Show Summary

If you’re not currently investing in Notes, it’s a huge and fascinating opportunity. There are many pros and cons to traditional real estate investing, but perhaps, the pros outweigh the cons. Scott Carson, the “Note Guy”, joins us on this episode of the FlipNerd.com Expert Interview show to tell us more about notes, including how to get started. Don’t miss this one!

Highlights of this show

  • Meet Scott Carson, the “Note Guy”, President of WeCloseNotes.com.
  • Learn more about the note investing industry, how the opportunities are created, and why you should be interested.
  • Join the conversation on the differences between note investing and traditional real estate investing (physical assets).

Resources and Links from this show:

Listen to the Audio Version of this Episode

FlipNerd Show Transcript:

Mike: Hey, it’s Mike Hambright from FlipNerd.com. Welcome back for another exciting expert interview. We’re interviewing successful real estate investing experts and entrepreneurs in our industry to help you learn and grow.
Today I’m joined by Scott Carson aka The Note Guy. Scott is the president of weclosenotes.com, a defaulted note buying company. In addition to buying notes for his own portfolio Scott teaches others how to get started in note buying. For those of you that aren’t involved, like myself I’ve bought hundreds of houses but never bought a single note.
The note world is very fascinating. There’s a lot of opportunity there that a lot of people just aren’t quite aware that it exists yet or think it’s a little complicated so they stay away. While it’s different, there are a lot of advantages over actually buying physical houses or properties.
Today we’re going to talk just about that exactly. How to get started in note buying with Scott Carson the Note Guy. Before we get started always take a moment to recognize official sponsors. Ad: Realtymogul.com is an online marketplace for real estate investing, connecting borrowers and capital from accredited institutional investors. Get a rehab loan fast and close in as little as 10 days with rates starting as low as 9%. For more information call 888-296-1697. B2R Finance makes loans tailored specifically for rental investors. They can help you unlock equity from existing property so you can get cash to grow your rental portfolio. That’s huge and it opens up lots of opportunities previously not available to rental investors. Need a loan? Call 855-819-4412 or visit b2rfinance.com today. National Real Estate Insurance Group is the nation’s leading provider of insurance to the residential real estate investor market. From individual properties to large scale investors, National Real Estate Insurance Group is ready to serve you. We’d also like to thank Crestar Funding, Mid-Atlantic IRA, and Renters Warehouse. Please note the views and opinions expressed by individuals in this program do not necessarily reflect those of footflair.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions as real investing can be risky.
Mike: Hey Scott welcome to the show.
Scott: Hi Mike, glad to be here. Thanks for having me men.
Mike: Yeah, it’s interesting I feel like I’ve been out there in the real estate investing world for a numbers of years and it seems like note buying is becoming more and more popular so I’m excited to talk about it today. I know it’s been around forever but it seems like it’s just become more mainstream over the last couple of years. Scott: That’s so true. Note buying’s always been around. Banks have always bought and sold notes back and forth with each other
If you think back to the RTC days, back in the 80s note buying was big then because all these banks and savings and loans that went out of business. We’ve had that happen, replicate itself in 2008-2009 when everything hit the fan with all the new banks going out of business.
It’s reappeared in the mainstream aspect of it. What’s also helped, Mike, is the fact that a lot of investors are starting to go into buying looking for deals because the fact that you have REO markets getting bid up in a 90% range. The short sales are drying up, the banks are taking a bigger discount. Real investors don’t want to do fix and flips for the most part, they’d rather become the bank.
That’s what I love about note buying we become the bank, we come upstream from all the REO buyers. We’re seeing deals 6 to 12 months before your traditional investors are seeing stuff. Then we’re also giving a lot bigger discounts on the assets.
It’s a perfect storm plus the fact is entry level is changed so much. What we’re doing today buying one-off assets and a lot of investors buying these one-off deals, didn’t exist six years ago. It just didn’t. You used to have $5 to10 million to get in the ball game but now these days one of my students bought their first note for 2,500 bucks the other day. They’re rocking and rolling along. It’s a great time to become the bank is what I can say. Mike: That’s awesome. Before we dive in to talking more about notes, why don’t you tell us your background, how you got started in this space?
Scott: No problem. Graduated from college, Central Texas is home; Austin actually is home. Went to school here, graduated, became a financial advisor a little after college, was doing that kind stuff.
Then a buddy of mine opened a mortgage company with a couple of guys that were teaching owner-financed notes and travelling the country, teaching that on the circuit. I went in and started working with them on a mortgage side. I was a broker, I guess you could say, for a couple of years and then the boom hit with all the mortgages and the rate finance boom.
Really was doing well, we’re doing mortgages in 30-plus states and I was always interested listening the investors that was in the office next to about their creative deal structuring. They were doing a lot of owner finance wrap-around mortgages, create a mortgage, steal it off of the closing table and keep stuff cash, your down payment, make money on it. I love that aspect.
I’d also been doubling in real estate on the side doing okay but I was like a lot of other investors out there doing 20 different things at a time. A jack of all trades, a master of none, I guess you can say.
Then as everything started to change in 07, 08, 09, I saw the writing on the wall. I was like, “I need to quit doing the mortgage stuff.” Yes, we were still making decent money, but it wasn’t like what it used to be. I just saw an opportunity and I had an investor in mind that I was meeting with to finance a rehab. He started talking about how he picked up this portfolio of notes. I was like, “Really?”
The investor that I’d been working with, he talked a little about it in theory, but it was based off of him doing owner-financed notes. I was talking to my investor buddy, and he was finding a deal for me, he was going a little more depth.
I was like, “Whoa I can do that, and he was like, “Man, this is the best time to do it.” He goes, “This is exactly like it was 20 years ago.” I was like, “Okay.” Literally within the next three months, I stopped my mortgage, I left the mortgage company, stopped doing all the short sales and things they were doing on the side and focused purely on notes.
Literally just started dialing for dollars, like started calling banks and figuring my way out. Who I needed to talk to, what I needed to say and in the next three months I became direct to about five banks. Six months after that I was direct to 100 banks and it took off from there.
We got lucky that were able to buy some one-off notes to pay the bills, bring home some bacon and some things like that. It took a lot of work initially because we don’t have the social media aspect that we have today and so many other tools out there you need.
I wouldn’t change what I do for a minute at all. It’s become a lot easier now for new investors than it was six years ago. I love what I do. It’s a fun time, I don’t deal with a lot of the headaches or the toilets and tenants that a lot of people deal with. I’m not fighting the retails buyers for REOs, foreclosed homes. Half the time the banks literally call me with deals. They’re like, “Hey we’ve got a list of stuff that we’d like for you to take a look at see if you want to make an offer on.” That makes life pretty easy. Mike: Since this is a 101-type discussion, we’re going to talk about how to get started, maybe you could, lot of the stuff is intuitive so maybe a little elementary here but talk just about what is a note and how does it–a lot of times when banks originate notes, they’re just selling them off anyway. Just talk about how that process is and then how the opportunity creates itself for guys like you. Scott: Sure. If you’ve got a mortgage on your house it’s pretty normal. It’s underwritten; it’s based off your credit scores, the value of the house, your debt to income ratio. It’s written up and then a lot of times many of us who’ve bought traditionally, 30 days after we close on our purchase we get a letter in the mail saying that our mortgage’s been sold off to somebody else.
Now what’s happened with 08/09 with all the mortgage crash and markets across the country dropping, it left a lot of borrowers out there with zero motivation to pay their mortgage on time.
Either they were way upside down or they lost their job or they were in an ARM loan, adjustable rate mortgage where the payments now became unaffordable. They just stopped making payments and the banks were never in a position to they handle that many defaulted mortgages.
If you watch Too Big To Fail or some of these other margin call movies that are some of the popular ones out there, talk about it. Banks were only meant to have about an 8% default ratio. A lot of people like to blame it on the sub-prime markets and yes sub-prime kind of started this, but you had just as many A+ credit buyers or mortgage holders who went in default just like the sub-prime guys.
You had all these mortgages going under, the banks were in a place where we have all these banks failing and we had 368 banks fail in 2008/2009. It left a lot of these portfolios of mortgages that were worth Let me give you example. In traditional let’s say mortgage somewhere like in–I’ll give you an example bought and asset yesterday, in Chicago. Mortgage is 120,000, that’s what it was owed when the mortgage was written in 2006 when the market was at its peak. It’s now worth 50 grand. That’s the fair market value; the existing mortgage payment is 800 bucks while market rent is 600. The borrower’s sitting in the house that’s way upside down.
They have no motivation, their mortgage payment is more than what they would be paying in their rent. That American dream has become the American nightmare for a lot of people. The banks aren’t handling things. The banks want them to make–if this person lost their job, they want to make all 12 months their payment sum.
They’re non-flexible, they don’t want to take a write down on the principle amount. They might adjust the interest rate down some but that’s not really helping the borrowers. We had at the peak, 15 million homes that were underwater. Think about that, 15 million homes.
Mike: That’s crazy. Scott: Ridiculous. That was back at the peak in ’09. Today we’re still at 7 million homes underwater. Mike: Even with all the improvements in value that they have. Wow. Scott: Yeah, and you still have Florida which running that 12-plus months to foreclose New York, New Jersey at almost three years of foreclose if it drags out. These banks have all this paper that’s worth less than a toilet paper in a bathroom. They want to sell off for them to take a year to foreclose, it’s not worth their time because it costs them 3-5 times what it cost to foreclose.
They’re literally looking to move these portfolios for pennies on the dollar right now. The banks that have bought other banks, they bought these things at a discount anyway. Maybe at 25/30 cents of value so if they can move it to a hedge fund that’s going to pay 5 or 10% above what they paid for the asset in 30/60 days, that’s anywhere from 30-60% ROI quick form. You’ve got a lot of these larger portfolios that were bought and sold
The trickledown effect now for investors like myself and others can go on and buy a chunk of these assets for pennies on the dollars or I’d say 50 cents on the dollar or less of current market value. It gives us a lot of opportunity because if it’s still occupied we can still go back to the borrower and say, “Hey work with us. Yeah, you can’t afford $800 a month; let’s drop it down to 600 bucks a month. Instead of you making up two years of back payments or three years of back payments, can you bring four months to the table?”
You start adding those numbers up–let’s run the numbers I gave a second ago. It’s $120,000 mortgage, it’s worth 50. We pick it up for 25 grand or less. We get 600 bucks a month mortgage payment now on a modification. Six hundred times 12 is 7,200. Seventy-two hundred on a 25,000 dollar investment, that’s almost 30% right there. You add in the four months of back payments to your assets, another 2,800 so you’re at 10 grand on a 25,000-dollar investment. That’s a 40% ROI.
Not having to fix the home, not having to rent it, you get somebody making payments immediately for you. The borrower feels good about themselves because you forgave them some debt and gave them an opportunity. Now after 6-12 months you get a re-performing asset you could sell off at 50, maybe 60 grand as appreciation comes back up on something you paid 25 grand for. That’s it in a little bit of a nutshell. There’s obviously more moving pieces to it but that’s the basic premise for what we do on a daily basis here.
Mike: At the high level, the lenders are just not prepared to deal with talking with individual people and re-negotiating loans. Correct me if I’m wrong, and I may be totally wrong here, is they were insured against a loss there in millions, right? They’re like, “It’s not performing, I’ve got insurance to cover to me. Let’s just get out of this.” Right?
Scott: Totally. Two and a half years ago Fannie and Freddie and all those that were the, “I’m not hook for insuring a lot of these loans”, came out and stated, “We plan on selling actually more notes off than actual REOs.” For those guys and girls on the call here that are HUD buyers that’s the reason these HUD foreclosures have tried up and dwindled. The numbers that are available to you are decreasing dramatically because the HUD is selling them off; selling the notes off well before they become an REO.
In specific wording, actually in the memo that came out, they literally stated, “We planning on selling this to investors because investors have more opportunities and can be more flexible with exit strategies than we can.” We’re just too [crosstalk 00:14:15].
Mike: Then recently sold some huge tranches of notes; like massive. Never that large before, right?
Scott: Yeah, we’ve had a lot; we had a billion dollar portfolio announced the other day, move the average unpaid balance like 200 grand. IOH crack up because they use these, “Here’s what was owed.” I’m like, “Give me the actual real value of the asset in today’s dollar.” They won’t share that but it’s funny. They’ll leak a little bit out and if you know where some of these trades are going and what they’re selling them at and the buyer profile of the actual person’s that buying where their buying, you can tell yeah they’re getting a sizeable discount on what it’s worth right now.
Mike: I think one of the things that’s starting to change with guys like you that are out there talking about how to do this, is that they used to be still people still feel it feels institutional like, “I’m just an individual, how do I get started in doing this?” A lot of people, I don’t think they even know where to get started because it sounds like work to start calling banks and asking, “Can I buy your notes?”
There’s definitely a process to it, but talk a little about how people would get started from the beginning.
Scott: Couple of big things. One of the biggest mistakes that people make is they just pick up the phone or they walk into a local branch and say, “Hey I want to buy your mortgage.” They’re going to get told no almost 99.9% of the time. The department inside the bank If you guys are listening, if you get anything out of this call today, keep this in mind. There’s basically the name of the departments that handle the distressed note sales falls under two things. They’re either called special assets departments or they’re also called the secondary marketing department. These departments are usually at the corporate offices.
They’re not going to be at the 1-800 number you call. They’re either the corporate office or they’re separate building or a whole separate state sometimes than the customer service side. When you’re reaching at the bank, you’re going to be specific. You reach out for those two departments, you usually have to call the main switch board and find somebody, VP level and higher. You want to be very specific. “We’re buying defaulted notes.”
A lot of investors struggle with this because they come up the gate and their talking to somebody in the front say, “Hey I want to buy your notes and your REOs.” You have to realize, you got a 10 dollar an hour employee on the line, they hear REOs or notes they’re going to REO side because that’s very common. Then they’ll just send you straight to the REO department which is often just a voicemail box that states, “Please call the listing agent on your REO.” That’s all that you’re going to get.
The distressed asset; the special assets sales, secondary marketing department, those guys and girls in the bank are the ones that looking at the portfolio of the banks and realizing, “Hey we’ve got to move these stuff.” The way banks have your money leveraged at 7-8-10 times, for one loan to go in default costs them 10 times that in fees and lending capability.
These guys are motivated to move stuff. Now, you’re not going to Chase, you’re not going to called Bank of America, you’re not going to call Wells Fargo, Citibank. Those guys aren’t going to deal with you on a one-off basis. Let’s get that clear. They’re just too big, they sell notes yes, but they’re in 50 million dollar pools or as I call them, tranches.
If you can write out $50 million check just please see me or Mike after the call. Don’t waste your time on that. I can’t tell you how many times I get a phone call, I got a mortgage from Chase, not going to happen. What you want to focus on is the mid-size regional size banks that are in a few different states or a portfolio lender.
If a portfolio lender’s holding on their loans, they may be looking to sell them. I think that’s one of the things. People will start calling or they don’t know what to say or who to ask for and they get lost. Then they make 10/15 phone calls and give up. “Well, it can’t be done.” Yeah, if you make only 10-15 phone calls, it can’t be done. What we see on average, if you’re making 50 phone calls and doing the right wording, you’re probably going to get a hold of 14-15 asset managers on a call. You’re probably going to sign 4-5 nondisclosure agreements. Out of those 4-5 you’re probably getting one tape or asset sent to you that you can make a bid on.
Mike: Even with those regional banks or those local banks that might be out there, as time goes by here, more and more people are getting into note buying. Let’s say there’s just regional ACME bank that’s in central Texas, or something like that. Surely there are multiple people calling that bank. How does somebody stand out from–there’s 10 or 20 different investors like you calling them. How do you stand out?
Scott: You call back. One of my favorite motivational guys, to read earlier on in sales is Tom Hopkins. Tom had the book, How to Master the Art of Sales. There’s one line in that book that is probably more gospel, not only in note investing but real estate or in life. 80% of sales are made after the fifth contact. The fifth contact by that is literally following back up. 99% people that call banks, they don’t follow up. It’s the 1% that’s going to call back and they call back and they drop an email afterwards and follow back up. Literally just be a bulldog on the phone. That’s how you get successful.
Most people make one run through it and then they will never follow up and that’s just like everybody else. Those that separate themselves are the ones that are reaching out with a phone call, dropping an email and then jumping on the LinkedIn or Spokeo or something like that, tracking down the asset manager and then dropping an email through social media. “Hey I see you’re the guy over at Quicken loans. I would love to visit with you see what you have on your distressed debt that we can take a look at buying in.” You’ve got to be soul and purpose. You can’t be a jack of all trades and that’s another thing. There’s business cards where people got 12 different things they do on them. Where they got a LinkedIn profile or glamour shot that says, “Auto-mechanic and real estate investor that’s in business for a month.” In today’s world social media is so important because if you look at LinkedIn, the asset managers 99% of the time will jump on there and Google it to see what you look like on your profile. See if you’re a serious player or just a joker broker.
Mike: We do that too. Quite frankly everybody that we have on here, we rely a lot on referrals so there’s a guy we’ve had on the show previously that referred us to you. You and I, I don’t think we’ve ever personally met but we’ve been to a lot of the same events and speaking and stuff like that. Definitely run in the same circles and not necessarily with you.
In fact I have your LinkedIn profile right here. Before I meet somebody, I want to go out and see what’s new because people change jobs, change roles. We do a little bit of research, so it’s a powerful tool. Why wouldn’t somebody that’s looking to do business with you on scale of millions of dollars use those same tools?
Scott: Social stalking.
Mike: Yeah.
Scott: I did the same thing on you, Mike. Who’s this FlipNerd guy?
Mike: I’m suspect, I get it. Now the next question is, I think what a lot of people run into is having access to funds available to do this. If you can call a regional bank and get one loan that you paid 25,000 for or 100,000 maybe that would be great. Tell me what a lot of lenders they’re probably looking to package this and sell a lot off.
I’ve heard in the past–maybe I’m wrong. I know in the past, and maybe this is in the bigger banks where I’ve seen–people have come to me before where they have a tape, they’ve found the white whale and it has 200 houses on it. The problem is, as they say, I’m in Dallas. We have 200 Dallas properties. Next thing I know is half of them are three hours away. It’s not Dallas. There’s a bunch of junk in there. There’s nothing in the good suburbs where I like to be. It’s just this hodge podge of a bunch of stuff that you can’t deal with. I think that historically has kept people out of it. Maybe with the regional banks is that different?
Scott: Yes, and no. You will realize 95% of the loans that are out they’re still under $125,000 in value. That’s just where it is. Socioeconomic statistics, poor people pay more for housing and poor people are more susceptible to a missed job or missed payment and being in default. I saw a statistic that 87% of the United States is one missed payment or one missed payment check away from being in default. It’s scary but

Mike: They probably put 3% down so it’s not hard for them to be underwater.
Scott: Or they were doing some creative thing like with KB Homes $500 down. They lived in for 12 months and then when their tax is reassessed on the new structure they went in default.
As far as raising capital for these pools and stuff like that, I heard start off, you have to crawl before you run; you walk before you run. You have to trot before you run.
There’s a lot of places out there to cut your teeth off to simply go buy a large pool. There’s different exchanges that you can pick off a one off asset kind of learn the ropes because you have to have a system in place. You have to have servicers to help you manage the foreclosure trials and the borrower reach out.
You need to have BPO companies that will help you pull values, you have to have title companies that can book ONEs, make sure your buying a first lien or second lien or whatever you’re trying to buy. Those servicers will help you out with more than anything else. You have to put a plan in place before you go out and buy a pool of notes.
You don’t see a lot of high-end notes in the nice areas of Dallas that you like, because of a couple of things. One, people that can afford a 300/400,000 dollar house have a little bit of savings put away. They also have friends that end with Esquire. They got attorneys that can drag things out or drag foreclosures out. I don’t like buying homes at the time. I only buy notes because they’re getting dried out so it will take ma a year, two years to foreclose and my money is spent in other places. I like dealing sub-hundred thousand dollars category. You realize I’m not owning the real estate. My goal is not to own a real estate it’s to own the mortgage to get the cash flow. I don’t want to deal with toilets or tenants, I want to be the like bank. I might not even be Bank of America but Bank of Scotts, I’m fine with.
Mailbox money or wires coming in, I’m fine with that where it’s systemized. That’s what I want more than anything else. You don’t have to go buy a pool of 200 notes. If you’ve never buy one note, trust me no bank’s going to sell you a pool of 200 notes if you’re not experienced because banks don’t want a PR nightmare. They’re going to do the due-diligence saying, “Hey who’s your servicer? Are they HAMP approved? What’s your workout goal with these things? Are you going to mod much of these? Are you going to try to foreclose? Are you going to do things legally or illegally? Are you a licensed debt-collector in some states?”
That’s where a lot of people they love the idea of hitting a grand slam that wins the World Series with 200 assets. Start off with one asset or two assets or three and then go up to 10 and then go from 10 to 20 and then go from there. You’ll build your experience and put your training wheels on to help you crawled or walked to track to run.
Mike: Absolutely. Maybe just take a minute to just talk about the differences between in terms of if people are looking at liens, some different flavors like first lien, second lien There’s a lot of misconception I think about second liens that there’s more opportunity–from my experience of talking to other people there’s actually more opportunity there than I thought originally. I thought you could easily get wiped out but–which you can, but there’s more opportunity there than I thought. I guess for new people, do you recommend they even touch second liens or should they primarily focus on first?
Scott: There’s pros and cons on each side. I call it the Baskin Robbins of investing because you’ve got 31 different flavors of things you can do. I only focus on first liens. I buy non-performing first liens. That’s all I buy.
Occasionally I buy second behind my first. If the borrower is working with me or it helps me expedite my foreclosure or property or whatever we’re doing on. I just like buying non-performing first because I’m getting them at the cheapest. I’m still in first position so the only thing that’s going to wipe me out is taxes. It gives me the most amount of flexibility. It’s also easier for me to raise capital being in the first lien position.
Now people that invest in seconds, this is a rule of second investment, you only buy a second mortgage behind a performing first. You never buy a second behind a non-performing first because you’re going to get wiped out.
Seconds are often cheaper to buy as far as the amount of capital needed. You may pay 5 to 10 cents on the dollar, unless there’s equity and then you’re going to pay a portion of what the equity is available. Most second investors will buy 4 to 5 seconds, they realize they’ll probably get 2 to 3 working, the other 2 to 3 they’re going to put in a file cabinet and sit on a shelf for a year or two.
People like seconds because yes they’re cheaper dollars, so your ROIs are huge, but if I’m going to spend an hour on a project I’d rather make 500 bucks versus 50 bucks or 50 grand versus 5 grand. It’s a different flavor.
A lot of seconds investors are coming out of California because they property is ridiculous out there. The values are through the roof so for them to buy a first, they may cost them a half million dollars to buy one first loan. They could buy a pool of seconds. It takes a little more in-depth hand holding or loan modification on the second side than it is first. First if I want foreclose I am going to foreclose.
I have more options on the first side because I can foreclose, I can modify, I can allow them to assume the loan, I can do short sale. I can go to this–in some states out there have government programs like the Hardest Hit funds which the state will incentivize you as the borrower to do a loan modification and give you cash. If I’m in the first lien position and somebody’s made three payments on time on the loan mod, I might be able to get them into a FHA loan and refinance me out in three months. There are just more programs on the first side and yes it’s more expensive because you’re in the first, but you’re able to raise capital a whole lot easier being on their first rather than on the second side.
Mike: How do folks learn more about unfortunately, there’s so much more to this than what we’ve talked about. How do they really–I know you have information on your site, how can they go learn more about how they get started here are because we can’t cover it all in a half hour.

Scott: What? Come on Mike. You can go to my website weclosenotes.com; www.weclosenotes.com.
Another couple of good resources for people, if you want to start reading up on things, default servicing news or dsnews.com is a great thing. It’s one of the first things I read in the morning. It talks about servicing, it talks about secondary market, it talks about the foreclosure market. That’s a great way to keep your ear to the ground to hear things. But weclosenotes.com is my website. We’ve got a lot of videos there. Somebody said something the other day that would be good on my YouTube or my Vimeo account where I got a couple of hundred videos on there. If you watched everything on the weekend, you’d be pretty knowledgeable.
Mike: That’s good.
Scott: We have a lot of educational stuff available. We’ve got workshops as well but I always like to tell people to go watch some videos and get your feet with that way before you invest anything.
Mike: That’s great. Maybe you can say one more thing. What do you think the primary difference is of why somebody would be interested in buying notes as for buying physical houses or buildings or whatever?
Scott: I’ll give you my reason. I grew up in a hardware store so I can fix anything in a house. I’m creating a foundational window to fixing a roof to everything in between. My hour is worth more than going out and swinging a hammer. If anything, you’re trying to go out and battle other investors to buy a REO at the foreclosure auction or get one on the MLS, you’re going to get frustrated. If you spend the same amount of time on notes, you’re going to get a lot more deals. You’re going to get deals sent to you, you’re going to creating the paper game. If you’re any type of paper game, auto loans, first, seconds, student loans, whatever the paper game is, there’s money in paper. You being the bank–that’s why the banks are so big because they make so much money being in the paper business. That’s what they want to do. They don’t want to your deposits; they want your loan because that’s where the money is at.
Don’t go out swing a hammer, don’t go out and try to fix a flip. Don’t do the toilets and tenants, become a bank and you’ll start banking. You won’t be a broker any more. You’ll be a richer.
Mike: Well, Scott, we’ll add links down below for the links you mentioned for weclosenotes.com and dsnews. Thanks for your time today. I appreciate you being here. Scott: Thanks Mike, I appreciate. Glad to be here. If you need anything feel free to give me a phone call.
Mike: Awesome. Have a good day. Scott: You too. Mike: Are you a member of FlipNerd.com, the most robust real estate investing platform in existence? Well you can find off market wholesale deals and great vendors literally in your market. You can get access to advice from experts and learn about local clubs and events right in your back yard. If not, please visit FlipNerd.com and register for a free account. You can register in less than a minute. It’s pretty much the coolest site that’s ever existed in the real estate investing industry. So get on over to flipnerd.com.