In this episode of the Cash Flow Guys Podcast, I get the distinct honor of interviewing Scott Carson of the We Close Notes podcast. Over the years I have recorded hundreds of episodes but this one was certainly the most fun. Scott brings a unique energy and personality to an otherwise boring (yet profitable) field of note investing.
During the episode, we discussed the fact that many investors lately seem to be overpaying for notes, just like investors buying properties. The note business is active and remains active regardless of market cycles. We find that far too often new note investors are not willing to do the work to build relationships first before making note purchases.
When you rush into a note purchase I guarantee you will almost always overpay. Worse, when in a rush due diligence is often overlooked or shortcuts are taken. Be careful of rushing just to “get a deal”, take your time and do your homework.
The good news is that there are plenty of notes for sale every day of the year, regardless of what is happening in the news. Take the time to network with hedge fund managers, asset managers and small local and regional banks in order to source opportunity. Be sure you are in a position to close on a note before making an offer. The one thing that will quickly tarnish your reputation is to not be able to close after making an offer for a note. The other major taboo thing is to try to “wholesale” a note without the knowledge or consent of the note seller.
In the note business, competition really is low, virtually non-existent. Instead, we rely on our relationships with fellow investors to help grow our portfolios and network.
We also touched on Scott’s marketing domination, he is truly an expert in marketing his business, ALL entrepreneurs need to take notice of how well he markets his business. Scott is rapidly becoming one of the most effective marketers in the real estate space. Being effective as a marketer generates leads, and leads always equal opportunity. Anyone listening to this episodes should immediately go to WeCloseNotes.com and register for Scott’s upcoming trainings.