Thursday, January 14, 2021

Why will 2021 be a Banner Year for Mortgage Note Investors - Real Estate...


Eddie Speed's State of the Mortgage Note Industry. Why will 2021 be a banner year for Note Investors? This question will be answered in this episode of Noteschool with Eddie Speed and Brian Lauchner, as Eddie delivers the “State of the Mortgage Note Industry”. “We are taking out 2020 with a bang and we are entering 2021 with clarity and vision.” - Eddie Speed. What Eddie is excited to share with everyone today is this hopefully factual data (as Eddie would say) that could help everyone make some good business decisions. If you are interested in taking part in the notes business this coming year, watch this video and once again learn from Eddie Speed. Landlords are burning out. Tenants are behind on rent payments. Toilets are backing up. Uncover Why Savvy Investors Use Proven Mortgage Note Strategies for Massive Monthly Profits In Today’s Ever-Changing Market… Risk-Free!

Discover more about Note School and profiting without Tenants, Toilets and by taking our FREE one day class: https://new.noteschool.com/TV


Brian Lauchner (00:01):
Why will 2021 be a banner year for note investors?Stay tuned and let's find out together.

Brian Lauchner (00:17):
Well, welcome back to NoteSchoolTV. Once again, we are here on Wednesday at 11:00 AM, central time for you and I to connect and try to dig into some more content to make you a better note investor. If this information is valuable to you, I'd love for you to go ahead and like this video and subscribe to our channel. That would mean a lot to us as well, but probably more importantly, because this is a live show. What I'd really love for you to do is click that notification bell to notify you when we go live so that you can join us and participate in the conversations as we go through this, you can type in your comments and they'll appear live you're on the show. It allows for us to interact with you, get your questions answered immediately and kind of engage at a whole nother level. If you're brand new to notes, you're brand new to NoteSchool, and you're just trying to figure out, well, where do I go from here? Or even what is NoteSchool? I'd love to invite you to come join us at www.NoteSchool.com/Tv, to learn a little bit more about who we are and what we do. And this week we've got some really cool stuff that we're going to talk about before we get into it. Let's talk about the news.

Brian Lauchner (01:31):
Two things real quick in the news that I think are going to be really valuable is the first one out of CoreLogic says that us home prices hit a 14 year high in October. And so we're going to dig into this a little bit further, but just think about it. If home prices are at an all time, high prices are going up, up, up, up what comes next? Does it continue to do this for the next decade? I'm going to go ahead and guess. No, but let's we'll ask Eddie speed here in a minute and we'll see what he says. Something else that I found really fascinating as well is going to be the forbearance levels. There are two point. This is out of Black Knight 2.8 million in forbearance heading into the last week of the year. And so what does that mean for investors?

Brian Lauchner (02:13):
Well, that means that it's going to represent $565 billion in unpaid balances. And so what are those unpaid balance is going to do in 2021? And what does that opportunity look like for us? So we're going to talk a little bit about it, but before I even go farther, I want to go ahead and bring on my good buddy Eddie Speed here and get some color from him. And then he's going to talk about the state of the note industry. Eddie. You want to join me?

Eddie Speed (02:43):
Brian? How are you?

Brian Lauchner (02:44):
I'm doing great. How about yourself?

Eddie Speed (02:46):
I'm doing good. We are taking out 2020 with a bang.

Brian Lauchner (02:54):
That's right.

Eddie Speed (02:54):
We are entering 2021 with hopefully some clarity and vision. And that's what I'm Excited about sharing today is what I hope will be some factual data that helps us make good business decisions.

Brian Lauchner (03:07):
I love it. Any color you want to add on the national index being up so high on these homes?

Eddie Speed (03:14):
Well, I mean, clearly there is a shortage of listings and the shortage of listings is really been derived from in two areas. One of which is people pulled, had plans of listing their property and pull back and didn't do it. And the second thing is, is that people don't want people going through their house. So they chose not to list their property because they didn't want, you know, people walking through their house. That's pretty much the two best reasons that we know are that there's a shortage of listings. And it's a true story. And when there's a shortage of listings and there's a demand and what happens with price, it goes up. Right. And so we're going to say, is it real or is it Memorex right? Outwards? Is it a real sense of a market driven situation or is it a sense of there's a variable in the market, but not all the market variables have yet come to fruition and that's what we're going to do as a state of the industry today.

Brian Lauchner (04:17):
Love it. Well, I will not delay it any farther. I will hand it over to you, Eddie. We are in a special we're in, for a special treat this week to wrap up the year. Eddie, tell us what's going on in the industry?

Eddie Speed (04:28):
All right, well, state of the industry, this is big news and this is just been passed in this a new stimulus package, $900 billion COVID 19 relief bill. Now I didn't try to go list out all the possible things that are in this bill, but I thought I would do some things that I thought would impact the real estate or note or rental property industry. So right now it is $600 for each adult and dependent, right? So if you had a man, his wife and two kids, and that 600 bucks each and there is pending legislation, it passed through the president wouldn't sign it unless it said 2000 Nancy Pelosi and the speaker of the house jumped on that. But the Senate didn't pass that. So a Republican Senate said now there's a lot of pork in this bill and we don't want to do things like give India $10 billion for a study on gender, whatever.

Eddie Speed (05:37):
They didn't think that they would the bill. So a lot of reading, if you're interested in all that, you can do your Google research. And I think it's entertaining, but I'd start entertaining enough for me to get into today, right? So a phased out individual incomes. So they cap out basically at 75,000, if you're married, that's couples of 150,000. So obviously this is more for a lower income category. And then there's a jobless aide of a 300 bucks. And if you remember that was at 1200 and then it went to 300. So, and that'll be phased out middle of March. So the here's another interesting thing though. There's rental assistance, 25 billion to pass to tenants. And but the eviction moratorium is extended for January 31st. And and it does allow landlords to make application on behalf of their tenants. There was a bill in the last mortgage crisis and that was a huge thing that never was really utilized well. And so that was because the borrower had to make application and do all the process for himself, the mortgage lender servicer couldn't do it for him. And so they're trying to fix that this time and let the landlords do it. What I believe will happen in here is sophisticated. Landlords will do this well, and hobbyist landlords won't do it well. So, We'll see.

Eddie Speed (07:26):
Forbearance, everybody's talking about forbearance. And so Black Knight here, as you saw, put out a number, and if you just want to get straight to the bottom line, the bottom line is 2,765,000 loans. And Fannie Freddie has about a million FHA has about 1,000,001 and other loans, which aren't Fannie Freddie or in forbearance about 660 totalling that, sit just under 2.8 million loans in forbearance, every real estate investor. I know talks about forbearance. This is apparently been in the news the most, and it's what people are paying the most attention to. Here's what's an interesting stat is you break that down. The ones in the initial stage represent 19%. Ones that, excuse me, the initial stage here of 19% and then the one or see in the continued stage is what that is. That's a continued we just fixed these slides right before thing.

Eddie Speed (08:35):
And I've got a typo in there. Apologize for that. We'll fix that on the, if you, if you guys want copies of the slides, by the way, you can just email us at www.info@noteschool.com. And that little watermark is in the bottom of a lot these slides. And we'll be glad to send you a slide deck. We have some good charts and graphs I think will be meaningful. Just email at www.info@noteschool.com. And then re-entered in is 3%. So who has these loans? Well, you got banks and private label. The Securitizations, they've got the biggest piece of these loans and they're right at that 8% Mark, right? And then you got Gennie Mae and Ginnie Mae is FHA and VA and FHA. The farm loans are in there, and they're at, right just below 8%.

Eddie Speed (09:35):
So you've got banks and private label at just above eight. Fact is, let me move this score. I can see it. My little thing that says share my screen is right in the middle of that tab, that covers that number 8.7%. I'm sorry. And then Ginnie Mae loans are at just under eight, and really people talk about Fannie and Freddie and Fannie and Freddie of the loans in Forbearance. It's really not a gigantic number. It's three and a quarter percent. And it's kind of funny. Like if you ask a lot of people they think that's the Fannie and Freddie loans and Forbearance is the big number. You just looking at the chat, the charts and the data. You can see that.

Eddie Speed (10:25):
So this real estate, boom, this houses, Our own fire real estate is screaming like a forest fire through the woods. It's going up in value when they get to put a property on the market. There's eight offers on the property. They're fighting in the front yard. So to speak. Mortgage Bankers Association, and Fannie Mae made an estimate of loan production in 2021 and 2022. So this year was a banter year and they predicted loan production of being this. And of course it's ending essentially today. So it's going from a prediction to data. What they predicted though next year is very interesting. About a 35% drop in loan production next year, and even lower drop in 2022. So 2022, they're predicting two and a half million loans, 2021, 2.7 million off from 4.1 trillion in loan production this year.

Eddie Speed (11:54):
Why doesn't mortgage banking agree with the real estate industry? Very interesting. One of the reasons I think that there is A disconnect is, there is a lot of things that people aren't considering. So the latest data that is available according to Black Knight is the end of October. Now this number has not gotten better. So you may say, well, Eddie, that number's stale at 60 days old, it's not better, It's worse, but this is the latest official data that's out there. And this represents the total amount of loans. 3.6 million, 3,615,592 loans are the total that aren't paying. Some of them are delinquent, some of them are in foreclosure, different stages of delinquency. And by the way, the by far biggest number are loans that are delinquent seriously, delinquent 90 plus days, delinquent, but are not even in foreclosure yet that number, 2.2 million.The last time it was higher than that, was in January of 2010. So, nobody talks about this number.

Eddie Speed (13:33):
Mortgage banking is paying attention to it. I believe this is why they've adjusted their underwriting. I believe it's why they've adjusted their production. They are looking at the real estate market as we see it right now for residential houses, as like a duck on the water, everything is smooth on top and we're paddling like hell underneath. And if you read the mortgage rags, the newspapers, as we do every day, you're going to read that very, very, very consistently. Here's another inventory. And then this is a inventory of loans that were either bought back or loans that can't be sold to the conduit they were originated for. So mortgage lenders will make loans, and they already know where they're going to sell them. At the point they make them, right?They underwrite an FHA loan, a Fannie Mae loan, a Securitization loan. They write these loans, and these are loans that they either under an agreement, had to buy back from the agency they sold them to, or they can't be sold.

Eddie Speed (14:46):
Now, listen, guys.This is a problem. These are some pretty big lenders, and these are pretty substantial numbers of loans. So if you're looking at this data here, you're looking at loans, they're looking at delinquency on that whole, their whole portfolio. And these are thousands and thousands and thousands of loans.They're around over 10%. So understanding that this is these loans will not be sold in the market unless they're sold in the market at a discount. They're called scratch and dent loans, just like scratching appliances. And I have had a excessive experience in the scratch and dent business for many years in the past. And let's just say that Eddie has a little smile on his face, because this is some inventory of loans that are going to hit the market of people like us to buy them.

Eddie Speed (15:52):
So if you're looking at opportunities in the note, space, pay attention to the scratch and dent loan product, it is going to hit the market last time. In 2008, I saw loans like this hit the market that were trading in the 60 cent range. Another interesting thing is, since the virus people are moving around, they figured out they don't have to go live where they used to live. So one represents you know, where this is kind of the benchmark of plus or minus. And so, as you can see Cleveland, Chicago, San Francisco, New York city, and Hartford are shrinking. While Austin, Phoenix, Nashville, Tampa Bay, and Jacksonville are growing.

Eddie Speed (16:43):
So we're seeing a dissemination aisle where people are going to. And by the way, pay attention to this, because we're going to show you some apartment data and some rental property data in a minute that very clearly says that not everything is the same in this market. Now, I believe there's going to be giant opportunity in this business. Probably the biggest I've ever seen since I started doing this in 1980, right? But I'm making data decisions. And I'm looking at information, I'm looking at market conditions. I'm not just blindly going through the process, and I'm trying to create an awareness of this. The other thing that I've made a big deal about is who dominates the rental property market. And it's not the hedge funds. In fact, the hedge funds represent a fairly small percentage of the entire market. So limited partnerships and REITs and corporations and other, and owned in other entities, this 25% of the market, 28% of the market, right?

Eddie Speed (17:59):
But investors that own their property in their individual name own 72% of the market. Oh, by the way, they own one to five units. So they're not big operators, they're small operators. So the small landlord dominates. He owned 72% of all the rental properties. That's 23 million rental doors. And the one in the one to five unit, or excuse me, one to four unit space. So a single family house up to a fourplex, okay? Here's another thing though, the small investor, what I call the hobbyist investor, he manages his own units. So four and a half million of them are professionally managed. And 14.3 million of them are Self-Managed. What we Learned in NoteSchool is they show up at our doorstep. They're frustrated landlords, they're Burnt Out Landlords, they're hobbyist landlords. We've got all kinds of little names for them.

Eddie Speed (19:06):
This guy is not managing his properties as successfully as professional managers, which produces an opportunity. Many, many, many opportunities are related to this burnout, hobbyists landlord. And by the way, it's not like they own a million or two properties, they own and manage 14.3 million rentals. As my dad would have said back when I was a kid. So then that's as big as a wagon wheel. Oh. So here's the other thing is that they have equity. So 60% of them bought properties when they bought them as free and clear, and 40% of them bought them with financing. Wow. They can afford to sell because they have equity, meaning that they might sell to me with seller financing.

Eddie Speed (20:14):
And I'm solving their problem because they won't have a rent house anymore, but they will have a check along time in the future because I'll buy it on terms and make payments to them. As I get paid opportunity, A lot of people read a lot about the hedge funds. I've heard a number of interviews in the past 30 days with people talking about the hedge funds and all the hedge funds and all of the demand in the market of the hedge funds, meeting investment opportunity in buying properties, true story, but they're not buying every asset class. You see the hedge funds, those boys are buying this asset class. They're not buying B class, and they're certainly not buying C and D class. So this is the hobby guy, and this is the hobby guy, these assets. Hedge funds don't own hardly any assets in these B, C and D class. And by the way, D class for me probably means a deal that I wouldn't want to fool with. I have to see, I'd have to have a little more data in a specific area, but if you're looking at just the B class and just the C class properties, this is a gigantic inventory of people that have been negatively, highly negative affected by the virus.

Eddie Speed (21:55):
Let's just be fair about it. They hated their rent house before the virus. They really hate their rent house now. Now, you're going, but wait a minute, there's new. There's a government program and they're going to go give them all their back rent back. Yeah. If they're successful in going and doing the proper application and they go do all the things they need to do, but who do you think is going to be better at it? And more Johnny on the spot to go do it. You think the professional landlords are going to do it, or the hobbyist landlords? Right. So understanding, just understanding and being in the market for a long time, I've just learned. I start to watch the pattern of how people their, how they tend to react. And I tend to structure my business based on solving a problem because they're not able to solve it for themselves.

Eddie Speed (22:41):
So rent, slippage, well, this is the apartment makers. It shows the winners and losers. So the ones that are not doing good, they are down drastically, like, look at San Francisco here, and look at Portland and Seattle. And then blue is the good side, and I happen to live in Dallas, Fortworth. So Dallas Fortorth is doing really good. So I'm not saying they're all bad, just know the data. This is whether rents are up or whether their rents are down, right. There's some hotspots over here, right? Like New York city, obviously. So this is some good data. I have a lot of friends in the multifamily space. I believe that multifamily is in for a rough ride. But once again, I'm not, you can't over classify every type of multi-family in every market and say, they're all exactly the same. So there is going to be some opportunities in multifamily. But if you're interested in that asset class, you need to understand there is a lot of range or performance in that asset class right now. Here's the other thing, light blue represents one to four family rentals, light blue represents States that the delinquency is 20.7 to 29% not collecting rent. Wow, like States like this. Arkansas, Louisiana, Mississippi, Tennessee, Georgia.

Eddie Speed (24:45):
Then there are some States that are doing pretty good. The darkest blue are the States that are doing pretty good. So understand they're at they're at 4.2 to 12% not collecting rent. The renters are behind. This is some good information guys. This helps you understand, like, when I look at this and I'm helping students do this, I'm like, we're gonna do zero targeting campaigns to go chase this pain. Now, once again, I'm not buying junk or teaching my students to buy junk. So we're selective in how we go about it. But the data helps drive the direction of where we're going to chase things. You got to solve a problem, entrepreneurs solve problems, by the way of the delinquency, what is the what's doing the worst? Well, believe it or not, what would surprise you is? Or it even surprises me is that what's doing the worst is single family. I attribute that to hobbyists landlords, the hobbyist small time landlord owns a single family more than he owns duplexes and fourplexes. So they're doing the worst as far as their performance.

Eddie Speed (25:59):
Yeah. That's the hobbyist land or 9.2 billion lost in revenue the third quarter, that number is going to be uglier the fourth quarter, when it comes out, that's all been predicted. So turning rent rentals into seller financing, why would you do that? Well, first of all, we have the biggest pool of deserving buyers that need financing with seller financing that we've had. And then it certainly since then, back in the early 2010, 11, 12, this is the mortgage credit availability you guys have been with me. You've seen me use this chart before, but it's just paints a heck of a picture of where we're at in the market, right? These were people that could get a mortgage in February. And these are people that can get a mortgage today that number's off about 35% less than what it was in February. Right, now. It's up slightly. So it's, it's tick up a little bit better, but we've seen it tick up before, right? We've seen it tick up before from June to July. Nobody really thinks that mortgage banking is fixing to jump off the cliff and all of a sudden go say, everybody gets a mortgage again. So this is a big deal. This says people, a thousand people that could get a mortgage in February 650 of them to qualify for a mortgage today.

Eddie Speed (27:37):
That doesn't mean they're all bad. It means it's seller financing fills a void conventional lending doesn't fill. Here's another fact, according to EllieMae, who is the biggest software company out there that gathers data on mortgage loan applications, the average loan to value on a conventional mortgage for November was 81%. What that really means is these people paid 19% down payment. So don't believe that buyers out there are getting all their mortgages with 5% down. The statistics just don't say that. So I am super, super pumped about the level of down payment and the level of quality of people that desperately need seller financing today. This is market conditions that I have killed it in the past. I have this I completely understand this market. And we are right landing right in the middle of it right now. Right in the middle of the fact that everything seems great, but there are segments of the market that are significantly underserved, which is what I'm fired up about. Here's another concept. What if I could be right? What if I might be right? And that real estate isn't going to stay as hot as it seems at the moment. You know, maybe the skies aren't, maybe the trees aren't going to grow to the sky, right? What if I'm right and let's look at risk management. What if you took two properties of exact same value, one of them you kept as a rental, and one I'm you seller financed. What if this guy came in and paid you 20% down.

Eddie Speed (29:34):
What Happens to your net worth? If you own the mortgage and your seller financing him in collecting a payment every month. And by the way, you're collecting a hundred percent of the payment every month. You're the bank. You're not responsible for paying his taxes and his insurance and his utility bills, right? The guy who lives in the house is responsible for those things. What happens to your mortgage in this case is you're not hurt at all because you built a big cushion, which is the blue that you're looking at. But if you own a rent house, if it drops in value, you drop in net worth. Let me make a challenge. I've helped a number of really big operators with this. Take your don't even go take your whole portfolio. Just take your worst performers that are good houses and transition them from a rental to a seller, finance get 20% down.

Eddie Speed (30:37):
And all of a sudden, if the market drops, by the way, you're going to get about at best about 60% of this payment, and you're going to get a hundred percent of this payment, would you rather have 60% of something or a hundred percent of something? Seller financing will increase your cashflow on your rental. Almost every time, a beat this up a lot with a lot of students, this is a fun thing that I've been able to do this year. And once again, you know, I'm giving you market data and I'm giving you concepts. I'm wanting you to apply your good judgment to this and figure out what's the best plan for you. Let's talk about commercial I'm around her, out here, Brian, I'm sorry. I just had a lot of data and a lot of information to get through here, right? So this was a presentation that was done at mortgage bankers talking about the commercial sector.

Eddie Speed (31:33):
Well, first there was four, there was four bucket theories, right? The first bucket was, is that the pandemic created tailwinds for some properties. Industrial properties are more desirable now. They didn't go down, they went up. But it accelerated other changes like the pandemic sped up, the changes that are likely coming. And obviously in retail. Retail was already competing against online sales and retail was falling back in its demand. And this has only accelerated it. Now the changes, the relationship of have to be permanent, that will, that's going to be like office buildings, right? Office buildings are probably going to have a permanent change to them. Now there's arguments in both ways that maybe people are going to spread out. They're going to leave us less space. But so many companies have decided that they don't need a physical employees, the office situation, and I'd ride around my town here.

Eddie Speed (32:33):
In Dallas Fortworth, the vacancy is shocking as you probably know wherever you live. And so this is probably going to be fundamentally changed permanently. Now there's going to be some things that are immediately affected, which are multifamily and hotels, and that market is considered it, probably will stabilize down the road. But if you're looking for the opportunity, I don't think it's at the bottom yet. I don't believe it's at the bottom yet. So a lot of market data, I want to leave you with this thought entrepreneurs solve problems, and they create opportunities. What I want you to do is to have good data and good information so that when you pursue a market condition, you're clear about what market condition looks like. Mr. Brian?

Brian Lauchner (33:33):
So good. Thank you, sir. Thank you. That was really, really good lot of really great facts to actually kind of look at and and be able to get, come to a solution. That's gonna work for us. I mean, there's too many things to actually add here. And so what I was thinking was this is going to be one of these NoteSchoolTV episodes that you're going to have to probably rewatch it. You're probably gonna want to rewatch it. And a couple of different parts of what he's talking about that really relates to you. And see kind of how does this fit into my business model, right? We're all witnessing it right now. I've been looking at houses in Austin and Denver recently, and just watching these prices climb, wondering how does the wholesaler compete? How does the rehabber and even the landlord, how do you, how are you not priced out of these situations and what does happen when the price does drop 5%, 10%, 20% in some of these major markets what's that going to do, like Eddie said to your net worth. So I would really encourage you, definitely make sure you're you're plugging in, go to our YouTube channel, rewatch this and another thing you could rewatch Eddie at any point in time is every week we do the Feeding Frenzy Friday. Do you remember.

Brian Lauchner (35:05):
So the Feeding Frenzy Friday, each week, we break down a note off of notes direct. So if you're someone who's trying to figure out, how do I know if it's a good note for me or a bad note for me? If you're wanting to kind of master your due diligence and become a better I'd say a detective of notes, get involved, go check out our playlist called the Feeding Frenzy Friday, each week. Me and Scott Tyler, who's been doing this for 25 years. We break down the details of a note this week. We're going to be talking about a note in Connecticut with really solid pay history. The person's been in the house making payments since 2003. What are the chances they're going to continue to pay on time if they've been paying since 2003? Pretty darn good. So go check that one out.

Brian Lauchner (35:49):
Another thing, obviously, for those of you like I said, at the beginning, who are newer to the channel, man, go, go check out www.NoteSchool.com/TV, get involved, engaged with us a little bit learn kind of what that next step might look like for you, or even just what NoteSchool is, right? As always, we'd love for you to like these videos, subscribe to the channels and turn on that notification bell so that you're able to join us, live each Wednesday at 11 central. And then also as your questions come up, you can always we'll always have some time at the end. We're going to do an after party after each show and and kind of go through those questions, make sure you feel like you're getting some things addressed, ask your questions, bring them to the table. And I've got somebody here with 40 years of experience, Eddie Speed. So we wish you all a happy new year. Thank you so much for joining us this year. 2021 is going to be incredible. Stay tuned, stay engaged, and we will see you next year.

Brian Lauchner (36:57):
All right. So we're going to do kind of a short, short after party just because this has kind of gone on a little long, but I did see some comments coming in and I'd probably say the theme in general is going to be the inventory issue. And so Eddie I'll let you kind of hit on this real quick. And then again, I would encourage you all to go back and rewatch that part he's talking about. But the theme of questions really is around when prices are going up. What's the play, where's the opportunity you hit on at once. Go ahead and hit on it again.

Eddie Speed (37:28):
Well, you know, the reason we started making creative financing, such a theme that we taught at NoteSchool was I saw real estate investors two and three years ago where they were getting shut out of deals because people were less likely to take a discount on their house. So, so buying on terms, it's still the opportunity, right? It's, that's, absolutely going to be the opportunity I do have, I do have a number of clients, some big students, some big, some really big and some not so big that have looked at flipping their some of their inventory over and have done that and selling some of their rentals. And listen, there's three point there's 6.3 million loans today that didn't make a payment in the last several months, right? Six, almost six and a half million loans. Didn't didn't make a payment.

Eddie Speed (38:28):
And those houses aren't listed and people say, well, all those loans in forbearance, they're going to get, they're not going to end up on the market. They're just going to go put the debt on the backside of the loans. I'm going to say wrong Kemosabe, because the reason is, is because you have to qualify for a modification and Dodd-Frank has some very specific qualifications. And I believe there's 2.8 million loans in forbearance. Most of those people cannot qualify for a modification. And remember that only represents about 43% of the problem. 57% of the problem are loans that are not in forbearance. So it's a big thing and the burnout landlord thing. And I know we talk about it a lot, but it's just, it's a listen, when we're talking about millions of properties, we don't need millions of properties to have an opportunity, Brian, we need a much smaller number to be zeroed in on the right thing and the right way to solve a problem. We just happen to have millions of properties that have some problems.

Brian Lauchner (39:32):
That's it. I'm not planning on buying a million houses next year. You're probably not buying a million houses next year. The people on this show probably aren't either, but if we could get a few that are really structured the right way or at a substantial discount, that really does change our portfolio or our net worth quite substantially. And really the second piece of the conversation that we'll say is the thing that will always remain. That's been, Eddie's been doing this for 40 years, the thing that's been the most consistent and is creative financing will always fill the gap in the marketplace. And right now, when people want a sup, like a super premium for a house, they want retail or retail plus something. You can finally give them the price that they're actually wanting again, where our job is to bring creative solutions to complicated problems. And right now, one of the complicated problems is in that seller's head. They think they need a million dollars for this house. And so could there be a way that we could use creative financing to give them that number, but give it to them over time. And so again, it's just about bringing solutions to the table.

Eddie Speed (40:35):
So look, I know we ran late today because we, I just had a lot of data and I wanted to get through it. And I didn't know, I couldn't think of anything I needed to eliminate to tell that story. And so I appreciate you guys doing that. Remember this, if you would like the slide deck, you can just email us www.info@noteschool.com. And we'll be glad to send you the slide deck. And so that'll have some stuff and we'll continue to break down some of these things individually as we go. But, Brian, I'm never been more fired up about entering a year than I have in 2021.

Brian Lauchner (41:08):
It's exciting. Well, thanks guys for joining us here and no school TV have a happy new year and we'll see you.
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