Note Traders: Stop Being An Asshole to New Investors

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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.

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Good morning, good afternoon and good evening everybody. Hey, welcome to this episode of the Note Closure Show. As always, Scott Carson. Jack to be Today, today we're going to talk about note traders. Now here's the big thing and I might ruffle a few feathers, piss a few people off with this episode. So, so we're starting off on the right foot. Just want you to know that here's the thing, we get a lot of new people. There's a lot of people coming into the note industry day and out now. It's literally a smaller fraction than compared to fix and flippers or wholesalers or landlords or multifamily syndicators. Note investing is still a very small niche and work gets around if you don't treat people well. Now what am I talking about? I get people that call me. Their new students have gone through our three day workshop or they're part of our WCN membership or they're coaching brand new coaching students and we get tapes in, okay? They get tapes in, they make some offers on, they might miss something during the due diligence on the front end. Like they for they check the taxes and the taxes show one thing, but they didn't call to get a full amount and the tax might be. Or maybe they forgot the taxes altogether to check, okay? And you've got different traders out there that are selling assets, trying to sell assets. And here's the biggest thing that aggravates the hell out of me. There are some traders out there that just choose to be the biggest that they can be to new people. They get upset that they missed something during due diligence or something on the front end. They made 20 offers, ended up canceling 10 of them because the values didn't come back or the condition wasn't there or the due diligence or the collateral file, that's the first thing. If you make an offer and you start diving into due diligence and you, you're the note trader, you don't know anything about the tape except the spreadsheet that you got. You haven't done any of your own work. You can't be mad when people cancel bids because the condition the property is crap or the collateral files are all messed up and missing files. And there are some sellers out there that have shit, literally ugly ass crap. There's also traders out there who are selling their own stuff or trying to sell their own stuff through a broker and they're getting bids from a broker and the broker is passing them on the seller. And this is low, it may be low balance stuff, low value stuff. And these people are treating the potential buyers like ass and there's no Reason to look, I always laugh when you have somebody who's maybe closed on 100 notes or 200 notes or somebody who's selling their own portfolio. Now, you started off in the same position that new people started off with. They had to learn. And I guarantee you made plenty of mistakes when you first got started, when you made offers, okay? There's no reason to treat new students, new investors, new potential repeat buyers like ass. If you went to a restaurant, if you owned a restaurant and somebody came in there ordering for the first time and you treat them like ask because they asked for a substitution or they missed something on the menu and they sent it back because they're allergic or they're whatever, you would be out of business, okay? You would be written up on Yelp and nobody would go to your store because you're an okay. There's no reason to do that. You might have the best barbecue in Texas, but if you treat people like ass, they ain't gonna show up, okay? And that's the big thing. I hear this guy was an to me. This guy was rude to me because I started asking questions or the what I offered, I may offer too much and I need to fade my bid back because the values came in or I missed something. Look, you gotta have a little bit of grace for people that are brand new. We all start. And here's the thing, too. There are traders out there, they don't buy for their own portfolio. They're the worst. And that's the thing, I. If you're not buying for your own portfolio and you're just based off making your one point or three points of commission, look, you need to just shut the hell up. Because the people making offers, they're buying for their own investments, they're buying for their own portfolio. They're leveraging their hard earned funds or other people's money to invest in these deals. And they're going to miss some things, but you know what they're going to do? They're going to learn, okay? And as long as they're not being an asshole to you, Mr. Trader. Oh, Mr. Trader. Have a little respect for people starting off. Have a little bit of respect and empathy. They're learning as they go. They're not waiting to try to learn everything before they pull the trigger. They're literally learning on the job. And you have to respect those individuals because I guarantee there's a lot of people out there. If you've ever bought 100 notes, guess what? You started off and you're probably an idiot to Begin with you probably overbid. And I know plenty of stories of people who have treated people like ass who bought stuff they shouldn't have bought. They had the idea, this crazy idea, and I told them, no, that's not a good idea to do it. They went ahead and did it anyway. And then they ended up losing their lunch in those deals because they thought they know more. Don't be an to people, all right? I mean, this is a little public service announcement. And you know what? I've been blacklisted by a couple people. I don't care. Because here's the thing. If you're going to start blacklisting and removing people from your buyer's list, guess what? There are other sellers out there. You don't own a monopoly on notes for sale. You just don't. And if you're wanting to sell those assets off, you can't be wanting 80, 90 cents on the dollar for, or fertilizer or if somebody comes back and they're rushed to put an offering in because they get to take the day before they make a quick bid upfront due diligence based on your numbers and the numbers turn to be same and you get mad. Well, there's. You should have been able to check the taxes before. Well, you know what? If you're selling a portfolio of notes, why don't you go over there and check the taxes yourself and put that on the spreadsheet and save folks from making that mistake. It is just. I can't tell you how many phone calls I get from my own coaching students. Like, man, this guy was an ass or this girl was rude or this guy's just a complete pain in the ass. I'm like, there are a few out there. Here's the beautiful thing. Most people in the notice are pretty nice. They're pretty well understanding the fact that they started off just like you. They have to learn it. This is part of the reason we call our class Don't Buy Them for Dummies because it's a different model of buying, investing in real estate, buying the debt versus the real estate. You're going to make mistakes. Okay? You're totally going to make mistakes. That's okay. It's the beautiful thing about it is that you're going to make mistakes. You're going to learn from mistakes. You're not going to make that mistake before. But the beautiful thing about note investing is you're not putting up earnest money. You're not in high solid contracts. Okay? There's one guy, one of our coaching Students is getting ready to close on three notes. Okay? He got three bids accepted. He's got one guy funding two deals and another guy funding the third. And the seller, I'm not going to name any names on these. He was giving them. She goes, oh no, you can't. You know, it's gotta be the same person on the loan sale agreement. I'm like, well if that's the case, same entity and your investor wants to be co named on the assignment, you know, 50% interest to your LLC, 50% to their LLC. And the other guy is, you're just, is funding the deal with it and you need two contracts instead of just doing one contract with three notes, then ask him to write up two contracts, one contract for the two and have it say this is how we'd like it to be labeled. And the other one by itself, just leave that normal. But don't be rude. Don't go back to these people that are buying and just be an asshole to be an asshole. If you think and walk around that you know everything and you're high and minding your horse, guess what? You're gonna be holding that portfolio for a while and people will stop doing business from you. I mean we've seen it happen with servicing companies out there that their service drops or they become ass or their staff is difficult to deal with. They, they go out of business or they struggle because they realize they're difficult to deal with. Okay? People are going to make mistakes. Your deals that go good and go south. But the most important thing is be humble, empathize with people. Be excited that somebody is new and trying to buy their first note and that you have an opportunity to help them along the way. Because that one person may very well end up buying 10 notes or 30 notes or 40 notes or 50 notes or they may become a source for you to buy from as they're getting other tapes in. Treat people like you want you, you want to be treated. The golden rule is so important in entrepreneurship out here. And the worst thing you do is go, you know, drown that person's excitement and their vigor for taking steps down that entrepreneurial path. Because we're, none of us are perfect. We all put our pants on one leg at a time. We all wipe our ass with multiply toilet paper. None of our shits doesn't stink. Okay? And that's one of the important things. Don't be an no traders. Yes, I'm talking to you. If you know who you are, you're probably an all right. If you're not. You treat people you know, I'm not talking to you. There's plenty of great people out there, great traders out there that understand it when you're brand new. But if you, your first thing when somebody messes up and said, well, you should have caught that. It's public knowledge, then you're the issue. If you're upset that people make 20 offers and then cancel 10 because the shit you're shoveling doesn't look good. It looks good on Google, but it doesn't look good when you get in person or the collateral files, missing assignments or a messy file. Don't be mad at people for canceling bids. If you're going to beat people to death, you're the reason they're walking away and going somewhere else. Because we, here's the thing, guys and gals, there's a lot of people trading assets. There's a lot of notes still available out there. If you're an asshole trader, guess what? We don't need you. We'll go find products somewhere else. And I'll be the first one to show you students out there how to go find deals without having to deal with assholes and find better quality stuff and build relationships with traders who want to close stuff and build long term relationships. Now here's another thing. If you're a buyer and you are an asshole, there are people out there that are difficult to deal with. I've had to fire people before from working with them because I'm like, listen, you're just a pain in the ass to deal with. I've been there. Okay? You need to check yourself, okay? If you're constantly pointing the finger at other people, oh, they didn't do it or they didn't do their job or they don't, guess what, the buck should stop with you. When you're buying notes, the buck stops with you. Okay? Take that and say, listen, I need to learn more. I need to go on there. And you have to take some accountability too. I've seen people out there, they have a system or VA that's trying to do everything for them and they're not taking any accountability. Hey, that's on you. It's not on the servicing company. They did their job. It's on the attorney because they've done their job. Maybe it's on your staff or VA's that didn't do their job or you tried to streamline too much of it. I've been there, made those mistakes. You got to get step up, say my fault, make it this fixed and we'll move on, not make the same mistake going forward. So be nice to people. The golden rule. Treat people as you want to be treated. And you close a lot more deals, you raise a lot more capital, and you'll sell a lot more stuff if you're an asshole trader. So go out, take some action. Everybody. Hope you enjoyed this episode, and we'll.

See you at the top.

Bye, Sam.