Thoughts from the desk of Bob Repass…
Three Great Events, One Great Location, One Great (Long) Weekend!
Where will you be July 10th – 14th? If your answer isn’t at the Gaylord Texan Resort in Grapevine, Texas, then you will be missing out! NoteSchool is welcoming everyone to our hometown for a jam-packed series of events where you can learn, trade and invest in the note industry.
We kick things off Thursday, July 10th with a Special Access Open House for our Diamond and Titanium students that are attending our Summer Summit. Speaking of our Summer Summit, there is still time to register. It runs from Friday the 11th through Sunday the 13th.
This month we read The Old Man and the Sea by Ernest Hemingway. I first read this book when I was in high school. Yes its been a while
We have an exciting line-up of speakers, sponsors and vendors that you will be able to network and learn from in order to take your business to the next level. Plus you will not want to miss our Featured Speaker U.S. Congressman Roger Williams (R-TX) who will address our audience on Friday afternoon with an update of his efforts on Capitol Hill to help reduce the impact of regulations on our industry.
By the way have you registered your young entrepreneur (ages 13-19) for our first Notes for Teens July 11-12 also taking place at the Gaylord Texan? If not – why not? Does your teenager understand the difference between spending and investing? As you know, here at NoteSchool we have a passion for teaching. And that passion goes beyond our normal training classes on note investing. We feel there is a huge need to educate today’s youth on financial responsibility as well as financial literacy. Get your teenager registered today.
Want to find out more about note investing? Then sign up today for our Rich Rewards 3-day training class (also at the Gaylord Texan). It runs Saturday the 12th – Monday the 14th. Register now.
Our whole team has been working endlessly to make this the best weekend possible. Please come join us!
The Trading Corner
Really – It’s OK to be a Passive Note Investor – Part 2
By Martha Speed
At Colonial we use the acronym K.I.T. to identify the three components every investor must have to buy Real Estate Notes. KNOWLEDGE, INTEREST, and TIME. It’s a simple formula but you can’t “close” if you don’t possess all three. With over 10 million nonperforming real estate notes on the market we know interest is High! If not, I hope I have your attention with the number of real estate secured assets available to YOU, the Passive Investor! Money making opportunities abound in the note business, on both the performing and non-performing side!
Many of you responded in regard to our last article that T.I.M.E. is indeed an obstacle to closing deals. Another piece of the puzzle is KNOWLEDGE. Do you have the expertise or KNOWLEDGE to buy real estate Notes? Can you work through the due diligence process to analyze:
- title issues and how to resolve them
- property values in today’s every changing market
- property taxes or homeowner association fees that are due
- the time line it should take to close the deal
- the difference in the process of a non-performing note vs. performing note
Take just a minute and ask yourself these three questions:
- Do you understand how to use your self-directed retirement accounts as an investment vehicle?
- Are you taking advantage of Colonial’s Fund to deploy capital?
- Do you have the TIME and KNOWLEDGE to CLOSE the deal?
If not, do you need to leverage someone else’s knowledge? For passive investors, leveraging someone else’s Time & Knowledge (skills, resources & assets) is KEY! At Colonial our goal is to help our Passive Investors create Safe Passive Cash Flow while preserving or building wealth with a note portfolio by investing in Real Estate Secured Notes.
If you’re OUT of the market Now, You’ll MISS the Opportunity!!
Passive Investments in Real Estate Notes can yield good returns and I’m sure you would agree more secure than the traditional investments such as the stock market. So are you ready to close a deal today? Then be sure to schedule a time with me at our upcoming Summer Summit email me at MarthaS@ColonialFundingGroup.com. We have deals ready for you to buy today!
You Gotta Love the Hardest Hit Funds Program
This is an example of a typical scenario in which the property owner lost his job and couldn’t keep up with the payments. In addition, the property owner owed more than what their house was worth. The owner wanted to stay in the home but the bank was simply unwilling to work with them.
Titanium student Jason Whaley found this asset on a tape and was part of a small pool of notes that he decided to purchase. Based upon the collateral file and Ownership & Encumbrance report, he figured that his best plan was to do a loan modification.
Once he bought the note, his insight was correct but the property owners didn’t have much money to pay a reinstatement fee or the arrearage on the loan. About this time, he learned about the Hardest Hit Funds by attending the, always updated, NoteSchool trainings.
He successfully encouraged the property owner to go through the hardest hit funds enrollment process and they were approved. This enabled Jason to structure a loan modification without requiring the property owners to come up with a lump sum of cash-the hardest hit funds came up with the lump sum payment on the owner’s behalf.
|The value of the single family home (collateral)||$40,000|
|Original loan (Unpaid balance)||$85,725|
|Original terms||30 years|
|Note purchase price||$10,862|
|Property taxes, legal misc. paid||$1,539|
|Proceeds from hardest hit funds||$30,000|
|Reinstatement fee received||$2,000|
|New loan modification||$52,000|
|Total profit (lump sum)||$19,599|
|Proceeds from loan modification||$358 per month for 30 years|
And now Jason has a re-performing loan modification that he can sell a full or partial to a passive investor!
Top Ten with Kristin Repass
This month’s Top Ten has a little different twist. My daughter Kristin who is a senior at Texas Christian University majoring in Political Science with a minor in Criminal Justice is working as an Intern for The Keelen Group out of our office in support of our efforts to build the Seller Finance Coalition. You can find out more details on the SFC at www.sellerfinancecoalition.org or drop by their booth at our Summer Summit and meet Kristin in person!
How long have you been with Colonial Funding Group/NoteSchool?
What is your role at Colonial Funding Group/NoteSchool?
Working with The Keelen Group, a Washington D.C. based lobbying firm to help advance the Seller Finance Coalition with membership and legislation.
Favorite TV Show?
24, Criminal Minds, Survivor
Favorite Movie of all-time?
How to Lose a Guy in 10 Days
Last Book You Read?
Kennedy and Reagan: Why their Legacies Endure by: Scott Farris
Favorite Sports Team?
The 3 people you would like to have dinner with (dead or alive)?
Ronald Reagan, Winston Churchill, and Benjamin Franklin
What do you like best about working at Colonial Funding Group/NoteSchool?
I like being able to learn and have insight into what my dad has spent his career doing while being able to help him through my passion and studies in Political Science.
Quote of the Month
“It’s never a perfect day unless you help someone who can never hope to repay you.”
– Lewis Katz