NoteSchool - April 2022

NoteSchool - April 2022

NoteSchool News APRIL 2022

FIND RELIEF IN THE NOTES BUSINESS Rentals Sucking the Life Out of You?

Here at NoteSchool, our biggest customer is what we call a burned-out landlord. We buy properties from these people, get capital from them, and they become our private passive investors. We see so many of these folks that we even have an acronym for them — BOLs! There’s nothing wrong with being a hobbyist landlord. There are about 17 million rental properties in the U.S. owned by individual proprietors with five or fewer houses. Three- fourths of those people don’t have their properties managed by someone else; they self-manage. Usually these folks are educated, well-read, good, smart, moral people. But the truth of the matter is that most of them are also BOLs. They all bought what they thought was an investment, but it turned out to be a job. Their investment didn’t match their tolerance.

Why am I telling you this? Well, April is Stress Awareness Month, and if you’re a BOL, you’re living with way too much stress and frustration. You’re probably reading this newsletter because you’re looking for an investment that doesn’t suck the life out of you. And you’ve found it: Notes. Just think about it. Who would you rather be, the landlord or the bank? Of course, you want to be the bank — you and everyone else in America! Getting into the notes business will let you do that, and I’ve seen student after student figure that out. Take Lois Meyer and Cynthia Sterling, two ladies close to retirement age living in the Houston area. Before they found NoteSchool, they were landlords, and they were out there doing all of the same things small-scale landlords do: working on their houses on the weekends, driving back and forth all the time, and dealing with the water heater that just happened to break while they were on vacation. They lived all of that, and they became BOLs real quick. Lois and Cynthia were stressed and exhausted — until they found NoteSchool. Now, they have 50 notes, some on properties they sold and owner-financed and some they bought from other people. This has changed their lives! When I see them on Facebook now, they’re out there visiting relatives in another country and really living to the fullest. Last time we talked in person, both ladies were greatly emotional for what note business has given them. They told me, “Eddie, we just can’t believe the difference!”

The notes business can work for almost anyone because it’s totally customizable. The first thing we do when someone comes to a NoteSchool class is evaluate their talents and tolerances. Then we take them down the road of investing from there. You have options within the notes space, and they don’t involve buying new roofs and fixing leaky toilets! There are different strategies and paths you can go down, and we’ll point you toward the one you can tolerate. Take it from me: The stress of managing a rental property you don’t like will have a negative effect on your health and happiness. You deserve better. Your family deserves better! And you can find better here at NoteSchool. Managing rentals sucks the life out of people, and notes breathe life in. I’m not a genius, but once you get into this business, it doesn’t take a genius to figure that out. As the old saying goes, “Find the business you love, and you’ll never work another day in your life.” That’s definitely true for me and for most people in notes. Almost all of our students who go from landlording to notes are blown away by how much better they feel, just like Lois and Cynthia.

I bet all of that sounds familiar.

So, what are you waiting for? Get rid of that BOL stress and go all-in on notes before it’s too late.

NoteSchool students Lois Meyer and Cynthia Sterling of Houston, TX

–Eddie Speed

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NEWS IN A

Staying hydrated is one of the pillars of healthy living. In fact, according to the Mayo Clinic, women should drink 11.5 cups (92 ounces) of water a day, and men should drink 15.5 cups (124 ounces) a day. But, if we’re being honest, water can be pretty boring to drink — there are things we’d rather be drinking, and busy schedules make it difficult. Here are some ways to work more water into your daily routine to promote optimal health. Begin and end your day with water. Make it a routine to drink a large glass of water upon waking up and before going to bed. “Bookending” your day like this ensures that your body is hydrated for both the day and night ahead. Drink a cup of water with each cup of coffee. Many of us are used to drinking more than one cup of coffee throughout the day. If you drink a glass of water with each cup of coffee, you’re sure to stay hydrated. Keep in mind that while coffee is a liquid and contains water, it’s not very thirst-quenching. Ice is your friend. Each time you pour a drink or make a smoothie, use lots of ice! Your taste buds will hardly notice the difference, and you’ll still have lots of flavor while boosting your hydration. Drink a full glass with medicines. Many of us get in the habit of only taking a large sip of water with pills. However, whether you take a supplement, medication, or vitamin, wash it down with a full glass of water. Carry around a large water bottle. Taking your water with you in a large bottle reminds you to keep sipping wherever you go. Every chance you get, fill it up. The bottomless water bottle is a perfect way to work more water into your day. As a bonus, you can use a measured bottle to see how much you’ve actually drank throughout the day! Raise a Glass — Or Several 6 WAYS TO DRINK MORE WATER WITHOUT THINKING ABOUT IT

Today’s real estate market is still on fire, but you can get burned if you don’t stay on top of what’s happening. The sleuths at NoteSchool have scoured the most important real estate news sources to bring you the info investors need. INFLATION KEEPS SURGING • American consumers are over a barrel — of oil! Because of the Russian invasion of Ukraine and greatly reduced domestic production, oil has suddenly shot up well over $100 a barrel. When fuel prices rise, everything rises along with it. With consumers paying more for gas, food, and other necessities, more renters and homeowners will have less money to keep up with housing payments. • In February 2021, the national inflation rate was just 1.7%, but in October 2021 it rose to 6.2%. In January 2022 it hit 7.5%. It’s sure to keep rising thanks to skyrocketing energy costs. • With inflation soaring, JPMorgan predicts the Federal Reserve will try to cool things down to combat inflation by hiking interest rates several times in the coming months. MORTGAGE RATES RISING, REFINANCES FALLING • Black Knight reports mortgage rates are on the rise. The 30-year mortgage is 3.77%, which is approaching half a percentage point higher than back in September. New purchases are down slightly. • Due to rates creeping up, forecasts predict the mortgage industry will have to lay off 100,000 workers in 2022. This will also affect title companies, home inspectors, surveyors, and everyone else involved in refinancing properties. MORTGAGE CREDIT AVAILABILITY PLUNGES • According to numbers from the Mortgage Bankers Association, mortgage credit availability is way down. The latest numbers show that credit availability in October 2021 was the same as way back in May 2014. (Fortunately, it hasn’t yet reached the same lows as in 2012 — but stay tuned.) When credit availability tightens, it creates voids in the market where well-qualified buyers can’t get a mortgage from traditional lenders, creating opportunities for creative financing. SINGLE-FAMILY RESIDENTIAL INVENTORY STAYS WAY BELOW NORMAL, KEEPING COSTS HIGH • Single-family residential inventory remains about half that of a normal market. A typical, balanced market has about 2 million houses available, but today there are only about 1.1 million. The high demand and low supply are keeping prices up. • Home prices are ultimately determined by “what people can afford.” With more money going for gas and food, many potential buyers eager to move up may have to stay put. • Canada’s real estate forecast reveals home prices may fall 20% in some markets. The U.S. is not currently on the same trajectory, but it could make some investors nervous.

Infuse your water. Try giving your H2O an extra kick. Add berries, lemon, lime, or mint to your water to give it some flavor and help make it more enticing to drink!

Water is important for a healthy body and mind, so follow these tips and stay hydrated!

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HUGE SHADOW INVENTORY OF HOMES EXPECTED TO HIT THE MARKET IN COMING MONTHS • The shadow inventory of single-family homes hitting the market, and nonperforming notes becoming available, are expected to increase sharply due to delinquent mortgages. This is a huge opportunity for note investors to make money with high-quality nonperforming notes. NUTSHELL • Foreclosure-related filings are rising due to moratoriums expiring. About 500,000 legacy loans that fell behind BEFORE the pandemic are now hitting the market. But 2,000,000 loans that became delinquent DURING the pandemic will soon hit the market. By comparison, there were “only” about 350,000 defaulted loans in 2008. The current estimate represents six times as many nonperforming notes as 2008! • Foreclosure activity is up 29% in ONE MONTH between February and January 2022, and up 139% YoY! Many of these delinquent loans have high levels of equity. TENANTS KEEP FALLING BEHIND ON RENT • Over two-thirds (68.5%) of tenants making below $50,000 are now behind on rent payments. (With more money going for gas and food, that’s likely to keep going up.) For those making between $50K and $100K, 23.6% are behind. That means there will be lots of burned-out landlords who will want to relieve their headaches by getting rid of their rental properties and defer their capital gains taxes.

Are you working toward building your own notes business but unsure about what steps to take next? We have good news for you. In addition to our one-day and five-day training courses, NoteSchool provides another game-changing service: our mentoring program. FIND YOUR NOTE COMMUNITY THROUGH MENTORING It Worked for Nick and Scott! This complete investment program includes a range of benefits, including actionable training, personal support from our team, vendor contacts, and all of the documents and resources you need to succeed in the notes business. You’ll also get an introduction to a community of like-minded investors who will be there for you when you need capital, advice, or a new deal. Perhaps most importantly, participants in NoteSchool’s Mentoring Program who’ve mastered the basics receive exclusive access to quality assets.

For Nick Legamaro, a NoteSchool student from Plano, Texas, this package was revolutionary.

“You should really check out what Eddie has going on right now because it allows you to monetize and capitalize on deals [in the $200,000–$500,000 price point] that

nobody else can do ,” he says. “If you listen to what Eddie has to say, you’ll see there’s a tremendous value in being able to add another vertical to your revenue-generating stream.”

One-Pan Chicken Tacos Inspired by TasteOfHome.com

Scott Bower, a student from Phoenix, Arizona, discovered similar benefits when he signed up for our mentoring program. “When I met NoteSchool and Eddie Speed, I learned there’s a better way to capitalize on leads I already paid for and be able to monetize them,” he says.

Ingredients Directions • 1 lb chicken breasts, sliced into 1-inch pieces • 2 tbsp garlic powder • 2 tbsp cumin • 2 tbsp chipotle powder • Canola oil (for frying) • Corn tortillas • Grated cheddar cheese • Pico de gallo

1. In a mixing bowl, combine the chicken pieces, garlic powder, cumin, and chipotle powder. Mix until the chicken is coated. 2. In a frying pan, heat the oil. When the oil is hot, add the chicken mixture. Cook on medium heat for 5–8 minutes. 3. Remove the chicken from the pan, and add the corn tortillas (avoid overlapping) so they soak up the juices. Flip the tortillas and repeat. Then, add chicken and grated cheddar to each tortilla and fold it over the filling — in the pan. 4. Cook the tacos for 3 minutes per side until the tortillas are crispy and the cheese is melted. 5. Top with pico and guacamole salsa, and serve!

Scott’s experience was so transformative that he advocates for mentorship for anyone hoping to build a business in notes.

“Those of you who are hesitant, I promise you won’t regret it. You can creatively put together deals you never would have put together before that will give you cash today and will be able to pay you over time,” he says. Ready to learn more about the program and meet your mentors? Visit NoteSchool.com/training/mentoring , or call us today at 888-847-9353 .

and guacamole salsa (to taste)

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1 How to Stop Being a Burned‑Out Landlord 2 How to Drink More Water 2 News in a Nutshell 3 One-Pan Chicken Tacos 3 A Word From 2 NoteSchool Mentees 4 ‘Chatter’: Your Guide to Thriving Under Pressure Inside this issue

Take Your Internal Pep

You probably know about the benefits of positive self-talk, but have you mastered it? If not — or if you’ve never heard that phrase — “Chatter: The Voice in Our Head, Why It Matters, and How to Harness It” by Ethan Kross may be the most important book you read in 2022. Positive self-talk is something most of us engage in daily. It’s the “you can do this” nudge you give yourself to combat dark thoughts like “I don’t know what I’m doing” and “no one will take me seriously” before a big presentation. But few resources give you precise strategies for how to engage in positive self-talk effectively so you can make those negative impulses go away. “Chatter” is an exception to the rule, perhaps because it was written by an actual psychologist! Leaning heavily on scientific research and engaging case studies, Kross offers concrete tips for reducing negative thoughts (what he calls “chatter”) and giving your self-confidence a boost. One of his biggest tips, which drives a big chunk of the book, is the

importance of creating “mental distance” during your internal pep talks.

Mental distance is exactly what it sounds like — stepping back mentally from your worries and problems so you can gain a new perspective. Kross goes over several ways to do this, including trying to “look back” at your current situation from one, five, or 10 years later; comparing this hurdle to tougher ones in your life; and shifting your internal monologue to third person so you can try talking to yourself as if you were your own friend. With these strategies, we can transform our thoughts, rather than avoid them. Of course, those suggestions just scratch the surface of what’s offered in the book. Kross also goes over how to help your friends, colleagues, and employees eliminate chatter, and how mastering your inner voice will help you thrive under pressure. The magazine Inc. named “Chatter” one of the “4 Business Books That Will Accelerate Your Success In 2022” — don’t miss it.

Talks Up a Notch WITH TIPS FROM ‘CHATTER’

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