Expected Air Date: 9/22/18
Today we’re talking about note buying.
Great show coming to you today. Scott Carson (aka “the Note Guy) has been an active real estate investor since 2002 and solely focused on the note industry since 2008 where he buys and sells non-performing mortgages directly from banks and hedge funds all across the country.
Scott is the CEO of WeCloseNotes.com and the creator of the Note Buying for Dummies workshop that focuses on the 3 F’s of Note Buying… The Find, Fund, and Flip. He has purchased over a half billion dollars in distressed debt for his own portfolio and purchases assets in over 30 states across the United States.
He is a highly sought-after speaker on distressed debt and was the 2014 Note Educator of the Year. He has also been featured in numerous newspapers including Investor’s Business Daily, the Wall Street Journal, and Inc.com.
He has also helped thousands of other real estate investors come to the dark side of investing by plunging into the world of NPN’s or non-performing notes. An avid sports fan and reader, you can find him home in Austin, Texas when he isn’t buying assets for his own portfolio or sharing his love of the note game.
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Questions@flippingamericaradio.com Tell us where you’re from!
- Alana, Jonesboro, GA “I’m looking at a deal where the owner lives out of state, the tenant is a relative paying well below market rate. He wants her out but doesn’t want to evict his own relative. He just wants to sell the house. It’s worth about 130k. May need 25k in rehab. He’s open to seller financing. I mentioned offering him 50-60k and he didn’t say no. So what are my options or exit strategies?”
- Shamsideen, Boulder, CO “My partners and I are looking at various opportunities, apartments, hotels, and mini-warehouses, to be specific. Can you offer guidance for us as we decide where to put our money?”
Motivational Thoughts for the day
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[0:16] America the show that teaches you how to make money in real estate wherever you are whatever your situation there is an opportunity for you flipping America is sponsored in part by American IRA
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and now you’re sad flipping America guy Rodger Blankenship.
The note guy has been an active real estate investor since 2002.
And solely focused on the Note industry since 2008 where he buys and sells non-performing mortgages directly from Banks and hedge funds all across the country Scott is the CEO of we close notes.com in the creator of.
Note buying for dummies Workshop that focuses on the three F’s of note buying the find the fund and the flip.
[1:21] He has purchased over half a billion dollars in distress debt for his own portfolio and purchases Assets in over 30 States across the United States is a highly sought-after speaker on distressed debt and was the 2014. Educator of the year.
He’s also been featured in numerous newspapers including Investors Business Daily
The Wall Street Journal and inc.com he’s helped thousands of other Real Estate Investors come to the dark side of investing by
plunging into the world of in pn’s are non-performing notes an avid sports fan and reader you can find him home and Austin Texas when he isn’t buying assets where his own portfolio or sharing his love of the note
games that Scott Carson he’s going to be with us today in just a few minutes and we’re going to talk about notes and note buying
this is a topic I wanted to have on the show for a while and Scott’s going to Enlighten us and give us an education and maybe share with you how you can get started in of course,
RF Online will be open and not for active calls this show is pre-recorded but
phone line will be open 404-369-1018 for your questions about notes also you can send us emails about notes to questions at flipping America radio
. I’m sorry.
[2:35] Questions at flipping America network.com actually if you send it to flipping America radio we still have that don’t mean to but it’s questions if flipping America network.com questions at flipping America network.com and
send your questions in or call 404-369-1018 and we’ll get Scott to answer the questions about note buying
there are other ways to contact us of course you can always find us on the flipping America network.com that’s the website you can also find his own face
look at flipping America media,
guess what the word media at the end there but you’ll find this just look for that familiar logo the flipping America media on Facebook and then on Twitter and Instagram just follow us at flipping America and note that you’re going to get a lot of data that we don’t get to on the show weed there just
the alot going on in the world of real estate it’s not a fast-moving business and it’s not an overly dramatic
and it’s not even all that earth-shattering but there is a lot happening in the world of real estate all the time and we bring as much of it to you as we think you can handle.
Or maybe a little bit more than you might can handle but the anyhow there you go
we’re also on LinkedIn and Google Plus we have a profile on house.com for what it’s worth I still am not really sure what that’s worth.
[3:51] It’s the same with Pinterest but we’re there
we’re all over social media got a couple of announcements coming up for you today today as I speak I’m at an event in Atlanta called think Realty if you’re not to think Realty then you missed it.
Makes make your plans go to think realty.com and make plans to come to the next one it’s really a very strong conference and I don’t say that often,
it’s a good strong informative conference they do have a lot of displays and boots and so forth the during the teaching sessions there’s no selling no one’s up there trying to fix their seminar anything like that that it’s pretty cool and very informative
I also want to invite you to come out to to hear me on November 2nd and 3rd at our event called flip starter flip starter is the
put starter is the 8 hour speed course in real estate investing where I teach you,
how to find fun Fix and Flip properties right from the beginning all the way through to the end I don’t hold anything back it’s not an eight-hour sales pitch into something more expensive I’m going to show you how to do it and then 8 hours if
you are inquisitive and motivated and can handle a lot of things maybe you got some experience running your own business it’s
all the information you need it’s an amazing value at $199 but it’s even more amazing because.
[5:06] Right now we have an early bird special going on and if you go
to the website and register before October 6th you can come for $97 97 dollars for 8 hours of instruction to give you a
tool kit to help you start a business that could change your life now I make some promises about flip starter I promise you number one I’m not going to tell you everything you’re ever going to need to know
main reason is I can’t do that in 8 hours promised number two I am going to tell you everything you actually need to get started including some very useful how to
step by step
information pieces and promise number 3 when you come to flip starter I’m going to give you enough information so that you’ll be able to take it and in the next 30 days you could turn it into $5,000 in profit I’m going to show you how
alright so those are my three promises regarding flip starting to go to the website flipping America network.com flip starter or it’s easier to remember maybe just go to flip starter event
dot-com flip started event.com that’s coming up Friday and Saturday November 2nd and 3rd.
[6:16] When invite you also have lunch with me every Wednesday every Wednesday at Huey luey’s Mexican restaurant in on Roswell Road in Sandy Springs you’re ever in Atlanta and you happen to be here on a Wednesday
just come have lunch with us you tell me you heard about it on the show you’re from out-of-town or out-of-state your lunch is on me this lunch is just a.
[6:37] Network Gathering There’s No Agenda other than whatever the people that come to lunch
I’m on their mind most people don’t come every week some people drop in once a month or so we have a few that come every week and you know it doesn’t matter to us who’s there we’re just glad you’re there when you are and so will see you on Wednesday Huey luey’s Roswell Road then
once a month we meet on a Thursday evening on the second Thursday of the month.
We meet and have a networking event we do have a speaker at that one and coming up this month and even though it’s my networking event and I’ll eat it I rarely,
Amber this month in for the October meeting,
I will be speaking and I’ll be giving a talk called how to spot the next hot thing in real estate that’s coming up in October if you want information about these events are local meetup events you can find out on meetup.com
slash flipping Atlanta flipping Atlanta is the local networking group that’s a part of the flipping America family,
couple of apps we have in the app store we have the flipping America app and you’re able to listen to the show.
And access the show notes and listen over and over again and search to the library and look for what you want to hear about and also the property grade app you answer 10 simple questions about the property and the app instantly tells you what you can expect
how to make.
[7:56] Your return on investment you return on cash and then the program gives the project a letter grade using the proprietary flipping America investment property grade algorithm those apps are free in the App Store there’s never an in-app purchase there’s never an upgrade.
It’s free 100% free all the time free and the
do we monetize it now we don’t know how to do that it’s just free it’s our gift to you because we want to help you.
[8:25] All right those are the announcements at the news I’ve got one big email that I didn’t get to on the last.
Let’s chill I think I’m going to handle that now shamsudheen from Boulder Colorado,
my partners and I are looking at various opportunities apartments hotels and mini warehouses to be specific can you offer us guidance
can you offer guidance for us as we decide where to put our money this is probably one of the most unusual questions we’ve ever received here.
You trying to compare apartments hotels mini warehouses and what I would say shamsudheen and it just going to sound like I’m being flippant but I’m not if that’s what you’re going to do then you need to look at Beanie Babies gold precious metals.
Black market and oil Futures gas and oil Futures and it does sound like I’m joking around but my point here is
you’re comparing between apartments hotels and mini warehouses you’re comparing some commercial assets yes they do fall into the broad commercial asset category but
those are very different opportunities.
[9:33] And the way that they are managed and run in the systems that you build around them and I’m not sure how passive you intend to be whether you’re going to invest in a 10-2,
some operating people who know how to run these things or if you’re planning to buy them yourself I can’t imagine
that you’re you and your partners would have the skill set to do any or all of those or maybe you do because none of this is really all that complicated but they’re very different.
And so if I were going to offer you any guidance in this is why we put the question on the show because
there is something here that can probably benefit a lot of people and that is this
a while back I didn’t show call compare everything with everything this is been one of the guiding rules of my life I compare everything with everything it’s just kind of the way I operate if I’m thinking about
investing in this particular thing I’m always looking for other things and folks aren’t let me tell you something I am not married
to real estate a real estate investing if there was something out there that I could do that would bring as much benefit to me and my family
with the you know the resources I have available at my disposal the money that I have and and the time and the knowledge in the skill set that I have there was something else else out there that I could do.
[10:54] I would be doing that and I’m sorry if you would have to find someone else to be your number one
fastest growing real estate Radio Show in America because I wouldn’t be doing it but I haven’t found it yet I haven’t found that opportunity so I am in real estate and when you’re in real estate you just need to find a
particular focus and get good at that I happened to be pretty good at flipping houses but
I also love to hear about the other opportunities and try not to get too much of a shiny object syndrome because I know when you hear Scott Carson coming up in a few minutes you’re going to get.
Shiny object syndrome just like me
but the hey if you guys actually while you’re thinking about apartments hotels mini-warehouses I’d say stay tuned because you probably going to want to get clued in a little bit about note buying and that that’s coming up just a few minutes so.
[11:46] Let me back up and try again shamsudheen.
[11:50] When you’re looking at these opportunities look at the returns what are they going to bring to you that’s the first question to ask.
What will this bring to you in terms of returns Returns on your investment Returns on your effort
Returns on your skill-set Returns on your principles we done we’ve done a whole show about Returns the next thing I would say is
consider your own skill set because you don’t want to sign up for something that ends up being something you can’t or don’t want to do
I have told the story before
we had Gentleman on the show that buys mobile home parks and he doesn’t terrific job of economizing and creating efficiencies in the mobile home parks that may add 15 or $20 per lot
and the bottom line cash flow to the.
[12:44] Mobile home park any turns it from the okay to very profitable just buy my new little engagements and and efficiencies and as I was reading his book on the topic I didn’t finish the book I just put it down in my wife asked why I said
well in order to really do well in the mobile home business when you buy these Parks you have to
really pay attention to detail management and you have to stay on top of that all the time while my wife knows me very well she said oh I understand
and for those of you that don’t know me that well
that’s really not in my wheelhouse I’m not the guy that’s going to stay after the details of management over and over again I want,
get stuff done and I hire people to do that but I’m not the person that’s going to be able to go out and do that so make sure that just got good returns,
and make sure it’s a good fit for your skill-set that’s the best I can give you some today and I wish you all the best folks thanks for the questions and keep them coming.
[13:58] Hey you want to learn how to flip houses I want to show you how to flip houses and there’s probably no one in the country better qualified than me to show you I flip hundreds and hundreds of them.
And I also have some training and degree and experience and education so I could show you how to do exactly what I’ve done hundreds of times don’t believe me.
Head on over to flip starter event.com but in the meantime Give a listen to Pat caywood.
[14:24] Cleveland Tennessee and I’ve been.
[14:28] Doing some flipping since about March of this year and had started with a Nationals program that was very expensive I spent today with Roger Blankenship.
Learning about his program and boy do I wish I’d met Rodger.
[14:46] He has a clear concise program and many tools that are going to be very hot.
[14:52] And starting and managing a program and the mentorship and Leadership and coaching that he saw frame are in value.
[15:02] Thank you so much.
[15:56] Scott Carson welcome to the show
and this is a topic as I said in the opening it’s the topic that I’ve wanted to have on the show for a while and I’ve talked to note buyers and I feel around you know
trying to buy some notes it’s all going to know it’s not really knowing what I’m doing which is kind of like how I got it everything that I do in real estate I just jump in before I know anything and then figure it out as we go and that’s Darley possible that’s why I say you should never pay somebody $30,000 to each other flip a house.
But that’s a different rant for a different day so give us.
Let’s assume that you’re talking to somebody that’s never even heard of this what is note buying.
So if I don’t say this everybody’s in the note business when they believe it or not if you’re paying a mortgage a car payment.
Student loans credit cards whatever if you’re making a payment out to a.
Twitter you’re in the no business you just on the wrong side of the payment yeah what we do is we go out we deal directly with banks and hedge funds.
And we buy portfolios or one-offs.
Mortgages direct from those Banks or does not sure what we’re doing those were buying non-performing notes where the borrowers I stopped making payments for a series of time so we can buy that day.
Play the house we can buy that debt at a substantial discount.
[17:23] Right so then we step into the bank shoes baby come in the bank the lender that point and then we reach out to the homeowners.
In our whole goal is not to really control the property or fix the property our goal is to rehab the borrower that makes sense yeah it does.
So it was just me I’m very familiar with it.
I make sense to me I am very familiar with it but I think the way you explain it would make sense to anyone right Yuri having a borrow or what what are you doing to rehab them are you giving him better habits.
I will try to it just a conversation with everybody in the last 10 years.
Monster jobs they got sick went to the Big D and don’t mean Dallas and you know I’ve been there in the past as well you know I was a deadbeat bar her for a little while over a decade ago when I went through divorce and it sounds like a lot of people in.
When we buy the notes we tried to try to buy occupied ass Exodus much worthless rehab evolve.
[18:24] I’ll recheck the homeowners just like a what happened it’s all so what happened do you want to stay.
In the house do you want to go if you want to stay we can come to some sort of payment arrangement.
In the fact that we bought that debt at a substantial discount usually a $0.50 of what was owed or less uses a lot of flexibility to either modify the loan.
Payment plan on dropping interest rate down for Gibson principal there’s a lot of things that we can do to really great a win-win summary let’s go back he went over that kind of fast you bought the note at 50.
Cents on the dollar fifty cents of the dollar of the property is worth all right.
So we’re buying debt were the borough’s more on the proper Dance Works were buying it at 10:40 $0.50 to the dollar of what’s owed but often well below $0.50 worth of the property. Because it’s that start with the properties.
[19:15] Okay and maybe 45% of what sold as well alright so you’re you bought it you got a lot of room so you once you own the paper you can renegotiate at anything right.
That’s correct you have a lot of flexibility and you have the same rights as the bank has to see if the board doesn’t answer they don’t respond to your letters they tell you to go pound sand.
You then to start the foreclosure process and.
It’s not me going on talkin to borrow it it’s not me being the foreclosure process on the beautiful things about the note business that I’d like differently than fixing flipping houses.
Is I’m at the general manager on controlling my vendors so I have a Servicing Company that’s reaching out to the homeowners.
I’m trying to get them to reinstate their the one collecting payments for me they send me updates of what.
Mike Mike Lara Lara on my files are doing you know what the bar wants to do with this one or what they’re out of the bar is not responding we going to start foreclosure on this then we move it works her knees.
Arteries do the heavy lifting with the foreclosure process.
[20:16] Well believe it or not that’s the way I Fix and Flip houses how could I be eight and you know a powerful influential member of the media and also fixing took as many houses that do this because I have people that do it,
you know what I mentioned to you before we came on the air that I’m going out to visit some of my property this afternoon but you know I have other people that are in those properties everyday,
and I’m looking over a so yeah it’s just a system that you develop and you just have to find the right people that are in the servicing business right so you’re sitting in your home office there I guess and your vast Empire of employees,
I like to run a tight ship yeah I’m here located in Austin Texas,
but 99% of the SSI owner outside of Texas we buy a lot in Ohio and Michigan Indiana.
[21:06] Tennessee I’ve Loved God’s waiting room or is that the other people caught Florida.
Have you been there in the summer time man I have been there in the summer time you want to take a 3 shirt day
too bad I have three shirt Mornings in Orlando in the middle of the summer I can go through to his research just waiting in line for the next ride at Disney World
yeah all right now it’s okay let’s let’s back up a little bit and congrats to you for
the tremendous reach in your ability to do this but let’s go back to the person is listen to the show this curious about this and they’ve got some money and they think they might,
like to buy two or three notes is that even possible to buy them in small quantities
the 10 years ago the banks want you to have two million to 5 billion really looking to do anything but.
Over the last 10 years this whole kind of secondary Market or does it say shadow markets popped up that we’ve made some really good money in.
[22:09] People that get involved at 25 $50,000 I’ll pick up to 3.
Individual no deals we like to call him.
You’re not going to go down to the Bank of America’s the chases the Citibanks in the Wells Fargo’s and walking they say I want to buy a new.
They don’t deal with anyone off the top 10 banks are probably going to sell stuff in the 10 million to 50 million.
Portfolio size but there’s a lot of smaller Regional Banks is last small residential hedge funds that have bought larger portfolios.
Fannie Mae Freddie or any other young servicing companies in other Banks and then they’re willing to chop up their pools,
you’re so someone off the bike that we got straight talk Ross the country that started out buying her first note with their Ira or with their own Sons or even using other people’s money to fund.
Oh that’s interesting you can use other people’s money and that’s that’s a question I want to come back to but I was starting to laugh because.
[23:16] I think if I went into my not to be named huge mega bank and talk to the person there and say I wanted by notes they would look at me and say.
[23:25] What are you talking about they don’t even know that much about your own business and then Amen to that they handle in local branch so if you do go into the small Regional Bank who you going to ask her to speak with,
I would walk into the bank what I would do is I would jump online and their specific departments inside the banks.
Let Halo the asset sales are the note sales and if you get anything I want to write this down at the name of those departments are called the secondary marketing department.
[23:56] Secondary marketing or the special assets Department.
[24:01] About to go by Chief credit risk officers ass up like that but those two primary.
Titles are the of the people that handle the sale of the distressed debt inside the banks and a great way to find the who is that person at your bank is just a job on LinkedIn,
what does a great place to find you type in special assets or secondary marketing manager in the bank that you’re looking for that’s what we do and it’s helped us build a yet
a list of over 5,000 asset managers from different banks and institutions across the country nice okay now I am I want to come back to that to your list but.
I get this question sometimes and I’m going to throw it out to you and its it may seem like a very basic question but the question is the banks are loaning money out of 3% why would I want to invest in something where I’m only going to make 3%.
[24:52] You don’t.
I just don’t buy it if they let something think about you buying another 3% OK Google do some basic math year we get lists all the time from banks that we cherry pick from if some of that 3% we’re not going to pay face value for it.
12% of my money that means I’m at 3% now. I would only offer $0.25 to the dollar.
And that’s the part that people are missing all right people will come to me and say hey I don’t understand how you can make money in real estate is appreciating five or 7% per year in the stock market this better than that and I had to take him to say look we don’t buy it retail and wait for appreciation
we buy discount we make our money on the equity that’s already in that property and.
It’s the same thing as we bought it at discount try to get them Reaper for me.
[25:44] You know great we bought it $0.40 they re performing for 6 to 12 months after that point it’s a canal performing that we could sell that performing at off at 85 $0.90 another hedge fund.
And make that 40 50% difference in the middle of the blower doesn’t perform let’s start the foreclosure process and then.
Charlotte 1885 $0.90 on the Dollar Tree there is an email to investors like you guys or your weekend Warriors or want to overpay for an answer the Foreclosure auction
they’re really your kind of in the rehab business you’re not just rehabbing the borrowers you’re also rehabbing the the notice.
Make that ass at work
and stuff like that I’ve been down that road before Rodger done it did it for years here in Austin other areas just not a big fan of it I love.
What we can do with the distressed debt is for buying local markets and NS I think that’s the biggest thing.
Early on Austin’s always been a very difficult market for investors cuz everything’s always been overpriced when you still flying deals here but it’s a whole lot more work.
[26:54] What I love the fact is I can reach out to a bank or an asset manager or a hedge fund make a relationship in there feeding me Bills every month.
You know I don’t do any direct mail campaigns and not putting up bandit signs I’m not door-knocking anymore.
I just sent an email blast out and let’s start rolling in that we can cherry-pick the deal doesn’t make sense I walk from it and just move on to the next.
[27:16] Yep that’s great alright well we’ve got to go to a quick little break and when we get back I’ve got a list of questions from some notes have been making while we’ve been talkin and Scott Carson
he is the note guy and his website is we close notes.com do I get that right
you got it we close notes.com so go check him out there but the first of all listen to what our sponsors have to say and be sure to
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[31:02] I guess today is Scott Carson he’s with me on a zoom call so if you are listening to this on the show right now or even listening as a podcast with the flipping America app.
[31:14] Free in the App Store.
[31:16] Be sure that you go to our YouTube channel and watch the video of this so you can see Scott’s handsome mug and you can see me the face made for radio and.
Yes so we were talking about it several things here and one of the things that intrigue me.
Was you’ve developed a list of Brokers of the special asset managers of the various Banks and so forth you keep that list to yourself or do you make that available to close friends and Associates.
[31:45] One of the things that we do not Workshop since we show people how to go out and create that list it’s not that difficult.
It’s just that any less though Rodger I’m sure you would you’re just before it’s all and if I consistently inconsistent consistent in your business.
So we reach out on a regular basis you don’t have asset managers that will send me something sad finally like you’re tired of getting your emails here something for you leave us alone you know.
[32:11] So having a list of great enlisted great but you got to put that into action so.
Which people had a great all the time and our workshops and stuff like that and my coaches students to get access to that list as well.
Some people wonder about the Y I would do to provide that and I’m like well there’s plenty to go around I can’t buy all the nuts that are available out there but.
Together we can book me off and buy in bulk and get a bigger discount as well so I’ll what is the competition like out there with other investors in this field.
That’s a good that’s a great question it’s gotten a little bit tighter or the last couple years but I really am myself in a few the other,
no educated. We really believe there’s really only about five to six thousand true note investors out there that are buying distressed debt and they’re not buying it,
in bulk buying a lot of them I buy one or two classes are there for the lowest hanging fruit for like the hedge funds that are well known that are selling stuff.
It’s a little pricier from those you love them or competition but we get list all the time in Friendly’s Banks and hedge funds that nobody else to see it.
[33:20] Yeah we’re not fighting me foreclosure auction buyers we’re not fighting the postcard Junkies you know we’re seeing list 6 to 12 months before whatever hits of the foreclosure auctions or the list and insolence.
So we really have Braille competition from the traditional bastards out there like and I get a lot of flexibility.
Young to get it at a decent price to that makes sense because there’s a lot of competition axe with access to the
there’s a little comparison you’ve got five or six thousand no buyers I guess nationally I lead for different meetup groups here in Atlanta Georgia and we have a combined membership in those groups.
5400 people just in Atlanta.
So yeah the RR arena is a little bit more crowded.
Now you also talked about using other people’s money to buy these notes tell some about how that works.
[34:17] You don’t have Capital you can reach out to other investors who got mice in the silence we use a lot of self-directed IRA funds you know we were very close with Quest Ira out of.
Houston and we work with her brother Ira providers but the only people they’re stealing say whether 7 trillion dollars sitting on the sidelines out there not really making much money.
[34:37] And a deal is a deal if you can walk into an investment club or network is a I’m working on a note you lie I’m picking up this property.
[34:46] I just noticed the borrows a hundred grand on it the properties worth about 80,000 I can pick it up for roughly $35,000 Que pide.
If I can get the mortgage.
In the morning you start paying on time again with the weather existing payment it’s going to be roughly at 20% return to us that I’m looking to split that deal if they don’t.
Zillow foreclosure crossbody M325 Granite for clothes will be into it 4:40 it’s worth 80 we could probably sell it tomorrow for that 70 once before close.
Looking at those numbers it makes sense you know you said you just brakes Effect 2.
Is I don’t like to get into rehab so I can start looking at a proper where we have it it’s not the best use of my funds slows down my velocity of capital how often I can put my gas.
[35:37] That’s why I look at just talking with other people sharing hey what’s going on with your money and how’s it doing so I can offer you double to Triple what you’re making in a money market fund or in,
your bonfire something like that yo would you be interested in in the answer is very often yes I would be yeah yeah all right,
that’s great that’s great approaching and I was wondering if you were going to bring up self-directed IRAs and you did that’s good and so we have a relationship here with American IRA
and the glad to have him as a sponsor of the show and that’s another good way to get connected if you’re listening American IRA has offices in Atlanta Charlotte and,
Asheville North Carolina so.
[36:20] I have a question for you that you may not have expected Bratz man but.
[36:28] 100% of the people that come on this show or I should say probably 99% of the people that have come on this show are doing something that they didn’t imagine when they were younger and so here’s a question I have for you when you were a kid.
What did you want to be when you grew up,
well I thought I was when I was a kid I want to own a hardware store I grew up a hardware store in a small town my dad so
but when I went to high school in the college I always wanted to be the next Dan Patrick next Sports Center
Scott Van Pelt back something like that right exactly but
I’m glad but halfway through my sophomore year on I start realizing how much travel those guys do to get to that point and I like I don’t travel at myself
I went into business and then charged with a business marketing and management.
[37:33] The minor in finance stuff like that I went to the bank inside actually in started working for JPMorgan Chase and then Smith Barney.
Okay well I’m getting off the off the track just a little bit but you asked a question I know I know
I’ll come back to admit it but I just got solo Sports in there you know it’s as we record this it’s late September of 2018 and
you know I really like your coach and what do you think about the prospects I mean this year is not looking so great but how’s the recruiting going.
I think Tommy Hearns going to find job we just beat USC last Saturday night which is a great win for him we’ve got TCU tomorrow he’s on the right track unfortunately coaches don’t get them as long as Alicia’s they should.
Coming in the year to think we’re doing fine right on track we’ll see how it goes.
[38:22] Well he’s a good coach I think I think you got a good thing there and it’s going to be a battle Saturday right yes sir.
All right now so you decided not to pursue a career with SportsCenter or sportscasting and you went straight into business but still that wasn’t probably a straight line to Note 5
something got you out of the corporate world.
[38:47] Just because I know where is a financial advisor at a buddy of mine that I worked with her a couple years and.
They closed the office here in Austin so I went a different route and I went to the bank from Smith Barney I went to the bank and JPMorgan Chase was actually a banker they are and my buddy continue on and he saw the state and Buster’s.
That were traveling the country speaking at different real estate Expo and Circa 2006.
[39:15] He came back to me but yeah I’m doing a lot of Mortgage business I need some help and I
would you be interested so we met for lunch and realize that was something I wanted to do so literally was July 4th 2006 I put my notice in a JPMorgan Chase.
A week later I was in Marriott at a Ron Legrand Summit with 1,500 people doing mortgages the back of it and so,
I learn real estate investing from the back of the house at Lily about a hundred different real estate events.
Commercial mortgages I was for investors and fix the clippers and stuff like that.
I was paying attention to your options and wholesaling and all that good stuff that was being taught the front of the room.
For about 4 years I had a really nice apprenticeship with the sponsoring broker of our mortgage company.
He was big dumb bastard he was grading papers and owner financing do a simultaneous closes and then one course when everything started hit the fan in 2008 2009.
I start seeing the right in the wall I sold my part of the mortgage business off my buddy Boyden and then jump head-first in a real estate investing in.
After about a year to trying to do being a jack-of-all-trades a different things I stop doing that and just focused solely on the stress paper and that’s been the only.
My only focus when it comes to real estate investing for the last 10 years for the most part so it was very interesting back there a lot of the buyers.
[40:42] Iguana weigh the paper so it made for a unique opportunity,
people that bring up that we’re reaching out the bank and asset managers but it was just it was just an interesting time that I called the wild west of the note business back then but there’s a few more people playing in the in the space now has become more attractive is.
Price has gone up an REO buyers have lost it with Tori and all the sudden foreclosures are as prevalent.
People are still losing their homes out there but they’re just not as many I’m at the peak in 2010 we have 15 million homes under water.
Are we still have a number between 3 and 4 million people are still facing foreclosure in the United States is is behind on the mortgage.
[41:22] Hard to believe that it’s been a great great ride the last 10 years of buying assets and we’ve helped a lot of people and we breed a lot of women’s and ours for us and our investors but also.
For the homeowners even when their houses and and give them the get out of a nightmare and recreate a dream scenario again for that dream of homeownership.
[41:43] Yeah yeah and that’s a good thing helping people good thing alright so.
I died I got so many questions about the math I would really like to ask you but we’re kind of running out of time and I’ll try not to do math on the radio because we don’t want to bore driving beat the audience to sleep
maybe we’ll come back to that on a future show you got some workshops and you do some education on this and I want to give you an opportunity to tell the people how they can get connected to you and learn,
how to do this.
Really simple if they’ve got their driving or stopping remember the word notes and OTS if you don’t receive your phone and text the word that notes to Sunny 2007 to Triple zero.
That’ll be often and Dora and do some online training Springs over 80 hours a train there will also send you a powerpoint presentation.
If you go to our website we close nuts.com we host for big online Workshop the year we do everything virtually these days.
Now that way you can watch from it whether you’re on the couch or bed or in the pool wherever we got three and forty workshops we teach us at 4.
4 times a year all from online with you zoom with a great fast but when you have 200 to 300 people it’s a lot more intimate.
[43:02] Expected that sell America.
It’ll knock off 25% off the normal price of that for you guys how’s that sound alright.
[43:15] Yeah I like it flip America that that’s a great combination of words right here on the flipping America show all right so,
just in parting
your opinion about the market look in your crystal ball and tell us what’s happening with real estate as you see it from Austin Texas to that I see a lot of,
property values have been on an increased quite a bit and there’s not really any more place where to go.
Start looking at different markets out there there other out pricing of the middle class you’re going to start seeing more and more foreclosures default rates are starting to creep up a little bit again.
Probably got your check and go down Days Inn Market starting to go long I believe we’re going to see a correction in the housing market in the next 6 to 12 months it’ll last for at least 24 months.
[44:07] It’s not going to be Extreme as hopefully as it was 10 years ago but it’s going to be enough that you’re going to see.
Play the default rate pick up two points from your three and a half 3.6% of America to 6% is what where I’m seeing things.
The most is not just at the housing default rate is also the student loan debt default rates,
that’s going to be big triggers that will affect that the housing market as well to besides people losing their jobs.
I don’t care AG devoted or didn’t vote for President Trump I think there’s some things are going on in the county with job loss of job worth it in the end of the terrorist you are affecting Americans as well.
I really believe it in the middle classes in the lower classes going to get kind of.
[44:59] It is is really getting kind of in a vice grip to financially these days and it’s going to lead to a lot of default rates out there which I like is it gives me a lot more opportunities to buy stuff and and help.
Keep America Young American stay in their homes weekend I was just going to ask you so why are you salivating and that’s it right
our goal is to make America great one mortgage at a time that’s good Scott Carson thank you for joining us today on Flipping America and we hope to have you back again very soon.
[45:31] And stay with us when we get back we’ve got more of your questions
an inspiring thought for the day coming right up too long ago we did a one-day flip starter in Chattanooga Tennessee
and lo and behold one of my old College friends came out to the event his name is Peter Faulkner and here’s what he had to say about the event.
[45:56] Peter Faulkner here I tended a one-day flip starter training session led by Roger Blankenship and I was amazed to see what has happened in Rogers life in the last 15 or plus years.
Flipping over 800 houses in Mendes one day training he told how he did it and what.
Falls the blessings the benefits and how to do it and I was so impressed with how well organized and how smooth the training winners today.
You’re tempted or in courage to go go at was not a bad price and if you get a chance to do it even just to consider invest.
But I just want to thank Rodger for a great day today and appreciate what he’s doing thank you Rodger you never know what’s around the corner
but you can be confident that you’ll be ready for whatever comes your way Legal Shield and ID shield look out for you so you can get back to living life
LegalShield is a prepaid legal service for individuals
businesses for a low monthly rates you get comprehensive legal coverage entire law firm of professionals they can help you with a variety of issues and provide advice whenever you need it.
Protected for a number of legal issues and assistance with common legal need just go to Rodger b helps. Com right now to sign up that’s Rodger b.
[47:23] . com Legal Shield protection for every part of life.
[47:42] Okay we’ve got a question I’m actually bringing this question in from our team right here in the office a lana is a member of the internship program here at flipping America
and that she’s got a deal from driving $4 and on our weekly call last night she brought this up here’s what she says I’m looking at a deal where the owner lives out of state
the tinnitus of relative being well below market rate he wants her out but doesn’t want to evict his own relative he just wants to sell the house.
It’s worth about a hundred and thirty thousand it may need 25,000 and Rehab he’s open to seller financing I mentioned offer him 50 to 60 thousand and he didn’t say no.
He’s thinking about it
so what are my options are exit strategies well you’ve got several options or strategies and we talked about this on the call last night but I thought it would be beneficial to kind of share with all of you too
which when you got a sweetheart deal like this you have so many possibilities you could pay 50 or 60 cash for it you will have to do the,
eviction unfortunately and I would prefer not to evict people when I buy a house I want it vacant I don’t want to deal with somebody else’s tenants
I’m fortunately in the state of Georgia tenant laws very strong that this tenant is on a month-to-month agreement and so that.
And there is no written agreement is just a month to month so probably.
[49:03] You would have to give her a 60 days notice once the ownership changes hands that you intend to move them out of the property and give them a chance I have to pay rent during the 60 days but.
Here you go ahead and give them that notice tell them that their time and now it’s coming to an end then you can fix it and flip it.
But another real possibility is if you’re paying $60,000 we did this meth last night we set it up as a 5 year interest only loan to the gentleman
it was out of state to the owner and that 5 year interest only now that the fair market rent on this house is around $1,200 the
the lady living there is paying about 6:50 on a.
[49:45] So if you bought it for $60,000 and you’re able to leave her there what I suggested to Alana is
talk with her and tell her I am willing to let you live in this house at this well below market rate
under the condition I’m going to put this in writing and I want you to sign a year lease under the condition that
got anything it breaks your fixing it I’m not doing repairs and maintenance because you’re in here you’re saving $4,500 a month so any repairs and maintenance or on you
whatever breaks it’s it’s up to you
and she’ll agree to that let her stay because your payment would be a little over $300 a month for the interest and if you do an interest only loan you going to have some other expenses you’re going to have taxes that you have to pay real estate taxes and you going to have insurance the other thing that I would suggest
to Alana is that you go ahead and buy one of those home.
Home protection plans like up to cover the appliances and that sort of thing the things that break in the house.
[50:49] Because that could cover your CAC goes out alright so do that and then you have a property that right now is Cash flowing
$300 a month and that’s not going to really make you any money if she moves out in a year but it is going to give you an opportunity to have a little bit of income coming in and.
I’m on the backside of it if she decides to move out.
Then you can make 30 or 40 thousand that way so you got those options and that’s a deal that I would certainly do in fact I told Alana if you don’t do it then.
I I probably want to.
[51:28] So that was one question we got that during the call in another one came in from Cheryl who has done an admirable job in our mentoring program internship program and if you guys want to hear what Cheryl has to say about it just go to
flipping America network.com internship if you go to the internship pay as you can.
Seashells come it’s anyway Cheryl has found four properties three of them have already there Residential Properties with three of them have been zoned rezoned.
[52:02] Into commercial properties and we talked a little bit a little while about what to do about them and what cheese discovered so far in a research is.
[52:11] She cannot make any additions or.
Series for playing changes to these houses what’s there can be repaired but even then and we planned this out to her on the call
and she may not be able to sell it and you know it typically when we see a property that’s commercial there’s a house on it and we can buy for a house type price and it’s zoned commercial we tend to get dollar signs in their eyes thinking they we hit the jackpot here but,
lenders don’t see it that way lender see when they get that zoning report back and they see it’s commercial they know that they’re not
probably going to be able to sell that note on the secondary market and so it’s not going to be as attracted to them.
And kudos to Tony lukashevich our local Atlanta coach for knowing that little bit of detail and providing that and that’s really the strength of this call that we do,
it’s not all about what I am parked because everybody on the call bring something to the table and one of our newer students Larry Lucas was on the call,
he just happens to be retired from the city of Atlanta and work in that department and knows all about zoning regulations and requirements and so,
his wisdom was shared as well and so Larry thank you Tony thank you and thank you all for being on that call and that’s a part of what makes the flipping America mentoring program so great in my opinion.
[53:32] The personalized attention the answer to the questions a time to check in a time to be held accountable and there’s always others that know some things that can help you out and
as a family we are willing to help each other out I just love it I love being a part of it and I love to see what it’s becoming so thank you to all of you if you’re interested in.
Inquiring about the internship program for yourself you don’t have to live in Atlanta to do it is certainly an advantage if you do but you can actually be a Minturn working.
at the flipping America office helping us sort through the thousands of leads that come into our office every month and help us by the properties and in the process learn the business and.
Earn your way to pay for your own internship we have several people doing this now and it’s exciting to see the games we have someone new starting on Monday and.
Our goal is to we really need we were thinking about this yesterday.
With all of the leads coming in we still are not getting to everything we really need 20 people.
[54:46] We need 20 people here in the flipping America office would you like to
work in an exciting real estate office that’s not Realtors
we’re not listening properties we are investors buying in volume and selling in volume and if if you think that you would like to work in an office like that and be a part of it now.
I said you don’t have to be in Atlanta how does that work you know a lot of things happen virtually these days
and weekend we got the video training already set up so you go to the training and then we provide the leads for you to start evaluating and there’s a back-and-forth communication that goes on when you get those late evaluated,
but that we won’t hear you ring the bell if you’re in Wisconsin or Seattle or where ever you are but when you find the deal and you let us know
somebody here in Zep negotiating with that and and buying the deal it pays you it pays them and you know we’re all benefiting and lot of times the sellers are benefiting and the new buyers are benefiting
that’s why we call this the quadruple win here in real estate but you can be a part of this team even if you live remotely so all you got to do is go to flipping America network.com internship
and when you get to that page click the blue button.
[56:07] And that’s going to schedule a call that’s going to go to Mary and Mary is already standing by.
To take your call and help you get into the internship program now there is a screening
you know it’s not like getting into an Ivy League college but we do need to know some things about use that that give us an idea that you’re going to work out in this business that you’re actually going to be able to make it
and we’re going to try not to hurt your feelings but if we don’t think this is a good fit for you we’re going to tell you.
And we don’t want to take money from anybody just on hopes and dreams we want to make sure that you have the makeup to make this happen so flipping America network.com internship that’s m e n t e r n.
Ship it’s an invented word yes but it’s Minturn ship and that’ll get you to the page.
[57:07] On Monday I’m going to be talking with my good friend Jim Beach and Jim and I go way back,
we’ve been friends for a lot of years and we’re working together on a project and we’ll talk about that but we were talking this morning about.
[57:23] The whole idea of Entrepreneurship how it
Works how it unfolds are you born into it can you learn it it is there something innate about it or the skills acquired what are the skills what is the mindset what’s the personality makeup.
[57:40] Jim you may know like checking out of Jim beach.com gym is one of the leading entrepreneurs and entrepreneurial teachers in America he was actually an entrepreneur himself still is a Serial entrepreneur and
he taught entrepreneurship at Georgia State University for 10 years and with his students they launched a new business every semester.
And they made money every semester he knows about entrepreneurship he’s the author of the best-selling book.
The school for startups and he’s going to be joining us Monday.
To talk about his life in an ownership and it’s very special project that he and I are now working on together.
That’s coming up in just a couple of days will see you then folks.
[58:52] Brian Tracy says your true success in life begins only when you make the commitment to become excellent at what you do.
[59:00] A great thought brought to you by the foundation for Renewal working together with communities across the country to bring lasting life change and true impact find them on the web at renewal fund. Net.
And as always your gift in any amount is both appreciated and tax deductible will see you soon.