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well good morning everybody this is Troy forward with clinical investments and I want to thank you guys for attending what I'm going to call our Saturday morning coffee and the I want to share with you guys what we're doing and that's the whole reason why I called put this webinar together very quickly obviously it was on short notice which came yesterday and very pleased with response we had the people that signed up for the for today's call hopefully everybody will make it if they don't you know we'll shoot them the recording of the call so they can listen to it here at their convenience but here's one of the things that in an ever-changing world of real estate and the fact that deals are becoming harder and harder to find and good deals are becoming harder and harder to find and people are looking at different ways to market and to well in I say create different relationships and different angles avenues different techniques that are being used in the marketplace and what I find rather interesting about all of it is that everybody keeps forgetting the number one source of fuel flow and the number one source of deal flow automatically is the banks and the institutions because they're the ones that lent the money and the banking institution is a 10 trillion dollar industry 10 trillion dollars and that being said they're the ones that consumers went to they're the ones that lent the money to the homeowners and they're the ones that took on the financial responsibility of that relationship with homeowners and and that's that's their model I mean that has been their model for decades if not centuries at this point and we all know that because we've all at some level or some time or another have borrowed money from a bank and with us for a house or car or a credit card or a student loan or SBA loan or whatever it is we borrowed money from a bank because why because the banks have the money so there's no mystery to it and what I find interesting about the current industry condition is the more things change the more they stay the same and so gurus are out there trying to how do you say come up with new techniques and like subject twos and things of that nature and that's okay there you know there's there's a there's a market for that it's a really really really tiny market but there's a market for that and people are doing that and they're over here buying apartment complexes and doing this and doing that but what's funny about all of this stuff that they're doing is they're doing it on the retail level okay they're doing it on the retail level or when they call they take off market because it is that they say off market they get a better deal and maybe sometimes they do but sometimes they don't I don't know all the numbers to each field but to them it's where is a less competitive if it's an off-market deal then there's no competition and or little competition about that deal and I would have a tendency to agree with that statement but for you being off-market deals and let's really do off-market deals lets go directly to the source and let's deal directly with the source that has the product and let's level up our game so that we can deal directly with the source now here's the funny part about it it doesn't really require a much leveling up to deal directly with the source because all the bank cares about is if you want to buy products from them that you do your due diligence you give them a fair price and you buy the product that's it that's all they care about they don't have any loyalty to you or me or anybody else because they're an institution so they're just wanting to move what I would call distressed assets or toxic assets off their books things like re OS MPLS commercial residential first league second liens broken land developments land any of those things that are I say weighing them down in their financial structure they want to get those off the books they want to get those off the balance sheets especially when it comes to quarterly reporting time they want to make sure that they're moving the needle all the time for their quarterly reports that they have to file with the federal government they technically the federal government and the FDIC and that's a requirement for being in the banking industry it just is so they want to make sure that they're constantly moving that needle and they understand that being in the banking industry that there's always going to be a percentage of borrowers that will ultimately default no matter how good their underwriting is no matter how good the borrower is when they originally started the womb bad things happen to good people all the time and sometimes that's divorced sometimes that a family member is lost sometimes that's job loss career loss medical challenges whatever it may be bad things happen to good people all the time in that unfortunately changes their circumstances and though sometimes those circumstances or so I say deeply change that they have to let go of things that they purchased bike houses and cars and things like that that being said the banks know that but it's a but it's a percentage of their risk and when that happens they want to get that asset out their books as quickly as possible they want to solve it as quickly as possible with it's a loan mod short sale foreclosure or if it's not worth the foreclosure then they'll hold as an MPL in there I say portfolio until somebody comes along and buys it now here's the funniest part about this is the more people I talk to the more I realized that people are intimidated to talk to banks they're scared to death and I can't figure out why they're so afraid of talking to a bank every banker I've ever talked to no matter what level of status they have in the banking organization they've always been incredibly friendly and they've always been very helpful because I'm coming to them to solve their problem okay I'm coming to them to solve their problem and they want the problem solved because they have to answer the shareholders they have to answer to the powers to be just because there's a CEO or CFO and he or she might be the captain of the ship that doesn't mean they own the ship if that makes sense so they have to report to that ownership party or the multitude of them on a regular basis and they have to report the good part of what's going on and then they have to report you know what's not so good and then they have to have answers to what's not so good because that's what the ownership wants when you're an investor in the world of investing you know that there are going to be challenges and problems and things of that nature but the question is how do you solve it do you have a captain of the ship that knows how to solve the problems problems meaning there's always more than one and can they do it efficiently effectively and rapidly and that's why people are hired to do those jobs so that being said I want to share with you guys what I've been doing I've been doing this for a long time but I don't really talk about it too much on any one level I think the last time I talked about this was actually last year about this time but that doesn't mean I stopped doing it and I just kept doing it quietly behind the scenes which is pretty much my mo if you don't hear a lot from me that's because there's a lot going on behind the scenes and we're busy doing a lot of other things but let me share something with you guys here see that I'll make sure you see that good so I built this software several years ago and we update this this I update this software every 90 days because I want the latest and greatest information that's coming out of the banking institutions and I tap directly into the FDIC which is public domain and I can go in there and I can pull data points off of every single banks report quarterly reports and there's particular data points that I had programmed into the software and what it is that I'm looking for out of every single report now mind you these reports that are filed by the banking institution they're quarterly reports depending upon the bank and the size of the bank they could be you know hundreds and hundreds and hundreds of pages long and I don't want hundreds I don't want to dig through hundreds of pages to find what it is I'm looking for I just want to know what I'm looking for and and have the software do it so I had the software built a Bank Direct Connect we got it updated here recently two 2.0 version and what Bank Direct Connect does is it allows me up here to go in and let me show you kind of an academy shape so on the front cover of it we've got every single Bank or every single state all 50 states the number of banks that are in various stages of distress meaning they've got product the amount of are in the amount that they have in our EOS the amount that they have in NP ends and I believe there's total 5500 banks total in total about you yeah 5569 is the number of banks here now there's a total of 7800 banks in the country I'm a kind of branches I'm talking banking organization so every quarter there's 7800 reports that come in to the FDIC and the question is who wants to go through 7800 reports every 90 days to find product that they can buy directly from the bank well not me and I don't know about anybody else but I haven't seen anybody raise their hands so that's why we've built this software that ultimately goes in behind the scenes every quarter and pulls particular data points now these are the data points that it pulls I can it goes to every state and you can see the states are listed here and then I can choose Bank asset size so I can go from none to none or I can go from five billion all the way up to three billion so I can I can do I can search in regional banks or I can pick me you know bigger banks I go to I actually bring up the maximum as well so I got minimums and maximums so I don't put anything in there and it just pulls everything in that area I can do re owes in land and construction I can do it in multifamily I can do one for residential and I can do an on-farm non-residential okay now those are the four data points that I'm looking for for REO when it comes to NP ends I'm looking for multifamily I'm sorry family one two for family construction multi-family residential firstly residential junior liens so those of you out there that like junior liens second liens sometimes third that would be this here you've got construction land land development residential revolving open-ended loans so like he locks things like that owner occupied non-farm non-residential other non-farm non-residential these are come in the area of things like we call it like commercial commercial properties when I sit you're talking like shopping center strip malls medical facilities churches you know things that you understand where I'm going with that so I can come in here and I can very easily say let's pick I'm gonna pick kind of a smaller state just California it takes a little it may take a moment but so I got Arizona and I just want to see let's see if there's any REO won or let's do so multifamily now each report is a customized report so I can't pull like one two three all the Oreos in Arizona but I can go in and do a multi-family in Arizona okay if that makes sense so let's say Arizona REO multifamily let's see what happens no banks match okay that's a good thing let me say it mean it's a good thing means that we don't have those types of assets sitting around now let's say one to four units see what happens there so we've got two banks we've got the Commerce Bank of Arizona that and we've got Western Alliance Bank of Phoenix now I would have never thought about these two banks having any kind of product so when I I don't they're not a common bank I live in Arizona they're not a common bank unless you subscribe to them I've heard of Western alliance I've never heard a Commerce Bank of Arizona obviously because it's a Tucson and I'm here in Phoenix but ones in Tucson ones in Phoenix and the Western alliance bank it's got a million what Commerce Bank looks like they've got a small amount looks like about four thousand in Oreos so not a big number their total assets you can see their bank is not very big as a whole either but I can very easily come here okay they've got a they got 1.3 million I can click on this ID number which pulls up their primary phone number to the head of the bank pretty cool right who else like those of you out there listening tell me a state and what you want to find out and I'll pull it up and see if it's there so all you guys watching let me go and pull another one so I come here let's do residential first liens NP ends in Arizona everybody always wants NP ends in Arizona here we go so residential firstly NP ins for AZ we've got one two three four five six seven eight banks we've got Mojave Commerce Bank Arizona again Tucson Western alliance now now look here so the Commerce Bank of Arizona in it REO s they had look like about four thousand it wasn't a big number here they got three hundred and four million in NP ins okay totally non accrual status and they've got a hundred and thirty million in one hundred thirty thousand in 30-day lakes this is actually three hundred four thousand sorry about that so you can see they don't really have a lot but they said it's a smaller bank but here's the cool thing about smaller banks if you're a person living down in Tucson and you want to buy some NP ends in the Tucson marketplace smaller banks are great banks so you don't deal with why because you don't have the big building facade you don't have the big building monster that is staring you in the face that can oftentimes be intimidated what you have in the smaller banks the community banks are down to earth people who are running two to three branches maybe five or six branches and they're they're business people they're entrepreneurs but growing banks they're growing their business overall and they need to move product on a regular basis okay so you are I'd reach out to them like hey I like to take a look at your NPS I guarantee you there's probably not an investor out there that's ever reached out to this Bank say given the Indians I can borrow buy from you and if so connecting look at them and if so what's your pricing expectation what do you need out of these and then you take those numbers and you run it through one of our softwares and you it tells you what you would pay for something like that so that's how you navigate through that and buying deals directly from the bank then you got to have the money to buy these deals and whether that's in a you're pulling money from an IRA partner or a private lender partner or a hard money lender partner whatever it may be you've got to have the money to buy these things which is not that hard to find either but first and foremost this is where all the fish are this is where all the nuggets are at go on here Goldwater Bank they've got seven hundred and eighty thousand Arizona bacon tres they got one we got a million one basically Western Alliance Bank they got eight million dollars okay eight million dollars in NPL in the Phoenix marketplace okay so this is how you find deals in your area this is how you start relationships in your area think about it if somebody went out there and I'm just telling you I haven't contacted any of these banks I know Goldwater I know Pinnacle I know Arizona banking trust Western alliance I still didn't knew that I've never heard of horizon never heard of Commerce never hope for the Mojave but they're all they're all so outside of my normal stomping ground but there are still valid deals if you go in there you create relationships with just these six seven banks here on a regular basis do you think they're gonna keep sending you products as product comes up do you think they're gonna let it sit on the books as long as they do they're not gonna let us sit on the books because you become a proven buyer you become proven relationship that they're going to want to cultivate okay let me go back here and there you guys got a couple questions let's pull some stuff up Dan and New Jersey let's start at the top and worker lay down then what are you looking for I'm assuming you want to find just pulled New Jersey everything there sorr
yeah 77 banks in New Jersey so the bigger the list it takes a little bit more time just kind of FYI so here's all the banks in New Jersey that have product this top bank or or Tommy Bank they've got 1 million one point five million in REO s they've got 13 million in NPS Amboy has got 32 million in re o--'s and they got 44 million in NPS investors bank they've got 5 million 541 in Oreos and they've got 169 million in Indians so you can see the corner pole just because the gurus aren't running around talking about the NP ends and our Oreos and stuff like that doesn't mean that they've dried up it doesn't mean that they went away the problem is still there it just doesn't have the height to it that's a great thing for you and me now the hypes gone away weren't the competition go they went off to the next shiny object and they went off chasing the next shiny object I'm like stop chasing the shiny object and focus in on the business of what it really takes to build these relationships and then they'll constantly feed you deals on a regular basis you see my point see Indiana see Indiana can we are India's got a hundred and six banks that's a lot of banks with product so People's Bank in Indiana 226,000 2.3 million and NPS like look at this Bank here the Edo filled Bank State Bank so if you're calling a bank and they don't have anything and this is oftentimes what happens with people as though tall banks randomly and one of two things is happening okay there is a calling a bank that doesn't have in the REO like this one here ever filled bank or they're doing it incorrectly and when I say incorrectly most people want to call a bank they want to start from the bottom and go up don't ever start from the bottom and go up hey there's all these courses and trainings out there saying we're gonna teach you how to get past the gatekeeper I can show you how to get past the gatekeeper it's really simple start from the top and go down that's how you get past any gatekeeper in any company in any corporation nationwide I don't care what grant Cordova says I don't care what Tony Robbins says I don't care what anybody else says I've been doing it for 22 you have been doing it for 30 years in every one of our businesses if I want to do business with the company I start from the top and go down why because the guys and the gals at the top know exactly who I need to talk to to get the answers that I'm looking for so if I call the CEO or the president of the bank or the CFO of the bank whatever title is captaining that ship I'm talking to him or her and although I know they're not they they are a decision maker they're not the one in charge of the daily activity of getting rid of the product one know who is Bob is over in this department Sally is over here in this department and the bank should become really clever about saying hey you know what we're not going to list our assets online we're not going to have a asset manager we're not going to have this type of you know a collections or an REO we're not going to do those things we're gonna take all those numbers and emails off of our websites and we're going to remove them because we're tired of being inundated with calls of tire kickers and time wasters so they've removed all that stuff so people are like who do I call well it's not ghostbusters you call the CEO the CFO because they're the ones that know that they are the ones who know the players on their team so if I call them you know John the CEO of People's Bank and say hey John this is Troy forward with Pinnacle investments I noticed that you've got some Mario's in your inventory I'd like to talk to you about buying notes try to thank you so much for calling our office but that's not mine that's not my role here in the bank I know it's not your role job but I know that you know the person I need to talk to who would I need to talk to hold on let me patch you through let me give you their email address in case it doesn't come through let me hook you up with that part why does he want that to happen because he's hired people to take care of that responsibility they report to him he doesn't report to them see how the chain of command works so he'll point me in that direction to help that person on his team liquidate toxic assets so it cleans up their balance sheet no mystery just logic just logic I've been doing it that way for years people will say well Troy how did you get into Goldman Sachs I contacted the chairman of Goldman Sachs how'd you get into Morgan Stanley I contacted the guys at the top guys at Morgan Stanley that's what I did and I do that with the New York Stock Exchange I do that with every single institution that I play ball well this is just another version of it so back to back to the point sorry about that sidetrack but I thought came to mind so this is what's going on in Indiana kind of interesting they yep the people's bank and then they got people's trust in Savings Bank okay but you can see there's quite a bit of product here throughout the Indiana marketplace which is pretty cool just keeps going and going and going and going and going see here that one was answered done I was done Virginia non-performing seconds all right let's uber jigna performing seconds over here a little more customized report you Oh Virginia non-performing second sorry you you all right residential junior liens in PN's for Virginia oh how many banks are here 41 banks 39 makes looks like they got here they got about 10,000 here and pound Napa Valley National Bank but it's a smaller Bank total assets 277 million fifty-six thousand here Virginia Commonwealth that's in the 30-day lay 19,000 and the 90 day late and three hundred seventy thousand and they non-accrual stats see here this big national cooperative bank arlington virginia two point three billion dollars in size they got one hundred and thirty three thousand dollars and non-accrual junior liens here's the cool thing about this all of these deals all of these numbers I would consider to be small in nature are great bite size investments for investors and these are like you don't think you get that little tiny like you get a thorny like you know you get a cactus thicker you get a splinter in your finger and it says tiny tiny tiny tiny little piece of wood in your finger underneath your fingernail or wherever it may be but it's just constantly like poking at you and it's it's bugging you and it's irritating you and the only way you can get rid of that irritation is to pull it out so you go like stop what you're doing get yourself some tweezers maybe a needle and you know do that whole thing now I know that might be a little grotesque from saying in the morning on Saturday morning but you get my point the same thing is true with these seconds these are not like gonna bring a bank down trust me they're not gonna bring a bank down but keep in mind the goal of the banker is to have a perfectly balanced balance sheet medium when they file their stuff with the FDIC or they're talking to their high say shareholder that they're saying hey we don't have any of that that problem solved that problem solved that problem solved that problem solved and that's what shareholders want to see because that increases the value of the company and it allows the bank to focus in on what they want to do in the first place which is what lend money that's their role the REO Department the NPN Department the short sale department loan modification Department those are all like problem departments those are all problem departments so anytime they have to keep those problem departments operating at full capacity and have people managing these problems all the time when they could be used for other I say responsibilities in the bank that is taking away from collectively achieving the goal at hand which is to land on assets lend out money things like that okay great one here done I'm in flooring search per County know you can search Florida if you know what banks are in one counties you can do that too great question though see North Carolina great questions by the way guys great questions North Carolina you see what was the question again I'll try North Carolina okay I'll just pull up here 50 banks in North Carolina have product is your 50 banks in North Carolina oh by the way for the person that just asked the question about counties this is one way you can kind of search counties meaning you can see like the bank City location so if you know like in a particular County like like say like we're in Maricopa County so what banks would be in Maricopa County well banks that are in Phoenix Tempe Mesa Chandler tallest and Goodyear Scottsdale Cave Creek so any of those city locations as long as you know the cities that are in that county that you're looking for then you can search that way that makes sense so that's another way of twisting it or looking at it from that perspective but this is all North Carolina what we got here first Federal Savings Bank of linking Lincoln ton 3.7 million in NPS first Savings and Loan Association of Mel Bain and they've got three hundred forty-one thousand in REO and $1,000,000 a little bit over about 1.1 million in NPS home Trust Bank in Ashe Asheville 2.8 million in REO and 13 million in NPS so here's what I'm saying so are you seeing are you seeing the magnitude of this nobody's doing this okay nobody's doing this nobody's going directly to these banks and these banks are sitting there kind like a bump on a log is don't really know what to do with this stuff so they've kind of you know kind of for whatever the whatever you want to call it put a band-aid over the situation they have these assets sitting in inventory and they're not really even technically assets they're distressed assets sitting in inventory and nobody's calling them nobody's reaching out to him nobody's even introducing themselves to them as a possibility to maybe buy some stuff from them now I don't know the quality of every single asset that they have or every single toxic asset that they have in these numbers but I do know this if I don't reach out to them there's no chance in the world I'm gonna get a deal but if I do reach out to them I can at least look at their inventory and find out what they have and see if any of it fits my buying matrix now the great thing about that is once you open that door to that relationship they're gonna keep reaching out to you as more and more product comes in more and more product comes in why because that's what professional people do yesterday yesterday afternoon I got a text from my guys at Morgan Stanley asked me hey Troy how's it going can we do some more business out of the blue text on my cell phone directly from their cell phone that's because I set up the relationship no we haven't done anything in 2019 yet but I don't know 2019 is just getting started as a whole all right great one there bill see here never called banks for properties this is interesting yeah good one angel thank you Alabama alright let's do a couple more like a jump back in here reason I keep going off on tangents is I've trying to stick to my plan here today here's Alabama so you jump in here got a hundred and plus so here's Alabama man that's a lot of stuff Wow with a lot of banks to that's a hundred 121 minus two so 119 banks and lifted the amount of product these guys regions bank alone reasoning here's a big player 617 million and NPS 73 million in our EOS now I'm sure you can find a few deals in there I'm sure you can tanning country national bank 117,000 Dario's 1.2 million in NP uns so people say the you know I review all the NPN markets dried up the NPN markets done this the NPN market it hasn't done any of that stuff it's just not mainstream media anymore why because they're too busy talking about the wall and green energy projects and stupid stuff like that at the end of the day this is this is all this is like second nature this doesn't sell papers anymore so they're not going to talk about it anymore and the Guru's are going to talk about it because the Guru's don't know how to talk to the bank's why because they've never dealt with the banks so at the end of the day they run out of things to talk about so they they don't have a course or training to sell you anymore so they're gonna go do something else which is good for you can I even save your money at the end of the day but this is what we've been doing for 22 years I learned early on in this business about how I learned early on because I had nine different companies and our family as a kid and everybody that ran companies did it the same way I do mine and that's every time we start new relationships we start from the top down we never start from the bottom up why because my grandfather owned two different banks and the banks that he owned I learned by being around them and the people that he was around that they never started from the bottom up when they wanted to deal with somebody in a banking institution they reached out directly to that person which was always the top person in charge because they their time was valuable the bank's time was valuable and out of respect for both parties they wanted to get answers and they wanted to get them quickly and efficiently and effectively and they knew that every single bank out there is driven by different people with different personalities with different goals and different objectives so there's not a one-size-fits-all for the banking community no matter the fact that it says Bank on the outside of the building that's irrelevant that team of people that culture in that Bank that tribe that management but every terminology you want to use for it they all function differently so but they all function in a I say a personality factor they all function differently but their structure is still the same and still a pyramid top lead guy on top management underneath them middle management low man and totem pole you get the picture right we've seen it for our entire lives so why not just go to the top and talk with that person at the top and let them tell you who in their organization you need to talk to to in turn get an answer on 617 million dollars worth of NPLs from Regions Bank who in that organization they need to talk to I go over here I click on this I go oh cool there's your phone number let me call in a way I go so that's the model that's the model that works anybody that successful in business understands that model hands down they understand it but you know and it's funny because what I hear people talk about well you know here's how you get through the gatekeeper here here's how you get through the gatekeeper you go around the gatekeeper that's how you get through the gatekeeper you go around them and anybody successful in business knows that but gurus want to teach you how to get through the gatekeeper you don't know why they want to teach you that because it sounds important and because everybody keeps running into the gatekeeper well then just go around the gatekeeper just go to the top and work your way down because when you they when a person gets marching orders from the boss man or lady and says this message came from John John says Bob you helped Troy give them our portfolio let's work a deal guess what Bob's gonna do exactly what John just told them to do right we've all worked for companies we've seen that happen time and time and time and time and time and time and time again all right cool all right so many pages open here all right Don Alabama what do you need it what do you need to expect after contact and tape how much do you need to buy that's a personal decision on behalf of the Bank Bank I'll let you cherry pick shirt do they pitch their junk first they don't pitch anything okay here's the thing banks don't work the way that real estate investors work real estate investors have been taught the wrong way to deal with banks and institutions and banks don't work that way banks never have worked that way which is why you've got this thing going on all the time with banks you understand it's like it's like real estate investors show up to the baseball game with a soccer ball and the banks are showing up with the baseball and bats and they can't figure out why they can't play together and they can't play nice
y together that's because they're not playing the same game so if you want to deal with banks and you want to deal with the institutions and you want to get product directly from them at bargain prices and discounted prices and help them clear off their distressed asset portfolio then you have to play their game and you show up to the baseball game with what a baseball bat loved and you move on that's how you play the game but it's funny because investors like no banks you do it our way and I'm like that'll work that doesn't work never has never will don't do that you're wasting your time and they're like that bank those guys are jerks they wouldn't sell anything no they were willing to show you stuff you're just speaking a different language altogether so at the end of the day when I'm dealing with things yes you can they're gonna give you whatever their portfolio is or if you go in there and specifically ask for an area or zip code they they'll give you that they'll let you cherry-pick they'll tell you what their pricing expectation is and then you can back it into the deal and see if that works for you you can make offers hey bank I know you wanted a hundred thousand for this asset a few hundred but pay you 75 would you take it yes or no and they'll either take it or they won't don't go to committee now look it over they'll tell you yes or no or they'll counter they'll offer another counter back and go forward and you negotiate from there but that's how it works what happens oftentimes is the real-estate investor mindset is I'm gonna I'm gonna screw the bank because the bank's screwed me and by god I'm gonna get this smoking deal out of them and I'm gonna do this and I'm gonna do that and the banks are like okay well you don't want to do business that way and so they don't they don't engage that way but they will engage if you're looking at their products and you're saying okay and I've looked at bank stuff and I've said you know nothing here excites me so I'm not interested in this I can't meet your pricing expectations I'm gonna pass him this one let me know if you have other stuff down the road and they'll call me up down the road that text that I got yesterday from Morgan the last time I talked to Morgan was in was in December and the last time we did a deal was last sub les summer here it is what six seven months later and we're still talking we're still talking we're still engaged in a relationship we're still have an open-ended relationship why because we bought some stuff we passed on some stuff some of their stuff was overpriced some of the stuff was priced right and we developed the relationship the relationship is not with banks is not built on deals that's just the end result the relationship with banks is built on relationships humans you and me talking to a bank or to another person we're connecting with that person we're finding out what their Y is we're finding out what their goal is and we're helping them accomplish their goal why do we do that because we help them accomplish their goal than we accomplish our goal at the end of the day and if you go into it with that spirit you'll be massively successful massively successful let me show you what I mean by that buh buh you so here's a tape that I got from a bank all re OS you and I'm not an REO guy I'm I'm not I have no interest in fixing flipping and doing all those other things and yada yada yada I think all right cool I'll take it and so he took this tape and said all right calling a few friends and yesterday you see this tape here see this is yeah february of last month so then yesterday I sent him this tape about a week ago and said great Troy day three one of not when we make sure we got this up here Shareen yeah three one of 19 letter in ten-second additional submit meant list of Oreos February of nineteen and you're down here and here's all the properties that they're buying here's the cool thing about this is I'm gonna seller finance all of these properties to these guys I'm gonna buy them all I'm gonna turn around give me cash down a purchase price 1.2 million cash down two hundred two thousand dollars I'm selling them to them at nine percent interest only for 60 months not bad so I put my money to work and when and I bought these this by the way I picked up this entire all of these assets on this particular tape picked them up for 40 cents on the dollar and then I turn out of sold them for 58 cents on the dollar so 18 percent now I put my money to work at nine percent interest rate interest only and on 60 months picked up a little down payment money there and the way I went now I picked them up at this not bad right these are all little low balance deals these are you know deals that are you know $5,000 for a house $80,000 it's a nice one thirty six thousand twelve thousand okay pick them up all day long now the banks aren't overly excited about these deals why because they're they're low balance feels their houses they can't really make a lot of money on their houses they can't really you know there's no money in the deal for them so they want to ultimately they want to ultimately get rid of those off their balance sheets because they're typically in I say crime-ridden zones less than ideal areas there they can't make any money on it even they listen with a realtor the realtor sells them and all of these other things they know that they know all of that they're not ignorant to those things so when you go in there and okay if I can clear your balance sheet with all these assets would you be able to it yeah sure sounds good so we negotiated the deal and we base it off of the as is value of the property nothing after repaired value of the property the as is value of the property those are the values they gave us okay great we'll work off of these we'll start here and we'll go forward and I turn around picked him up 440 of that around sold 458 I made 18 percent spread on the deal for ten days ten to two weeks worth of work on the deal and then I sell it finance the rest to these guys so not a bad deal not a bad deal put a bunch of money to work these houses are gonna get all fixed up they're all gonna get repaired they're gonna get off the banks balance sheets I'm gonna put my money to work you get a good return on my money I'm gonna let the guys on the streets the guys and gals only one guy actually buying the whole thing he's gonna fix him my lab he's gonna use them all for rental properties or he's gonna sell them off so it'd be kind of a combination of both going on and it's gonna be a good thing so these are the kinds of things that were singing and and over and over and over again behind the scenes and it all starts with the bank Direct Connect software at the end of the day and let me see you I think I answer this question once you find a bank - you get the contact and eye contact directly the guy or the gal above you that's that's what I contact I start like I said I start from the top down okay I don't look for an asset manager I look for an REO Department I don't look for their legal department I don't look for any of those things and here's why see that's what the Guru's say to do that's right nobody just succeeds like I can't find the asset manager I can't find the audio department I can't find the distressed asset department that's because they don't exist okay they don't exist they they do not exist under those titles okay and that's not public information anybody handling the REO is not on their corporate website why because they don't want to be inundated with calls from people they want that person or that team to be moving those those Oreos off of their balance sheets all the time and so they typically will reach out to realtor's to do those things because that's a proven model at the end of the day but there are a lot of deals that the real owners don't want to take on that are lower balance deals like 30 40 50 60 80 100 thousand dollar deals because there's no money in it for there's no money in it for so at the end of the day they just like yeah thanks for no thanks and so they just sit there and these houses decay over time because oftentimes nobody's living in them and their vacant homes and so therefore they've got that challenge as well keep in mind that these houses that are Ari o--'s and things like that the bank has to keep up the taxes on these houses too they have to address all the notices city notices that come in to them meaning the yards not mowed there's trash in the yard there's this there's that they the house has to be boarded up there's all of these things that now the bank has to deal with but they don't want to deal with because those are those are lost those are money losing activities and that's not what they're that's not the business there so because of the fallout from the downturn on the cycle they've had this they've had to contend with these things which are outside of what they really want to do as a business but keep in mind these things are still sitting there and they'll continue to sit there and for a very long period of time because until somebody comes along buys the house fixes up the house gets it back to a high say a staple of the community or a cleaned up property that is paying taxes and waters running electricity is running and things like that people are living in it it's constant ISIL when people run away from banks because they and they reason they run away from them because they've been taught the wrong things about banks they've been taught you know try it here's how you get through the gatekeeper okay let me tell you how you get through the gatekeeper you go around the gatekeeper you start from the top and work your way down there has never been one single time that I've ever reached out to a CEO CFO CEO of any Bank of any organization I said you know what Roy I don't want you calling me don't ever call us again it's like oh who are you who are you with yeah okay great yeah we have some NPLs what are you looking for what we're looking for this this and this okay great hold on let me commit let me put Sally on the phone with you let me give you Sally's number directly I'm gonna transfer the call she's busy leave her a voicemail I will also send her an email by the way here's her email why did they do that because they want Sally to sell those toxic assets they want her to do that that's her job but her job is not an official title on a bank website it's not an office with a with a title on the door with an arrow pointing here here here that's not what they want why because they want Sally to move the assets in a very quiet manner they don't want to draw attention to them they're at reputational risk so that being said they don't want a flood of people coming through the door and bothering Sally they want Sally just to get rid of the product and you come along and you've got an answer to their problem they welcome that with open arms they welcome that time and time and time and time to kind of get okay because here's the thing they're tired of having that conversation about why these assets are still there okay there have they're tired of having those conversations of why those Oreos are still there why those NPLs are still there and they have to keep answering those questions every single quarter to the shareholders to their team to their management team sally has to keep answering the job and so on and so on there they're tired of having the conversation like a broken record doesn't keep in mind this has been going on for over a decade now and the conversation is still there and until they get them off their books completely the conversation is not going to go away it's not going to go away angel is there a special program to get these numbers in contacts and info about the banks as a little late sorry yeah it's built into the software angel maybe I go back and revisit it as a whole one of these you can do is just to ask for here is its short bank IDs here's all the phone numbers to every bank out there alright alright so well way up in here you you alright ladies and gentlemen so I want to wrap this up a little bit right that right at the end of here trying to do this in 30 minutes but actually went to 60 so apologize for that but hey here's what you need if you guys want to copy this software and all the training that goes with it on how to use it how to make the contacts emails that we send all of those things that go into how we consistently tap into the banking community for deals you go to Bank Direct Connect comm and grab yourself a copy of it now here's the beauty of it but not only do I have this for the banks I also have the same version for the credit unions okay same version for the credit unions which is really cool because now not only do you have the banking community you can reach out to but you've got the credit unions that you can reach out to and anybody who takes us up on the offer of investing in a their own copy of Bank Connect also gets the credit union version as well so you double the value there the comes with five training modules walks you through how to use the software how the software works as a whole how to reach out to the bank's the emails that I send to banks when I'm following up the conversations I actually have scripts in how we work directly with the banks and what we say to the ceos and cfos how I find other people within the bank the searches that I do to make sure that I'm talking to the right person in the right location in the right area and how I go about doing that the beautiful thing about this is that the investment is a one-time investment and it's a lifetime license to the software we here in you you don't have to worry about updating the software because it's something that we do in our office so at the end of every quarter the banks start filing their reports it takes about 30 to 45 days for all of the banks to get in their reports and then we update the software so that being said the software is all currently updated and when the next quarter finishes 45 days after it will update all the software again so you're constantly getting new debt you're constantly getting new deals new opportunity because the banks are selling then there's more REO coming into inventory there's more NPL coming into inventory and then there's value going back and forth as you can see some of these banks have a lot some of these things have a little bit here's the Golden Nugget on this whole thing guess what Wall Street doesn't want to do Wall Street doesn't care about these little tiny banks Wall Street doesn't care about these little tiny deals okay they're not big enough opportunities for Wall Street to care okay so the banks are in this crazy predicament like okay well Wall Street doesn't want our stuff because we only have 1.5 million dollars worth of MPLS so Wall Street doesn't want that's too small of a deal form and we're sitting here with this inventory the real estate investors and the world are not calling us because one we made ourselves unaccessible to them because we don't have general information REO department distressed asset department things like that because that's not public information on their website and they want it that way okay they want it that way and therefore they're sitting there relying on realtor's to sell their Oreos and a lot of the Realtors don't want to do with this stuff because selling up $50,000 home they make what $3,000 then they offense to Realtors in it they each make 1,500 bucks not overly motivated to make 1,500 bucks and spend 90 days or 120 days selling at all so they're sitting there like a bump on a law with this inventory and nobody's reaching out to them because they don't know how to get to them okay the banks have been doing this pushing everybody away because they were inundated with goofiness and they get this you Venus away that's not who we are because people kept trying to come through gatekeepers so the gatekeepers kept got really good at kicking people back into play okay don't go through the gatekeeper start at the top and work your way down I already share that with you I already gave you that nugget so the cool thing about this is that nobody's tapping into this market why because it's not big enough for Wall Street
nd Main Street doesn't know how to do it but the software shows you exactly where to go fishing which ponds have fish in them which banks have deals possibility of deals whether it's Oreos or MPLS whether it's first lien or second liens whether it's residential or commercial it doesn't really matter it doesn't really matter because the software breaks all that down on a per search basis by simply using the search report button that's it the build report button is what we use to update the entire software once a quarter so you don't even tap into that they do your simple search report and go ahead and grab your copy so go to WWII connect comm you'll see the sign up page grab yourself a copy you're supposed to shut this down the other day but we had a lot of people with a lot of great questions and so I said well let's just go ahead and do a quick webinar show some people some more things one that we're doing how the software works a little bit more in detail answer some questions which hopefully I believe you got to all the questions we're all pretty questions yeah we got to all the questions one last question you're by purchased in multiple states to flip in rehab just curious yes that's exactly what they did know so even though I'm finding stuff in these banks are because of developed relationship don't mind you we're not only in contact with about 5055 banks okay there's fifty five hundred banks so if you're sitting there going well you know Troy's got the inside track and he's got all this I don't mind you our company is my wife and I okay we've got VA s that you know third party supporting it's just my wife and I I don't have time to call fifty five hundred banks I just don't I don't know anybody who does that would be a huge undertaking that would require a team of people so the cool thing about it is I've kind of developed over the years relationships with about fifty fifty to fifty three banks that I constantly maintain relationships with who constantly send me stuff but they send me stuff that I don't even buy because we have relationships and when that stuff comes across my desk and I know an exit strategy for it I'll buy it sell it we're all buying the whole salad whatever you want to call it because I don't want to do fix and flip rehabs in Kentucky or Ohio or anything like that not because I don't like those states never into Kentucky but I don't it's not that I don't like those states it's because there are fifteen hundred miles away from where I live in managing those projects would be more than I want to do so I'll find somebody in that area that'll buy them and I'll make a sweet deal with them see the thing about it is I'm not trying to squeeze every last nickel out of that deal I don't really care about every last nickel if I can make a deal for myself and I you make a deal with the bank and I can leave some meat on the bone for the next person to do and work their magic and build up their portfolio and that's a good deal for me I let them make their money I made my money the bank makes their money everybody's really really happy so that's exactly what I did on that particular deal and that just actually came in yesterday so here's the simplistic you know go to banker at connect com WWWE at connect calm or watching the replay on this and it's on the website the buttons down below you'll see the five trainings that you get with it yet the bank software and you get the credit union software as well which I didn't have a chance to demo but it's just as robust as the banking software and you can tap into the credit union to your local area or if you want to go outside of that area if you've got a partnership and you know hi oh you're in Phoenix you can work on those ohio banks in that partnership and so lifetime access one-time fee a one-time investment you want to call it and that's a pretty short sweet to the point so I like it that way that means said I hope you guys enjoy today's webinar and breakfast coffee with Troy I hope you guys had a great time and loved the questions thank you so much they're all amazing questions and go grab your copy Bank Direct Connect com or if you're watching the replay it's the button below this video and grab it's a one-time investment for a lifetime access to a lifetime of deals and I don't know how much more I can put it on a silver platter for you and actually like literally give it to you without physically going and doing the deal and giving you all the profit that would be the next thing I would do and my wife would never let me do that she punched me in the face they're doing something like actually she would do that but she would not be happy with me doing that so I'm gonna lead you guys to water I'm gonna get you all the way there and give me you know what the banks have I've given you the banks in the area of the state's locations the phone number is the contact information how to reach out to them kinda the scripts and how they work and now it's just matter reaching out and find out what they have and does that meet your matrix and if it doesn't that's okay keep building on that relationship with that Bank because they're going to continue to have more why because their lenders they lend money what happens with lenders people don't a default why because they go through different phases of life in most things so if you're over here and they have that relationship and that deal goes south if you provide them an exit strategy in a timely fashion they're gonna give you first right or refuse a lot I've seen it happen time and time and time again what most people do is they go you know what I call that Bank didn't have anything that I wanted so that for them I'm never - I'm even gonna send them a Christmas card no that's not how it works keep the relationship a lot keep the relationship open because here's the other secret to that when you do that and you're working with banks and you're developing those relationships with those people those had people in charge guess what bankers do they hang out with other bankers hey they hang out with other bankers just like doctors hang out with doctors lawyers hang out with lawyers you know bankers hang out with bankers so you may be diving one banker and you developing this relationship they don't have anything right that second I mean they don't have anything that quarter or maybe they don't have anything I could that first two quarters of the year but they got a friend over here then at another bank that has a problem and you'll get referred from this Bank over to this back and I will said boom because you spent the time developing this relationship you got this relationship too and we've all done it we all do that all the time we get a relationship going with our with our lawn guy and he's doing a great job I was over down the street down into her neighbor and her neighbors over there you know griping about mowing his yard like hey job call my guy you know call my maintenance guy here's his number I almost had my maintenance guy because he did a good job with me it's now doing my neighbor's yard too we see it all the time thanks for the same way thankfully we think there is like some mystery that they do it differently they don't do it differently they do it the same way all they're human beings they're human beings just like you and me so but a bang Direct Connect comm got your copy or if you listen to the replay it's the button right below yeah so that's where rap guys have a great day have a great week take care god bless bye now you you you
