Thoughts from the desk of Bob Repass…
On a recent flight home from attending an industry conference Eddie and I looked at each other and asked “Why do we attend trade shows?” We tossed around many different opinions and reasons, but when we sat back and took a look at things it became apparent to us that there are two things that in our mind make for a worthwhile event; Content and Connections. If you don’t learn something new and/or connect or reconnect with someone that adds value to your business then why attend?
Having attended literally “hundreds of trade shows” over the years, we do not take lightly the responsibility of providing a venue that creates an environment where attendees, sponsors, vendors and industry leaders can all connect and network as well as learn better ways to trade and invest in real estate secured notes through exclusive market-leading content.
We are both seasoned veterans of the note industry and things are much different in today’s market. Identifying opportunities in today’s real estate and note investing markets is no easy task. Especially when there are risks out there you may not see coming. That has been our focus in creating NoteExpo 2015 to help note investors with the “in-the-trenches” issues you face every single day.
It’s with that in mind that NoteSchool, Colonial Funding Group and Colonial Capital Management proudly sponsors this year’s acclaimed line-up of sessions, speakers, vendors and sponsors. You will not find a better, more connected group of industry leaders gathered under one roof.
If you were unable to join us this year, please go ahead and “save-the-date” for NoteExpo 2016 taking place November 4-5, 2016.
The Trading Corner
Partials as Passive Investments
By Martha Speed
One of the best investments in a self-directed retirement account are those that are passive, allowing you to collect mail box money or a lump sum of cash with little time involved. Right?
Most companies in the self-directed retirement space are also in agreement that one of the best investments for retirement accounts are passive, cash flow investments such as real estate notes. This is why Eddie and I have spent years building our retirement account with performing notes.
There are several factors that have allowed us to build retirement accounts that are unique advantages for us and to passive investors buying partials.
- Experience & Exposure: Experience and exposure in the marketplace has given us opportunities to buy real estate notes for over 30 years from various sources and find creative ways to purchase and sell the notes to passive investors.
- Present Value vs Future Value: Partial Investors receive the most valuable part of the note, payments being made now! What Eddie commonly refers to at the “front end.” Future payments have less value in the market place.
- Term: Market cycles, like we are experiencing today, may dictate the full purchase of a note. For various reasons, many investors are looking for a short term investment which could be from 2 years to 15 years. Our mind set has been to buy long term, 20 to 30 years, allow the partial buyer the short term investment they are seeking.
- A Vested Interest: Partial investors receive their entitlement first before we receive our residual interest. The support we give to our partial investors protects their investment in the note and our residual interest. We’re not just selling a note; we are in the deal with you!
Combined, these factors offer the Perfect Combination for investors that buy partials. This is true for many NoteSchool students preferring the passive investment due to the knowledge, interest and time constraints, which do not allow them to be in the note business full time. As well as professionals in other industries that want to grow wealth or retirement accounts with passive alternative investments such as performing notes.
Buying partials may be a great addition to diversify your investment portfolio. Feel free to contact me to schedule a meeting during NoteExpo in regard to buying partials or come by our booth and let us know how we can help you with passive investment opportunities.
I look forward to seeing you at NoteExpo 2015!
Blight Elimination Programs
By Eddie Speed
If you have ever attended a live NoteSchool event or invested in one of our on-line courses, you have heard us talk about the 3 things that can really hurt you in the note investment business: taxes, title and blighted property.
All three of these problems have solutions. Solutions cost time and money so we always make sure these issues are accounted for in our budgets and fall within our personal risk tolerance before we invest. Having said that, what if you erred and own a note on a run-down abandoned property that you just want out of?
In 2010, the U.S. Treasury Department put aside over $7 Billion to help borrowers avoid foreclosure and stay in their homes. Due to the inefficient roll out of these funds, many homeowners simply gave up and moved out of their homes. These so called “zombie” properties have become a huge neighborhood problem in several states. In response, the Treasury Department has re-allocated a portion of those unspent funds and using it to pay off lenders, acquire the property and tear down the blighted property.
Well if it is located in 1 of 6 specific states, there may be a government program that can help. It’s called the Blight Elimination Program.
The Special Inspector General for Troubled Assets Relief Program (SIG TARP) is calling the Treasury’s Blight Elimination Program a “significant shift” in the use of Hardest Hit funds. Unlike other HHF assistance, the Blight Elimination Program does not provide direct assistance to homeowners, instead allowing for substantial payments to cities or counties, land banks, non-profit and for-profit organizations for demolition and other blight elimination activities.
The Treasury approved the HHF Blight Elimination Program for cities in seven states including Alabama, Illinois, Indiana, Michigan, Ohio, South Carolina and Tennessee.
The Top Ten With…
There are many people behind the scenes that drive the engine to make our companies successful. In our continuous Top Ten series, this month we turn the spotlight on one of these people so you can get to know them better. This month the spotlight is on one of our newest team members and key part of our road crew, Kevin Moore.
How long have you been with Colonial Funding Group/NoteSchool: 3 months?
What is your role at Colonial Funding Group/NoteSchool: Student Mentoring?
Favorite Color: Blue
Favorite Food: Anything Italian
Favorite TV Show: Arrested Development
Favorite Movie of all-time: Fargo
Last Book You Read: The Worldly Philosophers by Robert Heilbroner
Favorite Sports Team: NY Giants
The 3 people you would like to have dinner with (dead or alive): Thomas Edison, Thomas Jefferson and Warren Buffet.
What do you like best about working at Colonial Funding Group/NoteSchool: In a word, commitment, it is so refreshing to get up every day and work with a team of enthusiastic people who are committed to helping people be successful in the note business?
Special Editorial Feature
Presidential Politics: Is It Really This Crazy?
by Kristin Repass
By now, I am sure you have watched a couple of presidential debates, seen numerous news reports on Hillary Clinton’s emails, and had an office pool on whether or not Vice President Joe Biden would or wouldn’t jump into the Presidential race. Or maybe you learned some new insults from Donald Trump, been inspired by former business head Carly Fiorina, or lost count of how many Republican candidates are actually running for President.
As someone who is very interested in the world of politics and a recent graduate majoring in Political Science, I have found this presidential race to be one of the most interesting our country has ever witnessed. According to the most recent polls, over 50% of those polled on the Republican side support a candidate who has no political experience whatsoever and frontrunners Donald Trump and Dr. Ben Carson have double the support of any other candidate in the rest of the field.
On the Democratic side we are seeing the opposite of the bloated Republican field, with only two announced candidates gaining any sort of traction up until now in Hillary Clinton and Bernie Sanders. As outsiders are currently running the roost on the Republican side, the Democratic race seems to be a race of the long-timers. Self-professed Socialist Bernie Sanders has been a Member of Congress since 1991, Hillary Clinton first came to Washington, D.C. in 1993 as the First Lady and has been firmly entrenched in the Democratic establishment ever since.
So while on one side we have newcomers battling to see who can be tagged the biggest DC outsider on the Republican side, we have 2 candidates, on the other, vying for who has the most DC experience to get the job done as President. With that said, I think it is fair to say that at this point in the race if anyone thought a Socialist would be polling near even or above Hillary Clinton in some early and influential states we would be amazed, and yet that is exactly what we are seeing. So while we have two completely different scenarios, we are seeing the extreme wings of both parties polling extremely strong. Add this to the fact that there continues to be loud chirping that former New York Mayor Michael Bloomberg might join the race as an independent and we are in for quite a ride in 2016.
Keep your eyes on the upcoming debates as I fully expect that as both fields begin to be whittled down, we will see much more details and talk on specific policies surrounding foreign affairs, U.S. tax structure, healthcare, immigration, and spending as well as the economy (and hopefully housing); and the candidates could not be more diverse on these topics.
Quote of the Month
“Entrepreneurs and their small enterprises are responsible for almost all the economic growth in the United States.”
– Ronald Reagan