May 1, 2024 • 28 mins
Embark on a transformative journey with me, Justin Bogard, as I pull back the curtain on building wealth through the mesmerizing world of real estate note investing. Imagine the possibilities as I share the lessons and strategies that have propelled my career, and how you too can wield the power of 'the bank' to create a stream of passive income. Relive the nostalgic moments from the early days of my podcasting adventures with Elizabeth Sickles, and get a front-row seat to the evolution of our show - from the first casual conversations to the dynamic, educational powerhouse it has become.
Navigating the waters of real estate notes can be complex, but I'm here to guide you through the storm, answering those burning questions that keep investors up at night. We'll dissect the common red flags and provide a roadmap for beginners to follow, steering clear of pitfalls and finding the right mentor to illuminate the path to success. Whether you're starting with a shoestring budget or looking to elevate your existing portfolio, this episode is your compass to the treasures that lie in note investing.
Lastly, let's get real about the risks and rewards that come with being your own boss in the real estate sphere. With a focus on striking the perfect balance within your investments, I emphasize the critical nature of risk management and the savvy art of table funding. From the influence of creative financing maestros like Eddie Speed to the practical tips for budding investors, this chapter is the treasury of secrets you need for a flourishing financial future in real estate.
Resources and links discussed:
- Videocast on our YouTube Channel
- ANB Funds Website - https://anbfunds.com
About the Host:
Justin Bogard – Note Investor specializing in performing Residential Real Estate Debt. He finds deals and acquires them for his own portfolio as well as educates investors while walking them through the process of owning a Real Estate Note!
Connect with the Host:
Facebook - bethebank
Twitter - bethebank1
Instagram - bethebankpodcast
American Note Buyers - https://anbfunds.com/
Monthly Broadcast - https://youtube.com/playlist?list=PLzc944w1xydt5aLDrrEPHJhdJeDkBjjD4
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Narrator (00:19):
Thank you.
Real estate to create realwealth and passive income for
you and your family.
He'll share stories of realestate investments done right,
walk you through the process ofowning a real estate note and,
most importantly, educate you soyou can be the bank.
This is Be the Bank brought toyou by American Notebuyers.
Now here's your host, justinBogard.
Justin Bogard (00:46):
Here's your host, justin Bogard.
Hi there, listener, how are you?
If you'd like to check out thevideo stream of this Season 6,
episode 9 on our YouTube channel, you can certainly do that.
You can just go to our YouTubechannel, which is American
Notebuyers, and you can searchus up on Google or whatever
searching platform that you use.
That'd be awesome.
Today I have no guests.
(01:07):
Today it's just me.
You have me all to yourself.
Today I have your undividedattention, because if you're
listening to this, you probablyhad nothing better to do.
Anyways, right, I thought Iwould answer some questions,
some common questions that I seein the note industry today, and
I also kind of wanted to giveyou guys a kind of a background
(01:28):
in history throughout my kind ofpodcast journey here.
So let's just get into thatfirst.
And today I am on season six.
Like I mentioned, this isepisode number nine of our
podcast.
I go by seasons because I justkeep track of how many years
I've been doing this.
So a lot of people that dopodcasts, they just count from
episode one all the way, episodeyou know, to 500 or whatnot.
(01:50):
They keep track of it that way.
I just I don't know, that'sjust me, I guess I just wanted
to keep track of it throughseasons, and so I've obviously
been doing this for about sixyears now.
And it started back in 2018 witha really good friend of mine.
Her name is Elizabeth Sicklesand her nickname is Super E,
which she prefers to be calledthat, and we had a podcast
(02:12):
called the Super E&J Podcast.
So Elizabeth came into realestate investing from about
2016,.
I think she lived up inMichigan and she worked for a um
, basically uh, like the phonefor a Ford motor company up
there I think it was Ford and sothen she was in that industry
(02:33):
for a long time and then shejust got sick of it and she
wanted to learn real estate anddo stuff.
So then she came down here andmoved to Indy and then she just
started investing in real estatewith her own money and then she
started learning about stuffand we became friends because I
went to a women's only subgroupof our local Rio club and I was
giving kind of a talk about whatI do and investing and stuff.
This was definitely early 2016,2017 timeframe, and so we just
(02:58):
became friends.
After that she kind of wasasking me more questions offline
and then we just kind of keptup with each other and I was
following her and what she didand she really got into the
short-term Airbnb type of stuffand she'd become an expert here
locally because no one elsereally was an expert here in
Indy on this stuff and so she isa very intelligent person and
so that's kind of how we startedthis podcast and we would have
(03:20):
conversations and we just bothsaid, man, it'd be interesting
for somebody to hear theseconversations if they were a fly
on the wall, and that's kind ofhow things stuck and went into
the podcasting.
I always kind of wanted to dosome sort of podcast or some
sort of short form audio thinglike that, and so that's kind of
how we got into it.
So I had to learn a lot aboutdoing a podcast and it's
(03:41):
interesting because you thinkyou know how to do it, just
watching and listening to otherpeople that have theirs, and
it's just uh, there's a wholequite a bit to it than than you
actually think.
So I had worked at a shared uhoffice space here in the Fishers
Indiana area and with thisshared office space there was a
lot of other people that workthere from different companies,
(04:03):
different business verticals andone particular company that was
close to where I typically sitat this shared office space and
this was before.
Covid was a company thatbasically runs shows for
podcasts and it's usually biggerpodcasts.
So I got to kind of befriendingher, the owner of the company,
and just explaining to her whatI do and stuff.
(04:24):
She's like oh yeah, if you needsome help, just let me know.
I'm like, well, you know, wedon't have a lot of money to put
into this and you know, if whatI really need is just get some
basic education on kind of whatto do and stuff, and so she put
together a little package forelizabeth and I and kind of set
us up and then, um, when she waslooking at what we did, she
kind of got a chuckle out of itbecause she's like oh, that,
(04:44):
that's, that's not a podcast.
So I got a quick definition onwhat a podcast is versus
something else.
So what we were doing was justbasically doing like zoom
recordings of what we were doing, talking back and forth, and
didn't really have a format,didn't really have a structure.
It was just her and I just kindof bantering back and forth.
And then so after we took thislady's training and I can't
(05:06):
remember her name and hercompany and I wish I'd.
I want to give her a plugbecause she was very helpful.
She taught us how to do thewhole podcast routine and how to
set things up for interviewsand how to do show notes and how
to, you know, grab people forinterviews and, you know, get
them to want to come on the showand stuff like that.
And then shortly after thatpilot season, elizabeth and I
(05:27):
just changed the show to the ToWealth Show.
That's when we got reallycreative with it and just ran it
like we were supposed to, andso I think we were just naming
the show just To Wealth ingeneral and we were talking
mainly about real estateinvesting and we would dive into
notes and dive into other sortof real estate stuff.
And so we did that for anothercouple of seasons and then I
(05:48):
changed the iteration of it towhat it is now called Be the
Bank Podcast, and I changed thatbecause Elizabeth kind of
reached the point in her careerto where she was just really
busy.
She had bought a cleaningcompany, she was running an
Airbnb property managementbusiness, she had her own
short-term and long-term rentalsand stuff.
So she just became overwhelmedwith stuff.
She actually had her owneducational course as well and
(06:11):
she was really successful withthat.
So this was kind of like, youknow, an off project for her.
This wasn't by any means amoney generator for either one
of us.
I just like to do it and she'dlike to do it as well, but she
just got too busy.
So then, after she decided toleave the show, I just kind of
converted this into justprimarily a note investing type
of podcast, and that's kind ofwhere it's landed ever since.
So my business partner, richardThornton, and I just kind of
(06:33):
took it over and just ran withit and he was kind of the guy on
the show with me and we wouldinterview people every now and
then, but mainly it was just himand I talking about different
things that we see that go on.
We try to keep it relevant tothe current times.
When we were doing the podcastepisodes and we would, you know,
if we'd hear like a newsarticle or something going on in
(06:54):
the market, or maybe it was aninvestment that him and I did
separately or together that wewant to talk about.
Be like man, this was kind ofinteresting, or I fumbled my way
through this or I found areally cool little shortcut and
then we'd also bring thebusiness aspect to it and try to
educate our audience on that.
So that's kind of where it istoday.
Richard has since retired, atthe end of season five last year
(07:14):
, and so he is kind of moving onto what he likes to do now.
A little fun fact Richard isactually taking some cooking
classes right now.
So he is keeping himself quitebusy with his investments and
learning this cooking classstuff.
So I get a chuckle out of itbecause I just don't see him
cooking Not that he can't cookor anything, and trying not to
be judgmental, but it's justfunny.
(07:35):
So Richard and I still stayconnected.
He's a great friend.
He's been a great mentor for meon things in real estate that I
had never done before.
He has definitely a wealth ofexperience, you know, things in
real estate that I had neverdone before.
He has, you know, definitely awealth of experience behind him
on building up very largebusinesses and doing very
creative deals out in Californiaand very large, you know, in
dollar amount deals that he didin California.
(07:57):
So now this Be the Bank podcastis now focused on more interview
type stuff and I reallywouldn't say interview, it's
more of.
You know, I have somebody tohave a conversation or
discussion with on a certaintopic, or maybe they are an
expert in certain certain thingabout real estate notes, and so
I try to bring people on thatare more relevant in the
(08:19):
business, and obviously they'reyou know, they're primarily my
friends and also people that Irespect in the business as well.
So you'll see more of thoseinterviews slash discussions in
the future, but today I justkind of wanted to share with you
guys, you know, kind of myadventure and all this.
It's been really fun.
There's, there's, obviously,technical aspects to it.
There's, you know, we havesomebody that does the
(08:40):
post-production of this.
As far as leveling out ouraudio channels, we have guests
on that may not have, you know,a really nice microphone or a
good setup.
You know, like I try to havenice equipment so that things
sound good and things look goodas well.
We run this on a platform calledStreamYard in that way that we
can record this or we canactually live stream this stuff
(09:00):
too, which is what we do for ourmonthly broadcast, and so it's
a cool little little thing wegot to.
We got to pay like an annualfee.
I want to say it's like three,four $500 a year for it to have
it.
But it's really slick.
You could upload graphics to it, which, if you're on our
YouTube channel right now andyou look at the Be the Bank
playlist, you'll see thegraphics that I have in the
background and I usually haveanimations that run across or I
(09:22):
have little video transitionsthat go from you know 10 seconds
, 7 seconds to a minute long,depending on what we need to do
for stuff.
So that stuff's kind of cool.
We don't have to put a lot ofmoney into this.
Really it's kind of thepost-production and the time
that you put into it.
So that's kind of nice withthis form that we do.
So there you have it.
So that's the secret to thepodcast here.
(09:44):
We do try to keep it within 20to 30 minutes.
I just figure that's a car ridefor somebody and people like to
listen to the stuff that youknow 1.5 or two X anyways, just
to speed it up on some of thepodcast episodes that get longer
and stuff.
And then you know people youknow, like myself, sometimes try
to talk a lot as well, and sothat can get kind of irritating
(10:05):
to the listener sometimes, butit's fun.
Anyways, you guys can shareyour comments about the
experience or how long you'vebeen following me and what I've
done with this iteration on allthese podcasts and stuff, and
I'd just love to hear back fromyou.
Last time I checked, I think Ihad probably 10 or 12,000
downloads by now on just thepodcast part of this, which was
pretty cool to see.
(10:25):
I'm glad to see people are outthere downloading it and
hopefully getting education fromit as well.
So, moving on, I also said Iwould talk about some Q&A and
more or less some new questionsthat I see, or common questions
I guess that I see often in thenote business.
I'm a part of many differentFacebook groups that I've got
asked to be in or I tried to geta part of.
(10:48):
I do see a lot of feeds comethrough.
It's hard to keep up with allof it, but I do see a common
theme with people trying to getinto this space in general, and
so let me share some of the onesthat I see and maybe answer
those questions.
If you're newer listener todayto this part of real estate note
investing, and maybe I can helpyou answer some of these.
So obviously, one of the firstquestions that I see commonly or
(11:14):
get asked is where do I startwith note investing?
So this is a great question andthe first thing that I always
tell someone is you really justneed to find a mentor, and that
mentor should be somebody thatis currently doing the business
today.
That mentor should be somebodythat is currently doing the
(11:35):
business today.
In all of note investing maybenot just one aspect of it Make
sure they have a long tenure inthe business.
Make sure that they are wellrespected in the business.
So you should actually do yourdue diligence on that mentor as
well, to see if they have anylawsuits against them.
Believe me, these things arereal and you want to make sure
(11:55):
that they are respected by otherpeers.
So talk to other people that youknow, that are in the business,
that you trust, and be like hey, who do you know, who are
people that stand out to youthat you feel like are extremely
knowledgeable based on yourexperience and stuff, and you
can find a good mentor.
I have a mentor and I'llmention who that is later on in
the show today their trackrecord.
(12:15):
You want to make sure they havea mentor and I'll mention who
that is later on in the showtoday their track record.
You want to make sure they havea good track record of doing
deals and maybe you want to talkto people that do deals with
that person before they becomeyour mentor, because you just
you honestly want to find just agood, good person, a good
natured person that's not goingto you know, that doesn't want
to screw anybody over, thattries to make a fair deal, that
does things honestly and theyand they abide by the rules and
(12:37):
regulations that we all have tofollow with the state and
federal mandates.
So how do I get in the businesswithout any money?
So this is another reallycommon one.
As you can imagine, a lot of newpeople get into this business
and they don't have a bigbankroll.
In fact, probably a very smallpercentage of people get into
(12:58):
this space actually have a largebankroll, and I'm talking about
, you know, half million to amillion plus in their bank,
whether it's retirement orwhether it's cash because they
sold a business.
You're not going to find thosepeople too often.
They're typically prettysophisticated if they have that
big of a bankroll to begin with.
So they might not need some ofthis more basic level of
(13:19):
learning how to invest and stuff.
But when you don't have anymoney, you really can't offer
anything to anyone except ahustle.
So there's three things that mymentor taught me.
And you got to find somebodythat has the experience.
You got to find somebody thathas the money.
And you got to find somebodythat has the experience.
You got to find somebody thathas the money.
And you got to have somebodythat has the hustle.
And you, as the person involvedin any part of a transaction,
(13:41):
you want to have at least one ofthose characteristics so you
can help add value to thetransaction.
And so typically, what peopledo just in real estate in
general, they become awholesaler or what they call a
bird dog, someone that just sayshey, there's this deal here.
I don't know what to do with itbecause I'm inexperienced, but
I want to put it in front of youand I'd like to make a fee for
it.
And oh, by the way, I'd like tolearn along the way, and so
(14:02):
that's a good thing to do.
So, if you don't have any moneyin this business, first of all,
don't quit your day job.
That's number one.
You want to make sure you havesome money coming in from like a
W-2 and stuff like that andthen do this on the side until
you can build up enough moneyreally to kind of replace your
job and do this full time.
When I did this, I was marriedat the time and my wife was
(14:27):
making enough income to supportus and our kids to where I could
do this and take a plunge.
And I got into real estate andkind of learned all this stuff
and eventually got into notesshortly after that.
So don't quit your day job.
You definitely want to research,educate yourself online.
There's tons of free stuff outthere.
You do want to be mindful ofwho you're learning from.
I wouldn't learn from Facebookgroups.
(14:49):
I wouldn't go out there and dothat.
I would learn, like,specifically from people.
That's why I say you shouldreally do research about this
topic in general, just to get anidea of what it is, and note
investing and buying and sellingloans and creating loans and
then find that mentor after that.
So that's how you do it withoutany money.
You can do deals without anymoney and make a good amount of
(15:10):
money.
It's typically called likebrokering or flipping a loan.
That's where you find a dealand you're you're turning it
over to someone else that hasmoney and looking for a deal, or
somebody that's you know hasyou know has money and looking
for a deal.
You're kind of doing one or theother with people and you're
trying to make a fee in between.
That's called brokering deal.
(15:31):
Which brings me up to anotherpoint, is that a common question
I get asked is if you have tohave a license to do this stuff,
and you really don't.
So when you sell real property,you have to have a real estate
broker's license Right, thatmakes sense.
But notes or loans areconsidered personal property and
so you don't need like aspecial license for that to be
able to sell a loan that youdon't own to somebody else and
(15:54):
be kind of a broker in between.
So should I invest in aperforming or non-performing
loan is a common question whensomeone first gets into the
business, and that question isreally up to the investor.
And really, what is their goalor what is your goal in this?
Do you just want to makepassive income, you want to be
kind of active in it but justmainly make passive income, or
(16:18):
do you want to take more risksand you want to have a longer
timeline to get paid and donon-performing.
Non-performing can become afull-time job, especially if you
have several of them going offat the same time.
Keep in mind on anon-performing loan, you don't
get any cashflow.
That's why it's non-performing.
You'll get any cash flow untilyou figure out the resolution,
whether that's working with theborrower, whether it's getting
(16:39):
the property back and resellingit or hopefully not having to go
through foreclosure.
It takes a little bit longer, alittle more time and money into
that, and so those are reallythe three exits for it.
Within those exits there aremultiple facets you can run down
that I talked about, but mainlynon-performing.
It's not cash flowing but youcould have potential to get
larger payday.
Believe me, I've hadnon-performing go wrong and I've
(17:01):
not made money.
I've actually lost money andstuff before.
To be truthful, you just haveto be very careful with your
diligence.
So I always tell people juststart off with performing.
If you don't want to invest alot, you can find loans out
there.
You know, as small as like 10,15, 20,000.
And you can spend up to 100,200, half million dollars on a
loan pretty easily if you wantto.
(17:21):
No-transcript.
So that's kind of like thebasic Q&A or the basic questions
(17:45):
that I see that get asked verycommonly, so hopefully that
helps you out.
Another thing I want to talkabout is warning signs out.
The other thing I want to talkabout is warning signs, and so
those of you that are in thebusiness and you are not what I
consider an amateur noteinvestor, you're more of a
seasoned investor, you'restarting to become a seasoned
investor, and so these are thekind of the things that I've
(18:06):
learned along the way, and noparticular order here.
I just kind of wrote somethings down on my little sheet
over here that I'm looking at,and slick salespeople will push
you into deals that you normallywouldn't do, and so you would
just want to be mindful ofsomeone that's trying to, you
know, put that information infront of you and make everything
(18:28):
sound like uh, it's great, it'swonderful, it's amazing, it's
awesome, you should definitelydo this deal.
Uh, maybe you should ask themwhy has no one else bought this
deal?
If it's so awesome and soamazing, don't feel pressured
into purchasing something withyour own money that you normally
wouldn't buy.
And it's kind of outside thescope of what you do when you
want to do those types ofinvestments when it's outside
(18:49):
the scope of what you do.
You definitely want to havesome more seasoning underneath
you because you can also learnfrom other people that do those
types of deals and ask themquestions.
Say, hey, would you help mewith the due diligence on this?
Like I've never done a secondlien non-performing mortgage
before, can you kind of help mewith this part of it?
You know I understand a firstlien non-performing but the
(19:11):
second lien, you know I haven'tdone that before.
So don't be afraid to askquestions to other people in the
business that you know, thatyou know like and trust that can
help you with that sort ofthing.
No-transcript.
(19:31):
You also shouldn't keep yourmoney on the sidelines forever
waiting for that perfect deal,because that money is just going
to stay on the sidelines andyou're probably never going to
fund a deal.
You want to have some sort ofwhat we call a buy box.
You want to understand yourparameters that you're trying to
reach and make sure they'rereasonable parameters.
Don't be like I'm only gettinga certain yield, because the
yield investors are the onesthat don't make good decisions.
(19:54):
And I say that becauselogically you think okay, I just
want to get an X amount ofreturn for my portfolio.
Yeah, I guess that makes sensemathematically.
But there's a whole other thingto the business called risk, and
risk is a major part of thedecision.
And sometimes I buy loans thatare single digit returns, but
(20:14):
they are really really low riskdeals and so in my portfolio I
have very low risk deals.
I have very high risk deals andI got deals that are kind of in
the middle and kind of ondifferent sides of that spectrum
as well, because I have ablended portfolio like that and
that's how I keep things going,keep things moving.
Now that's for me personally,for the fund that I manage, for
(20:36):
our investors.
I don't go to that extreme ofhigh risk deals.
I have very low risk deals andI have moderate risk deals and
that's where we stay with ourfund.
I keep it performing.
Right now we don't have anynon-performing loans.
We have some loans that youknow a little bit of late payers
and they might be behind 30 or60 days, maybe one or two out of
15.
But you know it's a very strongportfolio.
(20:59):
So that's how I handle that.
So I don't tell people youshould focus on a yield.
I would say what are yourparameters as far as like what
type of risk are you taking onthese deals?
And I would keep it to that.
You can have somebody help youwith your parameters as well.
Investors out there and thereare a lot of them right now,
(21:20):
especially on Facebook they'relooking for note buyers like me
and you, if you're listening inyour note buyer that want to
table fund deals.
So what they're trying to donow is they realize that the
banks are not lending as well asthey have been or as freely as
they have been, and a lot ofpeople are not fitting the
bank's lending box, and so theironly other option to get
(21:42):
property is to have the owner ofthat property sell it to them
and carry back financing withthem.
So we call this owner financingor seller financing.
So you'll find these realestate investors whether they're
wholesalers or fix and flippersand they get these deals under
contract and they find a buyer,and then they create a note and
they want to sell that note andthey want to sell it for a
(22:03):
hundred cents on the dollar.
They don't understand what wedo, they don't understand our
business and they don'tunderstand creative financing
and seller financing to theextent that we do they just they
think it's simple and theythink it's basic and they think
that there's no need for, youknow, education on that, and so
they make a lot of errors.
They also sell these propertieserroneously at a lot higher
(22:28):
value than what they're actuallyworth.
So if you are in a position towhere you're looking to table
fund some deals caution flag,warning sign, right you want to
make sure that you do duediligence on that investor and
you want to make sure you reallyunderstand and scrutinize that
deal so that it's a good deal.
We do table fund deals andthere are good deals out there
(22:48):
and there are good operators outthere.
I'm just telling you thewarning sign comes up that you
know more than likely they'renot experienced in doing this
and it's very less likely thatthey are experienced in doing
this.
So what you're looking for islarge down payments, and I'm
talking about 25 plus percentdown payments.
You're talking about reallygood credit scores because
(23:09):
you're buying into somethingthat's not seasoned and you want
to make sure the property valueis at sales price or higher.
That's a good level that youneed to be at as far as your buy
box on table funding deals.
And then you want to make sureeverything goes through a title
company so that you have all theproper paperwork, you have all
(23:30):
the proper policies in place andinsurance policies and stuff
like that.
If you need help with that,obviously you reach out to me.
Info at ambfundscom Glad tohelp you with it.
I may be the potential buyer orpartner in that loan that
you're looking at anyways, butanyways, if you see someone
asking for the table fund dealsand they act like it's all great
, wonderful and amazing, I'mputting my radar up and saying
(23:56):
they probably aren't anexperienced operator.
If they're advertising indifferent Facebook groups the
ones that are experiencedoperators they already know the
people in the business andthey're already got
conversations going with me orother hedge fund managers out
there that they know that buythese loans and know what the
heck they're doing.
So let's be careful of that.
Along those lines, everybodythinks that they are experienced
(24:17):
and an expert in creativefinancing and seller financing.
Until they actually learn fromthe legends in this space.
Okay, my mentor is Eddie Speedwith NoteSchool, the country
right now that have 40 yearsexperience and 50,000 deals
under their belts, whether it'sbuying portfolios, whether it's
(24:42):
creating loans, whether it'sbuying and selling loans from
different hedge funds, whetherit's doing partials, eddie has
done it all.
That's what I learned fromEddie and I continue to this day
to learn from Eddie, and he's agood friend of mine.
He's also my mentor, so thereare very few people out there
that can hold a candle to him.
Mine's also my mentor, so,there, there are very few people
out there that can hold acandle to him.
And so when I see people outthere educating and teaching
(25:06):
this space and they and they arenot as experienced as him I
don't.
I don't listen to them a wholelot.
I always listen to Eddie andwhat he has to say first, unless
there's a new strategy outthere that somebody is doing
that makes a lot of sense, thatmakes a lot of sense.
So just be careful out there onwho you're getting education
from and make sure they actuallydo this business and make sure
they have a good track recordand make sure other people in
the industry respect them andhave worked with them before.
Okay, working with experiencedinvestors and working with
(25:32):
amateurs it can be challenging.
So when you're working withexperienced investors, obviously
you want to make sure that youdo your due diligence on them
when you're in a deal with them,working with amateur investors,
you really have to be careful,because if you are not the
expert or the professional, orif you feel like you don't have
the expertise to be called theprofessional, you want to pull
(25:52):
someone in that is aprofessional that can help you
through the deal, because a lotof mistakes happen not to the
fault of any one particularparty or person, it's just you
don't know what you don't know,especially in this industry, and
you can't be afraid to askquestions because we're all
learning.
No two deals are the same inthe industry and no two closings
(26:12):
are the same either.
Excuse me, so I say that'sanother warning sign.
You just want to make sure whoyou're working with, if they're
professional, if they haveexperience and stuff, and don't
be afraid to ask those questions.
At the end of this day, it'syour money and it's your
investment, so you want to makesmart decisions and you don't
want to make a lot of mistakesmistakes.
(26:36):
I have definitely made somemistakes in my day and I have
learned from them, and so that'swhy I feel very confident, when
I started a fund last year withRichard, that I knew what I was
doing and if I knew that Ididn't know something very well.
I knew who to go ask to findout on how to either get
resolution or how to buysomething or how to do due
diligence on something that Ihadn't done before.
So I have that confidence goingforward today.
And I've been in the business,you know, eight years now, so I
(26:59):
definitely have a little bit ofexperience behind me Not as much
as some of the other people inthis business, but, like my
mentor, eddie, he's got, youknow, 40 some years in the
business and he grew up in thisstuff and he was educated by
guys that were pioneers in thebusiness before he got into it,
you know in the 60s and 70s,that have been doing this for a
while.
So it's all good stuff.
So hopefully today's episodeanswered some of the basic
(27:22):
questions that you had.
Some of the more advancedinvestors.
Hopefully my warning signshelps you guys out to what to
look out for today and kind ofwhat I see going on across the
industry.
So I'm Justin Bogard.
My company is AmericanNotebuyers.
This episode is sponsored byAmerican Notebuyers, don.
So I'm Justin Bogard, mycompany is American Notebuyers.
This episode is sponsored byAmerican Notebuyers.
Don't forget to check out ourYouTube channel.
It's called American Notebuyerson YouTube and you can look at
the playlist here for the Be theBank podcast.
(27:44):
This is our short form.
Our long form, more educationalformat, is called our Be the
Bank Real Estate Note InvestingBe the Bank broadcast.
That comes out monthly and wegot Mr Chris 70 J ready and Mr
Jamie Bateman get on there aswell.
We usually have another gueston there If one of us can't be
on, so you can check that outmonthly as well.
(28:05):
We do that live on our YouTubechannel.
Second Wednesday at 6 PMEastern time.
Again, I'm Justin Bogart withAmerican note buyers.
This is season six, episodenumber nine.
I hope you enjoyed this onetoday.
Feel free to reach out in thecomments on whatever platform
you're watching this on and letme know what you think.
I'd appreciate that Until thenext episode.
We'll see you guys.
Narrator (28:28):
Thanks for listening to Be the Bank.
We hope you learned somethingfrom today's show.
If you enjoyed this episode,please rate and review us.
Plus, check out our channel onYouTube and follow us on
Facebook and Twitter at Be theBank, and on Instagram at Be the
Bank Podcast.
Be the Bank is sponsored byAmerican Notebuyers.
Thanks again for listening.
Thank you.
Real estate to create realwealth and passive income for
you and your family.
He'll share stories of realestate investments done right,
walk you through the process ofowning a real estate note and,
most importantly, educate you soyou can be the bank.
This is Be the Bank brought toyou by American Notebuyers.
Now here's your host, justinBogard.
Justin Bogard (00:46):
Here's your host, justin Bogard.
Hi there, listener, how are you?
If you'd like to check out thevideo stream of this Season 6,
episode 9 on our YouTube channel, you can certainly do that.
You can just go to our YouTubechannel, which is American
Notebuyers, and you can searchus up on Google or whatever
searching platform that you use.
That'd be awesome.
Today I have no guests.
(01:07):
Today it's just me.
You have me all to yourself.
Today I have your undividedattention, because if you're
listening to this, you probablyhad nothing better to do.
Anyways, right, I thought Iwould answer some questions,
some common questions that I seein the note industry today, and
I also kind of wanted to giveyou guys a kind of a background
(01:28):
in history throughout my kind ofpodcast journey here.
So let's just get into thatfirst.
And today I am on season six.
Like I mentioned, this isepisode number nine of our
podcast.
I go by seasons because I justkeep track of how many years
I've been doing this.
So a lot of people that dopodcasts, they just count from
episode one all the way, episodeyou know, to 500 or whatnot.
(01:50):
They keep track of it that way.
I just I don't know, that'sjust me, I guess I just wanted
to keep track of it throughseasons, and so I've obviously
been doing this for about sixyears now.
And it started back in 2018 witha really good friend of mine.
Her name is Elizabeth Sicklesand her nickname is Super E,
which she prefers to be calledthat, and we had a podcast
(02:12):
called the Super E&J Podcast.
So Elizabeth came into realestate investing from about
2016,.
I think she lived up inMichigan and she worked for a um
, basically uh, like the phonefor a Ford motor company up
there I think it was Ford and sothen she was in that industry
(02:33):
for a long time and then shejust got sick of it and she
wanted to learn real estate anddo stuff.
So then she came down here andmoved to Indy and then she just
started investing in real estatewith her own money and then she
started learning about stuffand we became friends because I
went to a women's only subgroupof our local Rio club and I was
giving kind of a talk about whatI do and investing and stuff.
This was definitely early 2016,2017 timeframe, and so we just
(02:58):
became friends.
After that she kind of wasasking me more questions offline
and then we just kind of keptup with each other and I was
following her and what she didand she really got into the
short-term Airbnb type of stuffand she'd become an expert here
locally because no one elsereally was an expert here in
Indy on this stuff and so she isa very intelligent person and
so that's kind of how we startedthis podcast and we would have
(03:20):
conversations and we just bothsaid, man, it'd be interesting
for somebody to hear theseconversations if they were a fly
on the wall, and that's kind ofhow things stuck and went into
the podcasting.
I always kind of wanted to dosome sort of podcast or some
sort of short form audio thinglike that, and so that's kind of
how we got into it.
So I had to learn a lot aboutdoing a podcast and it's
(03:41):
interesting because you thinkyou know how to do it, just
watching and listening to otherpeople that have theirs, and
it's just uh, there's a wholequite a bit to it than than you
actually think.
So I had worked at a shared uhoffice space here in the Fishers
Indiana area and with thisshared office space there was a
lot of other people that workthere from different companies,
(04:03):
different business verticals andone particular company that was
close to where I typically sitat this shared office space and
this was before.
Covid was a company thatbasically runs shows for
podcasts and it's usually biggerpodcasts.
So I got to kind of befriendingher, the owner of the company,
and just explaining to her whatI do and stuff.
(04:24):
She's like oh yeah, if you needsome help, just let me know.
I'm like, well, you know, wedon't have a lot of money to put
into this and you know, if whatI really need is just get some
basic education on kind of whatto do and stuff, and so she put
together a little package forelizabeth and I and kind of set
us up and then, um, when she waslooking at what we did, she
kind of got a chuckle out of itbecause she's like oh, that,
(04:44):
that's, that's not a podcast.
So I got a quick definition onwhat a podcast is versus
something else.
So what we were doing was justbasically doing like zoom
recordings of what we were doing, talking back and forth, and
didn't really have a format,didn't really have a structure.
It was just her and I just kindof bantering back and forth.
And then so after we took thislady's training and I can't
(05:06):
remember her name and hercompany and I wish I'd.
I want to give her a plugbecause she was very helpful.
She taught us how to do thewhole podcast routine and how to
set things up for interviewsand how to do show notes and how
to, you know, grab people forinterviews and, you know, get
them to want to come on the showand stuff like that.
And then shortly after thatpilot season, elizabeth and I
(05:27):
just changed the show to the ToWealth Show.
That's when we got reallycreative with it and just ran it
like we were supposed to, andso I think we were just naming
the show just To Wealth ingeneral and we were talking
mainly about real estateinvesting and we would dive into
notes and dive into other sortof real estate stuff.
And so we did that for anothercouple of seasons and then I
(05:48):
changed the iteration of it towhat it is now called Be the
Bank Podcast, and I changed thatbecause Elizabeth kind of
reached the point in her careerto where she was just really
busy.
She had bought a cleaningcompany, she was running an
Airbnb property managementbusiness, she had her own
short-term and long-term rentalsand stuff.
So she just became overwhelmedwith stuff.
She actually had her owneducational course as well and
(06:11):
she was really successful withthat.
So this was kind of like, youknow, an off project for her.
This wasn't by any means amoney generator for either one
of us.
I just like to do it and she'dlike to do it as well, but she
just got too busy.
So then, after she decided toleave the show, I just kind of
converted this into justprimarily a note investing type
of podcast, and that's kind ofwhere it's landed ever since.
So my business partner, richardThornton, and I just kind of
(06:33):
took it over and just ran withit and he was kind of the guy on
the show with me and we wouldinterview people every now and
then, but mainly it was just himand I talking about different
things that we see that go on.
We try to keep it relevant tothe current times.
When we were doing the podcastepisodes and we would, you know,
if we'd hear like a newsarticle or something going on in
(06:54):
the market, or maybe it was aninvestment that him and I did
separately or together that wewant to talk about.
Be like man, this was kind ofinteresting, or I fumbled my way
through this or I found areally cool little shortcut and
then we'd also bring thebusiness aspect to it and try to
educate our audience on that.
So that's kind of where it istoday.
Richard has since retired, atthe end of season five last year
(07:14):
, and so he is kind of moving onto what he likes to do now.
A little fun fact Richard isactually taking some cooking
classes right now.
So he is keeping himself quitebusy with his investments and
learning this cooking classstuff.
So I get a chuckle out of itbecause I just don't see him
cooking Not that he can't cookor anything, and trying not to
be judgmental, but it's justfunny.
(07:35):
So Richard and I still stayconnected.
He's a great friend.
He's been a great mentor for meon things in real estate that I
had never done before.
He has definitely a wealth ofexperience, you know, things in
real estate that I had neverdone before.
He has, you know, definitely awealth of experience behind him
on building up very largebusinesses and doing very
creative deals out in Californiaand very large, you know, in
dollar amount deals that he didin California.
(07:57):
So now this Be the Bank podcastis now focused on more interview
type stuff and I reallywouldn't say interview, it's
more of.
You know, I have somebody tohave a conversation or
discussion with on a certaintopic, or maybe they are an
expert in certain certain thingabout real estate notes, and so
I try to bring people on thatare more relevant in the
(08:19):
business, and obviously they'reyou know, they're primarily my
friends and also people that Irespect in the business as well.
So you'll see more of thoseinterviews slash discussions in
the future, but today I justkind of wanted to share with you
guys, you know, kind of myadventure and all this.
It's been really fun.
There's, there's, obviously,technical aspects to it.
There's, you know, we havesomebody that does the
(08:40):
post-production of this.
As far as leveling out ouraudio channels, we have guests
on that may not have, you know,a really nice microphone or a
good setup.
You know, like I try to havenice equipment so that things
sound good and things look goodas well.
We run this on a platform calledStreamYard in that way that we
can record this or we canactually live stream this stuff
(09:00):
too, which is what we do for ourmonthly broadcast, and so it's
a cool little little thing wegot to.
We got to pay like an annualfee.
I want to say it's like three,four $500 a year for it to have
it.
But it's really slick.
You could upload graphics to it, which, if you're on our
YouTube channel right now andyou look at the Be the Bank
playlist, you'll see thegraphics that I have in the
background and I usually haveanimations that run across or I
(09:22):
have little video transitionsthat go from you know 10 seconds
, 7 seconds to a minute long,depending on what we need to do
for stuff.
So that stuff's kind of cool.
We don't have to put a lot ofmoney into this.
Really it's kind of thepost-production and the time
that you put into it.
So that's kind of nice withthis form that we do.
So there you have it.
So that's the secret to thepodcast here.
(09:44):
We do try to keep it within 20to 30 minutes.
I just figure that's a car ridefor somebody and people like to
listen to the stuff that youknow 1.5 or two X anyways, just
to speed it up on some of thepodcast episodes that get longer
and stuff.
And then you know people youknow, like myself, sometimes try
to talk a lot as well, and sothat can get kind of irritating
(10:05):
to the listener sometimes, butit's fun.
Anyways, you guys can shareyour comments about the
experience or how long you'vebeen following me and what I've
done with this iteration on allthese podcasts and stuff, and
I'd just love to hear back fromyou.
Last time I checked, I think Ihad probably 10 or 12,000
downloads by now on just thepodcast part of this, which was
pretty cool to see.
(10:25):
I'm glad to see people are outthere downloading it and
hopefully getting education fromit as well.
So, moving on, I also said Iwould talk about some Q&A and
more or less some new questionsthat I see, or common questions
I guess that I see often in thenote business.
I'm a part of many differentFacebook groups that I've got
asked to be in or I tried to geta part of.
(10:48):
I do see a lot of feeds comethrough.
It's hard to keep up with allof it, but I do see a common
theme with people trying to getinto this space in general, and
so let me share some of the onesthat I see and maybe answer
those questions.
If you're newer listener todayto this part of real estate note
investing, and maybe I can helpyou answer some of these.
So obviously, one of the firstquestions that I see commonly or
(11:14):
get asked is where do I startwith note investing?
So this is a great question andthe first thing that I always
tell someone is you really justneed to find a mentor, and that
mentor should be somebody thatis currently doing the business
today.
That mentor should be somebodythat is currently doing the
(11:35):
business today.
In all of note investing maybenot just one aspect of it Make
sure they have a long tenure inthe business.
Make sure that they are wellrespected in the business.
So you should actually do yourdue diligence on that mentor as
well, to see if they have anylawsuits against them.
Believe me, these things arereal and you want to make sure
(11:55):
that they are respected by otherpeers.
So talk to other people that youknow, that are in the business,
that you trust, and be like hey, who do you know, who are
people that stand out to youthat you feel like are extremely
knowledgeable based on yourexperience and stuff, and you
can find a good mentor.
I have a mentor and I'llmention who that is later on in
the show today their trackrecord.
(12:15):
You want to make sure they havea mentor and I'll mention who
that is later on in the showtoday their track record.
You want to make sure they havea good track record of doing
deals and maybe you want to talkto people that do deals with
that person before they becomeyour mentor, because you just
you honestly want to find just agood, good person, a good
natured person that's not goingto you know, that doesn't want
to screw anybody over, thattries to make a fair deal, that
does things honestly and theyand they abide by the rules and
(12:37):
regulations that we all have tofollow with the state and
federal mandates.
So how do I get in the businesswithout any money?
So this is another reallycommon one.
As you can imagine, a lot of newpeople get into this business
and they don't have a bigbankroll.
In fact, probably a very smallpercentage of people get into
(12:58):
this space actually have a largebankroll, and I'm talking about
, you know, half million to amillion plus in their bank,
whether it's retirement orwhether it's cash because they
sold a business.
You're not going to find thosepeople too often.
They're typically prettysophisticated if they have that
big of a bankroll to begin with.
So they might not need some ofthis more basic level of
(13:19):
learning how to invest and stuff.
But when you don't have anymoney, you really can't offer
anything to anyone except ahustle.
So there's three things that mymentor taught me.
And you got to find somebodythat has the experience.
You got to find somebody thathas the money.
And you got to find somebodythat has the experience.
You got to find somebody thathas the money.
And you got to have somebodythat has the hustle.
And you, as the person involvedin any part of a transaction,
(13:41):
you want to have at least one ofthose characteristics so you
can help add value to thetransaction.
And so typically, what peopledo just in real estate in
general, they become awholesaler or what they call a
bird dog, someone that just sayshey, there's this deal here.
I don't know what to do with itbecause I'm inexperienced, but
I want to put it in front of youand I'd like to make a fee for
it.
And oh, by the way, I'd like tolearn along the way, and so
(14:02):
that's a good thing to do.
So, if you don't have any moneyin this business, first of all,
don't quit your day job.
That's number one.
You want to make sure you havesome money coming in from like a
W-2 and stuff like that andthen do this on the side until
you can build up enough moneyreally to kind of replace your
job and do this full time.
When I did this, I was marriedat the time and my wife was
(14:27):
making enough income to supportus and our kids to where I could
do this and take a plunge.
And I got into real estate andkind of learned all this stuff
and eventually got into notesshortly after that.
So don't quit your day job.
You definitely want to research,educate yourself online.
There's tons of free stuff outthere.
You do want to be mindful ofwho you're learning from.
I wouldn't learn from Facebookgroups.
(14:49):
I wouldn't go out there and dothat.
I would learn, like,specifically from people.
That's why I say you shouldreally do research about this
topic in general, just to get anidea of what it is, and note
investing and buying and sellingloans and creating loans and
then find that mentor after that.
So that's how you do it withoutany money.
You can do deals without anymoney and make a good amount of
(15:10):
money.
It's typically called likebrokering or flipping a loan.
That's where you find a dealand you're you're turning it
over to someone else that hasmoney and looking for a deal, or
somebody that's you know hasyou know has money and looking
for a deal.
You're kind of doing one or theother with people and you're
trying to make a fee in between.
That's called brokering deal.
(15:31):
Which brings me up to anotherpoint, is that a common question
I get asked is if you have tohave a license to do this stuff,
and you really don't.
So when you sell real property,you have to have a real estate
broker's license Right, thatmakes sense.
But notes or loans areconsidered personal property and
so you don't need like aspecial license for that to be
able to sell a loan that youdon't own to somebody else and
(15:54):
be kind of a broker in between.
So should I invest in aperforming or non-performing
loan is a common question whensomeone first gets into the
business, and that question isreally up to the investor.
And really, what is their goalor what is your goal in this?
Do you just want to makepassive income, you want to be
kind of active in it but justmainly make passive income, or
(16:18):
do you want to take more risksand you want to have a longer
timeline to get paid and donon-performing.
Non-performing can become afull-time job, especially if you
have several of them going offat the same time.
Keep in mind on anon-performing loan, you don't
get any cashflow.
That's why it's non-performing.
You'll get any cash flow untilyou figure out the resolution,
whether that's working with theborrower, whether it's getting
(16:39):
the property back and resellingit or hopefully not having to go
through foreclosure.
It takes a little bit longer, alittle more time and money into
that, and so those are reallythe three exits for it.
Within those exits there aremultiple facets you can run down
that I talked about, but mainlynon-performing.
It's not cash flowing but youcould have potential to get
larger payday.
Believe me, I've hadnon-performing go wrong and I've
(17:01):
not made money.
I've actually lost money andstuff before.
To be truthful, you just haveto be very careful with your
diligence.
So I always tell people juststart off with performing.
If you don't want to invest alot, you can find loans out
there.
You know, as small as like 10,15, 20,000.
And you can spend up to 100,200, half million dollars on a
loan pretty easily if you wantto.
(17:21):
No-transcript.
So that's kind of like thebasic Q&A or the basic questions
(17:45):
that I see that get asked verycommonly, so hopefully that
helps you out.
Another thing I want to talkabout is warning signs out.
The other thing I want to talkabout is warning signs, and so
those of you that are in thebusiness and you are not what I
consider an amateur noteinvestor, you're more of a
seasoned investor, you'restarting to become a seasoned
investor, and so these are thekind of the things that I've
(18:06):
learned along the way, and noparticular order here.
I just kind of wrote somethings down on my little sheet
over here that I'm looking at,and slick salespeople will push
you into deals that you normallywouldn't do, and so you would
just want to be mindful ofsomeone that's trying to, you
know, put that information infront of you and make everything
(18:28):
sound like uh, it's great, it'swonderful, it's amazing, it's
awesome, you should definitelydo this deal.
Uh, maybe you should ask themwhy has no one else bought this
deal?
If it's so awesome and soamazing, don't feel pressured
into purchasing something withyour own money that you normally
wouldn't buy.
And it's kind of outside thescope of what you do when you
want to do those types ofinvestments when it's outside
(18:49):
the scope of what you do.
You definitely want to havesome more seasoning underneath
you because you can also learnfrom other people that do those
types of deals and ask themquestions.
Say, hey, would you help mewith the due diligence on this?
Like I've never done a secondlien non-performing mortgage
before, can you kind of help mewith this part of it?
You know I understand a firstlien non-performing but the
(19:11):
second lien, you know I haven'tdone that before.
So don't be afraid to askquestions to other people in the
business that you know, thatyou know like and trust that can
help you with that sort ofthing.
No-transcript.
(19:31):
You also shouldn't keep yourmoney on the sidelines forever
waiting for that perfect deal,because that money is just going
to stay on the sidelines andyou're probably never going to
fund a deal.
You want to have some sort ofwhat we call a buy box.
You want to understand yourparameters that you're trying to
reach and make sure they'rereasonable parameters.
Don't be like I'm only gettinga certain yield, because the
yield investors are the onesthat don't make good decisions.
(19:54):
And I say that becauselogically you think okay, I just
want to get an X amount ofreturn for my portfolio.
Yeah, I guess that makes sensemathematically.
But there's a whole other thingto the business called risk, and
risk is a major part of thedecision.
And sometimes I buy loans thatare single digit returns, but
(20:14):
they are really really low riskdeals and so in my portfolio I
have very low risk deals.
I have very high risk deals andI got deals that are kind of in
the middle and kind of ondifferent sides of that spectrum
as well, because I have ablended portfolio like that and
that's how I keep things going,keep things moving.
Now that's for me personally,for the fund that I manage, for
(20:36):
our investors.
I don't go to that extreme ofhigh risk deals.
I have very low risk deals andI have moderate risk deals and
that's where we stay with ourfund.
I keep it performing.
Right now we don't have anynon-performing loans.
We have some loans that youknow a little bit of late payers
and they might be behind 30 or60 days, maybe one or two out of
15.
But you know it's a very strongportfolio.
(20:59):
So that's how I handle that.
So I don't tell people youshould focus on a yield.
I would say what are yourparameters as far as like what
type of risk are you taking onthese deals?
And I would keep it to that.
You can have somebody help youwith your parameters as well.
Investors out there and thereare a lot of them right now,
(21:20):
especially on Facebook they'relooking for note buyers like me
and you, if you're listening inyour note buyer that want to
table fund deals.
So what they're trying to donow is they realize that the
banks are not lending as well asthey have been or as freely as
they have been, and a lot ofpeople are not fitting the
bank's lending box, and so theironly other option to get
(21:42):
property is to have the owner ofthat property sell it to them
and carry back financing withthem.
So we call this owner financingor seller financing.
So you'll find these realestate investors whether they're
wholesalers or fix and flippersand they get these deals under
contract and they find a buyer,and then they create a note and
they want to sell that note andthey want to sell it for a
(22:03):
hundred cents on the dollar.
They don't understand what wedo, they don't understand our
business and they don'tunderstand creative financing
and seller financing to theextent that we do they just they
think it's simple and theythink it's basic and they think
that there's no need for, youknow, education on that, and so
they make a lot of errors.
They also sell these propertieserroneously at a lot higher
(22:28):
value than what they're actuallyworth.
So if you are in a position towhere you're looking to table
fund some deals caution flag,warning sign, right you want to
make sure that you do duediligence on that investor and
you want to make sure you reallyunderstand and scrutinize that
deal so that it's a good deal.
We do table fund deals andthere are good deals out there
(22:48):
and there are good operators outthere.
I'm just telling you thewarning sign comes up that you
know more than likely they'renot experienced in doing this
and it's very less likely thatthey are experienced in doing
this.
So what you're looking for islarge down payments, and I'm
talking about 25 plus percentdown payments.
You're talking about reallygood credit scores because
(23:09):
you're buying into somethingthat's not seasoned and you want
to make sure the property valueis at sales price or higher.
That's a good level that youneed to be at as far as your buy
box on table funding deals.
And then you want to make sureeverything goes through a title
company so that you have all theproper paperwork, you have all
(23:30):
the proper policies in place andinsurance policies and stuff
like that.
If you need help with that,obviously you reach out to me.
Info at ambfundscom Glad tohelp you with it.
I may be the potential buyer orpartner in that loan that
you're looking at anyways, butanyways, if you see someone
asking for the table fund dealsand they act like it's all great
, wonderful and amazing, I'mputting my radar up and saying
(23:56):
they probably aren't anexperienced operator.
If they're advertising indifferent Facebook groups the
ones that are experiencedoperators they already know the
people in the business andthey're already got
conversations going with me orother hedge fund managers out
there that they know that buythese loans and know what the
heck they're doing.
So let's be careful of that.
Along those lines, everybodythinks that they are experienced
(24:17):
and an expert in creativefinancing and seller financing.
Until they actually learn fromthe legends in this space.
Okay, my mentor is Eddie Speedwith NoteSchool, the country
right now that have 40 yearsexperience and 50,000 deals
under their belts, whether it'sbuying portfolios, whether it's
(24:42):
creating loans, whether it'sbuying and selling loans from
different hedge funds, whetherit's doing partials, eddie has
done it all.
That's what I learned fromEddie and I continue to this day
to learn from Eddie, and he's agood friend of mine.
He's also my mentor, so thereare very few people out there
that can hold a candle to him.
Mine's also my mentor, so,there, there are very few people
out there that can hold acandle to him.
And so when I see people outthere educating and teaching
(25:06):
this space and they and they arenot as experienced as him I
don't.
I don't listen to them a wholelot.
I always listen to Eddie andwhat he has to say first, unless
there's a new strategy outthere that somebody is doing
that makes a lot of sense, thatmakes a lot of sense.
So just be careful out there onwho you're getting education
from and make sure they actuallydo this business and make sure
they have a good track recordand make sure other people in
the industry respect them andhave worked with them before.
Okay, working with experiencedinvestors and working with
(25:32):
amateurs it can be challenging.
So when you're working withexperienced investors, obviously
you want to make sure that youdo your due diligence on them
when you're in a deal with them,working with amateur investors,
you really have to be careful,because if you are not the
expert or the professional, orif you feel like you don't have
the expertise to be called theprofessional, you want to pull
(25:52):
someone in that is aprofessional that can help you
through the deal, because a lotof mistakes happen not to the
fault of any one particularparty or person, it's just you
don't know what you don't know,especially in this industry, and
you can't be afraid to askquestions because we're all
learning.
No two deals are the same inthe industry and no two closings
(26:12):
are the same either.
Excuse me, so I say that'sanother warning sign.
You just want to make sure whoyou're working with, if they're
professional, if they haveexperience and stuff, and don't
be afraid to ask those questions.
At the end of this day, it'syour money and it's your
investment, so you want to makesmart decisions and you don't
want to make a lot of mistakesmistakes.
(26:36):
I have definitely made somemistakes in my day and I have
learned from them, and so that'swhy I feel very confident, when
I started a fund last year withRichard, that I knew what I was
doing and if I knew that Ididn't know something very well.
I knew who to go ask to findout on how to either get
resolution or how to buysomething or how to do due
diligence on something that Ihadn't done before.
So I have that confidence goingforward today.
And I've been in the business,you know, eight years now, so I
(26:59):
definitely have a little bit ofexperience behind me Not as much
as some of the other people inthis business, but, like my
mentor, eddie, he's got, youknow, 40 some years in the
business and he grew up in thisstuff and he was educated by
guys that were pioneers in thebusiness before he got into it,
you know in the 60s and 70s,that have been doing this for a
while.
So it's all good stuff.
So hopefully today's episodeanswered some of the basic
(27:22):
questions that you had.
Some of the more advancedinvestors.
Hopefully my warning signshelps you guys out to what to
look out for today and kind ofwhat I see going on across the
industry.
So I'm Justin Bogard.
My company is AmericanNotebuyers.
This episode is sponsored byAmerican Notebuyers, don.
So I'm Justin Bogard, mycompany is American Notebuyers.
This episode is sponsored byAmerican Notebuyers.
Don't forget to check out ourYouTube channel.
It's called American Notebuyerson YouTube and you can look at
the playlist here for the Be theBank podcast.
(27:44):
This is our short form.
Our long form, more educationalformat, is called our Be the
Bank Real Estate Note InvestingBe the Bank broadcast.
That comes out monthly and wegot Mr Chris 70 J ready and Mr
Jamie Bateman get on there aswell.
We usually have another gueston there If one of us can't be
on, so you can check that outmonthly as well.
(28:05):
We do that live on our YouTubechannel.
Second Wednesday at 6 PMEastern time.
Again, I'm Justin Bogart withAmerican note buyers.
This is season six, episodenumber nine.
I hope you enjoyed this onetoday.
Feel free to reach out in thecomments on whatever platform
you're watching this on and letme know what you think.
I'd appreciate that Until thenext episode.
We'll see you guys.
Narrator (28:28):
Thanks for listening to Be the Bank.
We hope you learned somethingfrom today's show.
If you enjoyed this episode,please rate and review us.
Plus, check out our channel onYouTube and follow us on
Facebook and Twitter at Be theBank, and on Instagram at Be the
Bank Podcast.
Be the Bank is sponsored byAmerican Notebuyers.
Thanks again for listening.
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