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Thoughts from the desk of Bob Repass…

Start spreading the news, I’m leaving today. I want to be a part of it, New York, New York. The greatest city in the world – New York City. I’ve always loved visiting New York City. There is no other place I have been quite like it. Last week Eddie, Charles and I attended the MBA Secondary Market Conference in New York City. One of our goals was to bring Main Street to Wall Street as we met with several potential capital partners as we continue to grow our loan trading platform as well as our capital management services.

We all headed up a few days early. Eddie and I were joined by our wives, Martha and Angie. Unfortunately Charles’ wife Roxanne could not make the trip. We spent a couple days like true tourists; attended a Broadway show, a New York Yankees game, a visit to the new 9/11 Memorial, as well as a walking tour of Battery Park, Wall Street, Chinatown and Little Italy! Let’s just say we crammed a lot into a few days. My wife Angie and I also scored two tickets to see The Late Show with David Letterman!

Our Senior Management team has made a commitment over the past several months to invest time and resources in participating in more industry events. Our primary focus is not only to raise capital, but to network and develop compatible vendors that we can leverage our relationship with in order to help our network of students and investors take your business to the next level.

Be on the lookout for some new and exciting information on data and analytics, property preservation, foreclosure timeline management and default title services rolling out at the NoteSchool Summer Summit, July 11-13 at the Gaylord Texan Resort in Grapevine, Texas. Register today!

Bob Repass
Managing Director

The Trading Corner

Really – It’s OK to be a Passive Note Investor

By Martha Speed

Time is everyone’s most important asset. Why? Because there are only a limited number of hours in the day. This means everything we do in life must be prioritized from the most important to the least important. We must complete the most important tasks first and let others fall to the bottom of the “to do list”. Why? There isn’t enough T.I.M.E.

All of us, including myself, go to NoteSchool or other similar training and leave with the intention or promise to start buying notes, to grow our “Roth” self-directed retirement accounts or to just “make this happen”! But what is the reality? There aren’t enough hours in the day and those things fall to the bottom of the list because at this moment in time, it isn’t a priority.

Think about it this way. Where is your time best used? What is the value of your time? Is it best used working toward your career goals as a more passive note investor? If so, the leveraging of someone else’s time, skills resources and assets is Key. Partner with Colonial Funding Group to get more deals done, make sure your return will be, “good enough” and allow both of us to devote our time to what we do best.

Ask yourself this question. Will it matter a year from now? The answer is Yes! Why? By investing in performing real estate notes you become “the bank”. Performing loans provide solid, stable and predictable investment returns. Your buying power is today! Time is Money!

If a passive investment is right for you, please contact me at [email protected] to take the next step. We look forward to working with you and to your success!

Case Study

$100 Roth Model

This case study illustrates how you can make extraordinary, tax-deferred returns by architecting a deal and applying our leveraging technique within a self-directed IRA.

NoteSchool Mentoring Student, Mahmood Motani, contracted to buy a performing note for $56,000. Before closing on the transaction, he offered the note to an anxious money investor (stock market refugee) for $62,400. The anxious money investor will make an 11% yield, while Mahmood was able to make a quick $6,400. That quick profit is not the only profit Mahmood will make as he kept a long-term position in the note.

This note has a balloon payment due in 144 months. When Mahmood structured this deal, he invested $100 from his IRA for a part of the balloon payment. When the balloon pays off, Mahmood will receive $13,115.

The Numbers

The value of the single family home (collateral) $110,000
Original loan (note) $84,000
Original terms 30 years with a 15-year balloon
Origination date 12/05/2006
Maturity date 01/01/2022
Number of payments remaining 144
Monthly payments $653.35
Total invested $100
Total return ENOUGH!

The Steps

  1. Joined the NoteSchool mentorship program
  2. Attended numerous 3-day classes
  3. Created a self-directed IRA
  4. Networked with anxious money investors
  5. Put a purchase agreement on the note
  6. Created contract with anxious money investor
  7. Mahmood made $6,400 at closing
  8. $100 from IRA invested in the purchase
  9. Anxious money investor receives $653.35 for 144 months
  10. When the note balloons, the anxious money investor will receive $52,740.59 and Mahmood will receive $13,115.30 in his tax-free, self-directed Roth IRA.

Employee Spotlight

Top Ten with Duane Gibbs

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 Duane Gibbs, Director of Sales for NoteSchool.

How long have you been with Colonial Funding Group/NoteSchool?
7 years

What is your role at Colonial Funding Group/NoteSchool?
Director of Sales

Favorite Color?

Favorite Food?

Favorite TV Show?
Chicago Fire

Favorite Movie of all-time?
Planes, Trains and Automobiles

Last Book You Read?
The Leadership Secrets of Colin Powell

Favorite Sports Team?
Baltimore Orioles

The 3 people you would like to have dinner with (dead or alive)?
Cal Ripken Jr., Bobby Flay, and Bill Gates.

What do you like best about working at Colonial Funding Group/NoteSchool?
What I like the best is that we all have the vision, day in and day out, to help change people’s lives and create new resources for them to succeed.

Quote of the Month

“I made my first investment at age eleven, I was wasting my life up until then.” – Warren Buffett

Survey Says…!

Which do you have at your Thanksgiving Day Dinner?

Connect With Us

Are you on Twitter? If so, be sure to follow us on Twitter @NoteSchool and @ColCapMgmt, if not, why not?

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