EP NNA 102 – Cure The Cancer In The American Financial System By Becoming A Private Bank

NNA 102 | American Financial System

Millions of Americans are getting robbed and losing money daily, and they don’t even know it. In this episode of Note Night in America, Scott breaks down the real cancer in the American financial system and why you, as an investor, hold the cure for 32 million Americans. You, as an investor, can offer new investors 8-12 times what a bank offers for savings rates. There are a lot of opportunities to be seized in the down economy, and it’s up to you to help others open their eyes to this truth as well. Tune in to learn and find out how you fill your own cup while helping others do the same.

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Cure The Cancer In The American Financial System By Becoming A Private Bank

I’m glad to have each and every one of you join us from all across the country. We’ve got a lot to cover. This might be one of those episodes that change some of your lives. I don’t say that just to say it. I have coaches myself besides being a coach for many people, meaning for some of you guys out there as well. We’ve spent five days going through some great stuff with one of our business coaches doing a business mastery event. It was worth every penny I paid because I had probably the epiphany of epiphanies.

The ideas popped up and you’re like, “I am such a freaking idiot. Why didn’t I think of this sooner?” Have you had those moments where you’re like, “Why didn’t I think of that sooner?” You go from there. That’s why you want to surround yourself with like-minded. Also, it’s good to get outside the box and be fresh from a lot of people. A lot of times, we feed into our blindness. We get so used to doing the same thing. Sometimes it’s good to have an outside-of-the-box view.

This was one of those. I am so excited and pumped up for what 2022 holds. Unlike many people, I’ve been very melancholy, “Woe is me, downers.” You’re going to love what we will talk about here. There’s great stuff for everybody. We’ve got some good stuff. Jim Myers asked me a question here, “Have you ever done a class and created your notes? When I asked you a while back, you replied that you thought it was a good idea. I’ve not seen any mention of it again.”

I have not mentioned it again. It is a good idea. I need to get around to doing it. We had other things that we had been working on. You haven’t missed it. I guarantee that when I do, you’re the first person I’ll call. We’re going to be putting together something like that here over the next couple of months. We’re going to do a little bit more of that at Note Camp in the middle of the year. For those that are interested, Note Camp is our major convention. You can buy an extra early bird ticket at NoteCamp.live.

I’m going to bring in some folks to talk and call a few of my colleagues out there. I used to create a ton of notes back when I first got started in the note business. From 2004 to 2008, we did a lot of owner-finance and created and sold them at the closing table. It’s different now. We’re buying owner-financed notes. We will look at them and make offers on stuff like that. We will probably do something like that. We might even do a VIP day or weekend and roll that as an option for some folks if they want to come and spend a couple of days here and knock it all out in more than one way.

Let’s get to the nuts and bolts or the meat and potatoes. Let’s get you feeding your note brains out there. I’m glad to have you all out here. If this is your first time, I want to give a big shout-out to those celebrating MLK Day. We could use Martin Luther King Jr. in our society. We had the day off great. It’s a bit of remembrance. I have a dream. He had a dream. We all have a dream. That plays in a little bit. We will be sharing it with you later. Hopefully, you’ve enjoyed celebrating. Keep that in mind.

It’s an interesting world we live in. We could use more people with his mindset and dreams. We still live in the greatest country in the world. We still have the ability and the option to chase our dream and focus on everything we want to accomplish. It’s just that sometimes it has gotten a little ugly out there. Segregation is the ugliest but we have a different type of segregation here in the United States these days. It’s the haves and have-nots or the educators versus the uneducated. There’s an opportunity for us investors to go out and do a lot of good. In this episode, we will see what I mean by that.

If this is your first time at the show, we have been doing this for a while. We started doing them back in 2010. Every Monday night, we do at least 35 to 40 of these per year, depending on the schedule. I highly encourage you to check out the show. We released Episode 100. There are a couple of years missing but I’m not going back to do those. The 100th episode went live. All our videos are on our YouTube channel, WeCloseNotes.tv. Make sure you go there and subscribe, so you stay up to date.

Besides our YouTube, you will also have access to our different stuff on the podcast. Our big one is The Note Closers Show Podcast. I’m excited about some of the things we’re doing new with that. We will talk about that and the Note Camp LIVE podcast. We’ve got 2020 and 2021 episodes of that being released. We’re excited about that. I believe the 2021 episodes are released. Check it out and subscribe. If you like it, leave a five-star review.

We’re doing something cool. We are starting to crank up some more content here on The Note Closers Show Podcast. That’s the 50,000-megawatt blowtorch that we host. There are 688 episodes out there. I want to hit it hard to hit close to 800 to 900 by the time 2022 is over. We’re going to be going live almost daily at 11:00 AM Central Standard Time. That’s noon on the East Coast and 9:00 Pacific. I would prefer it if you go watch it on either our Facebook page or our YouTube channel, WeCloseNotes.tv.

We will also be posting these livestreams across different things on Facebook, LinkedIn, Twitter, and even Twitch. I’m excited. Most of these episodes are going to be solo episodes of content. They will be anywhere from 30 minutes to 1 hour. There are 688 episodes. We keep cranking them out. I want to keep delivering great content for you always. Check it out. Listen to anywhere that you listen to podcasts. Those are some different ways. If you’re not a podcast listener, you can still watch, listen, and catch a live video.

NNA 102 | American Financial System

American Financial System: People are struggling and trying to make enough to barely get by. We have seen poverty levels increasing numbers across the board.


Maybe you’ve seen an email that went out. We are running a very special sale for our Note Weekend class. Our Saturday class will run Cliff Notes on Note Investing. I’ve revamped the PowerPoint and some of the things that go along with it. There’s going to be a lot of new content and fresh stuff. We will run from 9:00 to 3:00. It might be a little bit later or sooner. I expect to be running at least until 3:00 because we’ve got a large class.

If you’re not familiar with that, we analyze the basics of how to find, fund and flip notes. You’re going to learn everything about note investing in one day, let alone three days, but it’s a great starter to dip your toe in the water and see if you like note investing. There are new content and resources. What if I could show you some of the things our guests will share? There’s no cost for the webinar. It’s free to go to this show. This has been 2 to 3 months in the making.

These guys are doing amazing things. I was blown away by what they were doing. I wanted to bring them and share them with you here first. As I understand, it will be their first webinar out. They have been doing this product for a while. They reached out to me to help market it. I was so blown away. They’ve got a great thing that they’re doing in showing how to find distressed commercial real estate opportunities in every market by classification.

If I wanted to look at every distressed multifamily apartment complex in the country, I could do it in a few minutes. It will share with me the true ownership and lender contact information. It’s the asset manager handling that asset class or that asset for the lender. There’s also how to find value-add, off-market deals, and real-time valuations of what the banks are classifying the assets at. This is a cool sneak peek behind-the-scenes type of thing for you. They will also talk about the fifteen hottest markets for investors.

If you’re not signed up for it, do so. Even if you aren’t in commercial notes or commercial real estate, you can learn a lot from what we will talk about. Check it out. All of this stuff has been covered by our special guest. You don’t know him. I never had him on here before. He had never appeared before on a show yet with me. I’m jacked up about this. Ladies and gentlemen, you’re going to learn a lot. RSVP at NoteNightInAmerica.com. If you’re registered for one, you can register for them all. You don’t have to register every time. I’m pretty stoked about that. Check it out. Don’t miss it. Mark your calendars now.

What Is Your Why?

Let’s get into filling your cup up. The biggest thing that we need to focus on as individuals and investors are filling your cup up. Before we get into filling your cup up, what are you here for? We’ve all got different reasons what your why is to continue to show up, take classes, invest, go out and find the best. What’s your why? Is it to make more money? What’s your number one why?

Make more money and retire yourself, your spouse, your parents, and your family. You’re not accomplishing your goals and dreams of where you are currently, so you’re looking to accomplish more or leave your job. The Great Resignation is going to happen to you, whether it’s you or forced upon you. Maybe you want to pay for your kid’s education, donate to a charity, and start a cause or something like that. All in all, all of you are here to live a better life.

I would love to hear what are your whys here. What’s the biggest thing? Roberta says, “Leave my job.” Richard wants to make more money. Thank you for sharing. RJ is looking to go full-time into the note business. Do something more that you love. They’re all great, whatever they might be. We’re all here for a reason because we all want to do bigger and better things. That’s why they call us crazy. We’re the 1% crazy people out there.

Most of our family probably thinks we’re a little crazy. My family probably thinks I’m a little crazy. That’s a picture of me growing up, my sister, my brother, mom and dad. Dad has passed on for years. Mom is still around doing some other things. We all want to do things for our family, whether you have kids, family, fur babies or extended family. I like to consider that I’m pretty lucky. Not only do I have great friends and family but all of you are part of the note family. I’m glad to sit down, drink a beer, and have a great time with you wherever we are.

We’re all here for different reasons. There are no wrong reasons. Whatever it might be, I hope you are able to share that, see that, and post it on a daily basis. One of the most important things is being able to write down what you want to accomplish and why you’re doing it. It’s having to wake up every morning and make some things happen. The biggest question is this. If we’re the 1% crazy, does that make the 99% out there difficult and struggling, the non-crazy?

We would have to agree that there are a lot of other people struggling out there. People are struggling and trying to make enough to barely get by. We have seen poverty levels increasing numbers across the board. Who else here is worried about your future? Somebody was talking that we have never seen the United States more primed for a civil war, which is concerning. If you start listening and watching the news, there’s nothing but bad news.

NNA 102 | American Financial System

American Financial System: There’s always more money made in a down economy versus an up economy. We are in a down economy with inflation, stress, and stuff like that. There are a lot of opportunities that can help out people.


Who’s struggling to pay for health insurance, struggling with their health, and paying for food at the end of the day if you’ve got a big family? A lot of people struggle to put food on the table at night. We have come out of something with the foreclosure and eviction. People are still nervous out there about paying their mortgage and rent. We see increases in default across there. They’re paying to survive. I found that a friend of mine was living homeless for two years out of his car. I did not know that. Luckily, he didn’t have a family to take care of, but his family wasn’t there to help him out.

If you’ve got family, it’s all about what we can do to make life better and take care of our family. You have to realize too, that everybody and their dog and their cat are struggling at some point, whether it’s mentally. Their mental states are not there. We all know it has been stressful. If you listen to the craziness of the world, it’s mentally stressful. Physically for our health, anytime you can roll out of bed and you’re 6 feet above the ground.

I heard a comment that Paul Walker made. He goes, “Every night, you have to be happy that you’re going to bed because there are hundreds of thousands of people that wish they could be in your situation to breathe, stand, walk, live and smile.” Monetarily, people struggle with job loss, wanting to make enough, and worrying about retirement. There are a lot of people out there that are struggling. You have to count yourself blessed.

First and foremost, you have to be thankful for what you have. Second, you have to realize that there are opportunities not only to help yourself but also to help a lot of other people out there. Here’s one of the best shows I’ve ever seen. I’m still a fan of this. I haven’t watched it in a while but when I was growing up, I loved watching the show, Quantum Leap. Scott Bakula was a scientist. He would try to go back in time and fix what went wrong. Who wishes we didn’t have an hourglass to be able to go back, fix things, and take advantage of missed opportunities?

Do You Have A “Full” Cup?

One of the biggest opportunities we had was in 2008, 2009 and 2010. I wish I could go back and buy more. There are a few mistakes I’ve made along the way that I wish I could have gone and fixed. You have to take what you’ve learned from your past and learn from what’s going on, what opportunities you’ve missed along the way, what actions you took, or what actions you didn’t take to make the most of what’s coming up, and how to take advantage. There’s always more money made in a down economy versus an up economy.

We are in a down economy with inflation, stress and stuff like that. There are a lot of opportunities that can help out people. I always like to ask this question when I think about that and talk about opportunities. What if you had the cure? What if you had the cure for cancer? Would you do something about it? What if you had the cure for COVID? You would be making a ton of money with a true cure, not a vaccine. What if you had a cure for homelessness, an answer or a solution for it? What if you could solve the issues with retirement or Social Security stuff, if you have a true answer for that?

There are people that have said they have come out with answers but there has been a lot of non-stuff. If you look at what we do as a society, there are a lot of things that we could cure if we would put our resources and fill our cups first. We could cure ignorance. Wouldn’t that be a joyous day? Unfortunately, there is no cure for stupidity. Common sense is lacking in a lot of cases, but you have to take care of yourself. The question is this. What would you do? Would you share the cure and solve it?

I found something as I was doing this. I found that if you have the cure, cancer survives a lot of times. It eats itself. It’s pretty damn ugly. It eats itself to survive in a lot of cases. I see that happening in a lot of cases. We’re not going to politics and religion but we’re seeing that in the real estate world. You see a lot of people out there that aren’t doing anything and have a cancerous mindset. They’re trying to eat others or take others down that are doing stuff and trying to accomplish big things.

If you’re a brand new investor, that’s always one of the biggest mind blocks. I talk with people. People are scared to share what they’re doing because they’re afraid of the feedback, cancel culture and the friends and family that say, “You can’t do that. You’re not big enough.” If you had the cure, would you do something? Would you share it with people? Would you be like the pharma boy here? “I’ve got a cure but I’m going to take it from $5 a pill to $700 a pill.”

I don’t think any of you that are on here would do that. Unfortunately, we have seen a lot of opportunities out there for people grabbing that and trying to hoard it all for themselves. That’s the biggest opportunity. You have to realize. You have to make your opportunity, cut cancer out, and take action because you all do have a cure, opportunity, strength, wisdom, and drive inside of you. You just have to take action if you want to. You don’t have to be the smartest person in the tool shed and be the most good-looking.

Jim Meyers, you’re awesome, or others out there. You don’t have to have any money to solve the cure for cancer. That sounds stupid and ignorant but it isn’t with what I’m going to share with you. I always like to ask this too. This comes from the John Goodman quote in The Gambler with Mark Walberg a few years back. This quote was once originally shared by my mentor, Greg Reid. He talked about, “Remember to fill your cup because you can’t pour from an empty cup. Fill your cup first and solve the world with your overflow.”

NNA 102 | American Financial System

American Financial System: Remember to fill your cup because you can’t pour from an empty cup. Fill your cup first and solve the world with your overflow.


Unfortunately, a lot of us don’t fill our cups. We go out and try to fill everybody else’s cup, and take the last for us. You can’t do that. My mom, God bless her, is a wonderful woman. She has always been helping to fill their cups but other times, she has not filled her cup first when she should have. We have all been guilty of filling others’ cups versus focusing on filling ours. You’re run down. You’re worn out. You’re trying to be everybody else when you need to be 100% to yourself first.

John Goodman says, “If you have enough money without working, you own your house, and you’ve got a couple of millions in the bank, that’s f-you money. Nobody can take that away from you.” I always like to ask this. How many of you have enough money without working? If you stopped working, you would be fine. Your investments would pay long-term. The answer to that is probably none of us. If we stopped working completely, we would survive for a while and do well but we don’t have a true full cup.

Without saying anything, how many of you have empty cups? How many of you are struggling to get by? You’re busy filling everybody else’s cup but not filling yours first. Part of that is a lot of us struggle with fears. We want to try to help others and support others because if we had to fill ours first, that means we need to take a leadership position in our family and our life and take the point of filling our cup. Nobody is going to fill your cup for you. You have to fill it for yourself.

The question is this. What are you going to do about that? What’s the fear that’s holding you back? Is it the lack of investment capital? “I don’t have any money in the bank. I can’t do this. I have no experience. I have a lack of confidence, which is what a lot of people have. I don’t believe in myself. I have to go prove the concept.” That’s a lack of confidence. I want you to fill those cups up because you are in an environment. You do have the opportunity. You do have the resources. You do have the support staff and the support of vendors and people out there to help you get over that lack of investment capital.

That’s the number one question we get. I’m going to show you why you don’t need to be worried about that lack of experience. If you are taking classes in real estate investing, you’re 95% more educated than most individuals out there. We will talk about why. The lack of confidence stops you from taking action, rinse and repeating, getting over it, doing it, and stepping out there. That first step or first deal is always the hardest. We will talk about some opportunities for you to take. Let’s fill those cups up and go through some things.

How Banks Are Robbing Americans

When I think about filling your cup up, I have to look at some things and opportunities up there. Honestly, every day I talk to somebody who’s having a tough time when it comes to raising capital, investing, and finding deals. The news is doing your job for you, “Scott, you said that you stopped watching the news a while back.” I still pay attention and check out USA Today and CNN.com. I check back and forth Fox News to add some spice in there. The news is doing your job as investors for you.

What all the news is good for is spreading fear. The news organizations are spreading fear and negativity every day, “Woe is us. How bad is it? We’re facing inflation and all this stuff. A recession is on the way.” If you’re an investor, it’s doing its job for you. You hear nothing about COVID infection rates and COVID deaths. Inflation is at a record high for the quarter. There’s a huge job loss. There are foreclosures and evictions. There are overpriced housing markets. Rent rates are going up.

It goes on and on with the negativity out there. You can combat that negativity with positivity. Each and everyone on here, you have the opportunity to combat the negative with the positive because there are a lot of people out there that don’t have any hope and faith in their fellow man, the government, and stuff like that. I get that. I don’t trust the government but I have faith and hope in myself and my fellow man for doing other things out there.

You look at some of the news headlines, “Inflation emerging as a top economic challenge in 2022. Consumer demand, supply chain troubles, and the spread of the Omicron variant threaten to prolong sharply rising prices into the New Year.” How do you combat rising prices? You go make more money or have higher returns on your investments. Do you think the big banks and all the institutions are worried out there? Do you think that they’re worried about what’s going on in the world?

The answer to that is a resounding hell no. They’re not because when you look at all the things that came out, there are record earnings for Q4 2021. There’s Bank of America Corp’s record earnings from Q2 of 2021 to 2022. They made unprecedented profits. JPMorgan Chase and all of Wall Street expect a surge in a bumper year and huge payouts and profits. If it’s in such a bad timeframe with job loss and stuff like that, how the hell are banks making all this profit?

What it comes down to are the savings. They are robbing us alive. Americans are saving more. We’re giving banks interest-only free loans. They’re taking that money and making record profits with it. Why can’t you do the same thing? You can do the same thing. The banks are robbing Americans, ladies and gentlemen. If you don’t know this, wake up to that real fast. Let’s do it in some simple numbers. You think about the record amount of people saving money.

NNA 102 | American Financial System

American Financial System: Ignorance is costing people thousands of dollars per year. Unfortunately, if you’re not talking about this, you’re part of the cause.


These days, we have had record savings that we haven’t had ever before in a long amount of time. We still have more debt than a lot of other things, but more savings and money go to the bank. People want to save for rainy days. We all know the banks aren’t giving anything to people. As an ex-banker, I can say this and give you little insights and things. If you look at savings accounts, people are saving more than ever before.

I googled the best savings account out there. If I had $50,000 to put into an account here, Marcus of Goldman Sachs would give me 0.50%. In a year on a $50,000 investment, I would make 0.50% or $250 on that savings account. I’m going to go rich fast there. Let’s take it up. That’s a high yield. With $50,000 for a year and 0.50%, I would make $250. Isn’t that exciting? Let’s talk about certificates of disappointment.

When I was a banker at JPMorgan Chase and one of the top bankers in all of the state of Texas here, we had CD rates at 4%, 4.8%, 4.25%, and 4.5%. People would move hundreds of thousands of dollars across the street for a 1.8% bump. When I went to Wells Fargo and pulled up their savings rates and CD rates, if we set $50,000 for a one-year CD, they would give you 1/10th of 1%. If you had a relationship with them, they would double that to 2/100th. That’s 0.01% or 0.02%. That’s a certificate of disappointment.

I googled what’s the best CDs out there you can find. Bank rates showed us a whopping 0.7% or 7/10th of 1% for a fourteen-month CD. Most of it was 0.55%. It’s less than half of 1%. That’s the best rate out there. Most of your banks like Chase, Wells Fargo, and Citibank have 1/10th or 0.01%. That’s crazy. The fees eat up your stuff. We already have negative inflation and negative interest rates when you look at the amount that they’re paying on a savings account.

The monthly fees eat up your interest. You’re already losing money to them. It’s 0.7% for a fourteen-month CD on a $50,000 investment. That was the best rate that has popped up. Let’s compare this because unfortunately, America has been swindled and sold on this safe. Let’s put it in the bank and save it. I’m fired up. This is nothing new. The thing that you have to realize is you have to share this.

I hate to say this but even some of the most well-thought minds like Jim Cramer, who’s the big guy with the glasses and who talks about how paying off your mortgage and house is a good thing. I could get that in some cases but for most, it’s not a smart thing because your money is tied up there. If you take your friend or the next-door neighbor who has $50,000 sitting in a savings account making half of 1%, in one year, it will make $250 on their $50,000 savings.

Let’s put it in a CD making 0.7% and give them that high-yield one. That’s $350 in a year, not a month. If you had a note and they had $50,000, you could pay them 6%. If you pay them a 6% interest rate on a $50,000 investment, they will make $3,000 in a year. You would make some good money on that because hopefully, that note is paying you 12%. You’re also equally making $3,000 or more.

I want to put 6%. I may be to blame for this in some cases. A lot of us investors, unfortunately, have been looking, “Pay our investors 12%. It’s an easy slam dunk.” I would agree with that when you had a lot of spread, but as things have gotten tighter. I don’t say paying 12% anymore. I don’t even say paying 10%. If people aren’t going to go out and do it for themselves, 6% would be the highest that you want to pay them because there’s so much money out there. I’ll share with you why.

If you were shown this yourself and you have $50,000 sitting in a checking account or a savings account and you have been seeing it for a while, you lost $2,700 on average by letting that money sit there and make nothing. You figure out the monthly fees. Ignorance is costing people thousands of dollars per year. Unfortunately, if you’re not talking about this, you’re part of the cause.

Investors Have The Cure

If you’re not sharing with your audience, friends and families the different opportunities that are available out there or how they’re getting screwed, unfortunately, you have the cure for cancer but you’re not sharing it. It may hit hard. It is what it is. If you’re not sharing with your network and talking about this stuff, you’re part of the problem. We get so blinded sometimes because we see the trees. We’re surrounding ourselves with like-minded individuals.

Jim is an investor. RJ is an investor. I get that, but the mass majority of people don’t know the opportunities out there. A lot of us get so bogged down, “I can’t pay 12%. The deals are getting skinny.” There are still billions of dollars in debt, performing or non-performing, that are now reperforming notes. There are options for you to do that. If you offer somebody 6%, you’re offering them a minimum of 8 to 12 times what the best banks are paying. Think about that for a second.

NNA 102 | American Financial System

American Financial System: Banks are using the cheap money that we are giving them to make record profits.


If I could show you an investment deal that would pay you 8 to 12 times more than what your bank is paying you, would you be interested? Think about that. If I could show you something that would pay you 8 to 12 times better than the best bank deal and what your bank is paying you, would you be interested? What do you think the overwhelming answer to that is? It’s not, “No.” It’s, “Hell yeah. What do I need to do?” That’s the approach that you have to start taking. We all know it’s possible.

Larry Hoffman, a new note investor and previous real estate investor, took some time off and got kicked in the shins as many people out there did years ago. He raised over $100,000 at 6% interest with a couple of letters. Kudos to Larry. He signed his first contract for a note. His investors are going to be making 6%. Larry is going to be making the other side of 20% minus his interest.

This isn’t going to be an infinite rate of return because he’s arbitraging the funds and paying his investor a good rate. The investors were happy with that investor. Those investors were in a self-directed IRA account. He made an Equity Trust account. He was happy at 6% and wants to do more now that Larry has pulled the trigger. That’s rock and roll. You all can do this.

Banks are using the cheap money that we are giving them to make record profits. They are saying, “Record profits.” If that doesn’t sound like somebody is stealing from your wallet at night while you’re asleep, I don’t know what it is. If you think about that, if a bank is only going to pay you 1/10th of 1% and then they only go out and make 1%, that’s a 900% profit margin, not 0.9%. They’re only paying out 0.1% but they’re charging 18% on credit cards and 6% to 7% on car loans. Even money markets aren’t making 4%. They’re making 1%.

They would be glad to give you a mortgage at 3% because they’re borrowing money at 0.1% at the worst and making a 2,900% difference. This is why banks see record profits. We can get pissed off about it. I don’t know about you but when I was doing this, I felt nauseous. I almost threw up. I’m like, “Does this make you feel sick?” We all know the difference. If you’ve ever been to an investment club or things like that, this is not rocket science.

I’m not telling you they knew, but when you start looking at things and seeing the headlines, it makes you sick and irritated because you have the opportunity to do that. A lot of us are like, “I don’t have the money to do this.” If you don’t have the money, can you talk to people? Can you go out and find the money? Everybody’s got cancer. Ninety percent of America has cancer. I’m not talking about the actual disease. I’m talking about financial cancer that’s eating them alive. It’s up to us to do things.

Here’s another fact. This is another thing that blows my mind. These are quotes from several predominant owners, operators, and CEOs of several self-directed IRA companies that we’re familiar with. A self-directed IRA is great. You need to put it but here’s the big kicker. Thirty-three percent of any self-directed IRA custodian or trustee funds under management are sitting in zero interest-bearing accounts. Quest has $1.5 billion under management. They’ve got about $500 million making zero. They’re providing a vehicle. It’s up to the investors to do that.

I am not angry with Quest or Equity Trust. I am not mad because they’re providing legal. I’m angry at the people that took the time to open accounts and then didn’t do anything. They have cancer. You have the cure. You can put their money to work, making an above-average return than what they’re getting in a huge way. That’s one of the things. When people say, “I did a real estate deal.” How did that turn out for you? “I made 12%.” How long did it take you? “Three months.” What did you do with the rest? “Nothing.” Technically, you didn’t make 12%. You made 3% for the year.

When you start educating people on the rules, numbers, and how this stuff works, you will have people begging to invest with you. Most people are either too scared. They don’t think they have enough funds or they think they can’t find deals to make it happen, so they sit there. A confused mind says, “I’m not going to do that. I don’t understand it. I don’t think I’ve got enough money. I’m not smart enough. Doggone. People don’t like me.”

You are smart enough and good enough. Doggone. People will love you if you share with them opportunities for this. This isn’t going to be stuff that you do. There are ways to structure your deals where you’re not even taking ownership of these deals. You’re putting them in a vehicle, making your spread, moving on to the next investor, and helping them. You’ve helped somebody out along the way and made your cut, or you stay in the deal if you want to and do some big things.

Here’s the question I’m going to ask each and every one of you. What are you going to do about this knowledge? “I’m going to get up, go to work for the state, and do nothing.” You can continue to do that. We have all been guilty of wanting to do that, “I’ve got to get up. I’m going to do that.” I don’t know about you. I’m pretty fired up and pissed off because it can be done. People want to see this information. They want to take the blue pill or the red pill. They want to know what’s going on because they don’t think they have any other opportunities and options.

NNA 102 | American Financial System

American Financial System: He or she who has the gold makes the rules but gold is not in the money. The gold is in the actual deal flow.


When I was a banker, I had people that would move things over hundreds and thousands and millions of dollars. I had one investor. His name was John. He had $1.2 million sitting in CDs. There were twelve $100,000 CDs making 3.5%. He was happy. He had f-you money. He was fine with that. There are a lot of other people out there and maybe some people that read this that are struggling. If you’re too scared and you don’t know where to find it, that’s fine. Reach out to me. I’m glad to help.

How Do You Capitalize?

How do you capitalize on this? That’s what it’s all about. If you’re taking the knowledge we’re talking about, there’s nothing recycled. You should have a little bit of fire in your belly in looking at those numbers and realizing you have the opportunity and the cure. You need to walk like it and start talking to people to make things happen. You talk to people. That’s what you do. You start talking to people, sharing things, and networking. You send an email blast out to your database and do a video about it.

How do you capitalize as well? You find reperforming notes that are paying 6% to 15% return on investment. There are plenty of them out there. In five minutes, I found 35 notes like that. There’s stuff that has been on websites for a year. Reach out to people. There are so many opportunities out there. You go out, find those deals, target people out there making negative and say, “I can pay you 6 to 12 times what the bank is paying you. We’re going to do it for a short period, like a CD in 3 to 5 years. Would you be interested?”

You find deals that are paying 6% to 15%. If you use your money, by all means, use it. If somebody is willing to give you money at 4% to 6% because their money is making nothing, you’re giving the cure for cancer. It’s also helping you out. Your return on investment if somebody funds your deal is an infinite rate of return. There are ways to structure it. You can put yourself in between the numbers, either do a split or some difference in the principal.

They’re funding $60,000. I’ve got $50,000. I’m going to take $10,000 in profit and move on. I’m going to take a monthly split. There are all differences in what you want to do and how the deal is structured. There are so many opportunities out there that I’ve been blown away. It was an epiphany. I’m going to apologize. I’m sorry. I’ve thought about this and done other things. Something clicked on the opportunity because there are plenty of investors out there but as investors, we are a small minority out there.

Quit Wasting Your Time With Sharks

If you want to give people the cure to cancer, you’ve got to go out where people are willing to take it. You have to quit wasting your time with sharks. I joke about sharks because I’m a shark. I want to make 12% of my money. Who doesn’t want to make 12%? That’s great. That’s a shark but there are a lot of other non-sharks out there. A 12% return on investment is great if it’s hard money or you’re doing the deal yourself. If you’re not working through the deal yourself, you can also find a good 12% return or greater on low-hanging or distressed non-performing notes out there.

We’re buying one. We’re still going to see a good return on investment because we worked through it and worked their numbers and stuff like that. For lazy short-term money, you shouldn’t be making 12%. If you don’t have to do any work, the money is just sitting there, and you’re not going to do any of the work, servicing, find the deal, fund the deal, and do any of that marketing, you shouldn’t be making it.

You’ve got to quit worrying. I talked about going out and networking at real estate clubs, investment groups and arenas. I still believe that, but quit going to those investment clubs to raise capital because there are going to be other investors that want to make 12% or greater who aren’t going to do the work. They think they’re entitled to something. There’s nothing. It’s like they went to school to make $20 an hour but they have a $3 an hour work habit. If you’re going to do the work, you’re the big man.

He or she who has the gold makes the rules. The gold is not in the money. The gold is in the actual deal flow. Everybody is looking for deals to fund. Everybody is slicing and dicing. The news is scaring people, “There’s inflation. I’ve got to do something. If I put my money to work, I’m going to lose more of it.” They need to put it to work. They are doing all the work for you.

Target the Underserved

Start marketing deals and opportunities. Pull your head out of your large orifice and realize that this is a simple business of providing opportunities. You have to worry, “What if somebody is going to say something? Next.” The low-hanging funds are out there everywhere around you. You just got to share. Let’s talk about some of those numbers because I want to prove this to you. Hopefully, it’s like, “A-ha.”

When you look at American households, there are approximately 32.3 million households that have a net worth of $100,000 to $1 million that’s outside their house. They’re worth $100,000 to $1 million out there without their house. There are 32.3 million households worth more than $100,000. If we break that number down a little bit, let’s shrink it down a little bit to $100,000 and $500,000. It’s ten million-plus households.

NNA 102 | American Financial System

American Financial System: You have the opportunity to do a lot of good. You’ve got to get out, talk to people, and share what you have to offer because The Dude will provide if you will take action and make things happen.


That means there are approximately 22.3 million households with between $500,000 and $1 million of net worth. There are a lot of people out there. For those that are worth $1 million to $5 million, there are about 9.4 million households. I didn’t do anything about $5 million because it gets ridiculous on there. What you have to do is target the underserved. I’m not saying going after people below $100,000. Some of those might be your friends and families. That will be great deals for you. You would want us to give them a cure for cancer.

If your next-door neighbor invented Google, you would want it to take off. Hopefully, he told you to buy some shares and help out support it. That’s the same thing. There’s a variable shitload of people out there that need your help. We had 72 million people vote in the last elections. One-fifth of America falls into your market for you. You just got to share what you have going on with the underserved. Those that have $1 million of value are the ones being chased by all the big investment firms.

If you’re trying to land a whale and it’s your first time out, it’s not going to happen. You need to do some deals and knock some singles and doubles out. There are plenty of singles and doubles out there that you can make good money on because otherwise, just trying to raise capital and not doing any deals, you’re not making any money. Find the deals. I guarantee people are desperate enough. A lot of the wealthy out there are looking for 6% to 8% of money or less because their money is not making them anything. You need to go out and talk to more people.

Here’s the thing. Here’s another statistic. We have found from doing research that 67% of the self-directed IRAs have over $150,000 in them making zero. We have pulled lists for full IRA investors and those that have $150,000 or more. Right across the board, anywhere from 60% to 70%, depending on the market had more than $150,000. If you look at the fact that probably over half of those, if not more than half of those, are regular IRAs. It’s not a Quest or a trust account. They are probably in self-directed funds making zilch.

You have the opportunity to do a lot of good. You just got to get out, talk to people, and share what you have to offer because the dude will provide if you will take action and make things happen. I want to open it up for questions. That’s all I have for you. Go out, take some action, and share what you’re doing. We’ve got the class. It’s a great starting point. Most of you have been through that. We have our next three-day workshop. We’re excited about that.

If you did not pick up what I was putting down there, you’ve got a huge untapped market that needs help. You’ve got to share the little things. Go to your bank and say, “Can I get your CD rates? Can I see your CD rate sheet?” They will give it to you. They probably have it at the front door when you come in and gobble up all that goop, “Soylent Green is made out of people. Soylent Green is people.” I saw something. Remember the movie from 1978, Soylent Green with Charlton Heston.

The big banks are getting fat on people. They are the Soylent Green of 2022. What’s another concerning thing is Soylent Green was based in the year 2022. That gives me shivers. I don’t know about you. Go do something. You have to start marketing. You’ve got to figure out something. We have some great stuff that we’re focused on to help you take advantage of what the market is doing to help you better yourself, fill your cup, and fill others up with what flows out of your cup. You’ve got to take care of yourself first.

We have all been guilty of not taking care of ourselves first. It’s time to start doing that. It’s time that you make a stand and start sharing what you’ve got going on in the opportunities. Quit worrying about 12%. Go talk to more people. If it’s a good deal, you will find that one of the easiest ways is to put it in a performing note, find something like that, whether it’s new or seasoned, and arbitrage yourself in the middle.

“Why not offer interest-only like a CD, so you pay interest-only while you collect on amortizing, not just make sure the lender gets paid off?” That’s a great way too. Give them interest-only. It’s something that we will be spending more time talking about. Offer interest-only. We’re at that point. You want to make sure that whatever the amount is, it’s not paying you off faster. You want to make sure to have money there to pay off your investor back if it is interest-only. If it’s interest-only, you want to make sure you pay your investor back in 3 or 4 years.

Brian Levinson says, “You are 100% correct. We are lending our money to the bank for 1% or less.” Brian, thank you for commenting. Thank you for joining me. Hopefully, this was valuable. If you want to learn how to take that information and use it, sign up for our Note Weekend class. There’s 100% satisfaction. If you don’t like that and you want to do something more, check out our three-day class or sign up for our monthly membership at $97 a month. You can go to NoteUmbrella.com and get signed up there.

You get access to our Note Weekends, three-day workshops, special training, and some other stuff along the way out there for you. This spreads the cost of your education over the year. I would love for you to be a part of that. There’s a six-month minimum on the WCN Membership. You can’t sign up for a week and then be gone with it. You have to take advantage of the education. There’s also lots of stuff in there for you. Get signed up at NoteUmbrella.com and NoteWeekend.com.

Take advantage of the discount. That’s what we’re here for. I want to help you take your business to the next level. Thank you all for being here. Be safe out there. Guys and gals, you all have the cure. It’s all a matter of you sharing it. You have the knowledge. It’s like being a brain surgeon and then not ever working on a brain and operating. Don’t do that. Don’t continue to feed into that. Do something smart. Start sharing. Marketing has never been easier than it was before. Go out and take action. We look forward to seeing you at the top, everybody.


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