How Can I Sign Ohio Banking IOU

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in this video we're gonna cover how to buy notes from banks and specifically we're gonna cover can you buy a note from the bank why would you want to buy a note from a bank why do banks sell notes which banks sell notes and then a three step system for buying notes from banks so if that's what you're for let's get into it so I remember the first day that I learned that you could buy a note from a bank and so I was working for banks I was working independently selling assets for banks mostly doing foreclosures commercial construction and multi-family foreclosures and that kind of thing and I got a call from a guy on a upcome upcoming auction that we had the guy said can i buy the note on this and I said I have no idea and so I called my mentor I said Tom this guy wants to buy the note can he buy the note and Tom said well sure he can buy the note it seems silly now but what I didn't know before was that when we're talking about a note we're talking about this is this an obligation can be traded like any other asset he can be traded just like anything else they can be sold when they're performing they can be sold when they're non-performing and banks can can do this whenever they want so the fact is that yes you can buy the note from the bank now one of the things that comes up a lot can I just buy one note it depends and what it depends on is the size of the bank the size of the note the type of the note but before we get into buying individual notes let's just back up and change the way we're thinking about that if you're gonna go through the effort of finding a seller and then identifying assets that they need to sell why would you only want the one note it doesn't make any sense there's so much appetite out there right now for notes if you can find a package get the package there are so many investors so many brokers so many other ways for you to make money with that just because you can't personally buy like the entire package doesn't mean that you throw out throw out the package of notes because you're not buying one single it doesn't make any sense so don't do that so stop thinking about this in terms of I just want to buy one note can I call banks and buy one note don't think like that if you discover that they have more to sell then you should find out and figure out how you're gonna make money with that so don't pigeonhole yourself into well I'm just looking for one note that doesn't make any sense alright so that takes us to the next thing which is why would you buy a note from a bank okay and so the short answer is the discount if you're not sure why you buy a note from a bank then you should check out some of our other articles because it sounds like you're at a place where you don't quite understand note investing what I'm gonna assume is that you already know why you want to invest in notes and that's not what we're gonna talk about here we're just going to talk about how to buy notes from banks okay so you might be wondering why do Banks sell notes so there are a number of reasons for this one can be that they want to stay out of the chain of title for example things like gas stations or other potentially environmentally compromised or questionable assets Bank might not want to be in the chain of title for those in fact I've seen a lot of deep discounts on assets like that another reason is they would want to avoid dealing with the municipalities a lot of minimis municipalities these days are having tighter regulations on how their REO and foreclosures are handled in their counties or in their cities another reason would be just to avoid foreclosing on specific borrowers another is for speed there's also a lot of compliance and regulation that banks have to deal with that you and I don't have to deal with there are lots of reasons why banks sell notes but the key for you is gonna be to find the banks that are selling them you can find out why they're selling those particular packages later but I've seen everything from loans just being on a covenant to them no longer being in the lending box that the lender would like to you know to see them in there's so many different reason that banks sell notes the main thing there is to find the ones who are selling the notes okay so which banks sell loans or notes to investors in the answer is that a lot of them do what I'm gonna suggest you focus on especially in the beginning unless you're a big fund then I suggest that you start with your local community and regional lenders and what I'm talking about are banks that are not the Bank of America banks that are not Wells Fargo or Capital One or US Bank which isn't to say that you can never do deals with those banks but when you're especially when you're first starting off especially for your small fish these smaller more local banks are where you're gonna have your best shot and so this is gonna get you where you want to go a lot faster now here's the thing is that there are a lot of banks and credit unions I think today we're over eleven thousand two hundred something that means is that you know you can't you can't just pick up the phone and call them all you have to identify which ones you should be working with and so we'll talk about that in just a minute in general the way that you want to start with this is with your smaller institutions because you're going to be able to speak more directly to real decision-makers you're gonna have less red tape you're gonna be taken more seriously and you're gonna have manageable deal sizes if you're watching this video to learn about this then you should probably be starting with your local regional and community banks that's the way to start so how do you find these banks if there's 11,000 some odd banks and credit unions how do you find out which ones you should actually be spending your time with and so here's the thing is that banks don't list nobody lists the individual loan status for any particular loan so you can't for example see that mr. Jones over at one 230 Main Street is thirty five days behind on his loan that's not reported anywhere okay the thing is that there's a bunch of information out there about how to find these about about which banks have them and there are a few different sources and so on get into that now so that you know how to find these banks which is really step one in the three-step system that we're talking about which is you're gonna find your lender prospects there's a couple ways to go about this so you can do this with free public data sources so the FDIC which is at fdic.gov the FFIEC in the NCUA these are all regulatory bodies for banks and credit unions and they have reporting where they can actually they'll actually show you what is happening in the portfolio so you can see what sort of a non-performing residential mortgage loan volume does any bank or any credit union in the entire United States have in fact you can get all sorts of details in there now this is a matter of going in and downloading spreadsheets and PDFs and that kind of thing but I want to tell you about something else which is Bank prospector which is a software that we have at distress procom and it's built specifically for folks like you who are looking to do non-performing node or REO deals direct the banks and credit unions what we do is we pull in all the information from all the banks and all the credit unions on there late and non-performing loans and REO as well as health and other cell and motivation type indicators and you can see things like the non-performing portfolio by asset types you can see what's happening inside the lenders distressed assets pipeline how much of each kind of deal might they have available in there you can see whether or not the lender is holding loans specifically for sale that are not performing you can see if they've sold them in the past and a bunch of other stuff that helps you identify of this world of thousands of lenders which one of these lenders should I actually spend time emailing or calling in order to find the deals because that's how these deals are found which really brings us to step number two which is finding decision makers deals like this are done between people here's sort of some of the things that go into who figuring out who's in charge of selling notes at any particular back for one thing depends on the size of the bank and the asset type I have been involved in deals where it was a commercial note that went all the way up to the president because it was such a small bank and such a big deal sometimes there's a secondary marketing desk you might find that it's a special assets or a workout officer especially in commercial you might find out that it's just some senior level of management somebody who's responsible for credit or for commercial lending and so it really depends but your job should you choose to accept it if you want to do these kinds of deals is to find out who is responsible for these things and the way you're going to do that is with email and LinkedIn and by phone because you're gonna have to make a personal contact with these folks okay you're never gonna log on and just enter your bed and I don't want to say never because it can happen down the road but today that's not the way it works not for any bank that I'm aware of that is step two is we're gonna find and connect with our decision maker for our subscribers for bank prospector subscribers they have access to more than thirty thousand Bank contacts so our full-time contact managers and all they do is add update clean purged edit contact we do that with about a thousand contacts per month in terms of like purging and adding if we don't have a contact that you're looking for in a bank we have a concierge contact request form where you'll actually just put in your title at the bank and then our team gets out there and they'll go find them however they need to find them and and get you the information if it's available anywhere which brings us to step three which is implementing a system so that you can be there for the sales some banks sell on a regular basis I worked with a large lender and we could count on the second quarter and fourth quarter all the time just selling selling selling it's fantastic some of them only sell here oddly just because they don't have something to sell today doesn't mean that they won't have something to sell next month or next quarter or even tomorrow these are folks who have jobs they're sitting at a desk that come in you know at 8:30 or quarter to 9:00 and they get the briefcase on a bologna sandwich and they sit down there and they might have no files on their desk at the beginning of the morning by the end of the day they've got a file on their desk and they know that now it's on and this thing's got to go what you need to do is after we've identified okay here are the lenders we want to talk with here the people who are in charge of this now you need a system for following up you need a system so that you are not spending all of your time doing this but so that you're still top of mind when it comes time for them to sell so that you can be there when the deals happen and that is my best advice for folks a lot of folks don't do what it takes that maybe they'll make one call or this send an email and say yeah nobody's selling well not if you handle it like that no then nobody's selling because you're not there at the right time and so that's one of the things that we teach inside of the Academy is how to set up a system so that you can be there when the sales happen buying notes from banks can be hugely profitable okay with your brokering and making transaction fees or you're buying them for your own account if you have you know raised money or you're lucky enough to be or productive enough to be independently wealthy or if you've you know raised funds or whatever it is here's what I just want to recap with you is that if you're gonna buy notes from banks okay first thing is start with your local and regional lenders and then what you need to do because there are so many lenders you need to narrow that down and so I suggest that you identify though the banks and credit unions that are the most likely to sell and you can do that by looking at some of their publicly available indicators like what's in their portfolio have they sold before do they have anything that's held for sale now what sort of non-performing loan ratios do they have all of this kind of thing which we teach you about in our freak and also in the Academy the next thing to do okay so you're gonna find people who are in charge of selling because this business is definitely a people business so if you're not willing to engage with people you should just forget about buying notes from banks at all because you're gonna have to have some conversation gonna be on the phone gonna meet them on LinkedIn but you might even go to you know a symposium or conference and you're gonna do some email and that's the way the business works and then finally do you need a system so that you're gonna be there when the bank is selling notes because you could call the perfect prospect today and they just simply don't have anything and then you could find out that next week they've got something and they've got two weeks to get it sold and so the thing for you is to get in there and to establish yourself as somebody with them who they can trust and they're gonna they're gonna like to hear from and then you're gonna have to set up a system ideally something somewhat automated so that you're always there so that you're top of mind whenever they're looking to make a decision to sell Bank prospector will help you do all the research help you find who you need to reach out to it'll find out which you help you see which banks you should contact and I'll help you find out the exact person their name email title etc and then if you don't already have a system for prospecting and following up then I suggest you check out our training in the Academy where we'll walk you through proven systems for getting your foot in the door and then being there when the deals happen so that's how you buy notes from banks I hope this has been helpful for you if you got any questions at all go ahead and ask them down there in the comments and I've got a couple of links here to some free resources and also to the bank prospector software that we talked about get out there buy some notes from banks