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Notes with Paige: A Home Run
I get a LOT of emails from all of you at home, asking about my good friend and investing partner, Paige Panzarello.
“Tyler, where’s Paige?”
“Why hasn’t Paige been on in a while?”
“We love Paige more than you!”
Ok , the last one didn’t happen, but that’s how it feels sometimes! I know you all love it when I have Paige on the show, and I’ve brought her back today. We have some STELLAR news to share with all of you at the end of the episode, especially those of you in the Tampa Bay market!
We get a lot of the same questions from investors, both new and seasoned: “Where do I start? Why should I get into notes?”
And our answer is, “What do you need?”
The big thing here is to figure out your WHAT. This is different from your WHY, which we all know already. Now you need to know your WHAT, what your needs and your investing goals are.
One of the biggest things we can say offer new investors is DO NOT RUSH. Don’t do a deal or put your money out there just for the sake of doing a deal. You need to do your due diligence, whether it’s in notes or physical real estate. There are no shortcuts around that; stop looking for one. Your risk rises exponentially when you don’t take the time to truly understand what you’re doing.
It’s not a good idea to make financial decisions when you’re either emotional or in a rushed state. That’s what causes catastrophe and sets you further back then ever from your goals. And if your gut tells you don’t do it, then don’t. There’s no shortage of opportunities out there.
This year we’ve had our ups and downs: partners coming in, then going out; building teams; and vetting deals. We’ve felt the heat of the moment but we’ve only come out stronger.
One of our biggest successes was in Richmond, Virginia last year. It was a gorgeous Victorian house in a not-so-great area, but even so Paige knew that this was a good note. We bought it at $64,000 from the heirs of the deceased owner, but couldn’t get a deed-in-lieu. A deed-in-lieu is an alternative to a foreclosure where the mortgage payer decides to just give up the deed instead of going through the process.
However, we ended up foreclosing instead. The unpaid principal balance (UPB) was over $135,000, and we sold the note at an auction for $124,000, netting us $60,000 in profit in four months. That property is now being rehabbed by the buyer.
It depends on the situation when the deed-in-lieu is a good idea or a bad idea. If the property has liens, then it’s not a good idea. If there aren’t any, it’s a pretty quick way to get the deed.
And finally, Paige and I will be presenting our “Building Wealth with Notes Workshop” in Tampa, Florida at the Godfrey Hotel in the Cabanas on April 13th-15th. It’s 3 full days jam-packed of information, including simulations, role-playing, and networking. It’s going to be an amazing event that you DON’T want to miss!
To register for the Building Wealth with Notes Workshop, visit BuildingWealthWithNotes.com.
If you want to learn more about Paige Panzarello and Cash Flow Chick, visit her online at CashFlowChick.com.
Paige will be launching “Wealth Wednesdays”, where the last Wednesday of every month at 11 AM PST/8 AM EST she’ll be answering your questions on investing and notes. You can register at WednesdayWealth.com to join her!
Make sure you check out our website, CashFlowGuys.com to see what we’re doing next! And if you haven’t already, join our Cash Flow Guys Community at CashFlowGuys.com/Group.
If you want to join us on Cash Flow Guys TV, register at CashFlowGuys.com/TV.