GDNIP Ep 16: Open Mic Night: You Ask, We Answer

Writing new beginnings, Gail and Chris open the first ever open mic night of Good Deeds Note Investing Podcast. Getting questions from people interested in investing – be they newbies or those who are in the industry for quite some time – they provide advice coming from their own personal experiences and insights. In this first installment, Gail and Chris answers questions about doing seconds during the foreclosure process, buying land contracts from a toxic asset list, licensing requirements to being a note buyer, process on bidding, hunting people, keeping track of your files, and more.

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Gail Anthony Greenberg & Chris Seveney Open Mic Night: You Ask, We Answer

Open Mic Night: You Ask, We Answer

This is Gail and Chris welcoming you to Good Deeds Note Investing Podcast’s first ever open mic night. It’s a chance for you to come on and pick our brains and stump the band. We’re here to answer all your questions. Advanced and simple, it doesn’t matter. We welcome every question. Mostly, we welcome the opportunity to help you build your confidence so that you feel like you can get into the note investing game and enjoy yourselves. Look for us to be here with you. Bring your questions, everyone’s welcome. Thank you.

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This is our first open mic night. What we wanted to do is we start holding these for people to come on and talk about questions they have or urgent needs. There were a lot of different Facebook groups that people might post to and get a lot of different answers. You might be in the middle of due diligence or a training class or a deal or even some borrower not performing and an issue may come up.

They’re trying to make bids and not knowing what to do. There are lots of tapes out right now. REO and note or people getting those tapes, picking out bids.

For those people who wanted to have this open session, ask questions and we’ll try and answer them as best as we can. As we always say, we’re not accountants and attorneys. Take our advice with a grain of salt. We’ll tell you what we would do. It doesn’t mean it’s right, wrong or indifferent, who knows, but it’s sometimes based on some of our experiences.

We’ve done pretty well so far. We’ve made horrible mistakes or just little mistakes.

We want to start. There’s a few that have come through that I found interesting that I want to touch upon that was brought up by Karen who mentioned she was doing seconds. I’ve run into this as well where during the foreclosure process, they’d been looking for full payment history. When it’s been owned by some of these larger banks or funds that go back ways, especially if it’s going back to the crisis many years ago, that data doesn’t exist.

She sold her house and they had lost all her information. I don’t even know how they reconstructed it to figure out what the payoff was.

I’m curious if you’ve run into that. I’ve run into it once but I’m curious if you have.

No, I haven’t. How did they resolve it in your case?

One of the things was you only have to go back until they stopped performing. If someone was paying and I will just pick dates, 2000 to 2010, they’re performing until that time and then they stopped performing in 2010. You need to show the history from that point in time. If you can’t recreate it, two things can happen. The borrower has to prove also that they’ve been making the payments. The borrower would have to somehow try and prove that they made those payments. I don’t know how many else have bank statements that go way back when. I don’t even know who I was banking with in 2010 or 2012. The other thing too is if you do have the pay history, that might be off by a year. One of the things you may want to do is bite the bullet and say, “It was non-performing as of this date for the pay history,” just so you’re not getting that fight with the borrower which will end up costing you legal costs and time. What are your thoughts?

If you can’t go back as far as they want you to, it doesn’t matter if you’re willing to wave things. It’s your rights that are in a way the most affected because the total amount that you can get is what is not going to be established. I ran into a similar situation. I bought a contract for deed in South Carolina. The borrower is marked five months late and still marked five months late. It’s not such where I called the borrower, he called me. Everyone should know what the setup is. Some servicers, if you are not using them to do your borrower outreach, if a borrower called in, they’re going to give them your phone number. That’s what happened to me and the guy as soon as I picked up the phone, he was screaming into it and talking about how he has never missed a payment.

First I put it back on him to like, “You show me how you made all the payments.” He was like, “I’m not going to go back eight years.” He was so adamant and it sounded like it could go to court like he was that exercised about it. I was able to get payment records from the previous servicer and back pretty far to when these supposed payments were. The payment histories are very hard to read. Some of them are often very garbled. I was able to determine that it didn’t look like anything was missing. I couldn’t read them but I could see that there were twelve payments most years. I’m like, “We’re going to call it even.”

People on here want to see a pay history. I’m pulling one up right now on the computer so you can see the confusion.

In case you have trouble sleeping, this will help. You could read this.

Note Investing: Notes tend to be higher-value when you get outside of the big cities, but there are plenty of rural and small town properties that are not as expensive.

Karen, I hope that answered the question. Talk to your attorney because certain states are also different. Gail and I typically don’t play in the second round, but I’m guessing it’s the same as firsts. When you’re foreclosing, it won’t matter whether it’s a first or second. Try to piece together as much of that pay history as possible. Try and find out now who went back through the time to find out who the owner of the note was and who they had been servicing. One thing that I make sure when I look at assets I buy, I make sure that nothing I bought to date has been self-serviced because that can lead to a lot of problems later on.

It’s something that you and I do routinely but I don’t think everyone does. When we’re doing due diligence after an accepted bid, we always ask for the pay history right then and there. You’ll get as much as you can easily get at that point. If the person you’re buying from has only had it for a short time, getting that previous pay history could be very challenging, but at least you would have the more recent stuff.

Rudy asked about our Facebook group called Notes and Bolts where we have a toxic asset list. Under the announcement section, there’s a link to where you can click on that link and fill out a quick form and I’ll send you a link for those assets. What that consists of is a lot of us have been buying land contracts or contract for deeds over the past year and those can get pretty hairy and messy in regards to the collateral. Ones that have either burnt down, the house isn’t there or there could be $100,000 worth long dues on the property. We’re trying to save people $135 fee for the O&E report that it’s already there and we’ve already put the history for up on that list.

Speaking of Rudy, he has asked if we can discuss licensing requirements of being a note buyer. His state requires note buyers to have a license to purchase notes. That’s an interesting question with many possible answers.

Georgia is a state with licensing. I was on their website and there was another comment that was updated that said once you hit five notes. Georgia is one of those states that it’s fuzzy.

Even attorneys don’t agree on what the rules are, I find. I’ve gotten very different answers. Illinois is a state where you need a license. Normally people can fly under the radar unless they need to do something illegal. That’s when it becomes an issue. Kentucky has very strict rules and very steep fines.

In Kentucky, you have to have $1 million to get a license. It’s usually for mortgage lenders that basically lend money. It’s not a note investor-friendly state. There were some ramblings about Maryland. In Maryland, you do not need a debt collectors license. There were some ramblings about that, needing it or not needing it. That has come through and passed down that you do not need a debt collector’s license in Maryland.

For the Washington State also but I have seen very few from there. They tend to be higher value though when you get outside of the big cities. There are plenty of rural and small-town properties that are not as expensive and you could see to believe. It’s funny that there are certain areas of the country that you tend not to see a lot of notes from. I don’t know what your theory about in this, but it seems like the state of California for example, the hedge fund ends up buying it from banks, the big ones. The normal thing that happens is that they’ll keep the best ones and they’ll sell off the worst ones. Then there might be a middle group that will try to work for a while and then if it goes badly, they’ll sell them and if they get them to work. For that reason, I don’t see Colorado notes. I don’t see California in lots of places.

The Nationwide Licensing System has every state where you can click on the state and see what the licensing requirements are if you do or do not need one. That’s a good place to start if you’re looking into a specific state. You can go on there and look specifically.

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Siri said that you don’t get a pay history in second. We’re not going to pretend to know anything about seconds. This is not where we have been playing, but everyone can just follow up with Siri on that with a full explanation.

That’s interesting because I’ve acquired as a pool three seconds through Kirkland. They provided me with all the pay history for a long time.

It does seem odd that they would not. Why would they not have a pay history? They service them just like the first. They’re accountable. They get audited just like they did with first.

One is from David. He’s saying the tapes he is looking at so far where the seller is trying to sell him on the future of the note and didn’t seem to want a discount or counter, especially on non-performing seconds. He asked, “What is our process on bidding on notes?”

We devoted two whole podcasts on that. What we do when we get a tape. If you’re asking what’s the number that we do, we will set up the spreadsheet where we will add some columns. I always put right next to the UPB column, a column that is the UPB times a certain percentage based on what I historically have been successful with or what I hope I can get it for from that seller. I do another column where I do ROI if I get it at that price. That formula in that column is PI payment times twelve divided by that bid price that I’m hoping to get it at. If some of you are not familiar with spreadsheets and creating formulas, that’s something we can cover it another time. This is not uncommon. If the ROI is low at what the price is going to be, you can flip it around and just be like, “What price would I have to acquire that to get 30% or 25%?” Whatever it is you’ve decided is your sweet spot. You can create a formula too that will use UPB and your PI payment to tell you what that bid price is going to be.

Here’s a quick and simple one way to do a quick cross-check. It’s a little different than yours, Gail. Take your monthly payment, multiply it by twelve, divide it by 0.3, that’s 30%. By no means is that the solution, that’s the ballpark. You also want to take the UPB and multiply it by, whether I follow the stair-step method which I know you do by Scott Carson on your assets. Under $20,000, it’s 25%. $30,000 multiply it by 35% and $40,000, 40%, in that ballpark. You get a range. You’ve seen my calculator which is very complex and at the end of the day your calculator, the moment you hit enter your number is wrong because what you put in there is never going to happen. It gives people an idea from that. I would recommend from a bidding perspective. We both learned from Scott and he’s got a great three-day class on how he breaks down. He has a YouTube video that’s three and a half hours long. I watched it years ago and he got into the details. He was going asset by asset.

When I first discovered Scott in 2016, I was visiting my daughter at college and she was in class one afternoon and I watched Scott breaking down a tape asset by asset for four hours. He talks a lot now. Those were the days.

I got a partner of mine, Andrea. She’s also looking at turnkey rentals, also trying to build a rental portfolio, which I know you’re doing as well. What she’s discovering is that the turnkey providers are jacking up the price. Prices might be $40,000 to $50,000. They’re trying to sell it turnkey at $60,000 with the tenant in there and stuff. You don’t have any equity in the deal. What are your comments on that?

They feel they are entitled because they’ve done all the hard work of renovating and then screening the tenant and getting that all set up for you. This isn’t an easy answer because it requires you to take on more responsibility. I find the way to go is to identify some markets where you think you want to be. Locate a property manager that hopefully is either also a contractor or has contractors that he works with, with his other landlords that he manages, his other clients. Put together a little ground team. You need a realtor, a property manager, and a contractor. Hopefully, the property manager is also a leasing agent. The more things you can have in one person, the easier it is. I have a great property manager in Indiana who spent a lot of the last two days looking at properties from me. I gave him a very strict formula of what I’m looking for like exactly how much rent I want for the amount of money that I have invested.

I also told him that the taxes cannot be more than one month’s rent. This gives him some very specific thing to look for. He’s crystal clear. He does the contracting work with his brother. When he goes to look at a property with a realtor, he’s doing the scope of work in his head. Only getting back to me about the ones that work. I’m looking in three different cities right now. Two in Indiana, Birmingham, and Alabama. I have found a property manager in both Gary, Indiana, and Birmingham, but they are not the people that are going to run around and look at stuff for you. There’s an awful lot of people who have skills and they might be property managers and are dying to understand how we do what we do. How do we have the money to do what we do and how does it all work. If you can find someone like that who’s reliable and skilled, that’s when I am all in on that town. I’m going to find everything in that town.

One thing I mentioned is you’re in real estate on a daily basis. If it’s somebody who’s doing other things and wants to buy an investment, what have you heard about turnkey investors? From my experience, what I’ve heard is there’s some that are good and there’s some that are bad like contractors. You’ve got to be careful.

Note Investing: The different states in America all have different rules about how you take back a house.

I have a network for those things. Anybody who’s putting all that work into creating a turnkey situation is going to want a pretty steep commission for doing that. That’s what takes it from affordable to maybe not affordable at all. You also have to buy a reputation now. I’ve bought rentals where the landlord literally was a warm body. They would put them in there to say it’s rented. You have to ask to show all the screening that you did for the tenant. You did a criminal background check, you did screen them for their financial. Don’t be like, “It’s great. Somebody’s in there,” because once you buy it, that person’s all yours.

At the end of the day, it’s a mixed bag. One recommendation is to look at real estate investment groups in an area you are looking at. For example, Gail and I both invest in Northwest Indiana on some assets. There’s an NWI meetup group in that area or Facebook group that I go on and I see who people recommend for contractors are who they say stay away from or property manager. That’s one area where I tell you to maybe do some researching as well.

It might be easier to work through friends from notes. I haven’t found people to be that helpful that I meet through the meetups. I’ve gone on and asked every admin of every meetup group like for Northwest Indiana and they’re all just like, “I don’t know or know.”

I found more who not to use.

I guess that’s also helpful.

There’s another question from Karen who asks, “What differences will we found in pursuing a foreclosure with a contract for deed versus non-performing notes?”

You don’t foreclose a contract for deed, unless in Ohio and there are some places. There are lots of states in America. They all have different rules about how you take back a house. Typically, a note has to be foreclosed and a contract for deed, you go through a simpler, hopefully, more streamlined and cheaper process called a forfeiture. Depending on where you are, that may or may not be true. Ohio is the notorious exception because if a contract for deed is more than five years old or the borrower has paid down at least 20% of their loan, their original UPB, you have to foreclose in foreclosure. This was all you because I’ve never done it in Ohio. Tell them the price.

I don’t think I foreclosed in Ohio.

What about your house with the water in the basement?

It was Cash for Keys.

After all the suffering, you were lucky.

When doing due diligence after an accepted bid, always ask for the pay history right then and there. Click To Tweet

The process is very similar. The first thing you’ll do is no matter what it is, you’ll have your attorney send the demand letter. You’ll need to get what the current reinstatement is and the total payoff from your servicer. We use Madison and you can run those reports yourself. They don’t tell you that. They will charge you $15 a pop, but you can actually run it yourself.

Just as a note, you can’t do any of this until your deed is recorded. That may take a while. If you buy the thing and you’re like, “Let’s go,” but you can’t necessarily.

The contract for deed does take a bit of time to get the deed recorded. Once all the paperwork is in line, no matter what goes out like if it’s a foreclosure or a contract for deed. Once that happens after typically 30 days, the attorney will file with the courts. That’s where the difference happens, depending on the judicial and non-judicial state. With the contract for deed, it’s like evicting a tenant. It’s a little more involved in that, but it’s like an eviction process. You will file with the court. The person will have 30 days to respond to a complaint. If they don’t respond, then typically the courts will rubber stamp it and cancel that contract for deed. In the foreclosure process, it’s a much longer process, especially in traditional states. Each state is different, but typically a foreclosure will easily take you six-plus months. I’m not sure in Georgia or a few other states but the contract for deed, you can usually get that done in about 90 days.

With some caveats. If you have trouble serving the borrower, some states have pretty strict rules about how you serve them the paperwork. The initial notice and then the notice that your notice has expired and now we’re going to court. In total frustration, I tracked down a borrower in Indiana. After the notice expired, we tried to get a default judgment which is like, “We wrote to them, they didn’t respond. They owe the money, hand it over.” The court was like, “You only mail the letter. You didn’t hand it to them. You did this, you did that.” The next step for some reason, because the borrower had moved and the attorney didn’t want to try to figure out where they were. They were like, “We have to publish the service.” Publishing, I found out in Georgia, and I guess it’s similar like publishing means you put it in ads and this and that. In Indiana, they were going to charge me $800 to publish and I was like, “Those little ads in the newspaper, how much do those cost?” In Georgia apparently, we have to do it four or six times once a week for four or six weeks. In Georgia, it’s only going to be $200. I don’t know why we were at $800 in Indiana.

What I’ve found is with the contract for deeds, usually, if the person is in the house, they’ll want to stay because it’s cheaper than rent. If you’re going to the forfeiture, a lot of times, they’ve left. The hardest part is finding them and hunting them down because once you file the suit, the share for the server or whatever it is has to go physically serve them. That’s when the clock starts for that 30 days. I’ve had it wherein a lot of times it’s like I had one that was filed in Indiana because the house is vacant. We’re trying to hunt the guy down. The hardest part typically is trying to find them after they left. A lot of times you may have to go the newspaper route.

I thought everyone would just like to see who makes so much noise all the time. This is not the instigator, but the one who joins in.

Before we get to the next one. When you log in, if you go under investor reports and then you can either do a reinstatement or a payoff. You click on that and then a screen pops up and then you can do the borrower and the date. It will say draft on it. A word of caution is if it’s in BK, bankruptcy, you have to get it through them because they break everything out and the numbers don’t make sense but on regular ones, typically that works.

How do we hunt people down? Do we use DOO? Yes, we do. In my experience, attorneys don’t generally have access to that but I don’t know how they find people. They always asked me to do it.

They asked me a lot of times with the social.

Which we only know because often in the file there’s the borrower’s initial application for the contract for deed or the financing. This is the only one way. There’s a dig.

Another cool site I learned about and I enjoy finding borrowers is a site called Pipl.com. Typically, I’ll use Spokeo to go on and look to see where they’re living or how old the borrower is if it’s not in the file and stuff. Spokeo is not great at Facebook and stuff like that. With this website, Pipl, I put the borrower in it and Facebook, Instagram, everything showed up. That’s Pipl.com. It’s something I highly recommend for people if you’re trying to find some information about your borrowers.

Note Investing: The collateral file is basically the history of the loan, all the documents that were created.

Is it just social media or do they have phone numbers and stuff too?

I’m looking you up, Gail. It has your picture, your education, BS in Journalism, Facebook, your wish list on Amazon.

I don’t even know it’s on that. What an invasion of privacy.

Melanie Jacob is on. She sent us an email. Melanie, do you want to hop on and we’ll join you as a host and panelist and bring up your question and talk about that deal you got going on?

I am suggesting that you have your own team to help you with turnkey rentals. That’s what I am striving for right now. Melanie, how are you? You have some asset in Indiana and you send some questions. What were you asking about?

A lot of my questions were surrounding collateral files. We purchased an asset in Indiana and we found out in the final hour it was pretty far into the foreclosure. We’re caught off guard by that, but the borrower was not in the home. There’s a number of things that came up in this in my Jacob Journey and Notes video if you want to go back and deep dive it. I just got the hard-collateral file in the mail. The first page is an affidavit of lost note. My question to you was having the note being lost, the hard file, we have all the soft files but the hard file was lost. What does that do to the value and what tips can you give us surrounding keeping track of your files, hard, soft? Are we going more to all digital and what does this mean for the note value?

Are you saying there is no hard file on this or just that one piece is missing, the note?

Yes, the note.

There is a lost note affidavit in the file, correct?

Yes.

You don’t have an electronic copy of the note either. There’s just no note or do you have a scan of the note?

Whatever it is you've decided is your sweet spot. Click To Tweet

I had all the collateral on a Dropbox. I had all of what I thought was all the collateral and then I got this very skinny file. I was like, “This is interesting.” It was an affidavit of a lost note.

Before we jump in, I would like to say that Chris and I bought an asset. It was a contract for deed. We thought the borrowers had already signed the property back over to harbor and we thought it was an REO. I kept telling the servicer, “You don’t even have to board this because it’s an REO.” The servicer says to me, “The borrower that you’re talking about is not the borrower. There’s another borrower.” Sure enough, when I got the physical file, it was twice as fat. I had the opposite situation. It’s twice as fast as what I had scanned and there was a whole new borrower. There were 60 pages about these new borrowers that we knew nothing about when we were buying it. There’s a real issue about the consistency of files in general. When you think that you’ll go based on the electronic collateral file and then come to find out that’s not even the old file, it’s pretty upsetting but it worked out okay.

Just to step back, because I know there are some people here who might be very new, the collateral file is basically the history of the loan, all the documents that were created. If you bought a house, you signed a mortgage and the note and over time that might get sold and passed around. When we talked collateral, it’s all those documents.

It includes the borrower’s application for the financing, the land contract. Most of the time, I bought them without land contracts.

It’s an interesting question now because I’ve talked to attorneys and there are varying opinions on this in regards to some states that in most non-judicial states, it’s not a problem. In judicial states, it can be a little more complex. In judicial states, typically the lost note affidavit has to be executed by the person who lost the note. If you had bought a note call in a judicial state where there’s no note, typically I don’t think you can create that last note affidavit. It has to be done by others.

Can Orion create it or they have to get back to the original company?

I’ve never had to have a lost note affidavit created. I’ve had similar instances as well where I get the file and then there’s a lost note affidavit in it. One thing I’ll make a comment on is I make sure that in every single deal contract that I signed is language that states it is a redeemable first position note. In that way, if they didn’t properly execute a lost note affidavit, then I can redeem my contract with them because if there was ever a legal issue, they would have to buy that back. I’ve never had a seller even blink an eye when I said, “I want that language in there,” because sometimes they put as in and so forth. I have that language added and I never had that. That’s one thing I’d say a tip I give people is to make sure you have that language in there. If it’s this far along in foreclosure, I wouldn’t see it as an issue.

They’ve crossed that bridge already because the review of the collateral is the first thing that the attorney does. I’m foreclosing on a place in Pennsylvania in Pittsburgh. We knew before we bought it that there was a lost note affidavit. Damian Waldman, an attorney from Florida told me right from the get-go it’s not a problem. I hope he’s right. I feel more obligated to hire him. He was the one who told me so.

Do you have any tips on how to best review the process? How do you store your soft collateral files? What do you do with your hard-collateral files? I know people will store them for you but as a beginner, we’re keeping them in a locked place. I wanted to know practically what would you do and what are some steps that you do to assure that these things are the value? That’s the paper, the note.

Chris again laughs at me because I’m such a do-it-yourselfer. I have two chests in my living room right now that are about the size of large coolers and they are fireproof-safe. They weigh a ton. It’s good to get the little rolling cart underneath so you can at least push them around. They’re the legal size and they hold a ton of stuff. What I’m going to start doing is have three of them. I already have two. It’s ridiculous enough. You can make them look like a coffee table. I’m going to start moving. I have also a bank safe deposit box that’s big. The stuff that’s not active, I’m going to start moving into that. My bank is open every day. It’s a great bank from that standpoint, but still, you don’t want to be running over there every time you need something.

I do the opposite. I started out with Richmond Monroe and I thought their fees were exorbitant for what they were charging me because they were charging me for every deficiency. If there was a missing assignment, they were charging $100 to basically just note it, not fix it. Just to put it on a piece of paper. I switched over to Orion, which is now part of MetaSource and they are out of Texas and like everything in notes it seems. What happens is when I get a collateral file, I email it to them and they create a report that says, “Here are the missing assignments or here’s what’s missing, here’s what’s good, here’s what’s not.”

Note Investing: E-filing in Birmingham is very easy to do. It’s the one bureaucracy in Birmingham that works well.

Here’s what’s recorded incorrectly so it has to be redone.

They’ll do that on the soft collateral and then when they get the hard collateral, they’ll double check it to see and the total cost of that is $40. Then they’ll store the collateral for you as well. The minimum they have is $10, it’s like $0.25 per loan but the minimum is $10 per month. If you have ten loans, it’s $1 per loan. The reason I do that is that I’m working full time and everything else. If I need to send the attorney the original note or something, it’s going to take me days to get to the post office so they send out that day. I will mention that I spoke to a firm, I won’t say their name yet because I haven’t used them, but they came highly recommended. What they do is if you’re buying a note, they will take the collateral that’s called under bailee where the seller will ship them the hard collateral and they will do a collateral review for you, similar to what Orion does, and then they’ll store it and hold it.

If you buy the note, they’ll keep it and then they’ll do all the recording and everything for you. It’s similar to Orion. I don’t know what their cost is yet and I haven’t used them. Somebody mentioned them to me. I wanted to call them and reach out to get their options. Orion, they are part of MetaSource. It’s OrionFGI.com is who I use and I know a few other people. They are big firms so sometimes something might get missed or lost and so forth. You should audit your files every month to say if have ten notes, they have ten files because sometimes it might get placed under somebody else but it’s still there. I can share a question. This is from someone who bought and owns two contracts for deed in Birmingham and they say, “We have a rescission of agreement for deed and a quick claim deed of release drafted.” I’ve never even heard those two terms.

I’m guessing that it is a win contract cancellation.

Yes, a rescission of agreement for deeds. I’m seeing the cancellation of agreement for deeds release and a QCD, quit claim deed of release. I don’t know what that means.

If you have a borrower on an agreement for deed, in most instances, the deed is in your entities name and they have an agreement for deed which is a separate document. You would typically need a cancellation on that agreement for deed. The other thing is if they’re still living there, you’ll want to get a surrender of possession which is they got to be out by a certain date and after that date, whatever is left is yours.

If I may explain when you buy a distressed contract for deed versus a traditional note, the house itself gets deeded to you and the agreement for deed or contract for deed, you will get an assignment of that from the seller to you, but you own the house with all the implications of that. The main one being you need to get insurance and that includes liability for anyone who gets injured on the property. You need that right away. When you’re planning to fund a deal like that, you need to talk to your insurance company ahead and make sure that they can make the day you find the effective date. They go on to ask, “Should we record a termination and notice of abandonment with the quit claim deed of release?” Now we are down a rabbit hole because what is a termination and notice of abandonment? I feel bad for my friend because someone has given them this vocabulary and now they feel normal.

I’m thinking that’s a surrender of possession.

Notice of abandonment, it’s like you left and now we’re sending you a letter that says, “We see that you’ve left.” This is a Cash for Keys situation. All of this is overkill and maybe not even the right documents but first of all, this person bought this contract for deed and did not record the quitclaim deeds. I believe two transactions of quit claim deeds have also not been recorded. They have to record all three where they even technically own this house to be able to sign this Cash for Keys.

What I would say is tell that person and make sure they record those documents before they have documents signed because you’re having somebody signs something, you don’t even have possession of that property. That’s something that I’ve learned thankfully not the hard way where doing due diligence on a deal where the agreement for deed was signed. It was recorded in this state because they needed to record them. It was Ohio. That was recorded before they recorded their deed. They had this person agreement for deed recorded prior to them actually owning the house which is a no-no.

There are two things. One is you have to make sure that these three deeds get recorded in the proper order. I do a lot of eFiling and in Birmingham, it’s very easy to do. It’s like the one bureaucracy in Birmingham that works well. If you eFile something, literally within half an hour it comes back as reported. That doesn’t happen anywhere. I don’t even take a chance like in the eFiling, supposedly they will record in the order in which you submit them. I don’t even take a chance. I will just send one and wait for it to be recorded. Then I will send the next one and wait for it to be recorded. It’s so much easier than trying to unravel a recording issue like that.

Anybody who's putting all that work into creating a turnkey situation is going to want a pretty steep commission for doing that. Click To Tweet

We’ve answered some questions for people and again, this is something we’d like to start doing on a weekly basis for people to come on and share experiences, share questions and people who’ve got deals going on or want to share things as well. It is the Good Deeds Note Investing podcast. We’ve got about fifteen episodes up and we’ve done some on business planning. Also due diligence, we’ve done two episodes on. We’ve done some IRA investing.

Someone asked if you could do a session on Infusionsoft. He’s been waiting for someone to ask for this. This is his thing.

Here’s what I’ll tell you about Infusionsoft. Wait until sometime. The reason why is they have a major announcement coming out. I’m a certified consultant for Infusionsoft in their Partners Program. They’ve got a very big announcement coming out that is going to be very interesting. It could be very helpful for a lot of small businesses. The biggest thing people have with Infusionsoft is they get intimidated about it. They’ve got stuff coming out that takes that intimidation completely away.

Will you be out of a job then as the head explainer of Infusionsoft?

It will make me busier because more note investors may now flock because it’ll be able to show them that it’s much more simplified and they’ll be able to do it.

We want to be here every Thursday night because we realized that a lot of people don’t feel confident to buy notes and get involved because they don’t feel like they have anyone to turn to. We would like to be those people that you can turn to. Hopefully, the ones who will give you the confidence knowing that you can talk to us every week and have the confidence to jump in and buy some notes and start taking your lumps like the rest of us.

If people also have experiences or we’re talking about something that you haven’t experienced on, please let us know. We pulled Melanie on and stuff. We have no problem bringing you on. Our egos aren’t super big where it’s just us. We want everyone to be part of this group and collaborate as an effort. There is a Facebook group where you can definitely get a lot of information stuff. What I always find in communicating face-to-face or in person in this type of fashion is you can learn a lot more and you can understand things because sometimes you read a post and you may misinterpret it.

Hopefully, we’ll see you all back.

For people who do want to register, it’s going to be the same website. We offer the 7EInvestments.com/PodcastWebinar. We also send emails out to people as well. It will be up there and you’ll see the date will be changed to register for the next one. Gail, it’s a pleasure and thank you all.