Brian Lauchner:
Another question that came up from Deb and Kev was talking just about the tools, you know, if you want to share a little bit about, what are some things that kind of help you you know, in the business, but also help really succeed in the business from the tool side?
Martha Speed:
Well, one of the things that you have to do initially is, you know, of course we use Excel of course, right? But, is, you know, you've got to look at it on an Excel sheet or somewhere where you can say, okay, if I acquire this loan for $80,000, how many months do I have to sell to recoup $80,000? So you've got to look at the loan itself, how long is it supposed to, will it pay out? And then how much do you need to sell to recoup your investment? And so make sure the numbers work right. And then, you know, the other thing is just, you know, having a process to that, to where, you know at the end when the loan reverts back to you, well, how many months am I going to collect and how is that going to pay out?
Martha Speed:
So, you know, how many years will it pay out? Like when does it revert back? So just kind of keeping track of those type of things. So, you can see the big picture and know, well, there's going to be some loans that just won't work, right? You really can't acquire it and sell the partial and make it work because you have to sell almost the whole loan. So that doesn't work. The other thing that is a really good tool with passive investors is, so if you have a loan and it appraises for significantly more than what it sold for, that brings their investment to value way down, right? It brings my loan to value down. And then for the passive investor, it brings their investment to value down. And so, you know, they have the lower the investment to value. Well, that gives them a big cushion between what they're investing and what the property is worth. You know, so if they're investing 50,000, but the property is worth 150, for example well that gives them a big cushions and it makes them feel really comfortable about, you know, investing their money and that particular asset.
Brian Lauchner:
Yeah. And I think that one of the beautiful parts about the Excel spreadsheet is that it's just, it's so malleable, right? Like you're just plugging and playing. You're coming up with numbers that work for you, but does this also work for my investors? Okay. We need to change it around and not get bogged down to where you're looking for. I need a software that does this for me. So much of this is just using the creativity that you've been taught to say, all right, this is what I need to make this note work. How can I use this spreadsheet to make the numbers also work for my investors? Right? You've got to be able to justify the whole picture. Kind of like Martha said, you've got to make sure this is a win-win. And when you do, it's really beautiful.
Martha Speed:
Yeah. And so like with, you know, with my passive investors, when we start out, I'll do like an executive summary for them that, you know, just to kind of lay it out a little easier for them. But then, as we go down the road, you know, I can copy what I need, the information, I need them to see on a spread and put it onto a spreadsheet and send them a spreadsheet. But it's just the educational part upfront, you know?
Brian Lauchner:
Right.
Eddie Speed:
And, just so this isn't all a mystery. People say, what is NoteSchool? NotesSchool, teaches all of those things that Martha just mentioned like how. What does an executive summary look like? How much information is on it? What is this magic Excel spreadsheet you're on at? It is hardly to used. I mean, like, of course we've learned if you can show people these steps, it kind of gets the fog away, removes the mystery and it's down to it. But you know, it's funny, like, I can't tell you how much money and partials Martha has sold with having a trusted relationship with a passive investor and literally just sending them a poop sheet, right? A little information sheet or whatever you call it. Right? It's an executive summary that just has literally, you could look at the whole thing, Brian in four minutes, the whole thing in four minutes. And you're like, okay, I know enough.
Brian Lauchner:
Yeah, Absolutely. And, when you're raising money, that's what you got to start with. You can't just say, Hey, I got a note, they'll get you 6%. You interested. Right? You got to give them a little something else to make it happen.
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