Why You Must Start Contacting Banks Now!

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This is the no Closer 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 panties 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 Nodes, Scott Carson.

Good morning, good afternoon, good evening everybody. Welcome to this episode of the Note CL Show. Scott Carson, as always, excited to be here with you. It's been an interesting couple days. Let's put this going dating back to last week when you had Silicon Valley bank and then Signature bank in New York closing their doors or getting taken over by FDIC bank stocks got hit hard on Monday, Tuesday. Today they kind of recovered a little bit and back normal as beers calmed a little bit in a rational market. But it's funny hearing things out across the other, like the fact that Wells Fargo wasn't allowing people to pull money out of their bank account over the weekend and called it a glitch. That's interesting. Do we think Wells Fargo is up to their funny business like usual? Probably so. But anyway, I will tell you right now, getting straight to the point here, every banker in the country is evaluating their portfolio right now. Everybody is looking at their residential and their commercial loan book, what's good, what's bad, what's ugly. And there's never been a time as we get to the end of the first quarter and we predicted this last year going into the fourth quarter, in the end of the first quarter as opportunities. Now we're, as I'm recording this, this is we're still two weeks out from the end of the first quarter of 2023. It will be another or basically a month out till we get the numbers and then how Q1 shaped up everybody. But I guarantee that is a number those numbers with Bauer Financial or what they end up filing with the fdic, it's going to be very, very industry interesting for note investors. So that's why I'm doubling down the next two weeks, the next four weeks on asset manager outreach. What am I doing? Yes, I'm doing my continued outreach on LinkedIn to Special Asset managers, secondary marketing professionals, whole loan traders, chief credit risk officers, you know, reaching out to 50 to 100 people on LinkedIn through Octopus CRM each day. I'm also pulling up my asset manager list and sending an email blast out the whole list on a regular basis. I'm pulling different lists that we have pulled from different large servicing or large secondary Marketing conventions. And yes, if you've taken my class, you would know how to pull those big lists of first name, last names, job titles, company names and email addresses. And that's one of the big things I'm telling my one on one suits like make sure you follow up with individual emails below. Mass email blast is better than nothing. But sending a personal email to the head of capital markets or the head of secondary marketing or special assets or even the CEOs of these lending institutions has power because everybody is looking at their books and they're like rattle. Even though you could simply say that what happened with Silicon wasn't necessarily a bad mortgage default issue, it was more so with how they allocated their capital into bonds at low interest rates. Of course, with interest rates going up, the values of those bonds depreciated and the lack of deposit coming in. That's why the FDIC went in and shut them down. It's also interesting to see what happened with a signature bank in New York because obviously they got shut down more so with issues and kind of the FTX hangover or the cryptocurrency hangover line of things. But what I found interesting there was an article out Friday afternoon about several hedge funds that were actually reaching out to institutions at Silicon bank who had their accounts frozen and offering to buy their assets or buy their frozen accounts for 60, 70, 80 cents of the dollar. Totally reminded me of Mr. Potter from It's a Wonderful Life, who, Don't worry, George, Banks will be glad to take her. Bring your deposits over, we'll give you 20 cents on the dollar. Totally reminded I, I posted something on that on LinkedIn. Of course, Larry Hoffman says that reminds me of Mr. Potter. So yeah, that's kind of what made me think of those guys, the big funds. But here's the thing. There have been rumblings for a while now in the markets. When you look at major companies like Blackstone and I can't remember what the other company named the big hedge fund in San Francisco that defaulted on a large multifamily trade. You know, multifamily has been one of the peak asset classes for the last couple of years. Really one of the most overpriced asset classes. But if you're getting cash flow and you've got a high occupancy or low, I'm sorry, high. I can see low vacancy factor. Like most of the major cities out there, it's a surprise that these asset classes or these apartments are defaulting. And if it comes down to the fact is that Things are changing in the market and we kind of talked about this before because it's history repeating itself. When I started off as a note Investor back in 2007, 8 and 9, one of the first things I did was I started reaching out to banks, started calling down 50 phone calls a day, dialing 100 phone calls a day. I'm probably gonna be doing a lot of that over the next few weeks and probably live streaming it so folks can watch me do it or we'll do a special class about that. But we were, that's one of the things we were buying. We were seeing 20, 30, 50, 100, 200 unit apartment complex. Even 300 was the most, the biggest one we'd ever bought. Struggle as they ran into rate spike or the need to bring 10, 20, 30% cash to the bank to write down their loan to get it back to 70% LTV. As values change, cap rates change. If your net operating income changes, your profits change, that reduces the value, reduces the cap rate. And you have an issue where you've got to bring money to the table to make the bank happy. Otherwise they're going to do a default. I would go back and watch the Night in America episode I did with Credit IQ last year, how Credit IQ is able to track default rates on commercial properties, specifically multifamily, mixed use and whole smorgasborg commercial assets out there. I'd be willing to bet they've got a lot. They're seeing a spike in defaults in the last six months. So these things lead to opportunity. Now you guys may reach out to me today. Hey, I want to buy off market multi, multifamily. Look, you're not going to. Anybody that's got some money is be gobbling up to sell that asset class if they're buying it at a discount. Okay. This is why buying the note makes a lot more sense because we're buying at a bigger discount. And you can kind of control that process of whether a you're going to foreclose or deal with cash for keys that the borrowers can't refinance. That that's the opportunity play is to take over some of these assets and put in your own management class. You'll see that some storage stuff, you're going to see that some mixed use, you're going to definitely see that it's an office space. You just got to be very careful of the office space because you got to know what's going on in your market. Is it oversaturated like some of the Bigger cities out there. Is there a big need or can you pivot that asset class into something that is needed? You know, we've highlighted in the past how several executive offices parks converted to self storage units or office self storage where they filled up with office furniture from the businesses that are going out of business. You know, big box stores are struggling, malls are definitely struggling. There's a lot of commercial assets out there that are struggling that aren't on the from Wall Street. They're on with your smaller regional banks that are struggling. That's why some of those stocks were hit hard because that's the quick knee jerk reaction to a lot of things like what happened with signature and SAP. Okay, but look, this is, this is an opportunity. This is the time to double down in marketing as people are a little nervous, a little scared. Every asset manager is going to be looking at their portfolio the next two, three, four weeks and seeing what can we move our books that will help us get healthier. They may have healthy, but every bank I know has some non performing stuff on their books. So they got some stuff that's got some hair on it. All right. Tom got some ugliness that they need to move. It may not be the most amount of assets, but these are the times to act as they says. Warren Buffett said years ago, when everybody's running one direction, run the opposite way. Okay? If you've been sitting on the sidelines waiting to take action, now's the time to get in the game. Now's the time to really take action and get the ball rolling in your note business. I mean, I had a guy today who's been trying to find deals in San Antonio. He's been trying to find deals in Dallas. Can't find them what he used to. And so he finally said, I've been wanting to do this for a while, but I've been putting it off because I've been lazy because I've been able to find onesie2z deals here. I'm like, well the time is you gotta go, get out and start harvesting. You gotta start planting some seeds and making some things happen. But this is a great time to do it. Just a quick pointer. Our three day virtual workshop. We host that once a quarter. It's coming up in three weeks. You can check it out at Note buying for dummies.com it's 9.97 for you in a spouse. Love that you take that class. Great time to dive in and get your feet wet because there's so many amazing deals that are already starting to pop up. We're seeing tapes, we're seeing servicing companies, we're seeing asset managers. We've seen an influx of people call me, hey, what are you buying? You know, that's. And that's the people thing. This business isn't so direct mail driven. It's really not direct mail driven at all. I had a conversation with a guy today. He's like, well, I want to send out letters to people that have originated owner finance. That's great. You can have that low return. I'll get a higher return of my email blast and my LinkedIn connection. So I'm doubling down on asset managers. You should be reaching out to them too. This doesn't mean walking to your local bank of America or Wells Fargo. And I speak the bank president. Most VPs in a bank are just a. It's a, it's a title, it's a facade title. I was a VP at Chase Bank. Woo. Vice President, Whoopi freaking Duda. Didn't mean I could make any decisions. It means I didn't even know where the bank notes were. We're on the origination side of the deposit sides. You've got to go up. You've got to reach out to special assets, secondary market. Reaching out to the corporate offices. If you've got a bank connection, not just a local bank president is going to open a checking account for you, but Sonia upside in the management, CEO, coo, you know, chief operating officer, capital market, secondary market, special assets, one of those. It's worth reaching out and saying, hey, what do you have in your books that you're looking to get rid of that, you know, are you looking to tidy up your books? Let's talk. Because I'd be willing to bet that here, this next six months, they definitely want to get the stuff off their books. Because the small, you know, especially commercial banks, they're holding commercial asset classes. It's going to get rougher than before. It gets better. And many of them would be willing to make deals, probably, like I say, sweetheart deals that you're not going to see except once every few years. So that's the big thing. That's part A reaching out to asset managers. The second part is doubling down your marketing to raise capital. There's been a lot of scared money in the markets the last year, two years. It's time for you to find the deals. And these are the opportunities to put people's money to work. You ain't got to give them a great return or out of the park return but give them a fair return, 6, 7, 8% depending on what they bring to the table, passively for 24 to 36 months. Set your deals up to be at least, preferably three years or longer where you're holding that capital. You can always cash your money out if you close the deal out, sell it off, foreclose and stuff. But if you re regentrifying an asset, modifying, restructuring that loan you want to build in that, that ease to have that capital working for you for a period of time. Because guess what, most people have money, it's an ira, they can't do anything with it anyway, actively, it's got to be passively. You might as well put it on autopilot form to get rock and rolling. So I just wanted to share those two big nuts. Obviously, doubling down our marketing to asset managers across LinkedIn emails and direct emails and even phone calls. And two, reaching out to asset managers. I mean, one thing, I'm not asset manager, sorry, IRA investors we just recently pulled, we, we took a list of the top 25 counties in Texas and we did a quick search for three names on the county records. The appraisal districts made it really low hanging for well out of those top 25 counties we found over 2,000 IR investors, names, addresses. And now we're about to do the skip tracing part to find phone numbers and email addresses for those. And so that's something that we're really doubling down to, to raising capital here. A lot of capital in the next six months to take advantage of what's available here. In the same time, we're working through about a dozen notes, about $250,000 in funding, which equates to roughly about 35 cents on the dollar or 40 cents on the dollar of UPB. So we're getting some pretty steep discounts already. So if you're interested in finding out more, feel free to reach out to me, scott@weclosedones.com or book a call at talkwithscottcarson.com but now's the time. Talking to bankers and talking to investors. Get the deal done. You control your destiny. Now is the time to make some hay. Now's the time to quit saying, oh, I'll get into it, when I'll get into it. Now's the time to get into it. Because if this is, if I think back to history, if I had really started doing this back in 2007, early 2008, full time, I've been a whole lot different asset class and it's the same thing I plan on buying a whole lot more assets this time around than I did last time and I really see some opportunities in the non performing notes side. There will be some opportunities in the performing side scratching debt stuff but the real big bang for your buck is going to be in the NPN side. So come on join the sexy side of real estate. Come on join sexy side of investing and become a note investor and hopefully we'll see one of our classes or a workshop or just keep listening to the podcast and as always guys if you're listening make a comment let me know you're watching. I'd love if you left me a five star review on anywhere that you listen or watch the podcasts or make sure you hit subscribe to our YouTube channel at Weclosed TV but go out take some action buddy and take some action. You're likely bound to see some action and we'll see at the top. Bye.

Sam.

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