Tired of Landlording? This Passive Real Estate Strategy Might Be Your Exit Plan with Nathanial Hovsepian

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Welcome to Networking with Nathaniel, a podcast. Well, my camera's not quite open here where I get to sit down with high level entrepreneurs, business owners, real estate investors that are making waves in their industries. Whether you're an entrepreneur yourself, a real estate investor, or just somebody who's looking to grow, you have come to the right place. We have an amazing guest today. My name is Nathaniel Hsepian. I am the host of Networking with Nathaniel. Go figure. I am a real estate investor, a health and wellness coach for busy dads. More importantly, I am a husband and a father. I'm a family first individual. I have done many, many deals in real estate. I have helped other people do the same, currently coaching busy dads to take control of their health and wellness. But this show's not about me. It's about the amazing guests that we get to talk to on the show. We share their struggles, they share their successes, they share what's working, what they're needing right now in order to grow themselves. Before we get into today's episode, please, if you are not already subscribed to the channel, like this video, if you are here for your first time, please hang out. We've got amazing insights and things from entrepreneurs who, like I said, are making waves in their industries. Today is no different, I think for the first time on Networking with Nathaniel, we have a, a note investor. So we're going to talk about notes, what he's doing, what he's not doing, what he sees, what is working, what his experience is. Welcome to the stage, Scott Carson. Appreciate you. Oh, I caught you by texting.

Yeah. Oh, yeah. I need to share it. Go figure.

We're live.

I appreciate you. Yeah, yeah, yeah.

Oh, yeah, yeah. There's all that, there's a lot of that going on right now. All the different, all the different graduations. My, my contractor, as a matter of fact, we were just talking about this property that we've just went under contract on. He's got a, an elementary, a junior high, a high school, and I think he said a college graduation as well. All this week he's like, I'm taking the week off. I'm like, you should take the week off. That's what I've been trying to get.

You to do for a long time.

But this is not about my contractor. This is about Scott.

Yeah, right. Yeah.

I quit my 40 hour job so.

I could go work 80. Yeah, I feel like I said that on yours.

Yeah, I feel, I feel like I.

Said that on your podcast.

It's. I'm glad you Mentioned that about the, the time blocking your priorities because a lot of, lot of people that see my calendar that aren't familiar with time blocking look at that as very restrictive. But for me, and I think probably for you, I. It's freeing for me, I know that the things that I want to happen are going to happen because I'm putting it on my calendar.

Yeah, yeah, yeah.

That's amazing. This is something to strive for that when we, when we see other people that are having success and are successful doing these things, like, well, why can't we do those things? We think I have to work 100 hours a week in order to get to where I want to go. But we're sacrificing our present right now. Yeah, we want to build for our future, but we don't want to give up the now because I don't know if we want to share the now. Could go. It could be gone tomorrow.

Yeah.

It.

Sam.

Yeah. Yes.

Super. Down in the dust.

Yeah.

Well, you know what, we could flip it around and say, you know, hopefully that this can be an eye opener for somebody out there that is listening currently or in the future that you need to set these things up. I've been fortunate that I had a friend like yourself to this person that has been saying, come on, you've got three kids, you've got these things that you're building. Make sure that they're passed on correctly to them. And she kept, she just was, it was almost, she was, it was almost like she was trying to sell me something. But she wasn't trying to sell me something. She was just trying to make sure that I'm taking care of, you know, she's following up with me. Hey, it's been a couple weeks. What have you done? Like, I finally was able to say, deb, if you're out there listening, I've already told her, but like we, we've.

Got the things in place, you know.

There to make sure that we're protected and.

Yeah, yeah, yeah.

Yeah. I'm glad you were able to segue this because this is where we want the conversation. I mean, we're going to have our conversations. So you, you're focused on buying non performing notes. You mentioned, you know, foreclosures, people that aren't paying. What's this process for you for trying to create a win win? What does it look like for somebody who's buying a non performing.

Watch out.

Mm. Right? Yeah.

That's amazing.

We.

Right.

Yeah.

It's a, it's, it's a little like the casinos, like, I just have to have enough volume to where those. Some of those losses will be way, way offset by the winds.

Yeah. Okay. Yeah. Yeah. Okay. Yeah.

Interesting. We do have a question in the chat. I do have. I have a handful of my own. When you're. When you're reaching out to the borrowers, they've already had communications with bank. Does that make it a little bit easier than. More open to working with you?

Yeah, yeah, yeah.

Right. Okay.

Yeah.

So you're. This is something that we talk about in fit fatherhood, which is when. When somebody comes in, we're trying to meet them, where they're at and find out what their situation is. You've done a lot of this work, it sounds like before you were making it. Decision on purchasing the note. Do you. Are you.

Yeah.

It.

Are you having a conversation with them before you're making the decision to buy the note or is this. Yeah, this is after.

Okay. Okay. Okay. Jeez. Okay. Yeah, yeah. That.

That dates us a little bit, I think for. I. I like to think that a lot of my audience is around our age or so, so I think somebody. Some people will reference that, but you should look that up if you, if you. If you haven't, because those were.

Yeah. Homie the clown, yo.

Yeah, that was a good. Geez. Yeah, that takes me back a little bit. Okay. We don't need to go down that road. That was. That's where I was going. Let me tell you something with. So you mentioned the fair. I forget exactly what you called the fair. Debt servicing collection practices. Okay. Is that. Does that come into play because you've gotten this information from the bank now or because of what your title, your company is?

Okay.

Yeah, let's try to work.

Yeah. Yeah.

This. These lists that you're getting from the bank, do you have to be a debt service collector like you are to be able to go get this list or could somebody like music?

Yeah. Okay. Okay. Yeah.

It.

Okay. Oh, wow. Okay.

Sa.

Yeah, I have this one question that I had to write it down because I've. As you're talking, I keep having more pop up. It sounds like you're. So you have this. Let's just say call it 18% return from these notes that you're doing and you're going to go deliver at. I'm just again, 12% to your investors that you're bringing in and you're just arbitraging. You're getting the difference for yourself. This is amazing. Okay.

Wow. Yeah. Okay. Yeah, yeah, yeah.

The question that I wrote down here is with all your different strategies that you have, which you've gone through, you know, so far, meeting the seller, where they're at, working with them to try to get them to be back on track. How do you lose here? Like what.

It.

Wow.

Mar.

Interesting. Yeah.

I, I mean, I, I, I could see that protect your, protect your people.

But yeah.

We do have another question for Yolanda and I want you to answer this. What's the difference between a performing and a non performing.

Yeah.

Okay, interesting. So this is, this is an aspect of the, the notes buying that I didn't, I didn't think of is that you're, in a sense, you're taking the, you're taking the asset, you're adding value to it by getting it back to a performing note, and then you're able to go, hey, look, here's the future value of it or the value over time. I'll sell it to you for, for today's value. And so you're able to.

Yes. Yeah. Mm. Yeah.

Good faith.

Yeah. Yeah.

Well, there's so much about that, this, that I, I love. And you know, you found, we, we all know landlord, you, I mean, maybe we don't all know, but I think for the most part that's what when we're think real estate investing, you think, okay, go buy a house. You're either flipping it or you're going to be a landlord. And there's just so many darn ways to do this. And you mentioned it at the, towards the beginning of this conversation, is that like, yeah, I'm in here to make money, but I also want to do right by people. And you just mentioned another way you're trying to do right. You're not even just trying to do right by the person that you're doing the note for. You're trying to do right by the other people in the neighborhood in the city that, hey, if I can keep this house from going into foreclosure, I can keep all your property values, you know, going in the right direction or in the direction that we want them to go.

Yeah.

So.

Yeah, yeah, yeah, yeah, yeah.

That's, yeah. There's a lot of ways that you're able to, to kind of go about once you have the information that you have. What, if anything, right now are you looking for? Are you needing in your business to kind of push the needle to where you're trying to go?

Okay.

Yep.

Yeah.

Yeah, we talked about that. Yeah, I love that. I have, we have another. Yolanda's just populated in the chat with questions here. How does, how did you get introduced to the strategy?

Yeah, okay.

Oh, interesting. Yeah. So you had a, you had some training and then they were like, hey, this is the best time in history to put your training into practice.

Yeah, okay. Yeah, yeah.

I haven't paid my car loan yet. I just bought a new. I just, I just got a truck.

Yeah, yeah, yeah, yeah. Okay, well.

Score free car.

Yeah, that's, that's, that's the, that's the ticket right there.

I, you, you mentioned earlier that the, you know, that the people that are coming out to borrow from you, if somebody wants to borrow from you, or, I mean, if somebody wants to lend, if somebody wants to get in touch with you and get, be a part of these deals, what's the best way to reach.

Okay, right. Yeah.

So you're getting so, so these, these investors are coming in, they're going to get, you know, somewhere in that double digit, you know, the double digit returns. And, and then you mentioned, you, your example earlier was, and I don't quote me on the exact numbers, but you bought it for 50, you sold it for 80. You know, a year later you got the cash flow. So the, the, the investor getting the cash flow in the interim. And then what happens when the note sells that? Oh, okay, so they just get the return on their money while, while their money is out and then they get their principal back.

Okay.

Yeah, amazing.

Okay.

And then they can just go, well, hey, I don't want my money back. I want the returns. Go put it back somewhere. Yeah, go put it back in the.

U.S. yeah.

Yeah, you've got, you've got so many ways to go about making sure that they're getting taken care of.

Yeah.

Right. So I have these questions that I've been, we talked about this before, and I just started this last week that I want to start working in one that I think is pretty valuable for everybody out there, and you kind of already alluded to it, is that you, you don't really start your workday typically until around 11 o'.

Clock. What. You know.

Thank you.

Yeah.

Ah, that's not when you're starting your day, though, but you're starting your day before that. What are the habits that you're doing on a daily basis that you could, say, have contributed to your success?

Yeah, yeah, yeah. Right. Good. Yeah. Okay. Oh, wow. The big pot. Yeah, yeah.

Right.

Yeah.

Is, man, that's a quote. Is, is, is that something that you would recommend for people that are just bootstrap? You know, getting started in this is like hey, if this is what you want to do, do it.

M. Yeah, Yeah.

I love that this is this. The networking with Daniel was born essentially out of that as your network is your net worth. And go meet a bunch of people. I, when I joined sub 23 over three years ago, they say go meet 25 people. And I did that. And I just took that at face value, like, Okay, I met 25 people. Check what's next, you know, but it's not just about that. It's about connecting with them and stay connecting with them and, you know, asking the right questions. But you brushed or you didn't brush over it. You, you. One thing that I love about your morning routine is that it starts at 8 because you're not starting your day till 11. Your work day till 11, for the most part is that I don't need to get up at 4:30. This is something that we talked about on my fatherhood podcast last night is that, you know, I get up at 4:45 because the kids wake up at 7 and so I. That's my, that's one of my work day starts, you know, because we're family first.

Yeah, right.

Fur babies. You have fur kids.

Yeah.

Right.

Yeah.

And I don't work. I like after 8:30. I don't work very well. I know that about myself. So some, there are some people that midnight is. Is when they're getting the best work done. You know, maybe that's a little excessive, but.

Yeah, yeah, yeah. Yep. Yeah, yeah, yeah, yeah.

Wonder time.

I'm good. Yeah.

Yeah. I. I knew, I knew this was happened because the couple conversations that we've had. This is the way it goes. We are at the 50 minute mark. I've got. I do have two questions now that I've asked everybody on Networking with Nathaniel for almost, for everybody. Do you have any books, recommendations, business, personal development, specifically the notes maybe that you would recommend for listeners tuning in? Okay, there you go.

Okay.

Oh, yeah.

Yeah, yeah. Okay. Yeah, yeah.

I. I have not read it. I've listened to it. I like the. I like the audio. It. Is it.

Okay, okay.

Because they do the back and forth and the, the version. I don't know if there's multiple audiobook versions, but the version I listened to, I was like, oh man, that's the devil talking, you know?

Yeah, yeah, I agree with that.

The way that they. The frame, the drifting and he talks about the drifting over and over again throughout that book. It really drives the point home, is that. No, you gotta. It's. It's not a Three month, a six month. It's staying focused for a very long period of time on this one thing. That's how you become super great at it. Yolanda would like to know the name of your podcast again, Scott. I will make sure that that goes into the show notes as well.

Yeah, there you go. So.

Being your 48th birthday, this is something that you've. This question is going to be easy for you to knock out because we've talked about this before on your birthday. Each year you do a reflection on the past year. You know what, before I get to the question, I have another question. What are you looking at over the past year on, on your, on your birthday at being 40, you're being 48 years young this year. What are the things that you're looking at back and reflecting on as, you know, as a husband, as an investor, entrepreneur?

Yeah, that's.

We, we talk about 10xing a lot and I, I forget who it was years ago. This is going back at least five years. But they said, how can I 10x with ease. And I thought that that was really interesting. It's like I, I still want to be able to do the things, eat lunch with my family, you know, dinner with the. On the memory stamp. I'm going to go grab something real quick. I don't normally take my headphones off during networking with f. I thought that this was very cool. What was it? Oh, yeah. And for those of you out there, I don't know if you were able to see. I do wear pants. I just wanted to. Yeah, I don't know if people are thinking that, but yes, I am. We started this at the beginning of this year for that exact reason of the making of memories. Each. At the end of each week, we do it on Sunday night. Almost every Sunday night. We've done it on a Monday or Tuesday. Before we take a sticky note, we write a memory or two from the week. Brittany and I each do our own. And then at the end of the year, we'll have 104. Well, we'll probably have a little bit less than that because traveling or, you know, things. But those are our memories because I have a really bad memory and so I want to be able to remember them. And it'll be a cool little thing at the end of the year where we get to pick them up. Oh, yeah. Remember when, you know, Harland or whatever did this like, or remember when we went to Disneyland? That was so awesome. And you. And for me with the kids, what was your favorite part about Disneyland? Now they're able to go, oh, yeah, time exists, you know, so you kind of already alluded to it, but when your time is done, Scott, on this earth and you're wherever you believe you go, what do you want to be remembered for by the people that you've left behind? Yeah, I, I appreciate you. I knew that we would have some chuckles. See, we would have a good time. I learned a lot from you as well, and I hope that the people out there that were listening live. I know Yolanda did, and, and, and in the future as well, we're able to take some pieces. Yolanda, I'm speaking directly to you right now. No, I'm speaking to a lot of different people, but, you know, Scott mentioned it, is that it takes focus, and it takes a long period of time of focusing on one thing. Just because a lot of the things that Scott has said on the show seem exciting and he's doing a lot. If you're focused on wholesaling or you're focused on buying co living properties, do not let this distract you. Scott found this niche, and it's working very well for him. That's not to say that if something you're not enjoying, you shouldn't. You can't go explore this, but just don't let this be a shiny object is what I want to say. I appreciate you so much, Scott. Any parting words? Also, would you repeat the best way for people to reach out to you again, please? Yeah.

Thank you.

Thank you so much. That's. That's coming from somebody that is closing in on a thousand episodes of his own podcast. So that's experience right there, just plugging that stuff. I appreciate you, Scott.

Yeah, thank you, sir. You too.

Scott Carson. Amazing. A lot about note investing that I did not even think of. I didn't even think of, you know, creating a note and making it. Essentially, you're kind of raising the noi, the net operating and income on a note here, and then you're able to turn around and go, hey, look, I've. I've revalued this note, and I'm able to go turn and sell it for a profit. So that's really, really cool. He's doing a lot of things that are very aligned with having a fulfilled life, which is something that I took away from right now that he's taking care of himself early on. That way he can pour into his people and his business throughout the day and throughout his weeks. So that's something that you should be taking away and adding to your life as por yourself because when somebody else has a cup that they need poured into, if yours is empty, you don't have anything to pour into them. So as always, if you're needing help out there, not with Node Investing, because go to Scott for that. But if you're needing help out there in your business, talking to sellers, underwriting deals, whatever it may be, I have open office hours every Thursday at noon Eastern time. You could go to Nathaniel Havesepian.com to find the link for that. It's in there. I have. I open the office hours. Yolanda's been taking advantage of it as, as other people have been as well. Like Scott said, if you're not already subscribed to the channel, subscribe to the channel. So you can get notified when we go live and when other valuable content drops. And if you made it this far without hitting the like button, come on, hit the like button. I appreciate y' all for being here live and in the future. I will see you next week.

Week later.