EP 690 - Banks Are Robbing America, Become Your Own Bank Now!

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, hey, hey, everybody. Good morning, good afternoon, good evening, everybody. Welcome to this episode of the Not Close show. As always, Scott Clarkson, excited to be here with you today. Wanted to talk a little bit today about some of the stuff that's in the headlines that came out actually this past Friday. What am I talking about? Because there's a lot of headlines these days and if you're not watching the news, what are you talking about, Scott? Well, I was actually surprised because I didn't see it till yesterday. Yesterday being Monday, today's being Tuesday. And it was that all the large institutions, Wall street, the banks, Chase, Citi, bank of America, all reported record earnings in Q4. Now that kind of caught me by surprise. I don't know about you guys, but many banks are short staffed. When I started thinking about things and started thinking about it, I was like, something doesn't sound right. They made record profits in Q4, which is supposedly a down quarter for most folks. And I started looking at things and the aha light went off. How are they making these types of profits? And I look back and you have to think about this. We as Americans are actually saving more than we've ever saved before. Balances on savings have gone up dramatically over the last couple years, especially the last two years. People are saving more for a rainy day, saving more in case they get laid off, saving more in an emergency fund. I guess Dave Ramsey is probably pretty excited about the fact that a lot of people are saving, which is not a bad thing. You should always have a bit of an emergency fund. But the big caveat, I'm going to say this, the banks are literally robbing us and we're just sitting there smiling as they do it. What do I mean by this? Well, if you look at something, you go to your local bank, walk in your bank, just, or go to your website, whoever you bank with. And if you're watching this type in the chat roll, hey, where you're from, who's your major bank? Who do you bank with the most? You can put that in the chat roll. That would be great because when you look at the reports of all the bigger banks, especially bank of America had a record earnings record, distribution Their stockholders. It comes down to the fact that guess what, we're giving them money and they're not paying us anything. Like I look at my bank, my bank when I pulled up this, the high yield savings rate, the high yield CDs, high yield checking and they're giving you 0.01%. Oh wait, if you've got a relationship, we're going to double that to 0.02%. Not even a full percentage point. Hundreds and hundreds of interest rate for you to deposit money with them. And you know what? They're doing that money. Do you think they're just letting it sit there? Hell no. They're taking that same money going out and lending it out on mortgages at 3% or 4% or they're lending it out on consumer loans at 7 or 8 used cars in the mid teens or even credit cards at 18, 19, 20%. Now they're paying you 0.02 and they're making 20%. Is that a 19.8% difference? No, it's not a 19.8% difference. It's a 19,800% difference. That's why they're having record numbers, because we're giving them more money. We're giving them interest free loans for them to go out and run around and invest in everything, make all this money, have record profits. And I don't know about you, but when I was doing that and I was preparing for my Night in America episode and I highly encourage you to go over and check out the Note Night in America podcast or register for our next Monday night webinar@notenightin America.com, i got sick. Cause I started comparing it and I said okay, what's a high yield savings? And when I said the best savings account in America, it was 0.5%, half of 1%. And that was like with Charles Schwab, it's okay. What's the High Yield Savings Account? Cause when I was a banker back in the day, and I know CDs, certificates of disappointment as we like to say, say they aren't like what they used to be. When I was a banker back in 2004 through 2008, CD rates were somewhere around 3 to 5%. I would have literally people that would come my bank moving hundreds and thousands of dollars from one bank, like from bank of America across the street to my branch at Chase for a 18 interest rate difference. And it happened over and over. 4%. Oh, four and eight, four and a quarter. It was like the CD wars back in the day. Okay, now that aggravates the crap out of me because you look at that, the high yield CD, 0.7%. So I said, okay, if I have $50,000 and I have it in a high yield savings, how much is that going to pay me in a year? Well, you don't have to be a math wizard. 7 times $50,000 is $350 in a year. That's all that you would make in interest. That's a high yield savings account. Well, as a real estate investor, if I'm looking to invest where I have people that want to bring money we want to partner with, or I'm going to use their money fund, I was like, well, if I give them 6%, I give them 6%. 6% times 50,000 is how much? That's three grand a year. So if somebody doesn't know about private lending, to know that the opportunities, their ignorance, I hate to say this ignorance is bliss sometimes, but their ignorance is costing them anywhere from 2,500 to $2,700 a year in lost returns. And we as investors, we as real estate investors really need to be shouting from the top of the roof that we have opportunities. Now, what can you do with a 6% return or money? At 6%, you can do a hell of a lot. Now, I know that many investors are used to paying 12% to hard money lenders or they've got their partner with other people, other investors, and the investors fund they want to make 12%. I get it. But that mentality, you have to stop. How am I going to find the money to fund deals? You got to market. And in yesterday's episode, previous episode, we talked about how to market more. But you got to realize, ladies and gentlemen, there is so much money sitting on the sidelines, no wonder the banks are getting bigger. When you look at the fees they charge for little things, it's a negative return on investments, a negative interest rate. Okay, to us. And then we got to fight inflation. And more and more people are looking at their bottom lines. They're looking at their statements, they're listening to the news and they're paralyzed because they don't know where to tune or to turn to. And they don't know the opportunities available to you. Now, there's a lot of deals out there at 6%. You can buy performing notes, you can buy turnkey properties are going to be yielding better. But 6% money is pretty cheap, really cheap. And you not have to jump through all the hoops getting qualified like a bank does and have A FICO score and a loan to value aspect of a lot. I mean you still want to make sure that you've got a good deal, right? But you don't have to go through all the qualifications and two years of seasoning or two years of employment and all that stuff and have a FICO score of six point greater. No, no, no, no. There's so many IRA investors out there, so many people with money in an account making nothing because 0.01% is nothing. Let's just face that the banks aren't giving us anything and there we're just giving it handed over to them and they're going out and doing their married business and they're literally, as I say, robbing us straight to our face and laughing all the way to higher returns. But it doesn't have to be that way. You have the opportunities of real estate investors to start educating people, sharing with them, like listen, here's what it's costing you per year. Yes, the bank might pay you 250 to keep a balance of 50 grand. But if you want to put it makes an above average return where I can pay you 8 to 12 times what your bank is offering you and you walk away with $3,000 versus 250. Now what makes more sense making 250 or 3,000? These are no brainer questions, but these are things to ask. Now not everybody is sophisticated. I get that not everybody needs to be in real estate. This would be a very passive aspect of things. But you're not going to pay them more than that because they're not doing the work. If they were going to go do the work, they wouldn't be worrying about.01%. Most people unfortunately are very financially uneducated out there. That's what's gotten us into trouble in the past. They don't know what they're invested in. People don't know, don't know the opportunities. I know a lot of investors obviously want to make 12%. And this is one thing that we, and I say we as real estate investors we are probably guilty of is surrounding us ourselves with like minded people. Investment clubs, real estate clubs. And we're all looking for at least 10 to 12%. But we're only with that group of people you can kind of brainwash yourself thinking that's all that's available. And I'm probably guilty of this like anybody else because I've done that in the past myself. I'll give you 12%, make it a no brainer. Well, when there's a lot of money. He who holds the gold makes the rules. And here's the thing, ladies and gentlemen, if you've got a deal, you've got the gold. It's not the people with the funding, that's no longer the gold these days. The gold is putting money into an investment that's going to pay a decent return on investment or above average compared to the bank. That's really your high yield saving. That's your real high yield investment is much better than the banks are offering now. There's no FDIC insurance. I get that you still want to do your own due diligence making sure you're not financing really above probably 75, 80% of value in case something does go south of the bars. You got some room there. If you do need to foreclose, you've got to have some clauses in the stuff. I prefer it's good to have an arbitration clause in your agreements, but setting things up on a servicing agreement with a third party handle on stuff will take a lot of the work out. But there are so many performing notes out there or newly originated notes with a little bit of seasoning. And what I mean by season, that's where somebody's gotten a note and they've paid at least three to six months on time. That's what we call seasoning in the note business. That those can be phenomenal deals. I mean 6%, not bad. But I got a student, I just got 4% because the guy was making zero. It's all about what you can negotiate now. If somebody's happy at 4, why pay them 6 if they're happy at 4? Hey, feed them, feed them. I got more deals for you to find at your our normal thing. There's plenty of capital out there. And that's the thing. It can't be greedy in this business. You've got to pivot, you've got to adjust your plan to make things happen. Now somebody asked me, Scott, are you sure there's investors out there that would be happy making 4%? And I'm like, yes. Here's the thing to look at. And this has come from research that we have done. Every year I target, I look at our top 40 top 50 markets out there that we're looking in or that listeners like you are spending time in on our channels. We can see where people are spending the most amount of time from and where our audience is at. So I picked the top 50 cities, states across the country and then we do some research with some data companies to find out the number of IRA investors and number of investors in specific markets, that number going up. So we know how to spend our best marketing buck. Right? Well, one of the things that we found from doing this in 2020 is that there's a lot of people out there. I mean there's millions and millions of people that have an IRA now. I don't know what type of return they're getting. Don't know if it's an investment or sitting there idle. I will tell you this, talking with the likes of folks that run like Quest Trust Co. Equity Trust, Newview and other things like that. Overwhelmingly Those self directed IRA companies that have assets under management, it's about 30 to 40% of assets under management are making zero, they're making zilch because they're sitting in non interest bearing accounts waiting to go to work. People get all excited about doing a rollover. They want to do some work, that sounds great. They take a class and you know what happens? That's the easy part. You mean I actually have to go out and market to find a deal? Well, I'll just leave it there so I'm ready when it's ready to rock and roll. And look, we've all been there, we've all have that. But those are opportunities for you if you've got a deal. Hey, I've got a deal. Great, I'll put you in it. This deal is going to pay 4 to 6%. That's not anything you're gonna go home to, but at least it's going to work. At least we're putting your money to work. Because if it's not making anything, it's just there for another year. Did you make zero or did you lose money? You lost money because you start adding in the annual fees and other things. You lost money by not putting the money to work. And we have seen that really start to work when other students of ours or us, we start sending out letters to people that have pulled the trigger. Literally people who have had an IRA and pulled the trigger by buying a piece of property. It's really easy to go to the county records appraisal districts or the county porter's office to do a search by self directed IRA companies that will pull up people who have lent money, other IRA or who have bought a property of their ira. And these are people that I've pulled the trigger. But they also understand the value of put their money to work. And that's one of the easiest ways for you to raise capital out there. Now if you play the law of numbers, that A lot of people aren't making anything or they're making zero to negative. Even those that have taken action, 30% of those that take action will, is still sitting there making nothing. And then you add in another switch to it that we found that roughly 67% of people that have an IRA have at least 150 grand or more. And that number of people that have an IRA is a lot bigger than those that have a truly self directed IRA like Equity Trust or Quest or something like that. It's literally the largest tsunami, largest wave potential, low interest, high yield to them, but low interest money to you guys to do what you need to do and you have to share it. You have to start going out and talking with people. You got to start sharing things. Hey, how's that working for you? Did you read this? Did you read that? The banks make record record earnings and literally the news is doing all the marketing for you that you really need to do. They're sharing all these things. They're sharing the doom and gloom, they're sharing the inflation, they're sharing things over and over and over again. How bleak it is out there that people need to do something now. People are just looking for things. And if you're a movie fan like I am of the American president, Michael Douglas, Kirk's son, who was in that, talked about the fact in the absence of true leadership, people will listen to the loudest person out there. Oh, we all agree that our leadership in Washington, no matter what side of the aisle that you land on, is not very good. If the news is just blasting loud negativity, there's nobody there to come along and say, hey, I've got opportunity, I've got hope, I've got faith. I've got something that can help quell this and help put you on the right path. And that's you. If you're listening to this, you're watching this or reading it, whatever you're doing on the different platforms that we roll this podcast out, you have an opportunity. I'm willing to bet you've got a bit of an investor bug in your entrepreneurial bug in you. It's a matter of you just talking to people. Now if you don't like talking to people, I get it. Maybe you need to send a letter out, maybe you need to do a video where you just do it once and post it to your website. But people are begging for opportunities and people are looking for them and there's never been a better time to make things happen. They always say more money is Made in a down economy versus an up economy. Well, here's the opportunity of a lifetime. This is where you can become that private bank. You can stop the raid on America. Maybe that's a bit extreme, but I'll live with it. You can help people become your own private bank. Paying them 4 to 6%. You taking that money going out and making 4 to 6%, it's a performing out you're paying them for. You're making not just 4%. You're making an infinite rate of return because you're making money off of using somebody else's money and you're arbitraging those funds that somebody's giving you. They're happy at 4%. You're paying them a way above what their bank is give them. You're also putting them in a passive return boom set with a servicing company. Get paid out monthly or pay quarterly, whatever you want to do. But you have the opportunity to do that. And if you're watching this, hey, feel free. Type in the chat role. We watch, we monitor all of our platforms, YouTube, Facebook, make sure you subscribe to the podcast, subscribe to the channel. Highly encourage you to do that because we've got a lot of great stuff that we're rolling out here over the next few weeks for you with a new year and new content, stuff like that for you. But you have to take action. It's just a conversation. It's literally a conversation. If you're looking to do this, hey, reach out to me. Schedule a call with me. You can book a free call only@talkwithscottcarson.com that'll take you straight to my calendar. We can talk about what you're focused on, what you're looking to do. If you don't want to do this, but you've got money, burn a hole in your pocket. You've got money that you need to put to work. Hey, do the same thing. We can talk about your goals and some strategies and share with you the opportunities we've got or some our students have. We've helped train thousands of people over the last 10 years, and I would say we've trained the who's who in the node industry and an amazing job of that. And they're just out. We're very proud of all our students going out, kicking ass and taking names. But one of the biggest things I heard over the last year, in the last two years, is there's no deals. There's no deals. And I'm like, there's no deals. If your money costs you 12%. There's no deals if you're not marketing for cheaper funds. Now if you do market, you can put some deals together because people right now are desperate, desperate for an opportunity. If you find an opportunity, it makes sense. You do your due diligence. You never want to put somebody in a bad deal. I get it. You have the opportunity to put some things to work and start making a great return. And also helping people make a great return on their retirement, their savings, their checking accounts, their certificates of disappointments. They're all 401ks that hopefully don't turn into a 101k. They can put that money to work and get rock and roll. Now we are minus if you guys have questions, comments, type in the chat roll. We're glad to answer those questions of anybody out there. Love to hear where you were at. We got people joining us from all across the country on this. Here's the thing. I don't care what market you're in, there are opportunities. Now there are some markets I don't like to spend my time in and those are primarily the very long foreclosure states like New York, New Jersey. I don't buy a lot anymore in Chicago because it's difficult to foreclose there. Kentucky's got some weird laws when it comes to buying notes there. There's a lot of opportunities, whether you're in California, on the east coast, the west coast. And the cheaper your money is, the more opportunities you're exposed to. And one of the mistakes I made early on was saying, hey, let's just do 12% or go split C's don't need to do that. Should never have done that. I can remember Julian Sadati tell me, oh, I, you don't need to do that. People aren't going to work. Give them 6 to 7%, they're happier than a pig and slop. And that's really the truth because if the people aren't going to do the work and they can make 6% to do nothing, that's a win win in my book, everybody. So what are you investing in? What are you looking at? I mean, you start applying this, it doesn't just apply to notes, it can apply to rentals, fix and flips, Airbnbs, commercial syndications. You can really do some good in raising capital and put some money work. It should open up your whole eyes and opportunities to a variety of different places to go to work. Whatever your focus is, whatever your niche might be. And then like I said, while mortgage interest rates are Low and it was a three and a quarter I think is what I saw was an average 30 year mortgage right now. It's still, that's still cheap at 6% is a bit more, but that's still cheap compared to the 8, the 10, the 12, the 18% it was back 20, 30 years ago. There's still opportunities out there. It's literally if you've got a 9 or 10 cap rate on a deal, that 4% money is still a phenomenal. You're doubling what you're paying your investors and that's usually a really good win win across the board there for you. So like I said, one of the easiest ways to raise capital for that is literally going to the county records. Hey Andres Anderson, good to see you buddy. Hey mate, good to see you there for you. Thanks for joining us in and commenting, appreciate that. But one of the easiest ways is literally just go to Netra Online. Actually I'll type in at comment here. So Natural Online, so you know exactly which website I'm talking about natronline.com to go to that website. It basically pulls all the county records together all across the United States. Sorry for our international friends watching. I'm not sure what's going on there. But if you go to Natural Online, you'll see a map of the state you want to hit unofficial public records. It'll ask you to pick a state and a county. So like here in Texas, I would pick Travis county and then I would look at and go to the Appraisal district, the Central Appraisal District, Travis County Appraisal District. And then I would go there and ask for a name. I would type in Equity Trust or Quest Trust Company. Those are the two biggest self directed IRA custodians out there. Now you can do Pensco and Mountain U and Ira Services, all the good stuff there. There's literally 50 different companies out there that handle true self directed custodians, self directed IRAs. But if you do that, I guarantee you'll find, if you do a search for all of 2021 or 2020, you'll find 135, 150 really for about each name. And then if you go over to the recorder, which is where people are filing their mortgages or their deed of trust and stuff like that, where they're lending money out of, you'll find another double amount. So you literally find roughly somewhere around 400 to 500 IRA investors who have money, who pull the trigger looking for deals so you instantly have something in common with them. They're a real estate investor and they're smart, they're understanding. Yes, some of them may want a higher yield, but you know what? In the law of numbers, I guarantee if you send out 100 letters, you're going to have something that responds and you can close the deal. And all you need is one willing to lend you 25 to $50,000. It'll pay for the whole shebang of mailing out 100 letters a month. And this is one of the easiest drip marketing campaigns you can do. You can talk about sending out something once a month. A letter, a postcard, a past deal, a current opportunity. Those are simple things to send out to and just sharing the content. Hey, here's a deal that I'm working on. Here's a lunch and learn webinar. Here's a asset that I'm reviewing, or asset that's in your neck of the woods we'd love to fund with you taking a look at things. Reevaluating and looking at things through a new set of eyes, I think is one of the most important things I could tell you as a real estate investor to do. Look at that stuff. Take the time. If you're struggling, take a look at things, because money costs. Like, I had a coaching call with one of my students, Paul, today, and he's been trying to buy performing notes. And his money costs. I asked him what his money costs were. Oh, the guy wants 10. And I'm like, well, what's the mortgage paying on this one? What's 10? I'm like, there's no room there for you, Paul. What are you gonna make, 50 bucks a month difference between what you're funding at versus what the UPB is and stuff like that. There's no money. There you go, give blood and make more than 50 bucks in a month. You could go down here to barbecue place. They're paying 28 bucks an hour to slice brisket. That would be something I would do. That's awesome, right? But that's Terry Black's last time. I said, they still can't find enough people slice brisket. But the point is, you got to look at. Listen, you have to go back to your Investor who wants 10%. Are they active? Have they done anything? No, I said, who offered 10%? I did. I said, you got to go back to them and say, listen, I made a mistake. I can't offer you 10% because I'm getting bombarded with people at 4, 5, 6% who want to go to work. And what would you do if you're in my shoes. Well, if you're in my shoes, I would take the 4 or 5%, not 10%. So that do you want to get in a deal or do you not want to get a deal? And it's all about next. He's like, well, Scott, most of my marketing is just, I don't have a big social profile. It's just in these Facebook groups. I'm like, well, get out of the water. You're dealing with a bunch of sharks. And we as real estate investors, we're sharks. We all want to make above average returns, right? That's why we get into distress notes or fix and flip property or things like that. Like that. You know that water, you're just fishing with other sharks. Get into some new waters, go out and network, go out and talk to people, pull a list and send out. It's easier than you would think. And actually raising capital is really, really easy if you just get out and share that you know what you know and that you are putting things in place to protect their investment and protect their opportunities. So what questions do you guys have that are watching me out there? I just want to make sure that we're monitoring the chat. Glad to have you all here. Join us here today on the Note Closure show. Like I said before, we'll be doing more of these live streams. You can always watch them at our YouTube channel if you're watching them. Love to know where you're watching. Looks like Andreas is on, am I right? Looks like he's on the YouTube, which is awesome. Make sure you hit that subscribe button if you want to subscribe to all our videos for not only the Note Closer show, but Note Night in America along with the different Note Camp recordings, you can go to weclose Notes tv. What will pop up will be subscribe button. Subscribe to the channel and that way you'll be alerted anytime that we upload stuff or go live on the channel. And we're just here to help serve you and help you on your path as a new or existing real estate investor. Now, one thing I do want to bring up there, we've got some opportunities to learn here over the next couple of weeks. If you're looking for stuff, we do have our one day class called Note Weekend this coming Saturday from roughly 9 to 2, 9 to 3. Already about 50 people RSVP for it. We're really excited about this. A one day class, kind of the Cliff Notes version of note investing. You can get a ticket by going to noteweekend.com. and then we do have our three day workshop following weekend which is much more the more of the nuts and bolts. Friday, Saturday, Sunday, you can get a ticket of that by going note buying for dummies dot com. But it's an interesting time out there, ladies and gentlemen. We all know this. And look at the news, look at the articles, look at the quarterly report filings, it all speaks volumes that we as Americans are having our hard earned dollar get pulled away. And yes, it's getting more expensive for food, more expensive for cost of goods. We can thank all that big pile up in the Gulf with the container ships not delivering things. So yes, it's getting expensive. So you have to take in those costs and realize I can't pay as much on my money. So you've got to either go to work and make 6% or you can make 12% on nothing. And if you really start talking to people and they're saying, hey, I'm making above average turns, great. How's that working? Well, I did a flip. I made 20% on my flip. I'm like, congratulations. How long did it take you to do that? Well, it took me four months to do that. Okay, great. What do you do the rest of the year, the other 12 months? Well, nothing. Well, you didn't really make 20%. You made something like 8% when you analyze it all out, or 7%. The numbers are off here, but that's the point. Wouldn't you rather be in something that's paying a 6, 7% year round without you having to do it to go find it and deal with contractors? Because when you, I bet when you go look at it, you probably didn't make your 20%. When you look at your hourly wage and what you had to do and then lost things, you probably made less than that. You probably would have made more money flipping burgers at in and out on a part time basis than flipping properties. That's the thing. When people start giving me, oh, I'm making this great, how's that working? Is that working well for you? My ex father in law worked for ConocoPhillips for years and he was, this goes back over a decade, but he had three and a half million dollars in company stock. He was getting ready to retire. He was gonna work another five years and retire. Well, guess what happened to them retiring when he should have and cashed out his stock. He kept it in there and the stock reduced in value by roughly by 60%. He lost basically two thirds of it in value. That's not what you want to have happen. And a lot of people sitting on the sidelines making nothing. That money is eating away at it a little bit each month. Got to get it out, got to be put into something to make some things happen. Now yes, I I've always agreed like I said beginning with Dave Ramsey, you got to put some money aside for rainy day in case emergencies. You should be saving on a monthly basis. If you're starting off there may not be a lot you can put in at $100 a month or $200 a month. I get that. But start putting money away aside and start either look to do partials or maybe you can do some small mezzanine loans on some to some investors for some quick fix and flips or you can maybe take over some subject to deals with very little down. There's opportunities if you know where to look and that's one of the things that you do want to use real estate investing clubs and things like that is find the education. But then go find the deals, go find the money elsewhere. A whole lot cheaper rates for you out there. So any other questions, comments, concerns ring online there for you. So honored that you guys take time during your afternoon, your drive home or in the morning to watch this. To listen in, please hit the subscribe button. Make sure going over and listen to the podcast all of our 688 episodes on anywhere that you listen to podcasts. We've got such a wealth of information, some amazing guests out there and we really look forward to continue to share the knowledge and help you guys take your note or real estate business the whole next level. Like I said, check out this Weekend's class@noteweekend.com it's a one day class. If you can't make it live, don't worry about it. We'll send you the replays and you still learn everything you need to do in that one day class for you to get started. And then hey look at taking the class into this month, January 28th, 29th and 30th for our three day virtual note buying workshop. But thank you guys so much. Go out, take some action. Take this knowledge. Go share it. Go take advantage of what's going on in the markets and what the news is doing to help you build your bank and stop the great bank robbery dead in his tracks. We'll see you at the top everybody. Bye.