Note Inventory is dead

14 Replies

I just attended the Noteworthy Summit in Irvine, CA (boy I thought South Florida was ritzy, that place was something else), anyway as @Martin Saenz was saying there’s stuff out there you just have to get off your duff.

One speaker who was probably the smartest person I’ve ever seen in this industry and quite frankly just in general, was Matt Kelley. He said after speaking he was going back to the office to work on a pool of 2700 notes.

Of course he’s been around a long time and is smart as hell but still, it’s a business and really some of the things Martin mentioned, if you don’t do them do you think you will stay in business long?

@Robert B.  so how do small investor compete with these big players.. they buy the big package cherry pick by the time the notes get to us little guys we get the left overs.

this is why I just skipped that and created my own niche with QUALITY performing notes that you don't have to bid on or compete for.. granted returns are not as much as what those hope for in the NP space but there is no work to them.. they are there and ready to go.. just buy them.. its all teed up.. spend zero time on all this work.. NPN space is great if you want a job and or like all that stuff.

Or invest with a fund that does the heavy lifting cant see why the one off individual would take this risk.

I can't speak for others but I'm after the low hanging fruit that's ripe for the picking. Maybe it sounds bad, I don't know, but my goal with investing is not to spend all day "pounding" the phone calling, but rather to develop a steady source of passive income so I can do what I enjoy such as playing golf with buddies on a Wednesday. (Will be at Lakeview in Harrisonburg tomorrow)

In that regards note inventory isn't dead but it's much less accessible and low hanging fruity than it used to be.

PS: In the several years that I've been participating on this forum, there is like 1 guy that asked me if I had notes for sale. People really aren't looking very hard.

Hi @Jay Hinrichs . How do small investors compete? Well I don’t think you can. However I do think you can find little cracks you could squeeze into. Really I can’t give you a definitive answer but I’m working on it. Believe me I wouldn’t be flying across country for nothing.

As for what you do, I have no doubt from your words that you are a man of integrity and offer a good product. Believe me that Texas thing I have going that you know about I enjoy the monthly ACH’es every month without any work on my part. If I had 10mm I would stick with things like that.

However I don’t have that kind of money so I have to take another route. Besides I’m enjoying the process in the meantime and it’s not like I have to show up to an office and answer to anyone.

Hope you are well by the way!

Originally posted by @Robert Beryl :

I just attended the Noteworthy Summit in Irvine, CA (boy I thought South Florida was ritzy, that place was something else), anyway as Martin Saenz was saying there’s stuff out there you just have to get off your duff.

One speaker who was probably the smartest person I’ve ever seen in this industry and quite frankly just in general, was Matt Kelley. He said after speaking he was going back to the office to work on a pool of 2700 notes.

Of course he’s been around a long time and is smart as hell but still, it’s a business and really some of the things Martin mentioned, if you don’t do them do you think you will stay in business long?

 Hey Robert, did you ask Matt how you can jump in on the deal?  He may be seeking some investor dollars or buying partners;)

Martin

Originally posted by @Patrick Desjardins :

I can't speak for others but I'm after the low hanging fruit that's ripe for the picking. Maybe it sounds bad, I don't know, but my goal with investing is not to spend all day "pounding" the phone calling, but rather to develop a steady source of passive income so I can do what I enjoy such as playing golf with buddies on a Wednesday. (Will be at Lakeview in Harrisonburg tomorrow)

In that regards note inventory isn't dead but it's much less accessible and low hanging fruity than it used to be.

PS: In the several years that I've been participating on this forum, there is like 1 guy that asked me if I had notes for sale. People really aren't looking very hard.

 Hey Patrick, that's a true statement.  I see a lack of hustle in the industry.  I've built my portfolio since 2013 through developing peer and institutional relationships.  The successful note investors that stand the test of time usually spend ample time connecting with folks in the industry.  The newer folks that don't have connections need to pound the phones much more.

Hi @Martin Saenz well actually I didn’t. Have you ever met that guy? I’ve met people like him before but and you can easily basically say the wrong thing. I just viewed it as an introduction.

He literally said during his presentation “If I sound like I have a massive ego, it’s because I do and I’ve earned it”.

That may put some off but like I said I’ve met people like that before. Don’t get me wrong he was a complete gentleman and I spoke to him afterwards.

I hope that doesn’t sound like an excuse just my take on how to assess the situation. We are all human but this guy was on another playing field.

I did enjoy Patrick Desjardin’s comment that in all these years nobody had asked if he had a note to sell. Eye opening.

The good inventory is definitely out there, you just won't find it using Google. It takes steady effort over time and you have to make a lot of calls and turn over a lot of rocks.

Originally posted by @Robert Beryl :

Hi Martin Saenz well actually I didn’t. Have you ever met that guy? I’ve met people like him before but and you can easily basically say the wrong thing. I just viewed it as an introduction.

He literally said during his presentation “If I sound like I have a massive ego, it’s because I do and I’ve earned it”.

That may put some off but like I said I’ve met people like that before. Don’t get me wrong he was a complete gentleman and I spoke to him afterwards.

I hope that doesn’t sound like an excuse just my take on how to assess the situation. We are all human but this guy was on another playing field.

I hit you up offline:)

Martin

Note note investing is a relationship business. Creating relationships with asset managers and building a team that can help you execute your due diligence and acquisition protocols is essential. Like any business to make money you need to dig your heels in, setup methodologies that help you reach your goals and execute your plan with multiple exit strategies. 

Originally posted by @Bob Malecki :

Note note investing is a relationship business. Creating relationships with asset managers and building a team that can help you execute your due diligence and acquisition protocols is essential. Like any business to make money you need to dig your heels in, setup methodologies that help you reach your goals and execute your plan with multiple exit strategies. 

Plus there will always be bad debt.. I think back to my best days at the court house steps and that was 2004.. this is not Canada.. 

Note investing can be a business, an investment, or somewhere in between.  Further, tracking down npn in bulk, analyzing thousands, buying packages, reselling some, working on getting the remaining reperforming and foreclosing and then disposing of the rest is far different than analyzing two or three performing notes offered by a note broker and purchasing one or two and collecting monthly payments until they are paid off.  Really apples and oranges. 

Developing relationships with asset managers is no doubt a solid strategy, but I see no one talking about developing ongoing referral sources from other financial professionals like attorneys (any kind), accountants and financial planners. get just a few of these guys in your corner referring one or several of their note-holding clients to you per year and you now have an ongoing referral system that keeps on giving. Granted, you oftentimes need to EDUCATE them as to what you do and how you can help their client but it pays off big in the long run.

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