6/10: From The Ground Up

Noble Capital Radio Hour
Sunday, June 10th
Noble Capital Radio Hour, for June 10. There's no template for building a private lending business. Learn about the process of building it from the ground up and the things we learned along the way on this episode!

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

It's time to embody. This. Welcome to this week's episode of the noble capital re you hour where we explore investment strategies for the modern financial landscape I'm your host Chris Wragge pointed I'm joined today by my cohost Romney Navarro. Normally we have our other coast mr. Jay Newman but he is out of town. So we have a substitution in order here and and we are joined by mr. agree Collins our fourth business Barnes & Noble capital welcome to the show today guys. Thank you thank you very much. Welcome green it. You know it's it's kind of funny because we actually joke about Grady occasionally knowing that he doesn't actually listened to these things like Grady so we we throw a lot of jokes at and it's gonna be really awkward 'cause he's here today. So I don't know your home won't be awkward development used to your top 1015% of our content just in general and I really yeah. But David just joining us we're not three guys that judges make fun agree Collins all day no actually we are an alternative. Investment company noble capital we focus on retirement planning pride that lending. And real estate if you want to know more about us you can find is that noble capital dot com. You were also available on. All of the social platforms FaceBook Twitter and Ince the Gramm and frankly if you want to come and visit us at one of our upcoming retirement. Dinners her partner excuse me retirement blueprint dinners. Go ahead and text the word secure SEC UR 82 the number 313131. That's great they get a degree we get all this and now would say this tape being Q. For all of our listeners out there. That commented input questions on our social media platforms. And that's actually where we used to drive today's shows so you know last week we talked about essentially this show was the economy is great until it's not. And we're talking about essentially how you can use retirement planning strategies to plan. Against the other risk mitigation strategy is really what last because about but we we glazed over very high level. This idea private lending and we had a couple questions about that on social media so that's one of the directions were taken issued today is really unit reintroduce that and essentially from the ground up. We're gonna talk about how the strategy was created at. Noble capital how we started that and how it evolves into essentially an institutionally raided device which we can talk about that too. That you can use inside a viewer investment portfolio particularly. For those of you looking to create income streams. In retirement yeah I didn't I think what happened here is we were actually challenge and I can just do is among them yet. I think those are 89 and the what's funny is I got a phone call from one of our islanders the other day and he literally was like I'm looking at this house open and a contract I'm gonna do some iron ons and now this this and degrade so. He started asking some questions and I answered a few in and I sort asking him some questions. And I was like so you know what you're construction budget already gonna build four or would you buy a lot that where is that located we are really started just hit them like what I like it would with any one. That says hey I think I've got this really great investment opportunity. And he started piecing it together himself actually I didn't need to lead in to too quickly to water. You know last like oh so law home on a minute if you biter for this and you put your construct. Are you gonna so we're pretty solid for it started backing in and he was like. A man this is an a good deal as it. Or god oh that's a lot of work does a lot of work out like does your full time job for the next six months you know that right this is this what you gonna do. That's really something and we were talking about being in an interview that we had somebody just the other day. About the concept of being a lender very passive in the concept of being a investor kind of borrower on the street. Incredibly active it's you're an operator your business owner when you're flipping one of these palaces are doing one of these deals. That's one of my biggest criticisms of these are only wanna call them these these big events on how to get in this industry kind of thing is. They'll tell people that you can do this on the side. He can it's a part time job it's a great way to ease into real estate investing and I'm Mike and our new answer. I if you're not prepared to do this full time do not do this that you must be an expert in this if you want to insure. You know your best chances for success why don't TV. It only takes an hour. It's everything turns out. Positive and I love never seen you didn't lose a no lose money on their flip in the budgets with a little it's seeing signs in terms of going into all this money is always coming down now the paint is not wet when people in your property it's not outwardly and you don't know I've had a few lenders actually call me. That have tried lending the money out to an individual on their own that now have a problem project and they need our help getting out. Yeah and that's what I'm talking about the DIY concept like colleges on my own my buddy wants to do this thing and does anybody can do anything. But you're working when you're doing so anyway that's that's one of the according to the were talking about we were challenged and like Kate we can do this thing on our own. Let's see if we can and can't let's owes Taylor bit about how we've done. Right so here we go we're actually gonna introduce this weeks or every week's favorite segment Sean on the street right now. This Sean on the street this week and go out into the light. We're gonna find some people talk to help. Furniture. This is gonna seem like a completely random question if you needed a new piece of furniture and you have the option. Would you hey I already made. He assemble furniture from IKEA foresee custom build it yourself. That's interesting because I own a major business here in Austin and we buy him all the furniture for the business to IKEA OK everything themselves. In terms of my home. And I used to do custom furniture but I never. Really got unexpected and that it was never the quality that I know word tonight compared to thank you get up to sell themselves and most often even furniture for the home on buying it online and ready made delivered installs. Why why you do that then bodies have been easily publicity busy life time was right so it's kinda. Kind of the trade off between may be buying something remade and custom building it right you get kind of a little bit of the best of both worlds maybe yeah that's absolutely right advocate. That we all. We all want the best we can get to the best dollar weakened yet. Quality of what you can order online and have delivered many. It's not that different than custom built on the need to use basis that is the prestige of getting something custom build this mosque in this city. Yeah all right great if you needed a new piece of furniture. Which you made my had already made. Be a symbol of piece of furniture from IKEA. Foresee. Custom build it yourself. I was looking for best opening yet like seven. Like do things are expensive you have to get started us like we can I do think I got that. Desktop from idea and then it just kind of like lifted an album like. Bad risers. OK and so it's got elected ultimate DIY wasn't the prettiest thing but to have the function of it. Consumers and I was like cool idea of just being. Adventures. So so it served the purpose. He didn't have 700 dollars but you made it work. Yes and it made aware of would like 300 bucks and got my there nice. I guess they decided. That's the ultimate DIY he had an accident that I can say. Fifty bucks an hour phone calls home or get him meet Syrian and when you have to make it work you make it work right yeah yeah total actually. Let's say that you needed to buy a new piece of furniture and then you have the option would you eight custom build it yourself. Beat a symbol of piece of furniture from IKEA. At four seed quiet already complete. We made in that order is exactly. If you live by at the time and and the resource them certainly rather custom built them myself. We'll if I don't I'd really like to save a couple bucks and get an idea and hit my girlfriend has her way when she will be out. So okay patient and fair enough there's a lot of influencing factors there enough so you said you would prefer to custom building yourself why is that. And have always done hands OK he's you know when I was like twenty years old let the monarchy. Yeah okay it's something I've always done DIY kind yes that's the woman home runs two and I did a lot of qualities different. Yep that's what we're so here's a lot of but it's yours right mind for better or worse. No capital re. Do you Chris. All right looping shot we're talking about building things from the ground up and I think that's his analogy here with the furniture. It's interesting when year offered choices. On Sunday and an eighty weren't prepared for. You you kind of quickly. Come to irrational decision you know yeah I'd love to do myself. But let's be real I'd probably need to save some money. And if I don't have the time to build it in the arm to scan abide you know I hate gays is best option also the best option is gonna go down here into testing here last week I think Sean was in the Amazon rainforest. There's hey here's a guy on the mean streets of New York City. 42 and Lex is expected to listen if if you're not from Austin if it's not like he's recording in his new but we have these these birds called grapples and that's what that was in the background so good times there yeah I did some he was in the San Antonio zoo but hey in the minute we got before we go to break here. I think idea I think IC understand where he was going with this is like yes. We would all love custom and yes we would all love to take time to you build stuff ourselves in order to save some of that but when he comes back to the real value. You know getting something right off the shelf that works sometimes is the best answer because time is money and we only have limited time. And so many people spend time doing that DIY mixing you know it's. It I think somebody said. It's. What which is better quality off the shelf DO Isaak authors. Yeah it's always worse also I think we need is an invoice IKEA for endorsements yeah is that happened about twelve placements are I mean seriously how many times we say that product name that was awesome let's let it UH no but I think feels good we'll talk about this woman and her break here in just the second we get back. We're going to essentially walk you through building a private lending institution. From the ground up which is what we've done. And allowed you. Our listeners are investors. And you know be right back yeah. Today no. And welcome back to noble capped a rarity error I'm your host Chris Wragge and where this week we are discussing the process of building a new investment model specifically we're talking about private lending. What is private lending we're gonna deconstruct that a little bit for you talk about our marketplace our investment strategy for prime lending and how can working you war. Portfolio talking TU specifically those of you Indy preservation. Phase of you're essentially your life cycle of blame always talked about the last couple of episodes here. So we're digging in deprive Delaney thank you to those of you. On our social media that said Tommy more about this. I'm if you wanted to read up on it and learn more about it you can do that at our website that's that noble capital dot com. Yeah you know what I did not mention some dates in the previous segment so let's talk about that we've actually got retirement blueprint dinners coming up in Dallas and then Austin. And that is Dallas on Wednesday June 13. And Austin on Thursday June 14. To register for that real simple text the word secure SE CU or eat at 313131. You know what we didn't. Warren greedy about besides the fact that we joke about him quite often when he's not here but we actually have to staying we're trying to be better public speakers and we track. How many times. We say. The word like armor and are basically filler write in seems kind dirty but I mean we're all about doing this and we turn into something cool. We actually countess. And track the number ending we assign a dollar value today and we donate that money. Out to essentially a nonprofit here in central Texas that works on affordable housing so Grady just be aware. Every time you say one of those words of Stiller words like if it costs this team well I better just get to check book out now because I have a couple things against number one I was born and raised in Louisiana. And I live for eight years in Philadelphia so those two dialects that capital arm. So those two dialects in the last 35 years I'm in trouble language is totally. Totally out of the bag on this and okay. Are well he's now you know so we'll keep track at it again to get a little bit of the scores are we actually owes somebody 386 dollars adjustments. I don't and say six or seven of exercise has been a just we've got the beleaguered secretary you know it's funny you're winning Chris you are responsible for 48% of our arms as or you know lose and you welcome you hate I don't know. Are fortunate I don't toggle. I was gonna say as a percentage of talk time I'm probably doing just fine yeah okay let's get into this kind of job is about a way to count the show on chameleon. Russia the saudis are on the shark near record I think he plays he's got a clicker enrollment Sunday's ugly dog like on these guys jays. He's getting paid overtime and act on nothing and oh boy a caiso. Private lending blazes many media in a nutshell Newman talked about it but you know you watch these all the stuff on and on television you see the shows that people flipping houses are building new homes. And that's really fine but it's not really how it works in the real world. These real estate investors that are out there and communities are coming to companies like noble capital and they're saying hey. And you loan I need a portion of the finance. To accomplish the acquisition renovation in sales of this product here and and we do yes that's what privately Nina as we're essentially. Acting as a lender. To these individuals these investors that are out there on the streets that are renovating and building new homes so they come to us and what we've done is created few cool. Where investors can actually participated in Nazi think about as you can participate. In this real estate vehicle this this entire industry. Renovation that's going on out there without actually having to pick up a hammer in get your hands dirty so that's really what we're come out a minute ago inch on the street was. Yes it kind of sounds fine but it's an enormous amount of work. Yeah especially you talk about the lender that was with me last week and he was like I'm gonna do this and and we really broke down he's like I'm gonna treat its. Blessed thing Manso eat a lot of people say that they could just do it on their own and you can I guess are we doing on the on our own we actually started with just a couple of deals. Mean remember that deal down in south Austin. There was somebody needed to pull cash out of the property that they own for a few years or whoever non into the go to the very first one that we collectively did together. A great deal and in Hines had a phenomenal deal but it was one deal and it took about 45 of us to put that thing together brain. And that was our full time job. And someone had to you know follow up on and make sure that the loan payments are being made and at the time that was a sexual agreed he didn't and he managed heat loan servicing portion of the company and we had to drive but every so often make sure that. Yes and that's easy you know being being the lender is quote. Easy compared to being the person actually doing a project and actually doing the work on the property so. You know this space is me. Very like rapidly growing and maturing space in fact. Some of the big names do you think when you think of investment banks have started to into the space I mean literally were talking about Goldman. Blackstone like really really big institutional players. They've watched our industry mature overtime and they're saying okay discuss her own tenure now some maturity thirst expert operators in the placed. We wanna participate too and they're taking and that yields so what we've been providing. To our investors for years now as a viable product now the institutional players are saying hey we're gonna come in your play to just really interest in. And that's that's the part that's really interesting to meet because those guys on Wall Street don't get to drive by app property. Right that that same property in south Austin that little neighborhood that you and I drove. Nearby love field beauty right track I don't know and don't understand the characteristics of one street can make all the difference or even the same street they doused notorious for that Dallas fuel on one side of the street vs the other side of the same street is a row wildly different neighborhood in terms valuation. Yeah and that's the thing so you can you can. Do one deal. But it's it's that's scale that really starts fit to stress the model and that's kind of were were that were in that place were taken for gonna compare furniture like shot on the street that great and it was our eye off the shelf. It was building yourself or total craftsman tech gotten. I think we're actually all talking about off the shelf we're talking about custom furniture vs just. Mass production furniture and where we live in the custom space well we do but you know when we started there's no model for this mean we literally along with jade and essentially. Crafted this model in created it and a lot of it came from some really difficult lessons learned through the recession so this company was formed prior to the recession talk about 2002. And has always been involved in real state one level or another but we've taken a lot of the lessons. Through that recession and created this project this product that you can participate so what are we talking about we're far investors. There earning between 678%. On their money in annualized basis but there's some really testing pieces here first of all it's secured by something tangible. It secured by actual real state in the the next piece is we're not at market value you were not purchasing property at retail when you're the Linder. Only lending and a maximum of seventy cents on the dollar so we've actually broken this entire thing down smother segments of reckoning get ended deal's structure here. It's not a retail investment is so much better than that because of this level of security. Yes it's it's definitely. A model that we kind of had to start. Many years ago it's been often duplicated but never replicated. Had quite a few other small ones pop up around the state of Texas that. Didn't survive the last recession and we did that's right because number one we had. Probably five or six years under our belt before that first recession head and we were. A little prepared for unlike most people were so we're still standing even after the last recession. And we're gonna be standing going forward. Yeah you're you're essentially. Our fund manager you're the CFOs no noble capitals are you manage all things as they relate to dollars today. Tell tell listeners a little bit about the investment philosophy just in general what do we do to make sure things go according to plan well. My main philosophy and maybe is just the pessimist in me is I always prepared to fail. I don't expect to fail but always prepared felt like he sports analogies because. Other then money in banking that's all it really knows supports. It's it's like if you have first in gold at the one yard line it's third down. You may call the greatest play ever knowing your gonna score but you have to be prepared if you don't. You better have your kicking team ready right next you on the sideline ready to go. Basically preparing for that play to fail to have your next option up there and I do the same thing when it comes or lending it's like. Worst case scenario. We have to take this property over I need to be ready we need to have our. Team together even if they're not actively engaged yet they're there whether it's engineers are contractors are. Arrigo. And brokers are inspectors just whatever just be ready in case that happens in you do enough of these you're gonna have if you fail. I wanna stay on the sports analogy actually it's about running out of time here so the third and goal perfectly ever is everything goes according to plan payments come in construction gets stolen property gets sold we reinvest in Walla hurry and I scored touched but if you get stonewalled. You gotta bring the kicking teeny inner and that's where you need step in and do something out of it right that's exactly correct. Yeah that's that's exactly where we lived too so a percentage of deals go wrong. It's just the real world that we live and we're we're lending money at higher interest rates because there's a little bit of speculative risk on these deals and frankly we don't have a plan in place. They're gonna fail so. Failed projects actually are good thing. A Lichen like the analogy Eli because even if you don't make that conversion you can still bring the kicking team on it and it's appoints them on board. That's not bad reports all right I we're gonna go to break here in just seconds when we get back we'll talk about literally how we built this nothing out of we'll be right back. And now. Hours. Welcome back to the noble Calgary are I'm your host Chris Wragge and if you're just joining us this week's financial topic is essentially building a new investment model normally am showing by Mike cohosts mr. Ron Navarro NG new and Jed data towns weeks we've got. Our guest star. He looks just as good as Troy Aikman in his commentary is just as clever if without the money he left the celebrity status and mr. gray becoming obvious good look at an obvious good analyst Jim my dad always that I had to face for radio appearance to it really quick deal so I was the only time that's get a thank you know photography going on in the studio today man okay all right if you just joined us that we are three of the four Barnes & Noble capitol talking today about prime lending. Really our core emphasis of our. Entire company it's our differentiator. When you're talking to us about. Traditional investments or retirement plane or just about anything else money related best related we're going to bring it back. To private lending chances are because that's the core of our company would be doing this since 2002. We've survived the Great Recession we talked a lot about that you can hear about these stories. You can read other vignettes and small little things about us on at our website at noble capital dot com it's also great way. To get a hold of us if you want to come to one of our retirement blueprint. The owners yes he can't say the word. I know I did really well there right that these great innards are very dinners and going home I mean you're gonna go to Fleming's are true like something something nice but the contents fantastic and was beyond his bid the really the point of this is. Do you like us and but it's also do we like you is it a good fit right because we have a lot of clients throughout the state of Texas primarily. Focused in Austin and Dallas as the two markets where we have offices so that's why we do our events and and Romney gave us and dates on those who need or more time and let people know where they can go join us but in you do this. And they get hold of a similar to the date. Are so we've got to coming up this week actually so we've got one in Dallas on Wednesday June 13. We've got one in Austin on Thursday June 14 both of these are at Fleming's steakhouse. And two registry actually just text the word secure SEC. You are key to the number 313131. If if you don't wanna do that in just you're just they go roller. It's cardinal capital dot com click on events you either registered there as well a go. All right so let's talk about private lending let's get some of the brass tax down what are the some of the issues with this entire business model in general and to me one of the largest ones. Is market fluctuation right so if you're not prepared. For what can happen in a downturn where rapid change in a marketplace. You got no business being in this business so we've got a little bit of time in the segments I think it's it's important that we take a step back even from not so why are we even they are seriously there's people there was there was a time remember sitting in a room trying to figure out how to cut more deals do more deals and make sure they're nice looking deals where. Everybody's gonna want investment. There is that there wasn't continues to be a very tired housing stock this property that needs to be recycled. And there's a bunch of people out there that actually wants to do the work they want to be operators and business owners and go and actually take the risk to reap the rewards. We wanna be has people so we don't we know we're like yeah we can figure out a way to give you capital. Okay and then essentially. Insulate against that market downturn that market volatility you're just talking about so there's two people needed at a bunch Bieber wanted it. And there's so much demand out there because the property that the housing stock in Texas is especially is getting old but here's the other piece and we we eluded to it. Last segment there's really not any large provider. Of that finance source so Acer to ask yourself why. And it's largely because this is it very difficult business to scale or to do properly locally. And we mentioned that Bain. You know and a out Wall Street bank they are not going to drive by the house and take and take a look at you know they're they're not and actually we joke about it and our. In our industry reaction college drive by inspections a higher like third party. And the good drive by and there's nothing better than seeing a photo where a bank said we checked on the property and you can see like the rear view mirror of their car because they took it from inside the car or worse. Their phone or in other words on the bottom right it says Google Maps yeah Redding and happens man that's and that's that's really that's really true is that how did you trip go yesterday and it's good so couple weeks ago I went to San Antonio and do you is it a lot of our property town there was yes it was two weeks ago. That's how often I see Grady and and so is really great it was is a really really good trip we get to see property in saint Tony all over San Antonia at different levels of completion from. Like literally studs in people taken a property stripped Ollie back two on the market beautiful with a sign out front. For sale that explains some of the reason why it's not scalable because. It's very Hansel and very much I mean people wonder why why some of these borrows would pay a little higher interest rates and bank's. It's it's not so much that they can't get the financing from the banks it's that. The banks don't have. The that'd be yield to be able to give up to kind of service diesels and monitor these loans it takes a lot of work to do you answer is sure does. I mean we're talking about a significant difference between traditional consumer paper. And the types of loans that we provide he's a construction loans and it's really really hard to scale in to do it. Correctly right and that's what we spent enormous amount of time even taken the lessons that we learned from the last from the Great Recession. And deploying adding to a seasoned asset management collateral monitoring loan servicing. World that's what we do those of the reasons why were able to do this while were able to do this at scale. We exist think about it for a second you're if you're listening likelihood of these guys talking about. We exist in writing loans at double digit interest rates who who in the world would take a double digit interest rates besides everyone in the seventies. Yeah and are exactly those people are out of our out of ecosystem for all intents and purposes now say they we've forgotten that and well that's right green is also our resident green here and he's got police not a group realistic. Sad but I also the least amount air. A but the most we are proportionately. It's still. Don't think about it of these guys are paying double digit interest rates if there was. Is there a supply at the banks as the banks could do this you know in quotations could do this the banks would be giving them the money but the banks can't because he failed. On the street they cannot get the properties are. So there's a tremendous amount of demand on the street. And and that was the thing that we felt that was that little section in the marketplace and we filled. We start getting these guys money we did when we did five we did ten we did a hundred word couple thousand then. And now that we've got a system of process that we were able to package up and throughout that to the investors. So that the term we use for banks that the reason they fail it's called collateral monitoring. You know banks don't do that very well. No they don't they they like recording something at a courthouse this thing you know OK to admit the payments and work that we're good. So run to sit on point I think is really important here on things really we only minute dressing one side. And it was the demand side for the loans there's a tremendous demand. For this product in the marketplace. At the same time in the middle there really are not any institutional. Quasi institutional groups that are providing the product. But there's something else that's occurring. And this happened directly after the Great Recession when everyone said wow I just lost 30% in my life savings I was trying to retire next year. What do I do. But it's also happening now when we're looking at stock markets at an all time high. There's a demand for an alternative investments so if you're an investor out there and you're sitting on a pilot cash or you've got significant amount of your investment your entire net stake exposed the marketplace. People are asking what else is there what's the alternative like I can't just sitting cash and lose my money safely. I still want to earn I still need to protect my principal where can I go. And that was the other side of this magic ecosystems that we we entered and we said oh we've got disdain for you you can actually investor money in this. This pride that lending product. We can give you enormous amount of security 'cause it's changeable. We're not gonna write it at market value you're gonna needed it seventy cents on the dollar and you're gonna clip a coupon of six to 8% annualized. That sounds pretty appealing to me and that's alternately where the other side came to play because you match these two pieces that he had this big very large demand. For these guys that are on the streets wanting to refresh housing inventory and you have a very large demand. You know of money out there that is saying hey I need a safe place to go because I know are going to take the big risks. I think the coolest part about what we've been able to do as we've been able to take that back to main street and actually give it to the end investor. As compared to just allowing beat the largest hedge funds in the world to controller capital so let's bring it straight to investor investor you have a choice. You'd like to invest in this deal in this fund. And more often than not the answer is yes because guess what it's that the supply and demand are now you know it. At parity if you will but there's also that protection so yeah I'll do that long because there's 35% protective equity. They're gonna do that every single day if they're clipping a seven and a half percent coupon. Yeah not a bad option right now issuing a licking and I relations Jay mentioned it on last episode he was talking about we woke or maybe as a couple weeks ago. We woke up to you know the Italian banks getting jittery. And it literally upset our marketplace. Mean you think about how old legs at the world is really a big place but it's also very smooth very well connected which was what makes it feel so small you have bankers in Italy. Disrupting the stock market liked is that literally okay with you are you OK with us. Think about the other things going on in the world right now and you're saying yes I know all this can make a direct impact on me as an investor. Now and think about that produced two seconds and and maybe it's 'cause I'm from Texas and our people touching my stuff. Right but it's like. I don't like the idea is that a significant portion of my investment could be affected by what's going on with the politics in the bankers in Italy right now that doesn't feel good one that's one of the benefits of probably ending with us. Is you have some discretion over your investment. Your money is not just being managed by a financial institution. That subject to the whims and the movie scenes of different markets and people's decisions and political. Turmoil in the fund that we have is very specific in what can do it is highly targeted in green knows because he actually works on. The reports and looks at this every single month and really to a daily basis in terms of what are what are we doing where's the money going. Using another football analogy. Right when that disappears when what is the traditional investment vehicles that exist out there you're essentially starting at the goal line and trying to marched downfield hundred yards. We jump in prime lending you jump you you can choose to jump in at the 303540. Yard line. Right the you have a lot of it and mantra I'm reaching here you have a lot of that. Built in LA and and also that they're built and room for error that's what I'm talking about that that 3035 yards is room for error things could go wrong and you're still safe. Whereas here at the goal line that's the safety right. I was terrible but hey. I mean you treat your tried you know on the driveway across on the guys later it's still there might indeed jump in my can mark down now and now is it a gala or semi private lending if you just joined us today and if you're interested you don't know what private lending is or what it's about. Well we don't have time to rehash it again so you're just gonna have to go to noble capital dot com and check this out but what else can you run yeah I think you should all. So consider if you're. Reaching retirement are nearing retirement you should consider coming to one of our retirement blueprint dinners we've got a couple coming up in Austin and in Dallas. In you do that by texting the keyword secure SEC URE. Two the number 313131. They were gonna have making some yet at this year. As a company. When I was like three years ago onto intense sixteen that would be Busey say something that. That app and opinions and yes fifteen by acting on fifteen so don't lashes and yes in arm which we had a little bit of that it just wasn't in her. It wasn't as fun as the finally did well and it was harder and being from being from. It being from Miami man has art did it it here's the third cake but like. It we've been doing this for her yes sixteen years we've been in the private lending industry so we've been doing this for awhile and more I wanted to bring this out does that. This industry is is achieving some form of stability. We're seeing a lark a lot meaning very institutional players that are coming to play here now. And they're saying hey this is very interesting. And we have spent an enormous amount of time educating the industry trying to participate at a very high level at a national level on saint. This is what's going on did I know we're running out of time daylight right now but here's the thing greedy actually worked in that space prior to. Joining forces invest 1011 years ago. I think you should talk a little bit about the differences between that you big institutional links and what we're doing right now we come back. Okay. I should other great card for example there was just pretty good so we can definitely come back from the break here in just a second though yeah we are interest in talking about the differences between that kept the thinking in what we're doing in today's world so. Again talking about prior to winning today if you have never listen to us before we haven't mentioned it that I wanted to bring it out there you can also. Download this month podcasts so you can do it through iTunes or Google play were a couple of other things that I've never seen before. But you can do an online and listen I. Once again. This is no capital great. And we're back this is the noble Capital Radio hour and I'm your host Chris Rockland joined today by mr. Romney Navarro and greedy Collins the chief financial officer for noble capital thinks again. Today grieve for being here thanks her enemy yeah I didn't get to. Use the word re right on the show today pad that jokes we've been doing that drug for a long time what does it create again green. Real estate investment trust as pronounced by the northeast if it doesn't elicit the show to retreats. And I think and angry notes through pre sites okay middle America says we need to bear creek reached the right. Any anyway so we usually bring Angelica but. Are right if you just tuned in and you need to re capital been talking about we are discussing private clinic Howell. We are utilizing. A very unique alternative vehicle as an alternative to traditional investments we're not knocking traditional investments were saying that you should also be considering private listening. And make it apart if you were portfolio if you haven't done that are ready. We do that noble capitals and alternative investment company. We specialize in retirement planning private lending and real state so we bringing the private lending product. You our clients portfolio. And we've been doing this for a number of years now as we mentioned just a moment ago men so we were actually I. I pose the question is telling Greece and the and make them off so my dad but you know you lose you than the world of you know big banking. The Wall Street type type. Capital yes I work. A Wall Street firm for a few years and we were actually involved in this industry quite heavily. Which is why that particular Wall Street investment bank no longer exist I won't name names. And I think it's because. They were investing in these types of products are. They didn't originate the loans but they use their capital to purchase these loans their entire goal was to perches as much as they couldn't. Package of the mob sell them off. For just yield all they look that is yielding ball ball ball ball applaud for yield yield yield yield yield. Without monitoring to collateral. Without monitoring the collateral these high yield loans. A lot of the loans went bad. As everybody knows the delinquency on court commercial mortgage backed securities. Or even residential mortgage Baxter's they they call mall commercially even though they may be residential houses. On the delinquency and those. Really you really contributed to the financial crisis of 20082009. And they were they are considered raided two record they were consider rated triple A rated. Paper because that was just their packaging. To. Change their risk profile of those certain ones to get them rated so they could sell them off. It still didn't change the fact that they were loans that needed monitoring. Ed kind of hands on local level and they didn't do that. Yeah and I think they were counting on and they did for a number of years on the appreciation rashes and values to yeah cover up for other. Lack of monitoring and we get asked that question a lot is what is noble doing different clean. To prevent that type of an issue in and that really comes back to the cornerstone of mass that is lenient so there's two things is what Grady is talking about. We actively proactively monitor the collateral at every stage of the property. From even before it closed alone were looking at plans permits budgets scope of work like an enormous amount due diligence is happening in front. And then throughout the entire life cycle of the Sloan were monitoring it. Everything from are they paying their taxes do they have insurance did actually do the work they're gonna say they're gonna do this is the work. They were talking about the most people don't consider when they say all how many get into this business has it lender the also tweak some things going. Forward as we kind of have some market data and so mark market outlook and certain areas. We can tweak our LTD's if we see an area that's getting overheated. Or we're getting a higher concentration of these types of loans in this area. We can. Stop lending in their altogether or we can cut twelve female TV that's the other half right there is we also don't Linda retail living with maximum exposure we're not giving someone 97 cents on the dollar. Which is what you get you know FHA loan we're talking about seventy or less in 1999 I saw a few 125. Since the last I saw a recipe for does that alleged people get cash or close house. Fun would it be so we have this thing that we do in the office it's called a postmortem whenever something doesn't go according to plan. We actually sit down and analyze it beat out just when gas smithereens what happened here. How fun would it be actually let some of our clients come in some our listeners come in and just hear an overview of postmortem this we're right this and wrong this right right right right wrong. Yeah maybe all we did yeah and so we did as a result most of our underwriting updates in guideline changes comes out of these post that's when we see a common thread it's happening in genome more than one time we go MK let's not let that happen again. Up as pretty cool I always take is to the next segment which gives Romney more anxiety than anything else that I've ever seen and that is how. I'm shaken if it should put your money where your mouth as it traditionally. We got to describe the show in five words but now we have a shot envelope thanks to our producers shine. Other names everything after himself and he edits the rules so running what are we doing today. Our answer this week's rules is we're still seeing what five words. Right but you got to incorporate the word noble. So but for exactly five words and noble must be one of them. I'll started off okay. A noble strategy. Includes lending. Yeah yeah no we're starting including no concerns and since then yeah. Man up say something that I really wanted to hear but I need like some dead times do it I'm not gonna have time to do. Literate man tell about. Quick wits. Which I have a very fumes upgrading it and equipped to have here's what I took from Saturday. Your noble significant other decides furniture. That's what I was thinking the whole Thomas on the street I didn't mind if five and it's. I'm the CFO calculator itself is at eight noble was arrogant and noble significant there besides furniture OK okay. That's that's gonna pay. And I got from the welcome to the show I haven't thought about furniture in twenty years. If it was up to me I'd still have the same counts adding column if you if you've ever been his health unity means. Chris what do you think of your exe writing over there's there's no writing involved. So actually the way it always works out is I come up with something that is awesome I always kind of tear the cover off the ball Chris comes up something real nerdy. And NG nails. He just hits it perfectly that I know male lion suit destroy you today. You're ready for this report this it until I conference here's mine. No obstacle. Besides lending in VP. Did not use the word. What's the first letter and a button and no obstacles beside minus minus the Indy no obstacle besides ON GNOBLEOKUN. I wish I incorporated the word without incorporating the word. Does the rules. I destroyed you put the word noble and yes it is easier redoubt in OB LE NATO obstacle besides lending Indy has a name for that outward. This is the fun as part of the show but I think this is apart we start having wrap it up. Reach out to those guys if your interest in learning about this private lending thing how to incorporated into your financial plan how to incorporate into your retirement plan. Easiest way to do it has to start any retirement blueprint dinner. If not come right into the office if not go to one of our events you name it. Text the word secure SEC URT. To 313131. Brady are going to save thinks a lot for coming in to thank you for having me yeah it was really great mutual and you can be Jane son any day. And thanks for thinking about is firing Romney and take his place now by all means. I need your little theories I can't run to set a minute ago is they're part of the shows and it's over. That's a a little things are totally thing that's what you just that I I thought my name Mayan you know in OB LE strategy was pretty good now that's a that's a winner you know reminds me one time we had an intern whose favorite part of working. For the cleanup is cubicle was located close of the rest. Only god knows what he's the only member says feedback listed back Alan I think OK okay and hey it's been a lot of fun and I'm Chris. Among I'm greedy and things for listening to those of the noble Capital Radio I was seeing guys.