Notes Section

If you want to take advantage of the incredible opportunity with performing and non-performing notes in this market and start to create income and build wealth, we recommend watching this video.

We interview Eddie Speed about how you can Get Into Real Estate Investing With No Money & No Credit.

Contact Eddie at Noteschool
http://bit.ly/noteschoolboomer

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Real Estate Investing with no money or no credit as a senior or baby boomer

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Real Estate Investing with no money or no credit as a senior or baby boomer

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Real Estate Investing with no money or no credit as a senior or baby boomer

00
this is boomer income ideas dot-com and
0:04
your host Dan Farnsworth hey thanks for
0:07
joining me on this segment of boomer
0:09
income ideas dot-com you know in the
0:10
past we’ve done a segment on
0:12
house-flipping we also do segment on
0:15
buy-and-hold real estate investment but
0:18
what about the real estate investment
0:20
where you don’t actually own the
0:22
property and it takes no money out of
0:25
your pocket
0:27
that’s what we’re going to be talking
0:27
about today we’re going to talking with
0:29
any speed at the note school and I think
0:33
you’re going to be pretty interesting
0:34
what he has to say so stay tuned
0:35
hey thanks for joining me thank you I’m
0:39
so glad to be here
0:40
I got an email from that I’ve been
0:42
following you for a while I got an email
0:45
from your back in November on November
0:46
tenth that really piqued my attention
0:49
and I knew at that time I had to get you
0:51
on the show let me know let me just read
0:53
to you what this says it says have you
0:56
been hitting your head against the wall
0:57
trying to get into real estate investing
0:59
you can do better than that with this
1:02
new way that’s easy to learn you can be
1:04
up and running in just days
1:07
no talking to sellers know using any of
1:10
your money or credit full support of an
1:13
experienced team plus this is the big
1:16
one
1:16
it’s actually fun to do so that’s a
1:20
pretty tall order he can you elaborate
1:21
on that
1:22
well you know the note buying business
1:28
buying real estate notes
1:30
the idea is is you are buying a
1:33
discounted note that either is paying or
1:37
not pay in and you’re buying that note
1:42
at a better value by today then you
1:44
typically would be able to buy real
1:46
estate real estate was a value by in
1:48
2010 and a lot of situations it’s not a
1:51
value by today notes have not recovered
1:55
the way the real estate market has and
1:59
44 probably the biggest reason is you
2:02
alluded to people don’t know about it
2:05
people don’t there’s not as many people
2:06
to do it well that’s good point let’s
2:09
let’s let’s kind of clarify the little
2:11
bit you know we use that
2:12
the the term note and essentially what
2:14
we’re talking about is a mortgage or
2:17
trustee door some kind of debt
Real Estate Investing with no money or no credit as a senior or baby boomer
2:20
instrument correct yep that’s great
2:22
so instead of actually buying the
2:25
physical real estate property we’re
2:28
investing in real estate by owning the
2:30
debt against that property as opposed to
2:33
actually owning the property itself is
2:34
that correct that’s correct
2:36
ok so you have a note school I mean
2:41
that’s basically what you’ve been doing
2:43
for the last 35 years from what I
2:45
understand that’s great so can you
2:47
elaborate on that a little bit tell us
2:49
about the school tell us what we can
2:51
expect if we if if we see any this
2:54
sounds really like something i’d like to
2:56
look into tell me about the school
2:58
what are we where do we go from here so
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note school I formed it about 15 years
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ago so I’ve been in deep in the note
3:07
space for a long time that 20-plus years
3:10
and then at that point I decided that
3:14
there was a lot of people that i could
3:17
do business with or a lot of people that
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just weren’t lucky enough to get to fall
3:22
into learning the notes space like idea
3:24
i I’ll started like my father-in-law
3:27
taught me the business he was a pioneer
3:29
above buying discounted owner finance
3:32
notes and so I just fell into the
3:34
business for that reason but there was a
3:36
lot of your marriage married well in
3:38
other words i DNT that’s right you
3:40
wouldn’t like that truck that’s what
3:44
we’ve been now married 34 years so it’s
3:46
worked out okay for you you know but
3:50
what I realized there was a lot of
3:52
people particularly real estate oriented
3:54
people that if you could teach them the
3:57
note space they like it because first of
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all you can be a lot more creative in
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structuring real estate deals and then
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secondly not only structuring the real
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estate deals but you know what why why
4:11
be the landlord when you can be the bank
4:13
good and that’s basically what we did
4:17
and so we started building you note
4:19
school has grown into all these
4:21
different training facilities different
4:24
things that we have but that was
4:25
originally the idea
4:26
get started so I know that this is a
4:29
pretty complicated subject to ask and I
4:32
know that this is a lot of what you
4:34
talked about the school but when you say
4:36
why on the real estate when you can be
4:38
the back you know to me that sounds like
4:41
I’m going to whole lot of money i’m
4:43
going to get a truckload of money in
4:45
order to be the back how do i do that
4:47
without that being my money or my credit
4:51
well let me tell you a transaction that
4:53
I did this week
4:55
ok myself to Bob roth IRA self-directed
5:01
retirement account bought a note that’s
5:04
pee in a discount so the note earns
5:08
about eight percent interest and I
5:10
bought that note about twenty-five
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percent discount now if I took a
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calculator and I said what’s the
5:16
interest on my investment per year for
5:18
the next 12 years it’s probably fourteen
5:22
fifteen percent through it pretty good
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go now i may or may not have had extra
5:31
money in my retirement account but i
5:35
have passive investors that call us all
5:39
the time and they would set they say
5:43
well Eddie we would like to buy a note
5:46
but we don’t want a lot of brain damage
5:48
okay so-so of that note i sold seven
5:55
years of a 12-year note okay i sold a
6:00
partial to make a hundred percent of
6:03
payment until they get all the money
6:05
their promised and then I’ll get the
6:07
note back so my retirement account
6:09
control contracted and invested in the
6:12
entire note and then I had another
6:15
investor lined up and they bought enough
6:17
of the note at a lower return than what
6:21
i’m getting essentially to pay for the
6:23
note let’s just say hypothetically i
6:26
paid fifty thousand dollars for 12 years
6:29
they pay fifty-thousand-dollar for seven
6:32
years which means if i put in their
6:34
calculator
6:36
going to earn you know your numbers in
6:38
interest on their investment right so I
6:42
had no money so you in a sense leverage
6:46
the note for a hundred percent of what
6:49
you would have otherwise invested in the
6:52
note by then
6:54
re leveraging out or selling it to
6:56
another group of investors and
6:58
essentially you’re making the spread or
7:01
the difference between you’re fourteen
7:03
percent and their nineteen percent is
7:05
this is that right
7:06
but your bank does yeah exactly okay so
7:09
okay so how difficult is that for
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someone who really doesn’t have a
7:16
background and finance to really come up
7:20
to speed on that and understand all the
7:22
intricacies and the nuances of of
7:26
putting that kind of you call the deal
7:28
architecture that kind of architecture
7:30
together
7:31
yeah yeah so that’s fair question
7:34
so I related to have to capturing a lot
7:37
of people in the fix and flip world
7:38
right that I’m houses and fix it up and
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Real Estate Investing with no money or no credit as a senior or baby boomer
sell it and so I tell people if you can
7:44
learn to a fix and flip house or you can
7:46
learn to buy a rent house and manage a
7:49
tenant there’s nothing more complicated
7:52
about what we do than that
7:54
so how I find these notes so we have
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created not just a school to teach you
8:01
how to do it but we create a path so
8:03
that you can have access to inventory
8:05
ok so i guess then my next question is
8:09
if you’ve got all that in place you got
8:13
the investors you’ve got the notes
8:14
you’ve got the money
8:16
why do you need us
8:19
it’s a velocity you know if i buy if I x
8:23
600 notes and I sell 400 notes and i buy
8:29
them at seventy-five cents on the dollar
8:32
and I sell them to you at 82 or 85 cents
8:35
on the dollar then I that the return on
8:39
that investment is phenomenal
8:41
right because i only had to own them for
8:43
say 90 days and
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now that doesn’t mean that I don’t keep
8:48
loans that I don’t resell because
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counting wise i may adjust what I have
8:56
invested in those notes which enhances
8:58
my short-term you on the loans are
9:00
binary cell and really enhances my
9:03
long-term you on my lungs that don’t
9:04
resell okay what happens
9:08
these are alone so they’re subject to
9:12
default what happens in the case of
9:14
default well that one of the the one of
9:17
the biggest things that note school
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teaches is is that that management
9:21
process and words how to evaluate alone
9:24
to get a sense of the likelihood it will
9:26
pay and then secondly if it doesn’t pay
9:30
what are you what do you do who do I see
9:31
what type of a vendor could I deal with
9:34
that could solve my problems now by the
9:37
way half of the notes that we own our
9:39
loans that are not paying right now
9:41
yeah we call these non-performing that’s
9:44
half that’s is that correct that is
9:46
great and that would typically really
9:48
scare someone I mean you know what it’s
9:50
like I want to tell you this note and by
9:53
the way the person who has a note isn’t
9:54
paying on it
9:56
why would that be attractive to
9:58
investors that the the biggest thing the
10:01
biggest thing that I think that we focus
10:03
on that note school today is is how to
10:05
make an entrepreneurial decision right
10:09
how to evaluate your risk and buy one of
10:12
these notes and make sure that you’re
10:13
not overpay in and secondly this the a
10:17
big thing that entrepreneur has to do is
10:19
to how to know how to build your power
10:20
team you know your you don’t need to
10:23
know how to foreclose in the state of
10:25
Indiana your servicer with an attorney
10:28
network that knows how to foreclose in
10:31
the state of Indiana and so you’re gonna
10:35
you’re gonna be great we spend a lot of
10:38
energy focusing on these are the
10:41
decision points that you’ve got to be
10:43
competent at in order to have to employ
10:46
your power team and manage them
10:48
correctly
10:51
so when I’m when I’m getting from this
10:55
really is that it’s really very similar
10:57
to house flipping in that if I was a
11:00
novice but I had a desire to get into
11:02
that form of real estate investment the
11:06
the best thing that I could do is find
11:08
some expert somebody that can be a
11:10
mentor that has a a team behind them
11:13
that can help me along the way you teach
11:15
me the lessons and giving the ropes and
11:17
and oh by the way if they are actually
11:19
happen to have access to inventory and
11:22
and accesses are at can access Capital
11:26
so much the better
Real Estate Investing with no money or no credit as a senior or baby boomer
11:27
and in this case that’s exactly what
11:29
you’re talking about with the notes cool
11:31
is that right you you are essentially
11:34
that expert with the team behind you
11:36
that can take someone who really is
11:40
completely a novice in this take them
11:43
through the program and by the time
11:44
they’re there through this
11:47
did you say it was a three-day program
11:49
yeah we have we have three day classes
11:51
is one of the things that we offer yes
11:53
okay and by the time they’re there
11:55
they’re done with that three-day program
11:56
there at least proficient enough to be
12:00
able to analyze a deal and and go into a
12:04
deal
12:05
pretty pretty well knowing whether it’s
12:08
you know a good deal bad dealer or what
12:11
have you and at the same time if i
12:14
understand correctly they also have
12:16
access to you and your team so that they
12:18
can run that deal past you just to get a
12:21
double look at it it’s alright well I
12:25
wouldn’t I wouldn’t I wouldn’t tell
12:27
anybody that just because you go to a
12:28
three-day class that it’s 24 7 at access
12:31
light around matter that I’m even of the
12:33
stick expectation and i don’t i don’t
12:36
have it i don’t have a reputation of
12:38
overselling but but but but what I would
12:41
say to you is we’re going to do a very
12:45
good job in in both some online training
12:48
that we gave you and some live training
12:51
that we give you that with the thing
12:52
that we really like the lot of training
12:53
enables us to do is do case studies so
12:56
we have a lot we have a kind of online
12:58
process that we wrap somebody inside of
13:01
that is also going to come to a class
13:02
the purpose there is there’s some things
13:05
they’re just background details kind of
13:08
building blocks to the business and
13:10
there’s no replacement for it we we have
13:12
to be able to feel it we have to be able
13:14
to give that to you so that you have
13:15
that knowledge then when you get two of
13:18
them an event what we like to do or case
13:20
studies like here’s a here’s a loan that
13:23
you identify in a group of loans and
13:26
let’s just go in there and start digging
13:28
it out looking at it can you live with
13:29
it can you not live with it and one of
13:32
the things that we’re really focused on
13:33
is tolerance if not every student has
13:37
the same degree of Tolerance maybe half
13:39
of the students that train with us don’t
13:41
Real Estate Investing with no money or no credit as a senior or baby boomer
have a tolerance about non-performing
13:42
notes they want to buy just a note
13:45
that’s paying every month they say hey
13:46
if I can buy note and earn ten or eleven
13:49
percent return on my money every year
13:51
and have it serviced at a servicing
13:55
company and they really do all the labor
13:57
I like that plan sure you don’t have to
14:00
be near as knowledgeable by not
14:01
performing now as you do and I’m forming
14:03
that
14:04
yeah i think that sounds great you know
14:07
it’s interesting i was i think i
14:10
mentioned to when we were talking before
14:11
the show that I’ve been following you
14:13
for a while I started checking you out
14:14
about a year ago in Africa when I was
14:18
buying some income properties and I
14:20
thought you know why go through the
14:22
hassle of buying the property and
14:25
holding onto it and putting a tenant in
14:26
it and having to collect the rent and
14:28
things like that
14:29
maybe I should just buy some notes
14:30
instead and quite honestly that the
14:33
thing naively and and it shows my
14:36
ignorance
14:36
the reason I didn’t go forward with that
14:39
was I thought well you know i’m going to
14:41
get the i’m going to get two streams of
14:44
of return on my investment i’m going to
14:47
get the cash flow from from the rent but
14:49
i also have the appreciation of the
14:51
property itself which is pretty
14:53
important to me
14:54
whereas in a in a typical note you’re
14:57
basically getting the income stream for
14:58
the interest for as long as the the note
15:02
is is a you know active but the note is
15:06
typically not growing in appreciation
15:10
but that really isn’t correct
Real Estate Investing with no money or no credit as a senior or baby boomer
15:14
mmm that is not correct because at the
15:16
interest rates go down and you have a
15:18
I interest rate note you’re not just
15:20
went up in value correct right yeah
15:22
there’s a couple of things you know in
15:26
in let me say that that the note
15:29
business buying performing notes and
15:32
buying turnkey investment property is
15:36
his timing if you were on houses in 2010
15:41
that was a very smart decision ok but if
15:45
you look at the real estate cycle and
15:47
where we’re at in the rules take cycle
15:49
and the phases of the cycle and all of
15:51
that conversation buying a house
15:54
possibly at the top of the market means
15:58
that you may collect rent on it in a
16:00
declining market but you may not be able
16:02
to sell it
16:03
we’re buying a loan that is a that is a
16:06
percentage of the value of the property
16:09
no words the loans that we’re buying or
16:11
not hundred thousand loans secured by a
16:14
hundred thousand property it’s a
16:15
thousand loan secured by a hundred
16:18
twenty-five 435,000 our property so
16:20
there’s built-in equity in a
16:22
catastrophic situation that they default
16:25
and then as you said you’re collecting
16:28
that loan every month selecting the
16:30
interest on that loan and if rates go
16:32
down within obviously you’re earning
16:34
away higher than market rate all but
16:37
there’s more you’re buying that note at
16:39
a discount if that loan pays off early
16:43
your return was calculated based on the
16:46
full life of the loan it that long pays
16:49
off early you earn that early discount
16:52
and naturally what happens to the return
16:54
on your investment
16:55
it goes up yeah I think that’s a
16:58
fantastic you know i think i mentioned
16:59
to have actually signed up for your your
17:02
webinar tomorrow I’m going to be in on
17:04
that class so i’m interested in learning
17:07
Real Estate Investing with no money or no credit as a senior or baby boomer
more about you know your expertise in
17:10
this well any I think that this has been
17:12
a great conversation I know I certainly
17:14
got a lot of information out of it
17:16
we’re going to put links not in our
17:18
notes section at the bottom of this to
17:20
your website and your phone number
17:23
I’m going to encourage everybody that
17:25
takes a look at this to at least sign up
17:27
for your newsletter like I have so that
17:30
they get this if
17:31
if they’re not ready to sign up for
17:33
going to one of your webinars yet at
17:35
least they should keep looking at what
17:38
what you’re doing because i think it’s
17:40
some really valuable and and worthwhile
17:43
information so i appreciate that and I
17:46
look forward to talking with you at the
17:48
webinar tomorrow i look forward to it
17:50
thank you
17:50
thanks thanks for joining us on this
17:52
episode i hope that you found it
17:54
informative please check out the notes
17:57
section for more links and relevant
17:59
information and if you like what you’ve
18:01
seen please make sure that you like us
18:03
on Facebook and also subscribe so that
18:06
you’re up-to-date on a weekly basis of
18:07
what we’re doing
18:08
thanks again hope to see you next week
Real Estate Investing with no money or no credit as a senior or baby boomer
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