🏦 How to Earn 10% Returns Without Owning a Single Property

The Real Estate Investing Club

You're absolutely right, my apologies! Here is the full description again with the title included at the top:  ---  **🏦 How to Earn 10% Returns Without Owning a Single Property**  Join an active community of RE investors here: https://linktr.ee/gabepetersen  0:00 - Welcome & Introduction with Gabriel Petersen 1:17 - Eddie Speed's Origin Story in Real Estate 4:01 - What Is Note Investing? The Basics Explained 8:42 - How Note Investors Find and Source Deals 12:19 - Underwriting Notes: Key Criteria Before You Buy 17:51 - Typical Returns from Note Investing Revealed 19:14 - Note School: How Beginners Buy Their First Note 22:52 - Best Masterminds and Education Resources 26:40 - Advice Eddie Would Give His Younger Self 29:05 - Building a Relationship-Based Note Business 31:15 - AI, Blockchain, and the Future of Mortgage Notes  WHAT IS NOTE INVESTING AND WHY SHOULD YOU CARE? 🏦  In this episode of The Real Estate Investing Club, host Gabriel Petersen sits down with Eddie Speed — the founder of NoteSchool.com and a 40-year real estate veteran with over 50,000 note transactions under his belt. Together, they pull back the curtain on one of the most overlooked and underutilized strategies in real estate investing: buying mortgage notes. If you have ever searched for a way to generate truly passive income without the constant headaches of tenants, toilets, and repairs, this conversation will open your eyes to an entirely different — and highly profitable — side of the real estate world. 💰  WHY BEING THE BANK BEATS BEING THE LANDLORD 🏡  Most real estate investors default to buying rental properties because that is what they know. Eddie Speed challenges that assumption entirely. When you invest in notes, you step into the bank's seat — collecting monthly payments, earning clearly defined interest, and getting paid before anyone else in the capital stack. Notes have historically thrived when other real estate strategies struggle, especially during periods of high inflation and rising expenses. In today's market, where operating costs are eating into landlord margins faster than rents can keep up, the case for being the bank has never been more compelling. 📈  Explore note investing further by visiting noteschool.com or watching Note School TV on YouTube, where you will find real stories, beginner tutorials, and everything you need to start building financial freedom through the power of being the bank. 🎙️ #RealEstateInvesting #NoteInvesting #PassiveIncome #FinancialFreedom #RealEstateInvestingClub Want to learn more about our guest? Connect here: noteschool.com Want to learn more about the REI Club Podcast, how to invest with Gabe at Kaizen, or join our community of active real estate investors on Skool? Visit the podcast website at https://www.therealestateinvestingclub.com or click here: https://linktr.ee/gabepetersen

Transcript

00:06all right we are back with another episode of the real estate investing club hope you guys are

00:11having a great week great day great great month wherever you are and whatever day it is for you

00:15it is friday on the podcast so we're bringing that good friday energy to you and uh you know

00:21i've said this for the past three episodes because it has been the same day for us but it is

00:25still

00:25sunny here in seattle so we're bringing that uh that good seattle sun to you guys the good energy

00:31that comes with the seattle sun i'm telling you in this uh in this area when it's sunny during the

00:35winter the entire world lights up it's it's absolutely fantastic so it's good day for a

00:40second reason though because we have eddie speed with us on the show from noteschool.com eddie has

00:45over 40 years of experience in real estate and he has done over 50 000 notes which is a huge

00:50number

00:51so this guy has the experience has the wisdom if you guys are interested in investing in notes

00:56um eddie thanks for hopping on the show how are you i'm doing well doing well um i told you

01:02before

01:02we got on here we always like to start with stories we like to hear how people got to where

01:07they are

01:07um you have a long story 40 years in real estate i'm sure you've seen the ups and downs lefts

01:12rights

01:12all the things that can happen so why don't you take us back to the beginning of your story in

01:16real

01:17estate and tell us how you got here well a lot of you guys got into the market because you

01:24really

01:25were doing something else and you were then you studied real estate and that led you to one thing

01:29or another i really just sort of stumbled into the business but i was 20 years old right i didn't

01:35know

01:35anything like i wasn't like some this wasn't some big scientific research i just met a guy who later

01:42became my father-in-law and this was in the 80s when interest rates were really high and inflation

01:48was really high and uh notes do good when a lot of other things in real estate and banking don't

01:55do so

01:55good and that's when i was introduced to the business and uh you know he i didn't have a lot

02:03of money

02:04or knowledge but i had shoe leather and so he put me in the path of you know as a

02:11beginner going out

02:13there and chasing deals that he could figure out how to put some magic on and that's kind of how

02:20i got

02:21started all right i love it didn't i you know whenever anybody mentions that they grew up in a

02:27family in real estate it's always uh you know it sounds like a great way to get started because when

02:32you're surrounded by people who are in the business and it just kind of comes second nature i mean you've

02:37seen it done from your from your young age up to uh your adulthood um it just kind of seeps

02:42into who

02:43you are and it becomes second nature so you got into it that way which is awesome so you're you

02:47said

02:47your dad was uh investing in thoughts father-in-law father-in-law father-in-law introduced me to the

02:52business okay i later did get my dad involved in the business uh at at 68 years old and he

03:01probably told me

03:02a thousand times if not ten thousand times before he passed away in his mid-80s it's the best thing

03:07he'd ever done he had been in real estate he was a he was you know he had uh had

03:13been involved in

03:14real estate brokerage and stuff like that so he was not like completely unfamiliar with real estate

03:19but as you and i know a lot of times people you know real estate's such a wide band and

03:27the things

03:27you can do in real estate are so wide that you wouldn't necessarily know a whole lot about notes

03:32until you kind of you know went down that path a little bit yeah yeah so why don't we start

03:37there

03:38um not a lot of people know that uh you know when they think about real estate when they think

03:42about

03:42getting involved in real estate they think about buying a single family house that's where people's

03:46minds go to next level up they might think about buying an apartment complex uh maybe a commercial

03:51property but rarely do people think of investing in notes as an activity that you can do

03:56in real estate so tell us about note investing what is it and how is it different in or how

04:02does

04:02it operate within real estate well most everybody on i would assume that's a listener understands what

04:10a note is because you've been to a title company and you've signed a note when you bought a piece

04:15of

04:15property you sign a note and and i'm going to jump in there real quick because the nomenclature that

04:20most people understand is a loan right a mortgage yeah um and yeah okay so keep going

04:26and so so you that note says the the amount that you owe plus interest it says is probably due

04:33on

04:34the first of every month and it says the amount that's due and it's payable over a period of time

04:41and it's secured by a piece of real estate so then you sign another document that may secured by the

04:47real estate that could be a deed of trust that could be a mortgage depending on what state you're in

04:51okay so this is being the bank and this is this is focusing on getting payments uh because you're

05:00the bank versus being the landlord and so everything we understand in real estate has its cycle

05:09right i mean there's nothing that's good for 20 straight years investing in apartments is not good

05:15for 20 straight years investing in rent house is not good like there's nothing that you could name in

05:20real estate that it's always good and so then there then you look at different market cycles and you

05:26say what's good in certain market timing and today notes have popped up that a lot of people are

05:35starting to realize wait a minute it's way better to be the bank right now than it is other things

05:40and and that really because the reason that is true is because of inflation because what caused

05:48what happened when we started seeing inflation related to real estate investments is the expenses

05:54jumped up way higher than the rents jumped up and in that kind of market condition people started

06:02realizing wait a minute i can be the bank and make eight or ten percent interest and i can be

06:07a landlord

06:07on a rent house and make four percent interest like that didn't make good sense and and i don't have

06:14to

06:14that i don't have to have the headaches of of of the other things and so that's kind of why

06:19that's the

06:20trajectory that the market has been on okay makes sense yeah note investing so give us the um the nuts

06:27and

06:28bolts of what it is as as if you're building a business as a note investor what um what are

06:34the

06:34activities that you do so you are you are simply doing exactly what a bank does you are you step

06:42into the

06:43bank seat notes are saleable most everybody on this call uh has had has gotten a letter in the mail

06:52at a at a time and it said your loan's been sold you used to pay first national bank and

06:58now you're

06:58gonna go pay somebody else so i remember when i when i bought one of my first first houses like

07:04this is

07:04a house that i was living in um i i think it was like within a week that i got

07:09that letter it was like

07:10i bought the house literally like four days later i got a note uh a letter in the mail that

07:15was like

07:16you know it's been sold and uh so yeah i'm i'm yeah i just wanted to put that in there

07:20because i it is

07:21crazy how quickly these things sell but anyways keep going so it so it's so it's very common that this

07:26happens and the thing is that most people would quickly say is i just didn't know an individual could

07:33do this i knew banks did it you know new insurance companies did it i just didn't know an individual

07:39can do it and the answer is um you know that you can own a note just like the first

07:44national bank

07:46and so all of a sudden you know showing people that possibility and the fact that you mean i have

07:54the

07:54aggravation of a of a bank not the aggravation of a landlord like that's pretty enlightening to a lot

08:02of people right so they don't so uh and and the cool thing i think about being the bank is

08:09is you

08:09just think about where you fit in the real estate cycle you're the guy that gets paid first think

08:16about the terms of the landlord nets whatever he nets after everybody else gets paid but the bank's

08:25way first in line that says we get paid at the first of every month and we know what we're

08:30going

08:30to get paid it's not what's left over it's very defined as to what you get and so when you

08:36look

08:36at it from that perspective a lot of people uh go like yeah okay i i think i i would

08:43like to be the

08:43bank and so um so banks they usually find their notes because they have lent this money out um as

08:50the note investor you you aren't really lending the money you are actively going out there and

08:54purchasing the note itself um what does the you know for for a regular single investor they're

09:00they're mailing out uh mailers to single family houses making offers yada yada for a note investor

09:05it's a lot different how does that process look for uh for generating leads and and finding new notes to

09:11buy so one of the one of the things that i learned in running a school is people said if

09:17you could help me

09:18do this so i don't have to go do it all myself that would change our efficiency a lot so

09:24one of

09:24the things that we've really done really well is we've built a marketplace so we teach people how

09:31to buy notes and then we built a marketplace where people can buy notes okay and um and that

09:39means that they don't have to have so many moving parts to go make that happen and that became a

09:45big

09:45barrier i i understand i'm just i'm curious uh what is the i mean does the process for for finding

09:52the

09:52note itself is it the same as are you are you interacting with banks or are you interacting

09:57with uh with homeowners no you're you're really at most of my customers i buy notes from are real

10:04estate investors so they're they're real estate investors that would that would create seller finance

10:11notes for example um and um you know so you so seller financing does good when other things in real

10:22estate or the mortgage business don't do so good so if you think in terms of how much the sales

10:29are off

10:29for realtors and how much loan production is off for the loan origination business i mean you're

10:38talking about last year was one tenth of the business they did in 2021 the loan origination business that's

10:46according to new york federal reserve one tenth of the business so we do good when we find

10:54a market condition that isn't doing good and and basically that then that's when notes do really

11:03well and that's why we're on a trajectory going up in fact we did so so you so i'm sorry

11:12to jump in

11:12here so you uh you said you buy the notes um i'm sure you do buy from banks that's correct

11:17you like you'll

11:18go to a bank and buy a note from a bank not much but so not much and then i

11:24haven't not not in the last

11:26few years i've bought very few loans from banks so most of it comes from um from investors and

11:33that's true network yeah yeah and that's actually it's very uh serendipitous because literally the

11:38last or maybe one episode previous to this we had emmanuel um stephelidas on and he is he does the

11:46process here he does the step that's right below you so he finds properties um buys them puts them on

11:52contract and then sells those contracts to people like you so uh this is kind of getting full circle

11:58i love to see that yeah um so awesome so tell me a little bit i mean not all notes

12:04are made the same

12:05there are some good notes there's some bad notes uh how do you go about underwriting the notes to

12:10make sure that it's it's a note that you actually want to buy um do you do a percentage off

12:14like maybe

12:15the note the principal balance is 500 000 and you do 20 less than that or what's your process of

12:21identifying the the offer price for your notes well well the first thing i do is is determine

12:27what is the likelihood the customer is going to continue to pay on time okay it doesn't matter

12:31what the discount is i'm not trying to own the property i'm not trying to buy somebody else's

12:36problem right so i look at the the the property itself the value the borrower situation and and what do

12:47what leads me to believe they're going to continue to pay on time on this note as they've paid in

12:53the

12:54past and so you know once again 50 000 closed transactions we've done pretty good at developing

13:01kind of a risk blueprint of like what are what are the good odds here and what are the what

13:08like the

13:08main kpi that you look for is it credit uh or is it a um uh mortgagee credit is it

13:15their the history

13:16of payments um can they pay the simple thing is can they pay and will they pay so can they

13:24pay is their

13:25capacity to pay i mean income income secondly is will they pay and that can be a combination of

13:33their credit or maybe i'm looking at a loan with a three or four year pay history and i have

13:38a

13:39measurable track record of how they've paid others so it may not be just credit but i'm just weighing

13:45out certain variables that lead me to that conclusion makes sense makes sense so you you're vetting when

13:54you do the underwriting you're really betting the person who is who has the note um the you know the

13:59the tenant that is not tenant um the borrower you call it borrower there we go yeah the borrower uh

14:07you're vetting the borrower to make sure that that person will continue the payments they have in the

14:11past um and what about the offer price like how does the because you're you're i'm sure you're buying

14:16these notes at a discount um how does that look like um generally we do buy notes at a discount

14:25but

14:25that is not an absolute and generally speaking to be honest with you we don't buy notes at giant

14:31discounts right buying notes at giant discounts means that somebody probably has something

14:38problematic yeah i mean real estate investors are paying up for properties today you're not going to

14:44buy a property a good property at a really super deep discount so you can't go in there and buy

14:49a

14:49note for 75 cents on the dollar because a guy can't afford to sell it to you unless it's a

14:53problem

14:53so we're we're not focused on trying to buy loans at big deep discounts we're we're focused on trying

15:00to buy loans that pay that are that you can buy and we can put that loan with a loan

15:05servicer and it's

15:06just automatic every month it pays as agreed and so that's kind of our target audience okay um and are

15:15you looking for i mean do you look for like the the ltv of the of the value of the

15:23property or

15:24go a little bit deeper into like what you are looking for when it comes to the note itself

15:28so once again you know if you're looking at a note just say it was on a three hundred thousand

15:33dollar

15:34house okay so the house is worth three hundred you know we're probably gonna buy that note and fund

15:43no more than eighty percent of what the house is worth right so there's got to be some cushion in

15:50it you know and in this scenario if there is a twenty percent cushion that's about sixty thousand

15:58dollars right so we're going to pay sixty thousand dollars less for that note than what the house is

16:04worth now that doesn't mean we bought all that in discount but that does mean that we have a cushion

16:09if something goes wrong in that transaction so um you know you know so people will say well what is

16:20the loan to value always and stuff and you'll say well generally you know we probably see loans that

16:26you know that the buyer has you know about 15 percent equity right that's probably about average

16:32um the average down payment today we see on a seller finance down payment is about 15 percent down

16:41okay so you so you look and um so you're buying these from investors and they they've probably

16:48already done the rehab on the property so that 15 percent i mean they're not they're not losing that

16:5215 percent because they've uh they've done the value add and so it's in there it's already booked

16:56into it um so once you once you buy buy the note uh you've already mentioned it earlier you go

17:02to a

17:02note servicing company correct how do you how do you manage the note um and how passive is it really

17:07to

17:08to own that note if you have it with a loan servicer it is going to be fairly passive i

17:15mean you you're

17:16good you get to make the executive decisions let's say that god forbid you know they didn't make a

17:22payment this month right but the technical aspect of reaching out to the borrower and however they fix

17:29all that that's really the servicer is going to do that you you you stay in the position as the

17:34owner

17:35of the note to say i make the decision of of of how aggressive we're going to be but i

17:42don't have

17:42to go do the mechanics that's really where people figure out like oh my gosh now you know i don't

17:48have to be an ultimate expert at everything just to go on a note and so what is a what

17:56is a typical

17:56return like for note investing um i mean interest rates right now actually i don't know probably in the

18:02mid mid sixes for a single for a residential um that's that's not that's not for all residential

18:09mortgages that's the best loans you can get that's a fannie may loan that's an fha loan that's the best

18:16loan you know 40 of loans today are are not agency loans and and they're at higher wow that's higher

18:26than i thought that's okay and they're they're at higher rates than people think so uh the average

18:32yield that our investors get is probably about 10 percent it may be nine and a half it may be

18:3811

18:38but it's about it's about 10 so it's a it's a lot better income on a note today with a

18:47lot less

18:47trouble than it is to own a typical rent house yeah absolutely because then you don't have to deal

18:54with toilets and uh and sinks and rent houses aren't making 10 percent that's true cap rates are

19:00definitely not at 10 percent um so when you when somebody joins note school and they're buying their

19:07first note uh what is it that you tell them like how do you how do you instruct them to

19:11make their

19:12good first purchase decision when it comes to notes well that's the whole reason we built a

19:21school we built a school to go down like a decision tree process right and we show them we would

19:31we

19:31wouldn't buy this one we would buy this one we wouldn't buy this one we would buy this and that's

19:38the most accelerated way for people you know in real real stories and real deals that's the most

19:45accelerated way for people to get a a quick sense of okay this is an acceptable risk this isn't an

19:52this isn't a risk that i should take and it's all based on what i said it you know like

19:57i don't buy

19:58notes on junkie collateral like i'm out you got notes on in a junkie collateral i don't care if it's

20:05land i don't care if it's a house you don't call us because i i've been doing it too long

20:12i'm too

20:13seasoned and i know that that borrower will have more likely a problem paying me in the future

20:20because the property is not fulfilling his needs and it's not by junkie collateral you mean just

20:26crappy houses um well and the collateral being that the thing that is supporting the note and

20:31right junkie collateral is is an asset that's in a bad area yeah or just bad condition they can't

20:38you know so so you think about this i'm looking for a winning story when i'm looking for a note

20:46i'm

20:46looking for somebody that bought that house that can pay it back and wants to pay it back they live

20:53in

20:53the house it's it's their home and they can afford it and excuse me and for those reasons i just

21:06will

21:06tell you from statistics that the odds of that deal working out become very good and you know after 45

21:14years you can imagine all the things that we figured out won't work we quit doing it right so we've

21:22pretty

21:22much focused on things that are like a proven you know pattern and so good houses good people you know

21:32i'm not opportunistic with somebody you know like like you're asking me about how much the discount

21:38is and all that kind of stuff that's just not my first litmus test i'm just looking for people who

21:44have good loans most of the real estate investors i've looked at your list you know you know half the

21:50people that have been on your show if i've been in some mastermind with them or i know i'm like

21:54i'm

21:54i'm very much about a win-win with real estate investors that create notes and then i create

22:01a liquidity a secondary market where they can sell those notes and they don't get clobbered on the

22:07price but i'm looking for a better grade of a customer yeah yeah yeah absolutely and i mean it only

22:17takes

22:18a few uh rough deals to realize that the you know the the lower grade properties sure the cap rate

22:24might be higher the discount whatever might be better but it's not worth the headache um you know

22:30i've i've done this with self-storage facilities i bought uh facilities that had great cap rates uh and

22:35they were you know i thought they were going to be slam dunks but it turned out um you can't

22:40beat the

22:40market you can't beat the location it's look it's located in and so if it's a if it's in a

22:45bad area

22:45it's just even if it's a great deal you don't want to buy it um awesome well hey i just

22:50took a peek

22:50at the clock it looks like we have run it down so it's time to jump into the quick question

22:54round

22:54are you ready all right let's do it let's do it starts with education it could be any form

22:59could be a conference you've gone to a mentorship program you've been a part of um book you've read

23:04movie you've seen anything i just need two recommendations one for general life wisdom and

23:08then one for real estate uh i've been a big fan of real estate masterminds uh those have been

23:15those are been very good i've been in collective genius for probably 13 years um and uh i've been

23:25in i'm in i'm in several of them and all of which i would say great things about uh boardroom

23:30can't flow your boardroom is another one um and but i would say that there's a mastermind for

23:37for people that are active in the business not necessarily passive investors but people that are

23:43active there'll be an appropriate mastermind out there that is the right group for your audience

23:48um and that if they want to go hang out with like-minded people and really get pushed

23:56and really get systems and processes in place that those are good places i would say to search

24:02absolutely yeah we uh we echo that across so many episodes the importance of mentorships

24:09masterminds being around people who are at your level or a step above you um so you can just kind

24:15of you grow so much faster when you when you are surrounded by people who are doing what you do

24:19and who want to achieve what you are trying to achieve um and so yeah i i love that you

24:23recommended

24:24that you you said two of them right there collective genius and i think you said boardroom um is there

24:28is there one in particular that you know people who have no idea which mastermind to join is there

24:33one in particular that you know i think you i mean they're diff they're they're they're very similar

24:38in some ways and they're very different so it's a different different leadership different kind of

24:43little bit of different cultures and uh but both of which i would say you'll never you won't make a

24:49mistake in either one of those and um so you know they're in they're going to be and i'm i've

24:57like i said

24:57i've looked at some people who've been on your show and a lot of people i know from one or

25:01both of

25:02those masterminds so there it's uh you know once again find find your spot right i'm there for one

25:10reason in those masterminds i am a seller finance guy right i'm known very much across the country as

25:18that guy and i get to know these people and help them with their seller finance model so i'm a

25:23specialist that's there like i'm not a generalist that's there but but for somebody in your audience

25:30that's looking for their way then then they'll find that that's what i said if you're if you're

25:35looking for something it is hard to know what to do in your business when things change when you don't

25:42have knowledgeable people you can bounce things off of 100 it's difficult yeah and and i i want to kind

25:50of hover and highlight what you said about um you've kind of branded yourself and niched yourself down

25:55uh to being the note specialist and that it's so important to do that even even when you choose

26:00real estate as your goal niche down choose a specific path because then if people know you as

26:05that you know i buy mobile home parks rv parks self-storage facilities if people know that you

26:10that that is what you buy that is who you are then they're going to start bringing that thing

26:14specifically to you because you're going to be the guy that pops up in their mind when they hear

26:18or see uh that type of asset that type of strategy whatever it is for for eddie it's notes they

26:24hear

26:24about notes they think about eddie um it's one and one that just goes right hand in hand so i

26:29love that

26:29you did that um i'm going to move us on to the next question this is for your younger self

26:34uh let's go

26:35back to the eddie i think you said 40 years ago go back to that version of him who is

26:39just getting

26:39started out go to him look him in the eye give him one piece of advice moving forward focus

26:46just just you know the one thing i would say is that you know you there's a lot of shiny

26:53objects

26:53but if you find something that's good and it works and you focus on it it will be good to

26:58you a long

26:59time in the future yeah and that is the hard part is is uh is not looking at the other

27:05shiny objects

27:06because especially in real estate there's so many of them there's so many ways to to do real estate

27:10there's so many different types of real estate to buy it's hard to to just focus in but damn that

27:16is where the results come from is when you get good at one thing for eddie it's notes for you

27:22maybe

27:22it'd be whatever it is but focus in um and i feel like that's that's really good advice uh all

27:28right

27:28next question is about the u.s it's a big place there is a lot of opportunity out there

27:32give me the single metro you're most excited about investing in today

27:38uh you know it's funny because i don't really i buy notes all over the united states and i don't

27:43have really like one market that i'm enamored with uh but i would say that i like the middle markets

27:51you know i don't like the most pricey markets i don't like the cheapest markets so if that's dallas

27:59or if that's oklahoma city or if that's you know wherever that may be those are the markets that i

28:06have

28:06tended to see over a long period of time that are most reliable um they're less volatile and so yeah

28:14you know i don't know that there's a specific that's where i would go but i would say that

28:19you know real the real extreme markets that you can do really good or you can get clobbered

28:27and and the other markets that are too cheap then then they don't always you know they're not

28:35there's not it's not quite as easy to move things when you get to those markets

28:40oh yeah that's a good point um the just the dispo aspect of things you know getting things on the

28:46back end you might find a good deal in dayton ohio but um getting somebody to buy that deal

28:51might be the harder part uh it's a good point um all right next question is about finding deals

28:58it all starts with getting in contact with the seller and pending that purchase agreement in your

29:01um your shoes it all starts with finding that note so what is your favorite way to generate leads and

29:07find new notes to buy i run a very relationship-based business um and so i i actually help most

29:17of my real

29:18estate investors with a process of how they make their notes so i'm involved in the process with

29:24them even before the net they they they create the notes i'm helping them with the structure

29:29and so i'm very i like businesses where your customer and you are motivated in the exact same direction

29:41i love it yeah um all right next question is about lessons learned not every deal we get into

29:47goes the way we expect it in fact pretty much every time something goes wrong and that's when we get

29:52to learn lessons so what was a deal that went a little bit sideways for you and then what was

29:56the

29:56lesson you pulled from it i would say my pattern over the years is if the one thing that's probably

30:04been the most costly is not having the right level of accounting and accounting is the biggest

30:12people talk about scale and i'm going to do this and i'm going to do that and the thing that

30:17many

30:18times they leave behind is they have a substandard accounting system and that will get you that will

30:25make you start over more than you want to oof man that you're you're that that hit that hit home

30:31for

30:31me because i am trying to improve that on my end um and it's uh it's not something i'm good

30:38at

30:38it's not something that i'm naturally like inclined to but it's something i know is very very important

30:42and so trying to improve that process myself um and it's good to hear from somebody with so much

30:48experience uh how important accounting is um so if on that note if there's any do you have any specific

30:54uh guidance that you could give people who like myself trying to improve that fractional cfo this is

31:00specialist in your space nice i like that that's it that's the you know if you if you have a

31:07cfo

31:08that you know there's there's specialist groups out there that you know work with certain kinds of

31:14real estate investors and that's going to save you a lot of time and aggravation nice all right um that

31:20leads us to the second to last question um this is a new one and it's actually an interesting one

31:26for

31:26your your niche um we're talking about ai ai is here to stay and i'm a huge proponent of putting

31:33it

31:33into my business as many places as i can responsibly do so so um i'm curious to see here how

31:38you use ai

31:39in the note business uh today i have a technology firm that probably does 85 percent of my due diligence

31:49and they are the ultimate technology firm in the mortgage and loan servicing space

31:53and they've got ai that can read 200 000 documents an hour and so yeah you know they have been

32:01training

32:01on ai since 2016 or 17 and so um so it is a huge part of our business and uh

32:12the efficiency of it is

32:13pretty crazy in fact we are currently working on a project with them that we will be selling loans

32:20these loans on blockchain pretty soon interesting huh yes sir i'd be i'd be curious to hear how that

32:27um how that's rolled out we've had a few guys uh doing um selling doing syndications on the blockchain

32:33which uh is is unique and i love the idea about it um but i'm curious how how yours works

32:38uh once you

32:39get it done i think i think people will figure out that mortgages work a lot better than other real

32:43estate investments oh on the blockchain yeah because you know you don't you don't have the

32:51hot water heater that goes out and or you know where the roof that goes out and all of a

32:55sudden

32:55you're like okay well how do i not mail you a check right now you know so it's it's mortgages

33:01are going

33:01to be a very viable uh way that blockchain that people can buy a piece of you know a piece

33:09of an

33:09interest in that mortgage and they just get a check every month yeah yeah it'll make everything

33:15so much i'm very excited for how um just real estate as a whole the transaction part of it

33:21is going to change uh in the future because i feel like it's going to get a lot a lot

33:25more seamless um

33:26and so i'm i'm excited for it yeah all right that leads us to the very last question this is

33:32for the

33:33listeners you've given us a lot to think about i'm sure people want to reach out get in contact with

33:37you is a two-parter where can they find you and then what can they expect when they reach out

33:41well i would say two things we have a really good podcast too called note school tv so it's on

33:47youtube

33:48and it's just note school tv and it and it has a lot of practical stories about people that we've

33:55helped you know go from that get started and how do you buy your first note how do you buy

34:01your first

34:01how does that work and the second thing is we've got a a really solid website noteschool.com where we

34:11can kind of guide people down the path and say you know how do you diversify in the notes because

34:18a lot

34:19of people right now are looking at that thinking you know if i can earn more income less aggravation

34:25that would be very interesting to learn how to do nice i love it i'll put that link in the

34:32show

34:32note so if you guys want to reach out all you got to do is click the little more in

34:35the description

34:36it'll pull down that full description and in there you can find eddie's links

34:40all right man that wraps it up thank you very much for hopping on the show

34:48absolutely for everybody who's with us today thank you guys for showing up you are the reason we do

34:52this so if you guys have any questions reach out to me gabe at the real estate investing club.com

34:56if you guys want to support the show just leave us a review a comment anything like that

35:00other than that i hope you guys have a great week keep rocking real estate and i look forward to

35:05seeing

35:05you on the next episode

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