On this week’s episode, Robby and Chase discuss a couple case studies coming down the pipe that they’re creating, a note deal in Gary, Indiana where Robby has to make a difficult decision, and the importance of continuing education & specifically, financial education.

They get started out by discussing the fix & flip deal in Winter Park, Fl that will be coming to a close soon and all of the great video content that will be coming for a full case study they are planning to create. Robby mentions there were a lot of great opportunities on it and goes over the rough numbers as well as the negotiations with the buyer that led to a happy conclusion for him.

The 2nd part of the conversation segues into learning opportunities, education and a deal in Gary, Indiana. The asset acquired on this deal was a non-performing note they purchased where the value is right around $50,000. Robby bought it in May of 2014 for a little under $8,000. However, there have been delays with the foreclosure, a bankruptcy got stalled, and pretty much anything that could’ve come up to stall the deal, did come up.

Robby reminds listeners that one area that can get you into trouble on these low-value assets are the servicing fees. Robby has been paying about $95 per month under FCI’s full collection program for about 24 months now.

The actual educational and difficult decision on this deal comes into play just a couple days before the actual auction which is on Friday. Robby received an email from the attorney who relays the message that the borrower asked if there’s anything she can work on via FCI to stay in the home as she is 75 and has some health issues. Robby goes over the numbers and the specific situation with this borrower which leads him to make a difficult business decision that can happen in this business. It’s an interesting challenge of this business where you have to deal with the human element and potentially have to move someone out of the home that they’ve lived in for a long time.

Many times, it’s a great situation where you’re actually able to help out a homeowner stay in their home. On the flip side, if a borrower doesn’t respond to your repeated attempts to contact them until the very last moment and are not willing or able to pay restructured payments when you know they have ample income to pay then it becomes just too little too late and it turns into the black and white of doing business.

This leads Robby and Chase to touch on the lack of and declining public education system in the U.S. to where these situations occur. If more people were provided a decent personal financial education or were willing to self-educate themselves then these situations could potentially be avoided. You need to be willing to sacrifice a day shopping or playing golf on a Saturday or Sunday to self-educate so you can get where you want to be in life. Robby brings up the great quote that you need to “spend time doing things that other people won’t do now so that you can live a life that other people won’t be able to in the future.”

Robby then recalls a recent phone call he had with Eddie Speed. He reached out to Eddie about seller financing education because Eddie has more working experience in this industry than Chase & Robby combined. If you want to succeed then you need to be constantly self-educating and “sharpening the knife.” Robby and Chase may spend well into the 5 figures each year for educational classes and life coaching, but they are able to make that money back in spades. They also understand that there is always room for improvement even though they’ve built up a sizable rental portfolio. It’s about seeking out an opportunity to improve your situation based on what your goals are.

Finally, they discuss a lot of the big things they have coming up such as the deals they’ll be exiting soon that will provide some great content and deal chatter come episode 83, 84 and 85. There’s going to be an event sometime around episode 100 which is fast approaching and in the works, but not solidified quite yet so keep an ear out for that!

Robby’s final parting shot is about Ryan Holiday’s book, Ego is the Enemy, that provided a well-timed reminder on taking a dose of humble sauce.

Be sure to check out the Insider Newsletter on the NoteMBA website that has a ton of value and is being sent out almost every week. It includes insider articles from around the industry that will help you navigate the industry to where you can understand where it’s at now and where it’s going.

Thanks for listening and we’ll see you next week!

If you have any questions for us or comments send them our way at [email protected].

Listen to this week’s show and learn:

• Why You Should Be Sharpening The Ax
• A Talk On Continuing Education
• A Borrower Want Help After Two Years Of Being Unresponsive
• An Update On A Fix & Flip With No Roof
• Doing More Seller Finance Deals
• Servicing And Low-Value Assets

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

Cheers,

Chase & Robby