11:12: What Makes a Deal a Deal?

Noble Capital Radio Hour
Sunday, November 12th

In private lending, you shouldn't just take any deal you can get. Find out what you should consider when determining what makes a deal viable.


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

From the nodal capitol studios in Austin, Texas this isn't real well blu. Where we bring real wealth strategies T the real world let's start the show here's your heads Craig Franklin. Hi this is Chris Wragge when your host of guerrilla blueprints show where we discuss. All themes alternative wealth strategies retirement planning we've got a lot of topics that we've talked about over the years here. Years it's been a while until August juniors over twenty something weeks it's been twentysomething weeks is that tennis years. All your act at a bad screw it it's up for you know that's Ronnie here in the background think things are speaking of running our veterans and poorly nuts okay with years and it's been weeks. If the running is my co host here on the show and also the chief marketing officer at noble cavities capital to an ironic. Hello everybody this is going to be another unique private lending type show where we teach you a lot about how do you utilizes prime lending thing in your time. That's all I guess that's exactly what we're doing duck and how can you create steady income and retirement. And how can you do that using private lending in and that's ultimately what we do it noble capitals were enabling. Our clients turn 68%. On their money owning annualized basis. With honestly like assuming a significantly. Reduce risk and then they would normally see in the marketplace and how do we do that we do that with pride at winning that's kind of the cornerstone of our entire. You know our programs so. I'm we're fortunate today we're also joined by our CEO and the founder of noble capital mr. Jay Newman thinks being Eugene -- guys excited to be here again then mix it up with a little bit yup you know passing applause track and applies track we president wasn't even wanting those buttons the sound effects for awhile who figured out okay well if the last and we had Jane on the show we were talking about on some different sound investment products and insurance and retirement strategies Social Security. A number of things that today. Bringing in all back home I'm talking about something that we've been doing noble capital and James really been doing since he founded it. Almost sixteen years ago now also coming up on the sixteenth bird there yeah we are December that's trying to he had any sixteen Nixon minority that's what it is that's the theme they go and finally gonna get my driver's lessons I think kicking in yet people if it happens that all right so anyway the sixteenth birthday of noble capital where we've been providing these private loans. Two small business owners throughout the stated taxes that are looking to acquire inflict real estate and that's what we did this your first time tuning in you're going. All of these guys talking about we provide financing throughout Texas for people to acquire. Renovate and flip housing. In doing this for almost sixteen years now and we're gonna talk a little bit about how do you find these deals. Last week we were diving into a very specific part of our process we're talking about how the draw process works after you have a loan. Well today on this episode we're gonna bring it all the way back to the beginning and talk about. How do you find these types of deals so if that's interesting you are you wanna go back in the past a look at some the other shows we've had you can find us at real well blueprint dot com. Yeah and you know he can also find us on social media we've been done we've been pretty fortunate to have a nice following on social media were on FaceBook and Twitter and we are known instead Graham. I'm not too fast it's adapting instead granting the word we're getting their habits and FaceBook were on an all time. We we've got to social media yeah I so it's either we got us. Someone cash Kessler. All right so what makes a deal a deal that's really what kind of diving into here today and really understanding this a lot of people are like. I know how to do real estate investing but boy that's that's a big huge can of worms here right we're talking a real state specifically. And now we're gonna try and narrow that down before you do that was just talk about. What types a real estate deals are there you know I mean there's there's just so many of them right let's is about size and I've seen real estate deals that you're getting in for. Maybe as little as 10151000. Dollars right sure it'll mobile home in rural community may be right could feel right or you Keating. TUN and really small also. Doesn't necessarily take a lot of money to get started on sized deals especially if you don't need diversification in one deal at a time is okay for you but they're making get. As big as you want right now we're talking about you can invest in. Funds or real estate investment trust that. You large commercial buildings entire developments you can put it essentially as much money you want it. Into real estate types of products yeah I think some of the biggest players out there in those those are billion dollar reits that exist out there. Right multibillion dollar eats Chinese read scrutiny from Ron. Potentially variety type of benefits but the money's going to be locked up for a considerable amount of time. You know and it's going to be in his large fines up. I think a lot of people when there especially if you're at retirement Ager looking for a consistent income that's one of the first things that people think of. Yep read certain yet reits are. Very mainstream and you're right they're typically five to seven years. And term there's no specific term because you know you don't know exactly when. That Reid is gonna turn over and and returner capital to you but typically five to seven years five to 7% interest I would hope that five to seven rule on the Reese yeah NN that's that's pretty basic crater. Any gotten thinking about that to mean shorten long term reach five to seven years I've seen some short term deals as short as. One day. The Cassini is technically vacuum the NATO much table finding a deal one day yeah there's one day deals out there I mean there's all kinds of rules investments they do come in all shapes and sizes and end in terms and it's a joy that's why it's so easy to confuse the us are talking about one thing in there in years thinking it's another. But yeah you're talking about one Dade table funding money where you may earn 1% that 81% on one day. Sir I mean if you can do that every day I'd be pretty great right along as you show me security I think I mean I. Security really had to bring up that right well I mean think about it it's anytime somebody gives you something that's too good to be true well hey. I thought I hit it probably is it's like if you did that every single day that's you know 36365%. Earning on your money as they wait. Yeah not as that sounds way too good teacher and in your right you bright and you the nail on the head it has to do with security moot because that one day. Yet very little security you know and you so if you're if you're trusting somebody for one day you do all these things in in you to get the security. Can you imagine what you were anxiety level is for that one to eight. And by the way things go wrong I knew we see it all the time I've seen it hey we too often especially in those that are a little bit down. And in unique you know I'm so glad that gene called that are reach right out of the gate 'cause we had greedy aren't CFO on the show awhile back and he called Maria night. I don't know I don't know where he got that from Louisiana thank you get you out of the northeast Grady would school in Philly MI had some mentally that much because her yet he did that he had an MBA at temple. Yeah as like a shout out today gives money that shout out yes I don't think so yes now it's okay now so the short term long term small and large. May have types of deals to you. We hear whenever most people think of real state and I'm going to be real estate investor a lot of people think of rental property right in and a lot of times it's accidental. You own a home with your significant other it's time to buy your next house and you think hey instead of selling this property let's do what with rinse it. Right not right turn into rerun that's where I think a lot of people first get introduced into our real estate investing hold on in my. The first home I had no make that a ring on I'll buy the next house right and it's a viable strategy. There really is I I see a lot of our clients come in and our retirement clients and they don't rental property and those those clients that have rental property of their portfolio. It gives us a lot more to work with more sit down and and planning with these folks you know that if they're well on this hang in there continue to be a landlord. And that property is cash flowing back to be a great asset on their you know on their balance. She yeah conversely is they may have some headaches on these properties right in we're able to sit down do an analysis and say hey. It's really your effective rate of return on this property might be 5%. Plus headaches after management and taxes and all of the stuff you know. Without Chris we showed a client who let one of our Dallas clients. Not Ameritrade I'm pronouncing their last name on the air don't bad. Today Matthew and Antonia and it is their first thing and say. Had a home that they would end in May we sat down and ran the numbers and they were making about a one point six per cent return at the end of the year that's the first they've had it for ten years not the first time someone sent down and shown of what they're actually earning. And listen. After sitting down looking that before we even could tell show them a plan and Tom what they will always thought they should do they put the house on the market and sold it. Yeah I bet any amount in the meeting they went and I'm certain words like hey all it takes is like one call in the middle of the night when you don't have management you know system in place. Hey might toilets broken engine to come over and you know take care so that cash on cash return adjustments and was one point something percent. As to attract Al the headache yeah attract other calls the dark out of the materials on skis to to. That's until it happens it happens I on the other insecure people that have had rental properties for you know decades and then they've accumulated two or three or four of these in the lifetime in the community say. This has been really great to meet I've gotten in in new depreciation as well this has been create the property itself has increased and die you it's time to exit. And now it's time to to do more of a hands off approach and and that's where we come into play noble and that's on us who we're talking about here is giving you examples of different types of real state plays and how we work with people. So it there's a point in your life or in your diversification we like hey I want something that's a plug in play me right where not not play him pray. Play him play where I'm when he give you the money I'm an Ernie consistently turns 60% on real estate and that's and so we're here for so. That's the difference is in active and passive. We're talking about do you wanna be out there on the streets beating the streets of looking for deals. May be coming into deals buying them from family members buying them from coworkers or do you wanna have a passive strategy where you can focus on something else that's important to you depending on where in your life that might be your career. Might be your retirement. I mean maybe you don't wanna be worried about it when you're on the golf course they're right or on a cruise or something like that but I won't rest assured that there's something protecting my investment you have to you know and and it's going to be in something that that you understand right and that's ultimately were whereas here is we're talking about. Real estate as a portion of your investment portfolios so we're gonna wrap up here and come back here in just the second time that. Where you find these types of deals race that's what we're kind of curious about so when we get back we'll talk about. The clients that we work with and our investors in overtime where they have found these types of deals and and and where America's it's not what you think. It's not the normal stuff and we'll also give you some of the the secrets in the tricks of the trade here he'd like to learn more about us and our show please check this out you can find us. The real wealth blueprint. Dot com we'll be right back this. Sound off on the news of the day with a topple online ads on thirteen seventy dot com sock thirteen seventy though right choice. You're listening to the real well blueprint if you wanna ensure retirement with the lifestyle user. Then this could this show freedom. And hi this is Chris with the real blueprints show welcome back it's their real well talk shows here. We're getting into retirement private lending and how you can work with. Real estate as a part of your investment portfolio and specifically how I can work with noble capital that's our company. And we help our investors earn between 68% on their money secured by Texas real estate. Pretty awesome program we've been doing it now for almost sixteen years we talked about earlier and join of course by my cohosts from Navarro. In by the CEO and founder noble capital mr. Jay Newman so let's start back in we left the show a second ago we're talking about. All kinds of deals and and let's dive in though little data where do you find some of these deals especially on May be the single thing residential stuff which a lot of people can relate to a little bit more. You know they may is. Accidentally turn into a landlord when they moved him into the next properties of people getting a bit wary Chinese deals some you can just go down that storm by our show from we know it's. It's not an open marketplace can mean with the exception of some of those re writes her Kris and we're never gonna Allegra you live downtown but now that we're with the with the exception of some reeds that are publicly available it's not an open marketplace so you have to you have to sift through a whole lot to find these deals generally speaking say depending on what you're. What how your entering the space rights of your if your somebody wants to. Invest a little bit of money and make a ton of money you're gonna have to you're gonna have to dig in dig deep. Right in Egypt and by the way if you're willing to go out and put the work and you can find some great deals they are out there but no there's no place where you just. Block out and grab one off the shelf and go to the check outline of your number three yeah I think in every three supersize. But no it doesn't work that way and and by the way if you're ever. I'm talking to someone order a group of people and they're making it feel like that's the experience. You really need to be questioned yourself right now it's it's kind of like a comebacks that make. It's somewhat changed charging mean money to not go out and do the work. And their Tommy how profitable it is why didn't they just do death scene for us saw it no that's like. As in I'm not trying to knock anybody because there's a place for education in this space but. That's certainly something that I always as a McCabe it's such a great deal letting you do it yeah the answer might be because they're tired of getting dirty and roll up their sleeves and doing the work. Oh man I mean it's it's so interesting they say that it is true though so that's that's definitely not pleased to find the deals and every start seeing these gigantic returns being advertised nude. You run right yes he runs yeah we're talking like even in the teens when I seize once I you can earn eight you know 18% 12% a Mike Lowell can't control do you doing over there now too much yet that's a little bit out there OK so you can't just go to get on the show. Well that's fine. That's why it. The MLS is for right Romney I can just go on the MO less and see all the property does for sale in the market and and I'm interest in. I can just fire property right there right Jane sister Maria it's just coffee in the morning and yeah you just drinking coffee and you have to get dressed you log on you go onto the website and they're everywhere and then there and you just by him. And I'm Ned you know let's not intrude on Dubai and jam on the amount that's like your your home. I've but. At least what one home on the MLS and it definitely wasn't. Is easy is is Christians laid out and kind of you have to sift through a lot of stuff that the fact is is there's so many people looking at those deals and you're competing with the retail clients with consumers you know that are that are look and Livan than those thumbs for their homestead. So that that's not where you're gonna find a deal and his into that that retail climate is willing to pay full price gap is their home price you as an investor or not willing to. From last night and I if you're paying full price for property news flash it's not. An investment property and eat it and generally speaking regulars think he has not going to be does not therefore in the if I have about a couple of properties. On in the last that they were only for primary residence and the only time I hit and because on the deal guy can't help it. I also island of making like ten offers before he took and accepted because I'll always come in and try to get a good deal on a property. Certainly and it's especially in this kind of market in Texas I mean Texas is known for BM one of the top residential real estate markets and in the nation. And in the world Franklin so yeah and that's not because of crazy speculation years now has a solid consistent. You know increase in property value no no crazy bubbles that you see on the other coasts and stuff like that that's very consistent return fundamentals yeah supply demand fundamentals Lotta people are moving to Texas it's one of the most popular. States to live right now on those people need a place to live that makes for a stable real estate market and if you think you can jump on the MLS and compete with all of the real owners trying to fulfill that demand for their clients and get a deal then you're you're going down the wrong room. Yeah I think so so okay so let's not be cheeky anymore here so we know that's not really had to do this does so some better ideas right. Polyone in my personal favorites is. Your network your personal network you know people you know about circumstances that are out there occurring. Where someone's got to deal on their hands we're in might be because. Of an unfortunate circumstance who could be someone passed in the family or it could be and enforce it could be. We're just ready to get rid of our real estate you know from an investment standpoint and we wanna move quickly. I'm aiming your personal network everybody knows someone. And then chances are they know someone else that probably is ready to two garrison property. Yes I bought a property from a neighbor. On there was I believe death involved in that situation that was somebody's. Friends not it's somehow somewhere about a property from the neighbor. About a property from co worker that was divorce. I mean there's that you personal network is pretty soon and you Pyrenees do you get that the yeah disaster. You know gather all the teasing your rank but I mean there require a lot of time and that's that's the unfortunate side this is. This is legitimate you can use your your network and NM and all of us here on the show we have bright but going out daring in action trying to procure. And find that deal to your network and sifting and sorting everything. Takes time ranked. And it it takes a little bit of both. Commitment to you don't just ask your neighbor India the deal intense training that you're talking having human conversation and these things come up. And your call now there was a death it was it was his own. Step sisters mother and it just turned into you need. Just a golden opportunity and it Saudi on the property and they don't want to properly I tried to sell this community yes that's our Q what about networks on steroids I'm talking about. Nady you've heard of this before that term used a wholesaler or. A buyer's club or group type of attaining mean that we find investment deals. They went and there's a lengthy phenomenon going on out there on the marketplace where there is a wholesale group and in what that means is if you're listening in and that doesn't make a whole lot of sense. Typically speaking if you're a buyer of real estate your buying and retail prices well there's this kind of not a color black market but this this market that operates a little bit in the shadows that's going out they're trying to find the best possible deals going after the d.s. I Def divorced default disaster. And they're going in negotiating as much is a human the you know is much is even possible to find the best deals and then offer them up to investors at pennies on the. And that's the thing well our act after a mark up and that's the key right so these guys have for nationalized fining that deal. In the end there adding their markup. And then selling it to someone else is kind of the retail investor. Going out buying a property insight. Yeah I and it's probably a decent deal it was a really good deal only in an inning got marked out some and that's the whole sell thing that's that's what it's all about. I mean just imagine if you know at a retail stores they can buy directly from the manufacture in you know in whatever country it's gonna be and all that doesn't happen right there's distribution networks and I'll take a markup same thing is happening here. From these wholesalers or these investment clubs in as someone is making some money on the way and turning that deal liberty which means. Might not be as good a deal as you thought. Yeah there's so many variables it's be an example would be can mean the iPhone X is what a thousand dollars. You don't buy it jerked from the manufacturer for 500 dollars at saint try to sell it to somebody else. Speed and realize that it was defaulted and there's all kinds of problems with that what does it really worth out there so. You would always buy at a discount of possible thing is what does that mark a look like something market up Ted. 80% and then that remaining 20% equity is is tainted and anyways your troubles. Yeah you could be in trouble there that's Fisher an incredible moral another area is just jewel events right there's a lot of people putting on these investment events where you can't you attend made their free media pay money. But that's a good way to actually be going out and increasing your professional network. We're doing it all across the state right now we've got the investment real estate roundtable it's they need to dot com and thank you should definitely check it out we've got an Austin when going with Dallas when going Fort Worth one going in Houston San Antonio just about everywhere. Yes and that's if if you're really wonder roll up your sleeves and you wanna go out there indeed in your professional. Flipper that's Greece and SE investment real estate roundtable we do hold those all across the state of Texas but. Listen if you're an investor your thinking. Man this is sounds creek but there's no way I'm gonna go out there I am an idea to do all this work I don't have the time I don't have the energy I just don't wanna do this. But it sounds really interesting and I can see why it's a good business I got a great news for you you can work with noble capital that's what we do we take all of this work there were talking about. We're the professionals they go out and make sure it's the right deal and we work with the investors throughout the state of Texas who are earning between 68%. On their money. That is the cornerstone that's what we do. And we'd love to work with you on that so. That's why we're here to talk about only come up next we're gonna talk about brilliant staining Dino it's a good deal or not again that's what we do the noble capital and we gonna teach you. A little bit of how we understand recognize yes this is a good deal or. This is a great deal when you get it. Or not. I run you know first it's time for Brian. All right so we'll be coming back and we'll talk about what makes a deal a good deal here in just a second you can find this out real wealth blueprint dot com and we'll be right back. This is still real well blueprint that shows the brings an unexpected take on all things financial. On the real wealth blueprint we will give you the tools to plan grow through tax and yes finally enjoy your well. I had this is Chris -- lenders with a real well blueprints show welcome back joined by Michael host Ron Navarro and by the CEO and founder noble capital mr. Jay Newman we're talking about. What makes a deal is deal. So we all work and noble capital and we help investors earn 68% on their money secured by Texas real estate were diving into real estate deals today we're talking about. Primarily single Fannie residential fixed and flips. And that's what we specialize in we actually we don't get exotic we don't do big towers we don't do developments. We specialize in the thing that everyone needs. A place to live. Yep that's what it is we do it all over the state we try to keep it simple we've been doing kind of the same exact model for for all intents and purpose for a while fifteen years. The same thing and it's. It's gonzo porn we could really predict what it's gonna even shoot out. So let me ask Iranian Jay and let's just jump then. How do you know if you hear about something in summons 'cause you you I've got this property at senator senator. How do you know instinctively and quickly if this is a deal for some thing Nina jump into what are you looking and give us your perspectives. All really does look that's a that's a big broad question now say one thing one kind of tell tell sign and we already talked about it and then when the segments earlier. If it sounds too good to be true it probably is I've I've chased those those dreams a couple of times maybe maybe we're a couple. But on every single time I chase it there is no pot of gold at the end of the rainbow ray is just BS. You know it's as if it's too good teacher probably is and that's when we start hearing people pitching these gigantic returns in this great big I mean you have to question. You have to question you can not predict 80% returns. You cannot eat you have to that you got to bring it down to earth so that would be one of the things that I would always say but it's. It's understand also what you're willing to take on so you're willing to take on you willing to risk a hundred grand in potentially lose out. Brands when you say take on you mean how much money willing to put up for risk and at what level of brisk rate as those things can be different in my dealing to put up. More money or less money but I might wanna be very conservative with the mining that I put operate in and this is the real. Bombed the majority of people especially a certain age brackets are willing to take on that interest most people or not. Very you know looking for risk but when your when your twenties you're trying to flip policy put up 20000 dollars to make a whole lot. When your your fifties and sixties and I can do the same thing typically chair yet you're nine under and then that's on and Alito also you know. Understands risk it's not necessarily about the deal all the time sometimes about structure you write on so we're talking about putting money into the deal. For some people that means buying the property write their money is actually gonna be sunk into real property they're gonna buy it going to be the homeowner. I'm we worked in a deal that different we're talking about lending on the property which brings back to one of the cornerstones for us we're never going to be exposed. More than seventy cents on the dollars already I'd beat the guy. Who owns the property from that risk mitigation standpoint they got it owns the property because other demanding more money than me. But I've got better security right eye and in this Arnold as a lean in first position only seventy cents on the dollar exposure is something goes wrong. That's awesome that's a great Clayton. Place to be because I can for caustic property Indian head against a nuisance on the dollar that's amazing race but then there's another level we can diversify. Have the same strategy but you can I should be in a diversified fund. And your money can be spread across entire pool properties pray so and that's what we do it noble so we have our clients they come into find enough fine. Is diversified amongst them meaning investors and then he goes over many properties in any market is many markets never more than a nuisance on the dollar paint. That's pretty amazing so we talk about under senior risk tolerance that's a great place to start because it depends on where you are on that scale before I can say if it's a good deal for you or not. Oh yeah we've always talked about it and noble I mean if you're what you're looking to do with Canadian. In get rich on deal not to place for you but if you're looking for some capital preservation you're looking for love or money that 500000 dollar investment to still be around twelve years. And maybe even had maybe even doubled and sound in those twelve years noble might be type place for. It's so relevant right now Romney because you know our clients that are common and and we're we're talking retirement now back to the retirement topics. You know were were an interest in place right now in the markets where people are telling us they're looking for something different they're looking for some alternatives. While they let this market kinda shake out and I'm not say why do we do fraternities and I mean maybe it's not Anaheim market maybe Hillary Bosnia continues is set records and that's great and you know feels a little bit like the Titanic in the music's playing may have been nice China now but you know at some point we're gonna we're gonna hit an iceberg. Let IA and yet it's an artificial market I mean let's let's be real here right. I don't wanna get really deep in your too far but I mean we're talking about the proposed tax reform that's very topical people are here looking at that we're somehow bringing back all those offshore profits. That's not gonna go into job creation let's be real I mean maybe my personal opinion here. That's that's gonna go back and pumping the markets it's gonna going to dividends it's gonna go a new investor returns and that's gonna keep that market artificially rolling along which is going to increase exposure time and time again so. Got to find some alternatives got to take some risk off the table. If you need two important. You have to do and you know back to what makes a deal a deal. It's great when you can let it be on the lending side in limited 6570 cents on the dollar. But at the same time you know for arrest even make a loan to a borrower. We have to be a good deal for them to continue will wanna go into a deal where they're not set up to win from the beginning. We want to have a great relationship with that borrower continue to do business with them. So when you look at the numbers that borrower has to be able to make the numbers work is really on the back of the napkin you know they should build a laid out to see if it makes sense and in a matter of minutes or you know I would say for sure less than an hour they should build together some data and see if it even as worthy of them spending more time. But that's perfect don't say this if you're looking at real estate investments in your turn to say hey is this a good deal and you're asking that from the perspective of the lender like jeans talking about. And you see your you discovered. That the deal structure you may be protected as the lender but the borrower the person actually buying the property in the opinion they fail. That's not a good deal you can and it's not just coming from the goodness of our part right and that I mean I'm not in the business of you know loan to own I don't want to own the property. There's something fundamentally wrong with the structure if that flipper that bar can also make money it's a huge warning sign up front. Yeah it's a red flag and hit it may not only be AD borrowers competence hopefully SI would it is but often times you see something like that there's. There's some fraud that played something else is potentially going on so if you ever get two point receipt that not only if you are easier protected as a lender but the borrower stands me no money. Red flag run away. Yeah I'd welcome new investments that's actually one of my Mike shares have had guys come to mean say hey I've got this great deal. For us right into him and he checked this out they laid out your real estate guy Uga you're gonna get this and the whole deal is like I can understand it is a lot of McCain and moving on and Michael K things are looking pretty good in. And he's like this is how much she used to enemy you gonna make you gonna make. And I drilled down as the cab how much is this guy can make the guy right here on the ground doing the deal. His reply to me was who cares it's a pretty much as it is or thought it was who cares look how we're protected. We're in this you know just who cares and I thought I mean he how long have you been doing this now that's my next question to him. You know and of course it was a lot of women doing it since after the recession you know and as I hi OK now it's gotta I gotta NASA knows thinks. Yeah we we can't always try to look at it win win win mean you do need it's in you know everybody needs to get a taste there. On on the lenders side as you mentioned DL were protected because we're never gonna invest more than a certain view of percentage of the property Iraqi 7%. On the investor the borrower cite the person who's actually gonna take on the biggest risk putting up maybe a little bit less money to take on all the risk Yzerman he's the first one to go thinking goes wrong. If they don't seem profit in notes that the win win win doesn't stick in their motivations gone correct right but they can't you can't go out there and steal these properties either I mean that's part of its there out there trying to negotiate deals that. Here's that end it by ear right that the person urged Internet and seller excuse me. That is going to give them the property at a very substantial discount for whatever reason the divorce death. In a default whatever it may be. You they have to win two otherwise the deals are doomed he can't he can't steal it just it it they don't work for some reason whenever. One of those three things are off Julie Chen and it tends to just. Feel yet. So understanding the numbers is absolutely critical and making sure that everybody's winning throughout the entire process that's that's kind of itchy code. That's one way you can look at and say we'll homeowners everybody winning here probably a good deal if there's someone is being you know not so well then they're losing. Maybe there's a problem in your right a lot of times is hidden in his inside of fraud and it takes a while they're in cover those things. Yeah speaking of problems and this year store. Dion so it's it's funny because I'm we're on the inside of the table we weird lenders at the end of the day our clients are lenders as a result of what we've been doing for so long. But abouts in 20042005. My brother and I were flipping a house in North Miami Beach. If anybody at and if anybody's familiar to many it was like a 182 street players it's a 187 degrees. I think humidity percentage actually no like 182 street fish anywhere in moan don't get too much detail as to whose shoulder what but what happened was. On I bought property and that we started working on it it was funny to my brother was gonna be a worker and I was just gonna put the deal together the numbers and my brother and he actually pretty Stucco dolphin on the front of the house class it was the ugly thing you've ever seen your life and he was so proud. He was so proud and I am I get it now in hindsight but but we do still joke about it anyway. We're midstream on the recommendation that we're gonna flip and make all the money in the world. In history we actually had a cops show up to the property and the cops showed up and say get off the property somebody owns this property in the I totally knocked the wind out of my sails yeah we're open we're financings and with our we ultimately your own money yes so we are we are six figures deep in this project. So we're freaking out what's going on here at any rate circling back to layers of the union starts kind of thing detectives turns out that cup. Nother call mom by name right but that cup forged deed to try to keep yourself try to keep some of the prophet himself while they are we had to go through all kinds of stuff. We ended up winning not only that the loss suitor that clean but we ended when we Mitt and they're making a ton of money. But one thing I'll never forget about that deal is my brother and I are at the very end we celebrated dolphin and silver dart other stuff. Where like I'm never doing the severed and yes it that's menace the story ever again so that's why I'm sitting on the side resident of the island table. I am getting senate yeah yeah. Well and there's that we've talked about some these mechanics there why they're so important right we talked about collateral monitoring with talked about the drop process proper underwriting proper originations. I mean what we do. Is make sure that all parties involved in this transaction. Are doing it correctly that's ultimately we're like the the big referee in the entire transaction. And over you know with a rubber mallet rate of pop so many on the heads and stop that you know and that's ultimately what we do you rate. And if you're if you are someone very interested. In learning how you can be a private lender and earn 60% led to Stubbs give us a call. Our numbers 877. 2819314. We'd love to hear from you would love to hear your stories. And learn how to work with you in and show you our entire platform and help you earn sixty X on your money. But I EJ in years crazy and doing this week and I Stucco Dawson in Miami. That I have never really been a Miami Dolphins Kandahar right. Bail them. I hear that they did at least win one game this year it overall boy oh yeah dead already or I can talk about the EU here in the second undefeated undefeated these so you know what one of the things. You know on this this topic. I eat but when I was originating loans from this start this company myself. Nice to educate borrowers. In the first thing that that I would always tell on this. You know when you there's really three things here in the got to figure out just to take even put more time in and more energy ended to trying to put a deal together and the number one reason to. That a deal doesn't make sense is what guys volley value absolutely I mean they they didn't buy it right time so you have to buy the property right. And then if you're gonna do some kind of rehab for puts some kind of worked in two you know the flip the you've got to understand your construction costs and then like Armey just said you've got to understand your value when you're gonna sell for those three things have to come together makes sense. On paper. And that's not that hard to find out in the residential space and that's one of the reasons that we like that spaces because it is very predictable. Yeah it is that you're talking about how to properly structured deals so we're gonna talk about that on the next segment and that's important if we're not able destruction the dealer frank. You just can't do it you have to did so and here's some tips on how to do that also Romney's gonna give us the real well tip of the week so I hope you prepared. You don't attain needed to call out this time it's it's all year I forgot it was on the only thing it's a that yeah you have this a commercial break to really come up with something stellar okay. I write them yes something quick like three words. Into it's very to do is. IRA battles million swords I met here is how you can be debating we've done an entire episode on that if you wanna download that you can find is at real wealth blueprint. Dot com when we get back we're gonna hear from Romney NG and on how to properly structured deal. And removes that risk. Seen a sex. Thanks for making the right choice I don't know why I would get the truth if it weren't for. Are you talking thirteen seventy. And now back to real well blueprints where you'll learn the secrets and once reserved only for the wealthy. Hi this is Chris rag on with a real blueprints show welcome back today and talking with Ron Navarro. NG new into my business partners at noble capital where we help investors earn 60% on their money to secure by Texas real state. We did sharing some stories and some lessons learned in just some facts. On how to find good deals rates there's a lot of stuff out there are a lot of noise frankly on what makes a deal good deal and how to finding where to find it. And I don't think anybody gives the whole truth but. We'd love to hear from new if you got additional questions are you saying hey I heard about this is this a good deal lower or this group over here's talking Mercury deals. Hit us up on FaceBook or Twitter or anything and you will will answer your questions will guy AGU. Willing only to come in our office and talk about it or even give us a call you can call us feel like 8877. 2819314. In more into your questions on that so it's died back in on the final segment of our show today. Run mean Jay Mohr timeout that risk. How to remove that risk Jane was kind of hinting at this he's like man if you don't structure the deal right here you know you're gonna push yourself an additional risk I think you guys are saying. A menu he wanted to say was you make your money when you buy the property of Bryant now when you flipped it right that's ultimately how you make your money is when you buy it. Absolutely and you know. Chris one of the things that I'm I'm particularly proud of is. You know after doing this from a sixteen years. I like to say you know it's kind of jokingly but this seriously to we've we've seen at all I mean none. We've we've screwed it up every which way construed. And you know we seem borrowers come in and and try to pull pull one over on us. And after sixteen years of Libyan in this business. And now home bringing you the current 2000 almost eighteen here. We've we've actually diet. Underwriting guidelines and we've got stories put you know we're just talked about stories we compost. Postmortem as lord postmortem of micro dock as. You know what women deal went wrong exactly what went wrong in the deal and and we guided Pete held out and that's helped form and shape our decision making in fact our whole culture you know that the people who work for us the way we look at deals. And I'm particularly proud of that because that bring in that experience to the table just really. Makes me feel good about our ability to be good stewards of our clients capital. Yeah you know you're saying is that is actually something that is. Not necessarily new but here just recently in the last couple years is caught fire postmortem. What went wrong and turn that into protocol. It is it is revolutionize the way we are direct business on. Also one thing I think we've been doing and you mentioned a minute ago when these till you get very complex. Feel like life is too short that complexity you know what we've tried this just remove as many variables from these things is possible. AD and C what are you buying it for what are your improvements and what is it worked yeah audiences is your story is color and we don't need. Yeah on the upfront you're right because will get that right so one of those basic tenants will fail. And Nino the potential client was like yes but also yeah if this happens and I didn't didn't solve the problem it's like you know late may be does Biden NASA is not our business I mean. I it is kind of fun and say that I and I'm actually kind of proud of this but to be honest we're kind of boring. Right this is it this is the structure we did this one thing we're the best that it. And if it doesn't fit or just not going to do that and that being said we are one of the largest portfolios of its kind. In the nation. You know we're actually going to a national conference next week toy and will be they're talking with our peers throughout the country and winning here that we do this with. 35380. Properties are throughout justice at Texas they're thinking wow that's crazy there were like well it didn't happen overnight. Magazine mentioned like we don't processes and guidelines out of the lessons that we've learned how to the last sixteen years so removing that. Risk upfront before you do we deal that's one of the best ways you can mitigate that risk. Absolutely you know it's funny you say that I forgot about the conference they've actually invited us to speak on two specific topics yeah and in this president of CDs leading lenders in the nation. On I mean this is this is a verbal pat on the back and I had a boy yeah -- go OK we're talking about underwriting. Heat between the cornerstone of any deal if he's right getting into the idea or bad do you're gonna lose right and they were talking about the other corners are the most boring part in the industry servicing and collection service and what are you servicing. It's it's it's everything. It has everything you know it well I'm let's say it now the sexy next week's episode we're gonna talk about loan servicing and she's not familiar with that term in most people are publishers in the industry. Or not. Everything that happens after you closed the loans that alone is not effective collecting the payments collateral monitoring making sure there has insurance making sure they pay their taxes making I mean. Always the list can go on this record is entire systems and checklists that have to be honored throughout the entire process we're gonna get into that and and that's all about being predictable. We talk about how to remove risk that's when the other nice things about pride at winning is you get paid along the way. You don't have to wait until the variant you're not. Waiting on success at the very into the loan and chaos to make your return like you are in so many other investments including paid current on the way that can be monthly or quarterly. That's pretty fantastic I don't know a lot of loans in general are real state deals where you make a little money on the way like that. The more though the more you wait till the end the last predictable it is mind you we love when they when these clients that are flipping houses. Are making tons of money we built a business on this repeat business that you were they contest the better and I didn't and now it's about half our clients can come back for more and more and more but we removed all of that risk and just broke it down to monthly quarterly payments yet that we know what's expect every single month boring as he put it yeah I know young you know. Guys I mean that we are talking about monthly income rate I mean when you look at what this means to our clients or investors. That this is this translates into retirement income. You know we're not to spend on the calm and not open that we hit the target if we missile sorry you know me blue enable deliver that and continue to you're expecting. But this is predictable monthly income because it is boring and predictable. I like being boring and predictable when it comes to making money you know I mean honestly and that's the other thing too when you when how do you make it boring and predictable. And and how do you hold true to your core tenants that's where 70% loan to value we've talked about that on a couple of shows and I can get into that but. We really hold firm on that where our competition has started to increase quite a bit to get more deal flow. I'm just not interest and we're not interested it's it's yes we're gonna be boring guys and we're gonna keep doing this forever because. It's not our first rodeo we've been here before we know what can happen in the marketplace. RA surrounding I gave you some warning and some lead time I'd like to hear it what is the real wealth to for the week. Let me preface it by saying we miss Timmy Timmy tears he's been joining us the last what twenty weeks or so -- is is working on really helping advisors turned their business around by showing them how to utilize his private lending thing in their business. Yeah we've had a lot of advisors call us and she's like okay I'd I've got to go on the strip and educating exercise or and in and in Tampa I mean San Antonia I'm in Dallas and Nina that's that's pretty incredible talk about financial by financial advice and by the way this isn't just heard direct if you have a financial advisor. And they're not talking to you about private lending. You have a bigger question on your hands right but hey maybe it's not their fault I mean I know about it had your financial advisor called skating contact us with us he can do that real wet blueprint dot com. Or they can just look us up at noble capital so. Have been in contact with us we'd love. To hear from them are all right was see it what is it what is the theme of the day is then there's deals come in all shapes and sizes and in you just hear a bunch of noise out there. The real tip of the week is trust but verify. You literally came up with only three were yes. Yeah that it. I as a journalist it was okay area around Nevada where is the button Ron you're the applies but yeah Mike and I we need to wrap up here today. It's been fun talking and you guys and sharing some stories I hope our listeners appreciated that. We'd love to hear back from new. And we hold seminars actually is one of the best ways that you can come I can communicate with does appear ancient when the seminars. Check this out that real low blueprint dot com where you can see and seminars and Austin and in Dallas that you can come and attend. Next week loan servicing as they send yet so it is best eight. Snooze spells I don't know if it. Found the end there's so much that goes into you. The servicing portion of any loan portfolio we actually have other people that ask is taking his service corps include my portfolio like now we just to Ireland's. And we try to do that very well which we do so. Things happens this week really appreciate it thank you guys thank you very much part of the one we'll see you next week. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- The chief financial or street when funding some information provided in this program they reference other service providers including web sites operated and maintained by third parties such information is included solely as a convenience to you and the provision of such information does not imply a responsibility for such third party information for an endorsement of the leak site its operators or its contacts that you financial instrument funding are both wholly owns the series of mobile capital Kabul capital acute financial extremely funny and or their respective affiliates and principles which may include the speakers and constituents radio program. 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