The Note Closers Show: Making America Great Again…One Podcast Episode at a Time

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

Good morning, good afternoon, good evening everybody. This is Scott Carson. I am your host of the Note Closer Show. As always, excited to be here. We have a very special guest today who is joining us all the way from California, one of our good friends and students out there who is doing some amazing things with their own note business. And I'm always excited to have this guy around because his energy is always great, he's always got a positive attitude and he is working diligently on his plan to financial freedom with his wife and his two kids that are growing up like bad weeds, as he likes to say. Right. Our good buddy Pari. So Pari, good morning. Thanks for joining us from California. You're up in the Bay Area, correct?

That's right. Morning Scott. It's my pleasure.

Oh, glad to have you, man. And let's get for those that don't know who you are, tell me about your background. What are you doing? Are you still working? How do you get kind of interested in notes?

Well, I do have a full time job, you know, and I just picked up the note business on the sites because I wanted to get out of the rental business. You know, there was always a turnover of tenants, you know, almost every single year for one property or the other that I was or we were managing here in the Bay Area. So was researching online and trying to find out, you know, how I could stay within the real estate business but not in rentals. You know, that's how I got to know about the note business. You know, I did some research, got into that, you know, and I attended your fast track training back then, you know. And also when you were here in California at Napa. That was good.

Thank you. One of the masterminds in Napa, there's pretty nice. And you live in the Bay Area, right? Where exactly the Bay Area do you live?

That's right. I live in Fremont, California.

Cool. And you're working a full time job which tell everybody out there what you do full time.

I'm a network engineer, you know, building up the Internet circuits and stuff like that, wired, wireless, you know, for my company and.

Yeah, and great things I love is that you take action. You've taken action. I mean actually before you, you took the class, maybe between the class, the time that you came to the fast track, training, stuff like that, you actually bought some notes. You went out and bought some performance stuff because that's the stuff that you like. You don't want to be, you don't want to be a landlord. Like you said you were tired of the headaches of toilets, tenants and trash outs, right?

That's right.

And so what were your first couple deals that you bought?

The first one that I bought was in Michigan. You know, that note was refinanced or the guy, you know, sold the property, I should say early this year and that gave me like 16% return just on the principal without including the interest, you know, so that was a steep discount that I got because it was a sub performing. The reason I picked that was he had enough equity on the deal so I knew that he's not going anywhere, you know, he is going to pay. So that was a good one.

So there was a. No, you bought owner occupied, is that correct?

That's right.

And you bought it at a discount. But it was a performing note.

It was a sub performing note. Yeah, he would pay one month or you know, after 60 days he would, he would send a big chunk of money.

What are the, let's talk about the numbers on that. What did you pay for it?

Do you know?

Remember I paid somewhere around 12,000 and change or something like that.

Okay.

And you know what, he owed 16%.

More than that, you know.

Okay, all right.

So 16% more is around 15, 16 grand then.

Yeah.

Okay.

And he was paying hit miss. But then he just basically refinanced you out or sold the property.

He sold the property. You know, I was monitoring that on Zillow so I would exactly know when he put that on sale, you know, so I know the money was coming. I was a little nervous, you know, because that was the first deal, you know, it was a sub performing note, you know, so. But I did all my due diligence and I was tracking that, you know, offline as well.

Good.

And basically you had a servicer that was reaching out and basically one day you find out you get a deposit in your account from your servicing company, correct?

That's right. Yeah, I went with Allied on that one to keep the cost low because it's a small amount. So I didn't want it to pay much with the big boys. So it was good.

That's good. Now you had just one recently paid off just the other day, maybe a Week ago. That was a pretty good chunk of change. Let's talk about that deal. Because I like.

All right. I'm excited as well.

It's for a very good Christmas. Happy New Year. Right? Yeah.

That was a good way to finish the year, actually, you know, Well, I bought this from Joel Markovich from JH.

Mortgage, now, the law office of Daniel Singer.

That's right. And I know that you had told us a thousand times on the Facebook event or the fast track event that an IRS lead can be removed. You don't worry about that. I've heard you say that a thousand times. But, you know, I was still not confident because I have not done it myself.

Right.

Okay. That's understandable. Yeah.

I knew I can. It can be taken off, but, you know, I was just confident because I haven't done it. It's just another individual's perception. Right. Some people are confident just by hearing things and then doing it. But for me, I wanted to do it so I will feel confident, you know, So I don't know if even Joel remembers this. After I bought it, I asked him, hey, you think you can remove this irs? So you all know Joel, right? So he was so calm and he said, worry. Don't worry about that. You know, that can be removed.

Yeah.

First thing first, let's. Let's get all the docs, you know, done for you so that the loan is transferred to us. And then we'll go one step at a time.

Right.

Let's go through the numbers on this so we give a good foundation. So how much was owed was the UPB?

UPB was 90,000 and change.

Okay.

And they hadn't paid in how long?

They haven't paid for three and a half years.

Okay, where was it located?

It was in Flores and Missouri.

Okay.

Florence. The Florence, Missouri Florissant.

All right.

And I bought it for 50 grands.

What was the value of the property at that time?

The value of the property was 90 grands.

90 grand. Okay, great. So $90,000 proper, they owed 90 grand, plus three years of back payments you picked up for 50.

So by 50, there was this IRS lien for 30 grands or so.

Okay.

And a state tax lien for another 10, 15 grands or something like that.

Okay.

And sewage lien for 1600.

Okay.

So I know that. That the state tax lien and the IRS lien can be removed. You know, so was okay with that. And then we went with Polaris, you know, for door knocking and borrowed Richard. And the lady doesn't want it to Pay.

Okay, so just those that don't know Polaris is a company out of California. They are not a servicing company. They are not a debt collector. They're a nonprofit. Nonprofit company. Basically, it works on behalf of us as investors trying to reach out to the borrowers to get them to make some sort of right party contact or make a decision. Now the fact that they're not debt collectors allows them to contact people basically the day you fund, which is really beautiful. You know, they're just basically, hey, what. What's going on? Do you want to stay? Do you want to go? What's the situation? We're here to try to help out a resolution. So they do that very quickly. And how soon do they talk to the bar on this one?

You remember, the guy went out almost the second week. He said he had already started the paperworks. He sends out like two or three letters.

And then they got the phone too, right.

And they also talked to the servicer to make sure that, you know, if the borrower calls back, you know, everything aligns.

Right.

And so they said they didn't want.

To pay, she didn't want it to pay. And that's when I reached out to the. To the. No closest crew and asked if someone was in St. Louis, you know, and one of our friend, you know, he replied back saying, hey, Pauli, you know, I'm there. I'll be visiting my father in law down there in St. Louis. I can drive by.

Who is the guy?

Ken.

Ken Sparrow?

Yeah.

Yeah, Ken's a good guy. Ken's a mastermind. So just closed on his first couple notes a couple weeks ago as well. And an active realtor in the area. And you use the mastermind crew to really go out and take a look at it. Now, what did Kent find out?

He said the lawn is mowed and people are there. You know, he spoke to the neighbors and they said that, you know, they have taken care of the house really good, you know, so I knew that maybe she is not going, and I thought maybe she would reinstate.

Right.

So. And then we started the foreclosure process and everything. And then before it went to, you know, sail, you know, I got a letter saying that, you know, she wanted to reinstate. I said, fine, but we are not stopping the foreclosure process, you know, so we went ahead with that. And she was just trying to play the, you know, play a game or something, you know, that.

Right.

To stall the process. But, you know, we went ahead and foreclosed it and I had a Local realtor, go there, take some pictures. And the house was a trash. Yeah, she just left a lot of stuff and we didn't want her to do the rehab, you know, so.

Question for you. I don't mean interrupt you. Let's talk about that. Because a lot of people, there's two types of trash that look at things. One is they punch holes in the walls, they rip crap out, you know, that, you know, concrete down the toilet. That's. That's the extreme side of things. Second thing is they just leave a lot of shit or they leave trash, you know, leave stuff in the, in the refrigerator and then don't do anything with that. That's the second aspect of it. So where did it kind of fall in that in those two phases?

It was the second aspect of it. You know, when I looked at the kitchen, you know, the cabinets were really in good shape. They're old. But, you know, she had maintained it really well. It was just trash lying around everywhere.

Okay, so was. It wasn't, it was just, it was filthy. Outdated, basically, is what you're.

Outdated. Okay.

Yeah, and you're right. A lot of people don't get a little concerned about that. But outdated isn't that bad. I'll take them leaving trash around because it's, you know, ten, you know, a thousand, fifteen hundred bucks to do a clean out. And you're sitting at a lot better place than you would if you left the trash in there.

Right, right. So that is when I got into the nitty details of the property and the neighborhood, you know, so I was trying to sell this, price it right so I can sell it out, get out really quick.

Right.

At that time, I noticed that in that street, my house was the biggest in size. You know, our experience with that had never been good.

Yeah.

You know, back in Milwaukee, we had another rental property on that particular street. If you look at it, that was the biggest house. It just happened, you know, I didn't, I didn't look at it when I bought the asset. You know, it just happened after the fact that, you know, when I wanted to sell, I was looking at all the numbers, you know, so, yeah, we, at that time, yeah, we wanted to take the trash out. So I posted an ad on Thumbtack to get some contractors out there and clean the property. You know, there was one lady, she said she's been doing this business for about like 18 to 20 years or so, and she knew the business very well and she took really good care of it. You know, for $800, she even fixed a fence, which was not on the project scope, you know, so that was really good. And once that was done, that is when, you know, we started doing Facebook ads for people who are in that neighborhood living in apartments. And we also posted it on a lot of Facebook groups in St. Louis.

Nice. So you didn't go the traditional aspect of listern mls?

I did.

Oh, you did that okay. As well, too.

Okay.

Yeah. While they were cleaning and doing stuff, this was, you know, had already started.

Okay, that's great. It's smart. A lot of people don't think about that of assisting their realtors in finding a buyer. For a lot of times, a listed. There's nothing wrong with making sure you get a realtor to do it. But you were like, hey, I want to get this done right. So let's go back through that. You listed it. You ran some custom Facebook ads for people that live there in the area. Is that correct?

That's right. People living in the apartments and are from 25 to 65 years of age and who are renters, you know, and. Yeah, the one thing I did not target was homeowners.

I wouldn't. Because you're trying. They have a home. Usually you don't want to sell it to them, but that's. Reach out to any of the meetup groups, the real estate investment clubs as well.

No, I did not post it on the meetup groups. Those guys were the one who were running some of the Facebook groups in the neighborhood. So I just sent it out to them.

That makes sense.

Okay.

And then again, we still have the IRS lien on it. Right. So I called Daniel one day and asked him, hey, you know, we still have this IRS lien on this. You know, how can we get it removed? So he said. He gave me a very valuable tip. He said, take it to escrow and it is much faster. So that is exactly what we did, you know, so we took it to escrow and we had the title company, you know, send a letter to the irs and they removed it. The state tax lien was removed, and the only thing left was the sewage lien. Sixteen hundred dollars? Yeah. I negotiated to 1500. That is the best I could do. You know, I'm happy with that. You know, so the state.

The state lien was not a property tax lien. It was like a income tax lien. State lie.

Income tax liens. That's right.

I just want to make sure to clarify that people aren't getting viewed because it's an income tax that follows the person you just had to show the state that the borrower wasn't getting any money from the sale. The original borrower wasn't getting any money from the sale. Same thing for the irs, correct?

That's right, yeah.

And so what'd you get it under contract for, how you went to escrow? You obviously had a buyer. Then. What were they going to pay for it?

Well, we listed it for 95, got an offer at 92.

Okay.

I said, I'll take it. It's no brainer, right?

No, no brainer at all. Exactly. And so how long did it take it to close?

It took almost one year for us.

Well, from start to finish, Right?

From start to finish. Sorry.

When it went to escrow, how long did it take? I was like, well, that's gonna be a long escrow. When somebody took it under contract at 92, how long did it take them to close? What, 30, 45 days?

45 days. Okay. Little less than 45 days is what I would say.

Okay.

And what did you end up netting after closing costs and liens and stuff like that?

Well, we bought it at 50, and the cleanup, foreclosure cost, everything turned out to like, 56 or something.

Sounds about right.

Yeah. And we listed it at 92. We had to pay the property tax that year. We net at, like, 82 on that.

Okay, so you made 26 grand, basically, on your $56,000 investment.

That's right.

In 12 months.

In 12 months.

So just what about a 45% ROI on your money then, huh?

That's right.

That doesn't suck.

That doesn't suck. I'm very happy with that.

Yeah.

Did you use your own money, or do you have JV money involved?

I did my own. We used our funds for this deal.

Okay.

There you go. Wife was pretty happy, huh?

Oh, she got a good Christmas present, so she can't complain. It was right on time, you know, so we closed the deal, and it was Christmas, you know, I said, hey, you know, buy whatever you want.

That's awesome. What did she end up getting? A car.

Attaching the list.

Well, I guess if you have questions for Pari, now's the time to ask them. And if you're listening on Facebook live or watching Facebook Live, feel free to listen to those. If you guys are watching this on itunes or Stitcher, you can always catch the full video and other things involved with it by going to our blog@weclosenotes.com blog as well. So get quite a few people watching this right now. You were a landlord. You Liked passive income.

Right.

But you don't like the work and all the headaches that came with being a landlord, correct?

That's right. So when tenants moved out, you know, we would take the kids, drive from Fremont all the way to Santa Clara, you know, we would do the touch up painting, clean the house just like any other, you know, first time home buyers. You know, because we lived in that property, we converted it to a rental. So there was a lot of emotions involved in that asset. You know, we didn't want it to do that. We didn't want it to go clean the house.

Right.

We didn't want it to do the touch up painting. We didn't want it to do any of the fixtures that needs to be fixed. You know, we had cleaners come do the cleaning. But still, you know, I would like to go, you know, we had a marble in that house, so I would do the coating on top of it, you know, trying to keep it clean. But yeah, that is what we wanted to get out of, you know, especially, you know, taking the kids down there, me and my wife doing all the work, you know, that was not working out.

Yeah, that's the most effective use of your time after a while. Especially now if you're buying properties. San Antonio and Milwaukee and Michigan and other areas across the country and Missouri as well. Right, right. So how many notes you bought so far? How many notes have you bought so far?

I had six, 14 and two of them are sold. So right now I have 12 in my books.

Okay, cool.

And you're still working 40 hours a week though, right?

That's right.

But now what's your ultimate goal, Pari? Is it to leave to do this stuff to help you retire faster, get out of your job?

Well, I wanted to start my own fund in 2019. I still have a long time to go, but next year I wanted to get my ducks in a row and do that and probably hire a virtual assistant or any other person either here in California or within the US to do the back end office work for us. So that's the goal for me and my wife.

Good.

And what's your wife do?

She's a realtor at Keller Williams.

Okay, cool.

That's awesome. So that's, that's great. You've got a network of realtors you can reach out to and pulling values and stuff like that.

And now it's easy, now it's a.

Little bit easier for you on that stuff as well. You bought. We were talking before the beginning of this about how you bought a Note from a hard money lender. Let's talk about that deal. Because I think a lot of people forget that hard money lenders will often have notes on their portfolio that maybe they can get rid of. I know we've bought, I bought quite a few loans from hard money lenders that were first liens. But why don't we talk about that situation? Is that all right?

Yeah, sure. So that was the time that we wanted to get out of the rental business. Right. So what we did was we had two rental properties here in California and I was getting, well, including all four that we had, we were getting somewhere around thousand dollars, little shy of that. Thousand dollars, you know, four properties, thousand dollars. That's not really a good return for us. So what we did was we sold the California rental properties and converted them to a note. What we did was we reached out to a hard money lender and said, hey, we like this asset, you know, we'll go buy it. The property was worth somewhere around 450 or 460. And the guy wanted 265 for the first mortgage at 10% interest only for, for one year. So we bought that asset and it was giving us $220 $500 a month, you know, which was pretty good.

So you bought the note? That's right.

We didn't, we didn't put additional money. It was just the funds that we got from the rental. So the moment we converted our rental properties to a note from little under thousand dollars, our cash flow increased to $2,500 a month. That doesn't sound eye opener. Yeah, why haven't I not done this before?

You used a hard money lender to create the loan.

They are here in Northern California. They originate the loan and sell the trust deeds right away. The sell the notes right away. That is what they do, you know. So we bought it from there.

Okay, cool.

And it's turn off. You've kept it for over a year or are you keeping it longer?

It is. It's due this April, so we have time on that.

Good. Yeah.

You got a few more months.

Yeah. If they wanted to refinance, you know, I'm okay with that. I'll just recycle the process and be in the paper business right now.

What is owed on that loan? You bought it for 265, but what's owed on the note?

It was 265.

So you paid par for it.

That's right.

Right.

But there was equity in the property though, right?

Exactly.

Okay.

If he misses, I go for the property?

Yeah.

It's basically what, 30, 35% equity in the deal?

Yeah, 460. I paid 250 properties, but.

450.

460.

Yep.

We got some questions from some people. So let me go through here real fast here. So Nicole says, yep, if you've got any questions, you check out. Awesome. We'll cover. Cedric asks, how is Polaris different from the special service light Singer? We'll get to that in a second. Let's see here. Steve Burke, is this better than wholesaling real estate?

Yes.

No. Businesses is a lot better than wholesaling. Wholesaling, you're making a quick transaction fee and that's about it. You got to go. Keep finding your next deal. Note. Investing is so much easier. Well, it's not. I won't say it's easier, but it's a lot more profitable because you can use other people's money to fund the purchases. You're getting great cash flow and great profits on the back end, like on several scenarios that Pari has discussed here. Hi, Sarah Boyd. Good morning. Sarah Boyd, Tolvana. She's actually out of your neck of the woods up in. Not too far from you there. She's a student in there. So she's on Facebook. Yes. Hey, Sarah, Good to see you. Let's see here. I'm watching, going through here. Good morning, everybody. She lives in. She lives in helotus.

All right.

Okay.

Let's see here. Okay, so let's go back here. So Cedric asked a question. How's Polaris different from a special servicer like the Singer logger? Okay, so Daniel Singer is an attorney.

Okay.

They're an attorney. They handle special servicing. They do more on the special servicing side than Polaris does. Polaris will do literally 90 day contracts. They want to do on the front end. Get your right party, contact the bargain estate, bargain to go. They'll help you kind of create a modification, but after 90 days of not having lunch, they're just going to push it off their books and give it back to you so that they can either start the foreclosure. Polaris is not going to handle the foreclosure. They're going to help you with the right party contact and modifications, reinstatements, beat and lose on the front end. That's about it.

Okay.

Daniel Singer, the Singer Law Group, their attorney, they're also have a branch of the home servicing as well in house. Now, they're going to help you with the foreclosure. They're going to help you long term. And stuff like that. They'll still do borrower reach out for you a little bit cheaper than Polaris does, but they handle the whole process, start to finish. So it just depends on what you want. Now, the law office of Daniel Singer, they're not going to really start on anything until two to three weeks, until the goodbye letters are at least mailed out. And so that's the difference. If you want to get really big start, you go to the Polaris right off the bat, you may have a resolution in two, three weeks. It's gonna be a lot faster than just handling with your existing servicing company who won't really do anything for the first 60, 30 to 60 days.

Okay, can I add to that, Scott?

Yes.

I really wanted to give a shout out to Daniel Singer here. Right. For the guy who asked about the wholesaling.

Yeah.

I never worked on this asset at all. Honestly, I never worked on it. I just called Daniel and asked him the status. That is all I did.

Yeah.

So he, he did the whole nine yards for us. You know, he took care of everything. I honestly, I didn't do anything. I just called him for the status update.

Well, but let's, let's not, let's not make that. You still called, you still told them roughly what to do. We don't want people thinking that, oh, you just plan it with there and then don't respond to them because some people will do that. Now you part, I mean, you'll give them, hey, what's going on? Can I get some where we at? And he'll give you a, hey, we got this option A, B or C, which way do you want to go? And you direct them that way. There are people that will just drop a loan with a servicing company or service or never reach out and give them a phone call. That's a big problem. You follow up. It's a regular basis, every two weeks, three weeks, something like that.

You're talking to them three weeks to a month. So. Yeah, I know. Been talking to Joel on a different stuff to buy assets, you know. So he would also tell me what's going on.

Yeah.

What's your goals for 2018 besides getting your ducks in the road for a fun in 2019? What's your, what's your number of deals you weren't looking to close?

Well, as far as the deals, you know, we wanted to maybe stick to the same thing or do better. Maybe like 20 is what I'm thinking. You know, and other than that, we really wanted to get one VA on board.

Okay.

So let's get, let's focus on it because I think between this week and next you can get a va. Alright, so there's a couple things. What, what are some of the duties? And this I think is good for a lot of people that are watching or listening to this episode. What are some of the things that you're going to have your VA do?

So it'll be like the Facebook advertisements that we are doing or the Facebook marketing, I should say.

Okay.

Or we might even give them access to some of the assets and do the bookkeeping for us. If they have to work on a load, you know, they would work on these loans, you know, talk to the services, just copy me, you know, and pretty much that's it. And do all the advertising for us, for me as well as for my wife, you know. So it's like everything is related to real estate. So if someone knows about the loan processing side of it, that will give us a head start. So we want someone with experience, you know, they could be anywhere within the United States, you know, but they should have, they should have worked with a title company before.

There you go. That's, that's. You got hit the head right on the nail. You're looking for somebody who's not overseas but somebody domestically who can work remotely for you, handle the call outs. You need like a Jennifer.

If she's available.

Jennifer's overwhelming my files like that. You need a Jennifer and a Nicole. You need somebody that's going to handle your Greg as well because you're doing a lot of the due diligence and you're doing some capital raising.

Right?

Right.

And user service called noteprose Pros with a Z. They're a great little service that will help you speed up your due diligence aspect of things. If you go to noteprose.com ScottCarson they're running a special right now for just our Scott Carson students. So that's a great little thing. You just plug in your addresses. It'll help you give all the online information. Not going to give you accurate comps because it's still an online like an avm. But with the help of your wife and her connections through Williams across the country, you should be able to pull comps relatively pretty easy with friends and stuff like that. I would have you check out like contract to close people, you know, they have that title contract to close. A lot of realtors do that. This may be somebody, maybe it'll help your wife with her stuff as well because that would be a Benefit that would help you guys both doing different things, you know what I mean? But very, very similar aspect of things. Obviously anybody entitled or a loan processor would probably be a good one besides just title work for you. For those that are listening out there, if you're looking at great places to find people, loan processors, you know, not process servers, but processors. These are people used to looking through loan files, putting loan files together. So it's an easy transition once they get a loan file to be able to go through. Oh, hey, this borrower has this or this bar has this. That works in relevance to you seeing what the bar may have for a workout or right party contact or what they did. What kind of what happened with the rest of the story after you buy the note? You know what I mean? What's your favorite thing about the note? Business Pari.

I just work from anywhere. I just love it. You know, I don't have to handle any calls from property managers or the tenants. You know, it's just me staring at the pipe drive. That's what it is. And then making few phone calls, you know, from home. So I need to give a shout out to Adam Adams. You know, he definitely helped us all in setting up the pipedrive, you know, that just really helped our business.

Yeah, the pipe drives great. And with Adam putting videos on YouTube and kind of walking through it, he's done a really great job of sharing his knowledge. What's your least favorite thing about the industry?

The due diligence. So, yeah, maybe I should outsource that one as well.

You know, I wouldn't necessarily outsource everything because you still want me to put eyes on it. And I say this, I mean, we bought a couple hundred assets this last year and the staff did a great job of narrowing it down, but I still put eyes on all the files as far as where we are, values, you know, you know, give them the thumbs up or the thumbs down on our formulas and stuff like that. But it's still good when you don't have to pull up because you're still working full time. Like you said. How old are your two kids?

One is nine and the other one is four.

Nine and four. So they're pretty very active kids in school too, huh?

That's right. Yeah, they take away all our time, you know, so that really helped. And there's no business, you know, now I'm. I'm spending more time with family than my rental business. You know, with rental business, I always maintain different checkbooks for different properties. Know, writing out checks for different contractors to do some job or the other or refunding the security deposit within 21 days per California rule.

You know.

So it's, it's, it's a tedious process, you know, with rental business now. It's, it's all online. It's just me and my computer and my phone is what I need.

Yeah, that's, that's a beautiful thing. And then of course a good team and the Polaris and the lofts of Daniel Singer and of course Joel Markovitz and stuff like that too as well. So he brought from hard money lenders.

All right.

He bought from hedge fund, basically. Joel, where else have you bought from? He bought from a servicing company or anything like that or any of the online portals.

We bought from Paul Burkett as well.

Okay.

From Automation Finance.

Okay.

And then Drexos.

Okay.

So those are our main vendors.

Now on the ones that you've bought from direct source, those are contract for deeds. Have they turned into performing or non performing or is a mixed bag of both?

It's a performing note that we bought from them.

Okay, let's go through those numbers.

All right.

If you got those offhand, where's it located?

It's in Glen Park, Texas.

Oh really? Texas.

Okay, good.

Yeah.

All right.

It was a performing loan, you know, so we bought it at a 12% discount on that. You know, it is a reperforming note and the borrower has been paying it on time.

Great.

So it's a yield about what, 13, 14% to you?

13 and a half? Something like that, yes.

13 and a half.

Okay, cool.

Hey, that's great. Using your own money. It's on basically autopilot. 13 and a half percent just to collect basically payments coming in. It works out really well for you.

That's right.

Good, good stuff there for you everybody. What questions do you have here? We get some comments from people here. So Justin French says. Good, thanks for sharing. You're welcome, Justin. Sarah says investing in family is the best long term, long run return. I agree. And Pari's definitely very committed to investing with his family. Filson watches again. Steve Bricks is. Wow. Okay, good stuff. See here, due diligence equals no fun. Ryan Harper says. But it saves you a lot of. But it saves your ass. That's correct. Amen to that. Let's see here. Retired realtors that have administrative skills are great. Yeah, I would agree to that, sir too. Steve says. So is it better than holding rental properties? No business. I'll let you answer that.

Absolutely, absolutely.

Big A. Absolutely. On that one. Good stuff. What are the questions you guys have for Pari? Any suggestions for somebody who's new to note investing? Any tips you'd like to recommend to him?

Pari, you. You definitely need a mentor for this, you know, so I should say thank you, Scott, for that. You know, it's not just you and also your entire team helped me, you know, grow my business. So when someone new B is on board in your team, you know, I would be more than happy to, you know, chat with them.

Cool.

I appreciate that. I'm very blessed. I've got a good team. That helps.

Right. I've talked to Wayne Snell a lot, Adam Adams, you know, a lot of people offline. You know, it's just the contact that we build, you know, at the bootcamp.

Yeah, I think that's one of the great things. The note business is full of some great people. Wayne's done an amazing job. 300 plus notes bought. Adam's done a great job. He's on as close to over 80 in his first year. Year plus. I'm excited. I get to hang out with those guys for about a week on the Quest Ira Cruise coming up here in January for about another 10 days. So we'll be hanging out somewhere in the Caribbean being note pirates for a week. Those guys have done a tremendous job. Very proud of them. Thank you. I appreciate the kudos. But one of the biggest things I always tell people is, listen, I'm not here to motivate you. You have to find the motivation you want to do. You have the motivation part. You got a great family, you've got a desire to pad your retirement, to speed up your retirement, to do some bigger things. And so I just provide some of the tools and show you the way to do it. And you've gone out and done a tremendous job with this, things like that. So I think you can do more than 20 this next year. I'm gonna challenge you to do 40 in 2018.

Okay. Okay.

Because when you start using other people's money. Now, that's a question I meant to ask early on. Have you used any. Have you done any joint venture deals with people yet?

We have. I did with one guy. You know, we still have three more who are ready to fund, so we need to find the deals next year.

There you go. See, if you did 40 instead of doing one a month at 12 or one and a half at 18. 40 is, you know, it's just three, really, three and a half deals or three and a third deals. You can get that Done, my friend.

Right? Yeah.

I'm very proud of you, man. You've done a tremendous job. Pari, you're always a delight. Always got a great, positive attitude about you on things, and we're very, very, very happy for your success and look forward to your continued success here in the new year. So if we have any other questions out there for Paul before we let him go enjoy his Monday, Tuesday after Christmas out here.

Good.

Alex says, I totally agree on having a good mentor and a strong team to back you up. That's awesome. That's right. Steve says, wow, I need you to teach me, Scott.

That's great.

Go to weclosenotes.com or weclosenotes TV. You'll find plenty of information out there. We're also running a special here. Before the end of the year, if you go to our website and type in year end, you should get 25% off of our next virtual workshop as well. All right, guys. Well, hey, Pari, thank you for joining us on this episode of the no Closure show. Great insight. Very proud of your deals, and we look forward to seeing you at the top, buddy.

Thank you, Scott.

My pleasure.

If you guys like to get a hold of Pari, you can go to our blog and track down his website, which he does a great job. Nicole threw it on the Facebook page as well. As well, for everybody. What's the name of your company?

Pari.

SA Note Funding Group.

SA Note Funding Crew. And we'll go ahead. See here. What? Living the American dream in 2018. I like that. Sarah. We're gonna leave. We're gonna wrap up that Perry is living the American dream, not only in 2018, but for the last couple years and looking forward to even more success. So adios, amigos. We'll see you later, bud.

Thank you. Thanks, bud.

All right, guys, once again, thank you for joining us. As always. If you're listening to this on itunes, stitcher, please leave a comment and go check out our back catalog of episodes. We've got tremendous amount of great information, great nuggets from people just like Perry who are out there making things happen in their own note business on a day in, day out basis. So I'm a big believer that's the one way that we can truly make America great again. One mortgage at a time, everybody. So we'll see you all, everybody at the top.

Bye.