EP 194 – Cash For Keys

NCS 194 | Cash For Keys

NCS 194 | Cash For Keys

On this episode of the Note Closers Show, Scott discusses some effective ways to help avoid drawn-out foreclosures by offering up Cash For Keys solutions to your borrowers.

Listen to the podcast here:

Cash For Keys

It is nice to be back after being off. It does not mean we didn’t get a lot of stuff done when we’re out of town. We closed on a chunk of assets. We wrapped up that trade because we’ve been doing it basically three funding amounts, so a total of 33 new notes that we’re purchasing for our own portfolio. These are all owner occupied. The borrowers have made payments in the last twelve months, mostly in the last six months or something, decent-looking assets as well. We’re pretty stoked about these. We funded on a trade of about nineteen assets about two weeks ago and we’ve already started to get correspondence from the borrowers on that too. This will be a big push if we end up closing on foreclosure too, about 150 total before the last quarter or before the year’s out just in the fourth quarter of the year. We’re pretty stoked about that. Steph’s done a tremendous job when it comes to doing the due diligence and writing it down. We’re really excited about that. It is hard to believe the year is just flying by.

We are just about a month out from our Note Mastermind Group taking place here in December 1st, 2nd, and 3rd here in Austin, Texas. Two weeks from our final Fast Track Training we have available. We’re going to be doing it in LA, Monday, Tuesday, Wednesday. The day to that specifically is the 20th, 21st and 22nd. If you want to get a seat to that, let me know. We’ve got a couple of seats available but it’s going out at Los Angeles, Monday, Tuesday, Wednesday before Thanksgiving. I know it’s a little bit different from the Friday, Saturday, Sunday but we got people that say, “Can we do something differently?” and so we’re making it the one-time that we’re not going to be doing it on a weekend. We figured that would be work week. We’re going to be out in California anyway. I’m really excited to be speaking at the Laughlin Associates’ event. This week is going to be a busy week too. We’re flying out to Cincinnati for the Ohio REIA Expo that Vena Jones-Cox books on every year. I’ll be speaking twice in front of 400 or 500 real estate investors out in Cincinnati.

Today is a busy day. It’s nice out. We have to give a big shout out because over the last couple of days since we were not in the office, Houston won the championship. I’m a big fan of the AL West Division champs. I’m a big fan of the San Francisco Giants who were also very happy that the Dodgers did not win this time around. Anyway, keeping those division titles, the Giants will keep the rings. Congrats to the Astros. Baseball season is over so we have to mourn that a little bit, but was a great World Series.

NCS 194 | Cash For Keys

You’re working before you can let go, you’ve got to have your income replaced.

If you think about what the Astros have gone through in the last six years, they were the worst team in baseball, hundred plus losses three years in a row. They did that because they used the benefits from being the worst to be able to pick up great draft picks and literally propel themselves to where they’re at this year and it works out. It takes a lot of belief to go through some troubling times. I think a lot of similarities are being drawn from that, especially if you’re an entrepreneur, if you’re a real estate investor. If you’re leaving your job, you may be going on tough times because you’re not making as much income while you’re trying to build something up, or you’re scared about that. You’re working before you can let go, you’ve got to have your income replaced. There’s still always a transition period to do that. You’ve got to take time while you’re at your job doing the things in your spare time, the 7 PM to 2 AM as Gary Vaynerchuk like to say, to build up your income, to get your side to hustle to replace your full-time muscle. That’s not always the easiest thing and a lot of people struggle with that.

The Astros are good analogy that a lot of people even struggle. You’re going to struggle before you find success. I think success right out the gate is a very rare thing. People that often have a silver spoon in their mouth, and there’s nothing against them, they’re born that way, it’s great. They don’t always have the most amount of success because they don’t have the need. They don’t have the drive to overcome a lot of times the hurdles, the pitfalls, the lack of funding, the lack of resources, and you have to really dive into some things. I’m always excited to see people go from the whole rags to riches story. You can say the Astros definitely did that; the rags to riches, the worst to the first. That’s what I love about small market team. Houston is a small market team but when they’re beating the Boston or beating the Yankees, beating the Dodgers, all these big market teams, you do more with less.

A lot of note investors out there, sometimes you have to do more with less. You’ve got to figure out ways to make things happen. That’s why today’s topic on this episode is all about Cash for Keys. It’s all about creative ways to avoid having to foreclose. One of the major strategies we’ve talked about is you always want to get the borrower to reinstate. We’ve talked about that in the previous episode. As a note investor, you always try to get reinstatements first. If that’s not going to work then you try to do something, even modification. Try to figure something out to help your borrowers. Sometimes your borrowers just can’t afford to stay in a home anymore. You just have to come to that realization that sometimes you’re going to have to, “Mr. and Mrs. Borrower, your payments are $360. If you can’t afford $360 a month, we need to talk about something else. We need to talk about looking at alternative ways and it may not be keeping you in your home.”

The thing to keep in mind is some things that you can do relatively easy is just offer up a Cash for Keys scenario. Cash for Keys is a pretty simple thing to do. Deed in lieu basically is what we also call it, deed in lieu of foreclosure. What does that mean? Basically, you the bank are agreeing with the borrower to have them deed the property over to you in lieu of you foreclosing. It expedites things. It speeds things up. A lot of times we do call it Cash for Keys because we try to give them some cash to incentivize. I’ve done deals that have been anywhere from $500 Cash for Keys all the way up to $10,000 Cash for Keys. We’ve done a lot of stuff in between.

I’ve heard our friend, Bill Mencarow of Paper Source, talked about he’s only had one foreclosure in all his years because he uses a lot of Cash for Keys and things like that to avoid that, and that’s a great thing. We’ve had a few more foreclosures on this end. We’ve tried the Cash for Keys with different borrowers and sometimes borrowers just stick their head and say they’d fight tooth and nail. The $10,000 one that we’ve done was a borrower in Martin County, Florida, they fought us initially. We offered a loan mod, they didn’t want to do that. We went down the trail to foreclosure and we got to the final hand, and they were like, “We’d like to do a consent to judgment at this point and then they were like we’d like to get some cash.” I’m like, “Okay, fine.” We agreed to $10,000 because the asset had appreciated so much but there were some things, some stipulations involved with that. They had to leave the property in good condition. They had to sweep it out. They had to make sure the power was on. They had to leave their stuff in place so that we could test everything out. They didn’t get their $10,000 until my realtor did the walk-through.

When the realtor did the walk-through, then she got the keys, all the codes, and then handed over the check. It’s done the same way with the $500 we did, the same thing. They had to go clean up the property before we hand the check over. We had one lady we gave her $1,000, too. She did not leave the property in good shape. She could have gotten $2,000 but we still gave her $1,000 because she met and agreed to the deed in lieu and said she was happy to go on and continue to foreclosure. It saved us some time, saved us some money in the long run. Because a $1,000 is still what I would have spent on the remaining attorney fees to finish the foreclosure up. It was easier to do that and save us 90 days.

That’s what Cash for Keys, deed in lieu is all about, getting control of the asset. The borrower’s not going to re-perform, the borrower’s not going to pay in time, you have to expedite and try to take control of the property as soon as possible. Why? It’s nice that they’re living in the property because hopefully they’ll keep it up. A lot of times if they’re not going to fight you, they may not be staying there, and the last thing you want is vandalism in the tape. The last thing you want to do is get them upset with you and take a sledge hammer to the sheetrock. You don’t want them to pour concrete down the thing. This also incentivizes them to leave the property in good condition. One thing that you want to keep in mind too is you’re not just going to hand it over to them. You want to have some stipulations to have in place.

I use Cash for Keys on a property that we bought. It was in Austin in Pflugerville. We bought the house from the spouse. It was a weird situation. Husband owns the property but the spouse gets the right to sell the house. Husband was not going to show up to sign but he had to. We incentivized them. They’re in a bad situation. They’re going through divorce. “I can either have you sign this or I can come after you and it’s going to be a very long time for you guys. I will come after you for everything you own. Why don’t we just make this happen? Why don’t I give you $3,000? I’ll give you $1,000 when you sign or show up to sign. I’ll give you $1,000 to be out of the property by this time. Then I’ll give you $1,000 if you leave it in good shape.” I gave them a week after we signed to get out. Sure enough, when I showed up at the date to move out, he had not moved out yet. He was still sitting there. You want to talk about being irate and pissed off, I was extremely irate and pissed off. I said, “You’ve got until tonight to get out of here if you want to get out of this thing, otherwise I’m going to call the cops. You’re now trespassing.” Next morning I come by, a lot of stuff out in the front yard, there’s still stuff in the house but he’s not there. I changed the locks. I pull everything else out, put in the front yard and we locked it up. He calls me, “I need to get my other $2,000 from what you said when I signed.” I said, “You don’t get the $2,000 because you did not move out in a timely fashion and you didn’t leave the house in good condition. You’re lucky you’re going to get $1,000. You need to go by the realtor’s office and pick up the $1,000 because that’s all you’re going to get. If you trash the house, believe me, you’re not going to get any of it.” You need to be smart with that.

NCS 194 | Cash For Keys

Sometimes it’s all about people are scared about the move.

Those aren’t the easiest conversations. Sometimes they are very easy. I had a borrower that reached out and said, “I’ll give you the property back for $5,000.” I’m like, “Okay, $5,000. Let me think about that.” I looked and checked their taxes and they owed $4,500 in back taxes. I called them up, I said, ” I will give you $5,000 but I’m going to pay your taxes with what’s owed that you should have been paying the last three years with that money as well. I’m only going to give you $500 cash and take the other $4,500 and pay the taxes off.” She was like, “Okay, I’ll still take the $500.” Sometimes you need a way with a few hundred bucks, sometimes it’s all about people are scared about the move. They don’t have the money to move. Some things we’ve done, we paid the deposit on an apartment complex for them, “I’ll pay the first month and last month’s deposit for you to get you out.” Or we’ve hired a moving truck. We have done a variety of different things. There’s one here in Round Rock, Texas we did the rehab on the property the people were losing on. We gave them $3,000 and we paid for them to have a moving truck. We rented it, picked it up for them, met them at the house to help them get packed up, they left, dropped it off. We made sure we knew where they were going, helped to get everything moved in, and returned the truck. It’s just sometimes the conversation.

If you’re not doing your own loss mitigation, which I highly recommend you probably should be hiring attorney like The Law Offices of Daniel Singer to do it for you, tell the people in that office, tell the people that you’re hiring, tell the people that work for you, your servicer, they’re doing it, “I am not opposed to Cash for Keys in case with deed in lieu. I’m not opposed to this. I’m not opposed to it.” If you can pay $1,000 now to get the property, to get control of the property in the next two weeks versus having to wait four months or five months to fish everything out, it’s well-worth it if the loss of your capital goes up tremendously because of that $1,000. Trust me, you’ll spend that anyway in servicing costs and attorney fees for that $1,000. You might as well spend it now and get a hold of the property, get the action taken care of.

A lot of times people ask for one thing, “I’m not going to pay you that because you owe this in taxes and the property is not in good shape. I’m just going to give you $500. I won’t come after you. I won’t foreclose on you.” There’s a variety of different ways to have that conversation, that’s why you want your servicer, your attorneys, your special servicer to handle that for you because it’s important to make sure it’s handled properly. Yes, there’s an agreement. Yes, you want to make sure of a couple of things, too. You never want to get Cash for Keys or offer of deed in lieu if there is a large amount of liens behind your first lien. How do you check that? That’s why you pull an O&E Report, the ownership and encumbrance report. You check the title, get the title update done. If you accept the deed in lieu or Cash for Keys, then your final release of lien if there’s a junior lien, a second lien or  a third lien or a fourth lien, those all now come into first position. You can’t foreclose those things out. You’ve got to pay these things off a lot of times. You will not accept Cash for Keys if there is a junior liens. What you could do is accept the cash for consent of judgment. That’s still feasible and the borrower turns the property over to you consenting to the judgment. “I agree, yes, I owe $120,000 or $150,000 or whatever it is. I’m agreeing to that.” That piece of paper, that consent to judgment allows your attorney still to go foreclose and wipe out the junior liens or foreclosure auction. We’ve done consent to judgments. We paid for that to help speed things up. It makes a lot more sense if you can to try to get that stuff taken care of as best as you can.

One of the great things that we’ve done too is giving you an idea of the timing of stuff. We bought these assets over the last 90 days. Later outreached, with servicing transferred over for those contract for deeds that were vacant and we’re now doing cancellation contracts. Some of those are getting those things listed again for sale. The borrowers are occupied, they aren’t paying. We’re going to offer up deed in lieu, Cash for Keys, and then we’re just going to foreclose. We’re getting to the end of the year. We want the majority of these things to have some resolution in the next 60 days, if not sooner. One of the things that we’re getting are those that are making payments, that’s great we can work with them. We’ve got a borrower that reached out, “I’m not going to make my payment. The statement doesn’t look correct.” That doesn’t justify you not making a payment. If you’re not going to make a payment, we’re not going to mess around with you. When you threaten that the property’s going to get trashed out, I’m just going to send it to my attorney. That’s funny we’ve had that happen a couple of times. It is what it is. You’re in the asset business, not in the people business. You have to understand some of the things when it comes to people and people’s philosophies and mindsets. What does this time of year mean to people? If you’re struggling to pay your bills, Christmas is an even bigger stressful time. You get the holidays. The idea they’re having their Thanksgiving dinner or having family over or paying for toys for kids is a stressful time. I get it, I’ve been there. I don’t have kids but I’ve bent down and I go, “It hurts. What are we doing for Thanksgiving? It looks like we’re eating cranberry casserole in a can for Thanksgiving.”

Anytime you can try to come to a solution, I like to cut through the bullshit. “Mr. and Mrs. Borrower, I understand it’s a stressful time for you. I have been down this road. What can we do? Be honest with me here because I want to create a win-win for you. If you’re not going to be able to make these payments on time then we need to look at get-me-out-of-the-property. Do you have somebody you can move in with? I’m willing to give you some cash to move on. You just have to sign the property over to us and walk away, so we’re foreclosing where then I am able to come after you for everything. Why don’t we just go ahead and do a Cash for Keys?” It’s very simple. Instead of saying deed in lieu of foreclosure that confuses people sometimes, but Cash for Keys, “You sign the property over, I’ll give you $500 or $1,000 and walk away. You can start the New Year over somewhere new without the stressful of being foreclosed on. Let’s get you out of that situation as something good.” If you’ve got to move in with parents for a while, it happens. You’ve got to move in with friends, family members, it happens. If you’re not working some place, my heart goes out to you.

One thing you have to realize, you do not run a charity. There’s nothing wrong with helping people, but you don’t run a charity. You’re in this to make money. You’re in this for the profit side of what you’re doing. It doesn’t mean you can’t help people but you also can’t give them a mile. You have to realize that people at some point that they’re in the situation where they are today because of the decisions that they have made. Everybody is responsible. It’s not Obama’s fault, it’s not Trump’s fault, it’s not Bush’s fault, everybody in that place. It is their fault, the individual there. I am where I’m at today because of the decisions I make. You are where you’re at today because of the decisions you have all made. I’ve made mistakes, everybody’s made mistakes. That’s the beautiful thing is you can overcome those mistakes if you start taking action to do things. Pull your head out of your ass and start making actions to do things. Sometimes you’ve got to have that little bit of that wake-up, a little slap to the face, not literally but you know what I’m talking about. For the borrowers say, “Wake up here. The market rent’s $600 a month for the same type of property. Your mortgage payment is $350. If you can’t pay that then you got to look at getting out, because then you’re going to end up homeless. I’ll give you 30 days to get out of the property and at that point I’ll give you $1,000. You’ve got to leave the property in good shape, you’ve got to keep to it clean to get that $1,000.”

Someone said, “Scott, my borrower wouldn’t take $1,000 I offered. She was living free for close to three years. I had to foreclose in three weeks. It makes you wonder what they did with the money they should have saved for three years. I tried to be compassionate with that level of lack for emotional equity.” That will happen. Some people have been living for free and they don’t want to start paying. “I don’t have to pay my mortgage. I haven’t paid it for three years.” That’s great, but you do have to pay now.

NCS 194 | Cash For Keys

If they’re living in a place for three plus years and not paying, they’re probably not going to start paying.

I’ve been down that road before where we didn’t make our mortgage payment for six months because I was out of work. It’s not a fun time. My bank at that point was Countrywide, did not offer me Cash for Keys but they offered me making chunks to get caught back up, which I had to. I do the forbearance and draw payment plans for a while. I was happy for that. If somebody’s living there for three years, that’s the thing you’ve got to keep in mind. If they’re living in a place for three plus years and not paying, they’re probably not going to start paying. You’re probably going to have to foreclose, unless it’s something different. Unless you look at the collateral file and you’ll see loan modification paperwork or short sale paperwork. Or you see things in the full collateral file from your borrowers. Then you know that they want to stay there, they want to try to work something out, whether it’s a loan mod or a forbearance agreement or even a short sale. A short sale package, I look at it as a positive. Those are great things to have in your collateral file as you’re looking at it and you see more of the communication from the borrowers to the servicer. Cash for Keys, $500 to $1,000. You never give them the check without accepting the keys and doing a property inspection. Never, never, never accept a deed in lieu, Cash for Keys without inspecting the property and paying the $80, $85 for Pro Title USA to run a title update, to see what’s on that property, to see if there are any junior liens that are going to be behind.

In some cases, I accept the deed in lieu when there are smaller liens on the property that I knew that I was going to have to pay. I knew I was going to have to pay those. I can take another twelve months to wipe them out. I would end up paying. I’d have to pay on the taxes or the HOA liens and things like that. I just went ahead and accepted the deed in lieu and we took the property back and we’re paying the taxes and other things like that. You have to run some due diligence. Joel Markovitz likes to say that I had ten notes to buy, three to reinstate, three will do deed in lieus and the other four to six, about 50% of the time they’re going to foreclose, and 25% of the time they get reinstated and 25% of the time they’re going to be deed in lieus. What’s important to know about this is always have everything written down, specific dates, specific times, and have the borrower sign off on that, “If you’re going to accept this, great. You need to sign off on this and then the check will be at my attorney’s office or the check will be in my realtor’s office. Once you have completed these things at this specific date, you’ve moved out, turn the keys over and go on from there.” What you do with the keys when you get the keys is you change the locks anyway. You go out and change the locks, you secure your property, and make sure it’s taken care of.

One thing you can also do when you talk about changing locks, if you’ve bought a note, bought a property and it is vacant and maybe the power’s on, you need to go change the keys. You need to go lock it. You need to go secure the property. You have the right to go secure your asset. If it’s vacant, if it’s for sale and it’s vacant, by all means go out and change the locks because the last thing you want is some strange neighbor coming in and stealing stuff or anything like that happen. Make sure you’ve got to take care of it. Vacant, you need to change the locks. You can have your realtor order locks before walk-through and take photos for you so you know the condition while you’re finishing the foreclosure, the eviction or cancellation of contract.

We have a question, “How does Cash for Keys affect the borrower’s taxes? Do we need to send them special debt forgiveness forms?”

You’re going to want to still send them a 1098T or send them a 1099, but in most cases what happens when you send them a 1099 for debt forgiveness, most of these people are insolvent. Insolvency means is they have more going out than they have coming in. What used to happen with short sales, and it still happens to this day, is the banks will often send a 1099 to the borrower for the debt they’ve forgiven or the debt that they forgave or the amount that they did not get collected back from the sale. All the borrower has to do is fill out a form, a 1098, it’s basically an insolvency form. Basically, they’re going to write that off or they don’t have to pay taxes on that 1099 if they proved to be insolvent, which means that they have more going out than they have coming in. I think special debt forgiveness forms is just basically send out a 1099 at the end of the year. That’s one thing that is nice that you can do and say, “I’m sending you this 1099, we forgave it. All you have to do is when you file your taxes, file this form along with it.” That’s one of the nicest things that can happen.

If somebody’s not going to work with me, if somebody’s going to be an ass and I have to foreclose, I’m still going to go after them for what I can. One thing that we like to do to a tenant in place that’s not paying rent and we evict them is I send them a 1099 at the end of the year for what they owe, their back rent and for any damage they do to the property. I send them a 1099 instead of going after them for deficiency judgment or rather write that amount off my taxes because that’s income to them. If they’re not going to pay it, it’s income to them. Send them a 1099 for back rent and any updated repairs. You can’t be like, “I’m going to put a new carpet,” that wouldn’t count. A touch of paint, carpet cleaning, those are expenses that you can send and get written off that way. A lot of people don’t know about that.

One thing too is it’s hard to believe is that we have been doing The Note Closers Show for over a year now. The podcast has been around for about 60 plus days but we started doing Facebook Live videos over a year ago. I had something pop up, a reminder of me throwing ducks over my head on one of the earlier episodes. I will tell you this, consistency builds success. Some of those episodes are grainy and they’re short and sometimes we’re ranting on a soapbox and that’s okay. It is atoned what we do now. Doing that previous episodes for nine, ten months and different locations besides here, and having the staff involved in a lot of stuff, it’s exciting to see the growth that has come from it. All you guys that follow us and listen to the show and listen to the videos, we definitely appreciate you. A year has flown by. It’s hard to believe. We started off just doing Facebook Lives just to get an idea, a little bit of a touch every day with our tribe. I think it goes a long way that we’ve done it over a year now. A few gaps in the year but not too long, a few days, a week sometimes, but we’ve been very consistent with the email, our 194th episode with this one.

Cash for Keys is always very easy to do. You can do Cash for Keys and not be present, but always, always, always have your realtor. You may have to pay $500 to your realtor to show up to accept the Cash for Keys. The beautiful thing is I don’t have to do that very often because the realtor showing up is often getting a listing. It’s going to be their REO. I often tell them, “I’m going to either overnight you a check for the borrower.” One of the things you have to keep in mind too is if you’re doing it in chunks, “You get $1,000 to be at this time, a $1,000 to leave the property in good shape, and $1,000 to sign off on it.” If they want to sign off but they don’t do the other two things, I’m only going to give you $1,000. If you’re setting the things up when you overnight the check to your attorney or the realtor’s office, make sure that you send the checks in the cashier’s check or the money order in increments, $1,000, $1,000, $1,000. That way if they don’t do part of it, you don’t want to pay and only have one check for $3,000. You’re giving them $3,000 for something they didn’t accomplish and you’ve spent more than you needed to. That’s an important thing that I learned the hard way one time.

NCS 194 | Cash For Keys

Once the keys are handed over and the check is with the borrower, make sure you get the locks changed and secured.

Talk to your realtors and tell them, “We’re accepting a deed in lieu on this, Cash for Keys. Do you mind meeting the borrower at the property? Can you have the locksmith show up with you? I’m going to overnight your checks. Can you make sure the property is in good condition and walk through it?” before you hand over the check to the borrower. Once the keys are handed over and the check is with the borrower, make sure you get the locks changed and secured. Then let’s get this puppy listed. Tell me what needs to be fixed. Tell me what updates need to be done to the property. That’s valuable information to get it rock and rolling.

If you’d look at the schedule, there is seven weeks left in the year. January 1st lands on a Monday. That’s New Year’s Day. Many places will be close so most people aren’t starting the week until Tuesday, the second. We are already planning out. I have things on the calendar through April already. We have things on the calendar for April and May right now. How far actually are you planning now? We got stuff six months out. People always ask me, “Can you come speak here? Can you come to this?” I’m like, “No, I’ve already got things planned. I’ve already got stuff scheduled for that stuff.”

We are excited because literally less than a month away from our December Mastermind taking place here in Austin, Texas. We’re so excited about that. We got some great stuff lined up for those that are attendants, for those that are coming into Austin to spend three days with us. We’re really, really stoked about some of the great relationships that we’ve made and the amazing stories that we’re hearing from people out that we’re seeing, people closing deals from our Mastermind and new students. We’re excited to bring everybody together in December for people to share their victories and their defeats too and their struggles. We always have a fun time here in Austin. We’ve got some great stuff. It’s going to be downtown. It’s going to be three days of really great fun and networking with everybody and people really making things happen going into the next year. December is usually our largest event of the year because it brings up a couple of things. One is there’s usually a lot of assets available from banks that we get together on. It’s also a great time for people to start really building that and planning their next year. One of the things we’ll be focused on big in the December Mastermind is where do they go from here? Where does 2018 hit? Where do we go business-wise, whether it’s individually or as we grow in industry? We’re going to have a little bit of a peak into some of the things, the forecast and what to expect in 2018. You can catch the replay of tonight’s webinar, 2018 Note Market Predictions. We’ll talk a little about some things that we’re seeing or we’re talking with people, some of the trends that we see taking place right now, and looking forward to what next year will hold for everybody.

I’m going to make adjustments to my business. Everybody’s got to adjust their business depending on what the market does. Whether it’s going up or it’s going down or staying flat, you’ve got to adjust what you’re doing on a daily basis or monthly basis so that you can take advantage of where the market’s at. There’s money being made in every market, whether it’s good, bad or flat. There is money to be made in every industry. You just can’t keep doing the same thing that you’ve done before. I can’t keep doing the same thing I’ve done this year. I’ve got to adjust things going into 2018. I’m already making adjustments for things. You have to do that as well.

One of the things that we will ramp on and we harp on people day in and day out is that if you are doing the things that you are supposed to be doing i.e. a lot of the marketing, the more marketing you’ve done, the better prepared you are to make changes. The better you are prepared to adjust what you do because you already have the audience, your tribe at your disposal while listening to what you’re doing. If you’re not prepared for that because you haven’t done anything, you’re just sitting back on your thumbs, it’s going to be even harder for you to watch things when markets change because you may just be listening to people who are doing things that you had to do in 2017. 2018 may be a different market. We’ll focus on a lot of the good stuff tonight on the Note Night in America and get rock and rolling with that.

If you have any questions about the upcoming Mastermind in December or how you can be a part of this amazement, let me and Stephanie Goodman know and we’ll be reaching out to you. You can always email me at Scott@WeCloseNotes.com or email Stephanie at OneStephanieGoodman@Gmail.com. She or myself will give you a phone call to visit with you and talk about the Mastermind group. We do have a few sneak peak passes if you’d like to be on the fence once you have the Mastermind a little bit warmed up. We do offer some sneak peak passes out. We’ve got a couple of spots available, I think three or four, available for this December Mastermind where you can come in, spend three days. That doesn’t make you part of Mastermind but it gives you an opportunity to come in, sit and see what everybody else is doing and see whatever it’s all about and see what’s the real deal. I can tell you this, it’s the real deal. It is a true note family and just a phenomenal group. The three weekends we have a year with the Note Mastermind are my favorite three weekends out of the year because it’s such a good time to hang with people and see what amazing things that people are doing out there. We’re looking forward to that.

Back to the topic today, Cash for Keys. It’s not difficult. If you want that option, you need to be prepared for that option and actually what I should say is wanting that option. Be prepared for it, talk about it with your servicer, talk about it with your attorneys and say, “We’d like them to do this. This is what we’d like for them to do. If they won’t do this, then let’s start plan B. Either offer deed in lieu or Cash for Keys. We’re willing to do this on a couple of different scenarios.” One of the things I often tell them is, “If they want to do Cash for Keys, let’s see what exactly is the situation that they’re in. Do they have some place they can move to?” We can’t just do a deed in lieu and they just walk away Scott-free. Start with zero and crank your way up to $500, $1,000, $2,000, and go from there. I don’t usually go above $10,000. There’s got to be a lot of equity in the deal for me. Equity for me meaning they owe a lot but I bought the loan relatively cheap.

This month, this weekend, I’m in Ohio at Cincinnati and do Ohio REIA. Next, the following weekend, I’m in San Diego for Aaron Young’s Laughlin Associates event, Magnify Your Wealth Summit, Grow In 2017. I did get signed up for that. Then after that, literally three days event with the Fast Track and of course that’s Thanksgiving. After that is the Mastermind week. We got our last class of the year, the 15th, 16th, and 17th of December. Seats are still available to the December Virtual Workshop if you want to grab a seat to that.

NCS 194 | Cash For Keys

That’s what it all comes down to, is the people. We live in a dark place sometimes

Our thoughts and prayers do go out to the tragedy that took place in Tennessee, but then also the tragedy that took place in Southeast San Antonio at the church. It’s just unfortunate. Unfortunately, it’s something I think we’re going to probably see a lot more of. We’ve already seen more of it the last couple of years. We’ve been very blessed in the United States not to have that happen all the time. If you look abroad and other countries, it’s almost as though, I hate to say it’s a regular occurrence that happens unfortunately. I don’t think it has anything to do with guns. It’s got to do with people. That’s what it all comes down to, is the people. We live in a dark place sometimes. Once again, our thoughts and prayers go out to the community and the victims’ families. Our prayers and thoughts are with you.

Once again, if you want to get signed up for Aaron Young‘s event, GrowIn2017.com. It’s a great event, great place to raise capital, great people. Aaron’s just done a phenomenal job with the taxes and asset protection. If that’s something that’s important to you, that is the event to go to. Have a great day. Go out and make something happen. We’ll see you all at the top.



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