Investing in Ohio real estate is something we've been doing for some time. We've talked about numerous note deals happening in the wonder state of Ohio. In fact, that deal we've been lamenting because of an aggravating contractor, Ohio. The deal with the borrower that deeded a property to a friend, who subsequently filed bankruptcy, Ohio. Suffice to say we know a bit about investing in Ohio real estate.

Today, we have the opportunity to talk with, Franco Barile. He's an attorney in Ohio, and came strongly recommended from Adam Adams. We might have a portfolio of deal in Ohio, but this guy is in the trenches every day.

Franco Barile is the other half of Sotitile & Barile, a fantastic law firm out of Strongsville, Ohio. This particular law firm came highly recommend from Adam Adams, who has a growing portfolio throughout the state of Ohio.

After a chance encounter during one of the morning sessions at Paper Source. Which led to some great conversation about 2nds and different investing strategies, we just had to have both him and his business partner Tony on the show. However, Tony couldn't make it today. You'll find out why we might have the guys back on the show soon towards the end of the show.

Like we discussed last week, May is 2nds Month on the podcast. So, I wanted Franco and Tony to come on to talk a bit about what they are seeing in their market regarding 2nds. We also touch base on a few items we covered during our conversation at Paper Source.

You're sitting there talking with someone about one aspect of real estate. Then all of sudden, without warning, you've moved on to another topic. And just like, you're 25 topics deep into the rabbit hole that is having a conversation about real estate investing.

Does that just happen to me?

I didn't think so.

So, of course, we originally wanted to have Franco come on and talk primarily 2nds, but that just isn't how all this normally goes. And without fail we move onto numerous other topics. We cover a ton ground. We 2nds, 1sts, CFDs, foreclosure timelines, which countries to invest, and bunch more.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at [email protected].

Listen & Watch this Week’s Show to Learn:

• A New Legal Contact In Ohio
• Which Ohio Counties You Should Be Investing In
• What The Market Looks Like For Investing In Ohio Real Estate
• How To Decrease Foreclosure Timelines
• Is Investing In 2nds Still Worth It
• And much more!

Featured on the Show:

• Sottile & Barile
• Due Diligence Pro

Listening Options:

• Subscribe via iTunes.
• Listen on Stitcher Radio.
• Right-click and “save file as” for direct download.
• Or click here to get sent to the top of the page where the on-site player is.

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

Cheers,

Chase & Robby

Fuquan Bilal is one of the nicest guys you'll meet in the note investing space. If you're at an event, he's always available to answer questions, give feedback, or just rap with you about the industry. He's been on the show before, and now he's back to help us kick of May the Month of 2nds.

We've openly talked on the show before about not having much experience in the 2nds space. So, we though now would be as good a time as any to bring some experts on to talk about them. We could hardly think of a better person to hit the show first than the one and only, Fuquan Bilal.

Fuquan has a great background in 2nds, something that we will openly admit to only knowing enough about to get ourselves in trouble. He has one of the best explanation of what a 2nd represents in the investment space.

A 2nd is a high-end collection with security.

He even drops one of signature lines, "Seconds come first."

We cover a ton of ground in this second - get it, sorry it won't happen again- interview. An interesting aspect to his business that has changed since the last time we talked with him, is that he's decided to also start taking down pools of 1sts. He's also taking advantage of some local high-end traditional real estate flips and rentals.

An important topic we discuss is how Fuquan approaches the business from a balance perspective. That is, how he's able to run the National Note Group, side real estate projects, family, fitness, etc. He talks about the importance of have business process maps. Ask yourself, "What if you had to hand this off?" This will get you in the mindset to understand how to hire staff or VA's, and what tasks to offload.

We also touch base on his educational material over at NNG Note Academy.

Fuquan touches base on something that Dave Van Horn talked with us about, and that's using collateral assignments. This is an interesting strategy for people to use that mimics an often used bank strategy to leverage performing assets.

During the Paper Source conference numerous people asked about this as a possible strategy in their business. So, it was great to here Fuquan talk about it in his business.

The example Fuquan lays out is purchasing a $50,000 non-performing note for $12,000. After working with the homeowner, he's able to get them paying $400 a month. After that loan has been seasoned for one year, he'll go out to an investor and do a collateral assignment against that note.

The collateral assignment is essentially the investor will lend you money against that performing asset for a set term. So, now he can go borrower $20-25,000 off this note he paid $12,000 for. And it all comes down to numbers and what you can negotiate regarding the terms on the deal.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at [email protected].

Listen & Watch this Week’s Show to Learn:

• We Have Our Second Interview with Fuquan Bilal
• Collateral Assignments & Hypothecation
• The Importance Of Systems And Process Maps
• How Vital Time Blocking Can Be As An Investor
• Why Fitness And Mediation Matter In Your Business
• And much more!

Featured on the Show:

• Due Diligence Pro
• Dave Van Horn
• NNG Note Academy
• TLO

Listening Options:

• Subscribe via iTunes.
• Listen on Stitcher Radio.
• Right-click and “save file as” for direct download.
• Or click here to get sent to the top of the page where the on-site player is.

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

Cheers,

Chase & Robby

Show notes coming soon!

Working a short sale can be a bit tricky. That is if you're working with traditional banks. One of the exit strategies I most often forget about is doing a short sale. On today's show we do an interview of sorts about just that, working a short sale.

Of course, it wouldn't be a Note MBA deal if there wasn't a bit of creativity thrown in for good measure. So, you're going to want to get the lowdown on this deal.

Today we interview a newcomer to the real estate investing world, Nick DiSanza. Nick is a forensic loan analyst for a company based out of Dallas. His job for the past few years has been to review many of the loans we buy as note investors, or at least loans like them. They do this on behalf of the investors that backed the loans.

Finding fraudulent loans, or loans that weren't exactly what the sellers promised is his day job. However, by night he's a newly minted real estate investor. He met Robby six months back and was instantly interested in note investing.

So, Robby put him on ice for a few months, all the while Nick hounded him a chance at bat. Robby finally gave him a chance with a deal. What started as a potential loan mod became working a short sale with the son of a deceased borrower.

Apparently, when all the foreclosures and market tanking was in full swing it wasn't just the home owners that were feeling the effects. There were some four-legged innocent bystanders.

This wasn't something I had really spent much time thinking about prior to last week. A listener of the show sent me a link to an article from HousingWire. It opens with them talking about a long time, nonprofit that advertised on the site. This nonprofit company No Paws Left Behind specializes in an interesting part of our business.

There mission is to bring awareness and a voice to the silent victims during the tumultuous foreclose times, pets. These animals have no voice or ability to implement change for a circumstance they didn't cause. Their homeowner could no longer afford the house payment. They get behind on bills, and can barely manage to keep food on their own plate. Then it comes time to move, and these cats, dogs, birds, etc. are left behind to fend for themselves. Which isn't something many of these animals are equip to do.

The current number estimate over 60% of American homes have pets. And with the record number of recent foreclosure, it leaves over a 1.5 Million companion animals at risk.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at [email protected].

Listen & Watch this Week’s Show to Learn:

• Working a Short Sale
• Who Would Leave This Behind During A Foreclosure
• Why Won't These People Take My Money
• Do You Want More From The Forensic Loan Analyst
• And much more!

Featured on the Show:

• No Paws Left Behind
• article from HousingWire

Listening Options:

• Subscribe via iTunes.
• Listen on Stitcher Radio.
• Right-click and “save file as” for direct download.
• Or click here to get sent to the top of the page where the on-site player is.

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

Cheers,

Chase & Robby

Long distance remodeling is current kicking Robby's butt. Well, more specifically one particular long distance remodeling job is kicking his butt. On today's how he steps up to the late to talk about our difficult Ohio deal.

He isn't just pointing fingers either. On this deal he talks about some of his shortcomings as well as the massive pain that a few contractors have been.

Long Distance Remodeling

Robby took a day trip up to Ohio to inspect one of our remodels. During a dinner with some local real estate investors he was asked about what he was doing there. He told them about this deal, which has a contractor that has botch just about everything you possible can. The worst part of the entire ordeal is that this particular contractor came to us via a referral.

It's been an incredibly drawn out deal. And the insult to injury reinforcement came in the form of another contractor, basically, tattle-telling on this other contractor. IT is never a good sign when you have contractor infighting on the job.

We haven't found the best way to manage this contractor on the numerous jobs we have with him. But, the trip was still productive as he was able to check in on some other deals we have in the area, drive some new assets, etc.

Traveling For Your Real Estate Business

It's become a staple on the show, travel. With Robby being our long time resident traveler, and now David is following suit. There are numerous reasons we talk about it so much. The first being how fantastic travel can be some times. Giving you a chance to gain perspective on where your business is going. Maybe giving you a chance to finally breath after an extended work schedule.

The list for why traveling is a good idea, in general, can be incredibly long. However, for us as real estate investors, it can be beyond important for our business. Having the chance to put eyes on a property that we might acquire can be invaluable. Not only that, as Robby discussed in this show handling that long distance remodeling without flying often has been a bit of a thorn in his side.

Now that isn't to say that you're always going to have trouble contractors that require you to travel. But, you might want to start thinking about how you can up your travel game over the next year. It could be the catalyst to take your business to the next level.

Or at the very least keep you in a productive mindset.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at [email protected].

Listen & Watch this Week’s Show to Learn:

• A Long Distance Remodeling Mishap
• Why It's Important To Trust But Verify, Even Referrals
• Where In The World IsThe Note MBA Crew
• Why Travel Needs To Become An Important Part Of Your Business
• We're Launching Something New At Papersource, You're Gonna Want To Be There
• And much more!

Featured on the Show:

• Four Hour Work Week

Listening Options:

• Subscribe via iTunes.
• Listen on Stitcher Radio.
• Right-click and “save file as” for direct download.
• Or click here to get sent to the top of the page where the on-site player is.

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

Cheers,

Chase & Robby

Your note investing strategy is going to take many different forms. Some of the key factors that will inform your strategy are current and past relationships, individual skills, prior real estate experience, etc. Let's dive in on how David is planning to start growing his note investing business.

One of the biggest things we'll be interested to see how David attacks note investing is DistressedPro. We recently had Brecht on the show, and we've been wanting to work the software into our business. We're really going to start digging into what is available for new avenues for inventory. We also cover a quitclaim deed issue in Ohio, requesting a tax payoff in Cook county, and more.

Right off the top David mentions needing to get an LLC lined up. Though he already has one for a separate real estate venture, so he knows that isn't completely necessary yet. Also, he'll be working through Robby's LLC, and working through some deals that we already have under management.

This isn't an option for everyone, obviously. However, it doesn't change that everyone is going to bring different strengths and opportunities to the business that is unique to them. It's important when you're getting started to take a step back, and take stock of your those possible strengths.

From there, David knows that the next step to operating a successful note business is understanding the due diligence process. That will be the next major portion of the business David will shift his focus. Then it's using DistressedPro and other resources for finding deal sources. And finally, working to refine his systems to get his business rolling in the direction to achieve the lifestyle he's after.

Last week, while traveling to look at assets in Baltimore, Robby got a call from his attorney regarding a foreclosure case that was supposed to happen on Friday. This call came days before a pending auction, which we all know isn't good news - it's almost always a bankruptcy. This was a unique case though.

In this case the borrower, that was an LLC, decided to quitclaim the property to a third-party. This third-party then proceeded to go filed a Chapter 7 bankruptcy. The most interesting part of all of this, aside from the obvious, is that this is all above board. Its completely legal.

We'll be keeping you in the loop on this deal. It's certainly one of the more unique deals we've worked on, and of course it came up in Ohio, a state that offers a ton of opportunity for note investors.

Next up is a tax payoff opportunity in Chicago, how we're planning on growing the show, and more.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at [email protected].

Listen & Watch this Week’s Show to Learn:

• A Tax Payoff And Redemption In Cook County
• Ohio Foreclosure Case With A Unique Angle
• How A Borrower Can Extend A Foreclosure With A Quitclaim Deed... Legally
• Your Note Investing Strategy, And More Specifically David's Strategy
• Our Plans For Improving And Growing The Show
• And much more!

Featured on the Show:

• DistressedPro
• Four Hour Work Week

Listening Options:

• Subscribe via iTunes.
• Listen on Stitcher Radio.
• Right-click and “save file as” for direct download.
• Or click here to get sent to the top of the page where the on-site player is.

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

Cheers,

Chase & Robby

Growing your real estate investment team can be a daunting task. We've talked about some recent additions to the team in a few episodes. However, today's announcement will be a bit of a shake up for us. Today we introduce a new co-host for the Note MBA podcast.

Along with today's announcement, today's show was the first time Robby and I've recorded a show in the same room in what feels like forever. So, if you're interested in the video component, please head over to our YouTube channel. Don't forget to subscribe while you're there.

One of the biggest things we've been working on over the past few months has been our business systems. These changes and enhancements to the business have been mostly predicated on business growth.

Our systems were perfectly designed for where we were, but not for where we wanted to go.

Along with these systems we've been talking about expanding the team. The struggle when growing your real estate investment team can come from numerous angles. Do they share a similar vision? Will they jive with current company culture? Are they someone I want to work with?

David Glinski, the newest co-host here at Note MBA, meets all these qualifications and then some. We're beyond excited to have him on the team.

The last time we recorded a podcast episode in the same room the audio was awful. Which by itself isn't great. However, we were recording with a $100 million dollar hedge fund manager at the time. So, I'd say awful is an understatement.

This time the audio was perfect, thankfully.

It also gives you a very preliminary preview of what might be to come for the podcast. We've love to do more videos. And now that we have David on board, we should be able to pull it off. Be sure to send us your feedback on what content you'd like to see us tackle on video.

Also on today's show, Robby takes a call live on the air. Which would also be a component I'd like to incorporate into the show some how.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at [email protected].

Listen & Watch this Week’s Show to Learn:

• An Article About Unlocking Your Potential
• The Newest Addition To The Note MBA Team
• Taking A Call On The Show
• And much more!

Featured on the Show:

• The Obstacle Is The Way
• Ego Is The Enemy

Listening Options:

• Subscribe via iTunes.
• Listen on Stitcher Radio.
• Right-click and “save file as” for direct download.
• Or click here to get sent to the top of the page where the on-site player is.

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

Cheers,

Chase & Robby

What are the metrics real estate investors look at when deciding to invest? Which social networks should I be focused on to attract more deals and private capital? Those are two of the most frequently asked questions sent to us via email. These are the two of the things we address in today's episode.

Even though it's the Spring Break episode, it didn't feel right to leave you hanging without a show. So, we do some listener Q & A. After that I pose a few questions to the investor community that listens to the show.

So, what are the metrics real estate investors look at when deciding to invest? The answer to this question is both specific and nuanced all at the same time.

The four big metrics you're going to want to focus on are:

Cashflow: Robby has talked about it before on the show, but cash(flow) is king. More specifically, especially with notes, is you need to be comfortable with having to hold onto the property. Not forever, but maybe. Run every possible ROI scenario to understand your position as completely as possible.

Location, Location, Location: This is the time tested answer, and it only bare repeating because with notes you can invest in almost any location. For us that means you need to get familiar with multiple layer before investing. State, county, city, etc. Pick your markets wisely.

Budget: Make sure you're not putting yourself or your JV investors in a bind by not having necessary cash reserves to fully execute on a deal. It's as simple as that. A $20k deal, won't always run you $20k. And you should never expect it to.

Carrying Cost: The unsung anti-hero of many real estate investing transactions. This is the thing most realty shows leave off. Properly account for your entire possible holding time. Never count on a sale happening in the first 10 days a home goes on the market. And don't count on a streamline foreclosure.

We don't talk marketing a ton on the show, but when we do there is always a decent amount of questions that come rolling in. And, it makes sense that this would be one of the top questions. Investors don't want to waste time, and I get that. So, let's break down the top places you should be spending your time, and possibly money.

Facebook gets top billing here. If that surprises you, you need more help than this episode will provide. It's the largest social network by far, and it continues to dominate. They're constantly acquiring other networks, or implementing things that make people abandon other networks. It's likely to be your best marketing ROI platform for quite some time.

Up next is YouTube, and that's mostly because video marketing needs to be apart of your marketing strategy. Of course, there is no bigger player current than YouTube - though Facebook is making a run at it.

From there, you're going to want to dabble with Instagram and Snapchat. Figure out which platform suits your style, then go all in.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at [email protected].

Listen & Watch this Week’s Show to Learn:

• Metrics Real Estate Investors Look At When Deciding To Invest
• Which Social Networks Investors Should Be Focusing On
• Taking The Path of Least Resistance
• Hard Decisions Easy Life, Easy Decisions Hard Life
• Why Chase's Wife Made Him Record This Show
• And much more!

Featured on the Show:

• Path of Least Resistance Article
• Facebook
• YouTube
• Instagram
• Snapchat

Listening Options:

• Subscribe via iTunes.
• Listen on Stitcher Radio.
• Right-click and “save file as” for direct download.
• Or click here to get sent to the top of the page where the on-site player is.

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

Cheers,

Chase & Robby

Distressed Pro is software many in the real estate investing world use. So, today Robby and Chase sit down with the creator Brecht Palombo to talk about Distressed Pro, the state of the industry, and where he thinks the market is headed.

The guys jump into this show addressing Robby traveling out to New Orleans. The last time Robby has to 'phone in' a show he was driving 75 mph down Cajon Pass - between Vegas and LA.

With very little fanfare, mostly due to their ubiquity in the industry, the guys jump right in with Brecht. While the gentlemen are both back from some culture heavy events, they waste no time jumping back into the swing of things.

Distressed Pro is home to the BankProspector software. This is a hosted online software (SaaS) you can use to source institutionally owned off-market notes and REO deals. The way they've designed the tools in BankProspector give you fast, easy access to non-performing loan and REO portfolio information, “sell” indicators and contacts so you can source more deals.

Essentially, this is software that can help you find and evaluate REO, non performing loan, and bank contact data from every bank and credit union. That's right they track 100% of the banks and credit unions non-performing portfolios.

They even have content around how to contact these banks, comb through the data, etc.

Brecht was a Dot Com Bust refugee, his words, holding hundreds of thousands of shares in dot com companies that were worth absolutely nothing. So, when every crapped the bed, he was left in a really tough situation. That whole experience left a terrible taste in his mouth with regards to working you face off for just a paycheck.

What he was looking for was something to insulate him from that experience, which lead him to focusing on real estate. Well, that a an uncle that was killing it in the real estate space.

His first foray into real estate was working on a rental portfolio up in Boston. He went on to get his real estate license, and start selling real estate as an agent. That quickly started to grate on him, as he says in the show, "I don't give a crap about your school system, or what color the bathroom is." He knew pretty quickly that he needed to find another avenue in the real estate world that jived with his strengths.

Which lead him to want to be the bank.

One of the things Brecht mentions first is the "cracks" everyone is hearing about in the multi-family housing space. The fact is that newly defaulted multi-family notes have been on the rise since last June. He mentions a 25 to 30 percent increase in defaults in from the most recent reporting period.

Then if we go look at some of the other data coming out in the reports, we've had a spike a newly late residential loans. And in farm land loans. And in commercial and industrial loans, that aren't backed by real estate. So, you can see that having this type of data at your finger tips in software like BankProspector can be very helpful.

Brecht continues to drop more numbers and data regarding the state of the industry throughout the episode.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at [email protected].

Listen & Watch this Week’s Show to Learn:

• Robby and Brecht geek out on data and numbers
• What the guy who wrote the software that tracks bank and credit union data thinks about the market
• Why losing it all in the Dot Com bust helped make Brecht a better investor
• How much lenders currently control in non-performing residential debt
• A video course to help you learn how to read into financial data released by banks
• And much more!

Featured on the Show:

• Distressed Pro Mini Course
• BankProspector
• Brecht Palombo

Listening Options:

• Subscribe via iTunes.
• Listen on Stitcher Radio.
• Right-click and “save file as” for direct download.
• Or click here to get sent to the top of the page where the on-site player is.

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

Cheers,

Chase & Robby

Robby is selling a Las Vegas condo he's had since he got into the business. We polled the community, and you sent over your feedback. It was a bittersweet moment when he realized that selling was the right move. Along with that, we also discuss Robb'y trip to Haiti and giving back.

While the gentlemen are both back from some culture heavy events, they waste no time jumping back into the swing of things.

Chase starts out by referencing an episode from about 20 shows back where they polled the audience. It was a poll about whether Robby should focus on selling a Las Vegas condo or keeping it. The overall recommendation was to sell it which Robby went ahead and did. Robby took a video on it which will be released soon as well so keep a look out for that.

Robby then segues into his transformational charity trip to Haiti which reminded him of how he and many people can overvalue certain things in life (the Vegas property was one of them) and that we need to remember that life provides abundance in so many ways that we should be mindful of the fact that excess is not the goal.

This topic then reminds Robby of a quote by William Morris which says “Have nothing in your house that you do not know to be useful or believe to be beautiful.” In the sense of having less, Robby goes on to explain that what he’s doing with his note business right now and the selling off of some of his rental properties is completely in line with this thought process. He also reminds listeners that it’s not necessarily wise to be doing 100 deals (of which many are probably rubbish) when you could be doing less deals that are worth more and are more profitable. In the end, you have to determine what works for you and is best for your based on your investing goals.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at [email protected].

Listen & Watch this Week’s Show to Learn:

• A wrap up on Robby selling a Las Vegas condo and a brief video on it
• What Robby learned on is transformational charity trip to Haiti with Children’s First
• Why it may make sense for you to focus on less note deals, but higher value ones
• The importance of understanding your specific investing goals and always asking yourself if a deal you’re about to do makes sense based on those goals
• The benefits of journaling
• And much more!

Featured on the Show:

• Children First Charity
• “The secret of happiness is not found in seeking more, but in developing the capacity to enjoy less.” - Socrates
• “Control yourself. Take only what you need.” - Quote from a Group Chat Text
• Joshua Becker - The More of Less: Finding the life you want under everything you own
• A quote by William Morris - “Have nothing in your house that you do not know to be useful or believe to be beautiful.”
• Tony Robbins
• Tim Ferriss
• The Science of Getting Rich by Wallace Wattles
• Brecht Palombo with Distressed Pro

Listening Options:

• Subscribe via iTunes.
• Listen on Stitcher Radio.
• Right-click and “save file as” for direct download.
• Or click here to get sent to the top of the page where the on-site player is.

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

Cheers,

Chase & Robby