How to Avoid Daisy Chains?

Foreign.

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

Hey Note Investors. So you want to dive into the world of note investing but no know how to get started or you don't want to pay 30, 40, $50,000 for a one on one coaching program that just completely does not deliver the deals or the funding or the access that you need to take your note business to the next level. That's why we have our one on one coaching program. I'm Scott Carson. I've been buying notes for 20 years. I've helped thousands of investors buy their first note direct from banks using either their own funds or other people's money to buy non performing, reperforming or performing notes yielding them an above average return. Now what's involved with my one on one coaching program? It's unlike anybody else's because guess what? You're working with yours truly. Not some paid student, not looking at some recycled list of stuff. Now what we do is differently than anybody out there and that's why we have such a huge success rate with our one on one coaching program. What's involved? Well, once you take in our three day class or not Buying for Dummies workshop, sign up for our coaching. You get 10 weeks of one on one coaching calls. These are on zoom in the morning, the after the evening. What works best around your work schedule. We accommodate this to help you start looking at stuff. And during those 10 weeks we focus on finding deals, making offers, getting your website, your social media stuff set up so that you are a lean note buying machine after spending 10 weeks of Zoom calls with yours truly. That's right, live not somebody else will spend two days one on one. And usually people come to Austin, Texas to hang out with us on a Thursday, Friday or Saturday, Sunday. And those two days are focused on whatever you are still lacking and need the most amount of work. One Sometimes it's making offers like Larry came In, we made 50 offers that he got 20 approved in a weekend. Other people came in to raise capital so we help them find IRA investors to fund their deals so they're able to raise hundreds of thousands if not millions of dollars for their note deals and other investing stuff. We're also going to give you a list of asset Manager contacts for you guys to dive into. That's right. This will be your LinkedIn profiles, emails, phone numbers, names, all for you to start reaching out to people. No, you don't need to buy notes directly from me. We're going to show you how to go to banks and contact them directly. We're also going to make introductions to our top 12 hedge fund managers that send us deals on a weekly or monthly basis. That's right. You go straight to the front of the line and guess What? There's no 10, 20 or 30,000 upcharge for the deal you buy direct from the hedge funds. Because we make the introduction, that's why. Because. Why do we do this? Because we know not, we believe, we know there are more than enough deals to go around. And yes, we make most of our money from buying note deals for ourself. Some people say, oh, you're creating competition. No, because there's plenty to go around. All right, we're also going to give you a one year membership to our WCN membership for one year.

That's $97 a month.

Usually that's going to allow for you to continue support weekly coaching calls along with access to our base camp group for other things, other tapes, other resources for our coaching students. We're going to help you with raising private capital, putting your pitch deck together, putting sample deals together, or your case studies that we've done, other students have done, or that you're doing so that you help raise capital or help you find IRA investors in your local market or the markets you're looking to buy in, you're going to also basically for you, plus your partner, spouse, person you're going through this with, you're going to have VIP access to me. That's right. Whether you need to jump on a quick phone call, a text message, a quick zoom call to go through tapes or notes that you're making offers on for us to review your bids or help answer a question. When it comes to loss mitigation, foreclosure, bankruptcy, what it might be about a deal you're working through, get VIP access to me most of the time. Come on now, everybody. We're also going to do a six month follow up day after you spent two days with me, six months later, if you want to, we can do a half day, a full day, zoom follow up just to see where you're at, what are you dealing with, where you're looking to go. Because within six months you should have already closed on several deals the way that we teach them. Because we will help you find your first deal and then some. We've had students have closed on their first deal in 30 days. We've got others who closed on six deals in their first 35 days. Other people closed on 100 deals in their first year. We are here to help you because guess what ladies and gentlemen, there is plenty of inventory out there. We're not going to focus on owner finance notes. We're going to focus on how to get people calling you with their deals or how to get banks sending you lists on a regular basis that you can cherry pick and show you how to raise all the capital that you need. Our one on one coaching program is the most complete program out there. That's why you have such a high success rate and it's cheaper than most of the others out there. And we also give you the biggest bang for the buck by helping you make the introductions, looking at the tapes, helping you bid if you're coachable. Now, not everybody's coachable. Not everybody can afford this. But what we can do is we can set up payment plans and different options for you. I encourage you to either book a phone call with me@talkwithscottcarson.com and we can talk about it. See if you're a fit and not everybody's a fit and that's a okay. But go to talkwithscottcarson.com, book a call on my schedule and we'll gladly talk about our one on one note coaching program to see if you're a fit. One of the very requirements is we do require people to go through our three day class but that whatever you've paid for that three day class is applied to the tuition for your one on one coaching. And we also have a third party provider who's willing to finance this and.

Carry financing for two to three years to help you paid off.

But we're going to work with you until you get your first deal closed. We want to help you make your money back in the first six months, if not sooner. So check us out. Pick up the phone, give me a phone call. Talkwithscottcarson.com that's talkwithscottcarson.com book a call and let's see if you're fit to take your business next level. Sometimes all we need is just a hand up to take you to the next step to show you the way. This is not a blow smoke up your tail, give you the crappy tapes left over or upcharge you 10, 15, $20,000 per asset. No, we want you to buy direct. And we've always found if you can show a man how to fish, you'll feed him for a lifetime. So let's get started.

You being a note investor for the rest of your investing lifetime. Good morning, good afternoon, good evening everybody. Welcome this episode of the Note Closure show. As always, Scott Carson, Jack to be here with you. It's good to be back after taking a couple weeks off to prep for our three day workshop and take a little time for R and R. But excited to be back in action here with you guys and sharing some great information to help you take and make the most of your real estate note investing training and get the most out of the market. Because we're really in a great time for deals. We're starting to see more stuff floating in that leads to this topic on today's podcast episode is how to avoid the daisy chains or how to cut in line. When you're at the end of the line of a daisy chain, how to go direct to the source and you're if you've been a note investor, actually been a real estate investor for a while, you've probably had this happen to you. Now what is a daisy chain? A daisy chain is when a seller has a list of notes real estate and they send it out to one of their sources, one of their buyers, potential buyers. Well, that buyer then turns around and sends it to his list or her list, then that list sends it out to their list. So you're literally 2, 3, 4, 5, sometimes 10 people removed from the direct seller. I've had this happen on my own stuff where I send it out to a buyer and a week later I get the same tape sent back to me, but it's got a higher price point or it said something else. And I'm laughing because it's my own tape. In a lot of cases that people will send stuff out, it's gonna happen. The idea here is when it happens, when you get a list in and this is one of the things I tell my students, when you get a list in, book a call with me, go to talkwithscottcarson.com book a time, shoot me a text message, email. I can often save you a lot of grief because I've had people get all excited like they got 500 notes in on a spreadsheet from a source. They said, well, it turns out that tape of assets was six months old. They had been sold three or four times and that what was on that tape was original list from six months Ago, which over three fourths of those assets were sold off to somebody else. So you might end up spending a lot of time wasting energy looking at assets and getting excited about tape that you aren't really going to have the opportunity to buy. I just recently got a tape in yesterday and that's the reason we're doing this episode. A student line reached out. He's been listening to the podcast. He's all excited. He got a tape in from doing some of the marketing that I teach you to do by on LinkedIn and reaching out to people. This guy sent him a tape first. The guy told me first this. My student said, hey, I got a tape in from a bank. I'm like, that's awesome. And as I started asking him what type of loans they were, it became obvious it's not from a bank because these are mezzanine loans, which are short term, like hard money loans and some dscr, which is debt, debt servicing loans, basically. Okay. And I'm like, well, a bank will do the DSCR loans, they're not necessarily gonna do the mezzanine loans. And as we started looking at the rates and stuff like that, okay, these are from a hard money lender or a fund that's lending on stuff. And he's like, I think it is. And so he sends me the tape and I'm look, I'm not trying to go around anybody. I ask who the guy is, he gives me a name. I'm like, I don't recognize him at all. I said, what's his email address? It's got some like Gmail account as an email address. I was like, okay, that's your first sign that it's not source. So I get the spreadsheet in. First thing I do is I look at it. Okay, it's got two tabs on it. I'm asking what is pricing? The guy says, I don't know what pricing is. I asked are going to get back to me on that. I'm like, okay, first and foremost, a seller that's selling is going to know what pricing is, what they're looking for. So like, okay, you're already released one or two removed the situation. I'm two to three removed from the potential seller. So after I look at the spreadsheet, I don't save anything. I don't save the spreadsheet, I just download it. And then I go to like, I'm going to save it. But I look at when I hit the save as, but I go down to look at info which is a tab in the Save as tab on Excel. Well, when you look at info on the right hand side, it pops up two little spots. One says the creator and the date that the tape was created. And then it gives you the name of the most recent author or the person that edited it.

Well, good.

Lucky for me, the created date and the author date were the same. August 4th. Well, it's the 8th now as we record this. So that was four days ago or three days ago prior to me looking at this tape. I said okay, this was recently created, which is a good sign. It gave the name of the company and then the, the guy that was the author of it had a unique name. So I just copied his name over it to LinkedIn and copy paste his name into search. And sure enough, there pops up this guy that works for the fun. He works for the company that shows on it's a three digit name. And I'm like, oh. And I actually click on messages and I've actually exchanged messages with the seller before. It's been a few years, but we've actually exchanged back and forth. I was like, okay, great. So those are a couple of tricks right then and there. If you get a tape in, look at when it was created, look at who the creator was. If you're not talking to the creator or somebody at that same organization of who the creator, the author of that spreadsheet is, you're probably dealing with a daisy chain. Now you can't find that information, only shows the person on there says it was created a few months ago, but, but updated a month ago, which that might happen as assets are sold off. What I like to do is I'll go and look at an asset that's in an accounting that's pretty easy for me to find. Like there were some assets in Texas on here, like Victoria, Texas, which is down by Houston. There's a couple in Houston, San Antonio, the Valley couple in Florida. So I immediately go to the county records in those areas and I start looking at the ones in Victoria, Texas. Here I'm like, oh, it's easy enough for me to find a deed attachment and sure enough, that same company who created a spreadsheet is listed as the lien holder against the property by just looking at deed search and typing in the address and the borrower's information. So in a matter of like 5 or 10 minutes I find that this is a legit tape, but I'm a couple people removed and I've already reached out on LinkedIn. I'm the phone number at the website went to some strange voicemail. The Website only says 2022. I know this fun is has been around for a little while because I know it's been around at least 12 years when we first communicated. But it hasn't been updated while the contact us isn't working. It's like, okay, maybe they're just haven't spent time on their website which is kind of common whether you think about COVID and everything. But they're out of Florida. I reached out find the guy on Facebook. Sure enough he's connected to a few of my buddies are also in the space. And I'm like, okay, this is a legit seller, let me reach out to him. That's why I did. I sent him an email and I said, hey man, long time to talk to Hope all is well. I just got a tape in that I believe is from you, shows that you're the creator on this. You just created this a few days ago on August 4th of this year. I don't, I bet you didn't know this is part of a daisy chain or that's been shopped around. I'm interested in buying some of these if I know accurate pricing and I would rather deal directly than going through a daisy chain. That's what I sent. Now some people might get a little butt hurt like, well, didn't you violate a non disclosure agreement that you may have signed with the person that sent you the tape? And here's the thing, the person that sent me the tape, I didn't sign a non disclosure. I'm not going to sign a non disclosure agreement when it's a daisy chain. All right. Another thing to tell that you're in part of a daisy chain. If the addresses are removed, it just shows, you know, city, state, zip. But the addresses are removed or it's as we call that sanitized. If you get a tape in that sanitize, that means you're dealing with a broker who doesn't want you to go, you know, find the right person that owns it. And I, it's. If somebody is blasting this tape out and it's 2, 3, 4 removed, trust me, the seller doesn't want that to happen. So if I go direct to the seller and I buy directly from, I'm not paying fees to the people that were in the daisy chain beneath me. I went direct to the source because I want to deal direct with sellers. Sellers want to deal direct with buyers, not go through the same thing. All right, so if you're new to note investing, don't be a part of a daisy chain. And a lot of wholesalers, people that want to get into wholesaling notes, they look at wholesaling as a great way to do it. And so they, unbeknownst to them, they start this daisy chain process by sending out to anybody they have. Don't do that. If you have a buyer who's buying in a specific area and you get a tape of notes in that are in that area, like Texas or Florida, okay, slice that tape up a little bit and send the information that, hey, I got some notes in one or two of your areas, I think you might be interested, but please do not blast this out to anybody. And this is also comes from knowing your, your database. If your database is full of wholesalers, guess what? They're going to blast the out of the list. If you're dealing with a lot of direct buyers, they're not going to blast it out because they don't want to lose out on potential deals that are coming directly from them. And that's the biggest thing. If the guy sent me, and don't be wrong, if I do end up buying something, I'll take care of the guy that sent me, the student. I'm not going to cut him out of the deal. I'll pay him something. We'll work together on something. But I got to make sure I got accurate price. I'm direct to the source. And yes, if it's a performing note, I'll put, you know, one point or half a point's pretty common. If it's non performing stuff, it could be one to three points. It all varies on stuff. Depends how big a discount we can get. And that's why I'm going direct the source, because I'm not getting direct answers. That makes sense from him because I got an email from him today. Oh, the seller says we can get these at 70 cents a dollar. Mike, I doubt you're going to be selling this performance up at $0.70 on the dollar. Just doesn't seem to make sense to me with what's going on in the market. And the guys I just make offers. Make offers like, well, if I'm making offers, you're just going to use them to try to go sell them to somebody else or sell going back and either discount even more. And if I'm sending you an offer at $0.70, you're probably going to submit it at 65, Tom. Which is going to make it even less likely that this deal ends up happening. So save yourself a lot of grip if You're a legitimate buyer. Even you're buying one asset, maybe not the whole tape. It's still worth going direct to the source because you're going to get better pricing, better data, faster answers. And guess what? That seller is actually going to appreciate you for reaching back out to them and saying, hey, this is floating around. I don't think this is what you want. And I'll share an example. A few years back, we were. We bought a big tape of notes. Big tape of notes. And the idea we were buying this at like 20 cents of the dollar. It goes back a ways. And our goal was to move it at $0.40 of the dollar. And we. It was about 175 assets. We get the tape in, we close on this thing at a great price. Actually end up closing on about 12 cents of the dollar. Tells you how cheap it was. But the goal was to move this and find one or two buyers that could either buy the whole thing or buy half the thing. Well, one of the guys involved in the transaction, he sent it to a guy to review. Well, that guy that was going to review it wasn't interested in buying. He just wanted to try to flip it himself and help in the sale. Well, he blasted out to everybody and reduced the value of that tape because suddenly this tape was an exclusive, is all over the place. Which made legitimate buyers nervous that this was just another tape and part of a daisy chain was floating around. And the value of that assets are reducing to the point where we couldn't flip it anymore. We had to look at working those assets out ourselves because this idiot won't say his name, wanted to strangle him. I'm like, are you kidding me? You just blasted out to everybody. We didn't give you permission. The guy on the team that sent to him, I literally wanted to strangle him too. I'm like, we had a buyer lined up for two potential buyers lined up, who both walked away from. Because they started getting this from other sources. And they're like, this is not as. You don't have exclusivity on this. Like, yeah, we do. We bought it. We own it. We're just waiting for the assignments to show up from the seller on this. So don't fall for that trap. Don't. Don't contribute to stuff like this happening. It's this time of year, as we get into the fourth quarter, we see this happening more. So you'll get people that call you so that they're seller mandates or seller reps and that you got to jump on A conference call with another conference call, another conference call. Don't do that. I hate that. It's the biggest waste of time. If you're not dealing direct with a seller or direct with a buyer who's buying for their own investment, don't waste your time dealing with seller reps and seller mandates. Who. There's a couple of folks out there years ago that were teaching that shit in the industry. Their videos and stuff are still up. Teaching that crap and that stuff is not how this business works today, okay? If you're, if you got $20 million a month to buy stuff, you're not going to buy from me or buy from some wholesaler. You're going to be buying direct from banks and institutions at a better price or buying direct from Wall Street. So keep that in mind because I can smell a fake in five seconds on the phone and so can other people as well, too. So don't fall into that trap of being in the daisy chain and becoming a joker broker. And that's what it's all about. So avoid the traps, the danger, the landmine of getting tapes sent to you that aren't direct from sellers. Become an asset to the industry. Reach out to directly the sellers. Tell them what's going on. They may not want their tape balls tonight. Maybe an exclusive trade they're trying to move, but it'll add value to you and you'll be valuable to them because now, oh, you're legitimate. I'm definitely interested in dealing with you if you're a direct buyer or seller. So hopefully it's valuable for you. Go out, take some action, buddy. And we look forward to seeing you all at the top. Bye.