How To Sign Indiana Banking Forbearance Agreement

How to industry sign banking indiana forbearance agreement

this is the no closers show where you get the latest developments in distressed note investing and learn the secrets of how you can control millions of dollars worth of property for pennies on the dollar get educated and entertained by someone who has closed thousands of deals and lives to support you in achieving the same now here's your host CEO of me clothes notes Scott Carson comm podcast and get fundable out there as well he's out there the credit Massiah out there sharing his credit Bible and helping Americans get their profiles fundable on the residential and commercial side of things and we were talking before rock-and-roll and this episode of different numbers are not they're kind of scaring people out there but a yeah welcome wake up buddy teaching and being such a very sought-after speaker right now they've been going on oh thank you thank you yeah there's a little saturation going on because not only we're almost every other day we're we're pelting our all of our social with full-blown Facebook lives updates podcasts that are triggering because there's a lot of questions going on out there about how do I prepare two for a for a recession we call it a soft landing right I did a three-day master class literally three-day massacres just recorded it announced that we came up with the two days earlier about how to thrive how to survive and how to recover right how to actually parachute down rather than crash and burn yeah you know for if the worst-case scenarios but some of these numbers just keep they keep poor tending to be in the worst case scenario right and yet as you and I were just talking here in in Salt Lake City appreciation and properties is still going up and still driving and asking every asking price is being topped with a the offers that are being sect accepted are over asking price so there's mixed signals going on out there so let's let's take a look at these these numbers and and and kind of give our interpretation I think this is a great thing for for our listeners because they need to know that it's all's not right in River City yeah that is a truth well it's the thing is same thing here in Austin Texas see the appreciation so going out people like oh it's still selling stuff and we all know numbers can't keep going up like it is and I think they're prop the part of fish Lee I think a because we're still in the limbo phase somebody's modified things everybody still kind of figure out where everything is at on stuff but let's talk with the first number that we talked about the the forbearance numbers we're in the news came out Friday and talked about basically nine point seven just under ten percent of all mortgages ten percent of mortgage holders are or mortgages are filing for forbearance and deferment yeah this is crazy I last week i also attended a a web class on forbearance agreements by some of the biggest servicers out there and then and you know what their number one concern was because it's basically chopping shop this is me talking shop this is me fly on the wall I don't belong there I'm a borrower facing guy and I attend all the lender facing events out there you know what their number one thing is how to how to handle the the crush of the short-term the 90-day to the six months but every single one of them are planning permit that I have a flow chart here that shows how to prepare for permanent forbearance now they're they're they're City here so there's a firt I'm looking at one that says on seven one is when there is when the six months or baron agreement is be if they give a window they have a second six-month forbearance agreement it's on January 1st right so they're just they're modeling that and they and they actually said the words perpetual now we all know that no one's gonna give everybody a free mortgage but I think that the lenders now this is just me speculating but you know this market better than I do I don't think the lenders want to have entire neighborhoods empty of inventory that take five plus years to to rent out or sell off again right they don't want to go the expense of especially for seconds the expense of going through the foreclosure process compared to the yield on on just barely making their money back and some own didn't get their money back I don't know where where are you on this one because I just know they're looking to keep people in the houses so that when it bounces back they could start paying them again instead of so you know a landlord or or a new real estate investor I this was well I I've been doing this I've been doing some research you're looking back at previous deals that I bought and sold here in awesome are comparing it last couple episodes you know this white house that was originally bought for 125 now worth 265 over the last 18 years and looking at where the markets were so what happened 12 years ago we had area in South Austin called del Valle was a newer market same thing in other places east of Austin called Manor nice builders went in there but they were very heavily laden with the 500 $2,000 down kind of programs don't need to have decent credit but get in here and then they were first patent default or when the taxes reappraised or the the advisory praise when the tax base came in it was not one with a lot it was for the improvements now they were defaults for that and literally high schools shut down because the foreclosure the neighborhoods were think I think if this rate out Marion's right they're breaking up so banks don't want to lose they want protected so I think they're taking the bite for six to 12 months waiting to see you know okay government governments can have to bail us out like they did last time you know we got notice whether that hand to the government notice how the bailout is appearing this time instead of going to the bank itself and and remember the big complaint from the Big Short and all that is that all these all these CEOs and all the this the the sea level of corporations or executives are all getting these hundreds of millions of dollars in an organization for bonuses they're right this time they're putting it into the tenants hands right they're saying we'll pay you for their payments to keep them in their houses rather than take them give you the money so so it's a whole different strategy that the new normal here is radically different in fact one of the things that was just stunning to me in this in this example was that their if they're working so hard because a bounce back what are they thinking another two trillion dollars in PPP and other types of stimulus they're trying to get the money to to either to the bank on behalf of the borrower or to the borrower so that they can continue to make the payments one of the things that's a big deal here in Salt Lake City and other places in the country is that I had I had one of my business associates come to me and he goes he's been looking for three weeks for for a particular type of marketer for in his business and they know one he goes I haven't found somebody that's quality and hireable because this six hundred dollars extra a week plus unemployment benefits they're making more money and employment benefits unemployment benefits than they are nobody want until that until that cow is empty of milk he said I haven't found somebody for three weeks now you would think with all these lives then I'd be a marketer hell like that should be an easy hire right uh so this is the this is bizarre uh this is we're we have all kinds of double binds going on right well that's the thing is I just talking somebody don't have you can't keep printing money there's no backing behind it with no real income three trillion and only 200 of it 200 million that going to the like the PPP plan yeah you know cuz somebody else is getting paid out there you look at also when I looking at China has divulged themselves of most of the Markham mortgage investments that they had in before him whereas most the time you know 10 years ago China owned half the mortgages basically they were they were in a buy mode up but before now they're divesting uh there is well like you said inflation looks is is we haven't thought of inflation for a decade and a half since the since Wow for a very long time right and now well and now with all of this currency in play everything's get getting cheaper and easier and so that just forces that's just gonna force us at least the interest rates to counteract now I don't know when because we're it what's our next number 25 percent 25 percent unemployment now it let's let's bring some perspective to these numbers so that there's a whole span plus or minus 15 percent depending on who you ask and what they're measuring so everybody uses the benchmark of 25 percent unemployment in the 30s right when we're after the after the big crash now causing the Great Depression well where I don't think we're ever gonna be able to unless it is truly the zombie apocalypse we're never gonna go back to that level because there is no communication capabilities there's no rebounding capabilities there was no Fed the Fed was what 12 years old at this point I mean it was just a brand new organization with no monetary policy to speak of ER and at least no monetary experience to speak of right and so so now if we're sitting at the if we're sitting at this the what do you call it the the the crux 25% is a big deal now but it's not as hurtful or impactful compared to the compared to the what do you call it the the the the small nature or notion of what the country was back in the 30s right that was that was devastating because you have a quarter of the population that are in soup lines and it's all agrarian it isn't just manufacturers I mean it was just a mess here we have manufacturing service industry now we're all telecommuting you know I mean what my entire team's working hope from home from up for a year they're so low overhead when it comes to I'm just the cost of employment so 25 percent so the the numbers that I read were 15 percent actually on the that were actually receiving benefits over 30 plus million 33 million um Henry Friday Oh 36 36 million had filed but not gotten benefits right and then so again where the the message for this that for this episode is that the two opposite things exist we have appreciation and properties and no employment and 33% 1/3 or 2015 225 validated unemployment right that are receiving benefits so this is this is this is no boy no this is this is crazy right there was one of the number that we that we talked to you exactly right you talked about basically the 10% forbearance agreements yes yeah 10% forbearance agreements 30 percent or 25 percent unemployment and there was one other one that was that was like anyway go ahead sorry say Oh 50% of small business owners not expecting to rebound yes that was the other one 50% of small business owners in a poll are not expecting to rebound beaver and a cup for a couple of reasons at least one that it's a small business it takes a long time to build reputation and and your product offering and your connections etc etc if you are squeezed out by either the employment cost the loss of JA the loss of opportunity if you're squeezed out the people who were your customers have to go somewhere else and if they're going somewhere else during this period we have to start literally start over our businesses I know it for cleaners window window washer small business on small business owners restaurants every boat if if it was the place to go for a particular restaurant of course the chef's not going to change things are not going to change things are not going to to be horrible but you're gonna get into new habits or new opportunities or new this new normal becomes completely different and so small business is going to is going to it does not bode well and one in small business there was and I think I read it may have been the same one that you had read where they oh and the other one was that the that women-owned and by minority-owned businesses have been like nine hundred fold under served by the PPP and the Eid L offerings for for a multitude of reasons that I didn't know about it didn't learn about it or when they when they they're they're banking institutions smaller banks didn't even get funded until the second round of funding for small businesses local businesses the community businesses or abate the community banks and small banks they didn't even get funded with their money until the second round right so we missed an entire that so the demographic usually follows where the community is or where where everybody's in mille everybody isn't with Wells Fargo and Bank of America right so so that it that also pretends bad juju because we're good entrepreneurial spirit of this country small business drives this thing and and what happens when you kind of gut the you you got the entrepreneurial spirit because the infrastructure is so let's say I'm small business owner going through hell right now I've got my small business shut down or operating in a reduced amount of capability so I'm barely keeping lights and I'm basically just doing trying to keep my staff going all right but everything is through my entities would now be a good time to start a clean LLC to start running some things through that so in six to twelve months you've got some history of some sort in case you do have to go the bad route with your existing LLC yes actually that's that I'm glad you brought that up because what is what is a brilliant opportunity is that remember a qfe okay will you push that right back there there you go perfect um my speaking of my my my window washing crew just came through I I can look out beautiful windows right now so yeah alright so but but the thing is is a qualified fundable entity does not have to be one of your deal entities or deal businesses right if you're a real estate investor if you own if you own 14 different let's say you own 14 franchises right if though you have to close shop on some of those franchises the way we teach in the bootcamp you don't make those the fundable entity you have a separate entity that is fundable so even right now it is brilliant to do it to follow what you said is open up a new LLC start aging traffic take take revenue from a cache that you're using and in this one run through and run it back pay all your bills we're supposed to but run deposits through this other ones to start building a second relationship with a new entity that's that's actually brilliant Scott well done just trying to keep things alive this is all what also makes sense to go and get some line of credit the business side of things we could like a secured credit card where the account at the bank they offer that up for your business yep this this is bizarre we came into March with three hundred and twenty seven plus thousand dollars in client fundings right you know what the number was for April now we're already in covent coeds full-on by the end of April one point two million dollars in client fundings yeah so whoa yeah so here's the here's the thing guys they are the the lenders are lending but and I just want to pull up my so think of a target right in prosperous times hitting the target means you're fundable or somewhat fundable right but during the outer rings are our process the way we teach in the book and the bootcamp and the mastermind are all designed to make your scatter chart super tight so you're every one of your approvals are super highly fundable approvals well in in the times that are coming right now the target gets smaller but you're so dialed on the on the the tight scatter chart that you're still taking down money 1.2 million dollars this in the month of April because of because fundable people still get business credit lines business loans you know the things that are um oh and by the way I'm having a blast with Wells Fargo I hope Wells Fargo watches because they're manual review so so I have a I have a fifty thousand dollar business line of credit right and with Wells Fargo so I keep charging it off using the money to rotate through my other my other accounts and then I pay it back and they keep asking me do I want a credit limit increase so we're talking about making it 75 now but I charge it up move those fun s to the other accounts just like you're talking about starting a new LLC drive a minimum daily balance in there so you can start getting the positive credit for and then paying it back off you're going you know what and that very usage model is going to prevent that but is is going to discourage them from dropping my limits because the model I use shows that they are I'm training the algorithm to support my to support that I'm not good it would not support their business model to shut down my busines now here's what's interesting the new normal I wasn't using my credit line before last January and December etc because I wasn't because I didn't need to I wasn't trying to protect it because they was gonna stay open forever now one of the strategies that we teach is to roll it in hard times and start building other fund of fund in relationship with other banks by running accounts money through those accounts but I'm teaching Wells Fargo that hey this is a good borrower we're gonna keep this open because he's his track record is to pay it back I wouldn't never de connected those dots without the damn recession prospect the tidal wave so I'm sitting here learning like I always do I connect the dots and make new and make new banking friends as a result of trying to protect my own line who would have thunk right so that's oh that I'm glad you brought that up God you brought very nice I love it I love it I love a lot of people can listen out there me maybe and I'll be thinking clearly because the fact is they're so emotionally tied into things I know lot of people you're going through foreclosure financial difficulties it's a hard thing to see the bigger picture and even a harder thing to take action sometimes and that's tough and that's when you really need hey get off your butt go down to the bank up on your secretary stay call our buddies at lawful necessity yeah you'll want a payment plan for there cuz they look business credit that way for you yep the whole thing the whole model is is use intelligently you so you guys you have to hit those underwriting criteria right you want to hit the triggers that says oh this is a valuable this a valuable cardholder or or credit line holder so um no I think I love our little monthly check-ins because we'll be able to talk the second week of June and go so were we so full of crap on in May or were we right on right yeah III don't mind being right about trying to help and protect your listeners on how to thrive and and and if nothing else at least survive during this during this time because even though the appreciation is still going on I don't I don't know how long it's gonna go and if people aren't using their money if people are taking advantage of forbearance agreements to kind of wrap that up back to where we started then they're got cash flow to do other things which strike so I tell everybody guys if you don't have to take the forbearance agreement don't they're planning this through the next year so forbearance is not gonna go away it is not so don't use it until you absolutely have to this isn't a cash flow mechanism if you use it that way you're gonna burn your relationships with the lenders but hold it in your back pocket absolutely because if that's the that's the endgame then then we got to use it when we do I just know these guys are planning on permanent forbearance agreements until everything rebounds I don't think they want the inventory they they do you know there's well if you look at a couple things we the market loss in the commercial real estate space commercial mortgage-backed securities lost fifty billion dollars in the first two weeks it dropped to zero my emails been flooded with mezzanine lenders and hard money lenders looking to sell off their newly originated stuff the last six months off their books if they can because they don't believe the values you're gonna stick there you also look at different MLS listings and look at don't look at them outsold looking at mount of properties that had a price reduction and seeing things like that Harris County's a big indicator Dallas County big indicator huge amount of price reductions over the last sixty days as people are trying to eat it we're gonna notice those are so it's very geographic centric it is affecting Austin but Dallas is already down right so there are opportunities that's what we're telling everybody is get it get your credit lines up get your get your game in play because there will be opportunities how many people ran does Indiana in in the last ten years because it was Ohio because it was fire sailing back there right so there's gonna be crazy opportunities just just keep your honor your relationship with your lenders and keep those lenders lender keep those in a super tight and in play because if we do then we're gonna be able to take we're literally gonna be able to leverage this for the future and if they know that where we honor when super tight scatter chart and that the target is small and our fund ability hits those underwriting bull's-eyes when the target gets bigger they're gonna we're gonna be preferential a preference or preferred customers per all these letters I actually had an investor a bank I reached out to bank asset manager they've had a client for 56 years of the community bank 56 years never missed them a payment been on time is they don't want his business anymore he's paid on time for 20 years doesn't want his business anymore because his numbers don't match up with what the bank wants to go long term automated is that's Italy it's right there right yeah that that's where we're that is where we're we're headed right I have my client Tennessee Tom seven years banking relationship but the other thing happened the second he started implementing the right modeling they're like oh I like this guy right so after seven years the same 20,000 were being reported into his or being deposited into his account every month but never offered any credit instruments so that that's the exact same case that this guy's but he's been doing it for 50 plus years and isn't hitting any of the right markers for a lender to go Shh this is awesome love these guys see you know Sam yeah exactly when's your next ability boot camp boot camp is we're staying pretty faithful it's the 6th and 7th of June and then July is gonna be the second week because because of the fourth of July weekend so so everybody come the boot camp is never the same we it is the deck is even different I've even Decker I need some cool stick figures I even I I engage the artist to actually make some custom stick figures for optimization so it's pretty trick but we're but I want to illustrate I want to keep reminding people that now is the time right now is the time to push the button and and make something happen because the the opportunities are only gonna grow from from here I really believe that exactly yeah you guys can register I going to get fundable boot camp comments get from the bull boot camp comic it always this or you feel out what else they have are going on and get fumble calm yeah I make sure you get a copy of my new F word well there it is the new F word as well I'm doing a reading twice a week I'm on chapter like 9 now every every every week I read a couple of chapters and just share the highlights and everything so join us on get fundable calm guys love it love it thank you Scott always a play be on your show and I love our our discussions because there's so much insight between our experience there's dots to connect from the things you know things I know and then all of a sudden there we've got we got magic going on so thank you that's right magic man all right guys and gals it's gonna wrap it up in this episode of the new closer showed take heed look into the numbers don't get so scared realize there's opportunities everywhere you just gotta know where to go and when to act now I'll be the time to act versus being so scared we find yourself being scared and nervous hey don't sit there because decisions will be made with or without you taking action so make decisions take control your destiny and we'll see you all the top [Music]