Note Investing Club: Automated Due-Diligence
07/25/18 • -1 min
Due Diligence is the second most time-consuming part of the note investment business (right after finding them). Scrubbing tapes and verifying mortgage details can take many hours to complete and add days to your investment process. On today’s podcast you will find out how to successfully automate that entire process
Sorry, this offer is now closed.
Podcast Audio:
https://s3.amazonaws.com/dp-site-files/audio/Note+Investing+Club.mp3Transcript:
Brecht Palombo: Welcome back everybody to another episode in the Distressed Pro Professional Interview series. Today I have Liz Brumer-Smith and if you’ll just give me a moment, I’m going to get her profile right here. She’s the principal at Seasoned Funding, LLC, a privately funded real estate investment and note buying company, who specializes in finding first lien, residential, non-performing notes for the company’s portfolio. They purchase one-offs and small and mid size pools nationwide with preference in Midwest, Southeast, and Florida. Liz, you’ve been doing this for how many years?
Liz Brumer-Smith: We’re going to seven years pretty soon.
Brecht Palombo: Wow. Going on to seven years, and over that time, Liz has developed some systems for her business, like any good entrepreneur should. And today she’s going to share one of those with us. In fact, she teaches more about this, and we’ll talk about that in a little bit, but she’s going to share with us how to automate your due diligence. And I don’t want to hold everything up here. I’m going to ask you, Liz, if you would just go ahead and let’s dive into it. I’m really looking forward to this. We hear a lot about folks who are looking for due diligence information. It’s one of the things they think, “Well, geez. If I ... ” We really focus on helping people find the notes, but a lot of people get nervous and say, “Well, after I find it, then what?” And, hopefully, this right here will help to answer that for them. I’m really looking forward to it.
Liz Brumer-Smith: Yes. Thank you so much for having me. I’m excited to be here and to be able to share the systems I’ve created for my business and hopefully be able to help other note investors improve their systems, especially in regards to due diligence.
Brecht Palombo: Cool.
Liz Brumer-Smith: I’m going to share my screen with you guys, and this presentation will be available. We’re gonna have lots of information that I’m going over. As you’re watching or listening to this, please make sure to take note, and at the end, I will also give you more resources for a place you can get more information about this entire process.
Brecht Palombo: Cool.
Liz Brumer-Smith: Great. Okay. Today I am going to be talking about automating your due diligence. I have two companies that weren’t quite mentioned in the intro, and that’s because we were going to introduce them here. Note Investing Club and tapetechs.com are both of my due diligence support systems, or the programs that help you and other note investors with their due diligence. I’ll be talking about the difference between the two, but just so you understand what those two companies are, they are companies for due diligence.
Liz Brumer-Smith: This is me, Liz Brumer-Smith. I am the owner of Note Investing Club, Tape Techs, and I obviously am a note investor myself. I purchase non-performing notes and have purchased them for about six years, almost seven years now, and like he mentioned before, like Brecht mentioned before, we do purchase nationwide.
Liz Brumer-Smith: I am a full time note investor. I was previously a kindergarten teacher. If a little of my old teaching habits come out in today’s presentation, forgive me, but hopefully it’ll actually be an advantage, making this easy to digest and understand as I move forward. I do now also teach how to invest in non-performing notes. We offer an online program with two fellow note investors, Kimberly Banks Fawcett and Chase Thompson, at Note Investing Academy. Let’s get started with due diligence.
Brecht Palombo: Let me just say ... Let me jump in here for one minute, Liz, and just say that I’m going to go ahead, I’m going to put my side on mute so we don’t have any background noise. I want to bring up ... Liz, is it okay that we mention that you’re traveling the country full time?
Liz Brumer-Smith: Oh, of course.
Brecht Palombo: I think this is something that we should just bring up here because a lot of times, people start thinking about the note business. I get a lot of questions like, “Can I do this from anywhere? Can I...
Due Diligence is the second most time-consuming part of the note investment business (right after finding them). Scrubbing tapes and verifying mortgage details can take many hours to complete and add days to your investment process. On today’s podcast you will find out how to successfully automate that entire process
Sorry, this offer is now closed.
Podcast Audio:
https://s3.amazonaws.com/dp-site-files/audio/Note+Investing+Club.mp3Transcript:
Brecht Palombo: Welcome back everybody to another episode in the Distressed Pro Professional Interview series. Today I have Liz Brumer-Smith and if you’ll just give me a moment, I’m going to get her profile right here. She’s the principal at Seasoned Funding, LLC, a privately funded real estate investment and note buying company, who specializes in finding first lien, residential, non-performing notes for the company’s portfolio. They purchase one-offs and small and mid size pools nationwide with preference in Midwest, Southeast, and Florida. Liz, you’ve been doing this for how many years?
Liz Brumer-Smith: We’re going to seven years pretty soon.
Brecht Palombo: Wow. Going on to seven years, and over that time, Liz has developed some systems for her business, like any good entrepreneur should. And today she’s going to share one of those with us. In fact, she teaches more about this, and we’ll talk about that in a little bit, but she’s going to share with us how to automate your due diligence. And I don’t want to hold everything up here. I’m going to ask you, Liz, if you would just go ahead and let’s dive into it. I’m really looking forward to this. We hear a lot about folks who are looking for due diligence information. It’s one of the things they think, “Well, geez. If I ... ” We really focus on helping people find the notes, but a lot of people get nervous and say, “Well, after I find it, then what?” And, hopefully, this right here will help to answer that for them. I’m really looking forward to it.
Liz Brumer-Smith: Yes. Thank you so much for having me. I’m excited to be here and to be able to share the systems I’ve created for my business and hopefully be able to help other note investors improve their systems, especially in regards to due diligence.
Brecht Palombo: Cool.
Liz Brumer-Smith: I’m going to share my screen with you guys, and this presentation will be available. We’re gonna have lots of information that I’m going over. As you’re watching or listening to this, please make sure to take note, and at the end, I will also give you more resources for a place you can get more information about this entire process.
Brecht Palombo: Cool.
Liz Brumer-Smith: Great. Okay. Today I am going to be talking about automating your due diligence. I have two companies that weren’t quite mentioned in the intro, and that’s because we were going to introduce them here. Note Investing Club and tapetechs.com are both of my due diligence support systems, or the programs that help you and other note investors with their due diligence. I’ll be talking about the difference between the two, but just so you understand what those two companies are, they are companies for due diligence.
Liz Brumer-Smith: This is me, Liz Brumer-Smith. I am the owner of Note Investing Club, Tape Techs, and I obviously am a note investor myself. I purchase non-performing notes and have purchased them for about six years, almost seven years now, and like he mentioned before, like Brecht mentioned before, we do purchase nationwide.
Liz Brumer-Smith: I am a full time note investor. I was previously a kindergarten teacher. If a little of my old teaching habits come out in today’s presentation, forgive me, but hopefully it’ll actually be an advantage, making this easy to digest and understand as I move forward. I do now also teach how to invest in non-performing notes. We offer an online program with two fellow note investors, Kimberly Banks Fawcett and Chase Thompson, at Note Investing Academy. Let’s get started with due diligence.
Brecht Palombo: Let me just say ... Let me jump in here for one minute, Liz, and just say that I’m going to go ahead, I’m going to put my side on mute so we don’t have any background noise. I want to bring up ... Liz, is it okay that we mention that you’re traveling the country full time?
Liz Brumer-Smith: Oh, of course.
Brecht Palombo: I think this is something that we should just bring up here because a lot of times, people start thinking about the note business. I get a lot of questions like, “Can I do this from anywhere? Can I...
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Sándor Lau [How to Invest in Second Mortgages]
Junior mortgage notes or seconds can be a cheap way to source notes in the current frothy market if you use the right buying criteria. On today’s podcast episode, Sándor Lau will be sharing his strategy for buying junior liens and a few tips on what to avoid when looking at seconds.
Podcast Audio:
https://s3.amazonaws.com/distressedpro-files/podcasts/Sandor-Lau-Seconds.mp3Noted Financial
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Transcript:
Brecht Palombo: Welcome back everybody, to another episode of the DistressedPro Professional podcast series. I’m here with Sandor Lau. Did I say that right?
Sándor Lau: It’s Sándor. Like Sean Connery walks in the door. Or, you can remember Sándor, Lord of Gondor, if you’re a Lord of the Rings fan.
Brecht Palombo: Oh, okay. All right. Sándor Lau.
Sándor Lau: Yes.
Brecht Palombo: Now I’ve got it. All right, thanks. And I asked Sándor to be on here today because it was a Tuesday before Thanksgiving, and I had this wild spike in my traffic. We had our organic traffic tripled, almost quadrupled on a single day. And I said, “Wow, everything I’ve been working on has finally come to fruition.”
But in fact, what had happened was I looked, and you were written up in the Wall Street Journal. You were in the Wall Street Journal, and whatever keywords were in that article, people went to Google them and searched them, and just blew up the traffic on my site. And then I had to ... I actually didn’t have the membership, I had to buy a subscription to the Journal, just that day, to get in there to read your article.
Sándor Lau: Rupert Murdoch and the shareholders thank you.
Brecht Palombo: Ought to thank you, I guess. And so I went and I found Sándor, and invited him on here to talk to us about what all the buzz was about, there. And hopefully to educate us a little bit on how he’s doing what he’s doing and why.
Brecht Palombo: So can you tell us a little bit about your background in this, and how you came to be featured in the Journal?
Sándor Lau: So, yeah. It was 2007, beginning of the recession before really the data had come in. I had come back to the United States from New Zealand, where I had gone to grad school and had a career as a filmmaker, and realized, “Oh!” The artist part is really great. The starring part, not so great.
Brecht Palombo: That was good, yep.
Sándor Lau: So I read up, tired to figure out what I could do to build a financial future, and I realized: Real estate. This is it. I read all these investing books, I tried to find one that told you about the stock that pays rent, but I couldn’t find a single one. So I realized, this is my thing. I got a regular job, so I can get a W2 and invest in real estate and get loans.
Brecht Palombo: Yeah.
Sándor Lau: And realized that collecting rent is a little bit harder than it was described in the books.
Brecht Palombo: Right.
Sándor Lau: So I said, “Okay, there has to be a better way.” Changing the world and changing other people is way too hard, but changing yourself in adapting can yield great results. So I’m a voracious reader. I’m always reading books about business, investing. And I read this book that had one paragraph in the entire book. It says, “Oh yeah, instead of ... ” It was about buying foreclosures, or you could just invest in those. Then I’m like, “Oh, doin’ that.” I read all the books I could find, publicly available, at the time, which was three.
Brecht Palombo: Yeah.
Sándor Lau: And one of ’em had the author’s post office box in Florida, and one of ’em that’s got an email. I’m like, “I wanna learn. Will you teach me?” He was like, “No, but go to the Paper Source Conference and learn from the people there.”
Sándor Lau: And I did. That was 2013. I was still in a rough spot myself. I had to pay all these mortgages, fix things when tenants break and steal things, mess with the electrical, and then called the city and said, “Oh, look at this. Slumlords providing substandard housing. Look at this electrical that’s all broken.”
Brecht Palombo: Yeah.
Sándor Lau: Among other shenanigans, microwave out the window, naked people running down the hallway.
Brecht Palombo: Oh, perfect.
Sándor Lau: Bodily fluids off the balcony onto the other tenants.
...
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