There’s Transactional Money And There’s Wealth With Eddie Speed Of NoteSchool
As the world increasingly moves towards a data-driven economy, data is becoming increasingly important in the note industry. By understanding the data, businesses can make better decisions about growing and scaling their operations. That is what our guest, Eddie Speed, the President and Founder of NoteSchool, talks about. Having been in the note industry for thirty-plus years, Eddie has an unparalleled track record in the industry and honed marketing and negotiation skills. Tune in to this episode to know more about data, tax loophole strategies, and caution flags in real estate investing. — Watch the episode here Listen to the podcast here There’s Transactional Money And There’s Wealth With Eddie Speed Of NoteSchool I’m joined by a good friend and mentor of mine, Eddie Speed. Eddie, thanks for being here. How are you doing? If I was any better, I’d be you. Eddie, I met you for the first time in a meeting at the DoubleTree Hotel in Dallas when I first got out of the Marine Corps. You were selling a book called Streetwise Seller Financing. You were the first real estate author I’d ever met. I was awestruck until I realized you were a normal guy. Why don’t you take a minute and tell us a little bit about yourself? I started buying seller-financed notes with my father-in-law in 1980. Seller financing became a big thing because of inflation, high rates. That’s how I got started in the business. My wife and I married in 1982. We came to the big city of Dallas Fort Worth to buy notes. By the time I met you, I’d set up the note system for home investors, had a whole era with Frank D’Angelo, and all that. In the end, I spent about ten years showing real estate investors a formula of how to make seller financing. I did that for my own selfish reasons. They could sell their notes to me for top dollar. What has become our thing over the years is how to do it correctly so that you’re making the best product. Whether you’re going to keep your note or sell your note or whatever, that’s how it works. It’s important to do things right. Eddie, every week I start with what I call the bottom-line up front, the bluff. When I was in the Marine Corps, I used to brief generals. They would always say, “Never bury the lead. If the general has to get up and leave in the first couple of minutes, he’s got to know the most important thing.” Imagine someone tuned in on this show, they’re on their way to work, but they got to pull over, get gas, and don’t finish reading it. I’m going to give you two minutes to tell the reader the most important things they need to think about, be doing, or avoid in this market. Eddie, the bluff, take it away. The most important thing for every real estate investor, whether you’re a high-volume real estate investor, or whether you’re a guy that does 2 or 3 deals a year, you got to know the data. Take advantage of the data. When I started in the business in 1980, honestly, there wasn’t any data. Now we have all kinds of information. Let’s play a little “Did You Know?” Did you know there are 2 million residential mortgages that aren’t making a payment? Did you know the most frustrated property seller in the business? Burned-out landlords, small-time landlords, particularly ones that self-manage. Did you know how many houses they have? They own almost 12 million residential houses. That’s a big target list. Whether you’re looking at that, at how growth rates are going or projecting the market conditions, let me warn you of this. A lot of people love to read the headlines. You got to understand what’s behind the headlines. Some reporter wrote an article. They wrote a headline for a zinger. The big zinger may be details in that article that are way past the headline. Know your data. When you know your data, you can make smart decisions and find voids that every other real estate investor is missing. I’ll talk about strategies that are a big deal. According to some of the top real estate negotiation trainers in the business, friends of Tim’s and I, the number one reason the frustrated landlord doesn’t sell is they’re scared of paying taxes. Why don’t you angle a tax loophole strategy? Instead of, “I’ll pay you top dollar,” why don’t you lead with, “I’ll show you a way to defer taxes?” That’s a completely different angle that positions you differently in the market. Once again, you have to know some data. You have to understand how that works to position yourself differently. That’s about it. I was an intelligence analyst. We always talked about single-source information. Data was one of those things that you’re not supposed to ever take action on. If you heard something one place, or you only got imagery of something, you don’t start a battle plan against that. You have to go get more information. If you got imagery, intelligence, you’d go look for human intelligence, signals intelligence, or all the different types of information to form a picture. It’s almost what I heard you say. Don’t read the headline. That’s single-source. Get through those articles and look for the underlying data that you can form your own opinion on. It’s got to be supported. A couple of months ago, I was at a mastermind meeting. I won’t say whose. Someone said, “The Boise, Idaho market’s going to crap.” I was like, “I hadn’t heard that.” I started looking it up. There are some articles days on the market, up 75%. We’re from 7% to 12%. I get it. That’s what I tell everybody all the time. Percentages right now are misleading. That’s why I caution against reading the headlines. I see it all the time. I don’t
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