2017 Year End Summary as Full Time Note Investors

Can you believe 2017 is already coming to an end? We’re excited to say we’re wrapping up another wonderful year in the note investing world. This year had a lot of huge accomplishments for us. Not only did we have another great year for our note investments, but we launched Note Investing Academy, a brand new 100% online note investing education. Our biggest celebration would have to be leaving our full time jobs to pursue our dream of full time travel. We now work and travel North America on our fifth wheel Toy Hauler (RV)!

Below is the summary of our action and results within our Note Investing business, Seasoned Funding, LLC in 2017. We’re very content with the number of deals as well as the overall profit and ROI we received on the deals we’ve closed. A big part of being note investors for us, is the time freedom it allows. We like to do around 20 deals a year. We found that’s the perfect number more than support us financially while allowing us the time to do all of the fun things we want as we travel. Could we do more deals? Of course! But that would mean putting more work in – and we’re pretty good where we’re at for the time being! Take a look for yourself.

Progression

2017 sure was an incredible year and we’re excited to see all of the amazing things 2018 is sure to bring! Wishing you all a successful and prosperous 2018!

A New Note Education Like No Other

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I’m EXTREMELY excited to be writing this post. It’s been a long time coming, and today is the day I can officially announce Note Investing Academythe newest, and in my opinion the best, non-performing note educational program out there!

Dennis & I started investing in Notes in 2013 when we were just starting our real estate investing education. At our first Real Estate Association Meeting one of the biggest guru’s in the business was pitching “investing in non-performing notes”. We had absolutely NO idea what a note was, and definitely didn’t know how to buy one for a profit. However, the concept sounded great; most of the business is run from a phone or computer, you don’t need lots of cash to get started,  (you can raise capital to invest), own real estate in your own state or nationwide (meaning lots of inventory and opportunities), and it can provide you with passive income or large sums of cash. We were sold! We signed up for his weekend course and even flew to Texas to attend. While we learned a lot, it wasn’t enough to really buy our own note deal: Cue the up-sell. That’s when when we were brought aside, and pitched one-on-one for a mentorship program that ran anywhere from $12,000 – $20,000 (now that same course is starting at $20,000 and goes up to $35,000)! I was 22 at the time, in my first year of teaching, and Dennis was a bartender. Let’s just say our salaries did not support a $12,000 shopping spree. There really wasn’t any one else offering anything better for cheaper, so we decided go big or go home. That day, we applied for our first big credit card (a suggestion from them…), maxed it out, and bought a $12,000 mentoring course. To say it was a lot of money for us at the time is an understatement. It was more than I personally spent for a four year degree in college! We were scared we overextended ourselves financially but we were determined to see success (trust us there were many sleepless nights until we paid the credit card off in full).

This “big” mentorship was online and structured to be independent/self paced. Point blank, it was not a mentorship. It was an online course. Regardless of the “mentoring” style, we applied ourselves. We listened to the weekly recorded calls, went through the online modules, and read as much as we could. After all was said and done – we still didn’t feel confident. We definitely gained a ton of knowledge about the foundations of note investing but the nuances of the business were minimal. There was no network for us to reach out to and when we did ask questions they often went unanswered. I remember we had a bid on a REAL deal and had questions about the collateral. When I got on the weekly call to ask our big mentor – the guy who pitched us the course to begin with, he gave us the runaround, avoided answering the question, and pretty much told us to look in the previous online notes and calls for an answer. Wow – that’s not a $12,000 answer if you ask me!

We are very thankful for the education we received and programs we attended as they gave us the knowledge we needed to create our Note Investing Business and get out of our 9 to 5 jobs,

We decided to sign up for another weekend course with the Note industry’s competing educator. Since we already had a solid foundation of note investing, we felt his course filled in a lot of the missing gaps and we quickly did our first deal just 1 month later. We are very thankful for both educators and programs because they gave us the knowledge we needed to create our Note Investing Business and get out of our 9 to 5 jobs. With that being said, it shouldn’t have cost of tens of thousands of dollars and there shouldn’t have been so many gaps from their teaching to what actually happens in the note world. They charged an arm and a leg because they could. They delivered what they thought was good information but wasn’t necessarily what we were expecting from the program.

Five years later, our business has grown beyond what we could have ever imagined. We’ve put nearly 2 million dollars to work purchasing non-performing notes nationwide and quit our day jobs because we not only replaced our normal incomes but exceeded our annual salaries. There is no doubt we are here because of the educational foundation we received from the two gurus we learned from, but frankly, much of the success we see today is from our self driven personal education and networking we have with other note investors.

In 2016, I started teaching a one day Investing in Non-Performing Notes class locally at my real estate association in Orlando. While I received amazing feedback at these one day seminars, often being told they learned more in my one day class than a whole three day weekend with the two gurus I mentioned earlier, my reach was still limited.

We are very thankful for the education we received and programs we attended as they gave us the knowledge we needed to create our Note Investing Business and get out of our 9 to 5 jobs,

So in 2017, I collaborated with Chase Thompson, (from the well known podcast, NoteMBA), and Kimberly Banks-Fawcett, (long term real estate investor and active Note Investor), to create Note Investing Academy. Our sole purpose for this program was to offer a better, more affordable solution to learn about investing in non-performing notes. The program is designed to not only give you a solid foundation of Note Investing, but to include everything that we felt was missing when we started out! We have 60+ videos jam packed with content that helps you understand the basics of buying non-performing notes, the numerous ways to profit with notes, the process you’ll go through after you buy your own deal, in addition to the important factors of building your business like branding, marketing, LLC creation, and mindset. We have an amazing Documents section that has loads of resources that we use consistently in our own business. We paid hundreds if not thousands of dollars combined for those documents and that knowledge when we started out. The best part – the price is super affordable! There is no huge up-sell. It is what it is, a great program at an affordable price. We hope to see you there and know you will love the program as much as we do!

TAKE ME TO NOTE INVESTING ACADEMY

Keeping Up With Your Markets Nationwide

As Note Investors it’s extremely important to keep up with the various real estate markets in the United States. It keeps you informed at new emerging markets that might be a new target for you to purchase in, as well as keeping you educated on what markets to avoid. Everything is in a constant ebb and flow or stable or strong economic and real estate markets, to a potentially declining market.  Very rarely does one city or state remains stagnant, so your buying criteria needs to adjust as the markets do.

Here at Seasoned Funding, LLC we understand the importance of studying the market conditions in the states we like to purchase more and are constantly adjusting our buying criteria based on our findings. If a once thriving city that we liked to target had an economic hardship and is in the decline, we will be extra careful about buying there or possibly remove it from our list all together. On the other hand, if we find a new market that is growing like Detroit, we will do more research on the area, and where specifically within that city is ideal to target.

With that being said, make sure you as a note investor are keeping up with the market research that is amply supplied to us online. We like to use a variety of resources to help us stay up to date. Two resources we found very helpful this month were CNN (Top Home Markets) and Realtor.org Top 20 Performing Markets in August 2017

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While half the list is in California, a state that doesn’t meet our buying criteria for several other reasons, most of the other cities are in states and cities are in markets we already purchase or we’ll now add them to our potential purchase areas when digesting tapes.

Why We Love Contract for Deeds

Lately in the Secondary Note Market, a lot of Note Buyers have been purchasing non-performing or performing contract for deed’s/land contracts instead or in addition to traditional bank created 1st or 2nd lien non-performing notes. I’m sure each investor can give you reasons why they are or aren’t buying Non-Performing CFD’s (contract for deeds), but personally, we are loving the opportunity they are bringing to the market for us a Nationwide Note Buyers. While they have a lot of benefits there are negatives involved as with any investment. This post will walk you through why we’re buying as many of these as possible and how some of the benefits/negatives have effected us.

Home-Heart-PaintBefore we dive in, it’s imperative that you understand what a Contract for Deed is. A Land Contract Installment, also known as a Contract for Deed, is a form of seller financing. It is similar to a mortgage, but rather than borrowing money from a lender or bank to buy real estate, the buyer makes payments to the real estate owner, or seller, who remains on title until the purchase price is paid in full. It is a tool that can allow buyers who either don’t qualify for traditional lending options or who want a faster financing option to purchase property.

The main seller of CFD’s on the secondary market is one large hedge fund that owns A LOT of real estate (almost all CFD’s are being created then sold from this one hedge fund). They buy the properties as REO’s from Fannie or Freddie Mac in bulk, then create a Land Contract Installment with a buyer who likely could not qualify for traditional financing for a variety of factors. Most of the time, they are sold to the buyer in as-is condition.

Benefits:

  1. You can buy these notes for CHEAP, and I mean CHEAP!
    • We are picking up non-performing contract for deeds in the range of $6,000 – $12,000 normally around 35% – 45% of the CMV (current market value). If it’s a semi-performing or recently defaulted loan (stopped paying in the past 2 – 3 months), we can typically buy them for around 50% – 60% of the UPB (unpaid balance).  That means we can purchase more deals at a better price allowing for a higher yield for our company and investors. One of our latest Non-Performing contract for deed purchases was in St. Louis, MO, purchased for only $6,500. Our realtor told us, in its as-is condition, we should be able to sell for $43,000! That’s an expected profit of a roughly $30,000 in just 4 – 5 months. The property is vacant and we are maintaining the lawn & property until we have marketable title. Another one we purchased, defaulted recently (only 2 months of non-payment). We are buying it at 37% of the current market value and 59% of the unpaid balance. If we are successful in getting them repaying, as we hope to do, we’ll be passively receiving an 17% return on our money.

Take a look at some of our “slam dunk” Contract For Deed Deals below.

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2.      There is a lot of Inventory.

  • We are getting updated list of recently defaulted or seriously delinquent CFD’s about every month or every other month. The list often has 90+ properties for sale nationwide. When inventory is high, that means we’re able to purchase more quality notes!

3.     Most of the time you can file “Forfeiture” instead of having to Foreclose.

  • Since a CFD is a form of seller financing that allows the seller to remain on title, the majority of the time (depending on several factors that very from state to state), you don’t have to foreclose on the loan and mortgage in order to  have marketable title. There is a legal procedure called forfeiture, in which the seller can cancel (“forfeit”) your rights under the contract. Forfeiture is often less expensive than a traditional foreclosure, and is much quicker (average of 45 – 90 days start to finish). While forfeiture is an option in some states, not all 50 states allow forfeiture, and many have restrictions on when you can file forfeiture or when you have to foreclose. We like to use this website for reference to help us understand more about each state’s requirements and procedures. As an official disclaimer, if you are looking at purchasing a CFD in a particular area – contact a local attorney who can give you sound legal advice rather than finding your answer in a blog or online. As we like to say, trust but verify.

    While we know it doesn’t always happen this way, we’ve found the majority of our CFD purchases to end with forfeiture or a Deed in Lieu (DIL). This means we are saving money and gaining title to properties in as little as 4 months from our purchase date. This increases our yield and profits and makes our company and investors happy!

Negatives:

  1. Conditions can be great or really, really, REALLY bad.
    • As we mentioned before, the hedge fund that is creating the majority of the CFD’s are selling in “As-Is” condition. Let’s just say the As-Is condition can vary greatly. We’ve seen homes that were move in ready when the seller got them as an REO and we’ve seen some that were a complete inhabitable wreck. Regardless of the condition, the buyer that purchased the home is now responsible for doing the work themselves, or paying (unlikely), to have the work done. We’ve had properties without kitchens, no gas (in Ohio might I add), dead animals in the basement, no flashing behind wood which led to the WHOLE home rotting, and those were just a few of our CFD properties…

Take a look at some of the worst of our CFD’s. 

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  • With notes in general you aren’t able to get inside the home prior to purchasing the note, which is one of the riskiest factors of note investing. We’ve also had CFD’s that once we got inside were in perfectly fine or nice condition, and we’re easy to sell. You just never know.

2.      Know your Value and Price for the worst.

  • Considering the variance in condition I mentioned in the previous “negative”, to investing in Contract for Deeds the most important factor of your purchase is your value. You must have a good idea of the As-Is value and price it preparing for the worst. We have seen a few investors pick up CFD’s for just a few grand too many and once they get inside find out the bought it for more than the could sell for because of the condition. You have to be 100% confident and make sure even at a wholesale price, you can walk away with a nice profit.

3.      Know your Laws, Forfeiture is not always the option.

  • This one is under benefits and negatives because if you don’t know your laws, or didn’t consult a lawyer (as suggested) you could expect a quick turn around 30 – 90 days and just $1,000 to file forfeiture to only find out it’s $4,500 and 10 months minimum to file foreclosure. If you don’t know the outcome based on the loan information itself, it could make or break your deal.

 

While this is just a drop in the bucket compared to the options and benefits/negatives of buying CFD’s, it does give you a good idea of why our company has benefited from purchasing them, and hopefully help you see how you can benefit too!

FL Foreclosure Grand Slam

               One of the reasons I love investing in notes is the variety of income. Sometimes I receive a payoff from a sale of a home in as little as 3 months, other times it’s closer to 1 year or more. I can turn a non-performing note into consistent cash flow, or I can gain back title and rent it out or seller finance it to a new buyer. The options are endless, and the versatility of income is just one of the great things about investing in notes.

           One of the other great benefits about investing in notes, is that at least once a year (if you’re lucky sometimes more), you get Grand Slam deals like this one. This deal really is an out of the park, grand slam, killer deal. It took just six months to get a 155% return on our money, and provided us with a profit that was double my annual salary in just one deal! Does it get much better than that? It’s also great that our partnering investor was happy because they received 1 years worth of interest (fixed interest only loan) in their IRA, in just 6 months. This means their return on investment was much higher than our agreed upon rate of return, 100% tax free, and passive.

          The borrower in this note was happy because he was able to move into a new home for his impending retirement and we assisted him with $3,000 toward his moving costs. His debt was gone, and he’s retirement ready. Take a look at the details below!

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                 While this deal doesn’t come along every day, these deals do happen (and not just once)! We have other deals that are shaping up to be as great as this, and we have several colleagues and friends that have stories with crazy returns in little turn around time. If you’re interested in working with as an investor please reach out to us at the contact information below. See how you can passively grow your IRA like this partnering investor did at a great investment to value!

Winter Haven Win-Win-Win

Here we go again. A new case study featuring a true win-win-win Note Deal. We bought this note in 2015 as a JV deal with a fellow investor’s IRA. It just recently closed in April 2017, and turned out to be a killer deal for all parties involved! Our company, Seasoned Funding, LLC worked with our JV partner completing all of the work, while they passively received their (way higher than average) return on investment.  We look forward to completing many other home run deals like this in 2017 and beyond.

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I hope you enjoyed this month’s case study. Stay tuned for more great deals to come! If you’re interest in working with us a lender/investor, please contact us at the information above. We are always looking for new and interested partners to work with.

Bankruptcy – The Good and The Bad

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Bankruptcy. Designed to help people who are over burdened with debt find relief. Relief by absolving some or most of their debt, or assisting them with a payment plan to get them back on their feet. When used for the purpose it was intended for, it can be a very beneficial process and help people, families, or businesses start fresh. Unfortunately, like many other programs created to assist in a time of need, there are some people who abuse it. Often times in the note business, Bankruptcy is used as a “stalling tactic” to stop, prolong, or avoid foreclosure and is typically done RIGHT before a foreclosure sale. There are even really savvy borrowers who will file several times, first the husband, then the wife, then a joint filing being able to prolong the process several years before eventually losing their home.

Today we wanted to share with you 3 case studies of REAL stories about borrowers using BK as a stall tactic to hopefully help you understand the various ways as a note buyer, you may unexpectedly encounter Bankruptcy. Before we move forward, you’ll need to know some of the basics of Bankruptcy as you read the Case Studies. If you want to go further in detail take a look at one of our old posts regarding BK and Notes.

Ch. 13 – The classification of bankruptcy filing that enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years.

Ch. 7  – Unlike a Ch 13 filing, in Ch. 7 the bankruptcy trustee gathers and sells the debtor’s nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. The remaining debt is discharged.

Automatic Stay – An automatic protective injunction that halts actions by creditors the moment the bankruptcy petition is filed.

Lift of StayA request made by a creditor to the court which allows the creditor to take action against the debtor or the debtor’s property that would otherwise be prohibited by the automatic stay.

Case Study 1:
This past month we had a note in Tallahassee that was set to go to foreclosure sale on theScreenshot 2017-04-30 18.26.26 first Monday of the month. We wake up Monday morning excited to check the docket and see the results from our Foreclosure sale only to find “Canceled per Bankruptcy”.
Lo and behold, the borrower filed Ch. 13 Bankruptcy the Friday before, cancelling the foreclosure sale and automatically gaining protection from us (the lender) and other creditors, seeking collection. While the borrower may be using Bankruptcy as it was intended, to keep her home because of her ability to repay, in all likelihood is simply trying to do whatever the can from not losing their home, even if it’s just stalling it for a few months. This borrower did not show up in court at any point in time during the foreclosure, or respond to any of the demand letters or notifications. They did not reach out to my attorney or servicing company to see what options they had (which we sent letters telling them there were other options).

The borrower filed BK themselves without an attorney to assist. Several of the documents were filed incorrectly, which tells me they are likely to be dismissed (kicked out). For the time being, we’re stuck waiting to find out….

1. What her financials look like and her ability to repay.
2. The proposed “Plan” which would outline her payments to us as creditor.
3. If she even files the necessary documents in time in order to be approved for a plan or not.

Until one of those steps are completed, we just wait.

Case Study 2:
This note is owned by a friend and colleague of ours that also invests in 1st lien notes.xbankruptcy.jpg.pagespeed.ic.7j4PYvBmSb The property is in Pinellas Park, FL. The borrower was delinquent for several years prior to our friends buying the note. The homeowner was very adamant about keeping her home, although she had no income and her financials did not support her ability to afford the home. While they initially tried several loss mitigation options, but ultimately foreclosure was the only option. After filing foreclosure, and a strong fight in court, a few days before the foreclosure sale, the borrower filed Ch 13 BK. Thus again, stopping the foreclosure sale and putting the borrower in automatic stay.

This borrower ended up using an attorney and was approved with a BK plan that requires a high monthly payment on the note, (way more than her original payment she already couldn’t make before) which of course just two months in, failed to pay. She was however, making very small payments to the Trustee which was no where near the required payments in the BK plan. The note holder requested a lift of stay based on the lack of ability to pay to the plan, but luckily for her, had a borrower friendly Judge who denied the Lenders request, and approved the borrowers ability to continue the BK plan.

A few months later, the Trustee requested the borrower be dismissed from a lack of payments according to the BK plan, and AGAIN the Judge denied the request and was in favor of the borrower continuing with the plan. I will say, this is a pretty crazy case that unfortunately for my friend does not happen often, but can happen. When you’re in BK you’re at the mercy of the Judge, and this Judge happened to favor the borrower. So my friend is stuck waiting, and waiting, until eventually they are kicked out (which we know will be the outcome based on their past payment history). On a positive note, they have collected some money from the Trustee which helps recoup attorneys fees, but is still prolonging the completion of the deal by 1 year +.

Case Study 3:
This note was purchased by another colleague of ours that we are assisting through th1475779220245e
process of working the note to completion. The borrowers had previously filed BK but were dismissed without prejudice (kicked out) from a failure to pay. Again, just 1 day before the foreclosure sale, the borrower filed BK for a 2nd time, resulting in another automatic stay. When a borrower files Bankruptcy back to back like this (after 60 days), normally it’s up to the court to lift the stay or allow it to remain in place. This judge favored the borrower and are giving them a 2nd chance to attempt to repay in the Ch 13 plan.

Again, the note holder has collected a decent amount of money from the Trustee from the borrower’s payments, but their ultimate goal was to gain title to the property, not have a potentially risky re-performing note. They’re continuing to wait to see if the borrower will be successful in the plan, and sell it as a re-performing note, or if they will be kicked out, where the note holder can proceed with the foreclosure sale.  Either way, it’s a waiting game!

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So there you have it, three real BK stories that unfortunately show how easily this system can be manipulated. As annoying as it may be at times, it’s a part of the business so we suggest getting familiar with it so you can hedge yourself as much as possible, or simply be less “shocked” when it happens to you.

 

Getting Started in Notes

This past weekend, I taught a full day course through my local REIA, Central Florida Real Estate Association on how and why to Invest in Non-Performing Notes (specifically focused on Non-Performing 1st lien Bank Originated Notes). I received a ton of a great feedback from the attendees on how informative, easy to understand, and well formatted the course was. The audience really felt they got a lot out of the course and could actually continue to pursue Note Investing as a form of building wealth (which was my goal). Even with all of the great feedback, I still consistently heard “what do I do next?” and “How did you know when you had enough knowledge to be ready to buy a note?”

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Since that was not my first time hearing those questions, and very likely will be the last, I thought it’d be great to address those questions here. It can be super intimidating and feel like an enormous challenge to finally pull the trigger when starting a new business or buying your first asset in a new investing strategy. It may never feel “right” or you may never feel like you know enough to actually get started, so here is my advice: If you follow the guidelines below, and take deliberate actions toward your goal, you will see success! Hopefully I’ll be able to help a few of you realize you’re probably a lot closer to being ready than you even know!

 

Get the Knowledge

Note Investing is an intricate business, and can feel overwhelming during the learning process. I truly believe the brunt of the “work” is in the initial stage of learning what in the heck it takes to invest in notes. There is a LOT to digest and is a detail oriented business. With that being said – once you learn what you’re doing and what to look out for you’ve done most of the heavy lifting. If you want the knowledge or have attended courses and feel pretty confident you have learned what it takes, you might be ready for the next step. For those just starting out, here are my best suggestions on gaining the knowledge necessary to learn.

Attend a Seminar or Educational Course with an Experienced or Reputable Teacher
There are lots of online courses that are offered, like Scott Carson’s Note Camp, or Virtual Buying for Dummies, which does a great job of teaching you about note investing all from the comfort of your own home and computer.

There may be local courses, meet ups, or other groups as well (similar to the course I taught here in Orlando). Check out your local REIA’s and on Meetup.com to see if there is anything happening on the topic of notes.

You can also attend the longer 3 day events that are often held by the “guru’s” which typically cost more, but do provide great education. Here’s a spoiler alert for those 3 day events…They will up-sell you (and up-sell a lot), on joining their mentorship program. There is nothing wrong with joining or the fact that they are pitching this to you. They’re not going to give away their decades of experience and knowledge for a few hundred dollars and in a 3 day course. They have a ton of experience and a WEALTH of knowledge packaged and ready to go for you to learn from, so this may be a good choice for you if you want to really ensure you have the necessary educational foundation. Just know it’s going to happen and be open to all of the education they do provide to you while you’re there.

Explore the internet!
There is SO much great, free information, online. BiggerPockets.com has great blog posts on NoteInvesting. Dave Van Horn at PPR also has a lower cost educational course he offers with a ton of free content upfront to help you learn more about investing in notes (both 1st and 2nds). A great resource for seconds is at the Key Hole Academy. There are also great blogs written by real note investors like myself. If you haven’t read our other posts, I highly recommend taking a lot at some of the posts that walk you through the basics of investing in notes.

If you have you have a solid foundation of Note Education, the next steps is to build your pipeline to be able to get inventory and close some notes! I would make your next efforts be…

1. Creating Your Brand, and Building Presence as a Note Buyer – (remember professional and reputable). Create your website, LLC/Note Business, Logo, Email,  Business Cards, LinkedIn account, Facebook, and Blog (if you’re doing one).

2. Raise Capital – Attend local REIA’s and let yourself be professionally known as a note buyer, talk with your friends and family. Post about what you’re doing on faceboook. Talking with people opens doors. You never know who has money sitting idle that they are willing to invest!

3. Contact and Reach Out to Potential Sellers – In order to buy notes, you must have inventory. Start reaching out to sellers from banks, hedge funds, or credit unions. Make as many connections, follow up, and fill out those NDA’s. If you do this actively you’ll start to receive inventory!

Ready, Fire, Aim!

You’re probably familiar with the saying, “Ready, Aim, Fire” which focuses on readinessreadyfireaim.jpg and preparation before taking action. Instead, we like to say and live by “Ready, Fire, Aim” which focuses on readiness, then action, followed by adjustments to get you back to your ultimate target. If you’re waiting until you’re fully ready every time – guess what, it’s extremely likely you’ll never FIRE. I was probably asked  10 times in my class When did you know you knew enough to buy your first deal?My honest answer; I didn’t! I got my education, we bought our first deal and learned a lot as we worked the deal,  then bought more. Every deal I do, I learn something new. I’ve now done 30+ note deals, and have been reaping the rewards of “Ready, Fire, Aim” instead of still sitting on the sidelines waiting to “Aim then Fire”.

I’m not saying attend a 2 hour course on notes and go buy your first note deal. As I mentioned before, education is the brunt of the work and one of, if not, the most crucial part of investing in notes. Just don’t spend years “learning”, then learning more, then waiting until the perfect deal comes along. Get the knowledge, pull the trigger, adjust from your mistakes, and do it again.

Focus

We really started to see success in our business when we stopped learning about ALL of the ways we can make money and focused on one strategy, notes. We knew notes allowed us to live the lifestyle we desired, provided both passive income, and cash to have on hand, grow our retirement, or save. When we stopped attending other real estate seminars and dabbling in other areas of real estate investments we saw our note business take off!  Whether you invest in notes or not, one of my biggest pieces of advice to you is to choose one strategy, get good at it, rinse and repeat.

Work on You: When You Grow Personally, The Rest of Your Life Will Too

Screenshot 2017-04-25 09.48.38The last thing I think is crucial to success not only in  notes, but in any business, is self development. I truly feel around 90% of our success has been solely from  self development. Over the past 3 years, we have attended several courses, read and listened to a variety of books, and openly talked about and explored the growth process that came from these events with each other and our family/colleagues.

I’m not sure why self development courses and gurus have such a bad rap. Maybe because a lot of the courses do have some corny activities, and downright out of the box, in your face activities. But guess what – if it works, WHO CARES? At one event we attend very early on in our self development journey, the speaker asked us to high five a neighbor and repeat some cheesy phrases (that of course were positive and self-affirming but feel lame and weird to say aloud let alone in front of people). My husband and I were a bit hesitant and definitely weren’t fully committed, but we did it nonetheless. When we sat back down in our seats, the speaker called out the numerous people in the audience who were clearly doing the activity half-heartdedly. The speaker then said, “would you rather be rich and look stupid, or look cool and be poor?” My husband and I thought about it for a second, and no more than a minute later realized, if what we’re doing in ANY way will improve our life, our income, our happiness, who cares if we look stupid.

There is fear, weakness, doubt, and hesitation in all of us, even the most successful of people. If we expect to change our lives, to grow our income, or to create a lifestyle we haven’t been able to live yet, we have to expect to change ourselves. To get big, new, and incredible results you must be willing to be vulnerable, dig deep into your inner beliefs, explore and face your fears, motivations, and confront and change your thoughts. While it’s uncomfortable, scary, and at times down right weird, it’s worth it, and it’s necessary to see the results you desire.

I hope this post is beneficial for you if you’re starting out in notes or any other business. We want to see your success!

2016 Update: A Year in the Life of a Note Investor Recap

While my intentions for this year was to blog once a week on my happenings and successes within the business (see the original post here), I realized it was a lot of time and effort for just a few viewers. I decided to stop posting weekly so I could focus that time instead of furthering my business efforts and to be honest, have just a little extra time for me. If you were one of the followers keeping up, I’m sorry for our lack of recent posts, but I am very glad to give you our year end update today! Our 2016 Business Goal was to make $120,000 in pending or actual profit. Not only was it accomplished but we SURPASSED it! The icing on the cake, we didn’t have to take any “pending profit” into consideration. We made a whopping $153,000 in gross profit from our note investments and members at http://www.tapetechs.com and http://www.NoteInvestingClub.com! If your interested in all the details, take a look at our stats below!

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2016 was the most successful year yet. We are beyond excited about our results and are ready for all 2017 has to bring, we know our profits, and deal flow will only continue to increase. We are seeing a huge supply of Non-Performing Inventory and great results with our note deals for both our partnering private investors and our company. If you have idle money sitting in your Roth, IRA, 401K, or savings account, talk to us. We can help increase your return on investment while securing you by real estate. All opportunities are 100% passive. Contact us by email or phone to find out more, 407-205-7363, seasonedfunding@gmail.com

Wishing you the best in 2017!

Week 32 & 33

So I’m officially back to work full time (teaching kindergarten) and it’s taking up a lot of my focus, energy, and time. I’m okay with that because it’s the first of the month and inventory typically comes out in the 2nd and 3rd week of the month.

I feel behind on my weekly post to I’m updating you as to what all happened these past two weeks….

Week of August 1st – August 7th, 2016

  1. I’m giving our Memphis, TN borrower until the 20th to complete all paperwork to provide her with a forbearance plan and keep her in her home. With two previous BK filings, and a modification in the past I’m expecting extra effort to show good faith this time around and are requiring some extra paperwork to ensure her ability to repay.
  2. Volunteered with our local REIA (Central Florida Real Estate Association) and networked with several new investors.
  3. Paid invoices for any open bills on Friday (that’s part of our “batching” process).
  4. Looked at 2 new assets but decided to pass on them for various reasons.
  5. Sent an extension of contract on one note that is taking longer than expected to finish the foreclosure (the borrower filed BK once, attempted to modify the loan then never followed through on paperwork, and moved 2 times so we were unable to serve her…)

Week of August 8th – August 14th, 2016

Monday

  1. Looked at a new tape of 48 assets. Submitted 2 bids on these.

Tuesday

  1. Called our realtor to coordinate being a representative for our eviction of a contract for deed in IL. Our realtor is awesome, has a contractor coming out that day as well as a locksmith to change locks, and get us a quote on any repairs that are needed to get this property sold quickly!
  2. Contacted our borrower that is giving us a DIL in IL to verify move out time this Saturday the 13th.
  3. Called University Park, IL Village because in order to record our DIL we need to send them a certified check, some completed forms in order to receive an official stamp and record the DIL. This means getting the borrowers signature (which may be a challenge).

Wednesday

  1. Looked at another tape of over 60 assets. Made offers on 4 of these notes.
  2. Spoke with a bookkeeper about doing our books for us. It’s something we have been needing to outsource for a while.
  3. Picked up our check from our Jacksonville rental closing. It feels SO good to finally have that property sold – Let’s just say we are not made to be landlords!

Thursday

  1. Sent our pay off letter (initial investment + interest) to the lender on the Jacksonville deal. It’s their 2nd pay off from an investment in 1 month. They made a blended return of over 35%! Not bad!

Friday

  1. Paid invoices for any open bills on Friday (that’s part of our “batching” process).
  2. Contacted our attorney for our Tallahassee FC to see if there has been any movement.

Saturday 

  1. Our realtor managed to coordinate the move out with our IL borrower, although it was no easy task. We are still waiting on the signed document back from the borrower to be able to record the DIL.

All in all, movement is happening on several of our deals and we expect to continue to be closer to our workouts and a payday! 3354-a-little-progress-every-day-adds-up-to-big-results_380x280_width

Total Bids Submitted: 6
Total Bids Accepted: (2 pending approval (we’re in negotiations) 2 still waiting to hear back on)
Number of New Sellers Contacted: 0
Total Profit: $474.85