Note MBA

The 5 Best Ways to Lose Money in the Note Business   Intro   #5 - Investing Your Last Dollar Twofold -- you have to keep money on hand for holding costs and workout expenses. If you have $50k to invest, you better not buy a $50k deal or you are going to stuck holding that deal forever. Your servicer’s kids need to eat too, you know.   You also do not want to invest the last of someone’s savings. These will be the investors that constantly want to check in and see how things are going. They need to know their last pennies are OK so they need to hear — repeatedly — that all is well. You want the guy with enough invested overall that by the time he gets around to checking in with you, you’ve already emailed him an update. Then once he’s sure you’ve got it together, he brings you more $$.   #4 - Sloppy Due Diligence We all know where to start -- beds, baths, square footage, sale comps… But there are things you could be overlooking that might not be a big deal if you budget for them or might make your deal a total loss:   Do you CALL on the taxes? County websites are not great, even if some are better than others. You cannot be sure that looming tax certificate or tax deed sales are posted. You also cannot be sure that the county website details what city taxes, school taxes or even local sewer charges might be delinquent. You have to call and you have to ask the right questions. Do you call code enforcement to see if fines are accumulating? I’m not sure everyone understands how quickly these charges can get out of control. We are currently foreclosing on a FL condo that has had a torn screen on the patio for years. Her outstanding town lien is over $600k. (We’ve been assured that since the town has not had to actually spend money on the issue, it will be wiped out with the foreclosure. I’m choosing to believe that until proven otherwise.) Other issues — like forcing the town to come mow the lawn — are easy fixed even though you don’t yet own the house. I’d much rather pay $100 a month during foreclosure to have the lawn mowed than get a $5000, earning more interest every day, bill from the city. When you check condition on Google, do you zoom out to see if there is something unsavory near the house that will negatively affect its value? Do you know how hard it is to sell an REO close to a sewage treatment plant? Do you want to worry about what the heck is in that weird green pool of something down the street? It's no news that foreclosure happens and you want to take back an asset you can actually sell. Have you checked to make sure the borrower name matches the current owner’s name? If it doesn’t, it might have gone to tax sale. Or the HOA might have already foreclosed. If the new owner is a beneficiary of the original owner, there could still be some probate issues. No one needs a distant cousin 700 times removed to put a cloud on title. If it’s a condo, have you checked to see if there is a rental or age restriction? This will make it harder to sell the asset if you take it back. Do you check Pacer no matter what the tape says about their bankruptcy status? Even if they actually aren’t in BK now, if they filed previously, the case information will be available and you can get great insight into their life at that time vs. now. It’s a great window into why they aren’t paying. Do you check county records to see if the borrower owns any other properties? This is where a deficiency judgement might be a great play. There are different opinions in our space about filing for deficiency judgements so this may not apply to you. If the borrower works with me, there is no way I would even consider a judgement. But hostility, lying, forcing me to evict you? I’ll do it if I can collect.  If they own other properties — their own home or other rentals — there’s my money, assuming that state allows me to file a judgement. Do you have your attorney review the collateral file BEFORE you purchase the loan? Collateral custodians do not understand the legal nuances that each state enjoys. Even if they find a gap in your assignment chain, they can’t recommend a fix for it other than using their expensive, pay even if we are unsuccessful document management process. Not only can your attorney find issues, find cures for those issues, and tell you how big a problem any unresolved issue might be, they are going to recognize issues that are unique in their particular state. Without question, you will pay more money for an attorney’s file review. But if an extra $100 keeps you from throwing your money away on an uncollectable deal, it’ll be the best $100 you ever spend. A quick example. I was reviewing a deal in Ohio -- a first on a typical 3/2, 1500 sq ft single family home. A husband and wife were on the deed but only the husband was on the mortgage. For the newbies in the room, that’s not a deal breaker as long as the non-borrower spouse grants permission for their ownership interest in the home to be used as collateral. The wife had signed to give her permission so I checked that off the list and moved on. Everything else was fine -- the assignment chain, the note and allonges, servicing history, even the entire loan app with all it’s disclosures and documentation. I was ready to close and had my funding set up. All that was left was sending the wire. And then I got the call. The language that was used when the wife approved the mortgage was incomplete. Apparently, in Ohio, spouses (both men and women) have something called a dower interest -- beginning forever ago when a wife came into a marriage with a dowery. And apparently, the approval has to specifically address the dower interest and this one did not. Worst case scenario, I wouldn’t have been able to take full ownership of the house. I’m not sure exactly what you do with 95% of a house. My attorney saved me from a huge headache that a collateral custodian would have never found. #3 -- Accounting Accounting in the note space can be such a torture. We’ve all dealt with that deer in the headlights look when explaining note investing to a potential funding partner. We shouldn’t have to deal with it from a professional. Grasping the concept doesn’t seem to be a matter of intelligence or education but rather being able to put aside what you currently know about real estate investing long enough to see a new path. And accountants, either by birth or by training, aren’t great at putting anything aside. As a client, you really have to walk them through a few deals before they get it. And take it from me — unless you personally know a note investor that has used this accountant, don’t believe them when they tell you they have experience with note investing. They certainly don’t all lie but putting a one off seller finance note that has never missed a payment into the system is a lot different than trying to book 100s of semi performing, went BK, paid every third month for a year, finally foreclosed but now have to evict kind of deals. Exaggeration affects all professions. If you need an accountant, there is a guy who presents at different note conferences you might consider. He’s not particularly good at answering questions from the audience but he could be a fantastic accountant. His firm is large and there is nothing necessarily wrong with with staff accountants but the head guy’s understanding of the notes space does not necessarily transfer to his staff. You have no idea if the junior accountant you’ll be assigned to is any good let alone trained or trainable. If you are interested in talking to them, I’ll be happy to give you their information off stage. But you have to promise me that you are going to press them to make sure the staff member assigned to you either knows note investing or is willing to be trained on it. Another headache is the fact that when someone has a great accountant, they really have to keep that on the down low. I’m currently still testing the one I’m using but let’s say I was comfortable enough to recommend him. What if every investor at DME suddenly calls him during tax time? Would my returns ever get done? And done efficiently and in a timely fashion? Until there are more hours in a day, passing this particular resource along to everyone does make your life more difficult.   That’s why I think your best option for finding a good accountant lies in your network. With almost everything notes related, you need a group of people you can count on for advice and good recommendations. If my guy turns out to be good, I’m certain he can handle #2 Tunnel Vision/Inflexibility This issue can affect your business in many ways. When you decide you will only invest in one market or only invest in one type of deal, you always limit your deal flow. Currently, there is a remarkable number of tapes flying around but prices are pretty high and quality is kinda low, making it tougher than usual to find a good, solid deal you know will make your investors happy. If you have a really narrow focus, you might find yourself out of deals. You need to explore different note deals (1sts, 2nds, contract for deeds — performing, non-performing), different markets (judicial really isn’t so bad if you have patient investors and holding costs built into your model), different real estate deals (you end up with an REO from time to time so how about starting with one? You usually note yourself into a deal — how about noting yourself OUT this time?) or different asset classes (have you checked out commercial?). You can also try finding new deal sources (if you’ve always bought from hedge funds, have you tried calling banks? Current investors? Looked online?). When deal flow changes, you have to change with it or it won’t be pretty. Another inflexibility we see amongst note investors is a hard focus on purchase price. Don’t get me wrong — you’ve gotta know your numbers. But you have to make sure you are hard and fast on the RIGHT numbers and flexible on the others. I confess — this was a big one for us. First, the prices some sellers are looking for — and unfortunately, some of the newer investors are willing to pay — have gotten crazy. There’s not enough room in a note deal to pay almost 80% of value because you really have no idea what the inside of that house is going to look like. You need that buffer. But how do you find your absolute highest % of value you’ll pay? Well, it’s not like I did at one point and pull it out of the air. “I absolutely, positively will not pay over X% of value!” Is a statement that can get you stuck. Because ultimately its not about price. It's about your ROI. Let’s say your seller counters at 60% of value. If you have decided that 60% is just nuts — with a few rounds of “that seller is out of his freaking mind!” — you may be walking away from a good deal. Did you run your counter through your ROI calculator? Is your return still at or above your target return? Then why would you walk away? No one wants to overpay obviously but prices are what they are. Deal flow is what it is. You pay what you have to pay to get the results you need. What’s your alternative? Sit around waiting for lower prices while your investors put their money in other deals? Do that for too long and you’ll be out of a job. Taking that a step further, what if that new price lowers your expected ROI to just under your usual target. I’m talking 2% off, maybe 5% off — not cutting it in half. Do you immediately say no? Or do you take a beat before you decide? This has been an issue Chase and I have dealt with frequently. If I’m going 50/50 with my funding partner, an ROI of 20% is hard to sell, especially as a one off and especially to investors in this room. But if keep turning down all of my counters, I lose credibility with both note sellers and my investors. I need both to keep coming to me, not looking around this room for other investors who might be able to close. That means I have to consider changing the deal split. If I take less so that my investor gets a great return and then brings me more money, have I really lost anything? In this 20% example, say I go 14/6. My seller is happy. My investor is happy. And it’s not like I’m out on the street. I’ve just made an investment in both relationships and still got paid a return on funds I didn’t even have in the deal. Note investing is a numbers game so if my return on 1 or 2 deals out of 20 dips a bit but my business overall is stronger, it’s a definite win. Honorable mentions -- vetting, education Vetting Not vetting your investment partners. This holds true for both the active and the passive side of the transaction. I know you want the money for your next deal but do you really know the person you are taking it from? I’m not talking about the investor questionnaire and the 5 touches you need to do to keep the SEC happy, although those are obviously important. I’m talking about what it’s going to be like to have this particular personality in a deal with you. Are they going to call every day to see what’s up? Will they respect your knowledge and experience when it’s decision time or will there be a lot of second guessing and repetitive questions? Likewise, are they going to be so hands off that you can’t get a hold of them to make sure you are both on the same page? If this person seems annoying before funding, they aren’t going to get much better after funding. Obviously, you won’t become BFFs with every investor but the reality is, a bad investor can make even the most profitable deal torture. Hard as it is to imagine, you could actually turn someones money down. On the flip side, for our more passive investors and the newbies who want to learn by partnering on their first deal, what kind of vetting are you doing on the guy you are giving your money to? Charisma won’t keep your money safe. Excitement and energy are not synonyms for effectiveness or focus or even character. A wonderfully detailed story about how a great a deal went could be just that — a fantastic story. Could have been someone else’s deal or it might be total fiction. Your due diligence cannot stop at the deal itself. The best ways to vet your asset manager finding someone who has actually done a deal with this person and see how it went. Go online and look for reviews. They are harder to find than reviews for an Instapot but they are there. Start by searching Google with the term “I invested with” and his or her name and see what pops up. You can do the same on Bigger Pockets. You can also pick the largest counties in the state the investor lives in and see if any liens or judgements have been filed. In general, we do more research before purchasing a television set than we do before handing over our savings. Don’t let that be you! Education — While note investing is a lot harder than some people make it sound, you probably could learn it all by yourself. Lots of us write books and articles, maintain a blog, record a few videos — put out a lot of content that could help someone start from scratch. But that takes an incredible amount of time and energy. And it’s isolating — you don’t meet anyone who is learning alongside you compare notes and bounce ideas off of. Wouldn’t it be much easier to dive into a formal note education and speed up your learning curve? Yes, it will cost you but so will taking a bath on deals you bought before you knew better. And your network? With many programs, your access to other investors explodes and you can watch, listen and learn from so many more people faster than you ever imagined. And there are many options out there — choose the one that fits your learning style and pocketbook best. Time really is money so if you shorten the learning curve, you’re investing sooner and better than the rest. #1 Not acting like you are running a real business While some people are operations and systems focused and others find that painful, you really do need to have a system in place to manage your note investments. There is a lot of detail and paperwork in every deal and if you can’t keep on top of it, you’re going to lose money. In the beginning, your workouts will simply take longer because you won’t have the information you need on hand to make decisions quickly. As you progress, you’re going to miss nuances in the data that you can use to make sure you don’t leave money on the table. Of course, your systems are going to evolve over time. The spreadsheet you use for your first 2 notes is going to look a lot different than the software you are using by your 100th deal. But you have to keep the business part of your note business in mind as you grow to avoid chaos. Because as you add another deal here, 2 more there, maybe another 5 a little while later, you feel the need to keep it all organized looming. Are you going to manage that need thoughtfully as you go along or are you going to keep putting it out of your mind until it blows up and all your deals are in limbo for a bit while you try to dig yourself out of the chaos? This also applies to processes. Some elements of the note business are pretty repetitive. Reviewing a collateral file. Boarding a loan. Vetting an investor. Adding force placed insurance. All important tasks but things you eventually could do in your sleep. And what happens with repetitive tasks after a while? We get sloppy. We get busy and don’t focus like we should. And then we miss things. What if you documented the process and then followed a checklist every time? If you’ve got 10 things to check off while reviewing a file, are you just going to ignore step 6? And what about when you finally hire an assistant? Training — and trust — are tough. How much easier will it be on you if you can look over their completed checklist to see that they covered it all? A thoughtful management system — with appropriate checks and balances — will help you function as a real business and not just a hobby. Aol email addresses Not putting your face on LinkedIn Using FB for business but having your cat as your profile picture Not managing your relationships

147: Note Investing to REO & Finding Yields In Different Markets

Endure the monotony of success, according to Gary Keller that is something that sets winner apart from everyone else. "The number one reason most people will fail, it's because they are unwilling to endure the monotony of success." Robby talks about it at the top of the show, but there is no question that 2017 was one crazy year. We experienced some tremendous opportunities for growth and education through some hard knocks. And though we are definitely grateful for that. We're also grateful for the other opportunities that came our way as well. So, let's dive into the first episode of 2018. Setting 2018 Up For Success If you've been apart of the Note MBA community you know transparency is important to us. We love that we get an opportunity to speak to you, where you're at in your life and business. And we take it very seriously, which is why integrity and transparency are so important to us. In this week's show, we bring some real heartfelt content to you about where we are right now. Around 2 AM on Tuesday before the show goes live this week, Robby recorded a brief, high energy message about where we've been these past few months. 2017 kicked us in the knees a bit - to phrase it lightly. But, we're here, and we're grateful.  Goal setting shows have always been special for us around here, and they've been a fun look in for y'all as well. I'm sure with Robby and David out this week, there will be more goal chatter in the episodes to come. But, for now, let's dive in on what I've got lined up for the year.art a capital fund, who else is there to call but Bob Repass. So, they've been running that operation since about 2012. Endure The Monotony Of Success For this year, I'm doubling down on my reading goal for last year. For those that don't remember, I decided that in 2016 I had read too many books. Which I know might sound crazy. However, that is how I felt about the consistent striving for more people have been driven to regarding reading books. I felt that I wasn't really giving myself to time digest and implement in a way that was really impacting my life. Fast forward to this year and I couldn't have been more right. The experiment to read less but implement more worked extremely well in 2017. So, I thought why not take it one step further. Instead of 3 books, I'll only do one book. And since our Note Investing Academy Book Club book of the quarter is The One Thing, I'll make it that book. In making that decision, I might've changed the path of my life forever. And I mean that in the best way possible. Take a listen to this week's show to find out what I mean. That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com. Listen & Watch this Week’s Show to Learn: Are You Committed To Endure The Monotony Of Success How To Properly Write Your Goals Why Setting Activity Based Goals Will Change Your Life What One Book I'm Reading This Year Upcoming Events & Real Estate Travel Plans And much more! Featured on the Show: Note Investing Academy The One Thing Bullet Journal Best Self Journal The 4-1-1 Finding Your Purpose Figures And Graphs for The One Thing Note MBA Facebook Page Due Diligence Pro Hardwiring Happiness Listening Options: Subscribe via iTunes. Listen on Stitcher Radio. Right-click and “save file as” for direct download. Or click here to get sent to the top of the page where the on-site player is.   Thanks for listening to our show! We’ll be back next Wednesday morning. Cheers, Chase & Robby

Bob Repass is a 25-year veteran of the seller finance and note investing space.  Over his career, he has purchased over 40,000 performing and non-performing mortgage loans totaling over $2 billion in volume. He brings a tremendous amount of expertise to show, and we really enjoyed talking with him during the expo - and on today's show. [smart_track_player url="http://traffic.libsyn.com/notemba/NMBA-Episode-145.mp3" title="145: Buying $300 Million A Year In Notes & Note Expo 2017 Recap with Bob Repass" artist="Note MBA" social="true" social_twitter="true" social_facebook="true" social_gplus="true" social_linkedin="true" social_pinterest="true" social_email="true" ] Bob Repass Bob Repass has had an impressive career. Even more impressive is how quickly he rattles off many of the highlights during the interview. Some of the highlights he mentions are starting with Associates Financial Services in 1997. From there he mentions moving on the Bayview Financial, and that is where the fun starts. Bob casually mentions buying over $300 million a year in seller finance notes. I couldn't let me just walk past that - which I've been told says more about me often times. As an aside, I find it incredibly interesting when you're in a conversation with someone, especially when others are present, and someone drops some knowledge like that. Then everyone just smiles and nods like they know full well what that feels like. It's ok to be in awe of something you haven't experienced. It doesn't make you seem like less of a business person to ask questions about things like this. That is my opinion at least. Rant over. So, he moves on to buying a tremendous volume of deals over the course of 8 to 10 years. Then when Eddie Speed wants to start a capital fund, who else is there to call but Bob Repass. So, they've been running that operation since about 2012. Past, Present, & Future Framing up Note Expo 2017 was entirely focused on the past, present, and future of our industry and the market. The biggest takeaway was the shift many of the bigger players see market headed. During the event, there were numerous panels and presentations about what different people were doing cradle to grave with their deals. Which lends itself to many different talking points. Obviously, if we start with the cradle piece of that analogy, we can get an idea of what kind of deal these people are primarily focused on, and where are they getting them. From there we can go through potential workout strategies on deals, all the way through to full disposition. That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com. Listen & Watch this Week’s Show to Learn: What It Feels Like To Go Through Over $300 Million In Loan Acquisition If You Don't Have A Seat At The Table, You're On The Menu Interviewing A 25 Year Veteran In Note Investing If You Have A Big Checkbook You Can Go Buy The Market Upcoming Events & Real Estate Travel Plans And much more! Featured on the Show: Note Investing Academy CFPB Woes Recent Foreclosure Data Note MBA Facebook Page Due Diligence Pro Hardwiring Happiness Listening Options: Subscribe via iTunes. Listen on Stitcher Radio. Right-click and “save file as” for direct download. Or click here to get sent to the top of the page where the on-site player is.   Thanks for listening to our show! We’ll be back next Wednesday morning. Cheers, Chase & Robby

Evolving as an investor is the best way to keep yourself ahead of the competition. And though we've discussed on the show before that in the note investing space people can have a spirit of coop-etition, there is certainly still an element of competition in there. Which makes evolving as an investor an important endeavor. [smart_track_player url="http://traffic.libsyn.com/notemba/NMBA-Episode-144.mp3" title="144: Evolving As An Investor" artist="Note MBA" social="true" social_twitter="true" social_facebook="true" social_gplus="true" social_linkedin="true" social_pinterest="true" social_email="true" ] Evolving As An Investor As we get closer to 2018 you know there is a goals episode on the horizon. However, there seems to be some more pressing issues at hand. During some recent conversation both online and off, it seems too few are paying attention to all the macro and micro issues within the note investing space. Just to name a few, the recent rumblings at the CFPB and early numbers coming out about foreclosures/defaults headed into 2018, are two macro issues you need to keep an eye on. And that's just two! There are many more where that came from. There is a double edge sword thing happening here in the note space. Everyone wants to talk about how great it is to be the bank - which it is. Though, they fail to see how important all the data points from a macro economy perspective can affect their business... you know, just like a bank. And on the micro side, we've been blowing the horn about proper business management, organization, and systems for the better part of 2017. We've gotten our fair share of emails about how we sound like a broken record from time to time. And that's fine, we'll continue to talk about because it matters. Running a tight ship, paying attention matters. Doing the right thing is always the right thing. And lastly, like we mentioned many moons ago, it's ok to pivot from time to time. If you have a great wholesale opportunity come across your desk, do the deal. Got a good lookin' development deal? You might want to do more than just "consider" it. That's what evolving as an investor is all about. Remember Amazon started as just an online book seller. It's unlikely a bit of evolution will kill you, but not doing it, just might. Note Investing Contracts That header could've also read real estate contract, or just contracts. The number of times I've read through a contract and seen errors is bananas. One that we went through this week though was something else. This was a seller many listeners might know. This is a seller with a good reputation - or at least a decent one. It didn't matter though. His contract was junk. If you haven't been burned from not reading a through an entire contract, line by line, congratulations. It's one of those lessons that seems to catch everyone at least once. And I've seen too many bad ones in the space that I'm surprised we haven't covered it on the show before. With all the sellers and potential buyers you plan to do business with, please... please read the contracts you're given thoroughly. The one we cover on this week's show had some unreal errors and was so totally lopsided in favor of the seller I'm surprised he's made it this far with it. And I know some people that have touted buying from this person. Which can only mean one of two things: he thought he could pull one over on us or he's been pulling one over on others. Either that, or he accidentally sent us a very old contract from 3 years ago... that he just had laying around... I guess. That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com. Listen & Watch this Week’s Show to Learn: The Importance of Properly Reviewing Contracts Why You Need To Be Evolving As An Investor What We Did For Thanksgiving A New House-Hacking Project Upcoming Events & Real Estate Travel Plans And much more! Featured on the Show: Note Investing Academy CFPB Woes Recent Foreclosure Data Note MBA Facebook Page Due Diligence Pro Hardwiring Happiness Listening Options: Subscribe via iTunes. Listen on Stitcher Radio. Right-click and “save file as” for direct download. Or click here to get sent to the top of the page where the on-site player is.   Thanks for listening to our show! We’ll be back next Wednesday morning. Cheers, Chase & Robby

Your first note investing deal can be daunting as hell. Have you gotten yourself set up with all the right vendors? Have you fully research things like foreclosure timelines in the market you're investing in? How long did they say the service transfer was going to take? Wait, what's a service transfer? All of these - and admittedly many more - are important questions to review as you start note investing. During today's show David breaks down some items currently going on with his first note investing deal. Your First Note Investing Deal So, David can now finally answer the question, "What was your first note deal?" It's a 3 bedroom, 2 bath in Ottawa, Kansas. Right off the bat this is an interesting deal to look at because certain parameters. Most notably is the small population of just under 13k. Most of the time I like to see over 35k, but it might've been due to familiarity with the area or it was just a steal of a deal. It'll be something I'll follow up with on a future call for sure. Another interesting twist early in the game on this asset is that the borrower is deceased. So, the first order of business - aside from getting the service transfer done and getting docs in order - is to TLO an possible next of kin. TLO is a service you can use in your business to obtain important information about your borrowers. They've also dealt with some assignment of mortgage issues on the file thus far. Note Investing In Equity Deals This past week we had another swing and a miss on potentially buying a pool of loans. This time around the reason we couldn't purchase was due to huge equity deals in the pool. Originally we thought we'd be the ones nixing the deal due to being uncomfortable with the level of equity in the pool. However, it turned out that the seller just wanted too much for the deals. One of the major reasons people recommend that avoid deals with equity, or at least substantial equity, is because the pricing on that loan is going to be higher. Also, you tend to encounter whole exit strategies being taken out of the equation. So, the general rule of thumb is to avoid them in the beginning to avoid higher pricing and getting yourself hamstrung into an exit strategy you didn't want to take, or it being the only one you an take. That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com. Listen & Watch this Week’s Show to Learn: A Major Bank Once Again Offering Zero Down Mortgages Brief Note Expo Recap, More To Come Note Investing In Equity Deals Deficiency Judgements in Kentucky Robby Has A Loan Mod Mediation, Can't Wait To Hear About It And much more! Featured on the Show: Note Investing Academy Zero Down Mortgages Big Live Success Business Event Note MBA Facebook Page Due Diligence Pro Hardwiring Happiness Listening Options: Subscribe via iTunes. Listen on Stitcher Radio. Right-click and “save file as” for direct download. Or click here to get sent to the top of the page where the on-site player is.   Thanks for listening to our show! We’ll be back next Wednesday morning. Cheers, Chase & Robby

Boots on the ground is a phrase you're likely to hear quite a bit in the military and in real estate. And sometimes it hard to tell which group takes it more seriously. Boots on the ground is what we say in the real estate space when we're referring to having a solid group of referral partners in place in a particular area.  Boots On The Ground On a recent trip to Ohio I got the opportunity to establish some more boots on the ground contacts. Well, I tried at least. Before heading out we gathered some names of some local contacts to meet with during the time in Dayton. Some stood me up, others never got back with me. David mentioned on the show that they've had issues with flaky people in the area as well. The reason for the trip was to handle some recording issues we had with the county. Apparently the phrase, "the right hand not talking to the left" was invented in Dayton - or more specifically, Montgomery County. The issues we've had trying to get a deed recorded remotely for the past several months has been absolutely comical. All of which came to a head when I had the pleasure of dealing with it in person. During the trip I also drove assets from some bank and hedge fund contacts, and I took a look at some assets for a few fellow note investors. Once all that work was done, I took some time to drive multiple top zip codes in the Dayton area to get a better understanding on where we should be looking for deals. And so we can better communicate with those boots on the ground contacts we'll be working with - whenever they decide to call me back. Note Expo, Selling Around You & Big Live Success We've gotten a few emails about whether we're heading out to Note Expo, and the answer is yes. If you were on the fence, we'd love to see you come out to the event and say "Hi!" Don't forget about Robby's life and business coach Michelle Humphrey. She has another Big Live Success event happening in November. This event is something you can attend to really get your mental game on point. We've heard feedback from a few different members of the community that have either gone to this event, or hired Michelle to coach them, that have blown past roadblocks and driven some serious success. Lastly, on the week's show we talk about a seller, selling around us on a few deals. Many it was an opportunity to hear how other people handle this situation, and whether or not they've encountered it before, or regularly.  That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com. Listen & Watch this Week’s Show to Learn: The Importance of Boots On The Ground We Are Headed Out To Note Expo The New Book Robby And I Are Giving Away Why You Should Eat At Red Lobster On Your Next Note Road Trip Being Sold Around And much more! Featured on the Show: Note Investing Academy Note Expo Big Live Success Business Event Note MBA Facebook Page Due Diligence Pro Hardwiring Happiness Listening Options: Subscribe via iTunes. Listen on Stitcher Radio. Right-click and “save file as” for direct download. Or click here to get sent to the top of the page where the on-site player is.   Thanks for listening to our show! We’ll be back next Wednesday morning. Cheers, Chase & Robby

Buying an entire hedge fund tape sounds really exciting - and maybe a little scary. Recently, with many of the pricing issue we're all seeing in the market, we've decided that buying an entire hedge fund tape seems to be the only way to get the deals and pricing we want. On today's show we talk about our recent at bat trying to do just that. Buying an Entire Hedge Fund Tape We've heard a decent bit of grumbling in the market about pricing - we've even talked about it on the show before. And if we're being honest, we've done some belly aching ourselves. However, belly aching isn't going to solve the problem. So we've been game planning and strategizing on what we can do about it. Recently, the thought of buying an entire hedge fund tape is one of those ideas we landed on. Now buying an entire tape isn't something new. People have been buying entire hedge fund tapes since the 1980's. We even have some close contacts that have picked up entire tapes - or pools the size of an entire tape. If you've been in the busy long enough its likely you've even bid on an asset or two and lost on those deals due to someone buying the entire thing. We recognized a tape that might fit the bill. We did some initial high level due diligence, and things looked good. We knew bids would be due soon, and coming in with an offer on the entire tape was a stick we hadn't swung before. So, we decide we'd do a bit of formal due diligence on the tape to make sure we knew what we were getting into. After some time spent on that the tape was moving from good to great - there looked to be some real cherry deals. The day before bids were due, we got some follow-up form some boots on the grounds, and took one more look at each asset, line by line, and things fell apart. And it was not for us trying, that's for sure. It was heartbreaking to find ourselves in another situation where we'd done a ton of due diligence only to not have a bid accepted - in this case because we weren't submitting one. However, we carried forward some valuable lessons. We became increasingly more comfortable with the idea of buying an entire hedge fund tape. We locked down some "must have factors" for an entire tape purchase to make sense. And a few other items. It's a numbers game, and we'll keep stepping up to bat. Note Expo, Big Live Success & Ohio We've gotten a few emails about whether we're heading out to Note Expo, and the answer is yes. If you were on the fence, we'd love to see you come out to the event and say "Hi!" Speaking of event, Robby's life and business coach Michelle Humphrey, has another Big Live Success event happening in November. This event is something you can attend to really get your mental game on point. We've heard feedback from a few different members of the community that have either gone to this event, or hired Michelle to coach them, that have blown past roadblocks and driven some serious success. I'll be out in Ohio this weekend. So, if you live around those parts and want to meet, or if you have an asset or two you want me to take a look at, send me an email, and I'll see what I can do. That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com. Listen & Watch this Week’s Show to Learn: The Event Coming Up With Robby's Coach Michelle We Are Headed Out To Note Expo Buying an Entire Hedge Fund Tape And much more! Featured on the Show: Note Investing Academy Note Expo Big Live Success Business Event Note MBA Facebook Page Due Diligence Pro Hardwiring Happiness Listening Options: Subscribe via iTunes. Listen on Stitcher Radio. Right-click and “save file as” for direct download. Or click here to get sent to the top of the page where the on-site player is.   Thanks for listening to our show! We’ll be back next Wednesday morning. Cheers, Chase & Robby

Delinquent tax proof of payment strategy was a hot topic over on our Facebook page. Robert wracked his brain for a strategy and system to improve the way we handle providing proof of payment on delinquent taxes. And it would appear as though we've made some headway.  Deal Closings and Course Launching It's been a ruckus past few weeks for the Note MBA team. We've had several closing, some of them from note deals - including a bit of wholetailing - a lot deal, and David closed on his flip. We take some time diving into the numbers and strategy of David's flip. One of the key takeaways is that David did all the work himself. He even admits in the show that this probably wasn't the best strategy. After doing a little happy dance, he talks about how he picked it up as a HUD home. In the beginning he was living in the home while renovating, using a house hacking strategy.  He bought the home for $180k, after $20-25k in repairs, he was able to sell it for $283,000. So, first off, solid freaking deal. This obviously doesn't include his time costs. However, it gave him an amazing education in what it takes to do a quality rehab job. Going forward he'll be able to take that knowledge into numerous future deals. Today is also the launch of The Note Investing Academy. This is, without a doubt, going to be the premier course for note investing education. We've been planning it for months, working with the input of numerous other investors - including two additional "instructors" for the course. The course itself currently includes over 60 video modules that cover everything we could think of, and have encountered in the business. And that word currently is important. We know that things changes, and that there is always something for to expound upon. So, one big aspect of the course is community feedback. We're committed to listening to feedback from everyone that takes the course. We will continue to add to the course, and improve upon it as time goes on.  We're very excited about the the launch, and if you pick it up in the first 5 days you'll get $500 off. Delinquent tax proof of payment strategy It all started when Robby needed to get proof of payment over the FCI, so that he could add as a corporate advanced expense delinquent tax payments. It was like banging your head against a wall to get the proof over to FCI. Enter into the picture the delinquent tax proof of payment strategy. With the payment slip, proof showing on the county website FCI still wouldn't move on it. So, Robby thought of a genius strategy to overcome this issue. He sent a handwritten note, a self addressed & stamped envelope, and a forever stamp to the county. And wouldn't you know it, it worked. To see how we've moved to systematize this take a listen to this week's episode, right around the 21 minute mark. That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com. Listen & Watch this Week’s Show to Learn: Closing Deals All Over The State Of Florida A New Note Investing Education Course Debuts An Interesting Facebook Content Strategy Delinquent Tax Proof of Payment Strategy And much more! Featured on the Show: Note Investing Academy Simon Sinek Video David's Facebook Page Note MBA Facebook Page Due Diligence Pro Hardwiring Happiness Listening Options: Subscribe via iTunes. Listen on Stitcher Radio. Right-click and “save file as” for direct download. Or click here to get sent to the top of the page where the on-site player is.   Thanks for listening to our show! We’ll be back next Wednesday morning. Cheers, Chase & Robby

Wholetailing might be a phrase you're unfamiliar with - heck, you might think I spelled wholesaling wrong. And though wholetailing and wholesaling might sound similar they are very different strategies. Deciding to wholetail a deal might end up saving you some serious time and money. Let's get into it. Wholetailing & Note Investing The best definition for a note deal worth wholetailing is an asset that isn't busted up enough to wholesale, but isn't nice enough - or rehabbed enough - for a retail sale. When it comes to NPNs it's likely that many of the homes, even owner occupied homes, will have a decent amount of deferred maintenance issues, or outright problems. Some of these issues are worth getting fixed, some might even be worth doing a full rehab on - there's no question about that. We've talked extensively on the show about deals we've done full rehabs on. Recently, we've also been discussing some of the major issues that can arise from rehabbing from afar. A solution like wholetailing brings new light to a deal that might look like a time and money pit. These are the classic handyman specials you see advertised. And though wholetailing a deal will almost always bring in less money, it's worth evaluating exactly what you're missing out on. One area many people forget to appropriately allocate resources towards is holding cost - and for that matter speed. Often times just exiting a deal a few months earlier than you would've otherwise can turn the tide on what is quickly becoming a tough ROI situation. Hardwiring Happiness "By taking just a few extra seconds to stay with a positive experience—even the comfort in a single breath—you’ll help turn a passing mental state into lasting neural structure." This is a direct quote from the book Hardwiring Happiness. During the Distressed Mortgage Expo this past weekend I had the opportunity to meet a fantastic listener, Steve.  When we had time to chat Steve didn't want to talk real estate. He didn't want to talk note investing. He wanted to talk about our show with Dr. Dan Wurzelmann. It was our episode on how to handle overwhelm in real estate. More specifically it was our episode on mindfulness, meditation and mental health. There aren't too many real estate groups, YouTube channels, or podcasts willing to broach a topic like that, but we did. And Steve wanted to commend us for it.  However, more to the point, he wanted to talk to me personally. "You breathe from your mouth when you begin to struggle, don't you?" "Don't take even a second to accept gratitude in, do you?" The questions came fast, and they were as gentle as they were sharp. He cut right through me. Listen to this week's episode to hear how the full conversation went. That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com. Listen & Watch this Week’s Show to Learn: Wholetailing In The Note Investing Space Why And How Wholetailing Could Save One Of Your Deals What Chase Thought Of The Distressed Mortgage Expo One Of The Most Interesting Conversations We've Ever Had At A Conference A Great New Book Recommendation And much more! Featured on the Show: Due Diligence Pro Hardwiring Happiness Listening Options: Subscribe via iTunes. Listen on Stitcher Radio. Right-click and “save file as” for direct download. Or click here to get sent to the top of the page where the on-site player is.   Thanks for listening to our show! We’ll be back next Wednesday morning. Cheers, Chase & Robby

138: Note Investing Insurance

137: On The Horizon

Building an ROI calculator is something every note investor should do. Last week Robby gave David some tough love for not having one done yet - among many other things. So, this week we discuss the process David is going through to build one, and some of the challenges he's encountering. HUD Home Flip David recently finished his flip. He put it up on the market just a few days ago in fact. This was one of the items on his list that Robby was asking him about during last week's tough love session. Here are some shots of the flip, in case you wanted to check it out. I completely forgot to commend David during the show, so I'll take some time and do it here. He didn't know Robby was going to bring up all the items he did last week. I'm sure he was as surprised as I was. However, this didn't lead David to shy away and lick his wounds. He dug in, and went to work. Not only did he get everything done for the flip, he was also up until 3 am working on his ROI calculator. As David continues to grow his real estate business, specifically into notes, I'm stoked that he's coachable and willing to take action! Building An ROI Calculator Robby asked David last week, "You've mentioned needing an ROI calculator before, and that you were working on one. Are you building an ROI calculator?" David said no, he hadn't built one yet. For his part, he didn't give many excuses about it, and said he would get on it. So, over the past few days he's been building an ROI calculator. David sent his new minted ROI calculator over to me. And, if I'm being honest, it's rough. However, I expected that. Mine was rough for a super long time. The design David has put together is rather interesting. It makes his calculator resemble a tape, which I find interesting. We cover some of the items you'll want include when building an ROI calculator. The first item you'll need is the UPB, the unpaid principle balance. If you're investing in non performing notes, this should be a given. From there, you'll want to include some valuation metric. Whether this is exclusively valuations from places like Trulia and Zillow, or straight from a realtor, you'll need to have a field for value. After that, you'll need a field for your bid price. Now, that might now be what you actually get the note for, but you'll want to have that so you can get as accurate a picture you can of the ROI expectations. We discuss more of the items you'll need when building an ROI calculator in the show. That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com. Listen & Watch this Week’s Show to Learn: David Has Finally Starting Building An ROI Calculator We've Got A HUD Home Flip On The Market What You Should Include In Your ROI Calculator And much more! Featured on the Show: Due Diligence Pro David's Newest Flip Project Cal Newport Deep Work Your Life in Weeks Multiple Streams of Income by Robert Allen Listening Options: Subscribe via iTunes. Listen on Stitcher Radio. Right-click and “save file as” for direct download. Or click here to get sent to the top of the page where the on-site player is.   Thanks for listening to our show! We’ll be back next Wednesday morning. Cheers, Chase & Robby

Do you have an accountability partner? I'll be asking you this question again. This is one of the areas I think too few people focus on. After much real estate talk, Robby as a tough love session with David about some of the things happening in his business. We've had these back and forth sessions before, but this is David's first one. We want to see him win with his business. So, we breakdown some accountability for him. The Road Show Never Stops Thanks to the wonders of the internet the note investing road show never has to stop. We'll be uploading some great videos Robby shot while he was traversing the country. We'll be releasing those videos later this week and early next week. They are fantastic examples of the simple marketing style videos you can make for your real estate investing business. He's not hard selling in any of them for people to send him capital. He's not holding some check, while he's headed to the bank. He's in front of real assets, we actually own, talking about the portfolio. And it doesn't matter how great your Photoshop or Canva skills are. When it comes to creating marketing pieces for your business, nothing is better than a case study. However, there is one exception, actually standing out in front of the damn house. It's why we're talked so much about the importance of visiting your assets whenever possible. Do You Have An Accountability Partner Sometimes the universe just places situations in front of you. If you're a Note MBA Insider, if you get our Monday emails. this past Monday you received a message of self awareness and accountability. One of the primary reasons for my recent move was to address this issue in my own business. Without any prompting Robby took an opportunity to get after David on where he's been slacking. Depending on how comfortable you are with confrontation the segment could be tough. However, you've known us long enough, and you've seen Robby and I go after each other enough, to know we do it with the right attitude. We want to see David succeed. We want to see him build the business he claims to want to build. And doing things like that can require outside help. So, do you have an accountability partner? It might be that missing link to achieving what you're after in your life and business. That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com. Listen & Watch this Week’s Show to Learn: An Update on The Atlanta Fire Property Follow-up From Last Week's Mid-Year Goals & Routine Episode We Almost Had Another Borrower Call In Robby Gives David Some Tough Love Accountability Feedback We've Got Road Trip Videos Headed Your Way And much more! Featured on the Show: Due Diligence Pro Triggers by MArshal F Your Life in Weeks Multiple Streams of Income by Robert Allen Listening Options: Subscribe via iTunes. Listen on Stitcher Radio. Right-click and “save file as” for direct download. Or click here to get sent to the top of the page where the on-site player is.   Thanks for listening to our show! We’ll be back next Wednesday morning. Cheers, Chase & Robby

134: Mid-Year Goals and Routines

Supreme court adopts new bankruptcy rules that could affect our entire industry.. or not. No, they probably will. Though it can be hard sometimes to parse out all the doom and gloom messaging from many different news outlets. Bankruptcy itself isn't going away, so that isn't the major change. What we've been served with, however, is a new set of rules to play by. We talk about some of them in this week's show. Supreme Court Adopts New Bankruptcy Rules Finally, after several years of debate, major changes have been approved that will have a profound impact on consumer bankruptcy cases.  On April 27, 2017, the Supreme Court of the United States, through Chief Justice John Roberts, submitted to Congress amendments to the Federal Rules of Bankruptcy Procedure which set forth extensive changes dealing with forms and filing of claims.  The proposed changes will take effect December 1, 2017 and will significantly change how creditors should approach consumer bankruptcy cases (Chapter's 7, 12 and 13) and will require crucial adjustments to conform to the shortened timelines for creditors to take action, particularly in Chapter 13 cases.   The most noteworthy changes are as follows: Rule 2002: Notice to Creditors The amendments to this Rule now require that creditors are to be provided at least 21 days' notice of the time fixed for filing an objection to confirmation of a Chapter 13 plan and be provided at least 28 days' notice of the confirmation hearing in a Chapter 13 case.  Neither of these notice provisions existed prior to the proposed rule change and each provides creditors with advance notice for the date of the scheduled confirmation hearing and the deadline for filing an objection. Rule 3002: Filing of Proof of Claim The amendments to this Rule may have the biggest impact on creditors largely due to the shortened deadlines for filing claims and the requirement that all creditors—including secured creditors—must file proofs of claim within 70 days of the filing date of a Chapter 7, 12 or 13 case or within 70 days of the date of conversion to a Chapter 12 or 13 for the claim to be deemed allowed.  The new Rule does add a provision that allows a creditor the opportunity for an extension of time of up to 60 days to file a proof of claim upon motion and order if the creditor can establish that it did not have a reasonable time to file a proof of claim because the debtor failed to timely file the list of creditors and addresses or because the notice was mailed to the creditor at a foreign address. The Rule does clarify that a lien that secured a claim is not void should the creditor fail to file a proof of claim. There are a lot more notable changes, you can see a few more here. Shrinking, Aging Skilled Labor Force This is easily one of the best articles I've read on Bigger Pockets in the past year - if not ever. It's a well researched piece about the aging skilled labor force in America. Those blue collar jobs many young people no longer care to do. The author begins the article with a great story about start from the bottom - insert Drake joke here. And weaves that into a statistic laden romp through our future. A future rife with higher prices on everything from homes to consumer goods. All because no one wants to do the hard blue collar work anymore. And truthfully, I'm not entirely sure no one wants to do it. Personally, I think we just haven't communicated all the benefits of these jobs to would-be job holders. I'd love to hear your feedback on this topic, and the entire show in general. That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com. Listen & Watch this Week’s Show to Learn: Note Investing Due Diligence Where To Go To Check On Foreclosure Status, Other Than The Attorney Trust, But Verify Techniques To Manage Shitty Days or Weeks And much more! Featured on the Show: Due Diligence Pro Big Changes To Bankruptcy Rules RealtyTrac Newsletter July Investors Bought 1/3 of the Homes In Dallas Underwater Homeowners Are Drying Up Listening Options: Subscribe via iTunes. Listen on Stitcher Radio. Right-click and “save file as” for direct download. Or click here to get sent to the top of the page where the on-site player is.   Thanks for listening to our show! We’ll be back next Wednesday morning. Cheers, Chase & Robby

Note investing due diligence has been a huge focus for us recently. With the addition of David to the team, it's been important for us to get him on top of his due diligence game. This is where you have the chance to make or break the profitability of your business. It ins't a cliched saying for no reason, "you make your money on the buy, no the sell." Due Diligence Pro Updates For those fantastic listeners that use Due Diligence Pro there has been some updates to the app. If you use the software on Chrome, it'll update automatically. If you're a Safari user, you'll need to log back into the website and get the updated app. We received an email from a user of the app, and he mentioned wanting to see Wikipedia added to the list of sites used in the app. I've never thought to use Wikipedia for due diligence. So, I went a few days using it as I reviewed some assets this past week. The best I could figure was two different uses for Wikipedia. One would be for demographic data, and the second would be for isolating potential up and coming markets. For demographic data I use http://usa.com. Either way, this needs to be one of the next additions to Due Diligence Pro. Note Investing Due Diligence We continue this discussion of due diligence by reviewing some specific note investing due diligence items. We've been analyzing our portfolio to see if there is any deals we can move. One of those deals is currently going through foreclosure, and we needed an update on the taxes. So, I tasked David with going about getting an update on the foreclosure situation. To do this he needed to go through the clerk of courts to get the records of what has happened with the proceedings. After getting that information, we need to verify the details on the taxes. Using DD Pro we pulled the tax data that the county was reporting online. However, one of the ethos of the show is trust but verify. With that in mind, we called the the county to verify the taxes. That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com. Listen & Watch this Week’s Show to Learn: Note Investing Due Diligence Where To Go To Check On Foreclosure Status, Other Than The Attorney Trust, But Verify Techniques To Manage Shitty Days or Weeks And much more! Featured on the Show: Due Diligence Pro Wikipedia USA City Data Listening Options: Subscribe via iTunes. Listen on Stitcher Radio. Right-click and “save file as” for direct download. Or click here to get sent to the top of the page where the on-site player is.   Thanks for listening to our show! We’ll be back next Wednesday morning. Cheers, Chase & Robby

Note investing road trips can be a vital component to a thriving investing business. Or at least that's what the travel loving Robert Woods and David Glinkski keep telling me. While we took off the week last week for the July 4th holiday. Woods and Glinski were traversing the Midwest in search of real estate deals. [smart_track_player url="http://traffic.libsyn.com/notemba/NMBA-Episode-131.mp3" title="131: Note Investing Road Trips" artist="Note MBA" social="true" social_twitter="true" social_facebook="true" social_gplus="true" social_linkedin="true" social_pinterest="true" social_email="true" ] Note Investing Road Trips Over the July 4th holiday Robby and David did a 6 state note investing road trip. They drove through Florida, Georgia, Kentucky, Tennessee, Indiana and Ohio. This road trip took them by numerous assets that we own, or have acquired with JV investors. And assets that are on active tapes. Only one home on this particular trip was rough, and according to David many of the assets they saw were worth taking a look at as investments. As far as David is concerned every investor needs to make road tripping part of their business. Getting out and really putting your eyes on some assets can help you recognize some home run areas around the country. And if you're picking just a few markets or pockets to invest in, it makes total sense to familiarize yourself with many of these areas. In fact, they made right party contact with one of the home owners on a deal Robby invested in. And she's ready to start making payments, and is glad to have someone to talk to on the other side. Orlando Note Meetup We've got a Note MBA Meetup group in Orlando. If you're in the Orlando area and want to connect with other note investors, check it out. David had a meet up with this group a few days ago, and aside from the general success of the event, many people posed some great questions. The first topic David mentioned that was covered was pricing. This is something we've covered on the show before, but it bares repeating. We have the ability to control market forces with our dollar, no question. However, if every seller from here to Seattle wants to move their NPN assets for 58 cents on the dollar, your 50 cent on the dollar model isn't going to work. It might eventually get back down to that level, but until then you're going to either need to adjust your model, or figure something else out. Just because you think the asset prices are too doesn't matter. What matters is your ability to adapt to the changing market environment. We also cover questions about being licensed in Georgia, and how to talk to real estate agents regarding potentially rougher parts of town. That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com. Listen & Watch this Week’s Show to Learn: The Orlando Note MBA Meetup Is A License Required in GA Are Assets Currently Priced Too High Why You Need To Consider Note Investing Road Trips And much more! Featured on the Show: Due Diligence Pro The Note MBA Meetup Listening Options: Subscribe via iTunes. Listen on Stitcher Radio. Right-click and “save file as” for direct download. Or click here to get sent to the top of the page where the on-site player is.   Thanks for listening to our show! We’ll be back next Wednesday morning. Cheers, Chase & Robby

Reviewing your first note investing deals can be a daunting task. You finally get a tape in, you load up Due Diligence Pro, and you get down to business. Before you know it, you've isolated a few potential deals, then what? If you're like some of the folks that send us emails, or our very own David Glinkski, you might have to overcome that moment of fear. Is my team in this market set up? Do I believe the BPO? Can I trust my ROI calculator? Let talk about it in this week's show. Road Trip Robby After spending some extensive time out of the country, traveling, working on a movie out in California and many other things. Robby is finally ready to get back to doing his thing in the real estate space. First off, similar to Fannie Mae selling off a large tranche of deals, we are looking to do the same. These are NPLs that no longer fit into the portfolio we're trying to maintain. If Ohio is a market you've been looking at investing in, or if you're already investing there drop us a line at ask@notemba.com. We'll be looking to offload these deals soon. As part of this offloading Robby is planning another road trip. We'll be working to bring you some videos and content from Robby out on the road. One of the things that's bringing all this on is a transition towards some higher value notes and development deals. Fear not is you're still in that lower brand price bracket! Between Chase and David, there will plenty of deal talk in that price range. Reviewing Your First Note Investing Deals David spent some time these past few weeks to review a tape. This was his first attempt at doing this on his own. We wanted to be as hands off as possible, however, when he had a question we took the time to answer it. One of the issues he had to get straight first was his own strike price. The strike price on an asset usually refers to the lowest price a seller is willing to take as a bid. Well, I advised David to come up with his own strike price. What is the lowest ROI he's willing to take a swing at? From there he was concerned about whether he'd be able to manage an asset outside his comfort zone. Robby mentions a crucial beginner technique of selecting your top 5 markets you want to invest in. This will help you narrow down where to invest, build your team, etc. David didn't make any bids this go around, but I'm confident he'll pull the trigger soon. That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com. Listen & Watch this Week’s Show to Learn: Robby Is Headed Out For A Road Trip Through Ohio Why David Didn't Pull The Trigger On His First Note Deal How We're Planning to Improve Due Diligence Pro What Are Your Top 5 Markets The Numbers On Our First CFD Deal And much more! Featured on the Show: Due Diligence Pro Fannie Mae Selling Off A Large Tranche Of Deals Listening Options: Subscribe via iTunes. Listen on Stitcher Radio. Right-click and “save file as” for direct download. Or click here to get sent to the top of the page where the on-site player is.   Thanks for listening to our show! We’ll be back next Wednesday morning. Cheers, Chase & Robby

When to start looking for JV investors? It's a question that has come up regularly in the Note MBA inbox. So, we decide to tackle this topic on today's show. We also cover Nevada as a super lien state, using your reserves to invest in deals, we take our first call-in question, and more. It's a freaking jam packed episode! If you dug the call-in segment let us know. We can potentially work out a better system for taking the calls, and bring more of that kind of content to the show. We absolutely loved it. And an future call-in would need to work on matching Iris' energy - which is gonna be no small feat. When To Start Looking For JV Investors There are numerous angles that need to be addressed when you ask this question. One of the first hurdle for many people is fear. When to start looking for JV investors, often time comes down to a person's fear about losing money. And don't kind yourself, as we discussed in last week's show, fear can be an important response to stimuli. However, fear can also be unnecessarily debilitating. Once you've run the numbers, and you're as sure as you can possibly be expected to be that they are accurate, then it's time to move forward. If you have no desire to expand your business past your personal wealth, or family money, then this might not be something that will ever come up for you. However, it's worth noting that for people like Warren Buffett almost their entire wealth has been derived from using outside capital. Only you'll know when it's time, but I'd say error on the side of sooner rather than later. And make sure that the first deal is one that has a ton of room. And be ready to make mistakes. Super Lien & Deficiency Judgements One of the best parts about doing this show is getting to talk with a wide variety of investors from all over the country. Mostly those conversations happen over email or on Facebook - until we make it out to an event and meet everyone face to face. Today we decided to change that up a bit, and we took our first call-in question from an investor. Now, if you want to get technical this was a call-out, but let's not argue over semantics. Either way, it was an awesome opportunity to talk with an investor that wanted some guidance on an issue out in Nevada. She wanted some clarification on our exepeirnce with deficiency judgments and super lien states. One interesting part about this deal we discussed was the fact that not long ago we discussed some talk of Nevada no longer being a super lien state. So, we'll need to have an attorney from NV on the show to fully clarify, however, it might no matter on this particular deal because there might be some grandfather. That's a big maybe though. All of this is because, as the investor notes, all the super lien, HOA foreclosure hoopla has become more and more convoluted as time has passed. That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com. Listen & Watch this Week’s Show to Learn: When to start looking for JV investors Why It's Important Not To Use ALL Your Money For Investments What's Your Number What's A Super Lien State And Why It Matters Can An HOA Foreclose On Your Deal And much more! Featured on the Show: Due Diligence Pro Super Lien Status For Nevada & Being Effective Not Just Efficient Bourne Valley petitioning to the Supreme Court Court of Appeals rules that Nevada HOA liens do not supersede first mortgages Listening Options: Subscribe via iTunes. Listen on Stitcher Radio. Right-click and “save file as” for direct download. Or click here to get sent to the top of the page where the on-site player is.   Thanks for listening to our show! We’ll be back next Wednesday morning. Cheers, Chase & Robby