The “Power of the Network” contest
February 22, 2010 by notebuyingprofits.com
Filed under Live Events, Note Buying 101
“It’s not what you know but who you know…”
(OK, so maybe it’s both…)
I spend more time on the phone than a teenager. Why? My note buying business runs on relationships. If there’s one thing that makes me a successful note buyer it’s the relationships I’ve built over time with investors, sellers, brokers, fellow buyers, and the people who support the business on the backend. These give-and-take relationships are the fuel that powers my business.
Sure, I still have to show up every day, work hard, stay current on the market, make good decisions, manage my staff, and keep seeking out new opportunities. But what happens now is that people in my network constantly send me leads, share tips and strategies with me, and exchange advice with me. Bottom line: I make more money (from better opportunity flow and knowledge) as my network grows.
What’s the lesson here? You should spend part of every day cultivating your network. As my buddy Mike says, “Network equals net worth”…
Busting the “Lone Ranger” Entrepreneur Myth
I’ll confess that I have a bit of an entrepreneurial Lone Ranger streak, and I sometimes lapse into an attitude of “I’m better off alone” after I waste an hour on the phone with a broker or seller who can’t deliver what they promise.
But then, I’ll get another call from John at XXX Bank, and he’ll ask if I want to bid on this little pool he needs to unload, and after that, the phone will ring again and it’s Fred asking if he can put another $200K into the fund, and then it’s Jerry, asking me to take a look at this note deal he’s working, and I end up learning how to bid smarter on multi-family notes…
The Power of the Network Contest.
Inspire us! Win airfare to the Note Summit (March 19-21)
Let’s do something fun with this. You may have heard that we’re hosting the Premiere of the Note Summit in March, and I’ve been pointing out to people on our calls recently that even though the actual training and education at the event make it well worth attending, the part of the event that can radically improve your note buying business will be the relationships that will get formed or deepened there.
Here’s what to do: share with us how the contacts that you have made in the “Note Buying Profits world” (colleagues, people you met at other NBP meetings, coaches, forum buddies, referrals…) have helped you in your note buying endeavors. Think of this as a chance to inspire people who may not yet have had the success you have. But, for those of you with a competitive bent, here’s a little sweetener…
We’ll pick the best “power of the network” stories and pay your airfare out to the Note Summit (up to $400).
Tell us your stories below in the “comments” area–and give as much detail as you can about the who (but no last names, please!), how, what, and when this network has helped you. Inspire us, get everyone fired up about the Note Summit, and win free airfare!
Important note: you do NOT have to have already made millions as a note buyer. We want to hear from people at every level of experience, so don’t be shy about telling your story even if you’ve only been at this a short time or you haven’t bought your first note.
(If you have any concerns about privacy, shoot us your story in an email to summit@notebuyingprofits.com. We’ll “sanitize” it, let you proof it, then publish it here anonymously.)
WOW!!! I would not have the confidence to proceed in my note business without the knowledge and expertise I receive on a constant basis from my Labs buddies!!! Dan is a master at due diligence, and I know I can drop any situation, no matter how hairy, on his lap and he’ll dig up everything… and I mean everything, without leaving any stones unturned. This provides me with the ability to focus on developing my bank relationships….and negotiating from a position of strength!!!
The value gained from the contacts I’ve made through the NBP network is immense!
With several NBP contacts a phone call away, I’ve become much more confident taking action – because I know people I can ask for feedback from on all kinds of situations – AND they are generously willing to share their experience. And talking with other note buyers about their deals –people willing to share both the great and not so great situations – means you get real-world information from people “on the street.”
The NBP network provides a great set of resources to call and say, “Hey I’m not sure how to do this – how did you handle it?”
I’ve called Mike and Kevin numerous times (1) to ask how they handled a specific situation, (2) to discuss potential output for excess note inventory I may come across and (3) to hear what interesting experiences they have in their own business – and the solutions they are putting together. This is real – this is now – live information from people who really make their living in this business! Invaluable!!
Using Bankruncher I focus on filtering on and contacting banks with a high level of delinquent loans. During a recent call with Spencer, he asked if I was looking at banks who sold loans in the last quarter. This info is available in Bankruncher – info I was not paying attention to. It was like a flash of lightening! What an excellent question! It seems obvious in hindsight – but I wasn’t including that data in my filter. I suddenly realized a Newton’s 1st law of physics, \\"An object in motion tends to stay in motion” could have a huge impact on my success.
It seems apparent (now) a bank already selling loans is probably more willing to talk about selling loans to me than a bank that does not sell loans. I eliminate my time convincing a lender to sell notes – and spend my time convincing the lender to sell notes to me! Who knows how long that might have taken me to think of? A simple question from a fellow NBP contact, “Are you looking at banks already selling loans”, may radically improve the chance a bank will do business with me!
Right now I’m trying to buy a 2nd for Sandy, from a lender contact I have. “If this works,” she said this morning, “I can go out and dig up all kinds of deals for you to make offers on.” That could be fun!
There are two ways to learn: (1) from your own experiences (and mistakes) and (2) from other people’s experiences (and mistakes). I can improve my learning rate by learning both from my own and from other people’s experience. Through the NBP network, there are people to learn from and people to partner with. That is a great way to make money!
To paraphrase a fantastic quote I heard from Mike, “We’re not competitors –we’re all allies.” That phrase embodies the energy, spirit and actions of many I’ve met through the NBP network. All these great people to learn from and possibly work with! That could add up to a huge amount of profit!! And that definitely sounds like a vast amount of fun!!
I started out buying REO’s from a lender, here in SoCal, that a lot of you know (the Big Gorilla). Trevor, the AM that I was working with, kept mentioning notes to me, and telling me that a lot of the investors preferred notes to REO’s. I wasn’t at all familiar with the business of buying notes and wasn’t comfortable with it. A few months later Dean spoke at a reunion that I went to for students of Ward Hanigan, a local foreclosure expert. I bought the NBP course and started using it.
I bought my first note from Steve, an AM with this lender in May, 2009. It was a 1st trust deed on a house in Ontario, CA that I bought for $155k. It was already in foreclosure so I continued the process and took the house back a few weeks later. I rehabbed it and sold it for $218k. My net profit was about $25k in 75 days.
Since then I’ve bought about eight notes and have been very happy with the note buying business. I flipped one note to Sandy, a fellow investor and I’m working with some other investors that are willing to put the money up, if I find the notes and manage them.
Dean’s course really lays it out in a very thorough and easy to follow manner. I’ve had numerous conversations with Dean, Kevin and Spencer and they’ve been extremely helpful and generous with their time. NBP is the best course out there for anyone wanting to get into the note buying business or for experienced note buyers that want to increase their knowledge and expertise.
I first got involved in notes over two years ago. I joined a group of local investors on weekly conference calls where a local investor would coach us through working second mortgages. These notes had plenty of equity in the deals where you could make a 50% return on your investment by getting the borrower to cash you out of the deal. Obviously the faster you work out a settlement, the higher your yield.
Yes there is a lot of risk in seconds, but there are greater rewards by cashing them out quickly or working out a payment plan with the borrower until they can get refinanced. I am currently working on my third note that I purchased awhile back on a refiance, which has become more difficult these days, as you all probably know.
A friend of mine found Dean’s Notebuyingprofits website one day and shared the link with me. After viewing a few of the teaser videos and free samples, I purchased the program and got busy looking for more sources. It wasn’t long after that, that someone from Big Gorilla contacted me about buying first mortgages. I have been buying first mortgages since that time. I still buy seconds, because I can get those at a lower price point and still have a good cash flowing deal.
I like working deals with homeowners in the property, as it gives me a chance to give back by helping people stay in their homes, where possible, and I get a decent return on my investment. My emotional high comes from turning a non-performing note into a performing note and developing a good relationship with the borrower.
Since getting involved in the note business, I have met quite a few investors, in person or on the phone/email, which makes for a great network to bounce off ideas, learn new strategies and ideas and get more involved.
I could tell you about some of my deals, but they are posted either in the forum or listed in Dean’s book – LOL.
Where do I start?
My best relationships within the Notebuying network started from face to face meetings during an event that Dean hosted in San Francisco. What would have taken months to build in a virtual environment (email, phone call, etc) can take minutes to build in one face to face conversation. That’s what happened at that event when I met Mike, Jolene, and Dan.
Mike is one of the most generous people I know when it comes to sharing his knowledge and helping others be successful. He introduced me to the world of 2nds and I bought one of my first notes from him. He goes out of his way to help where he can and is a great person to know.
Dan is just plain amazing. I swear there is nothing he can’t do. As someone commented earlier, his due diligence is second to none. He can dig up anything about anyone, anywhere, anytime. But his due diligence expertise is just the tip of the iceberg. His strategies are well thought out, he covers all bases in next steps and contingencies and he is super efficient in his execution. He is completely selfless with his time and has helped me in countless ways. Now my day isn’t complete until I’ve chatted with Dan at least once. Everyone NEEDS a Dan on their team.
Jolene is one of those people you instantly like and immediately know you want to work with. She is a networking master and knows how to build relationships. She built a relationship with a bank who held a 2nd position note I was interested in buying. She not only offered to help but dug into the details of the note as if it were her own. As a result, she was so well prepared when it came time to speak with the seller that she had to correct him on a few thiings he mistakenly thought about his own note (like he thought he owned the first). She too is a great one to have in your corner. I’d tell you to seek her out in Vegas but chances are she’ll find you before you find her.
I met Gerald at an event where we both met Dean and signed up for his course. A few months later he sold me my very first note and that note is working out quite well. He is someone who takes action and his investment strategy expands well beyond notes. If I had to sum up Gerald in one word, that word would be “Trustworthy”. As a first time note buyer, it was surpising how little concern I felt about whether or not he would follow through. No doubt that was a bigger concern for him working with me as a newbie buyer. He follows through and follows up and as a result I found someone I’d gladly do business with again and again.
Now I’m looking forward to Vegas where I can finally meet so many of the other people I’ve only been able to speak with on the phone.
See you there!
For me,with listening to a couple calls and reading the website material, I jumped right in with both feet running…bought four notes…turned a profit of 49k….in 45 days….and used my money on only one deal…
this is gonna be fun!!
See you in Las Vegas!
Networking in any business is critical to success. It builds credibility for your knowledge and insights into the business you are engaged. It builds confidence and challenges you to look at multiple sides to strategy. It expands your horizons. You learn. You gain access to new resources, and above all else you broaden that network. Great storyline…
No money? No connections? Better start with those social networks. I just got a notification email this morning that a certain forum had a member requesting suggestions on how to price under performing notes. Right under that was someone else wanting to buy notes in the $1/2M price range. Get linked, get faced, get connected and get going.
GT
Having spent the last 10 years as a retail real estate developer I am really excited to part of this conference, to Dean and all his associates to help enhance his network of note buying professionals. Residential and commercial note buying is going to be a very big business for all of us over the next few years.
The course has been an absolutely wonderful learning and networking experience. Not only have I been able to make connections we numerous individual investors and note buyers throughout the United States, I have been able to receive some of the best education and mentorship in the industry today. The processes within the educational sector of this course and the networking opportunities are tremendous to both professional and personal growth in this industry. This network and program has allowed me to have strategic advantages over others within the industry. If you are an individual investor, transactional investor, real estate investor or institutional investor in the distressed asset space or just looking into the space of the dislocated mortgage and real estate market you will gain tremendous knowledge not found anywhere else. What you will learn, the experience you will gain and the connections you will make are paramount. I fully endorse this program and its excellent staff or instructors, mentors and support personnel.
Getting Going…..I became involved with real estate investing less than a year ago and aware of buying notes just a short time ago in January 2010. I am a rookie with lots of determination. After hearing Dean present to our investors group, I knew I had to hear more. I quickly became engaged in learning the [Bankruncher] software and putting my growing knowledge to the test. The assistance from the NoteBuying teams is terrific, answering each question thoroughly.
Short on confidence in using the [Bankruncher] software tool in a practical way and in purchasing notes in general, I decided to test what I knew of the local banking environment here in New England against my analysis using the tools. Comparing my experience with struggling homeowners losing to foreclosure in my incoming real estate investments, I found it became easy to identify the patterns in the data and quickly understand what lenders to approach for possible purchases of notes.
The ultimate a-hah moment for me to knowing that I was on the right path was by evaluating my own mortgage lender. I looked at the numbers and recognized them as a target in the red zone with large loss ratios. I knew that they would be selling my mortgage. Within days of this moment, I did indeed receive a letter from them telling me my the loan had been sold. It was not long before we heard from the new lender and also had an offer to negotiate the terms.
Although a simple comparison, it was a real example where I could see clearly the value of purchasing notes. I have just scratched the surface of this opportunity. As my knowledge and skills improve, I have no doubt that by participating in the networking opportunities and working with the NoteBuying team, I will be absolutely successful in my investments well beyond my early estimates and goals.
I am excited to attend the NoteBuying conference and look forward to networking with others at the conference and building teams so we may all move ahead.
I am very excited for the upcoming Summit. I have just purchased my first note, and I know that after the Summit my note buying business will take off running. I look forward to meeting and networking with you!
Stefan Damianov
Realtor/Investor
Fort Myers/Cape Coral FL
P&P
No, It’s not the name for a law firm nor the name of a restaurant. It’s how I simply define the note business: People and Paper!
Yes, since I stumbled upon Dean’s course and I decided to fully dedicate my time in buying discounted mortgage backed notes, I realized that this fascinating little known area where real estate meets finance is rather simple and straight forward. Simple yes, but certainly not easy!
The core of the business can be thought and can be learned by anybody. I call it the Paper side. Here you will learn all kinds of business terminology, how to look at documents, what should raise a flag, what to look for etc. etc. This is the part where you literally learn how to look at paper.
Once you follow the right teachings, once you listen to what experts and proven track record gurus have to say about this business it’s when you realize that we do live in a fantastic period of time. Everything can be and is at your fingertips. Anything can be done from your computer, from the phone. Your risk is minimized by accurate tools and attentive due diligence.
What the course has done to me referring to the “Paper” side of this business is that it has given me confidence. That’s it. And believe me that is a lot. Because if you know what you are doing, then you don’t have to look like you know what you are doing, because it comes naturally!
But no matter how good you get at details and at attentive research and studying paper, in this business what you must never forget is the People side.
And People in this business are on every corner of it. There is always a borrower at the end of the note. There is always a new relationship in this business that is waiting to be crafted and nourished. It’s a continuous, relentless effort that deserves more attention and care than any other aspect of this business.
When we lose track of time immersed in the paper side and when everything seems not to make sense anymore and when you are simply not seeing a proper way out of your deal, it is comforting to know that you can always contact by email and stay in touch, share your frustrations, your opinions, thoughts or strategies to other “people” like you. They are the same persons who might have lived through the same or similar situation you are going through.
The Deans, Kevins and Mikes of the situation are priceless to me and to my new business venture.
Thank You guys.
I’m looking forward to launching into buying Notes. Reo’s in Phoenix have gotten quite competitive with multiple offers. And Short Sales are a pain. Profitable, but a pain. I believe the Note buying business to be the best of both worlds.
When John D. Rockefeller said, “Control everything. Own nothing!” he must have been referring to notes. Can’t wait to meet you all and network.
When I was younger, I thought that I could master everything, but as an older and wiser adult, I’ve found that it is far more valuable to be expert in one or two areas than to have limited experience in everything and be the master of none.
As Dean points out, in the blog entry, the power of your network comes not only from “what you know” – your knowledge or skills that you can trade – but also from “who you know” – your ability to find like minded individuals with skill sets and experiences that complement your own.
For any given situation, if you have a well developed network, it’s likely there’s someone within your network that has experienced the same or a similar situation or someone who knows someone else that has experienced it – and that is where the power of your network lies.
Developing a network isn’t hard, it simply requires that you allocate time to listen and learn about people’s interests and problems, and contribute your experiences and skills to helping other people when you can, or referring them to other more qualified individuals that might have the skills they need.
In the entries above, you’ll find references to my due diligence skills – it’s something that I’ve learned how to do, enjoy doing it, and definitely have a knack for it…. and yet you’ll find me freely sharing those results with other lab members not only to teach them how to do it, but to also further my own education as others with similar skills (Hi Jolene!) who might teach me a trick or two, or tell me about an interesting situation.
Bankruncher is another example of the power of the network, and came about solely because someone recognized the value that it might bring to the group and encouraged me to think about how it might be used by others. (Thanks Dean!)
Your network can be a sounding board – providing feedback for ideas, insights on situations, potenial courses of action, similar experiences, etc. Having to have someone that can ask probing questions, point out potential flaws, and be willing to tell you that your idea is bad, is a far cheaper education that having to pay thorugh the nose to learn it yourself. (Thanks Sandy, Mike, Kevin,, John, Jolene and the rest of the Lab members!)
Bottom line, the Borg had it right – your network and it’s collective knowledge is a source of power, and properly used can provide you with a wealth of information, experiences, and isights that as an individual you would have no ability to master or experience on your own. Make use of it. I know I will in Las Vegas!
I’m working on buying several properties in New England. My banker who has done several loans for me was canned in mid-process. After I got up off the floor, I called him, and we are going to have him start working on calling banks for notes.