NoteSchool - December 2021

NoteSchool - December 2021

NoteSchool News DECEMBER 2021

MY BIG PREDICTION FOR THE NOTES BUSINESS The Next 5 Years Will Trump the Last 10!

Ah, Christmas — is there a better time of year than this? For the last few years, I’ve looked forward to the holidays more than ever. Why? Well, because my daughter, Emily Speed, is a professional ballet dancer for the American Ballet in Denver, and Christmas is their prime time. This winter they’re producing “The Nutcracker,” and every weekend in December, my little Emily will star in it. The whole family is already planning a trip to see her perform, including my wife and our kids. Fortunately, this old cowboy still knows how to go to a ballet!

After we watch Emily’s performance, our family will spend Christmas together. It blows my mind that my oldest grandchild, Colt, is 2 years old now. I’m excited to see him recognize the magic of Christmas just like my kids did at his age. Apart from time with family, the thing I enjoy most about December is looking back at another year in the notes business and making predictions for the years to come. This Christmas will mark more than 40 market cycles I’ve seen come and go! Believe me, when I started in this industry, it looked a little different than it does today. I still remember when conventional mortgage interest rates were 21%! I’ll never forget 1984 when interest rates dropped under 10% and people started telling me that the notes business would go away soon. “Eddie, people won’t need seller financing anymore because interest rates are too low!” they said. I was actually a tiny bit worried back then, but today that seems laughable.

Looking back on 2021, I’m reminded of a big lesson I learned in the 1980s: Our industry thrives when people like me and you use our God-given visionary skills to see a void in the mainstream market and fill it with creative financing. That’s why, looking ahead, I’m convinced that the next five years in this business will be better than the last 10! In a year or two, this position will be common knowledge. Everyone will know how lucrative notes can be. But because you’re reading this now, before Tom, Dick, and Harry know all about it, you have the opportunity to get into the business early and enjoy a real advantage. I saw a situation like this once before in 2009. Students who listened to me and saw the writing on the wall thrived like crazy in the nonperforming notes business because they beat everyone else to the punch. What are you waiting for? Are you going to go along passively in 2022 and let the market play with you, or are you going to seize the day in the notes business and ride it like a bronco with NoteSchool’s help? Personally, I’m going to keep riding just like I have the last 40-plus years. To learn how you can do the same, open up this newsletter.

Now, if you’ll excuse me, I’m off to watch my daughter dance!

From my family to yours, happy holidays!

–Eddie Speed

NOTESCHOOL.COM

1

NEWS IN A

How to Wake Up Refreshed

We bring you the real estate news that reveal where the opportunities are. The mainstream news media only promotes one story — that real estate is on fire. But like all fires, it is running out of fuel. Delinquency and forbearance rates are up. • In August, 750,000 homeowners hit the “point of no return,” the 90-day delinquency mark. Thousands of homeowners will have to sell fast to avoid foreclosure or lose their equity. Eddie says, “This is the first glass of water coming over the waterfall.” • In September, Fannie Mae sold off 11,100 nonperforming notes totaling $1.68 billion in unpaid principal, but there are 2 million delinquent notes! Their top four buyers were Barclay’s, Credit Suisse, Pretium Portfolio 1, and Pretium Portfolio 2. • Freddie Mac also sold $1.3 billion in nonperforming loans. The average monthly delinquency (AMD) was 23–36 months, so homeowners were falling behind before the pandemic. • Forbearance plans fell below 1.6 million for the first time since the pandemic started. About 450,000 forbearance plans expired in September, and 500,000 will expire in October, with 137,000 in November. Not all will qualify for an extension. They will have to sell or face foreclosure. New forbearance plans are up over 25% since mid-August, mostly driven by FHA and VA loans. More than 850,000 forbearance plans will expire in 2021. • Mortgage Monitor from Black Knight reveals delinquencies (not forbearances) have fallen to 4% in August but are still three times higher than before the pandemic. In the next six months, those homeowners will have to sell or bring up to current. In the first eight months of 2021, 2.5 million went from current to 30 days delinquent. Landlords are still hurting. The shortfall in rent payments has risen from 11% to 37%. About 72% of all rental properties are owned by small-time landlords who own 1–5 properties, and most of them manage the properties themselves.

Are you getting enough shut-eye but still feeling groggy when you wake up? The type of sleep you get matters, and a sleep schedule can help ensure you’re cycling through all the stages of sleep your body needs. Sleep is broken up into four different stages. During the first stage, which only lasts about 5–10 minutes, your body is softly drifting off, and as your brain slows down, your breathing and heartbeat slow as well. When you transition to the second stage, you become less aware of your surroundings, your eye movements cease, and your body temperature drops. Moving into the third stage, your body will drift into a deep sleep, where you will not be awakened by small noises and your muscles are completely relaxed. In the fourth stage, your body is in a deep, restful state. In stages three and four, you’re getting REM sleep, which is when your body is in its deepest sleep, and your breathing, heart rate, and temperature all reach the lowest level. In these stages, your body is able to fight sickness, begin repairing itself, and commit information to memory. During REM sleep, which occurs about 90 minutes after your head hits the pillow, your body is completely relaxed, and you begin to dream. Throughout the night, you will progress through these stages of sleep multiple times, but usually not in a perfect sequence. You will likely be in each stage of sleep about 4–5 times per night, and one cycle typically lasts about 90–110 minutes. Too much or too little REM or non-REM sleep can affect the quality of your sleep and how refreshed you feel. Quality sleep is important to make sure you are recharging your body, strengthening your mind and immune system, and prioritizing your health. If you never achieve deep sleep throughout the night, sleep deprivation sets in, and you won’t get the proper rest you need to recover. By setting a sleep schedule, you can make sure you are hitting the hay each night at a reasonable hour and allowing yourself to properly cycle through the different stages of sleep. Be sure to clear your mind before tucking yourself into bed and make sure your bed is comfortable to promote the best possible sleep — your body counts on it! THE TYPE OF SLEEP YOU GET MATTERS!

DIY Holiday Eggnog Making your own eggnog is easier than you think! This creamy, delicious drink will be a hit with your holiday guests.

Inspired by TastesBetterFromScratch.com

INGREDIENTS

• 6 egg yolks • 1/2 cup sugar • 1 cup heavy whipping cream • 2 cups milk • 1/2 tsp nutmeg

• 1 pinch salt • 1/4 tsp vanilla extract • Cinnamon and whipped cream, for garnish

2

888.847.9353

NUTSHELL

Eddie often says that NoteSchool is for everyone — the 19-year-old kid fresh out of school, the 68-year-old grandfather of seven, and the 45-year-old mom looking for a side hustle. Recently, a student came to us who was a great example of this idea in action: Victoria Cobalt, an ambitious single mom from Mesa, Arizona. Victoria had a unique motivation for working with NoteSchool. After signing up for our 1-Day Live Training Class, she told us, “I’m coming to these investing events to learn how to repaint a new picture for my future. I’d like to set an example for my son to She Learned It All in Our Live Class! NoteSchool Helps a Single Mom Invest

Contractor availability and material shortages slow fixes and flips. • Zillow bought 3,800 houses in the second quarter of 2021 but has stopped all purchases for the rest of the year. They’re struggling to find contractors and materials to rehab their inventory. • A new venture is flipping houses without fixing them. Sundae.com launched a platform for purchasing and reselling distressed “as is” properties with list of repairs needed. Inflation is a concern. America is not producing as much oil and we’re importing more. As of late October, West Texas Intermediate crude was $83.17 per barrel. One year ago, it was $39.73. Rising oil prices are a big driver for higher inflation and interest rates. Higher gas and food prices tend to hit the middle and lower classes the hardest and could affect their ability to make mortgage payments. Residential home sales are lower, mortgage updates are higher. • The National Association of Realtors (NAR) reports pending home sales declined 2.3% in September compared to August, with an 8% drop over last September. All four major U.S. regions saw contract activity decline, with the Northeast showing the largest declines.

show him that we can build a new life any way we want it to look like. I think coming to events like these helps you learn how to do that — learn how to invest.”

• Some markets are still red hot. The top two markets are Austin, Texas (up 45% YoY), and Phoenix, Arizona (up 33%).

• As of Oct. 15, the Mortgage Bankers Association (MBA) reported that refinances decreased 2% from the previous week and were 26% lower than the same week YoY. Mortgage rates have climbed, with the 30-year fixed rate at 3.30%, and the 15-year fixed rate at 2.59% — the highest for both in eight months. The increase has caused the slowest weekly pace for refinancing since January 2020. DIRECTIONS 1. In a medium bowl, whisk the egg yolks and sugar until light and creamy. Set aside. 2. In a saucepan over medium heat, stir together the cream, milk, nutmeg, and salt. Bring to a simmer. 3. Add a spoonful of the milk mixture to the egg mixture. Whisk vigorously and repeat, one spoonful at a time. 4. When most of the milk is whisked in, add the egg mixture to the saucepan. 5. Whisk until the liquid thickens slightly or reaches 160 F. Remove from heat and add vanilla extract. 6. Pour the eggnog into a glass container and cover. Refrigerate. 7. When the eggnog has thickened, pour it into glasses, garnish, and enjoy!

How amazing is that goal? Almost everyone who comes to us at NoteSchool has their family’s comfort and well-being

in mind, and Victoria was no exception. We were proud to help her learn all she could about notes to create a better future for herself and her son. We’re happy to report that Victoria loved our 1-Day Class! She got to experience real-world case studies and exceptional networking and even got the latest intelligence on how to succeed in the notes business from Eddie himself. “The way that Eddie can take something very complicated and break it down into doable steps for people to follow — make it a simple process — is really what is helpful for the novice investor or the brand-new investor who really doesn’t know much about the industry or the market,” Victoria said. Whether you’re brand-new to investing like Victoria or want to level up your existing skills to reach your wealth goals faster, you could benefit from one of our 1-Day or 3-Day Live Training Classes. You don’t have to take our word for it, though — Victoria’s experience says it all!

NOTESCHOOL.COM

3

520 SILICON DR., STE. 110 SOUTHLAKE, TX 76092

PRSRT STD US POSTAGE PAID BOISE, ID PERMIT 411

P | 888.847.9353 F | 817.410.4106 NOTESCHOOL.COM

People want to do business with people they trust, and you can’t form a strong relationship after just one interaction. It takes time to build a connection with potential and current clients, and the more you put into these relationships, the more you will get out of them. When lead nurture is one of your top sales priorities, you land better sales, generate more customers, and create lasting partnerships that spawn referrals and more money spent. WITH 4 LEAD NURTURE MUST-DO’S IN 2022! SEE SALES GROW 1 Eddie’s Note Forecast for 2022 2 Get the Most Out of Your Sleep 2 News in a Nutshell 3 DIY Holiday Eggnog 3 Single Mom Shares Her NoteSchool Story 4 4 Steps to a Better Lead Nurture Campaign Inside this issue

Automate: There’s no reason lead generation has to require extra work, even if it should be a top priority. Set up weekly or monthly email messages, newsletters, postcards, celebration cards, and coupons that directly put your information in your potential consumers’ hands. This constant drip ensures you are always communicating with your leads without much effort. Be Consistent: Far too many businesses give up after three or four lead generation tactics because they “haven’t seen a response.” Nurture takes time! You wouldn’t expect a newborn to walk — why are you expecting your prospects to invest after such a short time? Commit to the long game, and you will gain the right customers who are excited to work with you! Use Multiple Techniques: In today’s digital age, you may believe email is the best way to put your message at the forefront of

your prospects’ minds, but that’s the wrong approach. Your prospects get hundreds of emails every day — what’s going to make yours so special? (It probably won’t be.) You also have to target them with direct mail, phone calls, and freebies. Hit them on multiple levels, allowing your business to stand out from the crowd. Track: Once you make a sale, ask the customer what motivated them to buy from you. How did they hear about you? What platforms did they enjoy? This information can help you track what’s working and what isn’t, allowing you to invest properly in your lead generation campaign. Furthermore, track open rates, responses, and phone calls after you release a lead nurture message. This >Page 1 Page 2 Page 3 Page 4

noteschool.com

Made with FlippingBook Ebook Creator