This week’s NSTV guest is Bob Repass, Managing Director of Colonial Funding Group and Colonial’s top market analyst. Along with Eddie Speed, he shares overall responsibility for the management of the firm, while focusing on investor relations and regulatory compliance. He’s a 25-year veteran and expert in the seller finance mortgage and distressed asset industry. Over the course of his career, he has purchased over 40,000 performing and non-performing mortgage loans totaling over $2 billion dollars in volume, giving him an unparalleled track record in the industry.

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Many note investors occasionally need to borrow money to expand their business in much the same way that an owner of rental properties will need to borrow money to buy new houses. Even though traditional banks understand the process of loaning money with a rental house as collateral, they’re often unfamiliar with the process of loaning money with notes as the collateral. That’s what our special guest Bob Repass, along with Eddie Speed, Joe Varnadore, and Brian Lauchner will be discussing.

Because of the difficulty of borrowing money from traditional lenders, owners of note portfolios in years past often had to sell off notes to raise money. But in the process, they were losing their monthly income from their notes. This ended up causing them to have to seek income elsewhere, which often led them away from note investing to other careers.

This created a huge niche for Colonial Funding Group to fill. Unlike traditional lenders, Bob Repass and the other experts at Colonial understand the note business and the process of hypothecation, which is using note assets as collateral to borrow more money to expand your business. This allows you to continue to grow your business rather than closing it down. You also continue getting the monthly income from your notes to live on.

If you need to recapitalize your personal bank to grow your note business and expand your note portfolio without sacrificing future income, you’ll love today’s episode of NSTV. You’ll learn a lot as Bob and Eddie share their decades of wisdom in the trenches of the note business. Be sure to stick around a few extra minutes for the After Party to hear Bob, Joe, Eddie, and Brian answer some very important questions from note investors.


2:45 | Joe Varnadore gives the latest news recaps: Mortgage rates slide for 3rd straight week. Cincinnatti, Ohio has the fastest selling housing market in US.

5:30 | Guest introduction: Bob Repass, Managing Director of Colonial Funding Group, plus NoteSchool founder Eddie Speed. Bob describes a void in the market when people recapitalized their business by selling their notes or partials, but lost income in the process. That’s why Colonial allows borrowers to recapitalize by pledging current note assets in order to buy more.

11:50 | Eddie describes how traditional lenders and loan committees often don’t have the experience to understand how to loan money with notes as collateral. This created the opportunity for Colonial to provide funding to note investors who leverage their portfolio to expand their business.

14:20 | Bob describes the ideal client he likes to work with (someone with 10 to 100 notes in their portfolio). They don’t have to discount their notes to sell them, and can still borrow money. He describes the due diligence to evaluate the value of a note portfolio.

19:10 | Bob describes the extra benefit of using Colonial’s asset based lending program; he shows people how to create better quality notes. He can be contacted at: [email protected]

21:40 | Brian and Joe return. Brian compares pledging notes to borrowi money as being similar to using a rental house as collateral for a loan. By borrowing money with your notes as collateral, you still keep your income coming in.

24:00 | Brian describes today’s sponsor, where you can buy and sell notes.

27:55 | After Party begins. Bob and Eddie answer questions like why traditional banks don’t tend to understand the note business. Bob says he can lend up to about 55% of the monthly note cash flow. He can also loan money based on land, commercial property, or mobile home developments. Bob and Eddie describe note investing in California. (Eddie describes a deal where John Travolta was involved.) Eddie describes how inflation affects note investing.

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