How Many Banks Are Selling Notes?

Foreign.

This is the no Closer show where you get the latest developments in distressed note investing and learn the secrets of how you can control millions of dollars worth of property for panties on the dollar. Get educated and entertained by someone who has closed thousands of deals and lives to support you in achieving the same. Now here's your host CEO of We Close Nodes, Scott Carson.

Good morning, good afternoon and good evening everybody. Hey, welcome to this episode of the Note Closure show. As always, Scott Carson. Excited to be here today. And today's episode kind of ties in. We've seen been seen a alert of on my downloads, especially a couple episodes when we start talking about how to get a hold of bank asset managers. And I was like, oh, that's great. We're seeing, you know, it's about six month old episode. We do that episode usually once a year, at least, sometimes twice a year on what's going on. And so while I was searching around, I was like, okay, what other podcasts out there are talking about buying notes from banks? Right? So I'm doing some due diligence. You know, I'm like, okay, flipping through, I see about, you know, there's a few note investing podcasts and have been around for a while. I'm like, oh, here's one. Not gonna name any names. We could probably figure it out. And they had an episode a couple months ago and their title was the Myth of Buying Notes from Banks. And when I see that, it starts to make my blood boil a little bit. I've been a Note Investor since 2008 is when I bought my first note. Okay, wasn't anything big, but it was from Wells Fargo Financial back in the day. And then I bought a couple more from another small lending institution and then I got a huge list of notes from Banco Popular that we bought some from. Okay, so what you have to realize is when I see the myth of buying notes direct from banks, it automatically pisses me off and it tells me that people haven't done it.

Okay.

So I listen the episode and I'm like listening to these guys talk about how it's a myth. They only know one person that's ever done it. It's not easy to know the reason a bank would sell you a note. And I just have to chuckle. I have to chuckle because a first and foremost anybody can have a podcast. And that's the beauty of being a podcaster, Anybody can have a podcast. But the amount of bad information being shared out there from people who aren't doing it on a full time basis is just downright disappointing. If you've not done something, don't talk about it. Tell people, hey, I've never done this before. Okay, I can respect that. But when you get into, oh, it's never been done, I only know one person. I know that straight up is a fallacy and a lie. Straight up. All right. I know one of the guys used to work for a guy that used to get stuff from notes and traded those papers. I helped him do that. It's just funny. Two, another guy's really good friends with one of my big buddies that I actually performed, you know, a wedding for eight years ago who's bought from banknotes, bought BK Chapter 13s from all across the country from lean institutions. So the first, before I get into telling you why some of these myths that people talk about all the time, or some of the gurus who don't focus on non performing notes or want you pretty much just tied to them to get your note deals, let's go through some just common sense. These are numbers that I'm not, you know, anybody can google this information to find this information, okay? They can find these numbers. What I'm about to share with you is pretty easy. So let's just take it. Let's take what our preconceived concessions about buying notes from banks or OPM or I mean from private sellers, whatever like that. Let's first look at a couple different things. Let's look at some numbers.

Okay?

This is just googling a couple questions straight into AI. Tell me about some of these numbers and tell me about that and then we'll talk about the rule of numbers and averages. Okay, so before I get to the number now, I also reached out to one of my good, good friends and I'll tell you what he shared with me too, besides, because he's buying notes direct from banks as well. Okay, so let's talk about this number, 4539. Now that number is going to fluctuate a little bit. Okay, that's the licensed number of lending institutions that were on file in 2020 with the consumer Finance Protection Bureau. I saw another institution that said, hey, that number has grown to 5311 in 2023. I don't have an exact number as of today. So I went on the low side. Let's just say there's 4, 500 because we know some lending institutions have gone out of business. Now that's, you know, that's just licensed lending institutions. Some banks have bought and sold grown stuff like that.

Okay?

But that's according to the Consumer Finance Protection Bureau. Not my numbers, them. 4539 licensed lending institutions making loans. Okay, now the next number is 19,655. You want to take a guess what that is? Well, no, that's not the number of loan officers out there. 19,655 is the number of non bank licensed mortgage lenders who are originating loans. Okay. And that's from the Cato Institute back in 2021. Now, that number has probably gone down a good chunk since. We've seen a lot of things change, but let's just say that number's still been cut in half. Okay. Still 10,000 plus non bank.

Okay.

Non bank licensed mortgage lenders, mortgage brokers who are originating paper, institutional grade paper.

Okay.

All right. And that includes mostly mortgage bankers, a big chunk of mortgage bankers who have a line of credit or a warehouse line with a bigger bank. We'll go into that, but that's a lot. Okay, you just add those two together, you've got 4, 500, roughly non, I mean licensed lending institutions, and then 19,000 plus non bank licensed mortgage lenders. That's over 25,000 or roughly.

Right.

At just about 25,000 institutions originating paper. Okay, 20,000 originators. Okay, 556,000. Nope, that's not the number of loan officers. That is the number of licensed mortgage loan origination originators based on what the NMLs had to say. So over half a million people, loan officers originating some sort. Now, that number's probably dropped down quite a bit because of people getting out of the industry. I know that in Texas alone, there are 65, 000 licensed mortgage loan originators, where most of them are working for a bank or a lending institution of some sort or mortgage company. Okay, so a lot of people originating paper. Okay, a lot of people originating paper. 1966. What is that number? No, it's not the year. Okay, 1966. I'm gonna take a gander. What that is. You probably don't know, and that's.

Okay.

1966 is actually based on the most recent Bauer Financial data that I pulled. Our Financial is a third party company that evaluates the quarterly reports that FDIC chartered banks and then credit unions submit their quarterly report. So based on my recent. The most recent report I pulled from Bauer Financial, it showed me 1966 banks who have five or more branches. Now, why is five or more branches something that we target? Well, it usually means they're a little bit more willing to sell. They've got a little Bit bigger portfolio. Those that have under five branches usually aren't willing to sell any type of notes at a discount. They just can't take and sell a non performing note at discount. They just can't afford it. That's not being said. They don't move some stuff. Okay, We've bought some paper from them, we have negotiated some stuff with some smaller banks. But for the most part that's the number of banks out there that, that have five or more branches. Okay, now you think about that. That's about. So basically that's 40% of the total licensees out there. All right, so that means 60 have less than five branches, which is totally common to say. But that's still a tremendous amount of lenders. Banking institutions. That's bank institutions selling paper or having paper for sale.

Right.

A thousand fifty. You may want to take a gander at this. This is the number. 1050 is the number of licensed loan servicing companies, give or take a little bit. According to the CFPB when it last pulled it in 2023. Okay, 1050 licensed loan servicing companies across the country. Now some of those are going to be licensed in multiple states. We're just going to be licensed in Texas. I think if you go to Texas right now you go to the Texas Savings and Mortgage Lending and do downloads about 50 servicing companies that are servicing loans here in Texas alone and doing stuff elsewhere. But 1:50, give or take a little bit, that number fluctuates. But based on like I said, most recent data pool, that's servicing companies. Now if you can imagine the amount of loans with them, okay, there's quite, quite a bunch of licensed loan servicing companies servicing paper for the likes of you and me and other banks and lenders.

Right. Okay.

Now really the top 10, well I'll just say the top 20 of these servicing companies are going to be like your bank of America, your Chase, and you're going to have a mixture of some bank servicing and then non bank servicing companies or servicing companies that just work on behalf of lenders. Okay, but that still leaves a thousand plus licensed loan servicing companies across the country servicing product performing and non performing paper. Okay, Lots of product, lots of opportunity. Right. 67%. What does this number mean? The number of times you can strike out and get to the hall of fame. Two thirds. That's about right. But no, out of that thousand fifty. Let's go back to it one more time. 1050 licensed loan servicing companies. 67% of servicing is being handled by non bank mortgage companies. So if you take that Back to the 1050 is the number of servicing companies. 67% is being handled by non bank servicing companies, non bank mortgage companies.

Okay.

They're servicing the loan. And basically that equates to 87%. I'm not going to make you guess on this one. That equates to 80% of the total upback being serviced right now by servicing companies.

Okay.

Now, can you buy notes directly from servicing companies? Yes, you can. You just have to get to the right person in charge of business development at the servicing companies. Can you buy direct from banks? Yes, you can. Depending on some situations, we'll talk about that.

Okay?

But this number is what I want to share with you. 625. Okay. Now I reached out to a buddy of mine out in Irvine and he works for a company that gets all sorts of note tapes. And, and he, and he's originally from Austin. Here we were talking, I asked him, okay, what's your business? Mike goes, oh, we have about 30 to 40 people at any given time calling banks, calling lens institutions to get paper sent to us to get notes that we sent. And I bought from him. There's a lot of stuff they said, I don't buy scratch and dance, some other stuff, some fanny may insured stuff. But I asked him today, I said, hey man, can you tell me the number of banks, just the number of banks selling notes to you direct at any given time in the last 12 to 24 months? And he came back. Yeah, we got 625 banks that were direct to that sent us product for sale. Okay, sale. I'm g. Let that sit in there for a second. 625 banks from my one source of banks selling product. Now, one of the things that he has worked and his team have worked is they call, they follow up, they dial for dollars, they pick up the phone, they leverage LinkedIn. All the things that we have done for years too. And we continue to follow up with drip marketing. That's one of the big things he said. The thing that makes us unique is that the fact that we follow up. We've got people that have portfolios of a list. They call, they dial for dollars, they Follow up on LinkedIn, they follow up with email, and we drip blast on an almost daily basis to people out there and we get stuff sent to us and we market it all out. Yeah. Are you by yourself? Yeah. 40 people. Can you afford to hire four people? No, you can't hire 40 people. But guess what? You don't need to. Ladies and gentlemen, there's plenty of opportunity out there. And that doesn't include the all the other banks we were talking about. All right, remember 1966, okay, he's not even got a third. He's just under a third of the total banks out there with five or more departments now, that's including the bank of America, Chase, the City, Wells Fargo. Yeah, you're not going to buy from those guys. We know it. Okay, you're not going to buy from them. But it leads to a lot of opportunity for people out there who have lists, lenders, banks, non bank lenders who are selling paper. Okay, you don't have to buy direct from a bank. God knows I bought from a lot of funds over the day, over the years and institutions and banks, stuff like that. But guess what? The reason I go direct to these guys, stuff like that is for a couple of variety of reasons. But if you're going to listen to somebody tell you that you can't buy from banks, it's because of a couple reasons they've never done it. Here's a list of just some of the banks that we've bought from over the years and institutions. Everbank, Synovus Bank, Guaranteed Mortgage Lending, US bank sends their stuff out once a year. City Vest we bought from the Spurs, Capital Regions Bank, Pontus Capitals, Summerlin Asset Management closed on a couple deals. Bank of the west, we've got their stuff. U S Century bank was one of the big Florida banks that still has stuff that we've bought from. Heck, I took 2 of their asset managers to Miami Heat game. I'm Quebec out of California Zion's bank, they got one person handling the residential. Twelve people in the past have handled the commercial notes for sale. Wells Fargo, we've bought commercial notes from them. Wells Fargo has a variety of subsidies. I mean companies, not just Wells Fargo, Wells Fargo won't sell you a one off residential note, I'm gonna say that right now. They're not going to do that. There's no reason for doing it. But they will sell commercial. They have a different division for their multifamily called Wells Fargo Multifamily we've bought stuff from before Capital One, what's in your wallet bought from them. One of the big banks we first got with Greenpoint Mortgage was that part of their rocket Mortgage sends out their stuff once a quarter. Truist bank, we just looked at a tape from Trust bank about three months ago on the residential stuff. Oceans bank out of southwest Florida bought a lot of stuff from them over the years. Wells Fargo Financial, the first bank that I bought notes from.

Okay.

Before they went out of business, we bought quite a bit of stuff. Crown North Corp. Is a commercial servicing company that we've bought notes before through on commercial assets from a variety of different lenders. Quicken Loan sends their stuff out once a quarter. We bought from Palmetto State Bank. We bought notes from them before it was on a commercial.

Okay.

This is just a drop in the bucket, ladies and gentlemen. You know, I could go on. I've got files and files of non disclosure sign with so many banks talking about the list that we've bought from them.

Okay?

Now the thing is, why would banks publicize. Banks aren't going to publicize that they're selling notes. They're not going to do that. But you've got to get into the right department to talk about it. I mean, hell, Wells Fargo, if you look at the news articles, Wells Fargo took out a huge loan just this last week to stay in business. In a lot of cases, if you had a line of credit with Wells Fargo, you, your line of credit probably got shut off or cut in half. Okay? There's a lot of banks in trouble that are not doing very well right now. It's going to lead to opportunity here, maybe like 2010, I don't know. But some portion, even a third of it, makes it worthwhile to learn how to buy notes direct from banks when you do it. So let's talk about some of these myths, why people are talking about it.

Okay.

Myth bank won't sell. You won't sell to you because you are too small. You're too small, they won't sell to you. You're not smart enough. You're dumb. The truth is that, is that straight up, flat out a lie.

Okay?

Many banks, lenders will let you cherry pick deals. You don't have to have the next myth or $5 million, but they don't care as long as you pass the smell test. They would rather sell you something than nothing. When I got to Wells, when I got into Capital One, what's in your wallet? Okay, they sent me this big list. I've talked about this before. 33 page PDF. I was like, I can't buy this. They're just like, buy something. Okay, yeah, you look too small because you don't have any social footprint. You're not on LinkedIn. You're not marketing properly. Yeah, you look like a po dunk little investor like a lot of people do. You got to change things a little bit. Truth. I need to have millions of buy notes from Banks. No, once again, you don't have to have millions of buy notes from banks. Now if you're going to be buying million dollar apartments and things, then you need that. Okay? But most banks are not asking for a proof of funds on the front end. They figure that if you've gotten into the right department, you belong. You know what to say, what not to say. You belong. And they know people use money, opm, private money to fund deals all day long.

Okay?

Yes, banks will let you cherry pick deals. A lot of times if they send out a tape to you, they're gonna let you cherry pick. It happens all the time, residential, commercial. We've had a few sources where they did want the whole port being social. It just wasn't a portfolio we bought. But there's been plenty of times we bought one off notes. Other times we bought 338, 75, 25, 54. Okay. There were some trades that we had to buy the whole tape and we got a bigger discount for that. Okay, but you're not going out and buying a portfolio from bank of America, Chase City, Wells Fargo. Yes, you would need $50 million to get in the into this, but you're not buying from that. Guess what? That's 10 lenders. Remember 1966. Okay. Now you've got 1956 banks to talk to. Okay. Oh my God. That would take you a while to call those many banks. You don't need to call every one of them this one a little long here. Myth Banks have no motivation to sell you notes. That's not 100% correct. They do have motivation. Banks have no motivation to sell you performing notes. There's no reason they're going to sell you performing notes. So that's the big thing. They have no motivation to sell you performing. There's no reason to sell that at a discount. They're going to hold that. That's what they want. That's how they're design. They want performing paper the cash flow, they want that coming and that's how they work.

Okay.

But they do have non performing stuff and depending on what's going on, that bank's portfolio and the reserves as what they have. Yes, banks will sell you notes. We had a bank in San Antonio, one of my mastermind groups had had 31 notes available for sale, 17 or performing. They just wanted to sell this whole like loan portfolio off because they didn't want it to be the bad guys foreclosing in that neighborhood. It was a little smaller regional bank.

Okay.

I've had banks lie to Me tell me they wouldn't sell me. They had non performing. I said no, you do. Based on a quarter report and what I've heard, they're like okay, yes we do. You know, and get in that conversation, is it always going to be a good price? Do we follow up again and again? Yeah, just like we would with any other type of real estate. Lead. Follow up, follow up, follow up.

Okay.

And banks will sell depending on where their, their bank's portfolio, reserves, what do they have on their books? Okay, maybe they only move it once a year. Maybe it's that last quarter, the fourth quarter or the first quarter. I've had banks that took four months of negotiation back and forth. They finally realize and go and close on an individual asset with them. It just did what it is. It takes time. All right, here's another myth. Myth of bank a bank, well just foreclose versus selling. No, no, they don't want to just foreclose now. Yes. Here in Texas and Georgia it's a little bit different because it's fast foreclosure and that's dependent on the state. Okay. If a not if a note is not performing and they're in a long foreclosure state. Yeah. They would probably be glad most of the time to sell you the note at a discount.

Okay.

And it all depends on their legal where they're at reserves wise, what's going on in the market. Banks will sell notes to recoup cash. They would rather get that 50, 60 cents on the dollar of what's owed to them or the value because they take that in and that frees up any reserves they were holding on that one perform non performing note. Because if a bank has a non performing note, they've got to hold money back in reserves. That stops them from lending. Okay. Yeah, they're not going to sell a Texas note at you know, 35 cents on the dollar. That's not going to happen.

Okay.

But maybe they will sell it at 65, 70. All right. Or they'll just go ahead and foreclose because it's already done. Especially if it's a note that they've gone through the foreclosure most of the foreclosure process. And the foreclosures may be in 30, 69 days. Hell, they'll may probably still sell it off. Depends on where it's at. But it's not the whole thing is that when you look at every state's different in foreclosure time frames how problem a borrower is. Maybe they need to move some stuff off their books, a lending portfolio, other things or they got some legacy assets they want to get rid of. Legacy assets means they took over a portfolio when they merged or bought another bank. There's a lot of reasons that they'll sell stuff. Okay, But a bank will always just foreclose versus selling out. It all depends on what state it's in. Another thing, banks want to take my house in real estate. They want to own real estate. That's the big falsehood. No, banks don't want to own homes. They want the cash flow and reo. A real estate owned asset to them is a non performing asset on their books. Now we have had some banks foreclose on commercial properties. Some of these multi families are way over encumbered and they don't want to sell them right now at a huge discount. They found and adjusted their commercial lending side in some cases like hey, we're going to operate this but we're not going to operate it ourselves. We're going to bring on a partner to operate that asset and we'll split profits and we'll ride through this wave. Which makes sense. Okay, but you start seeing emails and letters and things like that and like the real deal where there's banks out there selling their portfolio off signature banks, legacy assets being sold off because it's been over a year now.

Okay.

Yes. Do you need to have some money to buy that asset? Yes. If you're gonna be buying million dollars assets you gotta have some money. But there's also a ton of residential notes that are non performing that they're wanting to work out. Okay so just is what it is that I've got a list of notes in right now that a bank is willing to sell at a bit of a discount. They want a little bit more but there's mortgage, private mortgage insurance with it. So I'm going to get a 20 to 30% of whatever I foreclose on. There's that insurance to cover. Make sure I'm hold.

Okay.

There's a whole lot of things versus just being black bank wants to own your property. No, they really don't. They don't want, they don't want real estate on their books. They really don't trust me. Okay, now here's the thing. Why would people tell you it can't be done? I don't care. You know me guys, I don't blow smoke up your ass. The first thing I would tell you that is because they've never done it before and I know they haven't done it before or what I'm happening. The other one is worked on it. Maybe they forgot. Maybe they got amnesia from doing selling on a trade from Select Portfolio Services years ago. I don't know. Two is really where most investors are at is they are lazy. No offense. I get it. You've gotten the habit of marketing like it's the old days of sending out direct mail campaigns and not having to follow up and just waiting for that 4% response rate. Or you don't under social media, you don't. You're afraid to be out there. You don't want your boss to find out you're on LinkedIn talking about notes. Okay, look, it. It takes marketing to do anything. I'll be the first one to tell you. We used to dial for dollars 50 phone calls that you don't need to do that these days with LinkedIn and Lane Guide and Bauer Financial List and all. Some other things. Distress Pro. There are services that you can sign up for that will make it easy for you. It's just different marketing. Okay, here's a number three reason why. And it's probably the number one reason. Most of the time they only want you to buy notes from them. If they tell you and convince you that banks aren't going to sell you notes, guess what? They just gave away their power. Nobody's going to look at their 100 or 130 or 160 or 75 crappy notes they have on a platform that are crappy notes. They don't want you to go looking for deals. They only want you to buy from them. Oh, you're too small. Here's a list of 30 notes that I've already cherry picked through.

Okay.

All these have been sitting around forever. Yeah, that smell is not dead fish. That's dead notes.

Okay.

And what's unfortunate is most people, let's just be. Let's be honest, the. The real estate bros. Guys, stuff like that, we all are kind of maosa right to to say otherwise makes us look weaker, ignorant in our minds. Ignorance is out there. And that's one thing about podcasting. Everybody can have a podcast. We're a live stream. You can spout whatever falsehood you want or whatever limited belief you have as the truth. You can buy owner finance notes if you want to do that. You can spend thousands of dollars each month on direct mail campaigns to get a 4% response rate and then have to argue with that borrower or try to negotiate bar down. Can you get some great discounts? Yes. You can get some Great discounts off that stuff, but it's not a repeatable business model. You're not going to close on 100, 200, 300 notes to help you get to that retirement if you don't put money or marketing behind it. I like putting the marketing side behind banknotes because guess what? It leads to deal flow.

Okay.

And once again, I don't want people to look stupid sound right, but you need to know the truth. If you choose like I don't want to do that, that's completely fine. But when people are out there blasting falsehoods and lies and so only one person has done it, that is a straight up. I can tell you right now, we've got 30, 40, 50 people who have bought direct from banknotes and other lending institutions. That's what we teach.

Okay.

I can go right now into my database and pull an email database about 4, 500 banks and contacts off that stuff and another 10, 000 mortgage bankers from stuff that we've worked over the years. It's not that hard. Now let's talk about what are some of the advantages of buying direct from banks? Well, it's pretty easy. It's a repeat deal flow. Like I just said. Yes. Will a bank have maybe just one note every time? Yes. But other banks have other stuff. So the great thing is getting repeat deal flow. Maybe it's once a month, maybe it's once a quarter, maybe it's only once a year, but that's okay. You should not be relying on one source just for your deals. You need to be going out and constantly developing Legion. It is what it is. The number two is one of the biggest things for a lot of people. I know a lot of real estate investors out there are bootstrapping their marketing. No direct mail costs. Okay. We're not sending out letters and campaigns and trying to get, you know, spending thousands of dollars on direct mail campaigns. That gets burned up when you could hire somebody to dial for dollars for you. You could use Octopus CRM for like 22 bucks a month to reach out to asset managers. Or you can download a free list of mortgage bankers and do a drip marketing campaign. Okay. Number three is that bank paper is cleaner paper and by cleaner paper means it's, it's got uniform files. Every file looks pretty similar. Yes. Don't be wrong. Some files are gonna be different, but it's the same type of file. You read a, a mortgage on a, from a bank institution. It's probably going to be about the same type of thing. The assignments are going to look similar, the launches, the 1003 loan application, you're going to have more information versus owner finance. Notes will differ. So by so much you may not have any qualification docs, no financial docs. I mean it's a complete shit show. Sometimes when you look at owner finance paper now if somebody's going through an rmlo, it's usually in pretty good spot, but we all know not everybody does that. And then you have the issues of people not servicing their loans properly, trying to sell service. Well, you're not going to have that from a bank or lien institution. They're going to have a third party servicing company or servicing software that gives you everything you need to know in a nice clean package.

Okay.

That makes that paper much more valuable.

Okay.

And yes, I think you're going to get bigger discounts and less headaches over time. We've seen that done. Yes. Are you getting or you know somebody you know, are you going to get a bigger discount or maybe an owner finance selling it from time to time where people are motivated and stressed. Yes, you will. But you also get big discounts from banks and lane institutions of paper they need to move off or the tail end of the tape where they've purchased.

Okay.

It's not like 5 cents of the dollar like it used to be. Will it ever go back to that? I don't know. Yes, we bought stuff at 5 cents on the dollar or less.

Okay.

And the fact that you get bigger discounts is still leading to higher returns most of the time depending on what you're doing specifically on non performing notes. Usually a non performing note is definitely going to outperform a performing note or even a reperforming note in a lot of cases. But you've got strategies, you've got 10 to 11 different strategies with non performing notes to make some money. And here's the number one rule. Why you have to understand the process of non performing. Because every note at some point is going to go non performing. In some case bar stops paying. What do you do? We just had a guy that was like, I bought my first note, didn't really take a class and I screwed up in four different ways because I thought I knew what I was doing. You got to understand it's different. You got to understand notes. Buying notes is different than buying real estate.

Okay.

And you can't listen to people that have not done it. It's like the four minute mile. Oh, it can't be done. You're going to die. Well, guess what? You can run a Four minute mile now. Oh my God, we can't go to space. Well we sent a monkey up, we sent a, a man up and now we got people trying to move to the moon. We're going to Mars. You get what I'm saying? It's not as difficult as it used to be during the 80s, you know the Resolution Trust, corporations, a lot of portfolios being sold, a lot of assets being sold. Notes is where everybody wants to evolve to. Those aren't my words. That's Corey Raymer's words from one of the guys we had on this week. But it's the truth. And you have to grow. Yes, it's comfortable just being in your own little thing and looking at a couple notes as a hobby. Especially if you're working a full time job, you got all your benefits paid for. But an employee mindset will never teach an entrepreneur to succeed. If you've got five grand, ten grand a month coming in a salary, kudos, good for you. But quit telling people things out there that you haven't done as it's as law. Okay, now what are the disadvantages I'm gonna be equal on here? What are the disadvantages of buying from banks? You have to market differently. Talked about this LinkedIn down for dollars, having a website passing the smell test. That means by you have to act professionally. You gotta look it.

Okay.

You're not going to show up the local real club meeting. You got to dress the part, look the part and you're going to have usually higher price points. Not price percentage but price points because they're not usually doing loans under a hundred thousand dollars. So if you're gonna buy, be prepared for what's going on in that market. I mean you can't get at a discount. That's not what I'm saying. But usually price points can be higher than your mom PA or people who are owner financing property because the borrowers won't qualify. Traditionally.

Okay.

And now a bank may also only offer notes one times per year. You got to keep them on U.S. bank since their stuff out once a year. Okay, well that once a year I got a portfolio to take a look at. You can't live on that for the entire year. Maybe you can depending on you buy. But that's the thing is buy create multiple sources for deal flow. Plenty of sources out there. Number five, you're not going to buy a partial note from a bank or sell a partial to a bank. Just not going to happen most of the time. Now there's like first American fanac First, you know, Fanac got the First National Acceptance Corporation. They're a bank out of Michigan. They will offer buying a port, you know, a partial. That's an exception to the rule. Most of the time, okay, you're not going to get performing notes for sale from a bank most of the time. Occasionally you will, but usually you won't like that one situation of buying 31 notes, they got 17 performing an 18 yield.

Okay?

Sometimes you'll get it. It all depends on the lender, what they're trying to do. But most of the time you're chasing performing notes. You're not going to get performing notes. Most of the time they may get some performance that are matured beyond their term and you could do that stuff. But most of the time a bank's not going to, you know, I want a portfolio. Portfolio performing notes at 15%. No, a portfolio performing notes can sell at par.

Okay?

And you're going to have some notes that require special servicing, special licensing. If you want to buy VA loans, if FHA loans, your servicing company's got to be licensed that area and be willing to do that. Those types of loans that may cost a bit more. All right? Of course you got to do everything else. Never buy a note you don't want to end up owning. Make sure it's doing the due diligence of BPO, O&E. Those things are uniform across the board.

Okay.

But I always love getting more deal flowing that I can cherry pick from. I don't. I'm not required to try to do a skinny deal or only limited to 100 notes on some platform or some 30 notes that some guy is sending me out there.

Okay?

This is what we teach in our virtual note buying workshop, guys. How to find deals, how to fund them, how to flip them, how to build relationships with banks and assimilators. I literally give you the step by step process of how we follow up, how we connect with bank assimilators, how we find the right people on LinkedIn to start connecting, what to say, what not to say, screenshots of what we actually say to get people to reach out to us. And yes, it's all about the follow up.

Okay?

Our upcoming workshop is July 25th, 26th and 27th. It is the number one investor recommended workshop for non performing notes. Okay, well, you'll learn how to become a note investor by taking the 3s and applying. You've heard of the Burr strategy, right? We have that same strategy for note investing. Buy rehab the borrower and get them back on Track.

Okay.

Or take the property back and turn into an REO and keep it if you want or sell it.

Okay.

It's live on Zoom. Friday, Saturday, Sunday, we'll be going live on Zoom at 10am Central. So it's a little bit earlier. It's a little bit later than those on the east coast, but better time for those on the West Coast. 10am to 6pm on Friday, Saturday, Sunday will be 10am to probably 3 on Sunday. So because we know your mind can only absorb what you're asking with stand. All right, as reported, you can sign up today still discounted tickets available at Note buying for dummies.com or you go to our website. We close notes.com and get signed up there by clicking the upper link under training. All right, look, we are here to help you take your business the next level. I encourage you to pick up the phone and call me. I know I make my schedule available to you guys. If you go to talkwithscottcarson.com you can book a call with me. I will take your questions. I will answer your questions. You have fears about buying. That's what's up. What's up? Somebody else said this. Look, I'm glad to lay it all out there, but you have to use your head. Ladies and gentlemen. I'm not here to sell you notes, okay? If I do come across you, I'll sell you some notes and make some profit on them. But I'm going to disclose, hey, we're buying the these direct. If you're part of our coaching program, guess what? You get access to our database, you get access to our resources because it's being done. And we've helped hundreds and hundreds of investors over my 15 years of teaching since 2010 learn how to buy notes direct from banks.

Okay?

If it wasn't possible, I would not be here today. As you should see there, there's plenty of lending institutions out there, plenty of non bank institutions creating paper, bank paper that you can buy, that you can work with. It's all about comes down to y o U and how much you're willing to market and how much you're willing to reach out to. If you want to be lazy, be lazy, that's fine. But I know a lot of folks have some big goals and you're not going to get that big goals by being lazy. You know, you got to put a little w o r K. That's work. Put some work into it. It's not that hard as most people think it out to. People only say it's hard because they've never done it or don't want you to do it because they want you beholden to them for deal flow. All right, that's the truth. Nothing but the truth here, ladies and gentlemen. And as always, I want to say thank you for listening. I hope this was intelligent. I hope you enjoyed. I hope you saw the overwhelming numbers alone of paper out there that you can reach out to. Is everybody going to have something available for sale? No, they're not. But you're going to have a whole lot higher success by reaching out via LinkedIn or reaching out some of the list we show you how to do than you will by dropping a th000 mail pieces. All right, go out, take some action buddy and we will see you at the top. Hey everybody, Scott Carson here. Just want to say thank you again for listening to the podcast. If you've been listening for a while, you're subscribed to the podcast. First of all, thank you. Second of all, hey, you know, if you're you're not one of our coaching students or you haven't signed up for one of our three workshops, here's an opportunity for you. You want to check out our WCN membership. This is the biggest bang for the buck of the notice. Besides our one on one coaching, this is our monthly membership for 97amonth that gives you access to all of our online training, our virtual workshops, our note weekends, our special one day masterclasses that we've taught in the past, anything that we have going in the future. As long as you're a live member, I can't make you or save you $97 a month. I'm doing something wrong. But save you paying 997 or 99 bucks or 399 here or anything like that. We make it affordable at $97 a month and like I said, it gives you access to all of our past replays, our upcoming classes, our access to our special classes. We also do weekly coaching calls with our WC members and also our WC members also get first crack at tapes and lists of notes that we get in after our one on one coach students. Take a look at them. But it's a great way for you to go. You can also schedule call with me anytime to go through deals that you're working on marketing things, questions you got going on about a deal. We're here to help you. So how do you get signed up for that? Really easy. Just go to noteumbrella.com that's noteumbrella.com get signed up there for you. $97 a month, guys. Like I said, biggest bang for the buck of the N street. And we want seeds of the family. So let's get you signed up today. That's not umbrella.com. welcome to the no family, everybody. And thank you for always, for listening.