Nuts and Bolts to Finding Distressed Notes with Scott Carson - MFIN

Alright, good afternoon everyone and welcome back to room two. We have again with us Scott Carson. He is the president and CEO of We Close Notes. As you can see right behind him there, he has been in the mortgage financing and banking industry since 2001 and an active real estate investor since 2002. He has been actively buying notes on residential and commercial properties since 2005. He also teaches other real estate investors how to invest in non performing notes. So welcome Scott.

Thanks man. Brent, I'm excited to be here. Honored to be here. Kudos everybody joining us. Gotta give a big shout out to you Dan, the whole staff over there for putting this on. You know, honored to see that this is the second time Dan has been doing it. Dan, you know, came to me about a year ago, was picking my brain on it and I'm excited to see what he's done with it. So kudos to Dan. We do a lot of online events. I think it's so easy because you can do this from the comfort of your own home, office, the bedroom if you want to, or even your smartphone, which is smart.

So I have it streaming on my phone so when you go off I can go get coffee and I can still make sure nothing's going wrong with the session. So it's great.

Exactly, exactly. So yeah, should dive in.

I'll give it to you, I'll jump off.

Awesome. Let me share my PowerPoint here with you guys. Like Brandon said. Yeah, we've been teaching note investing for quite a while. Active real estate investor. I cut my teeth initially. I was a real estate investor like I said back in 2002, went full time 2004, owned a mortgage company as well. Saw a lot of amazing things between 2004-2008. Of course when the music stopped like that, it changed for a lot of people. And so I started instead of going out and on the originating side on the mortgage business for investors, I kind of flipped the other side of the business. I flipped to where I started buying debt. I started instead of originating mortgages, I reached out to the mortgage companies that I was facilitating those or wholesalers to and started buying their debt. And I, the easiest time back then got into commercial notes primarily a lot of multifamily notes anywhere from your, you know, your sixplex all the way up to your 300 unit apartment complex. Bought a lot of stuff, over a half a billion dollars in debt in the last 10 years. And like I said, WeClosenotes.com, my company, I've got an amazing team, amazing students all across the country. And I want to deliver some really great nuggets to you guys this morning. Or if you're listening to this later on the replays, I got some stuff at the very end that I'm giving away. Want you to have some other opportunities. Well, for you too. But I'm a big believer in dropping knowledge here and giving you guys a lot of nuggets today. So you might want to grab a pen and paper, take some notes if you don't are not doing that already. Hey, trust me, we're gonna have a good time this next hour. Hopefully I'll make you laugh once or twice as well, too.

Okay.

So anyway, why are you guys all here? Well, we're all here, obviously. For what? Making money. Right? Let's do that again. Making money on a Saturday. You're, you know, Saturday in the summer. It's 94 degrees outside right now. It's the weekend before the Fourth of July week coming up. What are you doing? You're spending three days here with an amazing group of people. Two, three hundred people. I don't know how many danhands on here total, but you get a lot of knowledge. You're getting a lot of different aspects of it since I think Thursday through Sunday, you're here because you're committed. And first of all, kudos to you on that. But we're all here to add something. We're all here to gain a leg up on the competition. Let's face it, the multifamily investor space is pretty competitive. I think we can all agree it's getting pricier and pricier. And for you to really tap into and do some amazing things, you've got to kind of set yourself apart or go in a little bit different route of going out and finding deals than maybe the average Joe. And that's one of the things that I love about the nut space and buying bad debt is that it gives me a whole leg up. A whole way that 95.5percent or more real estate investors aren't diving into. They just don't spend their time. And it gives me access to some amazing deals 6 to 12 months ahead of the competition and at a lot cheaper price, too. So first of all, who am I? Real estate investors since 2002. No investors in 2007. Weclosenotes.com is my company. You can find so much great information there. I've been called the Love Connection, the Chuck Woolery of ugly paper by Mr. Business Daily in the Wall Street Journal, appeared in Inc. Magazine, worked over a billion Dollars in debt, featured in Inc. Magazine, all the big periodicals. I've been doing this for a while. Not one of these guys have been doing it for six or 12 months. I've been around down in the upcycle. We've been. I also have a little podcast called the Note Closure show podcast. I'm honored that I've had quite a few of the other speakers on my show or I've been featured on their show. So you're in a good group of great people out here for the most part. But encourage you. We're about to come up on our 500th episode this month, so pretty excited about that. 500 episodes of a lot of great knowledge. We interview a lot of people on there and we also provide, you know, specific episodes on nuggets out there. So I encourage you, if you love podcasts, go check that out. I think the other session is all about starting a podcast which is great but we, you know, we don't have podfate. We've been around for a while and do that. So this year to 2019 I'll end up closing on somewhere around 500 plus deals. 500 plus properties. Chunk of that is residential, a big chunk of that is different commercial projects, commercial pools that we're looking, I'm looking at a $44 million project right now that we're looking at picking up at roughly 50% of AS IS value because we're buying the debt at a substantial discount. So last time we did this, I was actually in the Atlantis in the Bahamas, January when Dan did this. And that's the beautiful thing that I love about the note business and we all talk about that as entrepreneurs, we want to live our life, we want to travel, we want to have a good time, we want to be sitting on the beach drinking Mai tais.

Right.

And you know, we all want to do that. I just got back from Europe, spending a month over there. The beautiful thing I'm going to be talking about the note business is you can do this from anywhere, whether it's here domestically, internationally. I've got quite a few clients from over in Israel, Australia, New Zealand, England, Spain actually that are buying debt here in United States. And they're not just buying single family homes, they're buying apartments because they're dealing directly with the banks, they're dealing directly with the asset managers. It's a whole different ball game out there. So what will we cover here? We'll talk about how to find non performing notes from the banks and hedge funds. Actually walk you through a Couple of the processes that we do to find these amazing deals. We'll talk about how we fund these deals with other people's money. We'll also talk about the flip notes, the other exit strategies that we have with distressed notes. Because that's the beautiful thing when you're buying the note, you become the bank. So you have to think a little bit different than your traditional real estate investor of oh, I buy that for the property. No, as the bank, we operate a little bit differently, but he who controls the equity controls the property. And so I love being in a position because a, if we buy a note on a property, a building, an apartment, whatever we come into and say the first thing we're doing is reaching out to the borrower, hey, let's figure this out what's going to happen. And especially in the commercial side, you're able to punch a few more buttons that you can't do in the residential side. We'll talk about how we like to focus on rehabbing the borrower versus rehabbing the property. And I'll show you a couple ways how to build a blueprint for success and some other opportunities for you. So my biggest thing in real estate is that when we're doing, we want to try to create a win win win solution not only for yourself, but for the banks and the borrowers or the property owners or the homeowners out there. That's our big focus. If it's not a win win win, it ends up being a lot harder process for the most part. Okay, so the question I always like to ask people on here, because we've got how many people on here have done deals, is to think about this. I want you to think about what does your biz look like now? When I go out and speak at different real estate clubs, conferences across the country, most of the time we find a lot of people that are like looking for the ugliest property, right? They got that lean on it, right? They're waiting for that window to kind of crash, you know what I mean? Everybody, you know, and they're trying to wave their magic wand and turn it from that into this, right? Woo. Flip this house, you know. Well, I want you to think a little bit differently as a bank. I don't approach it on the individual basis. I get all side up about my fix and flips. I actually hate fix and flips. Flips. It's not the most effective use of my time as a bank. Banks are not in the fix and flip business, they're in the mortgage business. They're in the loan business, they're in a leverage business, they're in the arbitrage business, taking in people's money and leveraging it out at a higher rate.

Okay?

So they can go out and make these loans and make 800% of their money. Not 7 and 8%, but 800% on their money. All right, So I want, here's what my part of my portfolio looks like. That's just half of the portfolio.

Okay.

I'm all across the country when I buy stuff, when I come in to buy stuff, yeah, I look at the individual assets some, but I'm also looking at a much bigger portfolio. I'm looking at a bigger footprint. I'm not looking for the individual tree, where's the forest? I'm buying.

All right?

And while we do buy one off assets, whether it's commercial residential, my biggest goal is I like to buy a bigger portfolio because I get a much bigger discount and have much bigger bang for my buck. Okay, here's another chunk of the portfolio we have. Okay, so that's the thing.

I'm.

We're buying, we're not talking the talk. I'm walking along 450 plus notes on our portfolio and that's constantly changing. Some are coming in, some are going out, some are modifying, some are getting reinstated, some we're doing short sales on, some we're taking over in operations. Some are foreclosing on. It's just a variety of assets. But I use this, my lead gen, my source is going direct the bank to buy the note and then become the bank and I buy it at a discount. We'll go from there. So I bought debt on a single multi family homes. This is a small apartment complex in San Diego in the beach. Big apartment complexes, okay? Up to 350 units. I bought self storage debt, I bought medical office debt, I bought long term care debt. I bought mobile home parks and mobile homes individually. But mobile home parks are much more profitable. Motels and hotels we've bought debt on and moved stuff like that for. There's a whole gamut of debt investing. I've even bought debt on a truck, okay, Bought some auto debt. What you don't have, what you have to realize, everybody that's watching this or listening to this is that you are in the note game. You're already in the note game. You're just on the wrong side of the payment stream. You're paying out most of the time versus taking in. And the bank's always gonna get paid one way or another. They're always gonna get paid. Okay, so let's talk about some of the basics of investing in notes. Cause a lot of people get confused on what exactly we're talking about with note investing. Well, as I said, we're all in the note game. When you purchase the debt, okay, we're only buying debt and secured properties, multi families, other things like I just listed off. You become the bank. So you have the rights of the bank. You have the right to foreclose, the right to reach out to the homeowners. You have the right to protect the asset security if you need to. You have a variety of exit strategies. You've got a lot of stuff that you can do, starting with trying to get the borrower to get back on time. And if you're buying at a discount because the borrower has not paid in a while, and we've bought from notes where they haven't paid anywhere from 90 days to six years, you have a lot of flexibility. And the more in default, the further behind the borrower is. It gives you a lot more flexibility being the note investor and to get a bigger discount from the bank. Now some people ask, well, why wouldn't the bank just foreclose? Look, banks are overwhelmed with stuff, residential and commercial stuff. And I lumping multifamily into the commercial side of the. Yes, it's a residential style loan, but it's a commercial loan. Pack a product. Okay, you gotta realize that banks are overwhelmed. They like the performing stuff, they don't want the non performing stuff. So people will drag stuff out. People do things and they set things at a priority level, their biggest assets and work their way down. Okay, Commercial default rates are close to residential. I mean it's pretty similar. It's usually a little bit higher. Taking up, since we looked at some stuff. So if you look at here, here's your commercial default rates.

Okay.

Let'S see here. What was this? Yeah, this is basically. I've not pulled the most recent, but you can see here, I'm gonna show this to you. See, commercial default rates started were at the highest back in 2010, which is, that's no surprise. Right to the point where they're at basically Q3 of last year, 3.05%.

Okay.

Pretty close to the residential default rates. Right? So the thing you gotta keep in mind, I want you to think about this. I actually would find it humorous if you all say this where you're at. You no pay, you no stay. Let's say that again, you no pay, you no stay. All right, You Guys are in the multifamily space used to evictions and things like that. The beautiful thing that's in the note space, that's what you gotta keep in mind. Hey, I can work with it. But if you're not gonna pay, you're not gonna keep operating this property, all right? You're not gonna keep being on charges. We're gonna buy the note, become the bank and a. If you don't pay, don't work out some sort of payment arrangements with us. We'll take the property back, we'll take over payments and go from there. Okay, so want to give you some scenarios of some of these assets we bought. This is the three Pacific beach condos in San Diego. Like I said, right on the beach of Mission Bay. We bought the note from the bank of Arizona. These were all million, million and a half condos. On these three, we were able to buy the note at 65% of unpaid balance. Now the listing price was 1 million 1.2, 1.5. That was the listing prices value. You could have sold this, but unfortunately it was dragging out. So the developer has developed all of like Mission beach all over the place. You see this similar type of style all across the beach down there in San Diego. They were getting behind. They could not sell these things because they were just dragging us. We were able to buy these at a substantial discount.

Okay.

First thing we did is we got the lead for the deal. We had a realtor bring, hey, we got these three condos in San Diego. We met with the developer, the builder, the borrower went in and told us what they want to sell them at. Okay. So we put an option on him, found out that he was in default on these. We reached out to the bank, was able to negotiate us buying the notice of substantial discount, and then came to the boss, listen, we'll let you walk scot free away from these things because I know you want to move on and go do something. Just sign the properties over to us and you can walk away. Sure enough, he was like, oh my God, thank you. But we were able to sell these at a nice profit above 65% of value of the unpaid balance, which is well below what the value of the property was. So we ended up picking these up closer to 55% of value, bought the debt, 65% of UPV, but 55% of value. And then we made a nice chicken change on the deal by then selling it as a sale. That form, it basically offered a deed and Lou took the property back and then sold it off. This is a 50 union apartment complex in Arlington. We bought the note on this property, the Silver Bell Apartments. We bought this one at what would we buy? We bought at 68% of UPB which was roughly right around 60% of value. It was fully operating, just had bad management in place. We were able to negotiate with the borrower on this one, take the property back as well, regentrify it, got it up and running properly and then sold it for a nice chunk of change. We see a lot of small units, small apartment deals right now. 20 units or less. This is an eight unit in San Diego. Borrowed 600 on this one and a first and a second. This was capital. One value on this one was like 700,000 when we first bought. Probably we're closer to a million bucks now, but we're able to buy this at $0.50 of UPB. The bank was just ready to get off their books. So he bought it. Yeah, at like 325. And I actually flipped this to another investor for a quick $50,000 in profit on a wholesale deal. We bought the note and then they funded the deal and we just transferred the documents at closing to their entity and it was a win win for us to keep that one. This is a 16 unit apartment complex in Dallas. We bought the note at 65% of value. It was fully encumbered. I mean they didn't have any equity or anything like that. So we still got a good deal. It was fully occupied. But once again we were able to come in at a cheap enough price and it was a double plus. It was a nice 20 plus unit cap rate to us once we were able to take the property back. The cash flow and stuff like that. So great, great deal. Great thing about this one. This was the borrower, this was trying to sell the property and you've seen 16 units. Okay, great. Selling it, trying to sell it on LoopNet. A realtor trying to help out that I'm a big believer. LoopNet is where commercial deals go to die. But with what we do is we'll look at LoopNet, look for short sales or look for distressed sales. So it's been on there for a while. And then we'll reach out to title companies or the realtors to find who the bank is and then we contact the bank and get even steeper discount and turn it into deal. So it's one of our favorite strategies of doing it. When you've closed enough deals with these different banks and hedge funds, your phone starts to ring and this is a Deal. You know, I got a phone call one day from an asset manager at a bank. I'll say who, but he's like, hey, you've closed some deals with a friend of mine. He told me to give you a phone call on this one deal. I'm like, okay, what is it? It's, you know, not a big place. It's a small apartment complex in West Palm Beach, Florida, right across from racetrack. Six units. The borrower owed 490. When we saw the property, we thought it was valued about 240. Now, they had listed for a short sale at 300. We were able to negotiate down. It was actually over 90 days of negotiation back and forth. We offered 175 to begin with. They didn't want to take it.

Okay.

We followed back up, 30 days later, offered still 175. They didn't want to take it. They wanted 240. Eventually we got to the end of the year and they're like, okay. I reached back, I said, I can close it for the end of the year. Get it off your books. They're like, okay, take it. So the beautiful thing, we bought this thing for 175. We took it over in receivership because the borrower filed bankruptcy and we were able to take over receivers. We start collecting rents on the thing for eight months and continue the foreclosure process so that we sold it eight months later at auction for a $310,000 price point. So, yeah, we made 135 plus eight months of rents in it because it was fully occupied when we bought it. The win win for us on that one. Great returns. That's one of the things I love about the note business. We're not doing anything to find a single cap rate. Rarely do anything under 20% cash and cash return to us just because the fact is that we want to make sure we're getting the discounts and flexibility on that. So let's talk about finding note deals. Where do we find these deals? Well, you're not going to do it by sending out letters, postcards, or posting the signs and intersections. I kind of chuckle when I see that because that's the old way of marketing. That's the old way of doing business. It's the 21st century, everybody. You gotta have an idea. You gotta learn how to get this stuff done. You've got to kind of run screaming from the old way of doing business into doing the new way of business. Because it's all about relationships, but it's also about marketing. Okay, so where do we find these deals? Let's talk about how we find these deals. We find these deals obviously from banks directly, different hedge funds, servicing companies. We find quite a few amazing deals for servicing companies, not only residential, but also commercial deals. We find these on auction websites, auction.com, dedX, First Finance, First Banks Financial. We find some deals out there that are trying to sell traditionally, and since we contact the bank, we give them a better price. Mortgage bankers, we actually track down those that are originating loans on apartments and say, hey, what do you have on your books? You've originated, that you're looking to get rid of what's been. Anything that's been bad. Is anybody robbing from Peter to pay Paul? Anybody trying to use their, their apartment as an ATM and not pay it?

Okay.

We also find a lot of stuff from private sellers. People have lent on apartment complexes, okay. Lent on other properties that they're willing. They want to get something back and willing to take a loss and go from there. So we're dealing direct to the source. We're not going through brokers for the most part. We're dealing direct with a source, which gives us a lot of flexibility on things. So if you think about this, everybody talks about they're gonna be a downturn now, it's gonna be all over again. Are we gonna see what we had happen over a decade ago happen again? We're gonna see some of it because these days, they've reinvented subprime mortgages. They now call it non prime. They got really original on that. Okay, there's 100% financing back and with. They're giving literally this to borrowers with FICOs of 500 or less or less. I've seen the programs. There is 100% financing on low FICOs all across the country. They're giving loans on people with one day out of foreclosures, bankruptcy, short sales. There's record default rates in auto, student loan debts, credit card debts. There's a lot of waves coming when it comes to, are we gonna see a lot of the downfall again? So the question I like to ask everybody finding these deals, if you knew what you know today, would you, would you go back? What would you do? If you could go back 10 years, what would you go back to? 2009 and what would you buy? Well, for me, I'd buy a whole lot more debt than what I bought back then. I bought quite a bit, but I'd be like, I'd be like double fisting it. Just boom, boom, boom, boom. Buying as much as I could. And I'd be making those relationships.

Okay?

So that's the important thing to keep about. If we see. Because the future is just a history repeating itself. Let's face that, okay, 2008 is going to happen again. Maybe not as extreme, but we're already starting to see a recession. We're already starting to see properties, especially in some of the higher markets like Miami and Dallas, Houston, California, Vegas, where we see a lot of short sales. I'm already seeing an uptick in commercial defaults over what the number is. What's funny is my phone is ringing, my emails, I'm getting hammered with bankers emailing me with people coming in and saying, hey, Scott, are you buying? What are you buying? Okay, I've got some new stuff. I've got some new stuff. I've got some new stuff. And I'm starting to see stuff interesting that I hadn't seen a year ago. And so it's an increase in stuff coming across the board. You just got to know what you're looking at because it's a little bit different ball game when you're buying the debt, especially on an apartment complex, versus what a lot of you are used to. So who am I looking for when I'm looking at a bank or I'm trying to reach out to bank, who's the person that I'm looking for? That's what you need to know. Who's the man or the woman in charge of the bank that handles the sale of their debts? Well, they go by specific job titles, they go by specific names in the banks and basically three main names that you want to look for. And I'll show you how we track these down. Literally, get off my PowerPoint and show you how we go do this. Okay, so you want to look for special asset managers. Now, most banks will have a special asset manager over in charge of residential and commercial.

Okay.

If you do this search on LinkedIn, it's like 273,000 connections potentially on LinkedIn.

All right.

They also go by special assets commercial. If I used to do a search for that, they'll show you roughly 28,000 connections. The number is a little bit reduced, it's one tenth of it, but that's pretty normal. Okay, Special assets commercial, do a search for that.

Okay.

Secondary marketing managers is another title they go by because it's the secondary marketing side of the bank. One million plus connections potential out there. Like 1 million, 24,000, something like that. When I did the search to update the search a Few minutes ago. Okay, then you also are chief credit officers, chief credit risk desk. There's 124,000 connections on LinkedIn. They have their time. Those titles right there, if we reach out to people are phenomenal. You will find stuff there. You can do that from anywhere, from your smartphone, from your laptop. Do it while you're sitting there. This is one thing that we still do this day as we're searching. I mean, I've got over 8,000 databases of over 8,000 asset managers, special asset managers, secondary marketing. They don't always have something every month, but an email blast out to those people results in something each month. Not every institution is going to have something every month or every quarter. But when you put enough people together and you drop an email and you just follow up, boom. Or you use LinkedIn to leverage, build your database. It's a phenomenal thing. Okay, so we've bought debt, commercial debt, from a lot of people. Capital One, Wells Fargo bought a 75 unit apartment complex from Wells Fargo Multifamily down Laredo. Got that at 65 cents on the dollar as of sorry, UPB, but it was at 56% of the fair market value US bank. I bought a lot of stuff from a lot of people.

Okay?

So don't let anybody ever tell you that you can't buy debt directly from a bank. You can do it on a daily. It's been happening for decades.

Okay?

All that the bankers care is that you can close.

Okay.

All that they care about is the fact that you can actually pull the trigger and a wire shows up and then you're not an embarrassment. Okay, so let's talk some more specific multifamily sources here. We've talked about this stuff. Here's a couple things that we use. Banks. If you want to go directly to banks, you can use a service called distresspro.com buddy of mine, Brett Paloma, developed that great search tool. What it does is it looks at the banks, the FDIC chartered banks and their quarterly reports and reviews their default rates. And it gives you a ratio and it starts to give you highlighting things. Anything that's getting above an 8% ratio, they're looking to sell. Also it tracks the reserves that a bank is starting to put away. Because if a bank is going to sell the debt, they've got to offset that with reserves. So when you start seeing a bank put away reserves, it usually means a, they're working up to get to a point where they can sell off that debt this quarter, this year, things like that. Now what's great right now. Between now and the end of the year, guys, you can make a lot of connections and be ready to rock and roll the fourth quarter when most of the banks start looking to really sell a lot of their stuff off, especially commercial side of stuff. When you start looking at the beginning of October, November, that's the time to be doing a ton of stuff. Don't get me wrong, we're buying notes every month. A lot of people are just on vacation right now. Okay, laneguide.com, we'll dive in. Is a easy $165 a year. I believe. It's an online thing. I can type in banks. I can pull up all sorts of stuff. Contact information for the asset managers.

Okay.

Been around since it's been around over 40 years. FDIC.gov is a great source to dive into if you want to look at the quarterly report yourselves. It just is a lot of information. You can go down a rabbit hole with that. But if you're looking specifically, that's a great one, too. I've talked about portfolio lenders, people that are making loans. You see a lot of this on the multifamily side. A lot of specific multifamily lenders that are keeping the loans on their books. They're a portfolio lender. Those are great places to go. Scotsman Guide is another one that's a free report or free website to go to the commercial side. I'm going to dive into a couple of these here so you can see exactly what we're talking about. Lane Guide also will help you find portfolio lenders as well. So you're looking at the wave coming. It's coming. It's already building. Many of you probably already recognize some of the signs from there. So what I want to do, let me dive into this here a little bit. I'm actually going to show you how we dive into this stuff here. So let me do new share here. Pull up my screen Here. So LinkedIn, here we are. I'm on LinkedIn. Whoo. I love this.

Okay.

16,000 plus connections. So like I said, easy thing to do. Let's just type in Special Asset Manager.

Okay.

Just do search, see what it pops up here. Give it a second. Now that just pulls up that I want to look at people. 369,000 special asset manager. Let's probably change it. Let's try to see if it changes. We make it plural. About the same. So you see Real Estate Development Ascending Capital, Special Manager, Capital One, Victoria Brown. Yay.

Okay.

The beautiful thing is this is. I have the free version of LinkedIn. You can upgrade to the expensive version. But what I love to do. Let's just do this here real fast.

Okay.

I'm just gonna click on here and hit connect. I don't know. Hi, Victoria. I wanted to reach out to see if you were the correct person. So that's what he said. Hi, Victoria. Wanted to reach out, see if you were the correct person to talk to about buying your firm's distressed notes residential commercial. I'd love to visit with you, see what you might have with any hair on it. And then I'll just put my email address down. Now, thing that happened, obviously, maybe some of you may know this, but you used to be able to export your connections from LinkedIn for free. You do it all the time. Well, in Thanksgiving of last year, they stopped that. There's a service called Lead Fuse that I use, though, that still allows me to go in and pull people's emails that they've got on their profile and easy search engine. So that's a pretty cool service that I use with that. Yeah. If you got questions, post them there. We'll get to them at the very end, guys. But this is one of the things that I'm doing. We're doing my staff. You can hire VA to do this, go through this and rock out. Literally finding tons of people right there. That's specialized bench. Let's type in secondary marketing people.

Boom, Boom, boom.

Okay, 1.4 million. Remember I said just over a million? It's gone up some.

Okay.

Secondary marketing. Open mortgage, American Mortgage Bank, Southwest Funding.

Okay.

Amplify Credit Union usaa. Okay, let's type in secondary marketing. We'll just type in commercial. That number is going to shrink down quite a bit. Yeah, so it's about a fifth of that. Senior secondary marketing. Secondary marketing at the Corporate cooperative Bank.

Okay.

Capital markets anytime. You see, that's a good sign. Secondary marketing, Residential, commercial, multifamily. Right there, buddy. Zachary Everett. Okay, same thing. This is a easy way to reach out. And it's free. Everybody free. Free. All right. If you don't get anything out of this presentation, I hope you get this. All right. Now you just got to go out and use this. But this is the beautiful thing about LinkedIn secondary marketing. Special assets, Secondary marketing, Commercial chief credit risk officer. LinkedIn will help you find us. And that's just a matter of copy paste. Copy paste, copy paste. All right. But what you have to do is make sure your LinkedIn profile shows some sort of real estate experience. I know all of you are active investors. Hopefully you're all active. Make sure that your profile is complete because that's the first place they're gonna go to. But you know what the great thing is? You can see who's looked at your profile. So if they've clicked with you. I like going over here and seeing who's clicked on your profile.

Okay.

That's the people thing. You click on my network here. Come on. Yep. It's a great thing people have worked with. It'll give you more suggestions of connecting with people. But you can see who's stalking you.

Okay.

Hey, Mo. Alan. Okay, you see who's stalking you and go from there. So that's the beautiful thing. LinkedIn. Everybody should be using it.

Okay.

Now, another source that I talked about that I really love is Languide. Now, Languide's probably the easiest thing for you to pull a big list of stuff on a basis and be able to reach out to it. So. Lane guy. Pretty inexpensive. I don't get paid to promote it. It's just something we use on a regular basis. No, you can't have my login. But immediately. What's great is if you're looking for. If you see a property is financed, this particular bank, you just got to go straight up here. And let's just say. Say you see an apartment complex is financed by bank of the West. Let's just type in bank of the West.

Okay.

Search. It's gonna pop up too. What we wanna do is look at the major one. So bank of the West, California, as we're talking about.

Okay.

So let's click on this one. Bank of the west. And you start seeing numbers. You start seeing stuff on here that's helpful. The Art Real Estate Loan Service Center. The Consumer Loan. Special Assets Department. We'll get that. Second. Sorry, 1Z second. Trust deeds. Direct loan production. RV financing. Loss mitigation. Corporate Headquarters. Commercial. Special Assets Department.

Okay.

Collections. Revolving credit lines. Direct Servicing, Administrative Office. Now, not every bank is going to have all these departments showing up there. It may just be the corporate office. But what you find here is two very valuable things. Special Assets Departments. If you click on this one here, this should be a Martha Torres. And boom. Lo and behold, you've got a direct phone number and an email address for a lady, which was always the case when it shows Special Assets Department. Usually you're gonna find a name and a number in there. Now, they don't list the Special Assets Department. Then you go back to the main administrative office or the corporate Headquarters. Call that switchboard, call that phone and ask to speak to somebody in special assets. Now, that's Martha Torres. It's probably go down here. Go back and look at the commercial special assets. It's probably Dana White. Yep, Dana White at Bank of the West. Dealt with her before. Dealt with both those ladies before on their residential. Now you've got a direct phone number and a direct email for a person in charge. Boom shakalaka. You're welcome. All right, thank you. Thank you very much. Okay, now, I'm joking with you guys in a way because this stuff is literally minutes away from you. And what happens is we get so bogged down a lot of times in doing the old way of doing things. Well, this stuff is right here. Why spend all your time chasing other things when it's literally right here at your fingertips? And that's the thing. Linguist. $165 a year. That's great.

Okay.

Type in a bank, find some stuff out. But lenguide even makes it a little bit easier for you, which is kind of nice. So if we go back to the home screen here on lenguide, it's got all these different search toolboxes on the left hand side. Now the thing, when you're dealing with a note space, when you're calling a banker, don't say you want to buy their reos and notes. They'll just send you to the REO department, which is a phone number. It's a voicemail box where it says, hey, please call the listing agent. So don't say reos in the notes space. Reos are a four letter word.

Okay?

It's not worth it. It's a waste of time. Notes. I'm buying to buy your notes. I want to buy your notes. That's what you look for. But lane guide lumps reos and notes or special asset managers on both sides into this one box. It's okay, because this is where the magic happens here. Okay, here's where the magic. So you pick reo, property type. Well, we don't residential. Let's talk commercial. Let's pick a state. Let's pick. Actually, let's pick South Carolina. Say it's Dan's home state. Okay, South Carolina and statewide primary department is what you're going to change. Not Aria and asset manager. You're going to go down to our favorite thing. Drumroll, please. Special assets manager, company type. I say all types. Now, I wouldn't waste my time calling credit unions. Most of them are going to do it. Government agencies, sometimes loan servicers. And finance companies. But what the hell, I just say all types. And you can filter through this stuff. So hit search. Now the beautiful thing. Ta da. Come on. Here you go. Look at this. South Carolina. It's giving you a list of lenders that are lending in that state. In the categories you have the bank name. You've got a name over here. Sometimes you'll have an email, but then you have a direct phone number. Okay, Ameris Bank, Skip Mullen and Ameris bank and Skip dot Mullen and amerisbank.com. look at that. Isn't that beautiful? I get this is stuff that gets my jollies off because I get excited. But yes, it gives you bank of America Chase some of those banking. You're not gonna deal with the big guys. But look up bank of the west. You've got Martha and Dana in there. Okay, Capital Bank. All right, Cathay Bank, Kian Liu dealt with them before Dana Watkins at CBC National Bank, Bossa. From there, Palmetto Bank. We scroll down here. I bet they're down here. Oh, not sure anymore. But you know, regions back, I bought a lot from regions over the year. South State Bank, SunTrust Bank, Synovus bank, bought a lot from Synovus Residential Commercial don'ts. They're great place to do stuff. They sell stuff on a quarterly basis. But this is just doing it for one state. Now you have a lot of crossover if you're looking at multiple states. But this is a list that you can't really download, but you can copy paste it in. And then I would have a VA go through and scrub it basically for their information. And then what I want to do is uphold name, email, phone number, banking institution and send an email out. This list is probably 400 names long. Maybe not that long, but 300. But if you're doing this for your top states that you like in and the top markets, you'll add a nice 700, 800 name list that you can market to. Well worth 165 bucks to be able to access this. So this is what I love about link guide. It's phenomenal. You can also go back here as well. Let's go back to home thing. The third thing in lane guide is just doing the search. Okay, let's go back here and do a lending type search. Okay, lending type search. Pick the state. Let's say South Carolina again. Lending type. Well, since we're lenders known to lend in the state or lenders with offices if you want to go knock on them, but lend in the state. What are we looking for? Well, we're looking for what commercial real estate. Right. And then we'll do apartments or multifamily.

Okay.

And I'll do either retail or wholesale. I'll do either. And you do the regulated entities or portfolio. So do regulated entities. Okay, let's search be a big list. So this is going to give you a list like this where you can dial for dollars. This is a bigger list. I would hire a VA or an assistant, go through that to pull information. UnTrust Bank, Atlanta, Georgia. Let's take a look what they got here for us. Special assets. That's good. SBA, SunTrust Mortgage Inc. Their REO agent, their main office. He's a smaller list. But their special asset list, which is great, boom. You have a direct number. No email, no contact name. But that's okay. I would take SunTrust Bank Special Assets and go over into LinkedIn and search on LinkedIn to find a potential contact name there. Okay, great way to use leverage the two to really find the right person that you need to talk to.

Okay.

And one other thing, let's go back here, do another search again and just do it for regulate for portfolio lenders.

Okay.

Oh, where is it here? Multi unit apartment. You can see you've got a whole different things on there as well.

Okay.

Either or. And then we'll do it to independent lenders. This will be a little bit smaller by not much. Jose from Carolina bank and trust company. Yeah. See something like this, you just got one main bank number. Now the thing is they have 16 branch offices in one state. So they're a decent sized bank. Now I would not waste my time calling the one off bank. The one off banks, they're just gonna be too conservative in their lending. Now the nice thing, especially when you're buying the paper, here's something that most of you may not know is that if you are getting a higher loan balance on an asset that's got a half million value or greater or they has a half million dollar balance or greater with the institution that's non performing. If you're taking, you'll be buying the asset, buying the note and working through a deed louis or a foreclosure or it's a receivership, you're taking it over that way. Oftentimes the new bank, not the new bank, the existing bank may consider financing that property to you. They may take the non performing side and move it to the performing side. It's all about your team. You don't have to have a lot of Experience. For that to happen, you say you need to have a good operations, good management team with you. You could be the weakest link as far as management. But if you've got experience in your team and you've probably all heard this from Dan and other people teach it before, this is a beautiful way that you don't have to go out and raise capital. A lot of times you can get some great financing in place and the bank is happy to do this a lot of times too because it moves it from a bad debt to good debt if they're willing, if you can come in. And it's, it's, it's a longer process than buying a one off note and closing in seven to 10 days. Buying a note on commercial property, apartment complex, whatever, can be a 30 to 90 day process of enclosing and going through things. You guys all know that.

So.

David asked a question. How often does Lane guide up their date stuff? Honestly, I don't know that. David, I'm not going to lie and tell you that all of the emails are going to work properly for you because there's movement, people changing locations. They're not going to be as fast as jumping on LinkedIn. That's why I like to use it if it's even good half the time, which is better than that. It's worth using there for you because anything, those numbers are going to be roughly the same thing for the most part. And what I do is I send an email out. Here's a little trick. If I send an email and it comes back that so and so is no longer with the company, that works in my favor because then I'll call the corporate office, say, hey, I'm trying to track down David Shentu. I believe he, David was, I used to deal with David and Special Assets, but I guess he's moved on. Who's it who's in his position or her position now?

Okay.

So it gives me. Even if the email is wrong, it still gives me even works in my favor. Better. Say I used to work with David or I used to work with Davina or whoever the person's name is. You get what I'm saying? That gives me a warm lead in.

Okay.

Like when I was sending that message to victoriacapital1 on LinkedIn, right. I used to work with an Amy over there.

Okay.

She reaches out to me, responds back and say, hey, I used to deal with Amy in Special Assets over there. Bought a lot of stuff from you guys. Yeah. And anytime you can drop a, you know, a warm Name or an asset. Great. Now here's another thing. If you have an asset that you're working on, all right, and you know it's in the fall, so you're looking at that, I use that address and you find out, say we'll just do the same thing. Found out that you're dealing like a 100 unit apartment complex and capital one is the borrower on it. I mean not the borrower, the lender on it. Well, I would reach out to the asset manager and I would actually include the address or the loan name if I can find out who the borrower is, which is pretty easy with county records and a good title search. Hey, I'm trying to track down, I'm interested in buying this specific asset, interested in buying this specific note. Now this works a lot better on the commercial side than it does in the residential side. It's harder to track down buying a one off note on a residential property because they're often pulled together. But in commercial notes, multifamily notes, it's easier. Thing uses a warm lead in to get on their list. So a couple things that I little tips that I would use with that. But Languide, I would probably say, realistically, probably 70% of the emails are active or good at any given time. It just depends on. I mean, Richard Lane is out of Vegas now, used to be in Dallas. He used to be pretty good at updating some of the stuff, but it's, you know, ebbs and flows. We use it, we scrub our list. We're constantly updating our list by using lane guide and LinkedIn. Okay, was this helpful? Was that helpful for you guys? Kind of showing you a couple sources there. Hopefully you enjoyed that. Another source that I like using, Whoops, hang on, here is. I talked about this earlier. Scotsman Guide. Scotsman with one T. No, it's not named after me. This is a guide. If you're a mortgage broker, you've probably seen Scotsman Guide. He used to come into the offices. It was like huge. Basically like ESPN the Magazine, big, big magazine. It basically told you who was lending on what. When you needed to find a lender for a church or beer barn or something creative or residential stuff, you could log in to Scotsman Guide and track down who was lending on it, who's performing that stuff.

Okay.

How do you search for owner of the property and the lender? You just go to the county records. Okay, county records, type in the address, it'll pop up who the listed owner is. Then if you go over to the county clerk side and search by that address. It'll often tell you the most recently filed deeds. That's how you do it, Stan Sloth.

Okay.

Call your title rep. Hey, can you tell me who the owner is of the most recent lender on the property? It's all filed with the county records. Easy to do, you can use Netra online to do that. But anyway, Scott's been guide here now. They got smart, they went online. They went from being charging to giving away for free.

Okay.

And this got some great, has some great stuff that you guys are gonna like. So try to, you'll love this. Just kind of chill.

Okay.

So if you're liking commercial, which we are all greedy capitalistic commercial investors, right? Here's what you go to the commercial side, not the residential side for family, for multifamily, you go to commercial side, okay. And do a lender search. Look at that. Commercial or multifamily. So we just click on the multifamily side. And the idea, this is helping you find originators. But what happens with originators? They often end up keeping some of their stuff. So let's do this. So I'm looking for lenders, let's say that are gonna lend and say South Carolina is my favorite. Let's just say it's one of my states. Okay, South Carolina loan amount. I'll say it's at least a million dollar loan. What type of property am I trying to get financed? Well, let's say apartments.

Okay.

Put whatever you want in there.

Okay.

And I just hit search and I put an LTV and now it gives me 31 matches of portfolio lenders.

Okay.

I will finance stuff. Now this is a really good thing cause many of you guys I know are leveraging using other people's money initially. Get it rejectified and go back and cash out and refinance. This is a great way to try to find people that will help you on the refinance side. Because you can see that these like 5 Arch Funding Corp. Purchase rate and term cash out, refi, 13, 14, 15, 16th or they'll even do a bridge loan.

Okay.

But the beautiful thing is you see minimum 500,000 max 10 million. What's 5? Condos, buildings, complexes, they'll do a whole lot. You see these direct sell, these are all portfolio lenders. They're not your traditional banks, they're portfolio lenders. And by portfolio lenders are usually retaining the loan in their books. So how do I find non performing loans? I go to the originators, I go to the people that Are holding them on their books. And this gives me a direct email. Not really the email, but a direct phone number to reach out to RCN Capital and say, hey, what do you have on your books in the states outside of these? Okay, that's the thing. It says nationwide. Accepts specific states. Nationwide accept states or specific states.

Okay.

Cherrywood Mortgage, Silver Arch bought from them. Fidelity Bancorp bought from them. Silver Hill Funding bought from them for years.

Okay.

These are Apex Mortgage. We bought debt from them. You got 31. And this number's growing all the time of potential sources. Gotta reach out and see what they have in the books. They're not gonna have just one deal. They may have a portfolio that you can cherry pick from. Okay, question. You're welcome. Richard Hall. You're totally welcome. Boom. Good stuff, Scott. Great resource. Appreciate it for you, Sharon. You know, guys, I'm a big advocate that. Look, I love speaking, but I hate sitting through stuff where I'm gonna just see talk. Wah, wah, wah. I don't want to talk theory. I could sit here and talk theory with you all day. I would rather give you some actual nuggets you can actually put to work.

Okay?

Actual things that will benefit your business today. Where you can find. Because this all comes about finding the deals. You got some great people on here. You had Julian Sadati talking about raising capital yesterday. One of my favorite people in the world. So many great friends on here that are doing amazing things. But it all starts with finding deals. And let's face it, multifamily is one of the most competitive markets out there. All right? I get phone calls every day from people. Do you have any notes on any multifamily? I laugh like if I did, I'm not gonna be sending them to you, alright? I'm gonna do all the work and just give you the lead. So. No, it's not gonna happen, okay? I buy. I'm an investor. I'm an active investor in this stuff for myself, okay? The raising the capital side is the easy side. It's all about finding the deals. And that's why I'm trying to share with you guys these basic 3, 4, 5 ways of finding assets where others aren't looking. You know, I've talked to a lot of apartment investors. When I bring these up, they're always like, oh my God, I never knew this. It's just, I've been doing this a while, okay? There are still plenty of deals to go around. Plenty of deals to go around. And I'm a big believer in a term called Co opetition. All right, coopetition. We're all competitive, but in the notes space we're all very cooperative because we're working together. If I get a big portfolio of 40 apartments, great. I'm gonna reach out to the people that I'm maybe I'm friends with or students of mine or people in my network. Hey, let's take these down and get a bigger discount because we're buying in bulk. Instead of going to Walmart and buying a one off, I'm gonna go to Sam's and buy in bulk and get even bigger and steeper discount because I'm direct to the source. Okay, I'm gonna cut out in the middle now as best I can. But anyway, Scotsman Guide, this is a great resource. What do I do? I'm gonna pick up the phone and call this number, say, hey, who's in charge of your secondary marketing? In charge of special assets or business development? Okay, 31 sources, 31 flavors of apartments. Ice cream for you guys today on the summer thing. So Scotsman Guide. Let's talk about Scotsman Guide. Great resource. Another thing on here that's really kind of cool. Go back to commercial. You can do a also kind of thing. We just do commercial search. So just a multifamily. It's not kind of a way to work the system here. It gives you all sorts of property types. So some of you I know are not just investing in apartments. So you're doing self storage. Some of you are doing mixed use, land, whatever you want to hospitality. You can also search for lenders doing that stuff here too. Okay, so how many of you guys that are on the session here? Just a quick in the chat roll the Q and A. Are looking at other commercial properties or besides just multifamily. Anybody? Okay, we just jumping on the hottest bandwagon because you see it everywhere. Multifamily. Multifamily, Multifamily. Great. Little saturated. But how many of you guys and gals are doing are looking for other stuff that makes sense? Self storage, mixed use.

Okay.

Hotels, whatever. Other commercial properties. Anybody on here? No. Okay, fine, you're not. Anyway, this is a great way to use this as well. Same thing, other resources because you're gonna get stuff like. I got a mixed. I got a list in from an institution the other day that had all sorts of property types. It had everything from multifamily to garni quesada, little Mexican restaurant down in the valley to a beer barn. I was kind of funny. You see some weird stuff sometimes that the bank is financed on and they want. I got a dispensary in Los Angeles and a grow house I got a mixed use in outside of Gulf Shores, Alabama. Some great stuff. Some great stuff we're working through. So I always like to see what you guys are interested in besides just the traditional multifamily stuff. But anyway, there you go. If you're looking to build, you can find construction hard money loans on here. Scotsman Guide is pretty stinking fantastic. Okay, all right, where was I? Let me go back here. We covered that. We've covered that. Let's do back to my presentation there new share. So if you don't think this is gonna happen again, be concerned. I am very concerned for it. We're gonna see a downturn. That's the one thing I worry about when I see people getting so excited about a hot market that a. What's gonna happen when the market turns south? You get all busy, you're buying, overpaying for things and the market goes south. If it goes down 5%, 10%, are you covered? If you go down 20%, are you still gonna be in the black or even the red? What happened in 2008 I got into the market was that I was getting all these multifamily sent to me that people had financed three to four years earlier. And so I started buying all these substantial discounts from some of the big gurus out there who were on the loan because they over bought, they overpaid for the asset.

Okay.

Their main strategy was to get it bringing private people's money, get a traditional loan on it, wait three to five years, get refinanced, go from there. And that's not the case. It worked out. So be careful when you're looking at your stuff. Be careful what's going on in the market. Make sure you're researching, make sure you're talking to people and seeing what's going on. Because all agree some crazy shit will go down on Wall street and you want to make sure that you're not sitting there with no toilet paper. So let's talk about funding these deals. Same thing. Many of you are used to raising capital. Okay, how do we fund these note deals? Well, we use a lot of self directed IRA money Quest Trust company. I think you had Nathan or Quincy on here earlier this week. We are one of their biggest referrals or new accounts each year. And we just loves them.

Okay?

Now no bank will give a loan on a loan they're not gonna go to give you a loan on a Non performing loan. Now, the originating bank may give you a, may move that to their existing side on the commercial side. But if it's really non performing, the bank really wants the books, you're gonna have to go find money to do it.

Okay.

It is rare to find hard money lenders who understand this stuff. A lot of these guys across the country, you know, they're used to giving on residential. They're not understanding the notes, especially in a multi family. Okay, but your guys are all raising other people's money. It's the same way, buying notes. Okay, we can buy a lot, raise a lot of capital. Paul asks, are there any licensing requirements for buying and selling notes on the commercial side? No, no license required on the commercial side. Residential side, you need to be licensed in a few states either as a licensed mortgage broker or licensed debt collector. Like Illinois. If I'm buying residential loans in Illinois, I have to be a licensed debt collector and there's about $750 fee once every two years. And if I'm buying residential loans in Georgia, I need to be a licensed mortgage broker there once I'm using my own ira. So it's a state by state level. I will tell you this, you should be servicing your loans with a servicer. Probably shouldn't be trying to, you know, handle everything yourself. Servicer will cover you in about 80% of the states. If you've got a licensed servicing company, handle your stuff. Okay, but we use this is. You guys are familiar with this. We've used traditional IRAs, Roth ESAs, Solo 401s, HSA cash to fund all these deals. All right. Now the beautiful thing, when you're buying an apartment complex, you're buying a note. Most of the time the bank is not wanting you to put up any earnest money because they don't want to take a little bit. They just want the whole thing to come in and funding so you can drag stuff out for extended period of time. You know, ask for 90 days of due diligence. Maybe they'll give you 45. That's often enough. Now the tricky thing is you're not often to get the financials on a non performing note, you may need to recreate those in some sort of fashion. So that's why we like to look at LoopNet a lot of times for commercial assets that are pending. Because oftentimes, unless on LoopNet, they'll have the financials and we can really see what's going on with the place to help us raise capital, especially we use it as a tool when we're negotiating with a bank to get a bigger discount. Okay, so how do we find investors? Same thing. Many of you guys doing rei, clubs, meetup groups, self directed IRA investors. This is one thing that we do a lot of in tracking down self directed IRA investors. Now I don't just like to go out, hey, at the local meetup fund my deal, I do something a little bit different than most people. We go direct to those who have pulled the trigger. Because I don't know about you, it's difficult raising capital and get a bunch of tire kickers. I like to deal directly with people who pull the trigger on deals. So I jump on the local county appraiser accessors website and I track down self directed IRA investors who pull the trigger, either in buying assets and funding it for the other IRA or lending money on it. I'll get to that in a second. How we find that stuff? Okay, let me go actually I'll go to that right now. So you're gonna like this. I go to a website called Netra Online. I know I gotta share my screen. Hang on here. Yes, thank you. Screen sharing has stopped. Many of you may have seen this, maybe you haven't. So Netra Online, this basically tracks all the county websites in America into one spot. Alright, free website, Netro Online. Go to public records online and let's pick a county. We'll pick Texas because everybody loves Texas, right? All right, we'll talk about Travis County. Say I want to find people in my local county who pulled the trigger locally. It might be well in line with me. Now what do we know about self directed IRA investors? They've real estate investors because 99% of them that have a self directed IRA are real estate investors. They're looking for deals. And the most important thing, money, money, money, money, money, money, money, money, money. Okay, They've got the money to do it. So click on Travis County. Now there's two. The clerk and the appraisal district. I will first go the appraisal district because that's the easy thing. So I'll just go to data online. Click there. Not every county in America will allow you to search by borrower's name. So that's the thing I keep in mind. If it doesn't let you search by borrower's name, it will if you go down the actual office. But online a lot of them wouldn't, especially in California. So property search. I'm going to type in just Quest, let's just say Quest Trust Company. Okay, I'm just going to do a search for 2019. So on the county appraisal district there are 14 properties where the borrower was a Quest Trust Company client. So you can see here Rialto boulevard, Sharon road, aka quest IRA. So let's just click on one. It's view details, $853,000 value. So this one is quest trust. Quest company for the benefit of. It should be FB of FK of Karen Kruipen. Okay, now that's the mailing address for the Quest home office in Houston. But I can find Karen Kruipen. I bet she owns other stuff here in the county. Crouppen, Karen Krupen. Remember that? So let's go back here and do a search here. Got 14 people there, right? Let's type in Croupen. Okay, lo and behold, I found Karen's home address. 538,000 appraised value. It is located in 78734 Lake. Way out in the lake. There you go. Now I have Karen's mailing address. I mail her postcard, I could probably find her phone number. I can send her an ebook. I could send her a postcard. This is the only direct mail we do is to IRA investors.

Okay.

But in less than five minutes I found an IRA investor who's got a half million dollar property in a nice part of town on the lake or at near the lake, and then also has an investment property here locally as well that she's used her ira. Okay, now that's a great thing. Now that's just like typing in Quest Trust Company. Now we all know Quest just changed the name. Let's look at quest ira. 32 people, same thing. Quest ira quest ira. Let's just find one on here. Boom. This one here, 908 N. Oasis. That's downtown.

Okay.

For the benefit of Bruce Scaff, IRA 17 wants in that same thing. I'd go back and refer Mr. Scaff.

Okay.

When I love doing this. Actually, I take that back. I don't do this. My assistants do this. My VAs or interns do that. So we'll type in. In the different major metroplexes, the markets across the country, all the major IRA companies.

Okay.

There are like 40, 50 self directed IRA trustees or custodians. So we'll type that. Let's type in equity bust, all right. And see what they say here. Equity bust, one of the biggest in the country. Same thing. There's 145 here in Travis County. All right, same thing. Now I just got 145 potential investors that I reach out to. Okay, now what are you gonna send them? I send them a postcard, I send them a letter. There's a couple things that we do to reach out to them directly. But I know they fit my biggest categories. How do they fit my biggest categories? They've pulled the trigger, okay? They're looking for deals and see they have money, okay? And it doesn't all have to be their ira. They have other investment sources. A lot of times, let's all face it. I mean, you talk to Nathan long, they got $1.2 billion of asset management and 300 million of it is sitting in 0% accounts, not making money, waiting for somebody to reach out to them. So I like reaching out to directly. Hey, came across your stuff. Public records. Love to visit with you, see if you're looking for more deals. And that's one of the great things that we do. But we love doing that. That's the appraisal district.

Okay.

And you also the county clerk, Richard hall, if I heard you right, why are self directed IRA investors, account holders the only direct mail you other lead gen? No, I don't have to, Richard. I don't have to send any postcards. Why am I going to send a direct mail piece out for potential buyers for one deal when I can get a bank to send me thousands of deals over the year? Okay, I don't want to waste my time. Mail in thousands of thousands of the direct mail pieces is a waste of time marketing for what? A 1 to 4% response rate for one deal maybe. Screw that, dude. I want to go direct the source. I want to go to the banks and get one. If I can get one bank connected with it, they're gonna feed me deals every time. I don't have to go rinse and repeat every month. I don't send direct mail. Waste money doing that. I'm sorry if you're doing that. I just think it's the old way of doing business. I wanna work smarter. I wanna send an email blast out to asset managers and get people to respond to me. I build a list of emails, build a list of contacts using the exact things I've showed you today so that I don't have to work, so I don't have to sit here and be licking Stancer and my staff are paying thousands of dollars each month for stuff that's not gonna work. I want a high effective rate. I wanna use email. I wanna leverage those emails on the LinkedIn and track down those people. Like I said, I don't Want to reinvent the wheel? Every month, email blast out to 8,000 asset managers. 4,000 asset managers get, you know, response rate. People will send you stuff on a regular basis. I want to work smarter, not harder. And I'm not trying to offend anybody who's doing a law of direct mail. If that's your choice of doing things, fine, great. But if you're looking for deals, it's the 21st century. You have to do things differently than you've done in. In the past.

Okay.

Hey, the great things about an online summit, a lot of people come in learning. But if you're still doing the same things and chasing the same markets and the same type of deals, it's saturated, okay? It's saturated. You gotta work smart. You gotta get outside of all the same stuff that everybody else is doing and be differently. Okay, yeah, yeah, disappointed, Exactly. But that's why Dan has me on here. That's why he has me talking about notes, because it's a different way of getting deals. But everybody's in the note gang. Every bank has apartment loans. Every bank has defaulted debt. It's just a matter of reaching out and getting to the right person, saying the right things and the wrong things. Okay, Sorry, that's my little stump horse there. Somebody's questions here. You're welcome, Denise. Denise. I like that. You're welcome, Richard.

Okay.

No, only direct mail do is like I'm showing you right now, is that to these sources. So let's. What is. You want to find people who have lent money using their ira? Well, we don't do the appraisal district because that's our property. We go to the clerk and we look, do a deed search.

Okay. Yeah, yeah.

Click your acknowledge. Do the same thing. Okay, when you go to real estate, where is it? No, come on, login. Oh, Travis County. Getting sneaky. This is different. Okay, let's go back here. We'll just go back to natural online and hit a different one. So let's pull up a different county. Let's do a different state. Let's do. Let's do Florida. Florida. And we'll go to the Rat Lamb County, Orange county, for Disney World. God's waiting room floor. Duh. Click on here. Same thing. Property appraisal. The recorder's office, Controller's office. So we'll click on there. This is gonna blow your mind. Mind blown. Okay, so your recording date here. Last name. Let's just type in new views, let's type in equity trust, and we'll do a start date. Let's Just do the beginning of the year 01. 01. 2019. And the end date 06. 1919.

Okay, Equitrust.

We'll hit search. I did enter. Oh, yeah.

Search.

I get excited. So you see right here. Look at this. Let's click on this one. Jeff Webel, ira. Oh, it's such a beautiful thing.

Okay.

Jeff Webel's ira. Equity Trust Company lent money to Steven Rotz. Okay, let's look at the actual deed. Nah, I love it. I love the smell of IRA in the morning. Yes, I'm a D total.

Okay.

See, Equity tries for the benefit of Jeff Weibull. And that's the address for the IRA company. But left money on this thing. Oh, it's a quick claim. They deeded it back. Oh, look at that. Yeah, let's go back here. Let's look at another one. Let's see. Notice the commencement. DD Mortgage. Here we go. Mortgage is what we're looking for. All right, Buy to GOO Inc. To Alec Ross, irs. Let's look at the view of the images. All right, so here we go. Balloon mortgage. Let's see here. 2019. Or did I miss it? The first one. They usually give you the number and everything like that. Here you go, Stu. The benefit of Alex Ross ira. Same mail address there. Usually amount on here. Doesn't really matter because you know, you've got the information you want. You got Alex Ross, ira.

Okay.

Now, it often gives you a couple contact addresses on here too.

Okay.

Corporate sealed. Buy to goo. All right, so get a $621,000 balloon mortgage.

Okay.

There you go. Boom shakalaka. Lots of great stuff there, right there. Okay, so that's the thing. Free. This is all free for you to do, no cost. But one of the best ways to find people, and I guarantee if you send them a letter, say, hey, came across that you made a loan or you bought a property with your ira. Love to visit, see if you're looking for more deals.

Okay.

Something simple. We're not soliciting. We're just trying to make content. We're trying to make that really connection. Now, if somebody's lent 621,000 to IRA, they're probably an accredited investor. Can we agree to that? You're not gonna waste your time with people that have like five grand, ten grand. But you never know. Everybody's a buyer, everybody's a seller, and everybody's an investor. Okay, so deed satisfaction of mortgage. Here we go. This is a good one. They got paid off. I really like satisfactions. Can't get no satisfaction. Okay, here we go. See Adam Sherman. So Sherman Adams, basically. Oh, this is beautiful. Beautiful. Satisfied. A mortgage.

Okay.

$106,000 mortgage.

Okay.

Sherman Ann Equity Trust for the benefit of George Kern ira.

Okay.

Boom shakalaka. A one page satisfaction. We do these all the time for when the loans get paid off. But he got 106,000. He satisfied mortgage in his account. Let's find something. Let's find something for him Investing. This is February 21st of this year.

Okay.

Hey, Mr. Adams. Excuse me, Mr. Adams. Are you looking for more deals? I see you look like you use your IRA to fund it or lend on something. I'd love to visit with you, see if you're interested in doing more deals. Because we are a multifamily or real estate investment company doing deals in Orange County, Florida and the surrounding areas and would love to visit with you. Okay, simple stuff. I know I'm coming up on. I'm about out of time here. So anyway, that's what we like to do with a lot of this stuff. Everybody. Let me go back here as I flip through some things because I got like a minute left. I just realized there's all sorts of different exit strategies we can go through. What I'm going to do here is I'm going to. I don't have time to go through all these strategies. I've got a thing that discusses this for you guys. Be able to do this stuff. I've got a ton of videos online. There's 10 different ways you make money with different extra strategies and notes. Law of averages. You're gonna end up buying 10 notes, three to four, modify three to four, deed loan. The rest you'll end up foreclosing on. But what I want to do is I'm gonna give this thing here while you got time, because I respect your times, respect staying on time. We have a lot of great deals. We raise a lot of great capital from doing the things I showed you this morning. There's plenty of deals out there for everybody. I will tell you this. Banks, often the asset managers have a serious problem having their head up their ass because they don't move quick enough. And that leads to opportunities for us. Banks hate REOs. There's huge opportunities for us as real estate investors to really make things happen.

Okay?

That's what you got to realize. So we did a lot of great wins by doing working smarter, not harder for everybody. And I just want to get to this thing. So a lot of people get into real estate investing excited. But you go and talk to them six months later and they're feeling like they want to kill somebody. Well, we've tried to take that out of the issue here. So I've got a couple things I want to give you guys here. We do everything. We help people with everything on the notes. I help them get things started, find the resources that are loving life. So I'm going to flip forward here. I've got a lot of students that are doing amazing deals all across the country. And I started teaching because I was finding more deals than I can handle. That's what we love. I love to teach. But I'm not here to put you on a class. I'm here to give you a couple things. Alright. Our last mastermind, our students combined together done over 2000 deals themselves. So the catch is here is investors don't know what they don't know. That's why you're here this weekend, right? They need someone to call. They need someone to reach out to when they're struggling with one of three things. Finding deals, marketing and raising capital. And that's what we specialize in.

Okay.

We help people give a game plan. So I offered up my book. I've got a book. How to buy real estate for 40% off. How to tap into the secret. How to break into the world of note investing. This is free, no dollar thing. If you go to NoteBlueprint.com freebook NoteBlueprint.com freebook you can download the ebook.

Okay.

It's a great starting point. Goes through different exit strategies there. I have tons of videos on my YouTube channel. Would really love if you want to go over to YouTube.com weclosenotes subscribe there over hundreds and hundreds of free videos and interviews from our podcast. Listen to podcasts. Be glad to do that there for you. I do have a specific note commercial coming up. It's a three day online something like this, end of July. It's designed for those that are serious about commercial notes, not residential. This is all about commercial notes. We've over 30 plus guest speakers on that. It's normally $6.99. If you guys are interested, you can go to notecamp live. Use the code mfin. Mfin. It'll knock it a half off for next week. I'm running at 25% off because 4th of July. But if you use the MFIN code, it'll knock it off at 50% for you. So you get it for less than 350 bucks. But I'd love to have you attend great speakers on different specific Commercial. Whether it's multifamily, mixed use, development land, RV parks, self storage. I'm bringing some my asset manager buddies from banks on to talk about the market. And we're really looking forward to this. So I want to say thank you for joining me. Thank you for those that stuck around. Hopefully you got some nuggets out of today's session. And honored to be here, guys. And Brandon's here to boot me off to take a break.

Giving you the hook. We're giving you the hook, Scott. No. Scott, thanks for being with us. Thanks for all the great content. You know, I. I did not get a chance to hear your presentation last summit because you were in Dan's room. And so he tries to hog all the glory. So I'm glad I got you in the room this time.

I saw that. I went to room two this time. I was like, that's okay. I'm against a podcasting summit I'm gonna score here. These are the serious people that I want to deal with.

That's right. And it's a Saturday, so it's hard. It's hard to convince people to get up and watch at their computer on Saturday. So. And that reminds me, make sure these are all going to be downloadable videos. That's all. You can have these videos at any time. So if everybody's leaving on fourth of July vacation this week, so be sure to download this video. Check out Scott's video. A lot of information there. You can use that in many different ways, so be sure to check that out. Scott, thank you so much for being with us today.

Thank you so much, guys. Once again, there's my contact info. Book is free for you guys. Download it and I wish you all the best. If you have any questions or want to reach out to me for more stuff, I'm glad to. That's my contact info. Have a great Saturday, everybody.

Thanks. Have a great day.

Bye.

All right, everyone, thanks again with Scott Carson. And we have again a special fundraiser going on for Whitney Sewell. Please be sure to check that out. I'm going to post the link again. We have a $5,000 match contributor Anonymous for that fundraiser. So he's going to match up to 4,5000 plus. We have two other $1000 match contributions in there as well. I've personally donated myself. A couple people here in the office have done so. So please join us in that. It's great. Cause Whitney's actually on the other in room one right now. I think they just wrapped that up. So be sure to register for the next event is next mfin.com for the 2020 in January.

Please.

You'll get entered to win the iPad. Go to the podcast, post a review, send a screenshot to staceyultifamilyinvestournation.com and we will see you in just a few minutes for our next session with Henry Lai.