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Many people can be successful in doing note investing, but you have to remember that this isn’t a race. The reason anyone is more advanced than someone else is that they have done the deals and paid their dues. You need to build and have the confidence to make that next step and take a leap because buying a note is pretty simple compared to everything else. You can’t become good unless you plunge in a big way. Learn how you can do note investing successfully as Chris and Gail answer questions and comments from other people on this open mic night.
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When you are making a note investment, it is best to have a thorough home inspection on the tape. Chris and Gail continue the conversation and focus on some home inspection red flags to be wary about a tape that you acquired. As we touch on the advantages of hiring a third-party and independent home inspector, learn why it is crucial to oversee a portfolio of real estate and manage construction projects sometimes. On the side, find out what escrow and tax and insurance balance is, the bankruptcy basics, and the difference between a note and a mortgage.
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It’s very easy to look at a big tape and see big ROI numbers and think, “This one is great. We should do this.” However, when you look at a big tape or any tape for that matter, you should always evaluate from the standpoint of things like how beneficial is it to buy a particular asset? How many payments are there? What makes it a great deal for a JV? Chris and Gail get into buying and reselling tapes at a profit. As Gail goes into a new CFD tape with over 650 assets on it and how to approach a big tape like it, Chris tackles how you should structure your JV agreements and touches on the process of doing his very first rehab in over 100 notes that he’s done and gives some recommendations for people who are doing some work on properties.
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There are sweeping changes in the note business nowadays that investors should be aware of. Today, Chris and Gail break down some of the shifts they witness in the real estate note business. They go in-depth with the deadlines and demanding paperwork from FCI, the consensus favorite for IRAs with Quest Trust Company, and checkbook IRAs. Find out how long it takes to have reports such as a two-owner in your doorstep and the two loan servicers that provide exemplary expertise.
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One of the ways to make a profit in real estate is to do rehabs. A real estate rehab is done when an investor acquires a property then sells it to make a profit. Chris and Gail talk about their experiences doing rehabs and let us in on what we can learn during the process – doing cross-country, dealing with contractors in renovation, and dealing with potential buyers. They also state some of the important things to note when you start getting more notes in your portfolio in dealing with rehabs, such as making sure you budget correctly and have reserves. Get ready to learn more about doing rehabs as Chris and Gail dive into the subject.
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Selling notes and assets can be a tedious task. There are steps that need to be done when selling a note, REO, or CFD. This includes shutting down the insurance as soon as possible. It is also necessary to have utilities changed into the new owner’s name and that instructions are clearly delivered to from the sellers. Chris and Gail discuss the paperwork one has to deal with when selling notes and assets with all the different forms that vary between states. They also tackle how dealing with bank underwriters is a part of the steps in selling, and why any sale that does not push through can be considered an opportunity rather than a disaster.
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PaperStac is a platform where investors can come together in a safe and controlled environment to buy and sell mortgage notes. Brett Burky, Co-Founder of PaperStac, dives deep into the process of how the platform works. He gives us a glimpse when he was first asked to be a consultant and how seeing a huge opportunity made him decide to be part of it. Brett also shares why this platform is user-friendly, especially to first time buyers or sellers. Learn more about PaperStac and how you can leverage it as Brett walks us through its features.
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Real estate and note investments are not only about buying and selling properties. You have to reach the back end to see what actually happens in the process. Investors have lawyers to keep them backed up legally, and that is where the stress sometimes comes in – keeping legal documents in order. Gail and Chris kick off with what the usual legal paperwork is for such as transfer titles, trustee deeds, and deed of assignment. As they share their journey on CFDs, find out the process in performing CFDs versus performing notes and if it is a good fit to do notes in an IRA. Also, hear Gail’s epic story about hiring a crooked contractor as they address more problems on titles, the risks with having the property in your name, and more.
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You can always learn valuable lessons from whatever situation you are in, no matter how aggravating they might be. Venting out their frustrations, Gail and Chris look back at some deals that happened and reflected on the things they learned from them. Gail and Chris give an update about the water issue of a house consuming 5,000 gallons per day. Gail then shares her concern to close a distressed house in Oklahoma at an inexpensive price while Chris talks about an issue regarding the process of doing three loan modifications. Join Chris and Gail as you also reflect on the lessons you may have learned from certain aggravating deals.
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Continuing to embody the notion that you can survive it all, Gail and Chris, with a few of their friends, take you into multiple note investing scenarios that will have you prepared for the good, the bad, and the ugly. They talk about the CFD, particularly on paying the water bill, and discuss on taking legal action when a borrower stops paying. Together with Bill Griesmer of Stonegate Capital, Gail and Chris dive into servicing notes and the risks to performing and nonperforming notes. Going in-depth into these scenarios, they remind us that note investing is an apprenticeship business. You only learn by doing it.
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From the publisher's feed
Welcome to Creating Wealth Simplified, a podcast that guides you on becoming a passive real estate investor through strategies like mortgage note investing. This show provides you with the right…
If you want to break the corporate chains that hold you back from earning the money you desire, you are in the right place. Each episode, learn the ins and outs of passive investing that reveal why you should not rely on your W2 or 401k alone when building wealth. Find out various investment strategies that prove why the 40/40/40 rule is untrue. Instead of working 40 hours a week for 40 years just to keep 40% of your income, explore brand-new avenues in the form of mortgage notes, real estate funds, rental properties, and more!
Experienced investors reveal how they reach and go beyond their financial objectives by starting a side hustle in real estate. See how to emulate their biggest wins and gather the lessons from their most serious challenges. Listen to these real-life stories that open your eyes to the possibilities of achieving a thriving passive income at any age. Whether you are an energetic individual in your 20s or a retired worker in your 60s, you can never go wrong with this kind of investment.
Hosts of the podcast are Lauren Wells and Christopher Seveney.
Lauren has a passion for real estate and has been investing since 2010. During this time, she has helped grow and manage a portfolio of over 100 assets which include both residential real estate and mortgage notes which is now a multimillion-dollar portfolio. When she is not shaking things up professionally, you can find her spending time with my family at the beach or planning her next backpacking adventure in the beautiful backdrop of Santa Barbara where she calls home.
Chris has been a real estate professional for more than 25 years. Known for his honesty, tenacity, and professionalism, Chris managed over $1B in real estate and has built his Note Investing portfolio to over 500 deals valued at around $75M. Additionally, Chris founded 7E Investments that presents investment alternatives through mortgage note investing. They specialize in custom active and passive investment options for accredited, non-accredited, and self-directed IRA investors.
Lauren and Chris are here to remind you that Wall Street doesn't have to be the biggest financial goal. Open your eyes to the many opportunities up for grabs in the realm of real estate. If you have doubts or questions about starting a side hustle through passive investing, this show has everything you need to begin.