67 Eddie Speed and Notes for Investments
Wendy Sweet (00:03):
Hi! This is Wendy Sweet and Jonathan Davis. And we are here today. Of course, it’s Sans Billy. I guess you would say, Bill is not with us in this first meeting today. He had a bigger name on the other line. He’s doing another podcast. That’s what he says he’s doing anyway, right?
Jonathan Davis (00:25):
He could be in there shopping on the internet, you know.
Wendy Sweet (00:27):
That’s exactly right. We’re so glad you’re here with us today. You know we have, I am so blessed to run in the circles that I run in. I get to meet the coolest people that are so full of knowledge. They’re full of other things too, but so full of knowledge and just famous in this industry. And today we have with us, one of my very favorite people in the whole wide world. It’s Eddie Speed. Eddie say, Hey!
Eddie Speed (00:58):
How you doing?
Wendy Sweet (01:01):
Eddie. I remember when I was a baby investor and I had just started in the mortgage industry and I kind of fell into the hard money. This was like back in 2002, and I accidentally fell into hard money by lending people. Lending other people. Other people’s money to investors. And I didn’t even know it was called hard money at the time. I just knew that, Hey, this is working. I’m going to start doing this instead of conventional loans. And there was one piece of material that I would send people, a package of information that I thought was just the greatest thing ever. It was when I first learned about seller financing. And it was Eddie Speed, with a picture of a superhero standing on the front of it. It was called Seller Financing. Do you remember that piece?
Eddie Speed (01:58):
I do! Streetwise Seller Financing.
Wendy Sweet (02:00):
That’s it! Streetwise Seller Financing. I sent that to so many people. It was so full of information that, I mean, there’s no way you could lose from having that information in front of you. And you know, at that time, and I still feel this way, but at that time I thought, Oh my gosh, Eddie speed is the smartest man on earth. And I just want to meet him at some point in my life. And I remember when I first got to meet you, I thought I’m meeting this guy that this mentor, this guru, this person that I have just been thinking. Wow! And he’s real! And now we’re good friends. And I’m just so, so excited and blessed to be in your circle. And we’re really, we’re really glad you’re here with us. Thank you.
Eddie Speed (02:55):
Well, that’s a little embarrassing, almost. It’s very inspiring. Wendy. I consider you ultimate rock star in the business. And for you to say that. My God, I don’t know quite what to say except I guess if you know, you’re an expert when you’re 50 miles from home with a briefcase is what my dad used to tell me. Right? You’ve been to my house and you know how things are and just in the real world. So, yeah.
Wendy Sweet (03:23):
That’s right! It’s a beautiful house actually. It’s awesome! I’ve been to your ranch, which I really, really love that’s. What a way to unwind and truly relax and sitting around the campfire and eating steaks and popping the top couple bottles of wine. It’s ready to go.
Eddie Speed (03:47):
Pretty good times. We had a great time. And I think you and I had a good, and Bill of course, in that loop, but I think we’ve had a good kindred spirit. We’re not exactly in the same business, but we have a business that can work together. And back in the old seller finance days of the 90’s, I was super close with a lot of the hard money lenders because these guys were carrying seller finance notes and they would wrap their hard money loan for just a short period of time. And the guys wanted to make sure that they could sell that note. So I actually worked with a lot of hard money lenders then. Because they were concerned, Hey, I don’t want this guy wrapping the note. And all of a sudden can’t pay me off. So anyway, I wrote that book in 2002, I believe. And that was about probably 10 years after I was on a journey of teaching real estate investors how to create seller financing. So yeah, I wrote that book. It’s the first thing I ever did and started in the training business probably around 2000. So God! Wendy, that’s been 20 years in the training business.
Wendy Sweet (05:05):
Oh no! That’s amazing! That’s amazing! It’s really amazing! Just so people know, I didn’t steal the book. He actually allowed us to download it for free and I would just give people the link so that they could go download it as well. So just so you know, I don’t want people to think I’ve taken advantage of, but the boy that was really some, some great information. So today on these two hours that we’re going to be speaking where we, you know, do two different interviews that we do. We always highlight a superstar the first hour. And then we do a panel the next hour. So, in our next hour, we’re going to do a panel with other gurus with great, you know, real estate teachers as well. We wanted to highlight you on this one, not only, you know, to talk a little bit about what you do education-wise, but we also really want to talk about the note business and seller financing. And what’s going on in this world right now. You sent Jonathan and I some information today that I’d love for you to share with us as well. So if you don’t mind, you said you’ve got a great story, let’s hear it.
Eddie Speed (06:27):
Well, you know, Wendy, seller financing, creative financing, really the purpose of that is to fill the gap when either cash or credit has any kind of interruption, right? I mean, that’s the idea is that seller financing specifically fills the gap that conventional lending doesn’t fill. Or conventionally cash didn’t fiil. Some real estate sells for cash, but not a huge amount. And so we had been in a cycle, you know, in the last, probably six years. Where credit’s been fairly good. It wasn’t crazy. Like it was in 2004 through 2008, but credit has been pretty plentiful. And it certainly fueled a real estate market. If you think about the average real estate investor, and of course, Wendy, you and I are in a mastermind with a lot of these, what I call Ninja real estate investors, and I’ve spoke it pretty much, most of the big masterminds that have the “Ninjas” in the last six months.
Eddie Speed (07:41):
Right? And so I feel like I probably the top 500 guys in the business, I’ve probably gotten to speak to probably 350 of those, maybe? Something like that, maybe 400, I don’t say all 500, but maybe. And I am what my mission is, is to say, when could you use creative financing when the traditional markets didn’t work? So let’s look at wholesaling, what started wholesaling and where did it morph to. Now, Wendy, you act like you’re a complete rookie, but truth of matter is you were pretty dang seasoned in the last cycle.
Wendy Sweet (08:19):
Eddie Speed (08:21):
So in the last cycle, when the market blew up and money evaporated mortgage money evaporated, then some of the first guys back in the market were actually was wall street money, the hedge funds, right? And so they went into this market trying to buy houses, which they’d never really bought before. And they were trying to industrialize it and they just didn’t have the horsepower to go find all the houses and do all that stuff. So they said, Hey, Mr. Hot shot real estate investor will buy your contract. You don’t even have to close it. We’ll just flip your contract to us. You can wholesale it. And when you do that, then they could then add a lot of volume. And so with the original guys that started that when you were guys that you and I hung out with, they were kind of the industrial guys flip into the hedge funds. Well, that became a whole new business because the guys didn’t have to fund it, fix it and sell it to a consumer, right? Eliminate that part of their business. So they did. And then all of a sudden TV came along.
Wendy Sweet (09:35):
Home and garden TV.
Eddie Speed (09:39):
And when the HGTV dreamer came along, see he was the newest guy at the table. And he didn’t know what the rules were. And honestly, I would not that even cared what the rules were. Like Wendy you and I would not let a guy flip a contract to us and let him make 35,000 bucks. I just, if he did it want some probably be done right. Was not, it was not in no super seasoned guys would do that. And the hedge funds really wouldn’t do that. That was sort of a, let’s just call it an excessive fee. Right. And, but all of a sudden these hot shot real estate investors could go out and find the newest HDTV dreamer in the market. In fact, the guy with the newest lit list was the most successful. The guy that had the stale list for you. But a year ago, he wasn’t selling for the most money. It was the newest guy with the newest, want to be real estate investor out there. And he could flip his contract for crazy money.
Wendy Sweet (10:42):
Yup. Too much.
Eddie Speed (10:42):
And all of a sudden this started driving this market in what everybody now knows as what they act like has been around for 20 years, which is the wholesaling business. Well, that’s actually not true. It’s only been around since this last cycle to any measurable degree. There’s always people that flip the contract, but it’s never been like a definable business. So, now we enter a cycle where the mortgage industry has an issue. So I’m going to share this screen, Wendy. I think okay, I’m going to share this screen. Share screen. And I’m trying to make sure I share the right screen. I’m hoping it’ll like, I have a little shiny thing that tells me.
Wendy Sweet (11:32):
Oh, don’t share any of that stuff. We shouldn’t see.
Eddie Speed (11:39):
Just go for it Wendy. I’ll go for it.
Wendy Sweet (11:45):
Yeah. I’m pretty scared.
Eddie Speed (11:49):
I don’t want to, I don’t want it to make this a PowerPoint light show or anything. Can you see my cursor?
Wendy Sweet (11:54):
I can’t see your screen. I haven’t seen it.
Eddie Speed (11:57):
Allow. It says Allow.
Jonathan Davis (12:00):
There it is. I see it now.
Eddie Speed (12:01):
Can you see my cursor? So my cursor right there is, so this, this is the mortgage credit availability. This is for mortgage bankers association. And this is, this is basically December of 2019. If you see it was right up here. Right at maybe almost the peak since the crash of 2008. Okay. So you see more, that credit would go down a little bit and then it would go up and then it would go down. But right in here somewhere was around the fall of 2019. And Wendy right here. Can you see that? Yeah. This represents, when we found out there was something called COVID 19. Okay. And in less than 30 days, this was the mortgage availability chart. In a month, the people that could get a mortgage in February dropped about 25%. Okay. Now that was the end of April. And I just got a new chart here and this is blurry and I apologize. Cause this is like fresh off the boat. I mean like fresh off the boat as in like 20 minutes ago. And so I have the, it’s fuzzy and I apologize for that. So let me just show you this. We were here and now it’s slid a little more down, maybe another 10%. Okay. But it’s not changing and it’s not going back up. So basically Wendy. Just kind of figure it like this. And I won’t wear you guys out with a bunch of charts and graphs and stuff. Let’s see. How do I unshare? Yeah.
Wendy Sweet (14:09):
Eddie Speed (14:10):
30%. This is a safe number, 30% of the people that could get a mortgage in February can’t get a mortgage today.
Wendy Sweet (14:20):
That’s huge. That’s huge.
Eddie Speed (14:22):
I don’t know what people think is huge. And so here’s the issue. How does this affect wholesaling? Okay. Well, let’s talk about what that means. When a wholesale guy buys a house, what’s he doing?
Wendy Sweet (14:40):
He’s buying it to turn around and sell it real quick. Is that what you’re talking about?
Eddie Speed (14:45):
Or rent it. Okay. So if he’s going to resell it Wendy, Who is he going to sell it to?
Wendy Sweet (14:54):
The wholesale guy’s going to sell it to an investor.
Eddie Speed (14:58):
Okay. He’s going to sell it to another investor, right? No, no, no. You’re, the guy that’s in CG with us. Right? He’s he flips his contract to a HGTV Buyer. What’s that guy going to do with the house?
Wendy Sweet (15:14):
He’s going to try to sell it to an owner, occupied person.
Eddie Speed (15:17):
Or he’s going to rent it. Okay. You think right now he knows the mortgage market has evaporated?
Wendy Sweet (15:25):
From the calls I’m getting, I can tell you that most people don’t get it.
Eddie Speed (15:32):
Yeah. So people are going like, Oh no, it’s all good. Right. I don’t even think that house buying business is going to be affected. I mean, the wholesaling business seems to be pretty much just like it was before. And I’m thinking, well, this seems, you know, I have this say in Wendy, I don’t have a crystal ball, but I do have a rear view mirror.
Wendy Sweet (15:53):
Yeah. I wish I could turn mine around.
Eddie Speed (16:04):
So, what it tells me is, is there some people that are really on the edge and really understand where the market is going. And there’s people that just real estate investors, to be honest with you, are not good at like following the ball. They’re good at knowing where the ball lands, but they’re not really good. They’re not really dated type people. And more people in the mortgage industry are data geeks. Right. You agree with that Wendy? Their data geeks and you know, mosque, I got a squad chasing this stuff all the time. I mean, they’re, they’re searching for the next trend in the market. Like what did Fannie Mae Freddie Mac do in the last 10 days? You know.
Wendy Sweet (16:47):
Changing the rules.
Eddie Speed (16:49):
They basically said, if you’re self employed, we want you to nail have audited financial statements.
Wendy Sweet (16:54):
That’s right! And who, who does that? Most people don’t
Eddie Speed (16:58):
Now they’ve got us, they got a plan B if they don’t have audited financials. So you’re an old mortgage underwriter. Right. Are the big guys going to go with plan B? Are they going to be scared of an agency buyback? And say, if you don’t have audited financials, we’re not probably not gonna make the loan.
Wendy Sweet (17:13):
Yeah. They’re going to be worried about that for sure. They’re going to err, on the side of caution.
Eddie Speed (17:18):
So, here’s the thing. I’m either giving people terrible news or great news. And you know, you know the difference? The terrible news is, if you don’t know what to do. And the great news is, if you know what to do.
Wendy Sweet (17:38):
That’s right. So what do we do?
Eddie Speed (17:42):
Well, first of all, Wendy, everybody in America should race to note school,
Jonathan Davis (17:50):
Wendy Sweet (17:50):
I have to agree with that!
Eddie Speed (17:53):
Let’s establish what’s called with common sense here. Okay?
Wendy Sweet (17:57):
I agree. I agree. And note school, isn’t just about learning how to create notes anymore. You have to, you have to learn what they mean, the mechanics of the note and how it, how it can work for you because it’s really a piece of clay and you just form it into whatever you need. And that’s what you teach people how to do. Right?
Eddie Speed (18:20):
I think so. I mean, a lot of people show up at note school just because they’re real estate investors right now, by the way, we’ve sold more training in the month of May, than ever in the history of note school. Ever. So, all virtual. Like it’s, it’s like, it’s inconceivable. Nobody would ever bet in a million years, this would happen. So there are people that are figured out, there’s a market change in how to do it. But I know that I take them in. We teach stuff to them that they never thought that was relevant. And then all of a sudden, when they re realize it’s relevant, then all of a sudden it makes sense. So if I could say to you, well Wendy, we teach you how to own your own note portfolio. When we teach you how to recapitalize it. That makes perfect sense to you, right? As we teach you how you can own notes instead of just selling notes, or you can buy somebody else’s note, and you’re saying, well, eventually I’m going to run out of money. It may be sooner maybe later, but everybody’s going to eventually run out of money. And so our big thing is like, how do you use the marketplace and recapitalize it?
Eddie Speed (19:31):
So right now here’s what we have figured out. And by the way, we just figured it out because of the environment that I’m in with you guys, Wendy and other people. And we were at a training business and people show up at our doorstep, right? I mean opened our doorstep and they tell us what their pain is. They tell us what they want. They tell us what their frustrations are, blah, blah, blah. Well, we figured out about two years ago. Hmm. There is really an insurgence of what we refer to as burnout landlords. And so the burnout landlord, he really is a guy that thought that this was all going to be wonderful until he figured out what an invoice is. Because when he bought this managed for him property. He didn’t think invoices were involved. Apparently the promoter didn’t mention that part. And he certainly thought there was no chance of vacancy.
Jonathan Davis (20:35):
You know, like. Yeah. Right. A hundred percent all the time. Right.
Eddie Speed (20:39):
I’m just telling you what they repeat to us. I seem shocked that these things happen. And so we’re having a little fun here, but, but it is a case. And so there’s an amazing number. There’s 18 million residential, more doors, more than there was in 2010. So the, the growth in the rental property space was obviously gigantic. And not everybody was a fit for that business. Now that doesn’t mean they don’t have money. That just means that they don’t have a tolerance for the deal. Right. And Wendy you have, you guys have built an awesome business. And you have proven a tolerance for these various business strategies. Right. But you get up and work at it every day.
Wendy Sweet (21:29):
That’s exactly right. That’s exactly right. That’s the difference. You know, we have powerhouse people like this that are working beside us every day.
Jonathan Davis (21:40):
Yeah. Well, Powerhouse people.
Wendy Sweet (21:41):
Changing, you know, able to change with what’s going on in the world. And I think that’s another key. Is real estate investors don’t love change and don’t accept it. And you, if you want to be in real estate, you have to be able to change. Like that. Constantly.
Eddie Speed (22:08):
None of us love to change. Let’s be honest.
Wendy Sweet (22:12):
I like it!
Eddie Speed (22:14):
You do? You like just getting up and totally uncomfortable every day? You probably do Wendy.
New Speaker (22:23):
Eddie Speed (22:29):
No, I mean, it is part of the thing. And I think every cycle, every black Swan, whatever it is, we want to call it. Right. There’s some, there’s some really negative things that come out. First of all, there’s some really awesome people that have been negatively affected that have done nothing wrong. There’s 5 million people that are in mortgage forbearance right now. Okay. There’s I don’t know the numbers going down, the unemployment numbers going down, but whatever the number is, it’s crazy. You know, whether it’s, I don’t even know this week, right. 30 million, 40 million. I don’t know what the number is of people that don’t have a job, but I have a heart for them. And I know you guys do. So we’re not trying to take advantage of people. We’re just saying the market is what the market is. The best thing some of us can do is go make money. So then we can go be benevolent. Right? That market opportunity is going to be what the market opportunity is. If we don’t adjust, then it may force us to go out of business. Like people that couldn’t adjust. So I think it’s our obligation to go learn what to do.
Wendy Sweet (23:48):
I agree. And I love that you’re saying that because I can tell you that Jonathan and I get calls every day from investors who want to get into the buy and hold side of real estate. You know, we do a lot of loans that people are buying the properties. They want to fix them up. And then they say, okay, let’s refinance. And Jonathan are like, okay, you go do that. See if you can find some ways somebody that’ll do that for you.
Jonathan Davis (24:17):
Well, cause as, as Eddie said, you know, that’s, you know, same thing as his notes as in our money, it’s recycling capital. Like, you know, yeah. Go, go refinance so that we can recycle our capital.
Wendy Sweet (24:27):
Yeah. So, so we’re not doing long term loans. We don’t do the long term investor loans because we can’t meet our investor numbers that we need to meet our returns that we’re supposed to get for interest. Right? We can’t meet that if we’re in long term loan. So it’s not our type of business. I wish it was because we would have so many loans. We wouldn’t know what to do with. That’s what’s lost in our real estate world right now, are those longer term buy and hold loans. They’re almost nonexistent. I mean, we see a few of them coming back. Right?
Jonathan Davis (25:02):
But yeah, I mean, there’s a few, but I mean, what’s really missing is that it probably gets satisfied in like seller financing or other things that you can do. Other creative financing is kind of like that midterm note where it’s, you know, five year balloon, three-year balloon, something like that, that can, that can help that gets these people through this credit cycle where hopefully mortgage credit availability increases in the next three to five years. I mean, one would assume that it will, but you know.
Wendy Sweet (25:34):
Yeah, exactly. And you know, that’s why, I’m glad that you’re saying this because investors, more than anyone need to be able to come and learn what it is that you’re teaching about seller financing, because that’s how they’re going to really find their deals from these burned out landlords. They need to understand that.
Jonathan Davis (25:55):
Can I ask you a question, Eddie? I, so if wholesaling’s going to, you know, that is going to be down. So your end user, that the person was flipping that contract to, was this a HGTV dreamer who was going to either rent the property or, you know, do some kind of flip and sell it to an end user buyer or perhaps even live it at themselves. So you don’t have that person, that HGTV buyer, where were they sourcing most of their capital? Was it conventional money or were they sourcing it from other means? Because if they were sourcing it from conventional capital, there’s going to be a big issue. If they weren’t, then kind of walk us through that.
Wendy Sweet (26:38):
We know they weren’t getting it from us. We don’t do bad loans.
Eddie Speed (26:44):
Well, I believe they were getting a lot of hard money loans, Wendy, I think that you have a vetting process. But…
Wendy Sweet (26:52):
That’s why we’re still in business after Covid.
Eddie Speed (26:56):
Hard money lending takes a lot of times when the market changes because the bottom end of the hard money lenders make a lot of loans, it don’t get paid off well. And it is my understanding and a lot more getting a hard money loan and they were trying to, they, they were trying to then transition either into a rental property loan. Or then as you said, Wendy, they’re trying to sell it to a consumer. So if that’s the case, then here’s what I would say. There is a very workable strategy that with some guidance and with some training, they could really reinvent their business. Here’s what they could do. They could get the seller to seller finance the top end of the deal.
Wendy Sweet (27:51):
Tell me what you mean by top end of the deal.
Eddie Speed (27:54):
Okay. Well then they buy a property. The property cost a hundred grand. You get a loan for 70. And you get the seller to carry 30. 70 first, 30 second.
Jonathan Davis (28:09):
And when he says that you need first and second lien positions on the property.
Eddie Speed (28:12):
And Wendy and I would have called it, would call that a piggyback second. Seller second. And, Wendy, here’s the catch. And this is, this is a lot of people know that concept, but what they do is they make both the first and the second short term money, which is what you can’t do, right? You make the first short term money and put a clause in the second that it is subordinated, not only to that loan, but any subsequent loans, right? Then pay the seller second over time. And you can do very preferred terms, right? Then all of a sudden, now you have a 70% loan. Whereas before you had a hundred, now you have a 70,000 loan. Before you had a hundred thousand dollar loan. And now all of a sudden loan programs will be more flexible in what’s possible. So, you don’t need the seller necessarily carry the whole deal. You need them to carry part of the deal so that you can figure out some strategies, as you guys said, if you had some really, if you had some much more under bridal criteria, then all of a sudden you could find more lenders that might make a loan. Credit hasn’t completely gone away. It’s just evaporated.
Jonathan Davis (29:35):
Well, let me ask you this, Eddie. So if you have a, if you have a piggyback second and you put a clause in there that it’s subordinate, and you even go to the pain of you know, having that seller financing, signed subordination agreements, if you do refinance it. Then my question would be, as credit starts opening back up, would the, CLTV be an issue because now you do have a higher combined loan to value as a, you know, as opposed to just a, you know, a low, you know, so does that play, play a role? What do you think about that?
Eddie Speed (30:12):
You just got to read the market and figure out what to do. I mean, I paid a little Bob to get the salary, carry a second. It’s not a mortgage. It’s just a note.
Jonathan Davis (30:22):
Yeah. So they don’t record it.
Eddie Speed (30:24):
I mean, there’s you just gotta read the market and the situation, right? I mean, like what I, here’s how I look, what I think I teach people. I teach people puzzle pieces. This is a puzzle piece. Now, Wendy, you properly apply the puzzle piece. Right? And sometimes you’re putting it here and sometimes you’re putting it over here. It’s not, you have to, the idea of creative financing is you gotta go figure out where there’s a need. And then you have to kind of understand the principles. And I know people that roll their eyes and go, Oh my God, this is just too complicated. Yes. You got to know more than the average tomato. If you want to get rich, that’s all I know how to say, that’s it. That’s just too complex and you can’t figure it out. Well, then you can, you can take your chances on the market.
Jonathan Davis (31:22):
Come, come pay us. We’ll figure it out for you.
Eddie Speed (31:26):
I mean, but it’s the truth.
Wendy Sweet (31:27):
Yes you’re right. You’re right. That’s why it’s important to invest in yourself. Make sure that you’re spending money on yourself so that you can learn these things. It’s not, you know, you, you can certainly go to small groups and meetings and, you know, stay there for an hour and learn something and, you know, go to your, your Reia group and learn something. And you know, meet with some other investors and learn stuff. But there’s nothing more valuable than sitting in front of a guru and learn what it is you need to know. Because every time you go, you’re going to learn something completely different. You’re going to be able to master it and then move on to use that piece with another piece that you might learn somewhere else.
Jonathan Davis (32:15):
For all those people who say, Oh, I just want to buy real estate. You know, I don’t need to know anything about notes or like. I learned notes from the very beginning. And that’s what I like. And that has made all the difference for me in the, on the lending side, on investing on everything. Like you need to learn collateral, you need to learn all of the documents and how to structure loans. And Eddie is the premier guy to teach you how to do that.
Wendy Sweet (32:43):
He’s the King. I know that I have always told people from the very beginning that if you learn and understand notes, how they can be creative and how they can work, there is no deal that will come across your desk that you can’t make into a good deal.
Eddie Speed (33:03):
I think it’s a true statement. I’m a niche guy, right? I’m a niche guy. But Wendy and I go to these crazy events and these people are so amazingly good at what they do. But I mean, I bought 50,000 notes and I probably looked at 400,000. So when it comes to seller financing, I look at it like this. Yeah. You go to your local real estate investor and somebody goes, yeah, I’ll do seller financing. I know that any speak up. And I already do that. Well, it’s like a guy playing football, right? There’s a little kid in junior high school, it plays B-team football. And you ask him if he plays football. And he says, yeah I play football. And then you go, you know, and made a professional football player and he say, you play football. And he says, yes, well, they both played football. It’s just a matter of what level you’re playing.
Jonathan Davis (33:56):
That’s very true.
Eddie Speed (33:58):
And I’m passionate about the fact that I, I think people learn some bad habits with seller financing because they’re not taught good habits.
Jonathan Davis (34:07):
Well, what are some bad habits that you’ve seen?
Eddie Speed (34:11):
They sell junk, junk property to junk people and act like they’re going to pay. It’s just to me, it’s, it’s ridiculous. I mean, you’ve got a substandard piece of property and you sell to a substandard buyer and you’re like, Oh yeah, I’m going to get a check for 20 years.
Jonathan Davis (34:26):
Yeah, no, you’re not,
Eddie Speed (34:30):
You know, I mean, Walter Wolford is going to be out in a minute. Yeah. Walter, what they have to deal with. I’m from Jackson, Mississippi, just so everybody knows that. Where Walter lives. And I didn’t know Walter back then, but I knew a lot of Walter’s. I called him one day. We had a note submission. We were going to buy a note in Jackson and we had priced it. Now we were doing our due diligence. And so we call Walter and, and we said, Walter, this property is at so and so. We just wanted to ask you about crime. He said a hundred percent. I said, what do you mean? He said, there’s a hundred percent chance of that.
Wendy Sweet (35:23):
That is his area.
Jonathan Davis (35:27):
So do you get what I’m saying? Sometimes it’s a hundred percent chance. It ain’t going to work out.
Wendy Sweet (35:33):
That’s exactly right. So Eddie, we’ve got about five minutes left. Here’s what I’d like to know. I would love for you to share with our viewers. What it is like to sign up for, you know, tell me a little bit about your programs, but what’s it like when they sign up and attend a note school conference? Tell me about that.
Eddie Speed (35:58):
Well, the first thing I want somebody to do is to get a sense of where, what this looks like and how it goes. So I’ve got a little landing page that I built for you guys. It’s very simple. It’s just NoteSchool.com/GetStarted And I’m going to give them a book, which I call a, It’s a Whole New Ball Game with Creative Financing. So it’s the theme of it is kind of like the movie, Money Ball. No, and I, and so I made this book kind of like that. And so it talks about doing real estate investing, but understanding creative financing when most people don’t, and it just shows you that. And so it’s a good little book. It’s probably only 35 pages, but it’s a good read. I mean, it’s hopefully like create like streetwise seller financing. It’s a good, solid read. That’s informational. It’s not, you’re not going to get halfway through it and go, there’s nothing here.
Eddie Speed (36:56):
Then we’re going to do a workshop. So we’ll do about a 90 minute workshop, same young man that helped you before, Wendy. Brian Knight’s fun, fun guy. And he is the guy that helped. Cause I’m just, I can’t do it all possibly, but he, he relates because he was a regular wholesaler, regular fix and flip guy, and now he’s come into our fold. And so he really is a good disciple of this is where you could be. And this is how you could think, and this is what you could transition to. And then we of course have, you know, three day classes and all that stuff. But I want somebody like to, I’m not, I don’t have a shortage of selling three-day classes right now to make sure that the people that come to the class are latched up for the journey that we need to take them out.
Eddie Speed (37:48):
I don’t want them to sign up for the class and you know, not be committed to the class or the process or whatever. Literally. I mean, we have so many people wanting to get in. Now I’m trying to like, make sure that we’re all, we’re a fit for each other. And this is a good way just to figure out, Hey, this is a fairly low level commitment. Read this book. I’ll go listen to Brian and I’ll make sure that I can see that this is a fit. I want to learn this. I love teaching. And I feel like our three day class is I told you the other day Wendy, I think our three day class is the most dialed in it’s ever been ever.
Wendy Sweet (38:27):
Awesome! That’s awesome!
Eddie Speed (38:29):
And tying it in with the market and why it works and not to say that you can’t do conventional financing or you can’t deal with hard money lenders. I’m not painting a picture that there’s not an opportunity. We’re trying to figure out how to work together with you guys that are hard money lenders. Not to work against each other. We’re trying to figure out where the fold is. Well, I mean, I’ve done, I have a long history of this, I guess my first rodeo to have a real connection and work with hard money lenders because I’m not a hard money lender. Somebody is going to go buy a property and it takes some cash at the closing. We gotta go figure out how that works. But I also know that. I know it’s real. Yeah. But I also know that I need to come up with ideas that help them transition from that own to, as you said, permanent financing. And those are things that we talk about and we love case studies. And I think we’ve got some really cool, fun case studies that are pretty creative. I mean, they’re pretty creative, you know? I get to train a lot of smart people and so they did some pretty fun stuff.
Wendy Sweet (39:38):
That’s awesome. That’s awesome! And I love the way that you have explained that. And I, I think it’s really important for people to understand that you have to really be committed. You don’t have to be smart in math. That’s not what this is about. Right?
Eddie Speed (39:58):
Wendy, if any smarts was required, you know, I wouldn’t be involved.
Wendy Sweet (40:05):
Well, you have more sense than a tomato.
Jonathan Davis (40:12):
Yeah he has more sense than a tomato. An average tomato.
Wendy Sweet (40:12):
But it’s, you really just have to have your mind open and have the desire to solve problems. Right?
Eddie Speed (40:19):
That’s it. Creativity. Creativity is learning what’s possible. And then applying the concepts, if you don’t know, what’s possible, you can’t apply the concepts. I teach creative real estate financial modeling. Okay. Well, if you’ve never seen it, that just sounds like, Oh my God. Then all of a sudden you see, and it’s like, Oh, this is actually common sense.
Wendy Sweet (40:47):
That’s right. That’s right. That’s exactly right. So Eddie, we’ve got on the screen, the best way for people to, to learn about your note school is to go to NoteSchool.com/GetStarted. And that way they not only can get onto your website, but they’ll be able to contact you and people on your team that way as well. Right?
Eddie Speed (41:12):
Yeah. This is a good first strategy to get some, I, instead of just sending them a note school and they sort of get lost and all that stuff. I had Susan build a page. So somebody could go specifically there and know that these are people that we’ve spent some time with. They’ve kind of heard a little of our story and now they’re ready for the next thing get started.
Wendy Sweet (41:34):
Gotcha. Gotcha. Okay. That’s exactly right. That’s exactly right. That’s awesome. Thank you so much!
Jonathan Davis (41:42):
It was a pleasure.
Wendy Sweet (41:43):
I can’t wait for the next hour. I think it starts at 1:05 is our next next hour that we’re going to come on and we’re going to talk to not only Eddie, but some other real estate gurus. Eddie, you are just an awesome human being. And I’m so glad that you took time out of your day to spend with us and share with us today. Thank you so much.
Eddie Speed (42:07):
Thank you, Wendy.
Wendy Sweet (42:08):
We’ll talk to you soon. Love you, mean it!