WHY INVEST IN A NONPERFORMING NOTE WITH SCOTT FEATURED ON THE PRIVATE LENDER PODCAST WITH KEITH BAKER

Private lender podcast episode 41 the Private Lender Podcast quote of the day comes to us from Socrates who said, if a man is proud of his wealth, he should not be praised until it is known how he employs it.

This is the Private Lender Podcast, the show that shares practical advice and know how for new and seasoned lenders. From private mortgages on single family houses to joint ventures on commercial projects and beyond. Discover details about investment vehicles that you won't find at your local bank or online broker. Listen and learn from private lenders and real estate investors as well as from professionals and entrepreneurs as they share the details, strategies and the insight that allows for successful and prosperous lending. Now get ready to increase your roi. Here's your host, Keith Baker.

Hello. And what's going on in Lender Nation? Welcome to the Private Lender Podcast, the only podcast dedicated to supporting confident and successful private lenders and to create an alternative economy where we invest without banks or Wall street brokers. My name is Keith Baker and you're listening to episode number 41. And I'd like to thank you for sharing your time and your ear with me today. That was. Well, your time is your greatest asset. So I really appreciate you sharing it, sharing it with me today and I hope I can make it worth it for you as my goal is to help private lenders just like you, people, just like you and me, mitigate risks while increasing yields and, and the return on investment. Today I am very, very excited to welcome a friend of mine, Scott Carson, to the podcast. Scott invests in mortgage notes as well. However, he does it completely differently than the way I'm used to doing it. So he's going to explain what he does and I think you guys are, are going to like it. It's a, it's a pretty cool system and he's done very well implementing it and create, creating, implementing and perfecting his system. And yeah, he's, he's one of the ones you want to kind of watch out for and watch what he's doing because he's a smart cookie. But before we get to that interview with Scott, we need to tend to the business of the private lending business. So let's go ahead and thank our sponsor for episode 41. Countytaxsaleapp.org.

This episode of the Private Lender.

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Today I speak with Scott Carson. As I said before from his company is called weclosenotes.com and as I said before, he takes a slightly different angle on real estate investing. He prefers to invest in bank originated non performing mortgage notes. In plain English that just means that these are banknotes or mortgages that either a bank has originated and is holding. They say like a Wells Fargo bank of America or maybe a regional bank or even credit unions or smaller banks. Sometimes they buy them. But anyway, in any case, the borrower has either defaulted or they're behind. It's a non performing note, it's not being paid as agreed. And you're going to listen to Scott talk about how he thinks this is better than, you know, fixing and flipping and, and whatnot. So it's a pretty interesting system and well, why don't we just go ahead and let Scott tell us all about it and yeah, I hope you guys enjoy this. Lender Nation.

I am honored and excited today to have Scott Carson, The President and CEO from WeCloseNotes.com on the podcast, the private Lender Podcast today. Thank you so much, Scott. Welcome. And yeah, I can't, I just can't say how much I appreciate you being here.

You know what, man, I'm excited to be here. And so I guarantee so is Note Nation.

I love it. Note Nation, Lender Nation, they're a little quiet right now, but they're a little shy. But that's awesome.

Just honored to be here. Keith, Love your show, love what you're doing out there. I think there's not enough people spreading the truths on private lending and, or notes, stuff like that. And you're doing a great job. So what that.

Thank you, thank you for that and that's why I'm so excited to have.

You on the show.

And I just want to give before we get too far, you, you look, you do notes a completely different way. Like the way I've started off with this is more of an origination one on one. And what you're gonna tell us is gonna blow everybody away because they don't have to originate, they just purchase the note once it's already in effect. So. But before we get in into all that, I've been cyber stalking you a little bit and I, I see you're from Ingleside, Texas, just north of Corpus.

That's correct. Parents lived over in. We actually moved to Corpus Christi when I was a young lad from the frozen tundra of Rochester, Minnesota.

Okay.

Dad was. Parents were dairy farmers. Moved south because my dad had a bad back and so lived in Corpus Christi and then moved to Ingleside and that's where I graduated high school in 95 on Ingle Dink from Ingleside.

Wow, that's, that's cool. I've occasionally my day job takes me down there to the fab yards on the water so that.

Know those areas quite well. My dad owned the local hardware store for over a decade called Ingleside Hardware. It's no Longer there, But that was 1.25percent of our business was providing nuts and bolts roughly out to Bullwinkle and all the guys building the offshore rigs and all that stuff that goes along with that. So from the time I was in the fourth grade, I could cut and thread, pipe, cut glass, cut keys, run a register, and just about. I was the guy that put everything together in the store, all the lawnmowers and stuff like that, from the time I was in the fourth grade. So I know the value of a nut and a bolt in the washer, because I guarantee come December, my hands were raw from inventory, counting all those damn things. You compare it to nickels and dimes, it adds up over time, you know, it adds up. And it definitely gave me a big value of business and also taught me a work ethic. It also told me value my dollars and cents, especially when it comes to investing what I'm doing.

That's.

That's a. That's a great background, and that's. So go ahead. You go from. You know, I'm sure your dad paid you handsomely to work in his store.

You see me, he just fed my food bill. Come on, man.

Yeah, that's the funny thing you said you graduated 95. I was like, Scott could be like my little brother, you know, pretty. As far we're both in shape. It's a particular shape, but it's, you.

Know, it's kind of an oval, round.

Round kind of kind of shape. So. So how do you go from hardware store? How'd you get into real estate investing?

So I went to school. I played college football for two years, Bounced around a little bit. Finished up at Southwest Texas State University. Go Bobcats. And I started, you know, I went into the finance industry. I was a working, you know, it's kind of like a financial advisor. And they closed our offices. My buddy, a buddy of mine, it started with me, went his way into the mortgage industry, and I stayed kind of figuring out what the hell I wanted to do. And about two years, I got into banking with JPMorgan Shea. So I was a mortgage banker, and my buddy Boyd was doing some crazy stuff with two other real estate investors. Teaching owner financing, wraparound mortgage. And they were traveling to all these big, like, Ron La Grande summits, where it'd be 1500 people in the seminar. And he was getting bombarded with mortgage applications. This is back in 2004 at this point. And so he came to me and said, hey, I could really use some help. We'd say friends. I said, okay. So when talked to him and realized that's what I wanted to do, I mean, I dabbled in real estate investing and just lost my shirt, you know, a couple years earlier, straight out of college, my now ex wife and I bought a couple houses and just. We just bombed, you know, laid off Dell or as they like to say, hell. The hell was laying people off left and right. So it affected our rental properties and we did things the wrong way because we liked HGTV and flip this house. We all know that's the truth when it comes to real estate investing, right?

Hey, if it's on tv, you can believe it.

Amen to that. Not so anyway, lucky enough to hook up with a couple people here in Austin who are traveling the country teaching owner financing, I came on and helped out in the mortgage side. And for basically four years I had an apprenticeship learning all sorts of creative financing, owner financing, origination, fix and flips, options, wholesaling, subject to's. And so that's really how I got re indoctrinated or really baptized in the real estate business. And then as I was doing mortgages and dabbling a little in owner finance, like I said, then the market tanked in 2008 and so I stopped. We left the mortgage company and went investing full time. Short sales, foreclosures, loan mods. But I really got serious in 2000, you know, late 2009, and just started buying distressed debt. You know, the banks that I was originating for two years ago, we're now selling that stuff off and looking for people to buy because all the big buyers of notes had kind of walked away. And so I literally, I can remember it now, start dialing for dollars, 50 to 100 phone calls a day to different banks and asset managers, seeing if they had anything on their books. And that's what I did, golly, for a long time. In late 2010, I sold everything I owned in Austin except my truck and my dog. I was Now I'd lost 125 pounds because I'd gotten a divorce.

You lost your spouse and half a person?

Well, yeah, I lost like 25 pounds by losing my wife. That's right. And then that was in, you know. Well, that was the end of 2008 with that aspect of things. But anyway, 2010, I sold everything I owned. I got rid of two of my last flips that I was doing here in Austin that was upside down because the market had tanked after I bought them and wrote a couple big checks at closings and then jumped in the truck and for three years, nonstop, I basically started driving around the country, speaking about non performing notes and meeting with banks and asset managers all across the country. It was one of the best things I did going out, kind of building a true grassroots effort to spread the word about non performing notes. And that's kind of what turned me into what they call me now, being the note guy.

So that's. Wow, I didn't realize. Yes, extensive history. I mean, I know you're the authority, but wow, that there's so many things. Well, number one, first of all, if I'm mad at you because now I really got to go back and put a ton of stuff in the show, notes about sub 2 mods, you know, and I got to explain all this slang, but I just link it to.

My website, backlink it, we're golden.

Yeah, there we go. If you want to know what he was talking about, click here. That's what we'll do. So the, you know, buying distress notes, I'm sure, you know, when the financial crisis happened, you know, nobody was lending. And I always joke, you know, a bank will lend you money when you don't need it, right? So yeah, 2009, if you had an 850 credit score, you could probably get into a pretty nice loan. But nobody's lending, nobody is purchasing the toxic debt. And you come in, did you just schmooze your way into asset managers or how did you.

Well, I did it a couple reasons. One, I just never gave up. I mean, I would literally call people five, six times until they finally said, okay, I've got something for you. And I made it a game. I would make 50 phone calls knowing I probably talked to 14 people. I probably signed 4ndas on average and get one list. So it was just a law of numbers with one bank. It took me 70 phone calls over three weeks. And I can't tell you how many times I got hung up on or transferred to Pakistan or India in call centers. It's a true story. But finally, on the 70th phone call, I got the right person at Capital One who then sent me a list that was 36 pages long PDF with every non performing commercial note under a million bucks. And it was all in six point font. Think about that.

That's.

Yeah, that's a lot.

That was a million dollar relationship because we've made over a million bucks from buying stuff from Capital One for years. And that's all I needed. I mean, I literally would just call banks. The first note I flipped was 1500 bucks on a wholesale deal. I then flipped it. Took a deal down and sold it and made six grand on a wholesale deal. On a non performing note. Cause I sell it to other investors. And then I flipped an apartment note for 35 grand in San Diego. Then I flipped another apartment note in LA for 100 grand. And then I flipped the portfolio for $250,000 to somebody who wanted to take. Take it down. So. And then I started buying stuff for myself. And it's been just an amazing roller coaster ride over the last 10 years. But you know people do worry about it. You know there's not many that time many banks weren't given a lot of loans. Actually for a whole year and a half chase bank made zero loans. Zero commercial loans through the entire state of Texas. 000. But they select commercial bankers that weren't making any money. But anyway that's another story for another day. But the thing is this history repeats itself. And with all the. In 2010 we had a peak of 15 million homeowners underwater. They owed more on their house than it was worth. And then it's still. We still have about 4 million homeowners underwater out there. And so it's sad 10 years later people still owe more in their house. We still have a default rate around 4, 4.5%. Default rates are up in Florida and Texas and a bunch of the Gulf coast states too. And you know what's back now? What's raised his ugly head? Guess what? Non prime loans are back.

Uh oh. Where'd he get the sound effects from? Show it to me. For those of you listening at home, he's got a sound machine.

Now I don't know about your show but I do have an F box machine that says the word F in a variety of ways.

You know we can bleep it out.

I'm not too worried if you want.

To drop an F.

What the.

Okay.

Go yourself.

That's right people. You're listening to the AskGaryVee show with us today. Scott Carson.

Who needs Gary Vee when I got a box.

He's got the F box. That's awesome.

You know I can have Gary V. On the show right now. Save you 100 grand. Yeah, right.

You can save on his keynote cost. Nice. Okay. Yes.

All right.

I've already forgotten what we're talking about.

So we're just rapping about default rates.

Yeah, the default rates and whatnot. So are you buying? You know, do you get the pick and you get the cherry pick from this list or you know, can you get I want, I only want to do single family or I only want to do commercial strip malls in this certain range. Like how does.

That's a good question. So every bank usually has a residential asset manager or secondary marketing manager handles the residential side and then they have commercial asset managers. So it's different people. So yeah, I mean now like some banks like US bank and some of the bigger guys will send out like an end of year portfolio that I'm waiting to hit my desk like in the next week or two and I'll have just everything in it. Everything is non performing across the board and you can carve stuff out a lot of times usually banks will send you a list and they'll just buy something. Now some hedge funds will move stuff off, they want a portfolio sold. But like let me make a big clarification. The big banks most of the time, the Chase's the Wells Fargo, the Bank of America's, the Citibanks, they will sell you a portfolio of residential loans. But it's gotta be like $50 million funding. Now commercial notes are much more easier to cherry pick. They'll do a lot of one offs with that. But for those that are residential investors that are listening to your show, there's a lot more other residential banks and lending institutions other besides just the big five or ten. And oftentimes you can cherry pick or do a carve out of a portfolio.

Interesting.

Okay, so you don't have to, I've heard that you have to buy these massive, you know, portfolios from the big ones and that's. But that's something I didn't know that that's limited to them, you know that you can find I guess you know, your more regional banks. Pardon me, I got dog.

It's okay.

All right, so anyway, I might just leave that in there. Yeah, the dog just barged in. Anyway, so you don't have to buy in 50 million dollar chunks. You can, you can kind of cherry pick and then obviously like anything else whether if you know. And I met you at a quest Iravian so I know you're well versed with, with people who are lending out of their IRA. So someone with an IRA could get into this.

Yeah, about 90% of the funder. Our funding sources actually come from self directed IRAs actually.

There you go. Yeah, interesting.

Talked to a guy today who's moving some money over from his Quest account. Some of the people that move some money to their starting a new Quest account. We're the largest referrer of new accounts to Quest every year with our education and things like that, with what we do. So, you know, we love self directed IRAs. We use a variety of different companies but we prefer the home, the backyard. Folks at Quest ira, they just do a great job.

Absolutely.

That. I got my start at Quest. I remember it was, I want to say 09 and I think I learned about them through one of the local RIAs. And there was about 12 of us in a room and there was Quincy Long saying yes, you can do this and yes, the IRS says it's okay and we're here to help. And that was it. After that I was, you know, brought my wife to the meeting, said hey look, we're going to do this anyway. So you're, let's talk a little bit about your education because I realized like there's no way we're going to unpack everything for the beginner. So go ahead and just go ahead and talk about what you know, what you're doing and what your typical student looks like.

So our typical student is usually one of two ways. Either a, they're brand new to real estate investing and they don't want to do the fix and flip side or the toilets, tents and trash outs. There's nothing wrong with that. Or we have the other side. We have the tired, you know, the lazy landlord who's tired of dealing with toilets, tenants and trash outs, the fix and floppers who can't find a decent deal that makes sense or the REO refugees who can't buy anything that makes sense. The foreclosure auctions. So it's kind of a good mix usually. I will tell you this, it's a little bit different. It's a numbers game with what we do. Typical deals longer than like 90 days, it's usually around six to 12 months for us to buy a non performing note from a bank and then come to some sort of exit strategy or work out with a homeowner. Sometimes we get them modified or reinstated in the first 30 to 60 days. Other times we're foreclosing and then it depends on what the foreclosure timeframe is in that state. So you know our typical, usually the people that do really well in the note business are people that have some sort of finance background. Engineers love this. I will tell you this. It's like I could give a due diligence sheet and it's like a Engineer's Wet Dream. 21 pages and they can double check everything off. And we live in Excel and so, you know, there's multiple Exit strategies. There are about 10 different exit strategies we can do with a non performing note. I think there's plenty of flexibility, but sometimes that's also if you suffer from over analyst paralysis, this is probably not the field for you, if that makes sense.

You probably just get bogged down in the numbers and never get out of them.

Yeah, you never pull your head out of your butt. You know, you're constantly looking at banks, default rates and you know, numbers that way I'm a big provider, you got to take action. Ready, aim, fire. I'd rather fire, ready than aim. At the most part, the way to look at it, there's so many banks that there's still so many opportunities. As long as you know how to market and reach out to banks and asset management, there's literally free information out there, free list that you can create. And by just doing an email blast on a regular basis or jumping on LinkedIn and reaching out to secondary marketing professionals or special asset managers, you can find hundred, thousands of people out there. I mean I got connected to Quicken loans from a LinkedIn connection.

Really?

And now they send me a list every quarter. I can cherry pick off their books every quarter off their non performing stuff. And it's just about building relationships. It's the 21st century, but unfortunately a lot of real estate investors are still stuck in the 19th or the 20th century.

Yeah, I've kind of seen that. But I like the fact you said it's a relationship game and it doesn't matter what technology does, you know. And yeah, social media is definitely different in the way we interact. But at the end of the day, I think the old world value of just doing business with somebody is like the cornerstone of all real estate investing.

It can be. I'll tell you this, there's asset managers I've bought hundreds of assets from that I've never talked to on the phone. It's all been an email relationship. A lot of times there's also others that I get that I have a relationship with where I've taken them to a Miami Heat game because I was down in Miami, you know, to build that relationship where we've, we've had drinks together at a conference or things like that. You know, a lot of times we get deals from like private lenders like yourself who have a deadbeat borrower who's not paying. They're like, hey, can you help bail me out of a bad situation? I'm like, yeah, we'll buy that note, but we're not going to buy it at Par. We're going to buy it at a discount because I got to make a good roi, my money as well.

Let's, let's talk about that because that's one of the beautiful things that, you know, with private lending you can, is one of the few investments you can buy insurance policies for. Right. So if I'm loaning to somebody who's rehabbing and the house burns down, as long as that insurance policy is in place, I'm the mortgagee. I don't care because he's gonna have to endorse the check and send it back over to me. I'm protected. Or in this case, my ira, my self directed IRA would be protected. So if somebody makes a complete bonehead decision and hey, I've done it, I've made loans that I'm like, I'm sending the wire instructions to Quest going, I just, I don't know if I should do this, you know, for. I've been fortunate, I've been very blessed, I've been very lucky. But let's say I could do a complete bonehead. And let's just for easy numbers say, okay, I'm not, I'm loaning at 70% loan to value.

Right.

$100,000 house after it's all fixed up purchase and rehab is 1520. So 70. So let's say I get a deadbeat affliction, a fix and flopper because they decided that Chip and Joanna just made it look so easy. Because they do. But how do you get that? You said, you said you're not going to get par. And they're, you're going to buy at a discount. But how, how, how does that work? Because this is, this is like, to me, this is like the last exit strategy for a lender is, okay, I've really screwed up. Scott, come help me out.

Scott, save me. All right.

Was that a boxers that year? That was blazing. For those of you watching at home or listening at home, that was his. That was his. That wasn't one of his boxes.

No. Because, you know, some people when they, they deal with Debbie Bars, they run screaming, wrong one. Sorry, wrong one. It's more like this one.

There you go. I love it. Yeah.

Trust me, this will be the funnest episode anybody's listening to on your show.

Absolutely, absolutely. We're just going to keep this rolling. I don't care if it's three hours.

So if somebody is, it wants me to help my. I'll take a look. Okay. What's the interest rate of the loan at? Okay, so you're usually writing your hard money loans or your private money loans at what type of interest rate?

Well, it depends, you know, as I've gone as low as 8, I've gone.

As high as 15.

Okay. So if you're at 15 and there's equity, I would probably pay close to par on that or maybe just a small discount, 5 to 10% depending on what the condition of the property is, depending on if you started foreclosure process or not. In Texas we're really lucky because we do everything fast here. But in other states, you know, like South Carolina is a 12 month process. Florida is still roughly nine to 12 months. You know, Ohio is nine months. So it varies on that. So the longer the foreclosure process, the bigger discount. I'm going to ask usually if it's not. If there's been no start, you know, no start of the foreclosure process and is it like a 6% interest rate or you know, 7% or something like that? Depends on the bank loan. I'm usually not paying over 50% of what's owed.

There you go. Okay.

So there's a substantial discount there that gives me a lot of flexibility. If I do reach out to the borrower and get them re performing, I have some flexibility there to still be a good yield to me at somewhere between 15 and 20% ROI based on the payment stream. And if they bring anything to the table and if we do have to foreclose, then we're always looking to try to make somewhere around in the 30, 35% because of the time value of that aspect and some foreclosure costs.

I gotcha. Wow. That's because to me in that situation, you are what I call the note. We buy ugly notes guy. You know, at that point in time you're like, okay, you've got some paper, it's looking pretty crappy. But I like that because I know that I'm not gonna lose everything. I might not get, you know, if I loaned out 70 grand and you know there's some good money owed on if you gave me 35, I'm like, fine, I take a 50% hit, but guess what, I'm still in the game for another day. I haven't been completely wiped out. So that, hence the importance of due diligence. And you know, that's one of the. Yeah, it's a Labrador retriever. He keeps busting in.

Oh, that's fine. It's all right. Good dog. I miss my dog. Don't kick him.

That was for show. My daughter's right there. Anyway.

Don't kick her. Come on, man.

I'll kick you.

Yes.

Close the door, sweetie.

So what things that is important to keep in mind is that we do a lot of due diligence on our borrowers and approach property too. I mean, people look at property and we pull values and taxes out, but we are a sleuth when it comes to doing due diligence. The borrower. So we, like, Facebook, stalk them to see what they're doing.

Just like I did with you.

Yes. We found out, like, one borrower was going through a bit of a transition.

Oh, interesting.

Yes.

Cash, huh?

Well, let's just say they would. He would rather pay for his implants versus paying for a place to house his plants.

Let's just put it that way.

Okay.

That'S real. That's real. That's my applause.

We had another borrower who posted on Facebook, should I pay my mortgage or take my child to Disney? I'm like, well, Walt Disney's not gonna pay your mortgage. All right, so we had another bar that we reached out to who's claiming to be, oh, so broke and, you know, didn't have any money. Then we found them online, and they ran a church, and they just bought a brand new, like, Cadillac and some other things. And so I'm like, well, hey, Jesus ain't gonna save you. He's not gonna pay your mortgage, but you owe me. You should leave less stuff off your Facebook page. Wow. But, you know, those are extreme situations.

Most of the time.

If we can get a borrower who's still in the house, who's got the utilities on, and that's. Those are signs that we, like. We find out somebody's made a payment, at least something in the last 12 months, sometimes the last six months. We're willing to work with that bar that shows somebody that wants to stay. I mean, a lot of times we picked up assets that other people have overlooked, and we had a realtor drive by. I'm like, are you sure this is the same house? You know, it's all taken care of. There's plants and, you know, landscaping and Christmas lights that are less than a month old, not like 12 months old, because you get the holidays or things like that. And pride of ownership is a big thing with us. If we see a flag out there, oh, hey, we're gonna definitely jump on that for the. The most part. And our goal is not to rehab the property. We always like to rehab the borrower. Everybody goes through a bit of A financial hiccup. I've been there before. I think we all have at some point. Or I'll know people who've gone to short sales or lost their jobs and things like that. So I like to give people an opportunity. But I can be their best friend. But if they turn on me, they're not willing to work with me, they tell me the pound sand I'll be the worst nightmare.

I believe it. But I agree with you, though. Let me tell you, there's nothing more liberating than having your truck repossessed when.

Your wife is four months pregnant.

That is a good feeling. And yeah, sometimes, maybe someday I'll have an episode on that after the divorce papers are filed.

But anyway, stories. Speaking about repossession, I actually bought a truck note from a bank. Randolph Brooks Federal Credit Union bought a note on a Ford F150, repoed the truck, and then drove it around the country for three years.

Not just houses. A notes and note houses.

Well, that's what I'm saying. Everybody's in a note game. Everybody's. If you're paying on a mortgage, you know, student loans, credit card debt, everybody's in the. In the mortgage game or the note on the wrong side of the payment stream.

Yeah, exactly. Exactly. And it's so funny you should mention that because it was years ago there was a real estate investor coach here on the southeast side of Houston, and I set up a meeting with him over lunch one day, went to his office, and he asked me what type of investing I wanted to do.

And I was like, I don't know.

He's like, well, you're in the note business.

And I said, no. Do you have a mortgage?

I said, yeah. Oh, you're in the business. You're just on the wrong side. And that is so true. That is so absolutely true. Yes, we all need a place to live, but it borders on bad debt because it's not producing any coin to have that debt. So it's not leveraged.

Anyway.

Tell us, tell us a little more about your teaching. How long have you been teaching people.

How to do this?

So I've been teaching workshops since about 2010 to people. I started off, you know, like three people to class or 18. Now. We've done a way of doing the hotel kind of events. We do everything online now. Everything we do is live streaming through like Zoom or Google. Hang that stuff like that. We'll have 250, 300 people in an online workshop for three days. And our goal is over the next. Well, at the beginning this year, our goal for the next five years was to help educate and create 10,000 new note investors. And we're on pace to do that for the first of. We've hit our goals for year one already, even though we still got three plus months left. We like to average buying about one note a day at least throughout the year. We have peaks and valleys. Some months are better than others, but when we buy in bulk, we can hit those numbers pretty easily. But the biggest joy I have, Keith, is the success of my students. We've all been to workshops, we've all bought tapes and books and attended things that we thought would help. And they were just a pile of crap paperweights. But I'm very, very, very, very, very proud of our students that close deals. And we've got people that are closing 50 notes in a year or 10 notes in a year. We're able to leave their job after six months of learning what to do because they went out and bought assets and replace their income. And that's, I think that's the biggest thing. I think it helps separate what we do versus a lot of other people is like we always try to start with a game plan in mind. What do you want to do? Do you want to leave your job? Do you want to do this part time as a hobby? What's your focus? And let's, let's create a game plan. How many bids do you need to accept, submit to get the ones closed? And how many offers do you make a day or a week to figure out and really hit your KPIs, you know, your key performance indicators so that you know what you're doing and have a game plan because so many, let's face it, there's a lot of wild west weirdos out there that are trying to do everything and not having a success because they run from one class to another class, another class, another class, they don't have any time to implement and be focused on something. And that's, I've always been, I guess, like I said, Since 2000, 2009 you9 know, around there, I stopped doing fix and flips, I stopped doing wholesaling, I stopped doing subject to's, I got rid of my rentals. I just focused on one thing and one thing alone and just stayed in my lane. And it's been very productive. And for those students of ours that are staying focused, they're having a lot of success as well too.

That's great. I want to get back to your students in just a moment, but that, yeah, I was one of those guys. I would see the same people at all the seminars. And then when I got on the board of one of the real estate one of the rias, then I got to go to everything for free. And it's like, man, the same people are keeping this thing running and nobody's really doing anything. And that's kind of when I decided, you know, I got asked to speak about private lending and because I, for me having a great day job, private lending keeps me in the loop. I get to, I get, I get to stay in touch in the loop with people like yourself, action takers. People are out there hustling and you know, have, you know, a reputation, a good reputation built up because it's, you know, takes a hard long, long time to earn it. But then it, you know, and there are some charlatans out there, but certainly, I mean, I've known ever since I was around Quest ira, I've known of Scott Carson and we close notes. So let's back into your students. So definitely what I'm basically doing is I'm vouching. I don't know if a lot of people know. Scott and I were on a panel together at the QUEST IRA Expo in Dallas and had a, we probably had too much fun for not having any alcohol in us, but it was a great time. And we were up there with Brant Phillips, Larry Goins. It was just, it was, it was really, really an honor and, and it was a highlight of my year, definitely. I never thought I'd start a podcast and I'd be on a panel like that. So that was, that was really cool. But one of the things that we spoke about at that, that conference and when you've already mentioned is that you use, you guys, you and your students use private lenders, money use self directed IRA money. Kind of walk us through the mechanics like. So if I had a listener here is like, okay, this is interesting. I like to fund into some of that. How would that, how would they do that?

Well, the first thing is we want to have a conversation with them. You know, what are their goals? What do they want to do? They want something that's going to pay them, you know, quarterly, you know, on payments. You know, I always like to ask what type of investments they've got and done before. If they come and tell me, though, I've got stuff in CDs, you know, as I like to say, certificates of disappointment.

And that's a good one.

We can come back and offer them, you know, you know, three to four or five times or even more with their, you know, CDs paying them. That's a win win. Not everybody's a fit. You met, you made a comment about hey, you were sending wire instructions over to Quest and you had a bad feeling in your stomach. Trust your gut is a big thing because I turn money away if I just don't get a good feeling for somebody. And if somebody was going to fund a deal and they walked know they walked at last minutes, oh, I won't ever do business with them again.

Right, right.

You know the biggest thing with question reach out to us, give us a phone call. We'll have, we'd like to have people fill out investor profile sheet. Just get a feel for their history. They, you know, they answer some question, where's the money coming from? You know, what's their expectation? Stuff like that and figure if we can be a fit for them because not everybody's a fit. If somebody's looking for to flip their money every 90 days then notes is not what they want to be doing. Our typical deal is 12 to 18 months. And so it's a 12 to 18 month process. Sometimes it's faster but let's under promise and over deliver is always the way I like to say.

Sure.

So but then it's basically it's either you know, once we, they get rock and roll, they got like a self directed ira. We're either filling out a directional investment form. A lot of times we're putting people into two or three different assets so that we hope that one or two of them hit and then if one drags out we've got a kind of a blended feel for what's going on with that. And we've got basically two kind of platforms. One's a flat roi, flat lending, like a flat loan and the other one's more of an equity partnership where they, they fund the deal, we handle expenses and then the profits are split 50, 50 after the expenses and investment returned to them. So it's just, it's conversation. If people want more information they can always just reach out to scottclose notes.com and be glad to jump on the phone with them.

Yeah, and you do that's, that's not, I mean you answer every email that I've sent to, to that email address. So and you can always go to the Show Notes page and I'll have links to Scott's whole platform because I know he's very active on social and that it's yeah, he's a good guy to get to know. I had one question. It's kind of an oddball question. Do you purchase? I mean, I know, look at us, right?

But ask away, my friend. You could ask me anything. This is, this is the Private Lender podcast. We, we do deep dive. We ask the oddball shit so you can know your due diligence.

That's right, that's right.

You need me to do a voiceover.

I think actually you're going to do my next when I change my intro. I think I'll just get you to do it.

I'm glad to, man. I'll get the energy all pumped up.

You mentioned Florida, South Carolina, for example. I, I will not, I will not lend in New York or California. Are there any states that you won't purchase notes in? I know you mentioned.

You know, New York is it. You have to hire an attorney to have an attorney to talk to an attorney up in New York. Okay. It's like a three year process to foreclose. New Jersey is a bad state as well. California is not so bad. I'll buy it just, it's overpriced for the most part so you can get a premium on your debt there. The banks like it like the value of their stuff and even non performing stuff is still selling in the mid-90s, which is kind of ridiculous of what's owed. But you know, for the most part, I won't, I won't. I'll buy in Illinois as long as it's not in Crook county or Chirac.

County. All right.

Yeah, it's a longer story. That's another podcast episode for Crook County. But yeah, I like Florida. I made a lot. I was buying in Florida when nobody else wanted to and I just read that appreciation train back up. I absolutely love investing in God's waiting room down there.

I remember he said that at a Quest event. I think water came out my nose.

I love south of Florida. You think you realize in 2008, 9 and 10, when I was driving across the country, especially 10, 11 and 12, I picked up condos in Miami beach for five grand. Oh, I bought the debt for five grand and foreclosed. Sold them all at the foreclosure auction to overseas investors. Made a lot of money. I love the southwest port, you know, like Naples, Cape Coral, Florida, Marco Island. Oh my God. I was living in Marco island for like four months in this mansion for 1500 bucks a month because the guy just wanted somebody to come in. He was, he owed way more on it was worth fully furnished. Me and the dog Living in it for like four months as I was driving around Florida learning everything. So. But you know, I like most major markets, I don't buy a lot in Texas, unfortunately. I know we're both Texas boys, but Texas is since we got such fast foreclosures, the banks want 70, 75 cents the dollar and I don't want to pay that much. So I buy in other markets outside of Texas that I get a bigger bank for my buck.

See that's, that's very interesting. So whereas I tell someone who wants to be a private lender, invest in Texas because it, because of the fast.

Foreclosure process, I agree, but I'm buying the debt. The banks know that they don't want to take a big discount. So I, there's one number that unites all of us and that's the ROI and rot, you know, return on investment. But then the rot is return on time.

I'm the most valuable asset.

Yep. So that's why I stopped doing fix and flips and got away from that. So I want stuff I can buy and get modified. Re performing, get the cash flow coming in that I don't have to do the work on. I don't have to foreclose and put you know, fix and flippers into it to get it fixed. I just like cash flow and that's what my goal is long term. Build enough up that I can go buy my own private island somewhere and.

Just chill next to God's waiting room.

No, I'm further away from God's waiting room. I like like a two hour trip to God's waiting room might be a good airplane ride, you know what I mean?

I got you. I got you. All right, so are there any qualifications or certification licenses to do this or can anybody buy debt off of the bank?

So most states they have a requirement that if your servicer, your debt collector, your servicing company is licensed as a debt collector in that state, it usually solves most of your licensing problems. In Texas there's no licensing requirements. You don't need to be a mortgage broker. You could actually self service all your loans and be completely fine. But states like Illinois wants you to pay, you have a debt collector's license separately every service like 750 bucks. Maryland used to require to have a debt collector's license if you were going to buy debt, but the state supreme court just overturned that recently. Washington state, Georgia, Oregon, they require you to have a be a mortgage broker in those states if you're going to buy debt in those states. So I just don't buy in most of the states because it's overpriced. But we have our servicers licensed in about 35 states, which is enough for where we're buying it.

But you've got a, got a massive operation, though. You're looking at a lot, a lot of notes. Not just like me. I'd say I'm looking for three. Right?

Or. But that's okay. Everybody's got their own different business. But they said those buying two states and that's great because there's enough in like Ohio or Michigan.

Because that list of states you just gave was not very long.

No.

So like I've got assets right now in. All right, Ohio, Michigan, Indiana, Illinois, Missouri, Kansas, Oklahoma, Tennessee, Florida, South Carolina, Virginia. I say Oklahoma already. I did, I meant to say that. Colorado, I got one in Arkansas. It's kind of weird. I do have a couple in New York State. Cause I got them so cheap, it just made sense.

They were just so dirt cheap. You just had.

Oh, the bank gave them to me. Basically. They're like, well, that's fair enough. And I do that sometimes when I'm making offers. I'll take this one at your price, but I want this one thrown in for free, you know.

Okay. Yeah, good negotiation.

You know, I have some bar tabs that are more expensive than some of the deals I've paid for on distressed debt.

You heard it here first, people. You heard it here, so that's good.

So it's pretty.

A fairly low barrier to entry then. Unless you're, you're gonna invest in those states. That's, that's so funny that I'm still trying. I'm still kind of tripping out on the whole you don't buy in Texas thing. And I don't blame you that it makes, it makes perfect sense. But you, since you buy, let's say, I mean, you're buying almost, you're virtually investing. So how do you, you said you vet the borrower or you look at the borrower, go through the, you know, their, their profile, so to speak. Is the property in good condition? How do you verify that?

Same way I would do it here if I was in Texas. I have a realtor go buy it, you know, drive by it, have a realtor take photos. We call to see if the utilities are on. That's an important thing. If the glass ball is on the outside for the electric, that's important stuff to do. Now occasionally, like I. In June and July, I. Or no, August, actually, August I was in Ohio, for like six days. Steph and I drove by like 50 assets. Over half of those I owned. The other half were stuff we were looking at. And it was really worthwhile because we're buying on a chunk of those, on the new ones, but the other ones we own, we're really happy, you know, like, oh, this is in really good. This is better shape than we thought based on what the realtor showed us. So, and same thing, we did that in July in Michigan. We drove around 60 assets over three days, over half of we had already owned. And we're just doing a drive by to take a look at them, and we're very pleasantly surprised. Some were in just phenomenal condition because people. It's something we bought and modified and people took the second chance to really make something good happen and give themselves out of a bad situation, which is great. But for the most part, you don't have to go look at everything. I mean, there are realtors that will do that for you. There's companies that will drive by and take a picture for you or take multiple photos and give you a property report. The idea is that you don't need Scotty to beam you up, even though I'm giving her all she's got to help educate you in the right way.

That was a Star Trek reference for all you young ones out there.

But anyway, what I'm trying to get at is you're in the 21st century. Use the Internet, use services. There's Meetup Group, there's real estate investment clubs all across the country and jump on those, join those in those areas and reach out to the people there and say, hey, would you drive by this house for me? 50 bucks. Take some good photos. It's cheaper than a Southwest Airlines flight for the most part. So absolutely, that's the important thing. You don't have to go touch and see everything yourself. Now the biggest. One of the biggest things that fix and Flippers struggle with is that we don't get to see the inside of these houses most of the time before you know, because they're occupied. I just can't knock on the door, hey, I'm buying your note. I need an inside view of your house. It doesn't work that way. Right. So that's why it's important to check the borrower out, see what they can do. If you can track them down, have a drive by, see what's going on. Most of the time, if the outside looks good, the inside's pretty decent for the most part. We've had A few situations where it wasn't that way. But it's a numbers game, and if we're buying, you know, 50 assets at a time, I can afford to have two, three, or four assets that aren't the greatest or, you know, a couple that are just horrible and just write them off as insurance claims. So.

As an insurance adjuster for my day job, that just. You just. You just. You threw a left hook at me. Because I did. That's why I love lending, private lending, because I can't insure a stock or, you know, an option or. Yes, you can insure a cd, the certificate of disappointment. I'm going to steal. I'm going to say, I'm going to give you credit twice. I'm going to go total jld. Oh, three times. I got to give you credit three times. I'll give you credit three times, and then it's still yours.

But, you know, there are people out there, you can't Insure against a 401k training into a 101k, can you either that.

That's right. That's absolutely right. But you can get title insurance, property insurance, flood insurance, and these things help. Not only help homeowners sleep at night, help people like me, private lenders sleep at night. So. Okay, man. I think talk about the property, because I've always, you know, when I've done some, you know, a few classes, and I've always taught people if. If you're just starting out, you know, as a private lender, do it in your backyard. Get your feet wet, go slowly crawl before you walk. And go look at every property. And I tell them, smell it. Walk inside and smell it. Because smell is the, you know, the biggest sense that we have as far as triggering memories.

Yep.

And I remember one of the first loans I ever did is with my partner Landon, and I almost vomited the second I walked into a house, and all he wanted to borrow was $22,000. And this thing was the absolute worst thing I'd ever been in. And I've lived in some pretty shady places in my own day in college and whatnot, but this was the absolute worst. Three months later, I was back down, driving for dollars kind of in that area, looking around for some. Some wholesale deals. And they'd already given the house tons of curb appeal, put new siding on it, you know, and the beautiful thing was they were improving the asset that was backing my investment. And I was like, that's really cool. So. And the fact that you. I totally agree with you. It's the 21st century. There, you know, there are way. If there's a will, there's a way, and the Internet is going to provide for it. But this way, because a lot of people ask, do I loan in other states? And I know because I haven't developed, you know, a network yet, or it really don't even need a network, but just. I haven't.

You need a network?

Well, yeah. Well, I'm saying, like a guy asked me if I would invest in Chicago and. Exactly. I said no. This is definitely going on you. And I told him, I said no. I said, you know, one. I've only heard bad things about Chicago crook. So now I'm going to start calling the crook county. But I, you know, I could easily had. I got a good feeling about it. Like someone. I'll give you a prime example. If someone came to me right now and said, Dallas or Atlanta or San Antonio, I would probably not shy away so much. You know, I would, I would say, okay, let's talk about the deal. What do you have? What's your experience? You know, all the due diligence that you've talked about, but get that feeling, like you said, trust your gut. That's. I did a class with an attorney one time, and he was like, I can't. I can't let you say that. I'm like, what, legally? He's like, no, I just. You just contact an attorney if you don't trust your gut. I'm like, oh, so you need work.

That's what it is. That's what it was. I got it.

Okay?

Trust me. We wire out monthly to our attorneys. I mean, we've got foreclosures going on about 45, 50% of the time it happens, we still get foreclosed. And I love my attorneys, trust me, but they love me.

Oh, yeah. They say, oh, here comes Scott. He goes. Here comes money making Scotty. See.

I'm on all the Christmas card lists.

I bet you get some nice wine from the lawyers, too, and things like that.

Yeah, I always worry when the bottle comes in, it's more than I would have bought. Like, damn it all, do they overcharge me? I'd rather take it less on the hourly rate to not have a bottle of wine.

Well, you know, it's funny because a lot of people in lending, they say, hey, can we just reuse your documents?

Nope.

I say, look, in my day job, I work with a lot of attorneys, and there are some that I consider dear friends, and there's some that I hope I never have to go in front of, in court because they're going to sh. And I know lawyers as a, as a, as a, you know, insurance adjuster, loss adjuster. I'm literally half a step above an attorney and one step above a politician. So I get it. But always, always, always have the attorneys do it. And I, and it's, look it there is, you know, every, it's like the police. Nobody wants the police until you need them. Same thing with an attorney. Right. Nobody wants to deal with them unless they, unless they absolutely need them. So I like the fact that. But that helps. That feeds into your network. That's. You have, you don't need to meet these people. You just need someone that knows the state law, the processes in the court. Go take care of it. And I get excited because like you mentioned earlier, you blend three houses together and you've got a 40 or 50% foreclosure rate. You know, I would, I would say to. That you're a slacker. I want to see 80, 90% foreclosure rate on your notes there.

Scott. I'm kidding. But that's a mistake I made earlier on. And I'm glad you actually brought. I know you're kidding, but the biggest mistake I made in the note industry earlier on was trying to foreclose on every asset I bought.

Because you wanted quicker cash.

Well, I came from the Fix and flip model.

Sure.

And so I was buying stuff trying to foreclose. Well, then I'm paying attorneys. Then I got to pay fix and Flipper or you know, rehab crews or wait six to 12 months. Whereas I could have offered up loan mods to half of them and had a performing note start paying me monthly. And then after six months or 12 months now, I get a, it's now considered a reproformer. I can sell that note off at 80, 85 cents of the dollar.

After you.

I'm doing work. Yeah. No attorney fees, some money coming in versus money going out. And that was one of the biggest missed. I left so much money on the table my first two years because I was too thick headed, you know, I gotta foreclose. You're deadbeat borrower. I'm not gonna give you an opportunity. And I'm like, wait a second here, I'm wrong.

Wow.

All right, well that's, that's, that's, that's very interesting. And so you touched on something that. Okay, essentially you're, as I understand it, you have your mortgage originators, your big five, all those people, credit unions, et cetera, et Cetera. And anyone who's had a mortgage knows that, you know, the day you close your. Even sometimes before I've gotten letters, you know your note has been sold to.

Right.

So even if, let's say worst case scenario, I get into one or two notes and I think it's going to be short term and it gets long term. But they do rehab. You modify the loan, you rehabilitate the borrower. Now they're performing again. What market do you then sell them to? Do you sell them back to the banks?

There are some funds that will buy reperforming notes. There's a company out of Michigan called First National Acceptance Corporation. They'll buy reperforming notes. There's some hedge funds are looking for a reperforming note buddies. There's other private investors looking a good return on investment. We do a lot with IRA investors. I mean I got a bunch of notes that were, we've modified the last year. They've been paying on time that I can sell them or I can arbitrage my own funds out and bring investors money in and still make money between what they want to make and what the notes paying. So I got some investors like, I want to make 10% of my money. My great, awesome. I can put you in this deal, pay them 10%, whereas the return is like 35. So I'm still keeping that upper 25%. But now I got my investment back, what I paid for the note. I have an infinite rate of return. And everybody's happy.

Absolutely.

And I'm dancing in grass curd, drinking pina coladas.

And I'm looking at you on Facebook doing it because you're posting.

Yeah, we went to Italy, we went to Europe for three weeks in late May and June, modified six loans. I was traveling, bought another 20 notes while I was on the road. And so that's the beautiful thing about this. I don't have to be here in Austin, in my offices here, the north side to do what I do. I can do it from wherever I want. As long as I got a phone and a laptop with a good Internet connection, then we're golden.

You're golden.

Wow, that's cool.

And this is something where I think this is perfect for a private lender to get their feet wet into. I've always said, you know, I did an episode on if you want to, you want to start being a private lender, loan your money to a hard money lender and make them hold your hand through the entire process, all the paperwork, all the due Diligence. See what they do. And this is kind of on the same thing is just, you know, because I'm. The older I get, the more I don't think there's any passive investment. You should stay away from anything that's passive. So if you're not doing any due diligence, you probably. It's gambling at that point. You're just rolling the dice. However, that's why I like private lending. And I definitely want to talk to you about lending to you here shortly because I do my due diligence and then I step back and oh, that's it. Thanks. Here we go. Do you, you said you have a loan servicer in the office. Is that your own internal loan servicing company or do you still farm out to third parties to collect the notes and give you the money? I'm sorry, Collect the monthly payments and issue the W9s and all that.

Third party. We have a third party does that.

Okay, so that's, that's. I've same thing with a lot of my, my private mortgage notes.

Well, it's a good thing if you're gonna be doing it adds actually more value to the paper. Independent third party who's collecting it and handling all the Dodd Frank regulations and the statements and then collecting it and putting on the amortization escape, you know, schedules and stuff like that. You're doing it yourself. It reduces the value of that paper if I ever have to buy it.

Interesting. Okay. But it makes sense though. I, you know, I've talked to some apartment investors and they've come to me and say, hey, look, we're looking at this property, okay, Lock it up under contract, get into due diligence. Come to find out the owner, it's a sole proprietor, he's been doing the books, right. And it never, it never shakes out. So yeah, it totally makes, totally makes sense that one, it's easier for the lender, you or whoever buys the note or is lending the money to the investor, buying the note. And two, it's. Yeah, it's independent. It's third party. And I could see where it would add value to a note that if I was, if I got in a pinch and had to sell, I could.

See that extra 20 or 15 to 20 bucks a month goes a long way. And keeping the value of the property is it. You got somebody that's third party. It's easy to pull a report from our servicer to see what's been paid each month. I get a spreadsheet every month. I can jump online, print Screen and send it to somebody else. They don't think I'm forging anything or adjusting or as we like to say, cooking the book.

Cooking the book, yeah. Hey, my wife used to work for Enron, so. Yeah, this family is.

Well, your wife's an expert cooker then, right?

Yeah. Here's the funny thing.

Last name is Baker, right?

Yeah, exactly. Here's the funny thing. She was, she was in the tax accounting department and so she actually left well before Enron became the crooked E. But I still, I still like driving down in downtown Houston past the building and just, it just boggles my mind that her, you know, she, fortunately she had very few shares of the stock when it. The loss was very little. But she also didn't have all of her 401k in the company stock.

That's smart.

But nonetheless it was very interesting.

Yeah.

So cooking in the books were. It's funny though, my wife's the tax accountant. Guess who does our taxes, both business and personal.

You do a cpa, that's smart.

Not from. Not much. You know, real estate investors are notoriously cheap. But it's like I told my, of my buddies, he said I can't believe you pay a CPA to do your taxes. I said, I don't. I pay a CPA to sign my taxes and if there's ever a problem, the CPA takes care of it and I sleep at night. So actually I bust on my wife about us having a third party cpa, but does make sense.

Yeah, it totally makes sense. I. You will never go wrong paying for good legal or accounting advice or having those vendors. That's the most valuable lesson I give you. Don't go cheap on accounting, don't go cheap on attorneys. It'll. It'll bite you in the butt in the long run.

I couldn't agree with you more. And you're talking to a guy who's recycled notes or paperwork documents for loans because I got sweet talked into. And usually there's some, there's about an 18 year old involved, something from Scotland that's been in a barrel for quite a while that I get lubricated up and then yeah, I'll drop the interest rate or whatever.

Talking about, are you talking about loans or your.

Yeah, that's, that's how they know, that's how they get me. That's how they get my terms down is they give me good scotch and.

Then, then I'm at, I'm at their.

Mercy, so to speak.

But a good bottle of whiskey or bourbon goes a Long way towards an asset manager too, I'll tell you that.

I was about to, yeah, about to say. But I, you know, having, having made these horrible mistakes and I tell people, don't ever, you know, always look, the borrower is going to pay. And if, if a borrower can't afford three to five hundred dollars for documents, then they probably don't have a deal.

Yeah. Until I had somebody call me today like, I want to do this, but I don't have the money to fly down from Denver to Anaheim. I'm like, what? You don't. Southwest flies pretty cheap. I'm like, I can't make that. I'm like, okay, you're really not an investor then at that point then you're really not. What you just told me all along is not true. So yeah, we're gonna move on.

There you go. There you go, man.

Interesting. Scott, I can't thank you enough for coming on and sharing your wisdom about notes investing and providing it to. This is the first that this subject has been on the private Lender podcast, so.

Well, I'm glad, I'm glad to break.

Your non performing cherry, my friend. Definitely gonna bleep that one out, but it's staying in.

What?

Well, now I'm kidding. But no, I do, I do appreciate. How can people learn more? We're gonna have tons of links on the show Notes Paige. But anyone listening, how can they get a hold of you? How can they learn more about you?

Where are you gonna be? They go out and it was very easy. They pull out their smartphone there. You probably listen on their iPhone right now. Send a text to the number 7020072000 and text the word notes N O T E s. That'll opt you in to a lot of our great training and education. You'll get a link to over 100 hours of videos to help you learn some stuff along with getting a nice PowerPoint kind of the basics, the nuts and bolts. We call it the three Fs note investing, how to find, fund and flip. You can always go to the website weclosenotes.com and check out our information there too. But text the word notes N o T E s to 72,000 and that's the best way to really take advantage of what we've got to offer out there for everybody.

Awesome. Well, look, I had a blast. You're going to come back on. We'll find some more topics and definitely can't wait to share the stage with you again at further future events. And until I See you again, man. Take care, my friend, and happy investing.

Hey, you too, brother. Thanks again as always. An honor to be here. Let me know if we do anything. And hey, everybody that's listening out there, go on to itunes right now. If you got your smartphone, go out to the itunes app for the private Lender podcast and leave Keith a five star freaking review. Everybody do the time. Do it. Trust me, he's busting his butt doing a great job delivering content. The least you can do is leave him a five star review.

I appreciate that. And ladies and gentlemen, ten bucks goes a long way. So that's all I can say. Them bucks, man, the checks in the.

Mail dollar make you holler. See you later.

And there you have it, folks. Scott Carson. You know, I haven't known Scott terribly long, but I can tell you, if my grandmother were still alive, she'd tell you that Scott's good people. And I always seem to have a little too much fun when he's around. And I don't mean drinks or anything like that. I mean just having a good time. He's a good dude and I really admire him for, I mean, what he's done and the system that he's put in place, you know, how he earns his coin and what he's able to teach his students. And, you know, he's, he's well liked over at Quest, ira. So that pretty much meant, you know, sums it all up right there. So what else do we have? Okay, let's see here. By the time you hear this, this will be October. So that means the fourth quarter will be in full swing. And recently I started the foreclosure process on a note that was originated about a year ago, a little over a year ago, just right before Harvey. And unfortunately it's a Harvey casualty. And we've waited this long to allow the guy in the house, the owner, to get back on his feet. And he finally actually we reached out to him, hey, look, we want to modify the loan. We want you. We want you in there. We want you, you know, to still stay. But he's decided to move on. So in order for us to legally take to repossess the house, we have to foreclose. And so that process is starting and I'm going to be speaking on it probably, I'm hoping maybe every other. Every other episode to give you some updates. Texas does have a very swift foreclosure process, one of the quickest in the nation, if not the quickest. So I figure this, that'll be some good Ear fodder for you guys. And it's gonna be, it's gonna be fun, I think, you know, and I'm not gonna, I'll pull back the band aids and you know, mistakes made, but what we can do different next time, so on and so forth. So stay tuned for that. I also like to give a shout out to listener Matt for telling me that I should record more episodes when I'm under the influence of painkillers. And, and that's a reference to last episode, episode 40, when I spoke about title insurance. And to be, to be quite honest, I still haven't gone back and fact checked my own work, so. Or my own, my own dialogue. So if I'm wrong, please let me know. You can email me@keithrivitlenderpodcast.com or connect with me on social media, Facebook, Twitter, Instagram, LinkedIn, BiggerPockets, all that fun stuff. And yeah, keep those questions coming though. I. And comments as well. I appreciate them greatly. And of course, you know, as Scott eloquently crowbar in at the end there, you know, please go rate and review and I'll make a deal with you. Just go leave a rating and a review for me and you can promote your business. I mean, tell me what I'm doing good, what I'm doing wrong, what I'm doing poorly, what I'm doing good, what I'm doing well, anyway, my grammar teachers are upset, but yeah, let me know what you like, what you don't like.

Let me know what you're having problems with. Put it right there.

And seriously, drop a plug for whatever it is you do. Are you a wholesaler? Are you a flipper? Are you a landlord? You buy notes, Are you a plumber? You electrician?

What do you do?

Drop it in there and I'll read it on the air. And this is Evergreen, so, you know, maybe only 2,000 people hear it, you know, the first time this thing goes out. But as this podcast stays out, gains more and more traction, more and more people are going to hear about your business. So by all means, Please use my iTunes rating and review page or this podcast rating and review page as your own personal billboard. Happy to help anybody out. You know, like I said, promote your passion, promote your business or your niche. And you know, I'll read it on, I'll read it on the air. So if I can help you, I will. I'd be more than happy to. And while we're at it, I'm going to ask you guys more favorite please spread the word Connect with me on social media, Facebook, Instagram, Twitter, LinkedIn, bigger pockets or if you need any information, just go to private lender podcast.com and that's going to do it, I think. Yeah, that's.

Your first or the first.

Time we've brought Note investing specifically, already originated Note Investing into, into the lender nation. So I hope you guys enjoyed it and I, you know, happy fourth quarter. Let's round out the year, get our goals hopefully met or as close to as met as possible and let's start looking forward to 2019 and let's put some goals out there. Let's put the, let's put a flag in the sand and let's go achieve and while we're at it, let's go make a little bit of passive income on real estate backed investments. So that's it. I'm Keith, I'm signing off. I wish you guys happy and prosperous lending and investing and I'll see you on the next episode. Take care.

Thanks so much for listening to this episode of Private Lender podcast with your host, Keith Baker. For more great content and to stay up to date, visit Private privatelenderpodcast. Com. If you enjoyed today's episode, please rate and review and we'll catch you next time.