#019: Pools! Tapes! Discounts! Performing & Nonperforming! What are you talking about?

Michele Garbus, a real estate note expert explains what this all means and why this could be a great option for investors who may be looking for a bit more passive real estate investment option. 

At first it can seem complicated but it will all start to come together as you listen to Michele share her details on this type of investing. She also has great resources for those who would like to learn more about the real estate note business.  Join us now. 

Check out this episode!

SHOW NOTES

1:03 – Background on Michele and her company, Real Property Financial; how her experience in mortgage brokering has helped in the notes business. 

 

2:05 – Information on what notes are and what it means for them to be performing or non-performing. 

 

4:14 – Part of the process involved with buying notes. 

 

6:29 – How notes can be mixed in pools or tapes and what types of notes Michele prefers to pursue. 

 

8:58 – Michele’s thoughts on the two different values that inform the value of the notes – value of the real estate and the value of the note. 

 

10:26 – What discount range she looks for in buying notes. 

 

12:03 – Comparing the market for today’s notes to 7-8 years ago. 

 

13:04 – Contrasting first and second position notes as well as comparing those to 7-8 years ago. 

 

14:30 – Ways to deal with notes that aren’t performing and how Michele tries to approach them. 

 

17:13 – Comparing buying notes to being an investor or money lender; notes as a secured form of investment. 

 

19:10 – Defining forbearance agreements and allonges. 

 

22:14 – Providing an example for how these mechanisms work. 

 

24:12 – Identifying some of the biggest risks in buying notes and ways to mitigate them. 

 

27:11 – Michele’s recommendation for people to learn about notes. 

 

28:24 – What banks typically look for when someone wants to buy notes from them. 

 

30:50 – How Real Property Financial approaches their annual training course; contacting Michele about the training or working together. 

 

32:48 – The most common mistake Michele sees people make in the notes business. 

 

34:06 – Michele’s recommended resources: The 7 Habits of Highly Effective People, The E-Myth Revisited, and Scaling Up. 

 

 

 

 

 

Resources and Links Mentioned: 

 

 

Contact Michele at michele@realpropertyfinancial.com or 303-674-0139 ext. 1002. 

 

The 7 Habits of Highly Effective People by Stephen Covey 

 

The E-Myth Revisited by Michael Gerber 

 

Scaling Up by Verne Harnish 

 

Contact Tom at tom@tombraegelmann.com or feedback@tombraegelmann.com 

Check out this episode!