EP NNA 79 - The 3-Step Process On Making Money Wholesaling Notes

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 SC all right, everybody, hope you are doing well this Monday evening. Welcome to no Night in America here for the first Monday of November 2019. It is the night before it is all voters eve before everybody, I guess, goes to poll. Or if you haven't early voted like I have, you'll be showing up in line tomorrow to vote. So wish you all be safe. Whoever ends up winning the presidential election is not gonna really have a big impact on any of what we do out here. So be safe, vote and let's hope that we as a country can heal. But anyway, tonight I thought I'd do a topic on something that I think I've taken for granted the last year or two. Cause when I brought it up today, topic stuff, he's like, oh my God, you haven't talked about wholesaling notes in quite a while. So I've been getting a lot of questions, a lot of people reaching out of webinars and videos that are out there talking about wholesaling and that they're wanting to get in the note business, but they wanna start wholesaling. So I thought, well, let's do a class tonight, kind of a master class talking about our process for wholesaling so that people are doing it right versus doing it wrong. And I see a lot of people doing it wrong. But before we dive into tonight, as always, guys, glad to have each and every one of you here on America. I'm always honored that you guys show up on Monday night and spend time with us. We'll probably be in and out here just right in an hour based on what we got tonight. Unless there's a lot of questions. And I'm like I said, I'm always glad to stay till the end, answer as many questions I can for you. So anyway, moving on. But you guys, once again, welcome to no Night in America. If this is your first time, we do have about 30 new people registered for the first time. Welcome. We do host these just about every Monday night. I did hit the record button so it will be playable for you guys. As always, I encourage you all to go to our WeCloseNotes TV channel. That'll take you directly to our YouTube channel. Make sure when you're there to hit the subscribe button so that you get notice of all our replays and all of our podcast videos and stuff like that directly to your inbox. So subscribe weclosenotes tv. Make sure when you're watching a video or anything, make sure to leave a review or comment. Love to hear from what you guys love or dislike and see how best we can do. But make sure you hit the subscribe button and then also our podcast no Night in America is its own podcast. We've been had it for a while now, over a year now that I think about it as we celebrated our four year anniversary for launching the Note Closure show podcast yesterday. But you can always go to weclosenotes.com, get full transcriptions of each episode. If you prefer to read versus watch or listen, it's free of charge, no cost for you. We just want to provide content and help you all on your journey as Note and real estate investors. And we're excited over 35 million listeners have listened to the Note Closure show and then over a million downloads on anywhere that you listen to podcasts. But anyway guys and gals, let's get into the meat and potato. We do have a couple events but I'll save that stuff to the very end for you guys as we have some things coming up this weekend through November and December. But I want to get into the meat and potatoes tonight about wholesaling notes. Now let's first first of all, I'd love for you guys to share if you have ever wholesaled a piece of property, either wholesaling it yourself or you've bought on a wholesale deal. So do me a favor, if you're here live and you're watching this, click on there. Wholesale or ws. Ws. Let's do that WS in the comments in the chat rolls. Give me a WS if you've wholesaled one way or another. Okay. I always like to see who is experienced people here on the call do so ws ws. All right, good. Joe and Rich. Rich Hamilton. Good to see you Dick. Hope it's not too cold up in Chicago. Joe and Rich, you guys are in Chicago as well. So some experienced people up in Chicago. That it? If you have not, I mean look at who else on there. I know there's some more people on here probably bought a wholesale to deal or two. There's a few people that just aren't coming. They're like oh, we're just listening. We're not in a place to type and I've gotten that as well for people on here. So that's good a few of you guys understand that. So let's first talk about what is wholesaling, first and foremost. Cause some people are like, well, what is it exactly? Because I might have and I might not have done it. All right, well, wholesaling is technically the definition is selling a vested interest. Usually you have to have that property or asset under contract in a property or note to another investor or a flat fee or percentage. So you're not necessarily in the property selling note. You're selling the contract or the vested interest in that property in some sort of fashion. You're selling it off either for a flat fee or percentage of the funding amount. Either or. There's no right or wrong answer. It's all dependent on what the deal can hold and what you can get for how good a negotiator you are getting under a low ball price and then upselling it to somebody else. Wholesaling, pretty simple. You get it under contract at a low price, you understand what you have. You sell it to somebody else who is willing to pay you a fee above what you paid for it. Okay, but the biggest thing is having something under contract. Okay, having under contract, maybe it's an option. You pay 10 bucks to have it under an option agreement. You make an offering on a low ball price because you know you can flip it some sort of contract to securing that property. A lot of people, a lot of investors out there, they'll try to wholesale something without putting under contract, and then that's just not an effective asset because then you're constantly trying to go back and forth. If you don't know what the seller is, you're taking bids that may be blind, bids that may not be even accurate. And you end up pissing off a lot of people, especially buyers who are making some offers with the idea that you have it under contract. Well, if you don't have it under contract, you can't really wholesale. And that's why in some states, you're seeing more and more wholesalers having a hard time closing deals because they're starting to outlaw wholesaling if you don't have it under contract. Now, all contracts can be assignable. That's the thing. You can assign a contract in its nature. A lot of people get testy about that. Realtors have listed. You are not gonna see wholesaling on the mls. This is gonna most oftentimes be properties that are off the MLS that aren't listed with a Realtor or note deals that aren't from a major bank. It's not saying you can't wholesale a note from a bank, especially if you know what the price is and you know they're getting a deal. But it all comes down to a couple things. You usually have to have a vested interest, okay? You gotta know the value of that asset. You have to know the true. Now, I'm not just talking about comps, I'm talking about roi. I'm talking about knowing the square footage, the rent rates. You really need to know your due diligence when it comes from that, okay? And you need to know the profit potential, not just the value or the rent rates or the return, but the profit potential of that deal through the due diligence. What pisses me off about wholesalers a lot of times is wholesalers will just throw stuff against the wall like spaghetti against the wall without doing any due diligence. They get a list from somebody and they blast it all out and they say it's three points on top of this, like 45 plus 3 or 55 plus 3. You didn't really do any due diligence on it. An effective wholesaler, somebody that understands it, is going to know exactly what they have in the deal. Hey, I know that this Property is worth 700. I have an accountant for 375 right now. The market price to sell this as an investment would be roughly at 540, 70 cents on the dollar or 490 somewhere around there. They know exactly what it can hold and what the market rate is for a lot of things. Effective wholesalers always, always, always leave plenty of meat on the bone for the end buyer, okay? What I dislike, I'm sure many of you guys, when somebody's saying, oh, it's this and it's a skinny deal, there's no meat left on the bone after repair costs. I've seen this happen time and time again. Or somebody wants to make exactly 10 grand on a deal, but the deal doesn't by what they have it under contract for and what the deal would hold in the market value. Ten grand is not the profit. It's more like three grand or five grand in some cases where the wholesalers, I hate to say this, but ignorant, that they don't understand what they have, they're being greedy that they're gonna get 100% of nothing when they can. Still, if they got smart, they can make something versus nothing. This is such one of the critical keys about being a real estate investor and a successful wholesaler is Knowing exactly what the hell you have, doing exactly what you offer, that end buyer, knowing exactly, hey, I'm leaving plenty of me in the bone, but I'm creating a win win here, a win with my buyers and a win for me as well. And everybody walks away happy. And it often isn't about trying to squeeze as much profit about the deal. It may be negotiating down a little bit and taking a little bit less to do repeat business with that person, repeat business with that wholesale buyer that's buying the deals from you on a regular basis. Okay, so let me give you a couple of sample deals on some sample wholesale deals that we've done. Done a lot of wholesale deals. Now, this is one thing I want to bring up here is, ladies and gentlemen, wholesaling is one of the biggest strategies that's really left off the table. Now, I say off the table, but I also mean it's on the table. Let me clarify myself. A lot of wholesalers, a lot of people get in because they want to wholesale because they don't have any money, okay? They don't want to buy anything because they're too scared. They would rather just wholesale it. You still got to know your deal. You still got to break down the due diligence. Now, you're not maybe doing a lot of back end, but you still need to do a lot of the front end due diligence. Knowing the values, knowing the comps, knowing what's really going on with that asset. Is it occupied? Is it vacant? How much repairs does it need? If it's an REO or vacant property, you need to know what your buyers are looking for as well. Okay? If you have a database of people, but you don't know what the hell they want, and you're just throwing email after email after email about a deal after deal, you can get burned out really easy. Cause you burnt your list out there. Like, this isn't what I asked for. This isn't anything I'm interested in. Please remove me from for your list. And I'm probably removing myself from people's list at least once a week, if not twice a week. I'm like, okay, we connected. Now you're trying to pitch me on a deal that I'm not even interested. I'm not buying anything reos out in the middle of Cook county, not buying anything as an REO in freaking out in Washington State. I want something that makes sense and it's a true deal. So here's a great example on Orlando. I love South Florida. Made a lot of Money wholesaling out in the neck of the woods. Made a lot of money in notes at that neck of the woods. So here's an example. I was coming into town and I was coming in Orlando. And this goes a few years back. I'm just giving you this example because most of the stuff and this is something that everybody could do. I found a wholesaler. I was actually driving down the road and I saw a bandit sign. Okay. And I picked up the phone and I called the guy on the other line. I left a message. I have a real estate investor. What all do you have? Well, he sent me three properties he was looking to wholesale to flip. And we found this one property. It's a little three bedroom, one bath brick home. Okay? The numbers on it was worth 70. As it sat, I could get it under contract for 35. I could get it at 50 cents on the dollar. Okay? It was a little outdated, but as it sat, it was worth 70 under contract. Get it under contract for 35. And I was like, oh, what's that? 50 cents on the dollar? And my big thing with the guy, when I asked the seller is like, is it rentable? Can somebody move into it today? Could somebody rent it today? How much work does it need? He goes, it needs to be updated. Probably needs about 10 to 15 grand in upgrades, depending on what you end up using for. But if you're turning into a rental, literally about 5 grand to update a few features and some new appliances, and you could be rocking and rolling at roughly around 800 to 950amonth. I'm like, okay, great, let's put our condo for 35. I'll take it. I even asked if they take less than 30 or less than 35. They wouldn't budget. Okay, it's still fine. 50 cents on the dollar. 35, okay. It was an out of state owner who was a probate deal. Originally. It was his mom's house. She passed away. He lived across the country. The seller was motivated. The property owner was actually motivated. And the guy that I talked to had it under contract for less than 35. He was a wholesaler. And I'm like, okay, that's fine. You're gonna sell it to me. Leave plenty of meat on the phone. Why not? I marketed it to meetup groups in meetup, meetup.com in around Orlando, in Miami, in Tampa, in southwest Florida and then Jacksonville. I marketed in like five meetup groups in the area. Literally got it under contract. I took the exact pictures, the exact flyer, changed some numbers. I marketed out to the group for 45 of these other places. I had quite a few interested parties because it's a pretty good return on investment still well below that. I finalized it at 40K. All right. I offered it at 45. Somebody was willing to fund in roughly less than 24 hours. I came over, took a look at the property and they were willing to fund in 24 hours. I'm like, great, let's do it. So they funded 40k into the escrow account. We wired 35 out to John. I kept the 5 grand for my profit. The buyer was happy because he got a great little investment property that he could put somebody into almost relatively. Meaning he valued his comps a little bit more than 70. He said I could get somebody in because he had extra carpet and some other appliances. He get in for less than five or five to 10. So it was still a great deal for them. Okay, great deal for me. 5k profit in literally 5 days for me off of a bandit sign. But it came the fact that I had a list, I knew how to market and I found a deal that made sense. Okay, Basically I signed a contract with John, who was the wholesaler, he had it under contract. I signed two pieces of documents. I literally signed the contract with John and the seller that was buying it from me was an investor. So we did a double contract. We basically I took the contract that John gave me, switched it around a few dates, sold it to him for 40 and just changed the numbers and closing dates and everybody was happy. So when we closed, it was just basically the money for mine. But in my purchase with John John, it funded the purchase with John to pay off the guy underneath. So it was almost like a triple close. But it was a good day because John was a local realtor, local wholesaler, he knew the market. So kudos pretty easy done. Wham, bam, thank you ma'. Am, I'll take my 5k in 5 days and move on. He was that you found some good deals. Now I found another two deals with John too that I sold each of those one for 2,500, another one for 4 grand, all roughly in a seven day period. So I made 5 and 7, 812 grand in roughly a seven day period by just marketing and finding somebody who had some deals. You could all do the same thing if you wanted to. Now. Okay, so this is a note wholesale deal. So this was a non performing first lien in down in Cape Corho, Lehigh Acres floor. They was Lehigh Acres precisely. And it was a good looking little property. I Mean, that was a street view. I was like, that's a pretty nice looking property. And this is a few years back, but I wanted to give you some idea of it. And I like buying in southwest Florida. Love that area. Kick Coral, Lehigh Acres. I just absolutely love it. We've done our masterminds in Kit Coral. I just think a lot of bang for the buck now. Funny thing is, I had a buddy of mine, okay, the numbers on this, the house was worth about 90 as it sat. They were upside down. They owed 120,000 UPB. They'd already started the foreclosure process. The fund had already started the foreclosure process. Borrower had already moved out of the property. Okay, so it was a vacant property. Bar already moved out of it. And the funny thing, I get a phone call from a friend of mine, Robbie Woods. You may know him. Okay. Robert woods, host of the. Well, previous host of the Note MBA podcast, is not around anymore. But Robbie's a student of ours. Was actually originally a deadbeat borrower of mine that we forgave him. But anyway, Robbie calls me up and says, hey, Scott, I know you're a big fan of Lehigh Acres in southwest Florida, and Robbie lived in Orlando. And he's like, I got a note on a list here, and I'm surprised you didn't get the list because it was from this fund called rsi. Now, Robbie knew that it's new Bill Baimel, who's the fund manager where we've had him on the podcast before he locked us up, it was worth 90. He got it locked up for 45 from RSI. And he's like, I'm a little strapped right now on other projects. I'll be glad to wholesale you this for a 5k fee. And I'm like, huh? Okay. So I went and looked at it. I actually had my realtor Brent go out and take a look at it. I talked to the legal, I talked to rsi. RSI confirmed everything. Robbie had entered contract. I said, okay, that's fine, fine. I'll buy it from you from 50. He's like, do me a favor. Instead of me having a guy, how about you just wire me the 5k or put it in escrow. You just wire it to me the day that you fund from rsi. I'll just call Bill by mail right now and tell him to put the contract in your name or that you're buying the contract from him. Like, that's totally fine. I trusted Robbie. Robbie trusted me. It was a win, win. Robbie Was happy. He made five grand for basically just putting a deal in somebody else's lap. Now, the deal was good enough. He would have taken it down if he'd had time. But he was a little strapped because he had some other deals going on. All right, Bill by mel, didn't care. Bill was happy making 45 grand on this deal because he got the deal, he bought it for cheaper than that, and he wanted to go through the whole foreclosure process. Now I lucked out. I got the contract change from NextGen Coastal, which is Robbie's LLC, to my LLC, and then literally I was able to sell it as an RER at the foreclosure auction. But I felt about four months later at 85 grand. So I ended up netting about 35 on it. You know, 30 and some change. Robbie made five grand. Bill by mail, made how much he made. But it was a win, win, win across the board. And the power. The reason I bring this up is if you know what your list is looking for, if you know your contacts and what they like or dislike or what they're looking for. Heck, I didn't mind. Robbie made five grand. He disclosed to me fully. If I didn't, wasn't going to do the deal with him, wasn't going to pay him five grand, he would have moved it to somebody else. I'm like, hey, I like the deal. Let's do it and let's just move on. So when you have a relationship with your potential buyers, it's a win, win across the board. If you can make it happen. All right? Because I'm like, that's fine. I don't mind you making 5k me. Not checking my email was a 5k mistake. By not calling the asset manager, not calling RSI. Hey, what do you have on your books this month? That was a 5k blunder and I didn't mind paying for it because I would have rather gotten it then not gotten it. Right. So you figure that I ended up netting 35 grand on a 50k investment. What is that? That's a 70% return. And the fact that I did it in four months is roughly 70 times 35. Roughly times three. 70 times three is roughly 210% annualized return. To me, I don't mind paying 5% for 210. Okay. Now, I'm a big proponent and I encourage you guys to ask questions as we get rock and roll through here. There's really a three step approach that we teach. Okay? Three step approach to wholesaling. It's not hard. It's these simple things to keep in mind when wholesaling. Okay? Step number one, you have to have a buyer's list, okay? You have to build your list of buyers and it could be local to you. I know there's a lot of people that just. They just deal with wholesaling deals in their backyard. It's fine. I've got some buddies that do some big time wholesaling nationally, like my buddy Joe McCall. He's in St. Louis, but he's wholesaling properties all across the country, sight unseen. Okay? Because he's built himself a buyer's list. They're using social media to find buyers for deals. If you have an existing list, kudos to you. If you have no database, that's okay. You can still build one relatively easy. You can create one and start working it on a regular basis. Now, the second point, we'll talk more about these individual. I got a slide for each one is you gotta get a list of deals, okay? Deals we're talking about. Not a list of properties or not a list of notes. Cause we all know, depending on the price, there's either good deals or bad deals or no deals. It's either a deal or a dud, depending on pricing and due diligence. Okay, ladies and gentlemen, so you need to get a list of deals of some sort. And this is gonna be coming from you getting a list, okay, off of a website, watermark exchange, paper stack, Madison management, maybe old fc, whatever. And getting to know those assets, looking at what they have available and starting to dive into it, start understanding what they actually have, what's the value, what's the price point. And then getting the asset, the note, the property, whatever, under contract of some sort with either like a loan sale agreement or an option fee to tie it up for seven to 10 days while you go out and find people, all right? But you gotta know that it's a deal, all right? Not that it's, hey, here's a property here. In that last example, Robbie knew that at 45 or 50, that deal was still. That property was still a deal, okay? It was a deal for me, based on our conversations and him knowing what I liked and vice versa. And under contract, it's pretty simple. We all know in the notes world you can often put notes under contract without having to put up any earnest money, any deposit money. Just get under contract and then you can sell that contract offer pretty much easy, okay? And then the third most important thing is protecting your relationships. Some people are like, well, wouldn't it be this and wouldn't it be that? No, it's really to protect your relationship, protect you and the seller, whoever you're buying it from. But then also, I hate to say it's protecting the buyers from themselves sometimes. Okay. And you always protect yourself with agreements. Whether it's a one page wholesaling fee agreement, if you know that person and you trustworthy, you don't worry about disclosing who the seller is. Or it's a double closing where you basically, it's a. You take the. The seller's contract made out to you replicated by tweaking the names, the price amount and the closing date a little bit earlier. So you may do a double closing. Maybe you have money wired to escrow versus wired directly to the seller. So one of the most important things is if you want to keep this simple, Kiss. Keep it simple, stupid. All right. Or in my words, as I say, keep it simple, silly. Okay. Keep it simple, Scott. It's probably a better thing. All right, so the important thing is we gotta have a list to start off with of some sort. Like I said before, if you don't have one, don't worry, don't flip out. It's pretty easy to build one. Okay, so let's first talk about that. Okay. Number one you need, and this is a big thing, is you gotta, we gotta welcome yourself to the 21st century. You've gotta use some sort of CRM, customer relationship management software or an email service provider. Like mailchimp is a very simple email service provider. It's not really a CRM. A CRM would be more like Infusionsoft or ClickFunnels or Podi or something like that. But you gotta have something to market to. You gotta have something to get those emails out at a pure minimum. There are things you can do with mailchimp and lists. So you can kind of work it as a CRM initially for if you're tight in a budget. Now the big thing about mailchimp or anything is you probably there's a. Some free version. Don't do yourself a disservice in just trying to squeeze within the paid the free version. We had a student one time who's trying to reach out to asset managers or trying to wholesale. And he would upload a list, send an email, blast off and then remove that list and then upload another list to it. And it was ineffective. That's more work versus just paying the $45 a month, the $35 a month. Realize it's A cost of doing business. You're gonna have some marketing costs out there. And when you build a list, we'll talk about some ways of building it. But when you have a list, you gotta know what the heck they're looking for. Okay, are they looking for Louisiana assets? Are they good for Texas or California? Are they looking for performing notes? You know, what are they looking for? Are they looking for an ROI percentage or at least 15 grand in profit? Okay, what kind of buying scenario is they looking for? Like I'll give you an example. I've got somebody's up in Columbus, Ohio that will buy in the hood. And if they can buy that asset, that property and the repair cost for less than 25 grand to get up to rentable, they'll buy them all day long. They don't care if it's a one gun or a two gun alley, they'll do it. But I know that about them. Okay, and how do you get people to answer? Well, you ask them questions. Ladies and gentlemen, many of you have gone through note camp in the past with us, all right? And you see me ask a survey, you know, what are you looking for? What kind of, what are your top three states you looking for? Performing, non performing, residential, commercial. Okay, what kind of returns you're looking for? Do you have any money you're looking to buy? You know, fund with or partner up with? Those are all important things to know about your list. You know now, like I know right now that Rich and Joe habits right now in here, they don't travel outside of Chicago too much. Okay? They like Chicago, they like staying home in Illinois. So if I were to have something in Chicago that makes sense, I would send it out to them knowing that they're probably looking for something that's not gonna be a heavy rehab, it's not gonna be in the hood, it's gonna be a pretty easy, hey, we can buy, turn into a rental, keep it that way without having to do a lot of work. Cause they're both too busy guys. Same thing with like Dick Hamilton on here. Dick doesn't want to do heavy rehabs. He's looking for something that he can turn passive. If he can find a performing, that's gonna be a pretty good return on investment. Great. If he can make 12% after his funding costs, he's happy. Okay? So it all comes down about knowing what's going on. And you have to ask those questions whether it's a, you're asking them to opt in and answer questions in like a list. Opt in that you can set any of your email service providers like a list, opt in a survey. Hey, can you tell me what you're looking for? Or just, you know what asking them, writing on a business card or writing when you meet somebody, hey, what are you looking for? Okay, you're looking for these type of deals. Great. Or send an email out, hey, can you tell me what you're looking for? And then put it on a spreadsheet so you know who to reach out to when you have something that makes sense. Okay. If you don't have a list, don't flip out. Don't go running scared. Halloween was the other night, not today. That might be voters tomorrow night. Oh my God. All right, if you don't have a big database, that's okay. You can target groups. If you're in an area, there's real estate investment clubs. Go join the real estate investment clubs. Go talk with people. Pass out some business cards. I always have a box of business cards if I'm going out, networking in person somewhere. I even created a virtual business card for my phone. If I'm doing something virtually, I can give them a link that they can opt into suit. But you can go to meetup groups. I mean, you could jump on like 33 meetup groups and be connected with probably 60,000 plus people. If you pick, you know, 10 of your favorite cities, three of your biggest groups in those cities. Meetings are a great way to build connections and have maybe not have them opt in immediately, but you still got a way to reach out by posting to their discussion boards or their mailing lists or their topics hot buttons. Those are some of the biggest things. Also attending local meetings, local events, you know, if there's an expo going on or some sort of real estate club or something like that going and hanging out and just building a list, you could do it easy. You could do it also via like social media. Okay. By creating, you know, like today I was working with a coaching student. He's uploading, he's creating his first mailchimp email blast. I said, whoa, whoa. Before you send it out, let's create a list with your top three. And you put the top three states so that when you send it out to your general investor list, you can ask them what states are they looking to invest in. If they answer it, then you'll know kind of some hot buttons to reach out to them. Hey, I got some deals. Oh, you said Michigan. I just got a list of notes in Michigan. I'm not interested in these, but I know somebody else might Be that's one of the biggest things that irritates me is I see people, they get lists in, they're like, oh, I'm not interested in any of those on there. Don't you think somebody else might be? You know, don't you know that? Oh, hey, there's Jonathan Burton is in Baton Rouge, in New Orleans. I know if I got anything in there, I'm going to send it to him to take a look at. And Jonathan, if it's a win win, he's glad to pay me a fee and I'm glad to give him the break because it's a repeat business. Okay, same thing. If I know somebody's up in Michigan, Detroit or dear border neck of the woods, I'm going to call my buddy Mike Jordan. And Mike's fine with me making some money because he's going to make some money in the back end. So it's all about, like I said, knowing your relationships. If you don't have a list, create something that people can opt into. Hey, posting it to LinkedIn groups. Posting to your LinkedIn feed. Hey, if you'd like to get on my hot list for deals, click here. Let me know your top three states. I won't share your information. It'll just be for me. And as I have something important for you. This is one of the most valuable things that people get scared of and they don't do this. And then they just sit here and when they get listed, they get all excited. Everybody gets excited when they get deals in like a little puppy. Oh, I got some deals in. What are you gonna do? I don't know. I don't know. I just got deals I'm all excited about. Deal. Okay, but have you broken it down? Have you looked at it? Do you know who might be interested in these states now? I know I could reach out to the Ellingtons. If it's something up in Baltimore they could take a look at or, you know, other parts of Maryland. Okay. You have to know your contacts, know your database and just comes from time. Maybe you need up that spreadsheet out and say, okay, filter by. Okay, I saw some notes in Minnesota. Who's interested in Minnesota? I don't have anybody. Okay, there's some notes in there for Indiana. Who do I have in Indiana? And let your list kind of help you with your wholesaling stuff. If you get a list in going to your database who's interested in what and those are the ones you may target first and foremost. I also like to take. If I get A list in what states have the most listed on here. And then that gives me the most amount of opportunities to wholesale. Especially when they're state I'm not going to buy. Or it's deals that I'm not wanting. But there are other people out there. Great, if I can see that. Oh, I got a list of say 65 assets and 20 of them are in Ohio and Michigan and the rest are all spread out across the country. Well, Ohio and Michigan is the first place I would start and I would look on my list. Who is interested in those two states? Because that's gonna give me the most amount of opportunity. I'm not gonna pick some one off state where I don't have anybody interested. I'm gonna pick something that my list is telling me. My list of giving me the orders and they're telling me their interest. And that's the right. I'd go, okay, now step number two, get list of deals. We talked about this a little bit already. Make sure you've got some deals. You have to evaluate the assets on the websites or the list that you're getting. Taking time to look at it. I got a listing today and they had a property. I was looking immediately at the Texas properties and they had one in Corpus Christi, Texas. Now, I grew up on the Gulf coast down in Corpus Christi on Palm Arrow Drive. My mom worked at Driscoll Children's Hospital and Spahn Hospital. I know that air pretty well. So I mean, looked at that deal, I was like, ooh, this doesn't look too bad. Then I looked at the county appraisal district, I was like, oh, the name is different on the spreadsheet versus what it is. The. That's a big red flag. I gotta know, okay? I'm like, no, that's not gonna make any sense for me to buy that deal because the fact is, oh, it's probably gone to tax foreclosure. And sure enough, it wasn't a deal, it was a dud. So that's the thing is you have to do some due diligence. You just can't blast it all out without doing something. Otherwise, like I said before, you're gonna look like an idiot for pitching crap. It doesn't make any sense. And two, if somebody does make an offering on it and then you find out that it looks like shit or something like that, that's an embarrassing thing. You don't want to have that happen. Okay, so know what you have. You may also, if you need a list of deals and there's wholesalers in your neck of the woods. Maybe you reach out to fellow wholesalers, other sellers who've gotten a list in that maybe they're looking at stuff like Bob lynch on here, loves Indiana. If he gets a list in, he'll look at Indiana for himself. But he may want to reach out to Dick and Richard. Stuff in Illinois. He may reach out to, hey, Scott, do you have anything else? I'm like, oh, hey, here's a list of 44. I don't know what's on the list. And you want to declare that if you're going to send a list out, hey, I just got this list in. Make sure you. And we'll cover. How to protect yourself in a second here. Don't know the values on this. Not done any due diligence on the lists. Say it. Okay. Hey, I don't know any numbers on this, but I do know that the seller wants this, this, and this roughly. Or these pricing points. Okay. If it makes sense, great. If it doesn't make sense. But like I said before, look at your grocery list, look at your list of buyers, and they tell you what they're looking for. Go to the list and so. Exactly. Okay, it's a Christmas list here. Okay, I know that Bob lynch wants some Indiana properties. I know what I'm saying. I know that Rudy wants some stuff in San Antonio, or maybe he wants some stuff out in California or Arizona. Out in his neck of the woods, he sees something in his backyard, he's gonna jump on it. But the most important thing you can, if you've got the time, is do some initial due diligence, pull some values, know what the asset and the profit options are. Okay. If it's worth 100. If you're pulling numbers and conservative values, 100, and you know that you're making an offer at 50 grand. That makes sense. Okay. Knowing what the rent rates are, knowing what the days on market are, I mean, that's one of the biggest things about why we had J.D. bates on two weeks ago for Note Night in America. Talking about note pros is pull all that information that you can export directly into your spreadsheet and so save you a lot of time. It's automated. Yes, but it's the same thing as jumping on Zillow, truly trying to get a value. And we know you're not gonna pay for BPOs and owings. This just doesn't make any sense. But at least you can take a look to the names match up at title, how much in taxes are owed, knowing some of the different options, hey, this is an occupied asset. But based on the spreadsheet, the borrower has made six payments in the last two years or they haven't made a payment in five years. Okay? So something to keep in mind and most important, if you get a listed deal, secure it, put it under contract, okay? Either put it on an option agreement for seven days if it's not a bank, or put it under a loan sale agreement with a two week closing, something like that. But if it's, here's the biggest number that I like to look at, okay? It's not saying you can't make money above 60% but for non performing assets or distressed reo stuff like that, I gotta be below 60% fair market value, my offerings gotta be below, obviously upbank, but it's also got to be below 60% of fair market value. It's got to leave me some. If it's a pristine asset, I proceed to over 50 grand in clean shape. I can't be any higher than 60%. And if somebody's bringing me a one off deal, I don't want to go above 60% for the most part. If I'm going to make this, I got to make sure that I can get this deal at least plenty of me on the bone. Now if I do get it approved, the max I could offer it up would roughly be if I was wholesale what to be. And I got to make sure there's plenty of meat in the bone. The highest I would go is 65%. Anytime you get over 65% or over 70% these days, it's a harder pitch, it's a harder sale. Investors like seeing deals, ladies and gentlemen. And something at 75 or 80 cents on the dollar is not a deal because they don't trust you. But anything you start getting below at 70, below 65%. Like if you can get something under 40 and sell it at 60, kudos to you, you still left plenty of meat in the bone, okay? I'm not gonna fault you for making profit. And you sending me a deal that makes sense at 60 or 55. If you're making 20%, that's a beautiful thing, okay? But don't be like the investors out there, like oh, I got in there at 65, I'm gonna, I want 10 grand minimum. Well, that 10 grand may put you at 75 or 70%. That's not a deal anymore. You're the problem at the point. Make a grand versus trying to squeeze ten grand out of a deal that you're not Gonna get. And you could end up being. And killing the deal. And I've seen this happen time and time again. People are like, oh, I need to make 10 grand. Why? Well, I got 10 grand in bills. Well, you shouldn't let what you have going on on the back end in your own personal. Dictate what's going on in the deal. That's a bad. That's bad juju, okay? Now, if you know the deal makes sense and you know it's a phenomenal screaming deal, and you start getting people that will screw with you, like, oh, I don't know, can you come down? Just have a next mentality. And this is the beautiful thing about having a list. If you don't have a list and you're beholden to one person and that person balks at your price and negotiates back down for you, what are you gonna say? Yes or no? And I am a big believer that you always have to have a backup to a backup to a backup, a backup funding source, a backup buyer. So have a next mentality. If people drink you around like, oh, you don't want it that well, then I'm gonna go to offer number two or I'm gonna go to offer number three. That's called the takeaway close. They teach that in sales training. If somebody wants to skip back and forth and bitch and moan about the price, oh, well, maybe it's not right for you. Maybe I'll call Steve. Maybe I'll call John. Maybe I'll call Rudy. Okay, Maybe I'll call Rich or Joe out there. Okay, Maybe I'll call Linda. I know Linda wants to close on a deal, and this is a heck of a deal. Okay? So have that next mentality. Don't be afraid to walk away because oftentimes like, oh, no, no, no. Okay, okay, okay. I will go ahead and do it and go from there. Okay? And one of the magical words that you may want to remember this. The deal is good enough to do myself. If price isn't met. Look, if you're not gonna match me on what I need to get this out of at night, I'm just gonna go do the deal myself. That's usually a sign of confidence. Now, provided that you've done some due diligence. You just wanna get it. Oh, the prices are good at these. I'm gonna do the deal myself. No, it's not. You're gonna look like an idiot. But if you know the numbers, know the background behind it, hey, the deal's good enough that if you're not gonna give me my 10 or my 5% or what it might be, then I'm gonna move on and just do the deal myself. And that's a beautiful thing. And if you know the deal, don't be afraid to do that and walk away. Especially if you've got time to close. The biggest mistake I see is wholesalers. They don't do any due diligence. They slap it against the wall. They got these people that are buying stuff and they're finding things out along the way, like, oh, the value's not here. Oh, it needs a lot more work. More than just a 5k. And as they get closer to closing, the sellers, whoever they have in contract, like, okay, when are you gonna close? When you close. We're close this week. Well, then suddenly something pops up at the closing table or before. Well, I gotta come back on my bids. That will piss sellers off faster than two shakes of a sheep's tail. Like, what do you mean? You've had a week or two weeks. You're just letting us know now that you needed to fade your bid. That's one way to burn a relationship. It's another way to get blacklisted. And you don't want to do that. Okay, moving on here. Now next step number three. How to protect your relationships is one of the most important things you need to do. And one of the most important things is if you're dealing with somebody brand new. Not initially, not when you're asking them questions about what they're looking, but if you do have a deal. I like to make people sign a non disclosure agreement or a non compete, non disclosure ncnd. Especially if I don't know them from Adam. If I didn't like Hakeem, Hakeem reaches out. Hey, I got a deal with Hakeem. I don't need him to sign an NDA. Ncnd. We can have a verbal thing because I know and trust Hakeem. We're good. Okay. He's my boy. All right, so Denise asked the question, is that 65% FMB set the value of the home and the note. FMV, fair market value. That's of the property, the note. But we're not gonna talk about note. Maybe way over value. Don't wanna do the value of the note of the upb. Remember fmv? It says it right there. Fair market value. If it was off the note, it would be 65% of UPB, Denise. Okay, but if, I don't know, somebody, somebody reaches out to me for the first time or they've opted in and they haven't signed anything before. Yeah, I'll share. Hey, I know you're looking at like, hey, Bob, I know that you're sitting in Indiana. I've got some couple deals here. Now, I will send them the details minus the addresses. I'll send them a picture of the property as long as I don't have the address saved. As it say, here's the couple deals I'm working on. Well, if they want to proceed and they want to make an offer and they want to go in there, great. I'm going to need you to sign an NDA NCND with me. A non compete, non disclosure. And if people balk at that, then you probably need to move on to somebody else because it's not that big a deal. It's usually an NCND is two to three pages, just simply says, hey, you're not going to disclose this. You're not, you know, you're not going to compete with me. You're not going to go around me. All right, Matrice asked a question. So I see a lot of bandit signs in atl, so call them and ask what they're looking for and add them to my list as a buyer. Yeah, you could do that, Matrice. Yeah. You know that there's a bandit sign as an investor on the other side. Now, what you don't want is a probably property. So if you're dealing with notes, don't be calling them, don't be sending a list of notes if they're looking for property. Because that's one of the big mistakes I see note investors make. They don't say it's a note deal. People think it's a piece of property and they get all excited about it and they're like, whoa, whoa, this is a note. You still have to go to the foreclosure process. Okay. NCND is a non compete, non disclosure. If you've ever gone through my three day virtual workshop, there's an NCND in the contracts. Okay? Yeah, exactly. Hakeem says those are for properties in the atl. Yeah. If you're looking to move more property. Okay. But notes, you gotta be careful about it. You may, hey, I've got some note deals or distressed notes. If you're in a market that has a lot of. Okay, now what you have to do is the reason you want to have people sign a non compete, non disclosure, okay. Is you don't want them to just take that list, the deal they got, and blast out their database and trying to wholesale to Somebody else that creates a daisy chain. You don't want that. Okay? Now another thing. Here's a couple things. When people reach out to me, I know it's a straight up bullshit meter, okay? Straight up. When I hear these words, I'm a buyer's mandate or I'm a buyer's rep, Bullshit you are. You're in a daisy chain, okay? I've never called somebody said, oh, I'm a buyer's mandate, buyer's rep. I represent a buyer. No you don't. Sorry. If that's the case, you're not gonna be dealing with piddly O me on this one deal, okay? So if somebody calls you and tells you they're a buyer's mandate or buyer's rep and they got $20 million a month to buy deals from run, run the opposite directions, run scared. Cause they're just a joke, okay? They're just a joker broker and they will blow up your deal because they will never follow through. They're going to take your list and try to sell it to their list and that list is selling their list. So if anybody comes to you says I'm a buyer's mandate or buyer's rep, or let's get on a conference call, the buyer just move, get the hell out of dodge and move on to somebody who's like, I want to buy this from my own portfolio. Okay, you want it. Now the big thing is if you're going to be working on with a relationship with somebody, you may also want to put in that non compete, non disclosure. Like hey, on this individual deal, you're gonna buy this from me at a specific amount and then anything else that you buy from the source, you're gonna pay me a flat fee going forward, okay? So you're gonna pay me 1% or 2 points on whatever you fund going forward that protects your relationship. You don't wanna have somebody pay you five grand. Now. They don't go to you, they just go to the direct to the source going forward. You just lost out potential fees. Now you would sit here and say, I want you to buy, I'm gonna pay me. You're gonna pay me a two point fee. To infinity and beyond. No, you only want to make it, hey, anything you buy in the next year or two years, the max. Some people say three or five. I'm like, it's not going to happen. Sorry. I don't mind paying for a year, two years, paying you a point or two points. Anything else I buy, I find doing it. Or if you find out who the seller is. And you already had an existing relationship like. No, I'm already direct. I don't mind paying you on this one because I didn't get this deal. But I'm already direct to Bob, you know, bill by mail and rsi. I'm not going to pay it because I'm already direct to them. And you just have to disclose that. Okay, I'm already direct to them. You need to check, reach out to them. I don't mind paying you on this fee on this deal and going from there. Okay, now here's the thing. If you don't know who this person is, Keem calls me up and says, hey. He sees my post and meetup groups, he signs my NDA, he says, okay, I wanna put this under contract. Okay, great. Provide that you can close. I'm gonna need proof of funds. Now. You're like, well, most of the time, Scott, if you say that somebody's asking for proof of funds and loi, it's a joker broker, that can be the case. But I didn't ask Kakeem for an lli. I said, you want to fund on this deal? I need to make sure that you've got the goods, baby. That you've got the money to close this in the next seven or 14 days. I'll take a let's proof of funds. I'll take a letter from your banker or a letter from your CPA that you have the funds to close. I prefer a statement of either your 401 or retirement account or your checking or savings account. I need to see something that you've got the funds. All right. Don't ever give up the full address of the property until you've got these things down. Otherwise they can go around you and people will go around you in wholesaling. Seen it done. Cutthroats. Bastards. Okay, pardon my French, but wholesalers can be pretty cutthroat. Cause they're trying to get around you. You gotta secure things with a contract. Cause the last thing you wanna do is not have under contract. Oh yeah, I'm gonna send you over to go meet with a buyer. When I don't have under contract, you can just cut me out of the deal pretty easy. Okay? Now always, always too. If you've got an agreement with the seller to close, say on the 20th of this month, require your guy, whoever your buyer is, to close at least three days, if not a week prior. Hey, I got 30 days to close. You got 22 days to close. Why? Because that extra six, seven, eight, days in there is there for you in case this guy or gal or idiot, whoever it might be, maybe they flake on you. Now you can go to backup buyer 2, 3 or 4 to get the thing closed and still save face. So always, always require your buyers to close before. Not the day of, but usually a week before. If you're supposed to close on the Friday, haven't closed the Friday before. That way if they need an extra day or two or they're gonna wire in Friday and the wire doesn't hit Your account by 4:00, and it does come Monday, then you'll be fine. So wire four days ahead of time. This is one of the biggest things. Oh, let's close on the 30th. And they're like, oh, you got to get it in by 5 o' clock or 4 o'. Clock. I can't send a wire out. Then you look bad. Then you gotta explain to your buyer or the person that you bought it from, the seller, hey, I need till Monday to close. Wire hasn't hit my account yet. Well, you've had 30 freaking days, okay? So always, always, always. Especially if you're doing a double contract where you're taking the existing contract and tweaking it. Make sure you put that closing date a couple days beforehand, okay? You might even require them. And then you'll see this more on real estate deals. You won't see this on note deals. I would require, if I'm flipping an REO or something like that, I'm gonna require the buyer to put up a soft money deposit. Hey, I need you to put up a 500 or $1,000 earnest money and you can deposit it with the title company. And you've got seven days. And after seven days, that deposit goes hard, Okay? I don't do that with note deals. It happens all the time on the property side. But I had an reo. Somebody says, hey, I need you to put up $1,000. Let me know that you're serious. Okay, I'll do that. When does it go hard? It goes hard in seven days, okay? I have till the six. What time it goes hard? Friday at 5 o'. Clock. I have up till 4:55 to call them and say I'm canceling this bid, canceling this deal because of this and this and get my money back or cancel just like my financing fell through. I want my earnest money back. Totally fine. It happens all the time, okay? Why don't you just get $7,000 of earnest money? Because most people aren't gonna do that, Richard. Okay, yeah, you could ask for $7,000 in earnest money, but most people aren't gonna do that. Okay? They're not gonna do that. Normal is 1000 bucks, 500 bucks you could ask for. It doesn't mean you're gonna get it. So what do you want? Do you want people to trust you or you wanna go something against the grain? And there's two ways to close. We've talked about this briefly. First way is like a double close. If you don't know that person. Remember, you've got a contract, you got a loan sale agreement from. Let's say I'm buying a note from ABC bank and I have a contract made out to Inverse Ventures llc. Well, I'm take that contract with the closing dates and then I'm going to change it. I'm going to make it out. So let's say Dick is buying that note from me and I'm set to close on the 30th in 30 days from ABC Bank. I'm going to change it so that Dick is closing from me in 21 days. And I'm going to change the name. So the seller isn't ABC. Its seller would be Inverse Ventures to Dick Hamilton LLC. The price on the deal wouldn't be, say, 50 grand that I'm buying it from ABC. It would be, say, 55 grand or 60 grand. And I'd adjust the dates for the closing, the due diligence and earnest money, that kind of stuff. Title. You just got to change that up. So you have basically a double contract. Okay. And then I'm gonna usually have my real estate attorney set up an escrow account. Cause then I'm gonna have Dick wire the whole amount in. So say I'm buying it for 50 and Dick's buying it for me at 55. I have Dick wire into my escrow 55. I'm then gonna turn around and wire the 50 to ABC. Keep the 5. I will then notify ABC Bank. Like, oh, hey, ABC, I need you not to make it out to Inverse Ventures. I need to make it out to Dick Hamilton, llc. Now, sometimes they'll do that. Other times like, no, you told us we got to go by the name of the contract. Okay, fine. They send me the agreements. Then I can either fill out a quit claim deed or fill out another assignment on mortgage if it's a note deal. And then Dick is recording two contracts or recording two assignments and two deeds at the same time. Okay? Now if you know the person you like and trust him, great. I'LL just send over a one page wholesaling agreement saying. Yeah. That you're agreeing to buy this note for me at 55. We have the original address under contract for 50 from ABC Bank. Please see my attached contract with ABC Bank. And here's my wiring instructions for esend the 50, all right? Or here's the instructions for ABC bank, and here's the instructions for es and wire. Now, here's the big thing, all right? You still are the go between to get information, stuff like that. If you ever have somebody wire funds in and they don't wire you, you still have the right to go back to the bank because you have that option agreement. You got the contract. Say, listen, uh, thank you for paying for that loan. Now, you didn't pay me my five grand. I'm still direct to the bank on this. Guess what? You just bought an asset I'm gonna keep because you tried to screw me. Now, I would double my thing. You're gonna pay me 57 or 60. Now you're paying me 10 grand versus 5 grand because he tried to screw me, okay? Now, somebody tries to screw you over, just blacklist them. Take them off your list. Never deal with them. It's not a good thing. But most people, if you're gonna do a flat wholesaling fee agreement, you've known them, you trusted. You may ask for references. I can trust them. It's not that bad a deal, okay? If somebody's really gonna work hard to go around you, look, they're gonna be found out soon enough in real estate and work their way out of it, okay? Now, important details. Here's some important details. For effective wholesaling, you need a good real estate attorney or title company that will allow for you to set up an escrow account. An escrow account's gonna cost you probably about 500 bucks or 250 to set up, all right? With a real estate attorney that can either do the contracts for you, do the closings, the double closing, you need a real estate attorney. Because a lot of title companies aren't gonna do dry closings. They're not gonna do a double closing for you. A lot of these days. Now, a real estate attorney will okay. The seller must be okay with you wholesaling. If they're okay with you wholesaling, kudos or signing the contract. Okay, Kudos. If they're not okay, then you need to go the double close route. If you don't want the bank knowing that you wholesaled or sold the property, you had a contract for 375. You sold it for 415. They might get a little butt hurt on that. So you may need to do a double closings and it's a straight wire in and then double the paperwork. But that's okay. Not too difficult. Have constant communication with your buyers. And here's the big thing. Check in with them. What always worries me if we're wholesaling an asset, somebody's going dark on us, you know, if we don't go two or three days without hearing from you. Hey, how's it going? Just wanted to touch base. What's going on? What's the top base? How's your due diligence going? Did you pull your O and E's? How's your values? That kind of stuff. Be in constant communication to buyers. How are we looking for closing next week or the week after? Still doing okay. We'll go from there. If your buyer walks, have a backup buyer ready to roll. This is what the most important key in wholesaling is and is in the marketing side is if you start marketing on meetup groups, I think people are going to say they're interested. But if you have something, this is what comes down to offering people. Listen, whoever can wire in 1000 bucks. So you're going to contract at these numbers. We'll get it. If somebody wires in 1,000 bucks and then you have three other people, like, oh, is it still available? I'm sorry, I've got it signed. I've got somebody who beat you to the punch. But how about I put you in my backup offers so if this doesn't fall through, I can call you immediately to fund? How's that sound? And you know what they're going to say? Yes, please do, please do. So you keep them in there and if you start seeing something goes wrong, that's what I say. Listen, if you're not gonna communicate with me, like if Rudy was gonna buy a deal from me and I don't hear from him for over a week and I reach out to him, I send him an email, leave him a voice message, no text, nothing, then I know something's wrong. I'm gonna say, listen, I need to hear from you by 5 o'clock today with a text and email something. Otherwise, I'm gonna cancel this contract for lack of communication on this because I don't think you're gonna fund. And I'm gonna go to the next person. I'm gonna start calling my backup offers and get to them ready to rock and roll. Cause somebody's gonna Close on this deal. Cause it's a good deal. Okay. Now another thing to keep in mind, why you market, everybody is a buyer and everybody's a funding source. If you have the most amazing deal, gorgeous property, numbers make sense and a buyer in place still market the deal. And one of the most important things is tell the seller like, listen, this is a great deal, or the buyer, this is a great deal. I know it's a great deal. I'm still gonna use it to market. I'm market it from backup offers. I know you can close, but it's gonna help me with get other buyers for other deals later on. I just tell them that's part of it. I'm going to market it. I'm not gonna disclose the address, but I can share the details and a photo of the property without any numbers or any addresses that will give the deal away. Okay? Always, always, always market when you've got a great deal. Dude, people will come out of that woodworks if you just market it. And then you've got a whole list of people that you can reach out again and again without having to do a lot of marketing. And that's one of the most effective things, is you build a good list and you take some time to know what's going on your deal and follow up and see things and communicate with them. Your buyers list can fund deals for you on a regular basis. Okay. Now another thing too. If you're dealing in REOs or real estate owned or properties out there, one of the most effective things that I used to do, I don't deal with a lot of REOs these days, but I would. In an area like in Dallas or Houston or Austin or San Antonio, if I came across a great REO deal, I would send the details, the address and everything, photos to my local hard money guy and get the property approved for financing. And that would be one thing I would use in my marketing, like, hey, this is a great deal. I've already got it pre approved with Longhorn Financing. At these numbers, all you gotta do is basically the finance and everything's done for you. Step in, boom, close on the deal. You've got financing in place for hard money. Some people are like, well, why wouldn't you do it? You're at that point, well, I would do it. You don't get it. My backup was to go ahead and fund the deal with Longhorn, but I would rather make 10 grand or 20 grand in a week versus it taking six months to do the deal and still end up making and make 40 grand. What makes more sense on that, right? If I can make 20 grand fast, great, let's do it. If I can make it, if that didn't close that way and I got to go the route of funding it with my funds or other people's funds or hard money, great. But I marketed, they're like, oh, hey, this one's already got financing built in. Trust me, you'll get more offers that way too. All right. And you might even reach out for hard money lenders these days if they've got any projects they've had to take back. Because with the market being crazy like it is, we've been getting a lot of phone calls from hard money lenders asking if we'll buy their notes at par. And I'm like, no, I'm not gonna buy at par. I'll buy it at discount, but I'm not gonna buy a par. And here's the thing, if you're looking at notes, your non performing notes, the cheaper you get them, the higher amount in fees that you can charge. Because if you're buying in bulk or you negotiate something down, there's a lot of one off buyers out there that you can get a pretty good percentage. I mean a higher dollar amount. If you're looking at maybe wholesaling performing notes, which it can be done, you're just not going to get a 10% fee on a performing note. It may be a 1%, maybe 2% of the funding amount as a wholesale fee or a flat fee, like 500 bucks or 1000 bucks as a wholesale fee. You're not gonna go get a huge percentage. I mean, I've had performing notes, we'll see like a 1 to 2% a lot of times. Especially if I don't do anything to distance. What I like to do is if I can see the performing notes and I know what the seller's looking at, I will then say, okay, if it's buying this. And the one number I'm gonna buy is that I get 20% cash and cash return. My numbers, okay, what would the price be if I sold it at a 15% cash and cash return? And what's my difference in the two? Either difference on a lump sum or some cash flow for 12 months. There's different ways to negotiate that. But that's a great strategy to look at. What's that performing out, selling at? Do I have people like if I had a bunch of people that are looking for 8% money and I had a performing notes paying me 12, I would arbitrage that all day long, take a chunk, move on, take a chunk, move on. Those are really the biggest things. Create you a list. You gotta have a list. Know what your buyers want. Two, know what your deals are. Gotta have some deals, not duds. Three, protect you, protect your buyer, protect your deal. Okay, One of the most important, those are the three biggest steps that you have to do. It's not that difficult to do. You gotta put something together that you can collect people's information. Either it's a spreadsheet, a opt in, a survey, something that you can look at on a regular basis. Pretty easy to set up. But just knowing what your sellers want or I'm sorry, what your investors want or your contacts want. That's your grocery list. Go out if you can see somebody that wants something in Indiana. Like I know, hey, Bob went to looking for stuff in Indiana. If I go to Paper stack and I see a deal in Indiana and I can get it under contract, it makes sense. I'll send the detail to Bob. Hey, pay me five grand if it makes sense. It makes sense. Reminder that this Wednesday we do have our calling banks list. We're supposed to do this last Wednesday and I was sick so we bumped it to this Wednesday. So this Wednesday is the calling banks. We running from 1 to 5, 1 to 5pm it's just a four hour call blitz this time around. You get signed up for it. You also need the replays the last months and then you'll also get some other great things. But we'll be calling servicing company business development people this month, not calling mortgage bankers, not calling people off the buyer list. I'll be calling servicing companies to track down their business development reps this time around. So it's a little bit different. It is $59 still unless you're part of the WCN crew. But that $59, it does include the replay to the four hour call blitz so you can see who I'm calling. Everything like that. You can get signed up@callingbanks.com or like I said before, it is included with your WCN membership If you're a 97amonth or so. If you'd like to get signed up and start saving some money and over half of our cost for our monthly education and monthly things just go to WCN membership.com and for 97amonth you get access not only the calling banks but the no weekends, our three day virtual workshops and other things along the way as well for you. So any other questions, comments, concerns for you guys? Our Next Note weekend is November 21st. Hard to believe it's just less so. It's in three Saturdays from now from nine to five. And then our end of the year class Note Buying for dummies workshop is December 11th, 12th and 13th. You can find out which banks or borrowers are on the Naughty Nice list. That's normally 599. So right there guys, sign up for the WCN membership at $97 a month and save you a bunch of money before the end of zero. Put more money in your pocket to stuff your stockings. Okay? Any other questions, comments, concerns from you guys? I'm gonna go back here and pull it up. So yes, on the callingbanks.com or WCN membership.com to get rocking along with that. Hopefully that was helpful. Hopefully it gave you a bit of an idea on what you need. We'll have the replay up by tomorrow. And as always guys and gals, thanks for joining me here on Note Night in America. Hope you're having a great day evening, hopefully seeing this Wednesday the 21st or sooner on Note weekend or virtual Note buying workshop. But go out, be safe out there everybody. If you haven't voted, go get your vote in. It does count more so than anything for the local than it does national in a lot of cases. So go out, put some deals together, go make some money and we look forward to seeing you off the top everybody. Be safe everybody. Bye Sa.