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[Music] everybody this is justin bogart from brightpath notes and welcome to the real estate note investing be the bank meetup for 2021 [Music] [Applause] [Music] hope everyone's having a great new year so far it's only been a couple of days but i'm excited for this new platform that we're on right now it's called stream yard and we're streaming this live to our youtube channel and also our facebook group that's the real estate note investing be the bank facebook group it's also streaming there live right now as well so i'm kind of new to this as well so i'm learning just like you guys are if you aren't used to a live broadcast like this so i know on youtube you can leave your comments in the comment section and they'll pop up here in front of me for me to read them and answer some questions for you and if you're on facebook you need to give stream yard permission to be able to upload your comments with your name and your profile picture so it's a little bit confusing but that's kind of that's kind of how it how it is on that platform so hope everyone's uh doing well and please chime in and say hi if you want and i'll be uh i'll be reading those off as we do our little presentation here so without further ado um oh someone on facebook says hi hi i don't know who you are just says anonymous on here so um so i've been doing this meetup for a while probably uh about going on three four years now and uh every meetup we get more and more of an audience and we get an outreach so we're really excited 2021 that we've uh we've got man i want to say we got over six 700 members now in our our reach for our real estate note meetup group which is awesome and so one thing i like to disclaim here is i'm not an attorney i'm not a tax consultant and i'm definitely not a financial advisor that i know of but this meetup definitely wouldn't be possible without some sponsorship so we have our company brightpathnotes who we have note deals if you check out the website we've got our note deals on this page uh assets we sell we have full loans we have partials as well so that's what we provide to the to the group syria is our local real estate investor association club vicky perry runs the organization there's her number and her email address up there and pretty much anything that has to do with real estate as far as education they're a great organization to get a hold of and just see what they have to offer it's it's a lot of content i'm telling you a lot of content that's actually where i got started and so other sponsorship is called launch fishers it's in fishers indiana which is a little place just north and east of indianapolis if you're familiar with the indianapolis area and so they are basically a shared workspace so if you're looking for a place to if you're local here looking for a place to kind of you want to be at home working or if covered restrictions allow you're you're allowed to get out and you can meet people uh at this place they got great conference rooms private phone booths they got high-speed internet connection they've got coffee bar inside it's pretty great so that's where i i'm a member there and it's been working out pretty well for myself our last sponsor for our meetup is dickey baldwin at bag better known as baldwin advisory group and dickie is the one bag for all of your real estate services there's dickies phone number and his email address up there reach out to him he's really good for due diligence stuff we use them really often for title work and we also use him for uh property inspections or bpos if we need them that's the main thing that we use them for but he's got a lot of other ancillary services as well so go check him out for those of you that are part of syrea this is actually a note meetup group it's a subgroup called notes notes notes and syria has a couple of things that you can follow them on they want me to point this out they got indiana syria for the facebook page they got a linkedin page as well you can read off that tag there and they got an instagram page they also have a youtube channel that's got a ton of videos on there it's all free a lot of people we got a lot of people that are in a lot of landlording a lot of people wholesaling fixed and flipping we got people like me they're doing notes they got commercial real estate stuff on there land investing almost any and everything you can see out there is uh is available on their site so you can also if you're part of syria you're going to log in and get your php credit so you can either take your smartphone pull out the camera kind of hover over that qr code and it should pull up a link for you to log into i think you could just put your name in your email and you'll get php credits or if you can't do that then you type in this url that i have pulled up here on the screen all right so bear with me as i am working through how to do all this stuff someone says hi all right fantastic if you didn't know already i have a podcast i am a co-host on this podcast it's called the two wealth show my friend super e is the other co-host she is a short-term rental person and we talk about anything and everything in real estate we interview a lot of people in real estate and just learn from what they do and what they know and how it can benefit you and grow your wealth is the whole idea behind it so we're on all the podcast directories that you can think of uh gosh there's 30 or 40 of them it seems like we also record the video stream of the podcast that we do on our brightpath notes youtube channel so if you are in our youtube channel now you can probably steer off when this recording is done and you can find um all the videos we've done we're on third season or actually our episode one of three season three just released today so you can check that out we would much appreciate that to subscribe to that so today's agenda is going to be about the note basics just things that we go over if you're not uh used to the note world here we can kind of go over what the basics are from where we start from and then also we do a mortgage industry update to kind of find out what is going on in the mortgage industry and then i got an asset that i want to show you guys as a review of a pretty cool little case study that happened so we'll walk through that at the end so if you've got any questions do not hesitate to fill out the the comment box wherever you are watching this from facebook or on youtube and i'll be happy to answer them as best i can i'm kind of running two machines here so if you see my eyes going in different directions because i'm looking at different monitors to find out what's going on i'm a one-man show today they call it stump the band right anyone wants to chime in on that comment you're more welcome too all right so this is the note basics so i try my best to explain what the heck we do in the note business and the best way i can show that is through illustration and this illustration here is you know mr seller and mrs buyer they obviously have a house that they're mutually going to come into an agreement with and whatever that value is is what they agreed to sell and buy for so there is a deed on the house and the seller of the house is going to convey that deed over to the new buyer so now they are the owner of the house the buyer is typically going to need some help financing the house they're going to go to a bank they're going to call up chase bank of america whoever and they're going to get a loan for the remaining balance that they owe on the house because they're going to put down some sort of down payment right so then the buyer gets what's called a mortgage note or a note and mortgage it's called in mixed that way and then so this is what the key ingredient is here the bank owns the note they don't actually own the house uh you the buyer if you're in the situation you own the house and the bank note is secured by that collateral that real estate there and so that's how paper is created right we've all kind of been through it so the bank owns the note this is the key part of it and the buyer holds the d they hold that paper to the house so those are the main distinctions here now let's get into the other part of the business where we are investing in it right so we have the homeowner and there is the security for the banknote and they're on the deed right there's the bank and they own the paper so we have an investor over here now this investor can invest in that mortgage note that was created the investor can be an llc it can be an llp it can be a trust it can be a self-directed retirement account it could be a solo 401k pretty much anything that you can think of that has a lump sum of cash can acquire this paper and this is what happens the paper is traded for money paper for paper so now the homeowner is going to make their monthly payments to the investor right they're not going to pay the bank anymore they're going to pay the investor so their monthly payments that are going to the bank it's now going to the investor whether that was an llc a retirement account so on and so forth so any questions about that feel free to chime in and i will be glad to answer them good evening patrick 20 21 can you believe we made it 2021 not a lot of things have changed really since 2020 because it's been so new but um everyone's been waiting to get to 2021 so here is um our mortgage industry update i thought this was interesting i was looking at bank cds and apparently the cd national average as of this week is a one-year cd is 0.21 percent point two six for two years point two nine for three years point three two for four years and a whopping point three six percent of five years can you imagine if you had your money in a cd for five years making point three six percent i wouldn't even want to do the math on that because i think that would just be so deflating to see what that is especially when inflation could be two and a half to three percent or even more right so i just thought that was really interesting with the times we have now looking at cds um so this is a snapshot at i believe is bankrate.com some of you may be familiar with that site it's a pretty popular site just to get mortgage information and loan information on so i was curious to see what the heck is the you know a 30-year fixed mortgage rate as of right now so you can see at the top of the screen there we if it's a new purchase home if you're spending about four hundred thousand dollars and you put twenty percent down so you put about eighty thousand dollars down and you got a 740 plus credit score a 30 year fixed mortgage your rate is going to be two point three seven five it looks like for these happen before they look like they're probably online uh banks so the apr if you're not familiar the aprs is basically adding the points into the rate and that's coming up with your true uh your true apr annualized so that's what that is that's why you see that 2.482 on the better.com versus the 2.375 so yeah your monthly payment is going to be 1225 on a uh 400 i'm sorry a 320 000 uh mortgage that just doesn't seem right that seems that seems too good to be true it seems like a lot of house a lot of for a low payment right relative to what you think a 300 000 mortgage would cost you so anyways so if you're not familiar um the cfa of bank rate um he is greg mcbride and he had some quotes that he put out recently and i wanted to read those off so he basically expects rates to end uh 2021 at probably about 3.1 percent but he says there could be some dramatic swings throughout the year so this is his quote here it will be especially volatile year for mortgage rates with fixed rates falling to even lower lows early in 2021 on economic concerns but rebounding in the back half of the year as widespread vaccinations lead to a surprisingly strong surge of economic activity and the inflation worries that come with it mcbride says so his rate forecast uh is in line with the general consensus among house economists and national association of realtors expect mortgage rates to be an average of 3.1 percent throughout 2021 which is up three percent from 2020 and the mortgage bankers association or the nba says rates will average about 3.3 so they're all kind of in line with that um just to see how the mortgage rate industry goes so um if you're thinking about locking up a refi or by purchasing a new home this this might be the time to do so right all right let's get into some more good stuff here so i saw this picture on the internet when i was perusing some graphics for today it says effects on interest rate on so if you look at i'm looking at the left side of my screen which is the dark blue stuff it has some numbers so this is your monthly mortgage payment for a five hundred thousand dollar home okay so the first line you see there is a sixteen ninety monthly payment at a three percent mortgage rate and then below that will be three and a half percent four four and a half five five six so if you had a six percent rate and a half million dollar house would be a 2500 payment okay now you flip to the other side and you look your buying power so the maximum home price you can get for a 2500 mortgage payment based on an interest rate is at three percent it would be almost a three quarters of a million dollar house for a 2500 payment at three and a half percent you see four four and a half five five and a half six percent was about a five hundred thousand dollar house and this of course is based on a 30-year fixed mortgage with a 20 down payment so these are the cream of the crop uh borrowers here so can you imagine uh three-quarters of a million dollar house for 25 payment it just it just seems seems off so that's what is going on right now in our world as the banking industry for conventional mortgage rates it's kind of mind-blowing right so like i said if you guys are filling out comments and stuff feel free to to shoot over some comments in the in the comment box whatever platform you're on and if you're watching the replay of this unfortunately you can't leave a comment live maybe you can leave it on the replay and we can get to it alright so black knight financial data is a company that has a lot of information about what's going on the mortgage industry so i typically pull a lot of information from there as it pertains to loans that we would invest in so they track fannie mae freddie mac jenny may they they track va loans fha loans uh conventional big bank loans and stuff like that and they give us kind of a heartbeat as to what's going on so we've been a lot of us have been monitoring this pretty closely just so we can see what defaults rate rates are and stuff so kind of don't look at all this noise in front of you we're just going to focus on a few things just to make it simplified so if you look at the total u.s delinquency rate loans 30 or more days past due but not in foreclosure it's already down to 6.33 which is about um another 10th to 2 tenths of a percent jump down in a in a positive direction um since uh december i'm sorry this is uh november data so it's since october they don't have december data out yet they'll have that later in february early early march so despite all the seasonal headwinds mortgage delinquencies improved for the sixth consecutive month in november um like i said they're falling six point three three percent as you can see versus six point four four the month before so it's always been trending in a positive direction it's been trending for six solid months which is a really really good sign okay the national delinquency rate is now down a point and a half percent uh from its peak in may which was about seven point eight percent as a default rate right so well early stage delinquencies borrowers one or two payments past due have fallen back below pre-pandemic levels seriously past due which is 90 plus days delinquent on a mortgage remain about 1.8 million above pre-pandemic levels so i believe in total we're looking at about 2.2 million of what we'll call serious delinquent notes so it would appear that the loans that are 30 to 60 days behind they're getting caught back up and they're not as much of an issue but once they get to the 90-day number there's not a lot of counties that are allowing foreclosures right now so this this number obviously gets ballooned if the borrower is not getting caught back up so it's 2.2 million mortgages that are in serious default right now and so once foreclosures start to be allowed in these certain counties and states as this happens you can see um a big funnel of loans going to foreclosures and we'll probably see a good good amount of non-performing loans come through now i don't think it's going to be a tsunami like it was in 2000 um like 11 12 13 and 14 just because there was there was a lot more loans going through the pipeline at that time so it'll be it'll be somewhat like it but not to the extreme that it was my opinion and i don't see them available anytime soon it may be late summer probably next fall or winter time when we actually can see them when people like ourselves can invest in them the the one the one to ten loan buyer is what i call ourselves uh wish we could buy a thousand at a time but that's just not in the cards today is it so yeah um i'm trying to look at some data points here off screen so 4 400 foreclosure starts were actually in november so it's 176 000 loans in active foreclosure they're at their lowest levels obviously since black knight reported the data since 2000 and that makes sense because counties aren't foreclosing right now right so prepayments fell 11 from october 16-year high but with interest rates as record lows as they are the refinance incentive is at an all-time high as we know right the prepay activity is likely to remain elevated in the coming months so i know i keep looking away from the camera but i'm checking to see the comments all right so i don't know if you realize this but some states are hit harder than others so with the november data that came in uh we know that mississippi was the unfortunate recipient of the hardest hit award this time so these are non-current loans and non-current means a combined foreclosure and delinquencies as a percentage of active loans in that state so they're saying in the state of mississippi mississippi there's over 11 percent of non-current loans mortgages in that in that state are non-current which happens to be the highest number that we see louisiana comes in second hawaii new york oklahoma probably a lot of states that hit that eight percent so let's flip it on the opposite end of that and we'll say state's doing well so we got montana that's a very low percentage there 4.35 oregon at 4.33 colorado 4.19 you guys can read them in idaho 3.45 whoo-hoo idaho that's pretty uh pretty low rate for a default rate um you also see they had a peak peak rates and stuff and you get into this data a little bit more like i said you can go to black knight financial data and you can really dive into this stuff and you can see those numbers for yourself they'll come out with a full report probably in a few days but right now they kind of gave us a snapshot of what november looked like okay um i've got things chiming in the background over here so the asset in review uh for today is going to be an asset that we purchased for one of our accounts and it is a performing first lien mortgage it's actually a contract for deed what we'll call an agreement for deed in inkster michigan i kind of wish i would have got on the map and found out exactly where it's at on the glove or the mitt i should say in michigan i don't know where it lands at but it's up there so come to find out there's a mother and daughter that are borrowers so both of their names were on the agreement for d the security instrument we purchased this node note actually a year ago i want to say it was january 20th so about a week from now is when we purchased it last year um it rented for about 980 bucks for this little house it's worth about 40 maybe 45 000. we'll be conservative and say 40. it's a three bedroom one bath about 950 square feet in eastern michigan it's not a bad looking house good piece of collateral it's very well maintained um the mother and daughter borrowers i don't know if that's really good or bad but i just end up the mother and daughter there so what i'll i'll get to the end story and we'll find out more about this situation so this was a recorded we call them cfd or aka land contract if you don't know a land contract is basically it's it's like a note and mortgage except we treat it as if it's a car loan so if you ever got a car loan from a dealership dealership holds that title they don't give you the title they let you in make installment payments on that car until it's paid off in full and then they give you the title to the car right so this is the same thing when we have land contract or contract for deeds where the bank actually is on title with with the house so me as the lender i actually am on the deed to the house and i actually have written a contract with the borrower where they owe debt so that's what i bought so i bought this land contract and so i'm the deeded owner and i'm the land contract owner as well and so if anything were to pay off or to refinance they would have to come through us first to get the mortgage paid off before we can release the loans that's what that is so unpaid balance is around twenty nine thousand two fifty interest rate was 9.9 percent which isn't uncommon for these really low balanced uh houses or these really low valued houses and the p i the monthly principal and interest payment not taxes insurance just principal interest was about 287 and when we were buying this loan last year we had about 224 payments left so it was a 30-year mortgage so it's a very long mortgage that's why the payment is very low but the interest rate's really high so we liked it so we liked a lot of things about it collateral looked really good we felt like we got a good discount on the note the payments coming in we saw they were making really good payments uh inconsistent payments so we liked it a lot so we went ahead and pulled the trigger on it as they say so i purchased this bad boy for about 25 000 bucks and i felt like we got a pretty good deal on that so any questions go ahead and chime in so we get this loan and then it turns delinquent didn't turn delinquent right away but we're able to get about eight payments out of the borrower so if you multiply 287 by eight you get 288 that's how many payments we collected so just looking at this like on a on a time scale if you will they made eight payments i know that's more than eight payments on those 250s over there sorry about the 250s i just realized that i used an old graphic and i didn't i didn't update the numbers right but you get the idea so it's the cash flow we got eight payments of cash flow when we bought it thought things were great and about four months ago um this loan started to default so they basically just didn't pay for four months and i'm fast forwarding up up until now so what was happening was we found out that the the borrower had called us over the summer and they said uh my mother passed away and um i'm not living in the house but i'm trying to get the house for sale to sell the house and so we heard some information from her for for a few weeks and then we didn't hear anything so she kept making payments and she made about two or three more payments and then all of a sudden she just had no contact with us and she went completely completely dark on us as they say or ghosted us if you will so come to find out they um she reached out at some point i want to say it was in december so last month and just says hey the house is sold or it's under contract to be sold and here's our closing date blah blah blah in january and so we're like okay because we had already started foreclosure we had already talked to a couple of attorneys and they had told us that oh that county is not doing foreclosures yet and you can pay such a such amount of money every week to to wait in line to see if they're going to allow foreclosures or not but they don't anticipate opening the floodgates for foreclosures until more like march or april time frame i was like okay this might not be a good situation but um ended up being pretty good so we had started acted like we're going to start foreclosure and then all of a sudden we got this phone call in december and it made our mind at ease so as the borrower's not paying they're collecting interest on all the payments that they're not making so they're accruing interest so we call those arrearages so they're building up a pile of money that's just interest every month every day compounded that's just building in an account and then plus any advances that we had made on the loan to go through the foreclosure part of it so those are called arrearages and advances so we total that up the borrower's going to owe pretty much over 30 000 maybe thirty thousand five hundred or close close to that so we'll just call it over thirty thousand dollars i don't have the exact payoff uh for it um so i should change that slide to non-performing right because it's not performing now so we paid 25 000 for this twenty five thousand two hundred fifteen we collected about twenty two hundred dollars on this note and the payoffs around thirty thousand dollars so we basically profited about seventy one hundred dollars on this loan and keep in mind basically a year almost twelve months to the day and uh it's a 30 roi on our money which we weren't expecting a 30 but obviously that is a pretty big large reward uh considering how sideways it could have gotten on us and so that's just one of the the more profitable loans that we had in 2020 uh even through all those pandemics so i was thinking this loan would have gone into delinquency because of covid but on all actuality i can't i don't even recall one of our borrowers being uh late during the whole covet process and as a matter of fact some most of our investors i don't recall anybody contacting me about um any of their borrowers not making payments because of cold related stuff so it seems like we've all had some pretty pretty good luck getting our way through this and so this is a pretty good deal pretty solid return for us we weren't we weren't expecting to make that much on it but i'm glad that we did and that is the case study for today um and like i said yeah that was 12 months almost to the day of when this uh this loan made its way through so i know we didn't cover uh in great detail a lot of things but i kind of want to leave this open for questions about um what you just saw in this case study so i'm going to kind of check out some of the the comments that we have going on yeah feel free you don't have to ask a question specifically about this this loan this case study or about what we talked about today it can be really anything related to the note business if you just have a general question that's perfectly fine too we definitely allow plenty of time like we are now to open it up open the floor up to talk about whatever it is that we need to talk about i was expecting to have a lot more difficulties with this new way that i'm doing this meetup so i was expecting myself to fumble my way through this quite a bit so i wasn't i wasn't anticipating getting done as quickly as i did with this case study so feel free to chime in if you're not able to chime in i understand maybe it's just new to all of us um but uh yeah so we have uh i'll go through some of the meet up stuff while you guys are still filling out some some questions for me so our next meet up is february 10th from 6 to 8 p.m uh we do encourage you guys to follow us on social media we have a facebook page we have a twitter account we have an instagram account as well if you want to reach out to me directly by all means do so it's justin brightpathnotes.com you can ask me any question we also do have a facebook group and some of you are on our facebook group right now and you're watching uh this live feed and if you're not just go over to facebook find the groups be the bank real estate note investing and you'll see this uh this be the bank picture in the background is kind of our cover for it and so go ahead and sign up for our meetup as well and we'd love to have a part of it we have people that chime in all the time and ask questions and we have two or three other moderators on our facebook group that can answer questions about what you guys have so if you're looking for note deals you know absolutely you can you can contact me directly for note deals we definitely have loans for sale on our website like we showed before and uh if you're looking if you're a broker or if you're looking to actually close loans we can help you with that as well we got a lot of experience closing loans we work with other other people that can help us with documentation a lot of attorneys and so we can definitely close loans for you if you're unsure what to do so by all means leverage off of our experience and stuff and let us do some of the heavy lifting with you in and for you as well so be happy to help you out with that stuff okay so your name and profile won't come up because of um stream yard needs to have you give permission for them to take that information and post it so this is going to be our anonymous facebook user here so it says what is the plan if your cfd continued performing sell after a year hold how would the roi compare to the 30 percent you got with the payoff so that's a good question so if they continue to perform we're probably going to ride that wave it probably depends on what account that our money is in that we deployed for this loan so if it's in one of our company accounts it's probably going to have to be recycled at us at a uh pretty quickly relative to a couple years maybe sooner so we would want to use a velocity model and resell that loan because that's what the business model is for is for for those that money if it's in our retirement account my god we're just going to hold it and let it ride we know it's going to pay off at some point now there's no guarantee but we know it's going to pay off at some point and so we just we let that ride so we like to build our account and our retirement accounts with just a lot of loans just let them build and also we can sell partials if we need to as well to recoup some of our capital back so i would say for this particular one if it held true i would say that we'd probably sell it um i would probably start offering it for sale after a year which is fine and the worst case scenario is i'd keep getting good cash flow from a really good borrower right and then the other worst case scenario if i sell it i can still make a little bit money because i can probably sell it a little bit more than what i bought it for because we got this for a good discount and so we can make a little bit of spread that way so you kind of see how the math worked so the roi would probably be a bit a little bit different depending on how long you hold it or what you sold it for the best case scenario happened to where i got a full payoff on this loan and so that way i could get the most money for this loan right so that was the best scenario so good question john asked uh so is the house actually sold when you when do you expect payoff sorry it took me a few minutes to learn how to chat i know the feeling john i know the feeling okay so i'm learning this stuff just like you are too so the house i believe is closing um today or tomorrow and that's when i'll be getting uh my payoff so just to kind of fast forward so you understand how it works on the lending side so once someone is committed to a closing uh borrower is they uh we get notified because we're on we're on title so they say hey justin bogard um we notice you own this asset this person is wanting to pay this off we see there's a land contract recorded and so then i immediately forward this stuff to my servicer and get my servicer involved so my servicer is the one communicating with a title company they're telling them what the payoff is because they have to calculate all those arrearages and the advances that i made and the servicing fees or whatever else i advanced if i had to pay any taxes or insurance stuff on there and it's all going to be one big lump sum of money that they owe and they give that to the title company and say here's a payoff statement it's good to january 31 2021 and so when they go to closing this loan hopefully and we got the agreement that says you know the the purchase sale agreement is for i don't know let's just say uh forty thousand dollars and they owe thirty thousand dollars to the banks and then obviously they would they would make the difference of their title uh closing fees minus the ten thousand dollars so that's kind of how it happens and i'm i should be getting paid off any any day now i'm not sure what day exactly it closes but that's that's what it is right now it's a good question fun exciting so this format wasn't wasn't too uh overbearing yeah if you guys have any other questions about real estate in general or real estate notes in general not just real estate i'd rather just stick to real estate notes if we could that'd be great so just reach out right now to the comments box and i'll pull stuff up there i'm getting a little bit better at this guy so go ahead and start feeding me some stuff even if you want to say hi it's still okay too yes don't forget there's our web page with uh where our note deals are at we got a couple partials for sale these are great for first time note investors that's what these deals are for we don't we don't really like to sell deals that are a little bit risky we rather keep them in our portfolio in case something happens to them but for all intents and purposes we we love to sell to first-time milk guys and gals we like to help you from the process from a to z like i said we'll even walk you through closing okay john john's follow-up question so the house is selling for more than what you are owed that's correct so because the borrower i think it was they made their last payment in september so that means they missed october they missed november they missed december and they're missing their january payment as well so they're basically missing four payments so since september they're accruing interest on a 30-day cycle compounded daily probably and so that interest is building so because they're not making a principal payment that interest account is building and i think it was over a thousand dollars in just a short amount of time that they owed just in interest on top of the fees that i i had sent out you know attorney demand letters to them and we send out um uh door knockers to the house to find out what's going on because they weren't completely dark like i had this person's phone number i had their email address and we had just like no contact from them for at least 90 days and so we thought the worst case scenario you know something happened or they walked out or they were gonna torch the house so we immediately sent somebody out to the house to make sure like is it still there is it still there right and luckily it was so hopefully that answers your question john hey patrick how you determine what you keep in an llc and what you put in a self-directed ira so that's a good question and it there's really no wrong answer it really just depends on the note in front of me so if i have a note that maybe is a little bit more risky and not a plain jane set it and forget it type alone i'll probably put it in our company account just because i can be more fluid with it and i don't have to worry about um my ira and going through a custodian when you know problems happen it's just it's not an issue it just becomes another one or two people where i don't want to get involved so my retirement account is just going to have a lot of loans that have um they're just bread and butter loans i mean i don't know how else to put it they're just they're just nice loans they're all performing i don't put any non-performing in my retirement account but all performing and i just let them build and we have something called the 10-year model too if you go to our website at brightpathnos.com we have a page called 10-year model it says like a 15-minute video and explains what we do with the 10-year model so basically your money will kind of almost triple if you do nothing to it but just start out with an investment amount and let it grow and let it ride because we learned the time value of money these loans are just paying off as early as seven to nine years most of the time you got john you got it good question patrick anyways there is our note deals page like we said i'm getting pretty good this isn't as bad as i thought it was going to be so you know how it is when you get when you do something new especially with technology you just you want to you think you're gonna be floored with it so i did practice enough all right we got another question here so regarding the closing on the sample deal would your office be responsible for creating delivering the release deed so yes in the eyes of the title company they expect the lender to do that so who's working on my behalf the loan services working on on my behalf who happens to be allied servicing is the company that we use really good company and so they're handling all that for me so i don't have to do that my servicing company does it and they and they do it because i'm paying them monthly to service a loan anyways we pay like less than twenty dollars a month and so it's just part part of their job that's what they do it says um so yeah i sorry i didn't read ahead uh servicer handles it and that's the most common way it works if you don't have a professional servicer you would probably have to get an attorney involved to draft up documents or you would have to figure out the payoff amount and you'll probably make a mistake to be honest with you it's honestly brain damage if you don't use a loan servicer so even if you're creating your own loan you you really want to have a loan servicer involved cool you have your first cfd paying off congratulations that's awesome i love it so if that doesn't answer your question reach out to me at justin brightpathnotes.com or leave a leave uh the comment and um in our facebook group ask the question if that didn't answer it for you but i think i got it i think i got you covered oh our first picture profile pops up that's cool i'm not going to try to pronounce your name because i'll probably butcher it up and you'll probably hate me for it so i'll just read the question do you collect p-i-t-i as your underwriting requirements you know what i used to be a real stickler for that for those of you who don't know p-i-t-i he's he's saying principal interest and taxes insurance that's our short little name for that so i used to be a stickler for that and i would only look at loans that had escrows for taxes and insurance because some loans guess what are not escrowed for taxes and insurance you can ask the borrower to escrow them once you buy them but the borrower doesn't have to do it right if it's not set up that way excuse me for a second this broadcast is brought to you by powering right um so i've gotten a little bit less stringent on that so not i would prefer to have the ti in there but uh if it doesn't it's still a good loan i'll pull the trigger on it so that's that's just my take on it and you can kind of convince the borrower to do so there's if you have a good servicer you know you can tell me like hey you know you really need to escrow this loan or if they want something in return if they're looking for a lower rate or something or defer some payments that's a way to get in that as well so hopefully that answer your question i don't know what you prefer as well but there is no wrong answer if it's your first time you probably want to have an escrow account but you don't have to so good question good questions tonight guys keep them coming hopefully i'm not ruining something here here we go all right i think i covered those we had three or four come at the same time there if i didn't get if i didn't pop up your question or read it please comment back in and say hey dummy you didn't get my question this is different than doing it on our zoom account because on our zoom account we can um unmute people and have them just go ahead and start talking on this account it's not really set up that way for a stream yard we have to invite you to be on the on the cast on the broadcast all right so this is one it's it's helpful to have another person that can run the boards for you so i am um we're about 45-50 minutes into our presentation today i didn't have anything else for you guys i didn't mean for it to be super short and sweet but maybe you like it that way i know i a lot two hours for this stuff it typically doesn't we'd like to to talk at the end and bring up questions and stuff and try and help you in any way that we can like i said reach out to me at justin brightpathnotes.com if you have any questions in the future if you're looking for deals you're looking for partials if you need help closing a deal we definitely can we have services to help you out as well on the horizon we've we're going to have some technology on our side to help you guys if you want to kind of track your loans and do it in a more of a crm type of fashion we're going to have some stuff available for you pretty soon in a couple of months for you guys to to go off of a subscription model and we'll have some answer products that'll tie into that as well we're kind of trying to make things a one-stop shop for you so anyways i'm justin bogar with brightpath notes remember we've got the deal for to make your cash flow thank you for being a part of our meetup tonight and i hope this went well those of you that are live on our call right now hope you enjoyed it thanks for chiming in um we uh we have one more question that just popped in at the very last second says you mentioned your podcast that you're looking to ramp up for your marketing can you give me some ideas on what methods work best this is a good question i like podcasting it's fun it's different so ramping up your marketing i'm not an expert at podcasting i know the basics of it and i've been learning every year we've been doing this how to get a little bit better at it so what works best is trying to establish a following having a good um format of what you want your podcast to be there's a obviously we all know a 100 podcasts out there right now that are all real estate or they're all similar in some way shape or form and so you either want to stand out or you want to stick to what you feel like is the content that you want to provide to somebody and you need to have somebody that can help you produce it and you need to have a platform in which to output it on to all these podcasts audio and video directories and if you don't put it out to all the directories and all the channels you won't get as much exposure to it and so that's just the idea behind social media marketing as well if you don't put stuff on all the platforms and keep people engaged and keep content going you're just going to disappear as they say where does a company go to die we'll go to the second page on google and that's where the company goes to die right oh i'm sorry i got off on a tangent right you meant i meant ideas on note sourcing so networking networking networking was a big way that i got um into the note business and i was able to find a lot of sellers institutional sellers what else i did at the beginning was i sent out a lot of direct mail campaigns and so i would send out ones like i live in indianapolis area so i sent them out to indiana michigan ohio i think i did kentucky and i would get a ton of responses from the letters that i would send out and i would answer the phone and i would collect information and i would either choose to buy that loan myself or i would call up an institutional buyer that i know and and they would um they would figure out what price they would want to buy it for you're playing broker or middleman with the seller so that's one way to source deals as well if you have your own money it's still a good way to source deals because those are the best deals the most profitable deals we're buying three right now from from a local person and it's getting your name out saying hey i buy loans is another great way to do it that's kind of how i started off and it's a slow build and just let people know like hey i buy loans and buying mailing lists is a great way to do it yeah john so i tried to this time if you are on our email list um you would have got notified a couple of times that we had a meetup coming up and um so from that going forward if you are subscribed to our youtube channel you will get notified um i believe you get notified as we're going live and then for the consistency of the meetup group it's always going to be the second wednesday at 6 00 pm eastern is when we're going to have the meet up so sorry about that i'm still learning about how to do this stuff for the for the live broadcast and how to get the info out there so thanks for the feedback though i appreciate that and keep the feedback coming guys if there's something that's not coming through right i have no idea i hope obviously you're hearing me because you're asking questions and stuff so that's a good sign and i can see that my um [Music] powerpoint presentation is working so um yeah this is this is new to me so hopefully this is this was nice nicer than going through zoom if not chime in and say hey man this was done go back to zoom and we probably will end up doing that so thanks a lot for all your comments and your feedback today like i said reach out to justin at brightpath notes and you can watch this replay um basically as soon as we're done ending the broadcast so i'm justin bogart bright bath notes guides i will catch you on the february 10th from 6 to 8 pm have a good evening guys