Alright, we're going to try something a little different with this week's show note. We decided to try a bit of outsourcing for a complete transcript of the show notes.
We're well aware they're rough in some areas, and we will try to fix that going forward. However, we'd love some feedback about whether these full transcript style show notes are better for you.
So, leave a comment down below if you want to weigh in on the full transcript versus regular show notes.
Chase: Hey everybody! Welcome to the NoteMBA podcast, your home for note investing on iTunes. I'm Chase Thompson. This is episode 66 and I'm joined as always, by Robert Woods - except for when we do an interview and it's only one of us and not the other, but that isn't today. We do have some sweet interviews lined up for you guys over the next couple of weeks. We are getting pretty pumped about that. We are getting those recorded, underway and edited for you guys. We are very excited about that. Mr. Woods, how are you sir?
Robby: I'm fantastic, back from vacation also another reason why we will start having more and more interviews on the show, so I can take more and more vacation.
Chase: Look man! You work hard. You earned it. I get it. It's all good. I can dig it.
Robby: Yeah, I like the interviews. I think it breaks up them and it brings a lot of great ... It also allows you to vacation. I think it's good. It keeps you fresh.
Robby: I'm all about that.
Chase: Speaking of vacation, we've discussed before how taking vacation, affects aspects of lifestyle design and business design. It's setting up a system so things don't fall apart when you leave for a week or longer. Or also being able to manage stuff while you are on vacation if you have an extended one, it's being able to write off different aspects of vacation because of the things that we do and the way that you manage those kinds of things. Number one, how was your time away? Number two, did you have some other really great nuggets or some really good pieces to share with us regarding this most recent trip?
Robby: The time away was amazing. I was out there with a great group of friends for my buddy Tony's bachelor party and we just had an absolute blast. Beautiful island, great beaches, we had great group meals, good entertainment. It was the Heineken Regatta. It was just a great trip overall however to what you just said about the ability to facilitate working while travelling, I'm a big proponent of telling people how much I love T-Mobile because they've got a great international plan and that's what I've always kind of used as a crutch when I'm traveling. I got to say St. Martin had no service the entire time.
Chase: That's why we had to email back and forth I'm assuming.
Robby: That is 100% correct. I got Wi-Fi, so I could send out a couple texts. I did like a 15-minute mental assessment after I realized it's going to have no service and proactively sent out some emails to probably 7 people who had deals they were working on for me or a couple of attorney issues or some things that are going on. Then a broker on a property that we have listed right now in Georgia saying, "Hey, this is the deal. I will get back with you on Monday." It's funny it allowed me at some level after I got those emails out I just shut down. I didn't really do much work for the rest of the week and really just enjoyed it other than responding occasionally to some emails whenever I got on Wi-Fi which usually was I would say less than a half an hour a day.
Chase: You were rocking the definitive no probably four-hour week there for a little while?
Robby: Yeah. A hundred percent and no anxiety at all this time. I think no anxiety came from realizing I didn't have it and just being like, okay, what do I need to do? Hey, send some proactive emails. I don't really need to worry about ... I basically went through my top 5, 6 issues and said, "If anything happens with these they need to be dealt with. Anything else, it might be expensive. It might be annoying, but I can manage it if that makes sense."
Chase: Oh, yeah, totally. He actually talks about that, Tim Ferriss, that is, in his book. The seminal book on taking vacation while still working, I think. Anyway, he talks a lot about that. About how with his assistants and other key people, we've actually talked about it when you mentioned certain things with regards to attorneys, but basically saying, look, if it's something that's going to cost $100 or less, $200 or less, $50 or less , like wherever you are budget wise, just do it. I don't want to hear about it. I actually had a boss, a mentor for a long time that was that way with me regarding different things that we were doing from marketing initiatives and other things like that.
As far as he was concerned, as long as it was doing what needed to get done to push a project forward or push the day forward or whatever the case is, he didn't want to hear about it. That's kind of similar to that, I would assume.
Robby: Oh, yeah. Completely. It just puts a few things on alert and you know if it blows up it will be mitigated because you've actually done a few things in advance, I think.
Chase: For sure. For sure. Systematizing and things like that was the name of the game for this one. Any similar to when you were down in ... It wasn't Panama. It was Costa Rica? Right?
Chase: Did you take a look of any real estate while you were out there?
Robby: Do you know I did look at some real estate while we were there not an as excuse to write off my trip which I probably should have done. I actually paid for this one. Yeah, we looked at some stuff. I was talking to the caretaker in the villa that we rented about how much the house would cost and construction cost and things like that and looked at some other stuff. Relative to what we paid a night for the house and knowing that when we checked in on Wednesday, checked out Sunday. They had other people checking in for another week right behind us. I don't know what the rest of the year looks like in St. Martin, but they are doing fairly good. If they can at least keep that level of occupancy for what they are charging. I'm sure they are doing okay.
Chase: I was going to say you are kind of coming into peak season now I think lately. There is a bit of a little bit of peak season that's coming here but definitely they are doing well. That's awesome.
Robby: Yeah. They are managing. I can tell you one other thing just because it was a group of guys and we rented the house. It was not like city center or right by the activities. I will tell you about the big spurge in my opinion from a trip like this, but it was an absolutely necessary one. Probably one of the coolest aspects of the trip is we had a driver almost 24 hours a day the entire time we were there that was essentially with us making sure everybody stayed out of trouble, that way no one was drinking and driving or getting into taxis and getting split up. It was probably one of the most none luxurious luxuries we've had because it was also cramming 11 guys into a van every time we were going to go somewhere. It was definitely a unique part of the trip for sure.
Chase: Yeah. That sounds like a highly underrated aspect of something that you could do with regards to vacationing. That sounds amazing.
Robby: Enough vacation I found out on none performing notes while I was out there. It's Monday, I need to start ... It's March too. For me it's like a buying month. We bought a bunch of stuff in January. February kind of got all the king's worked out, files transferred. We only had 2 mortgages that we had hiccups with in the transferring in February which is being resolved still and now it's time to go shopping.
Chase: With it being a shopping month or buying month, all that kind of stuff, we've got two things that wanted to discuss today. I feel they go hand in hand. Where did you want to tackle it first? We discussed a little bit about my question. You mentioned you definitely wanted to discuss a particular side of investing. Where would you like to start?
Robby: Where to start, where to start. Well, I would start with what we were talking about with the two parts of investor expectations. Then I think I know where you are going to lead me. One of them is things that we are always improving or trying to improve the business that we are doing and we've got a few investors that have reached out that are waiting for us to be able to find some deals to put together for them. They call and they want to put a deal together and I'm like, well, that's great. As someone calls we go through some stuff. Two aspects of that that I find kind of interesting or kind of challenging. It's an opportunity depending on how you look at it.
The first one being the realization that the way we structure our JV deals is that if the assets go sideways essentially we are going to buy them back. Which I'm not buying anything with an investor's money I'm not going to put my own money into. Which comes in a unique aspect because there is a ton of stuff there I just want to throw my money on. I want to make sure it's a good deal. I have a specific yield that I'm looking for for myself. Now, if my money is in a deal this is the yield that I need. Then if I'm doing a JV deal I look at the deal and the way we are going split returns and I go, "Hey, this is what I need to make off of the time and energy that's invested in acquiring this asset, working the asset out, maintaining all the financials, all the legal aspects of it and then giving the money back up and sending it out."
What's interesting with some of the investors is we have these phone calls and I ask the returns that they are looking for and a handful can give you an exact answer to say, "Hey, you know, I'm looking for returns between 10 and 14%." Last week I met with an investor and we were working on a much bigger deal. The deal that I presented to him was around a 15% cash on cash return sub one year. The response was it's not a good enough return. I'm like, "Well, okay." It went to the perspective of if you really think you should be getting more than a 15% return directly, that's our goal as a passive investor I think that is a pretty aggressive target. Now, not to say that when I'm looking at deals for myself they are not going to be in the high 20s to 30% returns so that I could give that return to my investor but the expectation I think is quite interesting.
When you hear some of our investors that have invested or looked at gold and made no money in the last year, will put the money in the stock market. The stress that they had during the first six weeks and it's filling up in that roller costar of recovering that the expectations that they also seem not investing is riskier than it truly is, which I still don't know if maybe in just haven't made a big enough mistake yet or I haven't bought that wrong note yet to see the high level of risk that I think people are placing on it simply because of the fact that we are buying none performing assets. I think with the discounts we buy them at they are very secure. I don't even know that the investment class justifies the return some investors expect in a passive perspective.
I think they are attributing a higher level of risk to the investment and they are requesting a correlating return for the risk that they perceive to be there, which I honestly don't think exists.
Chase: Yeah. You mentioned two aspects and I don't know if that other aspect is the question I was going to be reading or something else you want to talk about. I just had a thought and this might be totally off base. You were talking about how some people have perceived risk logical diversion because we are "Investing in none performing assets." Right?
Chase: It just struck me that if I'm a traditional real estate investor looking to say place some one or start doing some tanky rental stuff or to start doing some fix and flip stuff, whatever the case is. By large, obviously as it's already a tenky rental, have already done all the repairs, have already done all that stuff and have already placed a tenant and all those kinds of things, but you've put forth a ton of effort already, most of those are also technically none performing. ie they are not performing yet. If I'm seeking some JV dollars to start doing some fix and flips or whatever it's really not that different except I don't have as many extra strategies. There are a lot of other huddles and I'm buying usually a little bit more expensive than we are buying and some other things like that. That is something I've never actually thought of before.
Robby: I agree with the perspective. The only challenge I would say I give some consideration to the expectations with that is most people don't perceive a fix and flip to last 12 months.
Chase: You've got the time value of money aspect. They are turning their capital around faster. The other thing is how many TV shows do you see who have no investors? ABC hasn't called us yet but I'm still waiting. I'm holding out.
Robby: Fingers crossed. Fingers crossed. I think that's part of it. You see Sally and Jill are going to buy a fixer upper and they go out and they do their fixer upper and they are on Renovation Nightmares or whatever the TV show is where they can go do it. Where it's perceived as a lot easier to get in a car, go to home depo, buy the stuff you need to fix the house than it is to pick up a phone call, talk to a lawyer, review a title report, review a mortgage. Know what the a service is, board alone. That's different ... People have to study that a lot more in my opinion than it is to go out and you can hire the plumber, hire somebody else. We realized we teach people that.
Essentially we fix and flip notes from the perspective of I hire the attorney, I hire the service where I outsource all of it. I'm not really doing any of it except for one of the things I like to do is go see my properties which a lot of people don't do. It's a none issue. It's just an interesting thing, but the other part of it too is do they have the number they want? We've been working, doing some consulting and I see ROI calculators and I'm looking at the returns I'm like, "Okay, is that the return you want?" Well, I don't know what how much of a return should I get. That's not the question. What kind of return do you need or want on your money? What do you value your time at? Are you paying yourself $50 an hour because you want to make a 100,000? Or you are paying yourself $350 an hour because you want to make equivalent to 700,000 this year? Or 1000 an hour you want to make 2 million. Whatever your perspective is.
I think it's interesting to not go into it knowing that. I've got buddies of mine that do different aspects of real estate. One of them send me something the other day asking me if I wanted to fund a deal and I was like, "Well, yeah. Send me the numbers." I looked at it and it was like a twelve and half percent return and I'm like why would you pitch this to me? He was like, "What do you mean?" I was like, "We already know I make a significantly higher return than that. Why would I want a twelve and half percent return?" He was like, oh, I just thought it would be easy. I'm like, "Well, if somebody comes and offers me money at 6% tomorrow and I can just put it into your deal at twelve and half then that's a good deal but otherwise ...
However, the flip side is if you are an investor with $300,000 say in your bank account or your IRA and it's not doing anything and somebody can propose a deal that makes you 11% and you kind of look at it like it's not a good enough deal, it makes me wonder what your expectations really are if you don't even have a number picked out.
Chase: Or that you would lets say in that scenario you presented that 300,000 just sit as opposed to utilizing it per say.
Robby: Yeah. Not having it ... It's okay. Here is an interesting thing. Maybe it's a little too personal, but here is a great parallel. On my whiteboard I know from my last call my life coach says what do you want in an ideal partner? I told her it's like I need to take some time to think about this right now. Now is not the right time for me to be running around dating and I want to think about it and have an answer. Then when I have a better answer for what I want right now for where I'm at in life I go and get that. Through an investor they can call me and say, hey, we are looking for 10 to 12% returns. We would prefer single family homes but we understand you really like condos in Florida so if it's a condo in Florida, we are okay with that. We are okay with investments between 12 to 18 months and we don't want to keep rentals.
I had that call. Then there is, well, I don't know. We could do whatever. We could do this. That will be interesting. I'd like to see this and I need an 18% return. Okay, that's great. Would you like me to refer you to some other people? I don't know if you got it.
Chase: Right. Definitely. Sure. Okay. I guess it's definitely two sides. No question. I'm just trying to weigh more sense to that when it comes to investor expectations. For the listener that might be encountering this, is it as simple as just saying ... I guess it depends on where your business is. Right? But referring somebody out or just kind of continuing to call your business and continuing to work on attracting those people that were the first example. That type of thing.
Robby: Yeah. There are two ways to with that. I think I know part of the underlying question you are going to ask me next after this. As it relates what should the investor perspective be, it depends. Is it an investor that's just investing for themselves that's listening to our podcast? Or is it an investor that's listening to our podcast, investing for themselves but trying to call up outside capital? The guy that's trying to get outside capital needs to know without question what that is in my opinion. The guy that's doing it just for his own IRA, he is not going to go tell his buddies, he just wants to do it for fun for right now should also be able to sit down and say, hey, this is what I want. This is what I expect.
The difference there, what you and I were talking about before our call is I know what I want for my targeted returns and that's why I have a challenge sometimes finding a ton of inventory to put into JV deals because my expectations are considerably high because I know I'm the one doing the labor and I expect to be paid handsomely for my time. If it's my money going into the deal I want a very substantial return. Well, if it's somebody else's money going into the deal I need to be paid extraordinarily well for my time and energy. I also have to be able to provide a return on the capital that meets their guidelines or their expectations.
However, if I'm new to the Note Investing, I'm only investing for myself, I would say I think there is a lot more deals out there that could fit into that appropriate targeted range and you are simply not necessarily paying yourself as much for your time and effort to go into the deal because it's also not meant to be your full time job. This is your side hobby, the extra thing you have going on to make sure you are helping with the financial stability and growth of your current income, your future income and retirement income and managing it that way. I think there are more deals out there they could find. It's like anything else. There is a reason the stores have clothes in every size and every color. Everybody wants something different. We are not all walking around in uniforms.
Where we were talking about earlier with this, where I was going is I think there are a lot of deals out there that I don't think are good for me because the returns are high enough, but for other people that are going to do it themselves I think the return could be great. I don't know too many investors that are regularly coming across stuff right now, they put in their portfolio after having fixed and flipped or rehabbed the notes so to speak and making 13, 14% return and just pocketing their IRA. You are talking about doubling your money in five and half years, six years. Six years, I guess is 12% with low 72. It's 72 or 73. Probably 72. Right?
Robby: Yeah. I don't know why I was thinking 73. Yeah, okay. Six years you are doubling your money. I think it's probably safe that you can find a lot more of those out there in the note space and you can find the ones that are going to yield 30%.
Chase: Right. Right. That was the genesis of the question I was asking based around the idea that we are picking up new listeners every week - by the way if you are a new listener, we appreciate you are listening to the show. Yeah, we have a lot of new listeners coming into the show and some of them are going to be self-funded like you were talking about. Then we were talking about having the money at the beginning of the show that this is a buying month, looking at X, Y, Z deals and looking at over the past couple of months some of the inventory we've seen isn't stuff we swung at for this reason or that reason or this reason. Basically looking at some of the new people coming into the space and going, well, if we are not taking a swing at it doesn't mean they can't. It's either comfortability in that state or the returns they are looking at.
Because for you looking at JV deal something returning 20% isn't going to work. That's just not going to ... Unless you are JV one six or something, five or something crazy it's just not going to work but for someone who is self funded or someone who is only looking for a deal for themselves or whatever the case may be, 20 might be fantastic for what it is that they are looking to do as a first deal or whatever the case may be. That was really the genesis of the question. It was looking at we've got a lot of new people coming in to the space and from an inventory perspective what might they have available to them? I know that there is a bunch of stuff out there that we are not swinging at for a lot of different reasons, but I know the questions are also going to start coming. I just wanted to basically address it before it even happened so we can just link people to the show basically.
Robby: Yeah. Completely. You just finished reading a book too? Speaking of Converting People.
Chase: Speaking of Converting People. Yeah. We did a slight teaser a couple of weeks ago about a new book that's out. I am positive it is going to be a best seller. It's called the Conversion Code. It's by a friend of mine named Chris Smith. It actually drops today while we are recording this, March 7th. We will link up in the show notes to the Amazon page and all that kind of stuff if you want to pick it up. It is fantastic. It is fantastic. It touches on converting leads not only from the marketing side about how to drive leads in both in quantity and quality. Then it also talks way more so about the sale side of it. About actually once you heard that person on the phone, once you have that internet lead, once you are talking with the person face to face, whatever the case may be, actually getting them to move forward with whatever your product is.
In our case for people that are looking for JV capital or things like that I think that this is where this type of book is going to be just an amazing tool to kind of have available to you. He talks about a lot of different stuff, everything from the marketers creed, the scheduling creed, the closers creed where he has certain phrases like "Yes, it's not accident." and things like that. If you are out there struggling to get people to actually commit JV dollars to you, this is the book for you. If you are struggling to actually get people to sit down across the table from or call you or clicks through your website or whatever the case is, this is also the book for you. It's just freaking fantastic.
It covers a lot of the stuff like what you say, how you say and when you say it and why that matters literally giving scripts and a lot of the stuff is just really fantastic. From a marketing perspective when he talks about the internet, he talks about how Facebook is now the homepage of the internet for pretty much everyone. Which is completely accurate and a drum that I've been beating four years now. It talks about how to create videos. How to create calls of action, how to create the perfect blog post, how to set up your website, landing pages, how to handle leads that come in through phone calls. The little script that you need to use to be able to convert someone and actually close them with whatever that means to you and your business. It's fantastic.
Towards the end he actually talks a lot about ... There is an interesting phrase. I want to pull up the quote that he said. It's a mentor I believe of his, gave him. Let me see if I can find it here. All right. Here we go. The quote is from one of his first sales coaches. Basically the quote is, "There is only enough room on my spreadsheet at the end of each month for results not excuses intentionally." He talks a lot about the metrics that matter whether it's Facebook ads, website, leads, all these kinds of things but really the end result is only one result. That is, is your business growing or is it not? All of these other vanity metrics, they matter or don't at all and if they do matter here is how you should be measuring them and things like that.
It's a true playbook. It is not a ... I'm trying to think of a ... Grant Cardone actually likes to say, "I do doing better than anyone else." This book is about doing. It isn't about reading about how Facebook can help you grow your business or about videos or about how Atlantic page. It's not about that. It's literally execution. Start to finish. Philosophy is in there sporadically just to help you understand why you are executing against these particular principles, but really it is 100% a play book. It is Xs and Os unlike most book you are going to find out there, period, flat out.
A lot of the stuff that's in there from a Facebook ad perspective is coming from someone who on a month to month basis such as Chris Smith and his company are managing millions of dollars in Facebook ads. This isn't somebody who is chucking 100 bucks a month and hoping to convert here or just maybe testing there. Literally millions of dollars a month roll through their business into Facebook ads and he provides to you the playbook for setting up your ads to perform just as well.
It's tremendous. It's heart fully fantastic. Like I said, we will link it up in the shown ads or you can just go Google it whatever it's called, the Conversion Code. We also have a bunch of links to like Chris' twitter and Facebook and stuff like that in case you guys have some questions to go directly to the author. I highly recommend it. Like I mentioned for you Robby, I think a portion of the book, a third of the book is going to be really great for you as a refresher. I think that you are an awesome closer as it were. Then the rest of the book will just be the other things that you want me to implement for the show or the business whatever the case will be which is fine.
I think there is literally something in here for everybody and I also think that for a lot of people the whole damn book is what you need. It's really really great.
Robby: Interesting. Well, I'm looking forward to getting that in the mail. What else do we got? Oh, a lot of full closure sale today in south Carolina.
Chase: This was the deficiency judgement sale that was postponed because of that?
Robby: No. This is one where South Caroline if you want to have a deficiency judgement you have to have two sales.
Robby: I figured one on the hand or two in the bush. I didn't want to bother with deficiency on this one. We have the sale today. I'm hopeful to have an email when I get back from lunch from the attorney with what happened. I am suspecting it came back as an REO. We did not place our bid too high but we were quite aggressive because we believe the home is in really good shape after the property preservation company went out there to do the organization and got us our internal pictures. I think 7, $8,000 clean it up, painting a couple rooms put some new appliances in there we should be able to get much closer to a retail value. We were aggressive with the four closure pricing.
Chase: For those that are keeping a spreadsheet, what was the timeline in--
Chase: In South Carolina in terms of the full closure itself? We talk about timelines.
Robby: I can't give you one on this because we picked it up and it already had ... Whoever was selling it I don't know if they didn't do the due diligence or whoever else was buying it probably hadn't neither. There were some other people looking at the asset when picked it up. There already been a judgement granted so we just had to go in and reconfirm the judgement.
Chase: Oh! Well, there you go.
Robby: I essentially just bought the confirmed judgement. I can actually tell you this is the great part about this one. Lets look at some numbers real quick. It will just take me one second to pull up note works so plug from Mark Gold who is making movies now by the way if you are watching his Facebook.
Chase: If you are watching his Facebook he is making movies. That's right.
Robby: I'm really not sure about what the hell he is doing, but I will have to check it out. Okay, here we go. We picked this note up. Our acquisition date was 10, 12, 15. It took a little while to get some of the paper works. Our assignments hadn't gone out for recording until December. We set our bid at $100,000. Here goes what we are talking about but we are also talking about time value money. Lets say if it sold at 100K it's a 35.7% cash on cash return for the IRA that invested in the deal. He set numbers.
Chase: Probably should have started the show with that.
Robby: Yeah. Lets see. Our financials on it. We picked the mortgage up. I have not logged on my direct custom but we picked the mortgage up for low 50s. The zestimate, which we all know about the zestimate--
Chase: I feel like we need to stop saying that. I feel like if we all know then we all know. I guess you just have to say it so you don't sound like uneducated. Is that what it is?
Robby: Well, this is what I learned. I've got my BPO value from when we purchased it. Anyway, right in here I'm in my screen. I've got BPO value of $90,000 on 10, 5, 2, 15. That wasn't a BPO that we did or was given to us, that was my extremely conservative valuation on it. That was what we ran our numbers at essentially saying we would liquidate the property at 85% of 90,000 and would give us the yield that we wanted. Which is why we put the listing and we think it's worth obviously a little more. We put the full closure sale price at 100. The zestimate on here is 135 and I'm ready to reconfirm that now with a local broker I've been talking to. It will be interesting.
I don't think that that zestimate is too far off. I think it might be maybe somewhere in a low 120s but for the extra 2 grant and the fact we only had low 50s invested, we figured it was worth going after it a little more aggressively and taking it back as already ongoing from a short sale perspective.
Chase: For sure. For sure. Yeah. That sounds interesting. Okay. From a deal perspective South Carolina ... Yeah. I guess it's hard to ask. Right? Because you already have the judgement in there. It's not really much to go up in terms of is South Carolina somewhere you will go again if there is a judgement early in the file definitely. It's on your list of places to invest. Why?
Robby: Well, actually this was ... It's in Lancaster, South Carolina. It's about a 45-minute drive south of Charlotte and I can do a direct flight on America to Charlotte very inexpensively. I have a couple of friends in Charlotte and it's close enough to me on the east side of town or east coast of the United States. Yeah, economically speaking I think there are aspects in larger cities that are well supported from an economic base and at are least going to grow at a normal clip. There are good places to check out. There are some good colleges there. If you can find some stuff around college towns.
Chase: Well, I know that South Carolina is on a lot of people's list. I just didn't know what in this case if it was on your list and say we are looking specifically there, it sounds like you kind of came into a really great deal there regardless.
Robby: Yeah. As well and also these little ones ... It ends up on your list, you run the numbers and you look at it., you stop looking at other stuff and you make sure you buy it. I think that's one of the other unique things. We could save that for another time, but I was talking with somebody else the other day about going through a tape we called a hundred assets. They are doing the Google search in the Zillow, in Trulia and Realtytrac and documenting stuff about each one of these notes all the way through and then going back. Going, okay, which ones were good? Which one were low crime? Which ones met my metrics?
As opposed to, not that I think that's a wrong way to do it, but I found that they are finding less good deals or they are concentration on less good deals thinking they need to find that one diamond in the ruff as opposed to when they find a deal they think is good just stop, start evaluating it as though you are going to buy it. I think that--
Chase: Oh, that's interesting.
Robby: That's the paralysis or the analysis ... Analysis paralysis that people get and maybe that will be an interesting thing. I like to talk to get some emails when somebody has got some other take-backs on that about going through tapes and leaving. Because for me when I find what I really like I stop. I go dig into it, get enough numbers to the point where I ... When I say I'm going to dig into it we are talking ten minutes max. I'm not going to spend much more time than that. To go, "Hey, I'm I willing to put a bid in this or not?" If I am great. I'm through with my ROY calculator I'm going to change my offer price to get to my returns that I need based off of what I have known about my understanding of the value today and my understanding of taxes today.
Then I'm going to start submitting offers based off that as soon as I can because you got to forget this is a race to the finish. You are not the only one looking at these tapes most of the time unless you are lucky enough to have the phone call you directly and say, "Hey, we brought a bunch of stuff last month. Can you take a look at this for the next three days? If you want it, great. If not, just let me know."
Chase: Is that a grass is greener potential? I know it's analysis by paralysis, I guess I wouldn't have even thought that that would be an issue someone would come across.
Robby: I think its just not ... There is too much analysis in it. Not say it's a different form of not taking action by continuing to just go look at other ones, it's like I don't want to commit to anything yet. It gives some excuse also to not commit to anything.
Chase: Wow! That's fascinating. Yeah. I would like to get some I guess listeners' feedback on that. Is that something that either you struggled with and you've overcome, that you struggle with and you just now realized or something like that. That's pretty fascinating--
Robby: You are saying from other people, not for me.
Chase: Yeah. Yeah. I'm saying listener's feedback. If you are listening to the show--
Robby: Oh! I though you were asking the same. I was like, "No."
Chase: No. No. I think it's interesting in so far as also in knowing what you know now in terms of how many bids you have to put in to actually get an asset and other things like that why not just stopping, finish whatever the initial due diligence should be on a particular property getting that ready for an offer submission and then maybe going back to the tape or whatever the case is. If you stopped, submitted and then came back you still could not end up with the asset but it's a race to the finish and often times first one there gets it by a proxy of busyness of people's lives or whatever the case may be. I think that's interesting. Yeah. I would love some listener feedback on that for sure. Fantastic.
Well, guys thank you so much for listening to episode 66. If you got some value please head over to iTunes, give us a rating and a review if you have not already. Also be sure to check out the show notes this week and every week but specifically this week for all the links that we've talked about with regards to books and other things that we will be covering. As always you should tell five other people you know about the NoteMBA podcast. We will catch you guys next week.
Robby: Have a good one guys. Take it easy.
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