Session 4 - Mastering Note Marketing & Deal Analysis: Email, Networking & Valuation Deep Dive

All right, we are back for afternoon session. Hope you all had a good little lunch break as we get rock and rolling here. More on the first day of the virtual note buying workshop. On the fine side of we find deals and we'll be diving to that. I wanted to open it up there for you guys for any aha's, any nuggets that you thought of during your break, anything that didn't make sense to you, if you had any other further questions, topics. Obviously we covered a lot in the first couple hours of the class about how to find different deals utilizing services like LaneGuide.com Bauer Financial Leverage, your LinkedIn profile, who to search for, what to search for kind of what to say on LinkedIn along with leveraging foreclosure lists off of whether it's the Roddy list here in Texas or foreclosure.com if you're nationwide or if you're on the west coast county records research out that neck of the woods. Also, we actually talked about some other things and how to. You saw me leveraging Gemini or Google's AI or Chat GPT to find the correct email address for a potential asset manager. How we looked at the county records and the assignment searches define previous, you know, assignments and then looking for the right people who signed off on that. Not the notary, but the actual people that signed off on the actual assignment there for you. So anyway, but just so you know, one thing, when you send an email out, I like using Outlook to make sure and I always send a, a read receipt if I send out an email to somebody and I want to make sure that it's the right email. Like I did it before lunch. So I sent this out to Ivan Costaneda at Ocean's bank. And you can see your message was successfully delivered to the destinations listed below. Okay, so doesn't mean if he hasn't opened it yet. Could I open an open receipt? Yeah, I can set that. But I always want to make sure delivery receipt. It's important. Okay, so this is the, you know, one way to do it. Now what am I going to do with Ivan? I'm going to add Ivan. And that was the question somebody asked, I think on, on YouTube, what do you do with these lists? Yes, LinkedIn is great connections but if they don't, if you don't have their email address, what do you do? Well, you just continue to follow. Here's one thing you'll hear me say throughout the weekend. Okay. You'll hear me say this over and over and over again in A lot of cases is 80% of sales comes after the fifth contact. Okay, tell all the times. For my one on one coaching students, we give you a list of our asset manager, our hedge funds. And I always tell them, it's always funny, I have to remind folks, I send out a list, I say here you go, go reach out to these warm contacts and people reach out to them and sometimes they'll respond, sometimes they won't go, I don't want to bother. Look, look, people are busy. Asset managers are busy at banks. Banks have these very difficult spam servers, right? Spam filters and a lot of their email addresses. Okay, so part of it is knowing that it went through, which is great, that's the first thing, but they don't respond. Realize that when you send emails has a lot to do with how it gets opened. All right. When you reach out to an asset manager, it also is going to depend on how it gets opened or received or even seen. Like Friday, Honestly, Friday might be the worst time to send an email out to your database. If it's done before noon, it can be okay if you're sending an afternoon, especially 2 o' clock or late in the afternoon, guess what, it's probably not going to get read most of the time. It's probably going to get pushed to next week if it gets seen at all. All right, so a little bit of ground work, you know, rules when it comes, rules of engagement, let's put it that way. Okay, so as you're building a list of emails, whether it's a from the mortgage bankers list that we pull from Texas Savings on the mortgage lending or it's a servicing company list that we pulled from the MLS or whatever it might be, those are all great contacts to send out to. Now are you going to get a 20 to 30% open rate the first time you send out? Yeah, you may. But what's we. The way we do it is that we want to send the same email a couple times. And I'll break this down for you. The best time to send an email to professional contacts, not your warm investor database, not your friends, your colleagues, not people you've met at the local REIT club. I mean those you could send a couple different times. But if you're going to send to bank asset managers by pulling emails like we just showed you how to do the first half of the class today, you're going to send them on a Tuesday, Wednesday or Thursday. Okay? Now Wednesday is actually Wednesday morning. About 11 o' clock is actually the best time to Send an email between 10 and 11 o' clock where it hits that person's inbox. That's the number one time. Okay, Tuesday afternoon, like around 2 o' clock is the third time. Thursday afternoon before 2 o' clock is the third best time as they say. Now these are not my numbers, these are the American Marketing Association's numbers. And also a lot of CRMs like constant contact, mailchimp, keep infusionsoft, all those have kind of columbered and been able to show when the best open rate is for you to send out. So that's what you look at. Tuesday, Wednesday, Thursday is usually gonna be the best time for you to send an email. Now if you're gonna follow up with a phone call, I wouldn't call on Mondays and I don't, I wouldn't necessarily call on Fridays either. If you can call Tuesday, Wednesday, Thursdays between 10 and noon their time and 2 to 5 their time wherever you're calling. So if they're on the east coast, you call east coast times. If they're all Austin, Texas, you can tell a lot by you know the phone number, you know, five one, two, it's Austin Central time. You know what time zone that's in. Just Google what time zone is blanking. Of course, people move, but for the most part, if you're gonna follow up with a phone call, do it before 5 o' clock their time. All right, that's the biggest thing to keep in mind. Now would you. Do you need to make a lot of phone calls? No, you don't necessarily need to make a lot of phone calls these days. I used to make a ton of phone calls, 50 to 100 phone calls a day. Dialing for dollars. Okay, if I'm making 50 phone calls and each one is lasting five minutes, that's 250 minutes, that's over four hours of phone calls. You can fill a day pretty fast knocking out phone calls like that. And that's the thing you look at if you're going to dial for dollars, don't make five or 10 and give up. Okay, make 50 phone calls, spend a day doing it or split it over two days and do it. And then, oh, I don't want to do that. You probably aren't going to want to do that. I already know this. You know, I used to be like Leonardo DiCaprio's character from the Wolf of Wall street or Will Smith from the Pursuit of Happiness. Dialing for dollars. It takes time. You know, we've done it many times before. We'll still follow up with people on time and time. And that's what I like to tell people. Like listen, if you're gonna do an email blast or make phone calls, look at when you call them. If you call them on a Friday and it doesn't answer, guess what? It probably doesn't count. Call them on Tuesday, Wednesday or Thursday, the following week. And that's the thing, when you send an email blast out, you want to use a CRM tool. I use Outlook on a one off thing and I could verify if it's a good email or something like that. But if you send like 50 emails through like Outlook, you're not going to be able to tell exactly who all opened it or who didn't open it or if they received it or didn't. If it received, great, but you don't know who opened what. So using a CRM like mailchimp is okay. I like we use keep because we had such a huge database, 65000 emails. Most of you don't need that. Most of you. What's going to work best for you is REI Blackbook, Damon Ramey's company. He's really, really great. Got a lot of support. There's a few others out there. So don't, you know, don't call me up. I, I'm using this. Whatever you use, use it, use it, don't donate to it. One of the most impactful things that you can do that doesn't take a lot of time, that can happen at any time. And if you have a CRM, you can go pre write your emails and pre schedule them to go out. If you have a CRM that doesn't allow you to pre schedule your emails that go out in the future, get something that does. Okay? Because what I do is you'll upload your list of contacts, first name, last name, email, cell phone numbers, address and stuff. But you're not going to send any direct mail to your asset managers. Don't waste your time. Okay, well I want to send a postcard. No, don't do it. Don't, don't waste your time. It's not worth it. Okay? Spend that money on a CRM, whether it costs you 50 or 100 bucks, spend that on a monthly basis, you'll have a higher bang for your buck because email actually has a 44 to 1 ratio when it comes to making money. And this is not me saying this is actual marketing statistics out there that gives you a 4400% return with email still to this day. Yes, all in the days of social media and TikTok and all that stuff, email is still the number one bang for your buck. So go pay for a CRM because you're going to use it to raise capital. You can use it to market deals, you're going to use it connect with asset managers. So our flow, as I should say, works like this. Okay. We like to send a email out Tuesday morning to our asset managers Tuesday morning by 10 o'. Clock. Okay. In our CRM, if I write it in advance, okay. I can pick 10am Their time zone. Now how does it know? It just knows. After it send out an email or two, it knows what their time zone is. Okay. All right, So I send an email out to my asset managers at 10am on the first Tuesday of the month. Okay. I'll wait 48 hours and in 48 hour time frame, I'm probably going to have about a 20% open rate, give or take. You probably will. That means you have 80% that didn't open it and that's okay. You immediately take those 20% and you put them in your warm. You tag them as a warm lead. Okay, Whatever you do. Excuse me, Tag them as a warm lead. Warm asset managers, the way I say, okay, now somebody responds, yes, you definitely tag them as even a hot, hot lead right now. What's also important is look at your bounced emails. A lot of times when we do an email blast, we'll get an email back response to those that have an out of office reply. Those out of office replies are golden because 90% of the time the out of office responses will give an alternative contact name, number, email address to call to reach out to. You want to take time to take those contacts that are listed in the out of office and put that into your database as well. Okay. Now what you want to do is those that didn't open the email the first time, the 80 percenters, okay, you want to then resend that same exact email again. Just go and hit replicate the template and resend to the 80% didn't open. But you want to send them now not at Tuesday morning, but Thursday afternoon. My Thursday afternoon, I be Thursday at 2:00'. Clock. Okay. Now with the second round of emails like this, you know, yes, it's the exact same email. You ain't got to change anything except the time zone or the time frame that's going out. Okay. You'll probably get an additional 5 to 10% open rate. So now you're at 30%. Okay. Put those in your warm list. Hot list, hot Leads, let's tag them as hot leads. And that's what you do. And then you do you send one more email to the remaining 70% didn't open back on Tuesday afternoon. Remember you sent original Tuesday in the morning. Now you're gonna send it Tuesday afternoon. You're gonna get sent it three times to those that didn't open. Now you're probably gonna get a 1 to 5% open rate on that third time. But still that 1 to 5% open rate can go a long way. Now a couple things you don't wanna do. Okay. When you're sending out your CRM you wanna make it come from UD from. I'm sorry you're your own name. I'm sitting by you and I see Judy on here. So I said combine the tomb to ud but have it come where he asks who it comes from. Don't put your name down. Like I wouldn't put we closed notes from it coming. I would say Scott Carson, Judy Richards. Boy Pops Caluming. Do not have it come from an info at or sales at or whatever. Have it come from a personal name. I can't tell you how many times I get emails and they end up my spam because somebody using info remember banks lend institutions have a high very effective spam filter. In the first thing it screams spam info at sales at contact us at whatever. So always put it from a name. Now also the great thing about using a CRM it should allow you to customize the two. So if you've got that person's first and last name go to having going to 2 Ivan at Oceans Bank. Ivan regarding your non performing notes. Right Scott, you know, do you have any notes for sale this quarter? Scott? All right, so you wanted to insert that merge field in the subject line that increases your open rates. It also looks like it's a more personal email. Now you also don't want to send some fancy ass email. It's got all these infographics and stuff like that. You also don't want to include multiple links to asset managers. What you would want to do more than anything else is a make it clean. Have maybe only your logo. Like I would put we close notes on as my only logo. Write the email and I'm going to put a link either to my my calendar, talkwithscottcarson.com and then a link to connect with me on LinkedIn. All right. Now I think it's good to include your LinkedIn profile photos like an email signature and stuff like that too folks. Shrink it down so it's not. Hold the whole email sometimes I've done that before and screwed up. Okay, but what's going to happen as well is you don't want your email to be long winded. You don't want your email really to be longer than 20 lines of text that go across there. Okay, so 20 lines of text personalize the email subject line with their personal name, your personal name from Scott Carson, from James Dean. All right, Whatever it might be. And like I said, have one link to book a call or one link to your calendar. I'm not, I'm sorry. One link to your booking calendar, one link to your LinkedIn. My apology. Okay. And that's what you do every month. Tuesday, first Tuesday, first Thursday, second Tuesday, you do the rinse and repeat. Okay. Now what's going to happen is you're going to have, over time, more of these emails go on your warm list and more people will be cold. After a period of time of sending these out seven or eight times, you can stop emailing to the asset managers or. What I would do, actually, I really wouldn't stop. I would only stop is if you can't find them on LinkedIn or you can't find an email address. Okay. It'd be worth you taking a. Having a VA take the time to go through to find updated emails or spend some time on LinkedIn and go on that route to do it. Okay. But you're gonna have a pretty high open rate for the most part, doing the things that we just talked about. All right. And that's a great thing. If you get, you have a thousand thousand emails and you get 20 to 30% open, that's 300 contacts. That's going to take you a while to call and follow up with. And is everybody going to have something every week? No. Some banks, lenders only move stuff about once a year. Some move it once a quarter, some have it monthly. All right. So it just varies on the cadence of talking with these asset managers and seeing what they have available. Okay, question here. Comment from somebody. Okay, so Skyline, because I think we actually have a higher chance of these guys too, because they are trained to make sure they always check their emails every day, especially being in, in this line of work. Yeah, they do. They're. They're set to check it. But the reason we want to do the double touch approach, the LinkedIn, the email and then the phone call, a triple approach is sometimes your emails aren't going to spam. It just is promotions and you just want to follow up with them to see what they have available. Okay. You know, and it's just that follow up, follow up, follow up, follow up. I can't tell you 80% sales are made after the fifth contact. So if you just send one LinkedIn connection, that's not enough. All right, if you send a LinkedIn and an email, follow up, that's better. A phone call is even better. Or multiple emails. That's a better approach. If you don't have a phone number, I'll find them. Okay, that's the thing. Send an email, follow up, follow up, rinse, repeat. And here's the thing, ladies and gentlemen, I, I like to write out six months of emails at a time, right. So one thing I will be doing already as we get to the end of the year, I do it a little bit on, on when I get to November and December, I like to send this email campaign twice, once every two weeks, not once a month. So like I will send out an email on the December 2nd to start that off because that's the 1st of December. Trying to get anything in. I also sent it the first week of November. I'm just following, hey, what do you have in your books? You're going to close by end of the year. Do you have anything you're going to move this quarter or next quarter? Just that touching base. I mean I've had people have been getting my emails for over 14 years. And the idea here is not just that to touch base with them is any contacts they come across that may have some stuff available for sale. I've gotten referrals from bankers and asset managers who afforded stuff to me from a source or a source sent me stuff that they got my name from. Their information. Okay, and this works. It's just, it's a simple thing that takes you 10, 15 minutes to do once a month. Or you could do it and rinse and repeat it and write six months of emails to go out that first Tuesday as a reminder. And a lot of these CRMs will allow you to, okay, let's if it, you know, set up procedures so if they didn't open it, it goes, they get their email there. But you could all go in and pre write, pre schedule emails from now through the end of March or April. You know, April would be five months of emails, May would be six months of emails. But have it go out the first Tuesday pre write it and just change it up a little bit. Hey, I hope you had a great Thanksgiving break. Do you have anything now what you are you plan on selling anything before the end of the year, come January. Hey do just wanted to follow and see if you had anything that didn't close by year end that you're looking to move here in January. We'd love to get an opportunity to look at that. February, hey, it's halfway through basically the first quarter. Do you have anything on your books? Hope you had a great January, right? Happy Valentine's, fall in love with your portfolio again, whatever. Right. March, hey, it's basically coming to the end of Q1. What else do you have in your books? You're looking to close by this quarter. It's kind of that process usually, you know, March, June, September, December, that's always hey, what are you looking to sell the end of this quarter? It's just touching base and eventually over time people will move from that repeat list to the people with hot list that are a sending me stuff. So I have another email list which my hot hot list that I've gotten stuff from anybody sent me an NDA, any pool I've ever looked at. It's a much simpler email. Hey, just wanted to reach back out to you. What do you have on your books this quarter? Okay, you know you're looking to move anything this month. What do you have now that you're looking to sell this month? That's a warm phone call, a warm email through Outlook because I've already connected with them, I don't have to jump through that hoops. Would they still get my mass email? Of course they would, but it's a warmer email database kind of thing. And that's how we've been in business for 15 years. When we have sellers that we've dealt with buyers for over 15 years because we're consistent or we have sellers that move from one fund to a different fund or a different bank to a different bank that we still reach out to, we're still connected. Okay. I had a guy, Tom McLemore who was with in banking. Oh, he was with Synovus bank, the bank of Tennessee, some other bank and stuff like that. He moved three times and every time he moved he reached out to me. Hey, I got something on my book so you might want to take a look at. Okay. One of my buddies, Todd, Todd Billings, used to run U.S. debt ventures out of Fort Lauderdale. And it was kind of an interesting thing with him. He ran a family office for some four or five families, five very wealthy families in South Florida. And they came to him and said, hey, we're gonna buy a portfolio of non performing notes. We want you to manage it. And so he's this smart guy from Stanford living in South Florida who gets dropped this portfolio of Florida loans in his lap that he didn't buy, but it's. The family bought it. So for the next, you know, three years, he's working through this portfolio of notes, driving around, working out. And he used to always joke about, he would send me an email, I got your green email again, because my logo's green. I like to use a little background with green, right. And he would send me some stuff. He goes, hey, I got your emails. Who does your email marketing? I'm like, I do. I actually spend the time to go through it. But I also, you know, taking a couple online classes about it. And I like to focus on because I'm. Here's the thing that my, my lifeblood, my business is my marketing, ladies and gentlemen. Yes, branding helps. You know, the note closure show. We close notes Note Night in America. You know what I mean? Different podcasts. I mean, Note Night America, we did a live stream on Monday nights for basically 12 and a half, 13 years now. It's kind of pre recorded that we send out as a replay of things, but it's still branding. And you see black and green. All right. Turning problem properties into profitable solutions. A tagline for a couple of my funds. It's all about just consistency. If anything. I can tell you it's any type of success in anything is going to be consistency. And that's one thing you got to think back about too. If you've had, you've tried to do something, you try to be a real estate investor, try to do some things and I guarantee it doesn't matter what niche it's been in. It's whatever you've been the most consistent in. I'd be willing to bet whatever you put the marketing work and gave it six months for it to work. All right. I had a fund here in town, was trying to raise capital and the guy reached out to me, nice guy, sharp guy. And I was like. So we were talking, he's wanting to pick my brain about capital raising. I said, well, do you ever target any, you know, IRA investors? Oh yeah, occasionally we'll do something like that. Go to a network unit. No, I was like, pull stuff from the county, which I'll show you how to do this tomorrow. And I asked him, I said, how often do you send an email to your database and how big is your database of email contacts? He goes, it's about five. Okay. He go, I go, okay, so you got 5,000 contacts. You only send how often? He said he goes once a month. I'm like, that's not enough because what are you talking about? I said you should be sending an email to your database, your warm market investor database once a week. Oh, that's too much. Like, too much. 80% of sales are made after the fifth contest. If you want to raise money and build rapport with your database, your client base doing once a month, they may miss it, they may not see it, but if you do it once a week, at least they're more likely to catch it. And you'll be raising capital from them in six weeks versus maybe, who knows, whenever. Well, he wanted to argue, well, the funding actually went out of business because they couldn't raise enough capital. All right? And there's also, and I can say just touching base. You're going to use your email, your CRM, not only for the asset manager, you can use it to raising capital skyline while you show out templates in your. There's a couple templates in our manual. I would highly suggest you go over and get signed up for the workshop. Go get paid for it. You'll get a manual, a ton of contacts and some different sample emails and stuff like that. Every little, every email service you use is going to be a little bit different. Okay? Like my templates for coming from keep. I pay a lot of money for my CRM every month because we have such a huge database. It's going to look differently than somebody using REI, BlackBook or Constant Contact. I would not use Constant Contact. They do not like real estate investors. Okay, so don't use Constant Contact. They, they. We were going to have the founder Constant Contact on my podcast a few years back. I said, you don't really like real estate investors, do you? I said, well, because you have. He goes, oh, well, not really. I'm like, well then it's not worth you being on my show because it's all real estate investors and your CRM sucks when it comes to people that market. He didn't like that a bit. So he said like, yeah, it's probably good that you're not on our show. Right? Okay, but that's the thing is consistency. Look at your marketing calendar. If you've got 30 minutes this next week and you miss the arm, go pre. Write your emails to go out to asset manager list. Hey, just touching base because then when you get an email, you'll get suddenly get all these out of office responses. When it's scheduled to go out, it goes out. It's not relied on you anymore. Okay. You're not hungover from January 1st when the email goes out and you're like, oh, I forgot to check my out of office responses. You know what I mean? But it goes out and at least it's something. Then you can follow up with a second email and the third email to those that didn't open up and start tagging people differently, pulling people off, seeing what email bounces. That's another great resource. You're like, what a great resource is bounced email. Yeah. That gives you a reason to pick up the phone and ask to speak to somebody. Ask to speak who? The person's email bounced and when they said they're no longer here, well, who replaced them or who's their boss? I used to deal with them. Who do I have to deal with now? Okay. So that's the thing. Dave, thanks. I'm glad you enjoyed a great info. Awesome. So that's. I just want to go through that follow up kind of basis. Like I said first Tuesday, Thursday, Tuesday. And don't get yourself all bogged down if you forget to send it the following Tuesday and then guess what, send it on Wednesday. So you hit Tuesday, Thursday, Wednesday. That's totally fine to do there for, but take the time. Look at the out of offices. Take those and put those people into your database. Look at the bounces. Look at the ones that open your email more than one time. Those are the people that you should be calling because that's one thing that I like about the Texas savings and mortgage lending side and some of these others is you're going to be able to pull a list and their numbers are on there. So if you see somebody on an email, clicked on your email more than once or twice, that should be the first list you pull down to make a phone call to. Hey, I called Gene. I saw that you were checked out my email a couple of times over emails. I just wanted to follow personally with you. That so blows away what most people do these days. So many people do as little as possible when it comes to it and you guys can really stand out and build a connection but there are things you want to have in place. You want to have your. If you don't have a website and it's okay, you need to get one, but worst case, you need to have your LinkedIn profile. Rock and roll. I had a guy that reached out to me and he didn't have a website. He was referring people to his LinkedIn profile but his LinkedIn profile looked like crap. No, no, Banner. Nothing about real estate. His face was all mean and gruff. I'm like, nobody's gonna do business with you if you look like you're out of a, you know, a gang. All right, Are you looking too tough? Smile. Honey attracts bees more than vinegar does. Okay? If you're not smiling, you don't wanna look all mean and gruff. You're really hurting yourself, and that's your fault, not mine. Okay, so let's. As I promised before we did our first break, I go through a couple things, but there's a couple things I wanted to bring up before I dive into a couple of tapes and another source for you. Okay? So one thing I want to look, I want you to think about doing is. This is kind of important. There are a couple events that you may want to look at attending. Okay. And let's see here. Amen.org now there are, oh, four or five. Oh, I would say there's. There's a. There's some smaller events. The Mortgage Note Investing really doesn't have a true conference anymore. We used to have one at Noteworthy that would meet in Vegas. Every year you'd have 7, 800 people at it. We had. Did one on the west coast in New Jersey, had about 300. Most of them like IMN, I'm just not. But NIS, DME, I mean, they're not bad. You might get 200 people at it. About probably 150 attendees outside the vendors. And they're okay to go to if you're in your back backyard. Okay, go to it. All right, go to it once. But you're not going to find a lot of resources there. It's a lot of times the same talking heads. That's why I stopped really attending conferences, because I could get more activity, more traction from my podcast or being other people's podcasts. Okay. So. But there are a couple events you can go to. The Western Secondary Marketing Conference. This is next August. This happens usually out in California once a year. It's the large. It's the industry's largest conference when it comes to secondary marketing. Okay. And the great thing is there's usually about 600 people that attended. And there's some big, big names here, but there's also some great resources. Now, the last couple years, we've been able to actually get to the registration list for this, which is basically 600 plus people. And oftentimes we'll have their name, their company and their job title. And then a couple years ago, we got their email address. Well, we put that to work. With our VA and we're able to scrub the list. Now this is a list that we give our one on one coaching students so they have an additional 5, 600 or so names that they can reach out to. And it's going to give them special assets, a VP of secondary marketing, that kind of stuff. But this is a pretty good event. You don't want to necessarily probably pay for a 1500 dollars ticket right off the bat, but this should be something that you end up following. And now the great thing, if you go with a California NBA team here and you go ahead and register, you will probably get, I don't know, am I in here or not? I think so. CEO Submit. You get on their email list and that's all I want. I want to get on their email list so I can start getting notifications. And it's pretty cool. Sometimes they'll publish the list of connections, other times they won't. But you definitely want to set yourself up to be in the game. Okay. Now an easier way is if you go to imn. Okay. Informal Real Estate. This looks like they just changed from their branding. But anyway, IMN Information Management Network is what they used to be called. And IMN hosts all these different events across the country on a variety of different things. So like if you look at some of their current events like the Single Family Rental West Winter Real Estate, Private Funds, SFR Industry Awards. Okay. Litigation Finance, Middle Market Multifamily, the Building Show Bank Special Assets in Dallas. Okay, so it is coming up next week. Okay. Now if you click on here. All right, let's see what it costs today. Let's just see what it costs today. I think it's going to be 1500 bucks and I don't think it makes any sense at all. Yeah, 2,000 bucks for an all access pass. That is stupid. That doesn't make any sense to go. I'm sorry, you got him the hotel. It doesn't. But here's the thing. Look at the. Let's see what they say as attendees. Now they used to be. Here's the thing. They used to list a job title in the bank. Now they don't list job titles because they realize people were able to scrub it. But guess what? American Bank, American bank of Commerce. How we help you meet them. Let's see what they do. How we help you meet them? Their networking is not really, you know, their app is open for a year. Plan your time. Okay. Not really excited about that. But look at the agenda. Let's look at the agenda here. They're going to give you. Look at this, the speakers. Main national bank CEO Exchange that loans. Andre is a buddy of mine, Clark Street Capital. I know John. All right. And they're going to give you some of these different people. Senior Vice President, Peter Rizzo, Liquidation manager, First bank of the Lake Castle Bar holding the Workout Playbook, Risk Recovery and restructuring and Special Assets. Okay. David Bavali. Same thing. So you've got quite a few. Enough people there know it doesn't make sense for me to go to hang out, to pay a ticket to hang out in these groups. But what I'm going to do is I'm going to be smart. I'm. Since it's in Dallas, I'm going to drive up. Let's look at the. It's. It's a day two. It's December 4th and December 5th. Okay, so I'll go rent a hotel room and let's see, where do they say the venue? Where's the venue at? Where's this going? It should tell me. All right, JW Marriott. Okay, so what am I going to do? I'm going to rent a hotel room and I'm going to go, I don't have the rent to the JW Mar. I'm not going to pay through the roof on that. I would go somewhere cheaper. But what I'm going to do, I'm just going to go to the event, I'm going to dress like I belong there and I guarantee wherever the conference is, I'm going to go find the next bar, the local bar right next to it. Okay. Now are they going to probably have a happy hour inside that stuff as well too? But if I look like I belong, I probably could just walk right on in. But no, I'm probably not going to walk right on in. I'm probably just going to go ahead and just plop down at the local, at the bar right next to the location and start reaching out to these people, these attendees and realizing, okay, I'm not going to get anything at Wells Fargo, but I'm going to look for special asset managers at these 40 banks. Now, we already know Hanmi bank, we already found it, reached out to them today. All right, but these banks are all going to be those that pretty much are going to be looking at. And there's 200 people. Okay, so great, I'm going to go hang out more name badge and look like I belong home. Okay. Is that cheating? It might be a little cheating. Am I cheap? I might be a little cheap. I don't want to spend $2,000 a ticket to network when I could do a lesson line. But since it's in Dallas, this is what I'll go do. If it was in California, I wouldn't go fly there to hang out, but it's in my backyard. Okay. And that's the thing I would look at. Let's see here. What can I. Well, let me do anything else here. One second. It's probably the app. Yeah, that's the app. So they've gone away with posting things online. So. But anyway, what I'm trying to get at, ladies and gentlemen, there you go. If you're somewhere near, go hang out. And a local IMMN event. Now let's see what else they have going on here. So that was in Dallas. That's the next week, which I forgot about. Let's look. They usually have another one on the east coast side. See? Search all events. 65 different events. Single Family Winter SFR Global Real Estate form in Toronto. Bank Special Assets, Land and home building Capital markets West. This is on Las Vegas. That's going to be February 2nd and 3rd. Bank special asset seats. There you go. That's event Evansure Florida, March 12th and 13th. Okay. I'll pro. You know, I might fly out for that. Just to hang around the bar, just to look like I know. And seeing who's on there. Let's click on there. Let's see who the attendees are. Banks that attended last year. There you go. Same thing. Optimize. And all I would do is go to these banks and look for special assets. Look for people. American Bank, Special Assets, bank of America, Special Assets. I would literally. That's what I would do. Let's just do this. Let's use. Let's do this. Copy and let's go over to. All right. Can you find. Charge of special assets at Amerit Bank? No. Okay, so that's fine. Same thing. Go Special Assets bank and look for on LinkedIn. Okay. But the whole goal is, is literally just to start that process. You can find contacts. If it's in your backyard, go. They're gonna be valued just to say, hey, I'm a note buyer, been buying for a few years. I'm looking to see if you have anything else on your books you're looking to get rid of. Not a difficult conversation. Hey, are you going to be at Special Assets east or Special Assets West? Let's talk. Love to catch up. All right, so I know what I'll be doing probably Sunday night is starting to make some connections for folks for the following week after Thanksgiving. Okay, so that's a couple events you can go to with that. All right, not hard to do. Let's see if they got speakers on this one already for east. Probably not yet. Oh, they do. Look at that. Got a few of them. Webster Bank. Lunell Siegel. There you go. Director of Asset Management, Kevin Simpson. Angela Moore, Special Assets Department, Valley National Bank. Okay, can we click on her and takes us over to her LinkedIn profile or not? No. There you go. Pronto, baby, pronto. Simple as that. To look at that and then look at also your local statewide Mortgage Bankers Association. You know, some will have an area. If you're from New England, it might be the New England Mortgage Bankers association here in Texas with the Texas mba. California is going to be the California Mortgage Bankers Association. That's another thing to look at. Here's something you can do as well. So if we go to mba, I probably need to type in Mortgage Bankers Association. There we go. There we go. NBA$. Okay, so here you go. If you click on this, same thing, conferences and education conferences and meeting. And just look through here actually there's usually a membership. There we go. Membership. Click on membership. And let's see here. Used to allow us to search on this. They lock the doors on me. You should be able to go see who you're and. And connect with a lot of folks that were on there too. But they've changed that up now. Literally just changed this up. Like member director. Come on. Is it going to give me anything there? No, not going to let me do anything. That's all right. But then, so then look in your local like Texas mba. No, sorry. Texas Mortgage Banking Association. Crazy click in here. Same thing. Secondary conference. When is this? So this is February 6th. So 495. That's not better. That's not too bad. So early bird to be February 23rd. So it's one day, eh? That's Warehouse Conclave. Never mind the conclave. Look at your speakers here too. That's an attorney. National Mortgage, Insurance, Storage Consulting. Prime Lending. Andrew Stringer, Prime Lending. Nolan Turner, Carrington Mortgage Service. There you go. We talked about Carrington. Click on him and find out and go from there. Okay. There usually is. Let's see, sessions. No, one last thing here. They've tweaked this up a little bit. Membership is valuable. Yeah, since it's a couple months, they probably don't all the speakers in there, but literally I could find that one guy at Carrington is worth checking out. Right? It's the one. If you look at these different states you're in. All you need is one connection to get a list of notes sent you that you can follow up with on a regular basis. Okay. That's one of the great things about looking at these different events. So let's see what the events have they got going on. Marriott Austin, Downtown, April 26th, 28th. Yep, I'll go to that. And then they have. Yeah, so let's just see here. April 26, Southern Secondary Marketing Conference. Let's look at the annual convention. So this is the Houston one. So that's what we just talked about. Same thing. Go hang out there in the, in their backyard, you know, on the backyard. Wherever it's at the bar, there's going to be a bar for it. Dress appropriate like you belong and it probably could sneak into the thing. Security on these things are never too tight for the most part. And if they don't go, go get say, get your badge and go back. All right, but that, that's kind of taking your whole business to a whole different level on stuff like that. Okay, let's move on some other different ways to find some different notes for you. Okay. So we talked about mortgage bankers, we talked about the Western Secondary, we talked about imn. There you go. Okay. The other smaller, like I said, the smaller ones, I mean they're gonna have a few folks there, but they're not going to have a lot of resources for you to go find us. They might have a few funds on some stuff there like Revolve or so you know, might have a trader from Essence Servicing. Let me give you a freebie here. If you go to snsc.com you can look and they can get on their list of buyers. Now the problem is you're there. You're going to have to ask that. He's. David, Polio is not going to send you anything until you tell you who you've been coached by. And he's going to have to verify it with me. All right, so this is a great thing, is that they send notes out on a pretty regular basis weekly for you to take a look at whether it's performing or non performing or reperforming, even some REO stuff. Okay. But anyway, that is what it is. Okay. And we'll go through a couple tapes that have come across that some of our students have made some offers on recently. Okay. But let's dive into another website that you can look at. And you know, they've done a pretty good job with the website. They've had it around I guess about. I guess would say about 14 years now. But they haven't refreshed it. And I'm always amazed that as long as it's been around the lack of inventory coming on here. Now this is not my first place to go buy notes. Okay. I've had a few of my students buy notes on here. We usually end up finding out who the seller is and go directly to their list. But there's a couple things on here that are pretty good. So what you want to do is log in here. It's always funny, all these refer. These quotes are from past students of mine, which is always great. All right, hit sign in. You can click on what's for sale here. Now they've. They started putting business loans on here, which I think is watered down the website. Okay. Because I don't want to buy a note on an old BMW. Okay. Or on a business that I have no business in. Okay. But what you can do is go on here and say, okay, we're looking available single assets, first liens and you can pick performing or non performing. Okay. Now what they need to do is go in here and clarify if it's a business asset like a car note or something like that. And then you can also look at property type and you know, there you go. Property value select all. See, business, we don't want business, we want take the business out. All right, and we're going to hit search. That leaves us with 120 listings, which is not a lot. And we'll export to CSV. They're still going to probably give us something wrong here. Okay, now we've got a list. We can hit download CSV. All right, don't convert. All right, let's see here. Clean this up a little bit. And we're going to filter. Okay. So I think you're still looking at the paper stack website. Let me switch on over to the spreadsheet that came in. Okay. So this is the spreadsheet that came in. So you can see what's kind of going on with that. Okay. It gives you the paper stack URL so you can go read the story behind the story, the listing type. All these are single assets. Their pool stuff is such a pain in the ass at the close. It's not worth it. And it's not really any decent pools, not like what we we do. Going direct to the banks, you get so most. But what they do is give you a list date here. Okay. They give you the seller's name, where the seller's name is listed on there and for the love of me, I don't know but they've got like different names on here. Like second chance property investment. That's one of our students. 70 investments. One of our path students. Where is. Oh, I didn't yeah me do this. Sorry. Gna fix something here. We're going to view freeze panes, unfreeze panes. We're going to click there and now we're going to freeze the panes so it's easier. Okay. All right. Fusion, that's Dan Dip and stuff like that. Okay, so now it gives you obviously it's for sale. The list price, negotiation price, make an offer, first position. These should all be first positions. Performing deed of trust, mortgage unpaid principal, balance the interest rate on the note and and then the yield. If they get a payment in there in a true number on the P and I payments, they'll give you a yield basis on this. This one I believe is the one out in Garland, Texas. Yeah. This is not. This is a auto loan. Why they didn't put that in there, I don't know. I hate it. All right, so they don't do a very good job looking at their website making sure that it's the right stuff. Then you've had stuff in here that don't make any sense too like a yield. So what I like to do, you see the address for the property, single family, get a lot of land ups. They give the monthly P&I payments, the ISRA totally monthly payment, last payment received, next payment due, maturity dates. It's a judicial, non judicial. Yes, yes. His hardest hit funds. I don't know why they have that in there. Hardest hit funds used to be something in the government program back Obama did in helping those that the 18 hardest hit states plus the District of Columbia who had the most amount of defaults and put all this millions and billions of dollars into these programs. Well, all that money's been spent for a long time ago. Okay. So if I was anybody, what I would do is I would go over here if I was looking to buy my first note. Pretty simple. I would just go ahead and custom sort it by yield, Highest, the large, largest to smallest. Right. And there you go. Now you're gonna have a bunch of NAs in here. Why they don't have the prices in there, I don't know. But the yield. N A, N A. Now you're getting down here, you're starting to see some prices now if I remember correctly. I think Judy, you're working on this one right here. It's yeah. So this one I know is. Is back and forth. It should be locked up any minute now. But can you look at some of the stuff? It makes me so. Yeah, like, let's say so if you're using other people's money. Somebody asked about that. I'm looking for performing notes that I can use other people's money for. So let's change this all to performing. Okay. And anything at a 16 yield. All right. Now the thing is too, you see occupancy rate. Vacant, vacant, vacant, vacant. A lot of these vacant, they're raw land. And there's nothing with raw land if they have like a five year maturity on it. Okay. If they get paid off, there's a balloon on it. Yeah. Some of these mature like 7 years, 7 years, 10 years, 4 years, 15 years. And raw land does appreciate slower than normal in the first two years. But usually after year three and above, you see quite a bit of appreciation in a lot of cases. But the number one cardinal rule. Here's the thing, number one cardinal rule about buying any type of note, never buy a note you don't want to end up with. The asset is if. So if you don't like where the land is, it's not in a state you desire, in an area you desire, don't buy the damn note. Okay? I don't mind owning land up in Texas, like Amarillo, Panhandle, stuff like that, where it's near a major city or within 30 to 40 minutes of a major city. But if it's out in the middle of West Texas, out in the middle, past, way past Odessa, past where Landman and Billy Bob Thornton film there, that series down there where is just desert and tumbleweeds. It's not worth pursuing. Okay, but let's look at here. Let's say. So you got performing notes, all right? And let's look at over where some of these aren't. Let's. We want to look for occupied. If you're wanting to do something, look at occupied, not land. Nope, not commercial. We'll hit. Okay, Single family, single, multifamily, condo. Okay, great. We'll look at some of this stuff. Now. These are all performing now. Okay. And they've all got addresses now. We're. Now we're starting to cook with Crisco over here. Okay. Some of these yields up here could be pretty like this one's already at a 12% interest. They're firm on their offer at 13.9. Oh, this is a partial sale, if I remember correct. The unpaid balance is 13,4 they're trying to sell this off as a partial. No, I don't want to deal with the partial. I want the whole damn note. Okay. All right. So like this one, their interest rates at 8 unpaid principal is at 17. They don't give us a property value. Original balances, total payoff is 47. It was originated 15 years ago. Oh, there it's in bankruptcy, so it might be paying. It's in Taurus, Pennsylvania. I have no idea where Taurus, Pennsylvania is. Okay, well, one thing we also want to do when we look at P and I payments. Okay. When you start looking at stuff you really don't want to be in, anything below $250 a month, it's hard to make money if it's a performing note because you're going to pay probably 25 to 35 dollars a month in servicing. Okay. So anything below 250 you probably want to delete off your list. Yeah, see $0 12, 249. Don't really want to waste my time with those. How is it a zero payment in Phoenix, Arizona? They didn't put the payment in there, so. Oh, it's 5:20. I don't waste my time with those either. Okay, so we're just going to get. You're going to slowly. When you get a tape in, and this is one you can cherry pick. But when you start getting tapes in and so we call this spreadsheet, it's a tape. Then you're going to start slicing and dicing. Start looking at stuff that you want to buy and other things you don't want to buy. Okay, so let's go back in here. Total. Select, all now. Okay, now we narrowed it down to 113 from 120. We got rid of a few. Okay, now we want to get rid of states we don't want to invest in. All right, let's look at the state list. All right, we definitely want to get rid of New York, New Jersey. We don't waste our time with West Virginia is usually too rural. I'm not a fan of Illinois, no offense. If it's in Cook county, it's a dead Kentucky. You need an extra bond there. Maryland just required you to be a licensed mortgage broker there just recently. So we're going to get rid of those. Okay, so now we've got some stuff in Texas, a lot of Texas stuff. I'm still willing to bet some of this stuff. Like this 17 pre frio states in Moore, Texas. That's probably a mobile home on land. Okay, All Right. And now we've narrowed it down to stuff between eight, you know, this NAS up here down to about a 10% return. Well, let's just look at something at. Let's just do this. 14.98. Okay. On paper balance 149. They want 110 for it. EMC. I'm going to highlight this here for you. Okay. All right, so let's first and see what they say about the deal. All right, so here's what paper stack is saying. Foreign 1344 square foot on 1.3 acres. It's a mobile home. You can see it's about a 14.9% yield in a rural location that conforms well with the surrounding area of homes. And his offers privacy and room for animals. Okay, so are they trying to sell it? So one thing you look at, they've started to try to sell pre originated loans. I don't want to buy a brand new loan. Okay. I want to buy something especially it's owner finance like this looks like it is. I want something with 12 months of seasoning. All right, so let's see here. Last week we received October 11th. Okay, fine. Originated date August 11th. So they just originated this three months ago. Not even three months. Okay. Yeah, not too big a fan. Caldwell, Texas. Okay. 860 Berry Creek Dr. Let's look at, let's see if we can pull this up in Zillow. Problem. Oh, there we go. Something red. Fine. That's what it used to look like. Let's just go into the green, see if we can see aerial view of it. Not really. There's a mobile home right there, I think. Who knows? Not desirable. But for the sake of learning, let's do some learning here, shall we? All right, going back here. Okay, so they want one. It's about a 15% yield. 14.9% yield to the investor. Okay, now if we go back to the spreadsheet. Let's do that. All right, they're firm on this. They don't want to let anything go less than 110. Okay, fine. They want anything less than 110. Okay, so let's run some numbers. $110,000 purchase price. Right? It's the balance was what, 149, right? 149. 6. And the monthly P and I payment on this one, It's a 15 year loan. Okay, P and I payments, 15, 21amonth. All right, now we figure 12 months is equal to that times 12 months, one year. P and I. All right, let's make so you can kind of see what I'm talking about here? And this is an 18. This is an 15 year mortgage and its fair market value is 190,000. That's what I saw. All right, so this could make sense if you don't mind. Holding in Caldwell County. Total payoff 149, 6. They say it's worth 193. 5. Okay, it could be worth 193 5. Let's see. Hang on. Just for the hex. So I have an idea. Let's go. Directions from where I'm at in Austin, Texas, y'. All. So you see, it's out here east of Austin, So Somerville, north of Brennan. Oh, so it's, it's over by College Station. Okay, so it's about a 20 minute drive from College Station. Okay, let's do this. Let's do Texas A and M University. It's a 30 minute drive. Okay, so you're right next to the Chili Fest music festival by the Texas A and M University farm. Okay. That may not be so bad. Okay. Not too far from where you need to be. Okay. If you're an A and M. All right. If you like a M. Okay, so that's one, three. It's a fair market value. All right, so let's do this. So currently this is at. Your buying at is equal to that divided by the balance. You're buying it 73. That's the PER. That's a purchase price, percentage, UPB percentage, or it's also at is equal to the 110 divided by the 193, 000 fair market value. So 57 cents on the dollar of fair market value. Okay, sorry, let me go back here. Thank you. You're seeing the website. There's kind of how far it was from A. M. Let's go back here to this spreadsheet that we're working through. So what I'm just going to do is, is working general numbers for you. Okay. So it's bringing in a 15 yield. Okay. Right. And so if we do this in a year, is equal to that divided by our purchase price of 110,000. Let's bring in actually technically about a 16.5, 16.6 yield based on the annual numbers. Now that's not including our servicing costs. So if we figure in, let's just say 25 times 12 is $300 a month. That's going to be our annual servicing. Okay. So our net cash flow is going to be. Is equal to 18.25 minus this net cash flow. And that is equal to 17,9 divided by. Because you have to figure in your servicing costs. There are people out there teaching note vesting that you don't figure in your servicing costs. And your yield, of course you have to. Okay, so that is about 16. That's not bad, right? 16% yield. Now let's say you're going to borrow $110,000. Okay? So you know, let's do this. Let's say you're borrowing 110,000 at 8%. And that's going to be 8% money, money cost. This is going to be 10% money cost. And this will be 12% money cost. Right. So is it 8? This is going to equal to 110, 10. And this is going to be. And if we divide this numbers by 12, we'll get our monthly. Okay. All right, so now this is what your monthly. This is what your money partner. That's what I love about no business. You can create money and cash flow out of air. So if it's bringing in 15, 21p and I payment, okay, so then your cash flow, That's going to be equal to. Actually, let's do this. It's going to be. You take your servicing off of this. Let's do this. Divide that by 12. All right, so then you take your net after your servicing cost, which would be 1496amonth minus your money cost, 733. So it's going to be 762amonth. Same thing. Let's take our 1496 after servicing minus our 9. 1667. There you go. Same thing. 1496 minus our 1100. So that's your monthly cash flow to you after paying your money partner. Right. Now remember, 149600 is the UPB as it sits right now. Now what? It's on a 15 year mortgage. Okay. Now the interest rate, we didn't see what the interest rate was on it, did we? I know he says it on here, but I didn't look at it. It is. What's it written at? 9% interest rate. Okay. Okay, so now let's do something. Let me show you something. So they basically, if we go over here, let's do an amortization table. Just to give you a bit of an idea, amortization schedule. And what we'll do is this is a pretty simple amount. We're just going to fill in the numbers. All right, so our numbers are he financed how much to begin with, so we know exactly what it is. So 150,000. So 150,000 15 year term, 9% interest rate. And this is August of 20, 25, 15, 21amonth. There you go. Number payments. Okay, so let's see. There you go. Now let's look at. Where's our, where's our, our. I want to see the schedule. Where's the schedule? I just had the dang thing up here. Schedule. Here we go. All right, so if we look at these, so remember we borrowed 110. So part of looking at this amortization schedule is to find out how long are we going to be able to keep our money partner in the game at 110,000. And that's the thing. You have the 149 going down till it hits 110. Where does that hit? How long can we hold this before either a have to give the whole thing to our money partner or sell the note off or hope that the guy refinances? Okay, so if we look at 25, 26. Let's see, you can see the remaining balance. So down to 110 here is in 2031. So five years. Okay, five years. Let's do this. Let's do plus. So it's going to hit 100. Here we go, 110. So by December of 2031. So we got five years. Really? Okay, so five years before we sell it off. I'll just say we sell it off, we give it back to our investor. At 110 they get the write down. So at 110, 287. So that's November. That's right from now, that's six years. Okay, you see, you guys understand that? 110, 287. Because we're paying our money partners interest only. Okay? Just interest only. All right, so let's go back to our spreadsheet here. So if we get six years, let's multiply this times six years. Actually, let's just do it five years. Five years. Let's say. All right, five years, cash flow is equal to that number times 60 months. So this deal could make us in the next five years anywhere. Yeah, from 23,000 if we're paying somebody a 12% interest to 45,007 60. Now what's going to happen the next five years? And take a guess. The property is going to appreciate, right? Okay. Yeah. It's not way out west Texas, but depending where it's at, the 1.3 acres, it's an hour from here. Maybe it's worth. It's in the wooded area. It's in the woody woods of central Texas. Basically, okay, could I slap another mobile home? I could if I want to. That's not what I want to. But this value of 193 is going to go up, right? So let's say something happens. Let's say after four years. Let's go back here. What's our balance after four years? So four years is going to be 2029. So number November 29, 125-483-125. We'll just say 125, 500. Okay, that's your four year balance. We know the value is going to be higher than that. We figure 4% appreciation and probably closer to 225. He's going to have 100 grand in appreciation there. Right? So let's Change this to four years of cash flow. Let's just add four years of cash flow is equal to that times 48. Okay, so they come in four years and say, hey Scott, we want to refinance that. Okay, Your payoff is 125 5. Okay, so what does he do? He pays you 125 5. You take away your, what, your $110,000 purchase price. Well, you borrowed from your money partner and that leaves you with how much of a difference Whoops. Is equal to that minus that is entered. So you paid your money back, partner back their 110,000. You just made 15,000 the refi plus your 4 years of cash flow. So this could be equal to anywhere from that. Is equal to that plus. Equal to anywhere. This list plus this. There you go, light bulb. So paying somebody 8 to 12%, it's great. If you get 8%, even better, you're making 52 grand. If you're paying 12, yes. Over four years you're going to make 34 grand, 19 grand in cash in four years plus $15,000 difference on the payoff between what they owe and what, what you borrowed and what they owe. So on something like this, this one note, if you divide this by four years, Can add additional 13 grand or 8 grand to your bottom line per year. Now how many notes do you need to to build a 100 grand a year income of cash flow in? Well, that's pretty easy. 100,000. Is equal to that divided by that. So you need anywhere from 7 to 8 to 12 notes on something like this to start generating 100 a year. 100 grand a year income on cash flow. Now, some of it is on the front end, some of it is going to be on the back. And when they refinance out. Now my buddy Chris Prefontaine likes to talk about a 3 payday system. When he's originating owner finance notes. You get paid with a down payment, you get monthly cash flow, and then you get the principal right down the back end. Three pay days. This is two pay days cash flow back in. Now, if it was a non performing note, let's say the note was 149,000 non performing and we paid 110,000 for it and got them back on track. They brought five grand to the table. They brought, you know, four months of payments to the table. That down payment or that skin in the game, as I say, work it out. That's a payday. That's a cha Ching moment. I like to call them cha chings. Cha cha, cha ching on the down payment, reinstatement, cha ching on the monthly cash flow, cha ching on the payoff, settlement, whatever aspect of things. Now this bar doesn't look like they put much of anything down. That's what I don't like. I don't like. It's only three months of servicing. That's what I don't like. I'd want to make sure it's within RML license, rml. Making sure it's a Dodd Frank compliant loan, that if I do need to sell it later on I'm doing well. Questions? Comments, concerns? Of course, that goes to five years. It's going to be a little bit more obviously, another nine grand in there. Okay. Another seven grand, another four grand. Okay. This is what we look at notes. Okay? Now the question is, what's the big question for you? How do I find that $110,000? Right. How do I raise 110,000? Here's what I want you to think back differently about. Okay? Think differently this way. Not that I have to go borrow and beg money to find 110,000, but where can I offer somebody an 8 to 12% return on a 60% fair to market value deal if they don't? If they don't pay, it's foreclosed in Texas fast. We just now own $193,000 asset for 105, 115. You know, when you figure in taxes and foreclosure costs, you've got to pay the back tax and stuff like that. Taxes are paid. Okay. Really? Probably closer to 113 question from somebody here. Awesome. Let's see. So Judy, Judy asked a great question. What happens when you hit the 110 mark and have to pay back the lender? Well, remember, that's why we looked at four years versus five years, five years, we're getting closer to that 110. So in year four, you just simply say, hey, do you want to take over this loan? The balance is coming down. Do you want to take the whole thing and take it from there? You know, that's also where you might incentivize the seller to refinance before then. Okay. If rates come down, if they don't want to say, then you go find somebody else, you go cash them out. Okay. Because then you're making a pretty good return on it as well. At 16%. Yeah, we put a, one of the things we put in our things is a clause and they're, if they want to refinance and take the whole deal, they can, they're just going to pay me out of my profit, whatever I lose in profit. Because here's the thing to look at. Hey, would you like to start making roughly a 15% return on your money? Right. How would you like to go making from 8 to 15 or 8 to 12, whatever it might be you get? I'm saying, what are they going to say? Yeah, that'd be great. Well then, guess what, I'm going to turn this note over. You're going to hold the note by yourself, not split the profits. It's going to be with the same servicing company. I'm just going to step away and they have the whole thing for the next 10 years. Okay. If an investor came to you that you were lending money to at 8 and said, hey, would you, how would you like to make 14 and hold an asset for a few more years, what would you say? No. No response. It'd be like, yes, no. But this is why we look at, it's why you have to look at the amortization table. 15. Now this is a 30 year mortgage. It wouldn't get as close. It'd take longer than five years. It'd probably take 10 years. But since this is a 15 year mortgage, obviously that time is sped up in 50% faster. So instead of 10 years hitting that market, it's going to hit five years. So that's why we plan and look at it, say, okay, I need to be out of the deal in four years and start marketing the note for sale in year four to somebody else, either to a hedge fund. And there are mortgage bankers out there that we trade stuff to that want stuff at an 8% return or higher. So if we sell them a note at 110 and they're going to get 15% return or give or take a little bit less than that because it's a third of the way through the interest, they're happy with it. You turn around and offer that note for sale to fnac. And that's another thing I meant to share with you guys. I wouldn't necessarily like take a brand new note off a paper stack and go try to market it to them. But there's a couple sellers out there or buyers of notes that buy a lot of owner finance notes that'll give you a pretty decent, a decent return on it. Okay, First National Acceptance Corporation is one of those companies. Okay. And you can literally submit a fast quote to them, submitted all the information in and see what kind of bid they'll give you on the note. All right. Now if it's got like a note like this, if it's a, it's got four years of payment history on it, it's been on time, it's worth over 200, you're at 110. They're probably going to offer pretty much if not close to the whole thing. Okay, 110, 115, whatever, stuff like that. So maybe you do it for three years and market it after two. You get what I'm saying? Just it's running by them but they're at a pretty secure spot. That's one. First National Separation is another one. We've got a couple others that offer a little bit better. If you're a coaching student like you Judy are, you get the, it will give you the contact to them. We just don't give them willy nilly out. Okay, but one thing, you guys all can do one thing. You can all go to your website like we have. We close notes.com and if you just go to the vendors tab up here, what we've done is gone in and create a, let's see, sell your note here, click on sell your note. And that gives people to fill out all their information on their note. And when they fill out all their information it comes in an email. We can forward that over to any of our note sellers and see if they're interested in buying that note. Just brokering it up, making two or three grand for brokering the trade. Even as broken our own note, we just put it a simple tab to a jotform. So you know, here. And not all these are up to date. We've got to update a few of these links yet. Like people can order a BPO here, they can order an O and E. Collateral view. We've got a new one with opening your Sera here. Skip tracing. We've got a whole bunch of things we've been updating with links. Okay. But that's an opportunity all of you could do. You say, sell your note here, just make it fill out. Go back and fill out the form that they require. All right, Get. Get a fast quote. Boom. I had a little bit more information because there's more questions to it, but that's, you know, pretty easy jot form to fill out to give you all the information you needed to help you sell that note or broker it. Okay. All right. Makes sense. Great stuff. Let's take a short break, everybody. Let's come back at half past the hour.