EP 650 – It’s Never Too Late To Be A Note Investor With Patrick Franz

NCS 650 | Note Investing

NCS 650 | Note Investing

 

Have you ever been stuck in your career and wondered if you could just jump ship to another one? Especially if that career is all about real estate and notes investing. Well, you can! But the road won’t be an easy one. It takes a lot of discipline and passion for making it through. To go with you on your journey is Patrick Franz. Patrick is an entrepreneur and note investor. He turned all his unparalleled attention-raising capital, doing amazing things to the note business. He did not earn right away, but with enough passion and dedication, Patrick fell in love with the note business. Join your host, Scott Carson and listen to Patrick’s story as he talks about his discovery and passion for notes and how he dove into the deep end of notes.

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It’s Never Too Late To Be A Note Investor With Patrick Franz

I’ve got a special guest on here, somebody who has got over twenty years as an entrepreneur and has turned all of his unparalleled attention raising capital, doing amazing things to the note business. He has been doing it for a couple of years now. I see him doing some things online and I have known him. We’ve got some similar connections. I thought, “Let me have him come.” I’m excited to have Patrick Franz on this episode of the show. What’s going on, Patrick?

Thanks for having me on your show. Yes, we have a sort of connection from way back because I’m a student of a student.

We had a couple of other folks on. We are talking about Desi Arnaz. Desi does such a great job, an ex-realtor who’s out in San Diego. You call sunny Southern California home as well for you, don’t you?

NCS 650 | Note Investing

Note Investing: The worst-case scenarios for the borrowers usually become the best-case scenarios for the lenders.

 

Yes, absolutely. It’s funny the way the note world works. It’s a small world but I’m a student of a student. You had one of our students on your show, but it’s cool to see people succeeding in the note space. That’s for sure.

That’s the beauty of it. A lot of people talk about how they were, “You can’t find any deals. There are too many note investors out there.” I have to just chuckle at that. What that usually tells me when somebody says that, first off, there are no deals. They don’t know how to market. We, as note investors, are such a smaller minority when it comes to real estate investing compared to your fix and flip, your landlords and all that stuff out there. There are so much distressed debt out there. Do you ever find that funny?

Yeah. It’s with anything. It’s like why you, Desi, or anybody who’s a mentor in any space, let alone notes but it’s why gurus are willing to give up all their information and tell people all their secrets. People say, “Why would you do that?” You know the 80-20 Rule or it’s even worse than that but 5% of people that learn about what we do will put in the work to do it. It’s like a shiny object. People hear about notes but it’s not a get-rich-quick scheme and it’s not easy. People need to understand that. It’s hard work and it’s the lesser of two evils. You are either going to work hard for the rest of your life for a little bit of money or you are going to learn how you can get money working for you on your behalf.

There are a ton of ways people can do that. We know that. Guys like you, maybe me, and Desi turned me on to it. I found notes and I thought, “Notes got all of the components that investors look for.” I was used to the high risk, high reward world of venture capital for startup dot-com companies. This is where I come from. Five percent of those companies succeeded, 95% of them went under. All the investors lost all their money. I have seen people lose their butts since the stock market. All these stories of people succeeding in those avenues but there are equally as many or more stories of people failing and losing money in all those avenues. Long story short, that’s when we found notes and I gravitated towards them because of all the factors that notes bring as an investment.

That’s a beautiful thing when you think about notes and real estate compared to the rest of the world. You are investing in something tangible versus something that’s a theory, an idea or hopping on the venture capital that’s going to work out for you.

It’s not a pie in the sky dream. It’s just numbers and relationships. That’s it. If you have the numbers and the relationships, you can build a business out of it or you can be a personal investor if that’s all you want to do. You don’t want to do any type of business in notes and you just want to make your money work for you. With safety, cashflow, collateral, upside, all of these things that happened with note investing, it becomes silly. Why would you invest in anything else unless this runs out someday?

We don’t see debt investing running out in any fashion, especially in the residential side, especially what we have had going on in 2020 and the number of defaults and forbearance agreements. I believe 2021 is going to be a very prosperous year for note investors because they know where to invest. What are your thoughts on that?

I don’t want anybody to seem like I’m a wise guy or it’s derogatory but it’s like my statement I came up with. Here’s the statement. The worst-case scenarios for the borrowers usually become the best-case scenarios for the lenders. Most people I grew up with, weren’t taught financial intelligence in school, how to invest and how to grow money and all that. We have all been on the borrower side of the fence. We have been afraid of repossession if we didn’t make our car payment. We have been afraid of foreclosure if we didn’t make our mortgage payment. We have been afraid of getting our credit bashed because we didn’t pay our credit card bills. We have been afraid of all that our whole lives. Unfortunately, that’s how most people live.

NCS 650 | Note Investing

Note Investing: We could help the homeowners because we’re not a big bank. They’re not just a number on a spreadsheet. We can understand someone’s story. We can work with them.

 

When you look at how we can form a passive income through note investing and you can get something to where you don’t feel as if you are going to be losing your money, you can protect yourself with due diligence in essence that if you are making the purchase right in the beginning, at least you can protect your losses. Be the bank. Be on the lender side of things. What I mean by that statement, of course, is that when you are the lender, unfortunately, when bad scenarios happen like what is happening now with all the forbearances and all the people that can’t pay their mortgage payments on time and all that, it’s a horrible situation. I don’t like to relish in the fact that that’s great for us but the fact is the worst positions for borrowers is the best positions for lenders. It has always been that way. We haven’t been used to being the bank.

Where we make the most amount of money as note investors are actually working with the borrowers to keep them their house. The biggest bang for the buck comes from us keeping people and their houses. It’s not that the bank wants to take the property back because banks don’t want to own property. They want to own cashflow. It’s the same mentality. I don’t want to own real estate all across the country. I love owning performing notes. Even non-performing, we turn into performing. Banks are in a fix and flip business. They are not in the landlording business. They don’t like that stuff. They want to be in the debt space. One of the easiest ways for us to make capital and make money fast is to work with the homeowners. It’s to get back on track, get some down payment, getting back started on and then moving down and getting through that nightmare of an issue that allowed for the originating bank or the bank holding the debt to discount it so we can pick it up for a discount. I always say, “Riding on our white dead horse,” the saving grace to help them out.

It’s the best. Everybody saw that movie, The Big Short, that explains the market fallout. It’s a great movie anyway. See The Big Short if you haven’t seen it. The market fallout when the market crashed in 2007 and 2008. Why it happened is all because of the loans, the debt industry and the debt market. You said it. We don’t want the house. It’s better to work with the homeowner to keep them in the house if we can. That’s what is cool about being a smaller note investor and not a big corporate bank. These folks are not just a number on a spreadsheet to us. We can pay more individual attention to each note. We can do better workouts for people. It’s all about helping the homeowner in the end. It’s the best scenario.

You know that we don’t want to take the property over. Why do we know that? It’s because you had to see all of the biggest hedge funds and banks in the world of 2008 sell-off big portions, if not all of their asset pools at pennies on the dollar. Why? They had cashflow performing assets. They owned the notes and the paper. When 40%, 50% or 60% of your portfolio becomes non-performing, people walk away literally from the physical real estate. Now, it’s yours. Look at you now. If you had a portfolio that had a million notes in it, you have 680,000 vacant houses, that are dilapidating, that the weeds are growing and you are in possession of it, that’s a big scale, but we don’t want the house. I don’t want to be a landlord. That’s not my focus. I don’t want to flip houses either.

We invest in notes nationwide. I’m not going to fly North Carolina to get my tool belt on. That’s not the point. It’s like you said if we could help the homeowners because we are not a big bank. They are not just a number on a spreadsheet. We can understand someone’s story. We can work with them. There are so many options that if you wanted to be corny and say, “Riding on the white horse,” but we can save people from foreclosure. We can save people from having their families out on the streets, going from living in a beautiful house into a little apartment or whatever it may be that would be a detriment to their lives. We can help them work through it so they don’t have to go through that.

What made you dive into the note space? How did that work out for you, Patrick? How would that come about?

Some people in the space know the story of me already but I’m Desi’s son-in-law. In essence, I’ve got a chance to hang out with Desi a lot, whether I liked it or not. It has been a long time since that was gone down but we took a liking to one another. This is what I tell people, Scott. Don’t compare your Chapter 1 or your Chapter 5 to someone else’s chapter. You have heard this before. When somebody climbs into the note space, it seems like it’s such a small world that there’s a bump in the system. A new person came in and just because somebody doesn’t have 12 or 15 years of experience in the note space, it doesn’t mean they can’t become very good at testing and notes quickly depending on their background.

What I tell people is this. I’m like, “I have 25 years of sales coaching. I have years and years of public speaking. I have already raised millions of dollars for companies.” I bring all this experience to the plate and then someone taught me about note investing, the intricacies of notes and how it works. I can take off and become me with notes. Whether you have been doing notes for 1.5, 3 or 10 years, we have to look up to the people that have been in this space ten years because guess what, Scott, that’s who we learned from. You, Eddie Speed, Donna Bauer, all these great people in the business, a lot of us wouldn’t be in the space without these people, without you guys. Look up to them.

If you are new to space, you are growing and you are doing well, don’t get put down by the people that have been in this space looking down on you like, “Don’t tread on my territory.” We all should be working together. It’s such a small space still that we should all be learning to work together. We should learn how to collaborate because more deals can be made and we can all make money together versus thinking that we have any opposition to each other, all relationships and that’s just the fact.

I agree with that. That’s why we have coined the term over the last few years with the help of Joel Markovitz. The term is called coopetition. We are all competitive, all working towards adding to our bottom line. I’m a big believer there are s always more than enough to go around and cooperating, selling assets back and forth, working on deal flow, vendors to use, attorneys, all that stuff. That’s one of the things that I love. What I have tailored my business originally when I’ve got started was a book called What Would Google Do? When you think about how Google shared their platform, helping to create applications and people go to use their platform. I have always been a big advocate of that. “Here’s how you go find deals.” You don’t have to rely just on the person training you. “Here’s how you go raise capital.”

NCS 650 | Note Investing

Note Investing: Just because somebody doesn’t have 12 or 15 years of experience in the note space, it doesn’t mean they can’t become very good at testing notes quickly.

 

There are a lot of things that aren’t being taught in the industry regularly. I get very frustrated with that because it’s not that hard. Raising capital, it’s a number. It doesn’t have to be difficult. If the deal makes sense, jump in. It’s just a different type of asset class and there are plenty of ways to learn it. These days, especially with the use of social media and other things, banks will sell one-off deals, maybe not the big top 5 or 10 banks but a lot of banks are selling smaller tranches and smaller pools. You don’t need to have $2 million or $5 million in your bank account to go play.

You had done this, too. I know you have. When we look at it, we try to figure out what are all the ways people could make money in notes. We classify it and usually, people start off as a broker. If you can collect enough money to become an investor, then you buy a note and you get your feet wet there. If you buy notes, you get notes, understand notes and run out of money, then you need other people’s money. We call that a professional investor where you can help others invest in notes and work your portfolio that way. You then can become a dealer, where you are actually owning a large sum of notes in your portfolio and then helping facilitate purchasing and sales. Maybe buying by the case and selling by the bottle, that way buying the little tranches and then selling one-offs, you then go to a fund where you can try to graduate to be in the tippy-top of the business and have $20 million, $50 million, $100 million funds or whatever you want to do with it.

With all those avenues, anybody can get into notes. You don’t necessarily need to have your own money. You don’t need to have huge goals to be a fund manager. If somebody’s got $50,000 in an IRA or in 3%, what if they could get 8% or 10%? How would that change their retirement if they had twenty years left before they retire? Look at that compounding in an IRA and you can either end up with $100,000 or $700,000 in your bank account when you retire. What do you want? If notes can do that to change people’s lives, we are helping the homeowners, investors, friends and family. At the same time, we get to help ourselves. That’s what attracted me to notes, Scott because you don’t have to step on anybody to get what you want. You are helping others get what they want, therefore, getting what you want. That’s how it should be.

Of course, sometimes the borrowers aren’t going to play ball with you. You no pay, you no stay. You’ve got to take the rap because you don’t run a charity. We donate to charities but we aren’t running one and things like that. In the different years of experience, you’ve got a wealth of background and knowledge. What bit of advice would you give somebody out there who’s looking at the note investing side? Maybe they don’t have their own capital. We are not talking about brokers. A lot of people coming into this space, they’ve got some of their own funds and they were scared to start raising capital. You’ve raised millions of dollars for other investments and your note business. What bit of advice and counsel would you give somebody out there about raising capital for your note business?

First off, you want to be a professional first before you go and invite other people into the space. You’ve got to know what you are talking about. I digress from that a little bit. Where are you in your learning process? I’ve got lucky. Desi has many years of real estate investing experience, ran mortgage companies, flipped houses, owned 21 rental homes at a time and done all this stuff in his life. He got into notes years ago and he’s trained for all the best in the industry. I’m lucky. I’ve got to be tutored told by somebody that gave me many years of real estate investing knowledge, along with years of note investing knowledge and dumped it all on me on a one-on-one basis. I didn’t have to pay to have it done. I’ve got it for free, all that training. That’s luck.

I was able to advance my knowledge base. I’ve got ten years of note investing experience in a year every day with Desi Arnaz. I’ve got lucky there. Not everybody has that unfair advantage. First of all, digressing back to how long you have been in the space doesn’t really matter but how much have you learned. Whether it be by book and study, whether it be by other people’s mistakes because you can learn from other people’s mistakes and not repeat that or your own experiences. Have you wrapped your mind around all that it takes to be a good note investor yourself? In that case, then you could feel confident to go and tell other people about it.

If it changed your life and their life for the better. That’s just the fact. Your story becomes the pitch. You are not selling, you are telling. You are going to tell somebody your story. When I tell somebody my story of how I’ve got into note investing, everybody used to know me, knows that I used to work twelve-hour days, Monday through Saturday. I would be on my phone all day long because I had 25 and 30 sales representatives underneath me that I was the manager for and I had to create $1 million of sales a month for this company I worked for. There are a lot of pressure. I had a great job, a great life and I loved it but I didn’t have any time to spend the money that I was making. I was always at.

When I found notes, that’s my story. I tell them I had a great six-figure a year job that I was able to quit when I’ve got full-time in the note investing and now I’ve got time to take my family to Disney World.   Thank goodness my daughter is 22 months old now, so I get to spend time with my family. I get to play golf when I want to play golf. I don’t have to ask the boss’s permission. My story gets people into the note space. That’s how I attract capital. Maybe they want what you’ve got. Maybe they want free time. Maybe somebody wants to retire better or faster. Maybe somebody wants a yacht. It depends on what somebody else wants but that’s how you raise capital. That’s how you attract capital.

Can notes get someone else what they want? If you can answer that question and help them solve that issue and they get what they want, it’s easy to raise the capital. That’s pretty simple. How do you raise money? You start telling people your story about notes. Your story attracts people. It intrigues people. Trying to educate somebody on notes in a first conversation to see if they will give you $50,000 to do a note, you are done. Stop it. That’s the problem with a lot of amateur investors getting into the space, they don’t have a good mentor to show them what to do or how to act. Relax a bit. You can’t just go online and say notes and all of a sudden become successful.

I think getting a good mentor, having the knowledge base, having the comfort level and being able to share your story with other people, may want to get into notes because they want something different and better for their lives. That’s why. If somebody wants something different, better for their life and you can help facilitate that with note investing, it’s pretty simple to attract capital. “Is your heart in it for the right reason? Are you going out to get other people’s money because you think you want to get rich off other people’s money or are you going out because you want to help other people get rich?” That’s the question. “Are you inviting people into a gold mine or are you trying to sell somebody a used car? What approach do you have in the note space?” That’s a big deal.

I want to bring that up there because you said something along the way there that I think a lot of people get to see. You were working twelve hours a day, on the phone all the time. I can imagine the fun that was because I have been there. I have been down that road before when your phone is permanently attached where you have two phones you’ve got to answer to. It’s not a fun thing. You start discovering with Desi, what plan did you make? Did you say, “Let me work on starting to buy part-time to get to the point to replace my income here?” What planning did you put in place?

On the new year right here for us, a lot of people are thinking, “What am I going to do in 2021?” I’m a big proponent of planning. I’m sure you are, too. You’ve got to set a goal. You’ve got to put some things in place because failing to plan is planning to fail as they always say. What plans did you put in place? Talk a little about that. Talk about the transition. How many hours were you working on the part-time on the note business until you were able to go full-time, Patrick?

Most people think this is wild but if you see something good and you know it’s good and then you don’t jump in with both feet and commit, then that’s your fault. Shame on you. What I did is I had purchased a home in 2010 in San Diego at the bottom of a market and then it had some equity in that. To be honest with you, Scott, people wouldn’t believe this but I put my entire life on the line in the very beginning. I learned a little bit. I studied in Desi for about six months to understand it. I ended up doing my own house flip basically. I spent hands, knees, nails, did tile floors, replaced balconies and did all this stuff to up the value of my property, literally with a brand new newborn baby. I sold my house. I put 100% of the money in notes, so my butt was all in, my chips and my life. I moved down to a different community.

You learn quickly when you do that. When you’ve got that kind of skin in the game, you have to learn pretty fast. Not only was it a good thing because I sped up my education level but I had all my skin in the game and here my experience is already coming true because I bought 3, 4 notes. I’m already learning how to turn non-performers. I’m learning how to collect the cashflow from performers and the whole nine. I learned it all very quickly with my own money in the gate. People reading this will understand that I had to learn quickly. When that happens, you tend to learn and I went all in.

When was I able to quit my job? It’s not because I bought 3 or 4 notes with my money and I’m churning my capital, that does not afford me, my lifestyle or the monthly income that I need. I was able to channel my skills with a good mentor. Let me just set that straight. With a good mentor and good ethical coaching, which is number one, I was able to use my talents from the past. My public speaking skills, my presentation skills, my closing skills, dealing with investors, knowing how to ask for money and the order, understanding IRAs and 401(k)s, understanding private placements and how investments work, I had all of that prior.

It was a simple transition for me to see that I could create enough of a business with notes with Desi, and we could create a little bit of a business together where I could at least supplement my income from the sales management job, at least where I didn’t have to go to that office or work twelve hours a day. That had to do with starting to attract other people’s money. When I put my money in, I had some quick successes. Some people have gotten in the note space and their first couple of notes had not been so great. Other people got in and had some home runs right away. I had a couple of deals that I put some money into that went well. Thank God. There’s my story. Once I go to anybody, you get excited. Sometimes you go see a great movie and you are excited, you tell people, “You’ve got to see that movie.”

Here’s my livelihood, I invested and went all in and trusted in these notes when I’m a new guy and I had a couple of wins. It cured my nervousness about notes. It made me super ultra-confident. I understood how to do that. I have been through the process. Of course, what do I do? I go to my friends and family, sisters, moms, uncles, everybody. I’m like, “Uncle John, you are not going to believe this.” I wasn’t trying to sell anybody any of those. I was excited to tell my story and that I had found notes and it was working. My nervousness went away and I’m like, “It’s working. Thank God. I believe in it now.”

I had that experience level where I have been coached like crazy and knew all the intricacies, so I was able to tell my story. When you start telling that story to people that are making 2.5% in an IRA who don’t even know where it’s invested, those people go, “Could I use my IRA money to do something like that?” “Yes, you can.” “Can you show me how to do that?” “Yes, I can. Let me show you.” It came from that piece of me to go out and tell other people that they could change their lives financially. For me, I wasn’t looking for anything. I knew I will be a sales manager, make $10,000 or $15,000 a month and live just a fine life here in San Diego. Drive a BMW if I want. The money is not the big deal. The money comes. Money is money.

Seeing a bunch of people shapes their lives financially because you brought them something awesome is way cooler than any paycheck you can get. When I had that attitude and I started spreading the word, that’s how I started attracting investors and investor partners. It’s all friends and family first in the beginning. Once you start to grow and you are good at it and people start to look up to you as a good coach, maybe you earn your wings there and you get those testimonials, then you have people that are finding you. People are finding Desi and me now organically online, wherever we speak at like Noteworthy, YouTube channel or whatever. It just grows. All of a sudden, now you have people that are not your friends and family and not in your crew, strangers that are reaching out to you. Can you help me change my life?

Coming back to the question I asked you though. I get the journey but our readers are going to be curious when you decided how long was it until you left your full-time job?

A year.

There we go. That’s what I’m trying to get at because a lot of people hate what they do out there right now. They get into investing when there are notes or fix and flips, stuff like that. I tell people like, “It is not a get rich quick.” We all know that. You have mentioned that before, it takes time. It takes skill, planning, time out there and working the numbers backward. If you’ve got $10,000 a month to replace your income, what’s the average payment on a note and dividing that backward to figure out how many notes you’ve got to buy?

NCS 650 | Note Investing

Note Investing: With notes investing, you don’t have to step on anybody to get what you want. You’re helping others get what they want, therefore getting what you want.

 

If you don’t have the capital yourself, you do great. If you don’t, then you’ve got to do like you just said, got to get the story out. What’s your bit of advice out there and counsel? I love what you are doing online, sharing your story, talking about note investing and the value of it. There are a lot of people that are scared to share their stories. They were scared to get in front of the camera. Whether we are in notes, fix and flips or property, we are not really in the real estate business these days. We are more so in the media and the marketing business a lot of times. I would be willing to bet you agree with that because embracing it has helped you raise capital, close more deals and make a lot more income to help a lot more people. Right, Patrick?

Yeah. If no one knows who you are or what you do, how are you going to help anyone? That’s the facts. There are ways around it these days. Here’s what I hope people understand about the point I’m making about not comparing. I don’t have compare-itis. Don’t compare yourself to other people. You are who you are. If you are not good at camera, don’t get on camera. You are going to mess it up, not look good or whatever. It’s true. I hate to be harsh. Some people are not cut out to be on camera. Some people never will have the comfort level to get on camera. That’s fine. Can they do a voiceover and have somebody do a doodle drawing and it explains what they are going over, so people get it? You don’t have to be on camera. There are ways around stuff.

Here’s the bottom line. As I told people if you were a hockey player your whole life growing up and you sat down next to a bar next to this guy and you said, “I know nothing about hockey. Can you inform me a little bit about it?” This guy has been playing hockey his whole life since he was a kid. He’s going to have so much comfort level talking about hockey because he’s so experienced. He knows what he’s talking about that he’s going to talk your ear off. Any question you ask about hockey, he’s going to have the answer. It’s easy. It’s natural. You have to get your education and comfort level with note investing to that point first before you go try to talk about it. Once you have your comfort level and education level to a certain point, then you can talk to anybody about it.

I’m going to argue with you on this one. I don’t believe you need to have 10 or 2 years of experience to talk about what you are doing. With what you said, you’ve got to get a bit of comfort in the deal that you are working out. If you worked way to be an expert on everything, the A to Z aspect of it, you will never get there. The most amount of growth we have as entrepreneurs is getting outside of our comfort zone. One of the biggest things I tell people these days is it’s so much easier for video or email. A lot of people won’t do the simple things they need to do. Ninety-five percent of people would like to be educated but they are not going to pull the trigger. I think 5% will do. I’m a big believer of the 5% that are doers are the ones that get outside their comfort zone.

You’ve got sales experience and years of stuff but a lot of people don’t have that. We have seen it. If you just get out and share your journey, whether it’s a camera selfie that you are doing, a camera shake and bad audio. I look back to some of the first videos that I did years ago and I think that’s the biggest thing. You become across as more believable versus having such a polished video or a polished image because you are just pure. You are sharing your story. You are getting the word out there and you have to embrace the suck.

We all suck. It’s okay. You are your own worst critic. I don’t care. No one gives a crap if your hair is perfect or anything else. Look at me. Nothing is perfect. I just put up this little decorative wall before we’ve got the recording and I have my square fell off. I said, “They are pro. Pro stuff here.” You will attract your tribe with your story. End of story. That’s the fact. There are going to be a ton of people that would rather work with Desi if anybody knows Desi. He looks and talks differently. He has a different demeanor. There are a whole lot of people that when they meet both Desi and I together would rather work with Desi 100%. There are other people when they meet us, would rather work with me 100%. It’s they gravitate towards you. We are not worried about the haters. We are going to attract a lot of them if we are out there doing the right thing. We want to put our attention on the people that are in our tribe and like your vibe. Not to be corny but that’s the truth.

With social media being like these days, I love what you are doing, the videos, the flip charts and breaking down the notes stuff online. That’s why I reached out to you to have you on here because I think there are not enough people doing that these days. There are not enough people sharing the journey and educating people via Facebook Live, YouTube videos or podcasts out there that need to be out there. We have such a growing market, whether you are buying onesie-twosie or you are buying 10 or 20 at a time, I believe it’s up to us note investors to change what happens. A lot of lemonade had a lot of lemons. What’s your thought on that, Patrick?

Of course, this is the time. As we said, the space is still small. There’s room for people to grow. There are going to be plenty of more inventory as we know hitting the market. Understanding financial intelligence is what we are teaching people on a big scale. That’s the key and notes just happened to be a great place to use that financial intelligence. It is what we are teaching you. We are just teaching people one of the banks’ oldest games in the book, which is long-term amortized loans that are collateralized by actual physical real estate. This is great. It’s financial intelligence we are trying to spread. If people can get out of the 9:00 to 5:00 or 9:00 to 10:00 as I did, if you can get out of debt or a broke mindset, there are all these different things. It depends on who you are and what you want to change in your life.

Notes can do it for you. It’s just an investment vehicle that’s spectacular. That’s all. People now are going off on Bitcoin. It is hitting all new time highs and this and that. I’m going, “Go, go, go,” and I have no money in it. I don’t have any Bitcoins. It’s funny that I’m rooting it like it’s a football team. I have no money in the game and I’m not on the field playing the football game but I go, “Go, Chargers or Go, Bitcoin.” It’s crazy if Bitcoin took a dump and people put a bunch of money in there. That’s the crazy part. Everybody likes to smile and ride the highs of stuff like people rode the real estate market in 2005, smile and ride the highs. If you are not hedging yourself against the lows, if you are not protecting your capital against downturns in real estate, Bitcoin or whatever market, notes can do that.

That’s solely the truth and I agree with that. Unfortunately, we live in such a financially uneducated society that people don’t know the opportunities available to them without researching and spending time, getting to know the ins and outs of that specific asset class, Bitcoin, notes, whatever it might be. One of the beautiful things that I love what you are doing is sharing that knowledge regularly, sharing it with students, with investors and helping make America great one defaulted borrower at a time.

Somebody told me a long time ago and I always take it to heart. I was a young kid and I was fascinated by the wealth that this person had. They had a bunch of Ducati’s and race boats. I was like, “This guy has got a lot of wealth.” I said, “I want to be like you someday.” I was a young teenager. He just looked at me and said, “Kid, when you want to be successful, you will be.” The lesson out there to everybody is if you want to understand notes, do it, get off your butt, find a mentor, start reading books, do whatever, contact a guy like me on the telephone, ask questions. There are people like us willing to help you try to change your life. Are you willing to get off your butt and put in the work, learn something new, step outside your comfort zone, be brave and change your life for the better? If you are willing to do all that, there are guys like us that will help you.

We are here to help out because it’s truly a win-win. We can’t buy it all, ladies and gentlemen. We need others to go out there. You have mentioned it before Sam’s model. We would like to buy in bulk. If you want to buy ones off, that’s great. You can buy your ones off from us and go from there. Patrick, I want to thank you so much for coming on the show, sharing your insight and your wealth of knowledge. What’s the best way for people to connect with you for those that are interested?

NCS 650 | Note Investing

Note Investing: Are you going out to get other people’s money because you think you want to get rich off other people’s money or are you going out because you want to help other people get rich?

 

My website is TheNoteMentor.com. You can go there and schedule an appointment with me if you would like to talk if you have any questions or anything like that. There’s a little calendar link and you can schedule a time in my calendar to speak. We have our coaching group too, Scott. You know that we do that but if anybody looks at our coaching group, it’s on my website. Here’s the key to what I want to be able to get. There are people like us willing to help you. Notes have changed some of our lives for the better. That’s our real story. Some of us have been in it longer than others. Some of us have more experience than others. The bottom line is if you want to get good at this, you attach yourself to a good ethical mentor. You learn as much as you possibly can, as quick as you possibly can, and you change your life for the better. That’s just it. You are welcome to reach out to me if anybody has any questions about note investing, I will help you with whatever you need.

Ladies and gentlemen, we are going to wrap it up for this episode of the Note Closers Show. Go out. Take some action. Learn as best you can. Follow in the footsteps of people that have gone down that path in front of you. They are willing to share their counsel, their lessons and their lumps. You learn more from pulling that trigger in that first deal than you will do anything else. We will see you at the top.

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About Patrick Franz

Patrick has an extensive 20 to year background as an entrepreneur. He has raised millions of dollars in venture capital for several different deals. He is an accomplished inventor Mentor public speaker and Investor. Patrick focused all of His attention on note investing 2 1/2 years ago and has already amassed a healthy portfolio.

With his extensive coaching and training background, Patrick and his partner founded the millionaire maker coaching group and now teach others the amazing power of note investing. Patrick feels responsible to pass down the information that allowed him to become financially free.

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