We’re not Gurus, nor do we play ones on this podcast. But listen along as we break down how we break down a “tape.”

With the tables turned this week, Chase is coming to you from the road, and Robby is staying put in Florida for a few more weeks. We discuss who we feel our target audience is and want to make it clear that we aren’t trying to become gurus of the note business. We saw a gap in the market where we could share the real nitty gritty of our businesses and that’s what we are here to share.However, you’re expected to learn something along the way and we hope our listeners not only find out content enjoyable, but practical and informative.

A run down of how we start evaluating notes when we get a new tape/spreadsheet in. Step one for both Chase and Robby, sort the list by state and get rid of the ones that don’t fit in your top five states. (Don’t afraid to invest away from where you live, get out of your own backyard. To hit the point home, Chase’s first note purchase was in Ohio, a state he’s never even been to.)

Performing (re-performing) vs non performing ? Robby stays away because he’s looking for larger returns, but Chase has investors looking for performing notes, so it all comes down to your investing strategy.

It also pays to remember who sent the tape to you. Are your sellers providing extra data to help with your upfront due diligence, i.e. BPOs and O & E reports? These are good to help you start, but they aren’t always the best source of information and you should look into getting your own due diligence reports.

The importance of building a strong relationship with your sources of deals and keeping strong lines of open communication, this is important for when you decide you don’t want to close on a deal after your due diligence.

Evaluating types of properties for you, SFH, mobile homes, condos, townhomes. What are you looking to do with the note if you’re doing the workout? Robby is looking for condos and multi-unit properties for his personal portfolio, because he is looking to develop of strong portfolio of rental properties.

When it comes to specific cities, try looking in areas where there are corporate headquarters of Fortune 500 companies. They tend help sustain property value by providing a large employment base. For example, you can find the top 50 Corporate Headquarters in Dallas here; its safe to say Dallas has a strong employment base.

Using Activerain.com to find a RE agent to take a look your property for you… remember they need to be your go to agent if you close the deal. Pay extra attention to the data collected by your boots on the ground collector. If you can get your own eyes on it, even better!

Using an ROI calculator when evaluating deals and plug in your numbers to get an idea of how the returns are looking during initial evaluation.

Our Exit strategies:

• Wholesale the Note
• Foreclose
• Loan Modification
• Deed in Lieu of Foreclosure
• Short sale of property
• Short Pay by owner
• Selling the loan to title holder
• Foreclosure to rental

As always send you questions to [email protected].

Listen to this week’s show and learn:

• What Market Are You Trying To Serve
• Quick Start Guide
• Guru Status
• How We Breakdown Tapes
• All The Exit Strategies We Use
• Biggest Recent Breakthroughs
• Stop Finding Reasons Not To Do Deals

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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby