that I give for this for all of you Texas people, how many people have ever been swindled by New Western? Right. They send out a property, it looks like a great deal, but their ARVs are inflated, their repairs are underdone. And so when it gets time to it, you've actually paid retail for this house. You're expecting to make all this money and you actually end up losing tons of money because then you've also got carrying costs, utilities money costs, yada, yada, yada. So I equate inflating a property up like that. The worst one I've ever seen was about a year ago. I don't even look at his stuff anymore. It was 167% loan to value and they put 10 or 12% down. And I'm like, this jerk literally sold the house for twice what it was worth. Is it. Were they making their payments? Yeah. The problem with that is I look at that as it's a future failure because they Might need to sell that house and move. Maybe they get transferred, maybe they get sick, maybe something and they're trying to do the right thing, right, by selling it. Or they can't even rent it at that price. There's no money in that. And so if you put somebody and you basically handcuff them to that house, it's going to be destined for failure. The rule of thumb, and people don't realize this, when you sell a house and move, it's going to cost you about 10%. It just is. You've got realtor costs, you've got moving fees in there. And so you need to make sure that you've got at least 10% down. And so if the house is worth 100, you sell it at 100, you take 10% down. The max loan to value that I buy at is 80%. I will fudge a little bit and go above that. But right now I've cut it off at 85 just because it looks terrible on my portfolios when I'm going, oh yeah, here's a 97% LTV note. And it inevitably gets tossed out anyways. That's a big error that they make. Unless your business plan is to constantly get that house back and get another down payment. And some people like that. I'm in the property owning business. I'm in the money lending business. And so like a bank and guess who makes all the money in this country? The banks always make money. So don't think that, oh, I'm going to do this and it's so smart. And you know, every year I get another 10, $15,000 down on this thing. It's really not, I don't know guys who do that, that you don't ever get super successful in this business.

That's the truth. Laura Blunt. I'm glad you said that. I thought I was just me who didn't like New Western.

Laura, you're not alone. Not alone at all.

Yeah, they hire a lot of new agents that don't know anything about real estate investing. So they're being coached on things. I had to re educate somebody. An agent called me the other day. I said, okay, what do you have? He's giving me these numbers. Like, wait a second, it doesn't make any sense for me as an investor. Doesn't make any sense at all. Your numbers are way under overvalued and under skewed when it comes to rehab. Like you said, all I said, you should double that number and then deduct your value by at least 20% and see how the numbers work there. He's like, well, does it make sense? I'm like, well, that's how it works. Gotta keep that in mind, you know.

Yeah, well, it's a revolving door over there. So it's a whole bunch of new faces every three to four months. I'm always shocked about the ones that actually last, but I mean, I've seen some pretty bad stuff come out of those companies, like just out and right broad. If you actually look at their packet and go research those comps, they changed the dates on them.

Yeah.

I'm like, these comps don't even exist. I'm like, does anybody ever verify this stuff? I think if you're a brand new investor and you don't know any better and you don't know how terrible they are, you're looking at these things that they produce, these file, you know, the packet that they give you and go, oh, look at this. You know, everything's sold. I've seen ones that are actually fraudulent.

Yeah, it's just not them too. There's a lot of, I guess you'd say wholesalers out there that are changing numbers or adjusting things too. So unless you're buying it for yourself, most people won't put the right work into it or they'll fudge numbers on their thick trying to get somebody sucker to buy off of something that's overvalued.

I've got four properties under construction right now here in Dallas and I'm shocked at just how cost of materials and labor has skyrocketed in the last couple years. I mean, we need a correction on that. It's on Most. I'm putting 55, $60 a foot into places and I'm like, I can barely afford that. Again, I'm not in the flipping market. So I'm not a buy fix sell. I'm a buy fix hold. So I can afford to do it a little bit more. But at the same time, it's tight out there. I don't know how anybody's making money flipping houses right now.

Well, I think we learned from you because I was cracking up when I heard you speak the first time about how you love to use Facebook Marketplace to help you with your rehab or.

Share that I have this ridiculous huge following now over that presentation. And you know, I gave that thing because Ryan Harper mocked me, totally just mocked me on it because I showed up at one of his Mastermind things like on a Monday night and I walk in, I'm like, you're never going to believe what I just did. I just sold carpet. Carpet for 40 bucks. And you are like. He goes. He goes, I know you're doing well. You're doing tons of note deals. I don't care about $40. I'm like, because it's awesome. I still use carpet, you know, on Facebook marketplace for $40. So I'm a big believer in that. It's one of those things I started doing 10, 15 years ago, and it was fun. But, you know, when you can actually. When you actually do the numbers and you figure out what you actually save on demo. And. And I love the shout out to all, like, the green people out there who are like, oh, and I love what you do because it saves the earth. Yeah. Well, you know, mine is more motivated by money, I gotta be honest, because I just like getting 40 bucks cash. But it's more just the whole principle of it that you can literally sell anything of a rehab project on Facebook marketplace or Craigslist. Craigslist is a little less followed now with the onset of Facebook Marketplace. But I'm actually buying stuff off Facebook Marketplace, you know, because there's great deals. It's a great place to trade materials or do whatever.

So why don't you give a list of the items that you sold on Craigslist Marketplace for our fallen out there?

Because number one, number one seller, people put them in the garages. They will have a rental property that, you know, is destroyed, and they need. They need just a hodgepodge of cabinets. And people buy this stuff and put it in their storage. So when it comes off, they need it. So I sell kitchen cabinets, 10 by 10 kitchens built 1960s, 1970s, that old stuff, for a hundred bucks cash. And I make sure that they take the formica countertops and kitchen sink with them as well. As long as they come, remove the whole thing. Great. The last one that I did, which everybody I had over, I forget what the number was. This is when you saw it. I had over 900 responses for this Home Depot special vanity. And it even had a hole cut in the side because the plumbing was all weird. And I had three men almost getting a fist fight over this Home Depot bathroom vanity because I put it up there for 30 bucks. And I'm just like, you can go to Home depot and pay 100 for this thing. I'm like, I'll put $30 on this. I had people rate me poor. I've got poor ratings as a seller right now because I sold it to somebody else I know. And I'm like, I'm like, can I edit my comments and go, hey, I said it's 30 bucks cash. First one here to me gets it. I'm not holding this for anybody. So, yeah, she's very apparently, this woman. If you go look at my Facebook marketplace ratings, I'm like, please rate me. Well, just somebody out there who else bought from me. Give me five stars. She was awesome. I got the deal of the day from her. Yeah, no, those people never leave responses. I only get one star from these losers who don't get it.

Hashtag.

I'm like, I'm like, like, look at my. I'm like, it's. You know, if I had the score on Uber, I'd like cancel my account and restart a new one. I'm like, how do I do that?

I was cracking up that you're telling a story. Propellia meetup. I was just laughing my ass. I was like, that's awesome. If you're hanging out there anyway, waiting for vendors to show up or waiting for plumbing crew, you're working on your computer, your smartphone, you might as well maximize it. And mama needs a new pair of shoes. Right?

Yeah. You know what? Yeah, I blow it on shoes, I'll blow it on shoes. I blew all of that on that one. On that one presentation. Yeah, that went to Napa. That I literally drank all of that money. Yeah. No, it is funny the amount of people who are now trying it. They're like, this is great. They're like, yeah, they're like, I made like 600 bucks doing this. Yeah, you can, you can make a ton. So thank you, Laura. Thank you very much.

I think Laura saw you down in San Antonio there. For you. Now, you also run a big networking meeting once a month too as well, Right?

Wanna talk about that Real estate investor social club. Next one is in Addison, Texas, up here in Dallas, Wednesday night, 6 to 9pm it's different. I don't let anybody sell anything. We've been doing about four years. Nobody's allowed to sell anything. Nobody's allowed to pitch to you. I do have vendors and sponsors, so, you know, I like people to talk to them, but it's one of these things. They're around the room, they're mixed in with everybody. You can go find a contractor and go talk to them or not. You know, maybe you're just want to talk to the insurance person or maybe you just want to meet the new title company. You know, you're looking for that. So it's a much different group that you get there. Surprisingly I have a ton of very, very experienced investors, and then I have brand new investors every month, which is great. And the whole key is to be brave. Yes. It's sometimes hard to go there alone. And, you know, but that's why we give a couple free drinks. So you get two free drinks and free food. And so you have a drink and you go and you meet as many people as you possibly can. I don't have games involved with it. It's really just going, all right, who do you want to talk to? And, you know, some of the Shire people, they'll come up to me and go, okay, well, this is what I'm looking for. And I'm like, you know what? Awesome. Let me introduce you. And I'll go, this is who you need to meet. Let me, you know, and I'll bring him over. So I basically play matchmaker the entire night.

The matchmaker. The dirty carpet diva.

Dirty carpet diva. All right, to be fair, that was nice carpet. It was like brand new. I bought the pig. I knew it was a pig. And they just put some fresh paint and some brand new carpeting down. But it's one of those where they carpet the bathroom floor. Oh, you know what I'm talking about. And it's brand new carpeting. But you're like, okay, yeah, all of this is gone.

So, in Napa, what's your favorite wine? Since we. We go to Napa pretty often as well too. We're a big fan of Napa and Sonoma and vineyards.

I'm trying to remember, my favorite vineyard was the last one we went to, and I can't remember the name. I mean, there's some fun vineyards to go to. You know, you go take the cable car up or the one that looks like a castle and stuff like that.

I know what you're talking about. The one looks like a castle.

Yeah, yeah, yeah, yeah. But my favorite wine, La Crema would probably be my favorite Chardonnay. Right? Super good. I did not go visit that winery, but La Crema Chardonnay would be tops for that. As far as reds, Not a Napa drinker of reds. I drink Willamette Valley Pinot Noirs. So kind of snobby on my Pinot Noirs.

No, it's good to be snobby. And a good Pinot Noir. Nothing wrong with that at all. Nothing wrong with that as well. That's good stuff. We'll all have to get together and drink some wine at some point.

I cannot wait. I cannot wait.

Good stuff out there. Well, hey, what's the best way for people to get a hold of you, Kristen, if they've got a note or want you to make a bid on something, I'm sure you don't want to take a phone call with a lot of you. Do you have like an online submission form or anything like that?

I'm working my web designer right now is working on online submission form for us. You can DM me on Facebook, send me an email. Pretty much you can find my cell phone number about everywhere. Actually think it's on the website. So you know, if you find it, call me up. I'll answer it. I'll talk. Text is really the best.

She's good about investment. You got a deal. Great. Ever take a look at stuff like that? Guys and gals out there, you may get bombarded with some deals out here because we've got a pretty good large following. But not only here on Facebook live, but also when people are listening to this on itunes, all that good stuff. Once again, Kristen, thank you for hurrying back from the blue lagoon to be a part of this. I know this is the number one thing on your schedule to get done.

Yeah, thanks for having me.

No problem. No problem. Another once again, guys and gals out there listening. Check out Capricornmortgage.com that's Kristen Gerst on Facebook. Kristen Adam Gerst is her Facebook profile there as well on there for things but you're in the DFW area. Great person network with does a great job in marketing. She was also at the quest expo and you'll see her around as well. And you will see her in the upcoming note Camp 6.0 here in literally. Wow. It's hard to believe. About a month and a half. So once again, everybody, thank you so much for coming in this morning. Kristen, thanks again so much for providing some great knowledge. Great nuggets to everybody out here in note nation.

My pleasure.

Awesome. All right, guys and gals, that's going to wrap it up for this episode of the nut closer show. Go out, make something happen. Make some offers, go get some stuff done. Just take some action. Now is one of the best times we doing is we dive into the fourth quarter of the year. Banks will having bigger discounts. Banks are going to move stuff off their books. Sellers are looking to get stuff sold. So now's the opportunity. The only thing like I say before, the only thing you guarantee by not taking action is failure. So go out, make something happen and we'll see you at the top, everybody. Bye. Sa.