Mastering the Bid: How to Submit Winning Offers on 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. I know it's the, as we sit here, it's like the Monday before Thanksgiving and a lot of people are off this week. I know that schools are out and that's great. It's kind of a lighter week for a lot of cases. We have some bids that are due that we'll be submitting in tomorrow. If you, if you're part of our WCN crew and took a look at the 280 or the 278 notes that we kind of went through last week on Note Night America. Your bids were due by Friday and I expect to submit by tomorrow. So I'll be adding mine there. And combine the list makes it a little challenging today with Microsoft Outlook being down, but we'll, we'll work through it. But I wanted to go through the effective way to make the right way to make offers. And I'm not going to talk about the math behind it. I'm literally talking about how do you submit an offering. It's, it's actually very, very simple. A lot of people will overthink this. It's not difficult at all. And it comes down to trying to, if, to think about the person that's putting the bids together. Now if you're buying just a one off note from Jim Bob Joe, okay. And you're just back and forth via Facebook or email, just, and it's only one note telling them what you're going to bid for the note is completely fine. There's no issues with that. Just sending in an email back and forth. Now when you're sending in bids to somebody like me who's putting bids together on behalf of our coaching students and adding my own bids, you want to make it simple for that person to understand what you're especially if you're making more than one bid. First and foremost, when you have your spreadsheet, delete off everything else that's on it besides the assets you're going to be making offers on. Okay? So make it very simple that that spreadsheet that you send only has the assets you want to. And what you want to do is not make it difficult for me to go find what you're bidding on it. Usually most spreadsheets, most tapes from banks, will have on the very first tab, column A will be a loan number. And there may be a servicing loan number. The first two columns may be loan numbers that are different. That's okay. The address will probably either is going to be close to the front there, it's going to be the back. What I want you to do, what you have to get in the habit of doing, is eliminating everything else on that spreadsheet except the rows that you want to bid on. And then what you want to do is insert, you know, a column with your bids and label the spreadsheet that you send your bid. So like, if Peter is sending in his bids, he's bidding on 20 assets. Well, there should only be 20 assets, 20 rows. The low number is going to be column two. The first loan first column should be what he's going to bid. For specific numbers, you may want to label it Peter's bids. That's one important thing to do is understand that if I'm putting multiple spreadsheets together, if you send me the spreadsheet with the same name as everybody else, it may be a little difficult to find. So you want to try to dumb it down. I hate to say this because I'm a pretty bright guy, but just not for me. So if you're sending into a hedge fund and they're taking offers, you want to make it as crystal clear that your offer. So like when I send it in, it would be like WCN or Scott Carson's bids, 278, NPN's 11, 25, 24 the date. Okay? And it's just going to be the 10 or 15 or 50 assets. Now here's the thing. If you're making an offer on like 50, 50 assets too, on a big tape, you may not want to delete everything. I've had sellers come back, say, oh, please leave the tape as it is. Because what they want to do is make it simple for them just to copy paste over your bids and not have to go hunt and pack. And. And they may be using your take as the master one that they have the assets in. So if you got 50 offers, just go ahead and that point, send them the whole tape, but your number, you're only on there. You know, if it's a smaller tape, you know, you make an offer 5 or 10, just leave those 5 or 10 bids with your column on There. And you may want to, you may want to eliminate some of these things where it's the loan number, you know, I mean, your bids, the loan numbers, and then maybe the address immediately. I know that in some cases the spreadsheet has a lot of information and the address is far to the right. You may want to move that over or copy, paste it over to it. What you do not want to do, and I have people that do this all the time, is they insert the spreadsheet, the whole spreadsheet, line all 40 columns into an email. Do not do that. Attach it. If you insert the whole spreadsheet, that one bid or two bids or 10 bits into the actual email, it's going to make it so small to read that I can't see things. And you want to make it easy for people, not difficult. Okay, but like I said, if you're only making one offer, put the loan number, the address, and the amount you're bidding. Keep it simple, make it easy to do that, and then send that into the person. Say, hey. And then what I always like to ask is, hey, can you confirm receipt? Please confirm receipt of these bids. Like somebody said, oh, I sent it in on Friday. I'm like, I didn't see anything on Friday. I got bogged down with things. Specifically. It's, it's important thing to do. So that's why I want to make sure and touch briefly on this. You don't usually need proof of funds to maintenance. Get me wrong sometimes. Sellers, if they're. If you're going to buy my note, I may ask for proof of funds if I'm bidding through to an asset manager. If you're brand new, I may ask for proof of funds, especially come back, make 50 offers. I mean, if I don't know you, I was like, well, do you have the proof of funds to make this happen? Are you buying for your own portfolio? Now? If I find out that you're like brokering deals, I'm not, You know, like, you get out, say, oh, hey, I got to take a 228 to bid on. Well, that's you brokering the tape. And that's not what I want. I want you bidding for your own assets, bidding for your own portfolio. Now I get posting a picture of a property, hey, I'm bidding on this offer, or I'm reviewing this tape with this offer here, trying to raise capital. That's a different story. What I don't want you to do is go blast and say, I'm accepting bids. Like, that's not going to fly. I'll give you an example. David, Polio from Essence Servicing gave me a phone call one day and hey, he was actually on a Saturday, Sunday. So I was very surprised because he never usually calls on the weekend. And what he had gotten is he found out that some guy had posted a tape and then said that it was on my website. I'm like, on my website, I'm like, I don't have. I don't let people post tapes on my website. So the guy who gave me the name, I was like, oh, when David told me the name, I was like, oh, no, no, that's not my website. That guy went into a Facebook group, the Note Nation Facebook group, and mentioned that, hey, I got 15 notes that I own that I'm selling. Well, this guy didn't actually own the notes. He was trying to broker a tape for Polio. And I said, well, this guy is not one of my students. He's just in the. In the Facebook group. It's not on my website. It's in the actual Facebook group. And Dave's like, oh, that makes sense. So I went in there and deleted off and then mentioned the guy said, don't post things in here if you don't have the right to it, because what. That's what's going to happen. I got a pretty well known name in the business. If somebody. If you drop my name, that person's probably going to call me. I'll give you another example. This is. I don't understand why this guy did this, but a couple years ago, this one guy wanted to make some offers and some stuff in Detroit. It wasn't through me. It was through somebody else he found. And the guy was. He's a realtor out in California. And the guy made offers, but he made them under my LLC name. I know he made another weclosenotes.com guy's not a part of my entity, never has been. Well, what happened? Well, when somebody gets an offering from an entity, they're going to make sure that you have the right to make offers on behalf of that entity. So what happened? I get an email from the hedge fund manager saying, hey, this guy made a bunch of offers under your LLC name on all these properties in, like, Detroit and Ohio. I was like, well, first of all, that guy is not a part of any of my LLCs. He's a previous student, not a coaching student, just previous attendee of a class. I said, I don't know if he's got anything or not. So I called the guy. And I, I said, hey man. He was like, hey. I go, what's going on with these bids? He goes, oh. He got real kind of quiet. And I said, you know, you just committed fraud because what are you talking about? So you submitted bids on behalf of an LLC you're not a part of. That's pure fraud. Okay? You should not do that. Because I go, why the hell did you use my LLC so well? I didn't have the credibility, so I wanted to use your credibility. It doesn't work that way. That's still fraud. You just now got a black eye by the hedge fund because they don't trust you because you're just not honest. You have an llc. Yeah. I said, why just use your own llc? Well, I'm experience. That's okay. If you don't have experience, tell them that, hey, I don't have as much experience, but I am interested in buying these notes from you. I said, you've got 24 hours to go and cancel those bids. I mean, actually you don't have 24 hours. You got like two hours to call the company and fix this, all right? And get it out of my name. Don't ever do that again. Or you know, some people, and unfortunately some people are just dumb, stupid. I mean, common sense is not common, unfortunately. Another thing that's important when bidding on tapes and assets is making sure you're dealing. Like I'll give you an example like that. 278. I do not own it. It's from a fund that we've bought from. They sent out to me. I make that disclosure, okay? And I. And I have a direct from a seller. The actual. They reached out to me and one of my coaches is like, oh, it's so and so. I'm like, yep, sure is. You know, if you're a one on one coaching student, you don't have to make an offer directly through me. You can go direct. Cause you're a one on one coaching student. Make the introduction for you. But what's happened is that some people made offers not through me on this one, but on a previous thing, some people made offers to a hedge fund. And if you're dealing with somebody who works for a hedge fund or a bank or lender, they're only going to be selling notes for that specific entity, okay. They are not going to be brokering deals on the down low or from somebody else. Okay? So a couple of years ago there's, there was a fund out of California. California, out of Florida. And the guy wrote a Book, actually a book on investment. A few years back we had him on the podcast before. We actually bought quite a few notes from him. A few years back, as we bought, we were buying a lot of stuff down in Florida and God's waiting on him. Well, lo and behold, about I get a phone call from a guy asking, hey, you know, I bought this note up in Garland, Texas. Do you have somebody up there that I could talk to maybe to drive by? I'm like, oh, yeah, yeah, I know this guy Wayne. Wayne has some rentals in Garland. He's also a note investor. He's also a one coach student. Give Wayne a phone call. So Steve calls Wayne and guess what? Steve's calling about a property on a note or note on a property that actually Wayne owns. And Wayne bought the note like three months earlier. Yeah, so Steve calls me all scared about it, and it's like, wait a second. I was like, no, no, no, hang on a second. Let's. Let's just call the fund directly. So we called the fund manager who owned the company, said, hey, what's going on here? So and so bought this from you, and now this other guy that works for you is that trying to pawn this deal off? Well, it turns out that the guy that was working for the guy that wrote the book, you know, the agent, I guess you could say the agent for the fund was trying to sell off a portfolio that he didn't own and was trying to commit fraud. He got about 12 investors to wire money on buying assets he didn't own. Okay, and the way he did it is he told all these investors, these note buyers, like, listen, hey, I know you're bid on these, but I got a portfolio that's off the books. I got a portfolio of my own that I'm looking to broker a trade. And a guy was able to collect about a million dollars in private capital. Well, the guy, you know, once people started calling, the guy, you know, took off, left his wife, left his kids, his wife divorced him. He went to, I don't know where, Puerto Rico, South Florida, something like that, but left and took off with the money. And the fund guy, the fund manager, he sat there, left like. So what he did is he made it up for by selling assets off his own tapes at a discount to him. But he could have faced some serious litigation if he hadn't tried to work with the, the investors who bought those notes. Fraud. So that's why check to see who. That's why getting the assignment of mortgage and double checking it and pulling Due diligence and making sure that you're buying from the seller. I don't have a pose if somebody's brokering, but tell me you're brokering it and then put me in direct touch with the seller. That's one of the most important things I can tell you is try to be as direct as possible. Now there are funds out of Wall street, there are funds out of Florida, New York, California that I buy directly from through a bank. But I've been buying from them for years of a trustworthy relationship with them. I know that I've signed fee agreements with them and I know that they're going to represent their company, not somebody else. That's the big thing. If you start dealing with somebody and they start telling you, oh, I got to tape off the books, you know that you still have to go through me. Be careful about that. And that's why it's always so important to look at your spreadsheets that you're getting in from people looking when the spreadsheets were created, who's the creator of them. By looking at the info on Excel, if you have an older version Excel update it, you see all sorts of information. If it's contract for deeds that you're looking at, you can actually go to the county records and see who the, the lender is or the, the owner of the contract for deed. Because at the county the deeds are, it gets updated, not an assignment of mortgage. So that's one thing to see, okay, who bought wit and who still owns it if it's somebody else. That's why you always double check to make sure the assignments are notarized and you've got a trail that matches up with the date on the assignments, you know, so it's been sold three times. You should have three assignments, three launches, and hopefully two out of the three are recorded or all three recorded and then you only got to record your new one. So that's the important thing when you're making, like I said, making an offer is pretty simple. It's not anything difficult. It's different on residential notes. If it's not a commercial note from a bank, they're going to want you to, you know, fill out a true letter of intent, which is like a two page offer, talking about what you're paying, what you need, due diligence, time frame, it's a little more professional. But on residential notes or dealing with hedge funds, usually if they send a spreadsheet, they just want you to send back their bids on that spreadsheet. Or a trim down version that spreadsheet and label your spreadsheet, name it your company or your bids and date it so it makes it very simple. Like I said. Recap. Do not insert 40 columns for one bid. Attach it, even if it's one asset, attach it, send an email, ask for confirmation receipt so that you know your bids are accepted or that your bids are received. And then going from there. If you get people asking for proof of funds or letter of intent before you ever make an offer run, those guys are choker brokers. Don't waste your time. But like the tape that we have, you know, I know we've had three or four people there submitting bids. A few people gave it extra couple days to because they're coaching students. And then so I'll be going through and consolidating those bids in one spreadsheet and sending it in to the hedge fund for them to review. And I've got to get those bids in by tomorrow to them. And then we'll find out after Thanksgiving what's accepted or countered and then we'll dive into the deep, the due diligence process going forth from there. Okay, Any questions, comments, concerns? Like I said, it's kind of a slower week for the most part, but it is, it is getting into a busier season as more funds and banks are looking probably to move stuff off their portfolio in the next four weeks because it's, it's. We're literally, if you look at it, we're 30 days from, we're one month out from Christmas right now as we record this. So there's less than like, there's literally like five weeks left in the year. All right, five weeks left in the year. If you haven't reached out to bankers and asset managers in a while, now would be the time to drop an email and have that email now go out this week. Don't send any email out this week to asset managers, but make sure it goes out Tuesday, Wednesday or Thursday of next week to asset managers and banks to get that ball rock and rolling. Hey, Peter, good to see you, buddy. I hope you have a very merry Thanksgiving down in Viva la Miami. As always, guys, we are. We will be running a Black Friday special for our upcoming boot camp on Valentine's Day, 14th through the 16th. That's February 14th through 16th. Normal price is 14.99. We'll be running a discount on Black Friday. If you're WCN crew member, take advantage of the discount that's in the base camp group for you. It's the cheapest it's going to be for that and that's good for you, plus the spouse or partner to come as well. So. All right guys, if there's no other questions, comments, concerns, once again, submit your spreadsheets, attach them, don't insert, clean up the spreadsheet, put your bids in the very first column someplace that people don't have to hunt and peck for them and make it simple as easy so other people understand your bids. You know, slice like a ninja cut, reset like cut like a razorbait, trim that tape up so that you're only sending over the bids that you are important. Unless you're submitting a huge tape, then you probably want to insert everything or filter the tape to just show your bids that makes and then let the seller know, hey, I filtered it by my bids. If you go into column A and unfiltered by my offers, you should be able to have the whole tape there for you. So anyway, I hope that works out well for you guys. Have a great, great holiday and we'll see you back in December when you guys come back. Thanks and take care everybody. Bye. 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 subscribe 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 $97 a month 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, if I can't make you or save you $97 a month, I'm doing something wrong. But save you paying nine 97 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 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 not stream. And we want seeds of the family. So let's get you signed up today. That's not umbrella.com welcome to the note family buddy and thank you for always.