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  1. #1 Sep 26, 2019
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  4. #4 Nov 21, 2019: Methods to Building Your Network
  5. #5 Dec 5, 2019: End of The Year Introductions
  6. #6 Dec 12, 2019: DistressedPro Review
  7. #7 Jan 9, 2020: How to make money brokering
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  9. #9 Mar 26, 2020: Adjusting for COVID
  10. #10 Apr 2, 2020: Guest Speaker Edwin Kelly
  11. #11 Apr 16, 2020: Growing your network
  12. #12 Apr 23, 2020: Guest Speaker Jack Krupey
  13. #13 Apr 30, 2020: Sourcing Notes & Dealing with Bankers
  14. #14 May 7, 2020: Dealing with Borrowers
  15. #15 May 21, 2020: Creating Your MasterMind Group
  16. #16 June 4, 2020: Why Mike Likes Seconds
  17. #17 June 11, 2020: Sourcing Notes
  18. #18 June 18, 2020: Mike Reviews A Difficult Note
  19. #19 June 25, 2020: Guest Speaker Edwin Kelly
  20. #20 July 9, 2020: Talking with Bankers
  21. #21 July 16, 2020: Evaluating (Current) Tapes
  22. #22 July 23, 2020: Working with a servicing company
  23. #23 July 30, 2020: Guest Speaker Abby Shemesh
  24. #24 Aug 6, 2020: Exit Strategies
  25. #25 Aug 20, 2020: Practicing Due Diligence
  26. #26 Aug 27, 2020: Credit Reports & More
  27. #27 Sep 3, 2020: Tape Deep Dive
  28. #28 Sep 10, 2020: Tape Review
  29. #29 Sep 17, 2020: Interview with James DeBari
  30. #30 Sep 24, 2020: Evaluating A Real Tape To Prepare An Offer
  31. #31 Oct 1, 2020: Third Quarter Forecast
  32. #32 Oct 8, 2020
  33. #33 Oct 15, 2020: Money Lender Pro with creator Josh Whitman
  34. #34 Oct 22, 2020: Trusts, Custodians, and IRA's
  35. #35 Oct 29, 2020
  36. #36 Nov 5, 2020: Tools of the Trade
  37. #37 Nov 19, 2020: Calling Banks
  38. #38 Dec 3, 2020: Contacting Banks
  39. #39 Dec 10, 2020: Generating Leads via LinkedIn
  40. #40 Dec 17, 2020: End of Year Reviews & New Year Goals
  41. #41 Jan 7, 2021: Start Sourcing Deals
  42. #42 Jan 14, 2021: Reviewing A Reverse Mortgage List
  43. #43 Jan 21, 2021: Creating 1098's in MoneyLender Pro & Evernote Tutorials
  44. #44 Jan 28, 2021: Finding Contacts
  45. #45 Feb 4, 2021: Due Diligence on Live Tape
  46. #46 Feb 11, 2021: The Note Business from Anywhere
  47. #47 Feb 18, 2021: Lien Position and Title
  48. #48 Feb 25, 2021: Getting into this Note Business...without money!
  49. #49 March 4, 2021: Rehabbing a Note Options
  50. #50 March 11, 2021: Brokering As A Group
  51. #51 March 25, 2021: Interview with Kevin Cordell
  52. #52 April 1, 2021: Reviewing Bad Notes!
  53. #53 April 8, 2021: Networking & Brokering Etiquette
  54. #54 April 15, 2021: Credit & Forced Place Insurance
  55. #55 April 22, 2021: Real Case Studies
  56. #56 April 29, 2021: Interview with Val Sotir of Watermark Exchange
  57. #57 May 6, 2021: Motivational!
  58. #58 May 13, 2021: Networking & Case Studies
  59. #59 May 27, 2021: Guest Speaker Bill McCafferty
  60. #60 June 3, 2021: Note Tracking and Brokerage Houses
  61. #61 June 10, 2021: Practicing Networking & Connecting
  62. #62 July 8th, 2021; Looking Down the Line
  63. #63 July 15th, 2021; Note From Hell
  64. #64 July 22nd, 2021; Brokering Negotiations & More
  65. #65 July 29th, 2021; Tax Laws & Note Pricing
  66. #66 Aug 12th, 2021; Boarding A Note, Step by Step
  67. #67 Aug 26th, 2021; Contacting Banks
  68. #68 Sep 2nd, 2021: Microbilt, Evernote, Credco, Money Lender Pro
  69. #69 Sep 16th, 2021; Attorney Management
  70. #70 Sep 30th 2021; SDIRA, Money Lender Pro, and Trusts
  71. #71 Oct 14th, 2021: The Price of Notes & Servicing
  72. #72 Oct 28th, 2021; Raising Capital with New SDIRA's
  73. #73 Nov 11th, 2021; Utilizing CRMs
  74. #74 Nov 18th, 2021; SDIRA's
  75. #75 Dec 2nd, 2021; Guest Speaker Kevin Cordell
  76. #76 Dec 30th, 2021; Family Office
  77. #77 Jan 13th, 2022: Raising capital thru SDIRA//401k
  78. #80 Feb 24th, 2022; Pricing notes and beyond
  79. #81 Mar 10th, 2022; Buying notes with no money: tape review NY
  80. #82 Mar 23rd, 2022: HUD
  81. #83 Apr 7th, 2022; Market Yourself - NOW!
  82. #84 Apr 21st, 2022: Inflation
  83. #85 May 12th, 2022: What Made ME A Successful Note Investor
  84. #86 May 26th, 2022: Title Rept Raise Capital
  85. #87 June 9th, 2022; Incremental -VS- Exponential
  86. #88 June 23rd, 2022; Trusts and Affiliates
  87. #89 July 7th, 2022: Foreclosure Auction Case Study
  88. #90 July 28th, 2022; Attorney Management and Bad Note Case Study
  89. #91 Aug 11th, 2022: Importance of a Collateral File
  90. #92 Aug 25th, 2022: Jeff's Deal
  91. #93 Sep 8th, 2022
  92. #94 Sep 22nd, 2022
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  94. #96 Nov 3rd, 2022
  95. #97 Dec 1st, 2022
  96. #98 Dec 15th, 2022
  97. #99 Jan 5th, 2023: Servicing Trust Accounts
  98. #100 Jan 19th, 2023
  99. #101 Feb 16th, 2023
  100. #102 Feb 23rd, 2023
  101. #103 Mar 23rd, 2023: Down the Assignment Rabbit Hole
  102. #104 Apr 20th, 2023
  103. #105 May 4th, 2023: Owning Houses
  104. #106 May 18th, 2023
  105. #107 June 1st. 2023: Foreclosure Sale Live Case Study
  106. #108 June 15th, 2023
  107. #109 June 29th, 2023
  108. #110 July 20th, 2023: Running Title
  109. #111 Aug 3rd, 2023: Commercial Paper
  110. #112 Aug 17th, 2023
  111. #113 Sep 14th, 2023: Gerald Lemoine Guest Speaker
  112. #114 Oct 12th, 2023: Indicative Bid Scenarios & More!
  113. #115 Oct 26th, 2023: Very Successful Students
  114. #116 Nov 30th, 2023: Matt Answer The Phone
  115. #117 Dec 14th, 2023: Jim Antonucci Interview & Presentation
  116. #118 Dec 28th, 2023: End of Year Goals Review
  117. #119 Jan 12th, 2024: MeetUp & Partials
  118. #120 Jan 25th, 2024
  119. #121 Feb 8th, 2024: Distressed Pro Commercial Properties
  120. #122 Feb 29th, 2024: Case Studies
  121. #123 March 14th, 2024: Note Events & Solo 401ks
Lesson 105 of 121
In Progress

#107 June 1st. 2023: Foreclosure Sale Live Case Study

Mike Ruscica June 9, 2023

Join FasTrack Business Group to network with other students, or start a new one!

June 1st, 2023: Foreclosure Sale Process

Live Case Study with Mike

Getting Started

Foreclosure sale in Wilkes Barre: We’re gonna stealthily bid on this property. So kind of get into that on this call tonight or strategy of it’s been a real wacky one. I really can’t wait to talk about this. Just here we got another five minutes and then start to sign up.

Read more: #107 June 1st. 2023: Foreclosure Sale Live Case Study

Give everybody another two minutes here

Hey, Mike, what’s going on?

What’s up everybody?

How you going?

Having fun? We’re having a good time here. I got a great story to tell you guys tonight about the foreclosure sale process.

Okay.

So it’s good at seven o’clock here. You know, it’s funny, I jumped on a webinar about six months ago, a group at in LA Ria. And I like to jump on webinars, I don’t know, two or three, four minutes earlier something. And this LA RIA said, “Oh, we’re just going to, we’re just going to wait another 15 minutes for people that are late”. About two weeks ago, they sent me a survey. How can we improve? And I said, Please don’t punish the people that are on time. You say seven o’clock, seven o’clock, because I’m the East Coast. And now we’re really starting for me 10 o’clock at night. It’s like, my guys. Right? So it’s good.

Everything was new forget. I started realizing you for being early.

Wilkes-Barre Sheriff Sale

Foreclosure Sale Process

Yeah. penalize me for being on time. Well, cool. So yeah, I’ve got a very interesting story to tell here tonight. And I really hope that Amy is able to jump on because Amy and I are partners on this note. And it’s been crazy. So I bought a note three years ago, four years ago, and it was a it was a cheapo note. It was a crummy house out in Wilkes Barre, Pennsylvania, a crummy I mean, people live in it. And I did really very little due diligence and shame on me. Because hand I known what I know now, four years ago, this would have been water way under the bridge a long time ago.

I bought this note, with very little due diligence, I bought it with a pool of other loans. And this was kind of bottom of the barrel. I’ll take it just with the other ones. I even pulled the credit report. And in the credit report, it said that there was a $91,000 what I assumed was the first mortgage. But there was right in front of me in plain sight that this loan was taken out in 2008. And it just didn’t click in my head that my note had originated in 2001.

So whoever took this mortgage out, took it out behind me. And I just assumed that was the first and I just put this thing away. I said, You know what, let’s wait for some equity. The house is worth 70,000 I thought the first was owed 90. And I said let’s put this away for some equity to build up. In the meantime, I sold the 50% share to Amy and she was okay with us sitting on these things.

And that’s a very important point that I’m just going to kind of stop the conversation right now. When you guys are out looking for investors to partner up with. You want to find people that are willing to be patient and not breathe down your neck saying where’s my money? Where’s my Return. Whereas my return, you want to find people that you know, trust and like, and know that they are going to be patient, and they’re really using lazy money to buy into your portfolio.

Structuring Loans with Others

However you plan however you structure it, whether you are even creating a fund, you know, these, these loans do take time. And I’ve been saying this for years, the lazier you are, the more money you make, because every month that you wait to start anything, the first is getting paid down, if you’re buying seconds versus getting paid down, and which is giving you providing you more equity protecting your position. So the lazier you are, the more equity builds up protecting your position.

So in this situation, the lazier we were, we waited and waited and waited, and then COVID and all this craziness with the real estate market. Now, Mary, who usually sits behind me, I met him at a hotel, ma’am. And she said, I think we should start foreclosure first has gone down to we ran another credit report first has gone down to $71,000. And it looks like the house is worth 139. Perfect. So we get our foreclosure attorney, which is horrible, by the way.

And we got our foreclosure attorney and we start the ball rolling. Thinking that we’re going to take this loan, we’re going to take this to foreclosure subject to that $71,000 first mortgage. So we started foreclosure, the borrower decides to abandon the property. Just move out. So about four months into our foreclosure process, I pulled another credit report, and I see that the first is now four months down, it was perfect at a perfect pay history, boom, boom, boom, every month, they were making payments, until we started foreclosure. And now that first, what I thought was first was four months down.

We’re okay, so we’re four months down, we’ll cure this first mortgage, when we take over the property. We’ll get this house sold, pay off the first and we’ll get paid in full. So then our attorney calls up and says, Hey, listen, we just got contacted by the title, a title company that actually wrote a title policy on that 71,000 What used to be a $91,500 balance, saying that we really they realized that they screwed up, and they wanted to pay us off.

Because they were in third. Or they weren’t in third. We were in second lenders this crummy little first mortgages out there, too. So we’re like, oh, shit, man, we’re in first. So the point that out, one of the points that I wanted to make here tonight is when you buy first mortgages, whether you know it or not, nine added eight out of 10 times you’re going to end up with the house. It’s just the nature of the business, especially when the borrower moves out and now the property is vacant. So we slide up into second, there’s this little nothing first mortgage that we’re trying to pin down. What’s going on with that. And we’ve got this. This, Washington Mutual now. m&t Bank, behind us, and we’re going to wipe out that debt.

And so the title company called us up and said, Listen, we want to settle and said, Okay, give me $90,000. We’re owed our strike price on this sale. We’re $51,000.50 and change. And we said Give us an ID. He goes back to the insurance company insurance company says we can only give you what the strike prices. I said, Well, we’ll take our chances and we’ll take we possibly could take this house back at the sale. Because it’s such a convoluted title report that probably the people that are bidding out here in Pennsylvania won’t know what who’s on first and who’s on second and who’s on third. So everybody might just stay away from this thing.

Bidding Process

We may end up taking this property back $140,000 house that comes with a vacant lot next door in Wilkes Barre in a really nice neighborhood. I drove past this place about three weeks ago and it’s So this, this attorney told me, we can only give you that I said, we’re just going to take it to sale. So long story short back and forth, back and forth.

Literally, the sale is tomorrow at 1030 starts tomorrow at 10:30. And we are out here and we’re physically going to the sale. Now this loan is owned 50% ownership in my trust inside of my IRA. And then the other 50% is owned by Amy with her just business funds. But the loan is in my company name in my trust name. So we were you know, I mean, we read trying to wrap our head around this thing like, so do we take this thing back inside of my trust, so that we don’t have to pay taxes, because it’s inside of an IRA.

And then we said, well, we can’t do that, because we can’t go to the sale, and bid, I don’t think on our own loan that we have a position on. So now we’re going to use another entity. And so we’re here basically incognito. With this, we’re not here as ocean point Trust, which is my trust. We’re here as Bay Point holdings, which is another entity that we owe. And we’re gonna go in there as a third party and bid this thing.

Now, this attorney for the title company, is also going to show up at the sale. And we literally just got off the phone with our attorney’s office. And they said, and there’s they’re still in the office right now at seven o’clock over here on the East Coast. Our attorney is still in the office going over case law to find out if we are forced to, to let them cure this loan at the strike price. So So think about this. Now, you’ve got to if you’ve got a borrower who at the 11th hour, comes up with the money to cure their loan to save their house.

In a lot of states, you have to accept those funds. I mean, not only because of it’s the right thing to do to keep the borrowers in the house, that’s what we’re always trying to do. But you can also be forced to accept that payment. The problem is, you may lose out on the attorney fees that we’re looking to gather, because we’ve got now we’ve got $7,000 worth of attorney fees. We’ve got the unpaid principal balance, we’ve got the interest balance, and now we have the late fee balance as well.

And so this woman, Jessica is in the office right now, looking through case law to see if this foreclosure sale could actually yes, it that’s and that’s what I said to this woman, Jessica, I said it’s the right of redemption. But it’s there isn’t a redemption period in PA in New Jersey, there’s a 10 day redemption period, meaning our foreclosure goes off tomorrow at 1030. And then you go 10 business days from tomorrow’s date, which is the second and you take that out to the 12th to the 14th for the borrower and only the borrower to redeem redemption. I don’t think I’ve talked much about redemption.

Redemption can be very powerful.

And I don’t want to get too far off track of telling the story. But I am going to talk about redemption when I get done here on strategies that you can use to acquire properties using the redemption period. So can this third mortgage redeem at the 11th hour prior to 1030 tomorrow morning for us to cancel the sale. Our attorney is literally poring over the law books and making phone calls to other attorneys because they’ve never experienced anything before.

This is the beauty of buying seconds. This is what makes it so fun. Because I literally bought this loan for like seven grand and actually I bought this loan for like five grand and Then that’s yeah, Jimmy, I’ll get to that. That’s a good point. I bought this loan for five grand, I sold half of it to Amy for four grand. So I recapitalize 90% of my money, just on the sale on the partnership. Had I known that this was a first mortgage, it the price wouldn’t be $4,000 to partner up with me on this thing, because we’re sitting in a bad position.

So Amy looked down. And that’s amazing, and we’re happy. So happy for that. Because I mean this thing for basically no money. Then we had to come up with the attorney fees that we’ve been paying incrementally as we go through, we get an invoice, get an invoice, get an invoice. And here we are literally 10 minutes from the courthouse for tomorrow’s foreclosure. We will get paid in full now we’re going to bid we know that this attorney for the title company is going to bid $1 over our strike price. I literally just got this email I’m going to pull this up here let me share my screen.

Oh, okay. So this email came in at 6:38pm 715. I mean, this is live and then after I hung up with you, I spoke with my managing attorney about this, I explained that

You are aware of that little senior lien. And and you will ultimately ultimately like to purchase the property. The point that Steve made, which is the attorney was that realistically, you are not going to be the successful bidder at tomorrow’s sheriff sale, the attorney is playing to bid the sale on behalf of Old Republic old Republicans, the insurance company. If Skaggs bids, the amount that he is willing to pay you, you will only get 47. Three from the sheriff’s distribution, you will take away $2,831 more if you take it from him, and not through the sale.

But they don’t know that we’re gonna bid on this thing. And that’s what makes it so interesting. And so that’s what this is about as convoluted as it gets. 16 years of doing this now, I have never seen anything as complex as this. And that’s what makes us so interesting. So Jimmy brought up a great point. We, and we even offered this to the borrower, because we didn’t know that there was a loan behind us. So this week, we learned very early on. And I want everybody to really take this to heart.

So we were in second.

So let’s just take the scenario, what we thought we thought that there was first we thought we knew that there was a first we knew that there was a second and we thought we were in third. Now, these steps are all about when the mortgage gets recorded. That’s what puts you in first, second or third. The date, our loan was recorded in 2001 2003.

The little $50,000 First, that was a personal loan was taken out in 2001 for 51,000. And then this third was written up in 2008. Back in the heyday when mortgages were flying all over the place by Washington Mutual and they’ve screwed screwed up a few You deals. So what to Jimmy’s point, you cannot accept a deed in lieu of foreclosure when there is a mortgage behind you, unless you’re willing to or technically what you should do. If you are going to accept a deed in lieu of foreclosure from the borrower, you should first negotiate any liens that are behind you. Because when you accept the deed in lieu of foreclosure and record that, you are extinguishing your position. And now, anything that’s behind you slides up.

So if you if you’re in first and there’s a second, and you accept a deed in lieu of foreclosure, and we’ve had, we’ve had people accepted deed, a first accepted deed in lieu of foreclosure, because they just didn’t know this rule, which is ridiculous. When a first accepts a deed in lieu of foreclosure, they extinguish their position. And that second mortgage is now slides up into first position, that second mortgage can start foreclosure and wipe out that deed in lieu position. And you end up with your crummy little second, getting a house for basically for free.

Nobody tells you this kind of stuff.

And so the first deed in lieu of foreclosure I did. That was Tony, that was the house out in New York, Pa that we did all those years ago. That piece of junk. And so which I ended up making money on that thing, too. We were we were in first position on that note. And I contacted the borrower borrowers like sure, give me I told him, Give me 500, I’ll give you 500 bucks after I received two rental payments, the guy was renting it out, excuse me to rent, not paying his first mortgage. So they made two payments of 475. That went into my self directed IRA. And then I wrote him a check through my IRA, to the homeowner. This is a landlord, a $500. Check.

And we were done. Now, when I got the deed in lieu from this homeowner, my attorney says, We have to run title. I’m like, why? What’s the big deal? He says, Well, and this is what I learned this lesson. If there’s a second behind you, that second would slide up in the first second foreclosure might be when I’m like, please, room title.

That’s a great, great scenario. And so I was taught to always use an attorney, when when accepting or when negotiating a deed in lieu because first of all, you don’t want to look predatory. That right word to the borrower, like you didn’t know something that they don’t know. And you’re getting a house for free, essentially. So you always use an attorney and you always run title. And we screwed up this loan. Again, this is this is how embarrassing it is. I actually sent a deed in low package to what we bought, the borrowers moved into, and we offered him 500 bucks.

I mean, I screwed up on this loan, every which way, every which way. Thank God, they didn’t accept the deed in lieu because I would have extinguished my first visit my second position. The third would have slid up into second and kicked my ass. And so is it possible okay, so Jim, Jimmy is coming up with some good stuff tonight. Is it possible to pay off the first slide into first and then reoffer a deed in lieu? Exactly. Exactly. So that’s why you want to negotiate any liens that are even ahead of you or behind you. To get yourself into a good position before you start doing anything

I knew, I knew, I know a guy guy who’s a local investor over here in New Jersey. And he found a note on a funeral home. That was a third that he bought it for. times to doughnuts I mean, he got it real cheap. And then he negotiated every lien on that because it looked nobody really understood all the well these lien holders. were accepting five and 10% payoffs. And he ended up with at the time was like a $600,000. Funeral Home for 80,000 bucks, because he bought this, this third. And then he just started negotiating with all these other liens that were on this funeral home. It was basically an abandoned funeral home that they just walked away from there was just too much there was so much debt on this thing.

This guy negotiated between 10 and 20 cents on the dollar for every loan that was on that property. I remember hearing that story, and I just gotten into the note business. And I chimed in, it was a was a live meeting. Frank barrel Arey. I chimed in, I’m like, I think I love the note business. I think I’m gonna stay in this business. He says, You’re in the right place. This is these deals are happening all the time. Whether there’s good markets or bad markets, if you understand lien position, if you understand, discount. If you work these deals. It’s a fantastic place. So let’s get back into redemption period.

So I own notes in Michigan. I’ve gotten wiped out on a couple of loans where I own a second mortgage. And I let the first go to foreclosure because there was just no equity in it. Or there was just no reason for me to pursue it. I ended up with these loans at a real cheap price. I let them for I let the first wipe me out. And then three months later, I get a phone call from an investor says hey, listen, I can give you $20,000 For your, your loan, like but he got wiped out. There’s he said, I can give you $20,000. So I’m like Why in the world would anybody give me a $20,000 check for a loan that’s been wiped in foreclosure?

Well, off I go. I start doing my due diligence, and Michigan has a six month redemption period. Suring that six months redemption period, anyone affected by this foreclosure can redeem. So this guy, this is all he does is he goes to the foreclosure sale he sees who’s foreclosing. Then he does his due diligence on the back end runs title, all these things to see if there’s any Junior liens that have been affected by the foreclosure. There’s equity protecting that. And so let’s go through the scenario. So let’s say there’s a $200,000 first mortgage $100,000 second mortgage and the house is worth it says Be generous, the house is worth 400 Well, me not being the person that I am paying attention. Seeing that this was a little bit of equity, or in this case, full equity, protecting that position.

The foreclosure on the first mortgage was for the amount of 200,000 would I say 200,000 100,000 And the house is worth 400,000. So the foreclosure action on the first was a $200,000 number. They buy my position out for 20 grand and then they redeem that $200,000 foreclosure. So they’re out $200,000 To redeem $20,000 to pay me off. They’re getting a $400,000 house for $220,000. That’s the redemption strategy in Michigan and a few other states.

Minnesota has a redemption period that lasts six months and 10 days, the six months is for the homeowner to redeem. And then the 10 days after the six months is for anyone affected on title to redeem. So, Minnesota, Michigan, like I said there’s a few other states and our people this is just that’s their only strategy. I mean, that’s their business model. I’m just trying to show you the different ways by purchasing liens at these dis at these discounts.

I hadn’t an attorney call me up the other day and told me that I have to accept that $5,000 payoff on my junior lien. I don’t know where you got that from buddy, but it ain’t happen on my watch, and basically hung up on him, that was one of my borrowers. And so redemption, redemption is a very interesting thing. I have until 1030, tomorrow morning to cancel this sale. If it makes sense for me to do it, but at this point, it doesn’t. So I’m going to the sale. Knowing that this going to the sale, knowing that this title company is going to outbid my strike price by $100, or $1,000, wherever the minimums are, but they do not know that I’m going there to place my own bid.

So let’s run this through now.

I’m owed 50,000, let’s just say it’s just me and that I don’t have a partner and I’m owed $50,000, at this sale, and the house is worth 140. let’s say I’m going to over bid from using a different entity at this sale tomorrow for let’s say $7,000 over the bid. I know that this title company is coming in with $1,000 over bid. Strike price is 50. This guy says 51. And then I’m gonna come back and say 52 as my other entity, he doesn’t even know that I’m pushing plain trust. I say 52, he’ll say 53. I’ll just jump right up to 57. And hopefully, it’ll be enough to scare him away. So what happens 30 days later, Sheriff gets the money and wires it to me to my trust account to my retirement account. So I get the 50.

Then the second, this mortgage, this behind me gets the 7000 that I overbid. And I get this house and this vacant lot essentially for $7,000. I get my 50 back. I get the 50 from one entity goes into my retirement account. So I’m actually funding my retirement account with my personal funds, which is totally legit, because I’m doing it through a foreclosure sale. I’m not doing it as a contribution to my retirement account. And then I’m over bidding by $7,000. And hoping the title is just so screwed up on this thing that no one else bids, I could get this house for $7,000

I mean, I could I could over bid by $20,000 I’m not dying to get this house. But for seven grand. I put it on the market for 70,000 tomorrow after I get it some lucky homeowner will end up with this thing. And so that’s that’s essentially where I am with this thing. It is a crazy crazy deal. And I’m sure you guys have some questions about this and I’d love to hear them because I’ll talk out of here. If you want any questions, please just unmute yourself

I think we just I think we just saw days with

the question Uber the ride that’s that’s what I want to hear. Like where’s the part that I lost? You

know, no, I followed it. You you bought the note for four or five grand? Yep. So you’re only you’re only out of pocket for four or five grand, but it’s worth 50 Plus attorneys fees but the notice is worth 50 So when you when you want to be at at 57 You came out of pocket 50 But you got that back.

I will get back this all happening tomorrow. You get that

back and then and then the other seven goes to the third position. soon, but you get the title and you get the house. And now you could sell the house for market value

or less, because as is full of junk,

okay? or less, okay? I knew about the various states rights or redemption, but I didn’t think that I didn’t know that you could buy. After the foreclosure, you could buy the the interested parties position, and then redeem it and acquire the property that way, I did not know it’s a very,

I mean, let’s say, let’s face it, buy in seconds is very niche II. But to see a business model, when this guy called me up, now I put my 800 number on all of my assignments. Your he doesn’t have to be an 800 number, it could be your cell phone number, whatever. But when I have an 800 number that I use, when I contact my borrowers, my attorneys tried to keep my business completely separate from my cell phone. I put my 800 number on the assignment. And when these Michigan investors were calling, you’re like, Well, you made it really easy, you put your 800 number right on the assignment. I’m like, I’m looking for guys like you to call me because I want you to buy out my position.

And he was not the one time that this happened. He was not very forthcoming with his business model. He was not coming at all. All I all he said was I can buy out your $100,000 second position for 20 grand. Now, this is a note that I paid 4000 bucks for. So I’m like foreign to 20. That’s not bad. But what the heck is this guy doing with a webinar? I got to know. I figured out that he is using the second lien position to cure the six month right of redemption in the state of Michigan. And I’m like, Alright, no, you’re up to now I get it. And it’s just a it’s a it’s a business model.

I mean, using these strategies, you know, between all the information, you can get off a pacer, all the information that you can get out of county records. I know Figlio Z’s like drooling at this type of stuff, because he called me up and like, who’s in here, I think I think he’s on here now. He started digging around on on title and looking at Simon’s and collateral. And it really is. He who has the most knowledge wins. And to figure out that there are actually strategies that you can use to get that information that the attorneys don’t even understand.

People just don’t understand that they can even foreclose from second position.

So you keep an open mind when it comes to trying to find a business model that it suits you, in relation to all these lien positions, because it really is powerful. And like I said before, I was working with one student a couple of years ago, and he bought 21st mortgages. He ended up with 90% of those properties, whether you want it to or not. So be prepared when you’re buying first mortgages to know what you’re getting into. Hey, maybe you’re young person, you don’t mind owning a property right now I’m three hours away from home. I out here. I mean, it’s a small deal. You know, it’s first of all, it’s fun. Second of all, I get to see the foreclosure process or the sheriff sale process in Pennsylvania. And our family has learned the foreclosure process in North Carolina.

We learned the hard way. We showed up at a sale in North Carolina. And the trustee attorney is like what the heck are you doing here? We haven’t had anybody show up and an attorney at a foreclosure sale in 19 years because in North Carolina the foreclosure process is completely different. And it’s different county by county, nearly 100 counties in North Carolina alone. There are so many different strategies when you start getting into the legal end of the foreclosure process. The difference is night and day from North Carolina to PA to New Jersey, New Jersey has a 10 day right of redemption. And the sale happens that day. The gavel strikes and see sold. That’s it. The only person who can come and redeem is a homeowner within 10 days.

Now, the strategy in New Jersey, I would have to think would be if there’s equity in that foreclosure, someone could approach the borrower and say, listen, here’s $220,000 Let’s redeem it. And we’ll sell this house and we’ll split the difference. You keep half of the $100,000 equity, you keep 50 and I’ll take 50 you would approach the borrower to redeem but you only have 10 days to do it. So you better be sharp you better know what that house is really worth and whether or not you’re getting into a dream right or not.

Rate of Redemption

But and then, okay, so you know, the rate of return, that’s a long time. And so the rate of redemption is two years. The next question is, are the questions that are important are, what’s the period of time and who can redeem. Now, if a foreclosure happens, and and the foreclosure amount for the first mortgage was $600,000, and no one bid at the foreclosure sale, or someone bid or whatever the case is, if there’s still equity, is it worth it, for an investor to approach? The person that got foreclosed on to say, Listen, let’s redeem this thing. We’ll sell this property, we’ll split whatever is over and above the redemption of now, or will redeem this thing. And now you can start paying us something. I mean, there’s a there’s a million ways to read these kind of deals out.

Strategy

And it’s, it’s a strategy, just just by knowing the information that you now know, on how to perform due diligence, how to read title, how to go to county websites and pull up records, how to actually extract the information from the sheriff sales to find out when the foreclosure happened, what the amount was four, and what the house is worth. And, I mean, that’s essentially why I’m out here now at this foreclosure sale. Because in Pennsylvania, or in this county there is a foreclosure sale every two months.

In New Jersey in my county and Ocean County there’s a foreclosure sale every Tuesday. So as of this moment, as we speak, there are 45 active foreclosures that are gonna go off tomorrow that have not been canceled or postponed and that’s a lot and I’m I’m really banking on someone overlooking this property, and we buy that end up buying this house for seven grand essentially

Is everybody clear on this? Because I still kind of wrap my head around it. But it’s very interesting. And Amy, I know that you miss part of the call, I will get this recording over to you. Soon as I process and not even processing, I just get it from zoom, because I covered. I covered a lot of updates. Since we talked yesterday, these attorneys back and forth, literally 20 minutes ago, I should probably check my email now. I mean, this woman is still at the attorney’s office trying to figure it out. In get anything in update for this stuff. So is anybody have any questions about this or anything else?

Okay, sorry, this is from Nick. I can’t talk at the moment. But I’m curious if there’s still any possible legal issues that could pop up and spoil your plans? It’s a great question. I’ve been asking that way, myself. And we’ve been thinking about this and thinking about this. So the only thing I came up with when when I was talking to this, Jessica from the attorney’s office a few minutes ago was we’re going to move forward with the foreclosure and wipe out this third mortgage. Now, it’s the title company’s job, because they screwed up when his loan was taken out, is the title company’s job to cure.

This title issue, that’s the title. It’s not. It’s not like a PMI insurance. I had this long conversation with this. Title, Attorney nice guy, I mean, smart. I said, the only thing I’m familiar with is PMI insurance. And when you take out a PMI policy at the day of origination, and you’re giving, let’s say you’re doing a 9010 second mortgage, and you’re requiring the borrower to take out a PMI policy, because there’s only 10% equity on that second mortgage. And it’s there’s, there’s not enough.

There’s not enough deposit, I should say. Usually PMI you don’t need PMI after 20% equity protection. So you’ve got an 80,000, you got $100,000 house with a $90,000 first mortgage, and a $10,000. second mortgage, you will have to take out a PMI insurance policy to take out that second mortgage. And then you would have to have 20% equity coverage, meaning the house would have to go up $10,000 in value for you to drop your PMI insurance policy.

Now, the amount of the policy which the homeowner usually never gets to see is what the bank is seeing. The bank says you know what, if this borrower defaults, we want 100% of our money back if the borrower defaults. That’s a fixed finite number. With title policy. He said it’s not like that. But it’s not a you took out a $91,000 mortgage, we screwed up, you really am third, instead of First, we don’t owe you $91,000.

We have to cure the title issue.

And by him going to the auction and bidding $1 over our amount. He is curing and they’ve done their job. And so that’s why I’m not afraid of him bidding up this extra $100 or $1,000 over our strike price. I’m just interested to see if anyone else out bids us by 30,000 or $40,000. So it’s not like PMI insurance where the policy is for 100% of the debt and you screwed up and you created a third instead of a first.

If this was PMI policy, they would have to cover the entire amount. So it’s not like that. Which I found interesting. And I did not know that until two weeks ago, when I started talking sky. I just thought that, hey, you told us we were creating a $91,000 first mortgage, and it’s a third mortgage, and we’re getting wiped at a sale in a couple of weeks, you owe us $91,000.

It’s not like that. Which I really need to look into a lot deeper to understand title, and IR we go down another rabbit hole, to to figure out what the heck goes on at a title insurance company. And how is there a strategy there? Now, this attorney doesn’t nothing but these types of deals. He’s well versed in it. He’s well versed in it from a cover your butt mentality instead of, Hey, how can I how can I turn this into a business model? mentality? Because I asked him I said, So do you deal with a lot of banks that are that have these junior liens? He doesn’t, I don’t even know what you’re talking about. 20 I’m trying to get him to source adds some product for us? Sure, I’m always trying to do.

Mike, um, if you already went over that, fine. But, um, if they were, if they thought they were originating a first mortgage, then that kind of tells us that that $51,000 One is paid off, right?

He did not say anything about that. Okay, no, he, he says, we’ll look into it. But then when we told them that we’re taking this thing, the sale, you know, he’s like, Well, fu to them. Basically. Because we’re, that’s basically what we’re saying to him. And this has been, I’ve got to say, the most, not the most money, but the most interesting.

By far, and now tomorrow, we’re going to learn if there’s any potential to show up at this county on future sales, to see how many people bid who are the regulars? You know, we did some bidding down in North Carolina, Julie was, was running around three different counties, four different counties, submitting offers and winning bids and losing bids and deposits and everything. To see the process down there. And we did see a couple of repeat offenders that were showing up at these sales. And that’s their business to shop in the sales.

We noticed that in North Carolina, when the property has got to be about 65 to 70%. Of the price, meaning the house is worth 100. And bidding got up to about 70 people backed off, which so that makes sense. Now, you may have someone who will take this thing and go up to 90 cents, someone who maybe has an adjoining property and they have other plans for this for this foreclosure. And they have other plans for this property that it’s in your best interest to go ahead and pay 90 or 100 cents on the dollar.

Florida Sales

I have I have witnessed, I don’t know 50, sales in Florida, because they’re all online in Florida. I love it because I sit there in my pajamas and watch his bidding go and he literally the foreclosure process takes 45 seconds and bid bid bid and then the timer sets for another two minutes. Then someone else comes in and bids and the timer sets for another two minutes. And if no one comes in and bids higher, in two or three minutes, the sale is over. A

nd then I take that address and I go to Zillow, that guy just paid 30 cents on the dollar over the value. Because who knows maybe they’re in China, and they’re just gobbling up properties and they don’t care how much it costs. Or maybe there is a personal reason why that that auction that bidding is going for over 100 cents on $1 dollar of value.

I know one guy who bought in foreclosure the condo next door to him, he found out that it was going into foreclosure so that he could knock that wall out and make his his condo into a double. Which is pretty cool. So in that situation, it was worth it for him to go over 100 cents on $1, because he had other intentions of utilizing that property in a very unique way.

And so there’s all kinds of business models out there, guys, I really want you to, to expand your, your, your mindset to say, okay, so he who has the most information wins. You know, like I said, I totally screwed up on his thing. And it was all I had the information right in front of me, and I just didn’t recognize it. And I would have loved to work with this borrower, and just except start accepting monthly payments on this debt. But this guy was nowhere to be found and basically got the old fu to us and moved out. So any other questions out there? I know I covered a lot. This is a wacky one. Use this information to your advantage.

Sorry, I came in kind of late, I had a couple of calls running late. Long, it’s maximum going here. So it’s about those notes I texted you about earlier in in Georgia. So as it could have been spreading the word like, hey, you know, a note buyer and all these other stuff like this, like I’m trouble with banks. I’m starting to form some interesting potential strategic partners with people who are not really no buyers themselves are kind of like used to be or have contacts who are banks.

So make a long story less long.

Basically, we’re now talking with a collections attorney, who I guess works on behalf of banks and creditors want to help him happen pursue this. So he sent us a couple notes or a tape today. I think he’s about throughout, it’s got about five mortgages on it. And the foreclosure sales are already scheduled for in a couple weeks. Okay, so I’m kind of wondering, what I’m trying to figure out like the best way to pursue it is is it worth getting involved in the sale of this late and just trying to go last minute Hail Mary offer like, hey, look, you have no idea what’s going to happen at the foreclosure sale? So tell you what will offer you 50, 60 cents on the dollar, you know, for guaranteed price or or is it better just to wait?

You know, that’s a great point. So why would somebody like I’m taking this property sale tomorrow, I’m getting paid in full. Is there? Why would I? Why would I and there are reasons why I would sell this note, even though I’m going to sell tomorrow.

Let’s say today, I go to Pacer.

I find out that this borrower has filed chapter 13 that screws everything up. And these loans that you’re talking about that have a foreclosure sale date set, why in the world? Would anybody sell that? Well, they run a risk of a borrower going into bankruptcy. There may be title issues. You had mentioned Georgia. Well, in Georgia, you need a license to do this business. Georgia. There’s a couple of other ones. The it’s a funny thing about Georgia and I know a person that has happened to a good friend of mine, where they were just sitting at the county records. And is this this law enforcement, for lack of a better term, just digging through assignments going, Oh, let’s see if this guy’s license isn’t a recorded assignment of a mortgage is just like I have recorded assignments all over the country. They just go through.

Let’s just pull it out. Does this guy have a license? No. Find him. Send him a fine. Get him to sign up because a couple of grand to get the license plus they get a couple of grand for the fine and it’s strictly financial. There’s no reason I have a license. And so what I do when I get Georgia notes, I broker him to him. Broker him my buddy who got fined and now he’s like, I got to license so I’m also just work the crap out of my Georgia loans. And so I trained him loans for either money or for other loans that he gets. Because he likes Georgia, because now he’s set up. He’s got a great attorney in Georgia. You know what it really comes down to

how you need it, you need what’s that you need a lawyer, you need a lawyer to I mean, you need a license to, to assign contracts.

Now you need a license to own a note in Georgia. They’re looking at assignment. This guy owns this, this guy, micro SICA owns this loan in Georgia. They go under, they go on their, their whatever their list of people that are, they do a search for me, and they’re like, Oh, this guy does not have a license. Let’s send him a fine. And now that he owns his loan, he has to get licensed. So there’s $2,000, fine, $2,000 licensing fees, and strictly cash, strictly business strictly money. And I mean, there’s a, you know, there’s a lot of government policy out there, there’s just about, you know, look at code enforcement.

Look, you know, having to do inspections, we live in Point Pleasant, and Point Pleasant beach, you have to get a permit to basically raking leaves. And it’s a ridiculous amount of permits that are required, strictly for money. And so I live in a borough. They do no inspections of rentals, it’s, it’s, it’s amazing. So we don’t have any, but in the beach, you you need permits for everything. And if they find something that you didn’t get a permit for, they go back in time, and they will retro actively find you. So yeah, I mean, there’s there’s all these different tactics that are through statewide.

Networking

So I just connect with enough people to say, Hey, I just came up with 10, Georgia notes. I’ll send these over to my buddy herb. Herb says, “Yeah, I’ll buy the centromere, I’m licensed, let me exercise that license”. And away he goes, “he’s in business, I get my broker and fee, I’m getting two or three grand a note. I just made 20 grand or 30 grand a transaction”. He’s happy as a clam. And we’re having fun.

Well, Mike, if I get some more info as it gets more information, because this is this was a bit of a unique situation where it came from an attorney’s office, not from a bank. So I’m compiling all the information, I’m waiting for the pay off amounts, actually right now on the PBS. And I’m actually also circle back and I should get the borrower information too. When I get all that compiled, can I send it over to you? And you can talk to her?

Absolutely. And I’ve got other people that are licensed to sweet. And so and it may be worth it for us to get licensed as well. Who knows if we can get the same price? Who cares? get licensed before you get fined. Right? And

exactly, Here, listen,

I was really using your head, right. But the due diligence alone that is going into foreclosure sale. Now in Georgia, Georgia is a very fast state, Georgia and Texas are the fastest. And it’s literally and I’ve said this to a few of you before they put you on a horse, a tire hands behind your back, they put a noose around and they slap the horse and he asked me to test and it’s just, it’s fast, it’s three months.

Now, it’s three months is a good thing, because you’re only paying 18 or $1,900 for the foreclosure process with your attorney from the years position. But if you’re in second position, you can get wiped. And you’re the one getting getting getting wiped real quick as well with this subject past foreclosure process. So the amount of due diligence would have to be tremendous to figure it out. And this I want this everybody to remember this. Why would anybody just like it?

My brother in law was a pilot. And he used to say why would anyone jump out of a perfectly good airplane? You know, parachuting, and he just always said that he just don’t get it. Why would you why would you do that? And it’s, it’s literally Why would you sell a note especially When you’ve gone through all the hard work of the foreclosure process, what’s in for them? And I always want you folks to ask yourself, Why are these people selling and it’s not just about getting a good price. I love love. And Tony Tony can can attest to this. I love to buy from stupid banks, like the bank that I bought this loan that I’m sitting here for tomorrow sale.

They own this thing they didn’t know is a first or a second. And they sold it to me. And I didn’t know it’s a second. I just was I bought it so cheap. I was just lazy about it. And so why does anybody sell loans? What’s their motivation? I was just mentioned, Tony. So when we were buying loans from our mentor, back in the day, he had a he had a portal, right? He had a website, and he had a price next to each note. So you go in earnest with this loan was $21,000. Just use this one, which was a loan that was a fantastic loan that I owned in my IRA.

This loan, he wanted $21,000 for it. And then he would send out an email. Hey, I’m raising capital and buying another pool loans, I need to raise, I don’t know $2 million by Thursday. I’m like, okay, cool. So they call them up. I’m like, No, that one loan in Denver? Yeah, I want to buy that one. What’s the best you can do? He’s like, give me 6500 bucks. He’s in capital raising mode. And so this is information. This is just, and this is information that he’s really giving out. I’m in capital raising mode, and I got to close on these loans. So I don’t have $21,000 Give me 6500 bucks. That was one of my best loans I ever got.

That borrower paid me 95 payments of $250 a month, and then paid me $31,000 At the end, last year, that just 250 a month. And my retirement account just grew and grew and grew $6,500 Because I knew is I knew why he was selling, I knew exactly what he was selling he was in capital raising. And when this is the this is the real, this is where the rubber meets the road. This is what it’s all about, is knowing at that’s information, I knew exactly why they were selling these loans.

Then when he wasn’t in capital raising mode, all the pricing on the website went back to face value of the amount that he wanted. Because he wasn’t scrambling to get a deal closed. But you’ll win. I know Matt, you’re working very diligently a couple of others are as well connecting with these banks, you will quickly learn why people do what they do. And once you figure that out, the world is yours. Because you just have to now know how to do your due diligence and wait for the next Why are these people selling opportunity to get your pricing correctly?

There’s there’s nothing more important about this business then information.

It’s all information. I you know, I see other people they just look at their I don’t have $21,000 Well, yeah, I get it. And you know that that 21 grand. And we just have a saying when when you and Matt you’ll you’ll attest to this. When a bank says no. It means no today will mean no tomorrow or next month or even no next year. Yeah, the banks are looking for par right now. They they always want par I don’t want to lose money either. I want whatever I got into this thing. I want it back but who in their right mind is going to put themselves into the position that they’re in for the full price of the deal. And I totally understand it. They want par But I hope you get it.

Now today, you know asking par means no today but when this shit starts hitting the fan, which is going to start happening soon to these banks, with these failures, with this lack of capital that is actually happening. There par today could be 60 cents tomorrow and 30 cents a year from them. I remember when we got into this business in 2007, everything was smooth.

We started March of 2007 and performing second mortgages, were trading on a bank to bank performing seconds, were trading at 110 cents on the dollar. Why in the world would you ever get into that position? Well, capital was cheap. And you could borrow a two or 3% and buy a performing loan that’s yielding a 12 or a 15. And now you’re getting your nine or 10 as a return. These banks have made sense performing second liens, we’re going for 100 110 cents on the dollar bank to bank and I’m talking about large trades.

And when we were in, you know, got into this business, and oh, seven things were cranking by 2009, you couldn’t move those things at 40 cents on the dollar. Because the downside potential was so huge, because the property values have changed. So that’s the story. But good luck, guys. I mean, go out and find those loans. Because it’s where the money is, it really is. And it might be frustrating for a while, but hey, it’s worth it. Anything else guys?

Um, well, I guess Mike, actually, I don’t know else has anything. But do think about the kind of following employing on that grid of going after more these attorneys who are kind of already doing the collections for the banks, that’s kind of a way to come in the side door is a good avenue to explore as well.

I used to I used to teach that. I used to pull up a Zillow map. And I turned my filters on to foreclosures and certain area like we were targeted. Phoenix was a great place to target and Maricopa County in Arizona, and we would just pick that county and just do every loan that was in foreclosure in Maricopa County. They gave in most instances, the foreclosing attorneys name. Then we google that name. And we get a phone number when we call them up.

We did it a couple of ways. One, we would do it as a blanket shotgun effect. And then we would do it as a targeting effect to say that one property address in Maricopa County that this attorney was handling, would they be interested in selling that loan now to close to foreclosure? Okay, well, do you have any other investors that you work with these people work with a lot of investors.

And I always stress to say listen, if we do buy these lows that are in foreclosure, we will continue to use your firm to continue the process. I never want them to think that I’m going to take any business away from them. And that’s a good and then I also stress how many other investors I know that own loans in Maricopa County or in Arizona itself. The attorney has to be look local to the state not to the county. So I can hire someone for closing property in Phoenix and they’re not American County. They can be some other part of Arizona. And I stress to them how many other note investors I know that I can refer you to if you’re do us a few do us a good job.

And I love attorneys. I love talking to them. I love telling them the horror stories, the funny horror stories that we have, and because they have the same stories, but they’re looking at it. There’s very few attorneys like we had on here Dan Barron the last call lose an attorney handling three of our foreclosures he gets it he’s like what the hell you guys deal with man? I want you know this. Most of them. It just goes right over their head. And and when you when you find a good smart attorney, they’re a good thing to have in your pocket as a as a friend. And if you treat these girls with respect, you’ll be in good shave.

So what did that initial call look like when you call it a certain up out of the blue? Hey, my name is Mike, I’m a note buyer, or do you say like, no, no, I guess you’re approaching Are you? Are you trying to buy the note with a property?

I am never a ‘note buyer’. They don’t even know what the heck you’re talking about. Hey, I see you’re foreclosing on a property in Maricopa County. Yeah, yeah, it’s a pretty big deal. It’s, you know, to $2.1 million mansion or something. You know, you found it on Zillow. I said, Yeah, it’s a nice looking property. Well, listen, do you think that the investor would be interested in taking a cash offer now, so that we can take over their position? And it’s never I’m a I’m a note, buyer note. I don’t even say a note investor. I’d say I’m interested in this property. And I wouldn’t mind taking over the investors position. You think that there might be a deal there?

And that’s, that’s how you phrase because that’s when people think, well, they think the position in the in the in the debt stack. They don’t think no, they think, Oh, this is

not a position to debt stack a position of the foreclosure position that they’re in, hey, you know, you’re still through Oh, yeah. The their position of ownership. Their position, like, like, if someone called me up tomorrow, say, Hey, Mike, I want to take over the position that you’re in, in this foreclosure process over here, Pennsylvania, that’s taking over their position to continue the foreclosure process.

Now, when you’re working with attorneys, and this is getting a little too far down the road. But you have to make sure that when you are assuming their position of investor owner, although you don’t say no, I never use that word. You want to make sure, like like some foreclosures, you started foreclosure. And the attorney fees are accumulating. And then if I sell my position to another investor, am I going to be assuming all of the previous attorney fees?

So we’ve done a foreclosure we’ve had $20,000 with foreclosure feeds, because the borrower fought us every inch of the way. We got that money back because we did foreclose and all that money was recoverable. Right? Or am I assuming all? Or has this thing been like this foreclosure we’re doing now? We’ve been paid invoice 1500 1500 1500. Right down the line. And you know, Amy, and I were kicking in to pay $3,000 invoice or whatever. But if you’re doing what you’re trying to do, Matt, and assume their investors position, where are we at with the attorney fees before we get too crazy. And that’s going to be part of your purchase and sale agreement, as well.

I’ll get into all that as you get into this. Because you don’t want them dry. Oh, and by the way, you’ll lose 15 grand for six months with a work or two years with a worker, you know, we had one foreclosure go off almost three years. This borrower fought us every inch of the way and we still want. We accumulated some attorney fees on him. But they’re all recoverable. We had a $35,000 up. And this was a foreclosure in Florida, we ended up with a check for $67,000. But between the interest and the attorney fees, I mean, and the poor borrower who fought us every inch of the way he was paying his attorney as well.

So he’s paying his attorney, oh my gosh, and ended up losing his house. And that was one of the ones I gotta send you guys over a video watching this foreclosure process. I recorded it in Hillsborough, Hillsborough County in Florida. And it was it was a very interesting video. I recorded the screen of of how the process was of who’s bidding this and someone up bids that and this one and all of a sudden, we got past our strike price of 67,000.

We knew that we’re getting paid in full. Then it made it up to $85,000 before before someone actually won a bid is very interesting that I love all this kind of stuff. Because it’s all it it’s like man As you know, there’s only it’s you can do so much research to make sure that you get the right friggin answer. And it’s a beautiful thing.

Okay, well, I’m gonna definitely cover that in my marketing strategy then and start reaching out to foreclosure attorneys.

There’s an awful lot of them. There’s an awful lot of foreclosure attorneys and, and foreclosures that are going on, and it will be going on. And you know, it’s funny, I’m actually looking through the county that we’re in here for the foreclosures. I see four or five of the attorneys on my line, that guy. They’re going to be here. Not physically, but they they have gone through the foreclosure process. And PA, we’ve done quite a few pa loads of years.

Alright, folks, well, I appreciate everybody coming on tonight. If there’s any more questions, just shoot me an email and I’ll get to him. I am going to jump off, I’m starting to get a little sore throat, I gotta be I gotta have my, I gotta get ready to jump out of my chair and bid tomorrow. And even even when we call the sheriff’s office, a lady said, guys better be fast, man. Because there’s 45 of them. Starts at 1030 You got to have the money, the 10% down to us by noon. 45 And it’s like a, like a cattle auction. And should be interesting.

You’re gonna livestream it for the truly passive community.

You know, some of these things. They don’t let you bring a camera in because they’re worried about collusion. We’re head Mike. And oh, that’s true. Yeah, the collusion thing. number of years ago, when I when I was teaching this business with a guy out in California, Dean angle. There was a big arrest in the FBI had put plants into these foreclosure auctions, because four or five guys, we get all the houses and you get the first one.

I’ll get the second one. You get the third one. I’ll get the fourth one. She’ll get the fifth one. And they ended up busting like a lot of people. You don’t want to get caught doing that. So no, I don’t know. Okay, folks, have a great night. Thanks for being on and Amy, I will get this recording out to you. So you can check out the updates.

Thanks. Yeah, it’s my thanks my Sorry, wrong in the conversation, everybody. Thank you. Thank you.

Cool guys. Have a great night.