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UNIN 4 Logan | Discounted Deals

How Your Profit Margin Compares To Your Margin Of Safety With Logan Fullmer

  If you just found a good deal but got stuck with legalities, you can’t miss this episode of Uncontested Investing! Logan Fullmer joins Tim Herriage and shares his journey from managing construction in the oil field to finding real estate success through discounted deals. Not too long after starting his real estate journey, Logan saw himself earning over a million dollars on a single deal! Tune in as he talks about how he invested in educating himself about property codes and researching case law and some insights into how curative title work and resourcefulness have helped him take calculated risks between profit margin and margin of safety and closing deals at discounted prices. — Watch the episode here   Listen to the podcast here   How Your Profit Margin Compares To Your Margin Of Safety With Logan Fullmer Thanks for stopping by. Logan Fullmer is with me. Logan, how are you? I’m great. Good to see you. It’s good to see you. Logan is someone I have been watching on social media. You are putting on these big seminars that aren’t typical seminars. It’s to teach people, which I find interesting. Why don’t you take a minute and tell people a little bit about yourself? Thanks for letting me come. This is fine. I enjoy doing this stuff. It’s become part of things I’ve done over the last few years. You get busy working down in your lane and it’s neat to share if I know what else going on. Here I am. I do some educational stuff. I have been anti-guru, and anti-real estate education because there’s a bad name. I do have a very unique component to my business and it always blows people away. I’ve spent more and more time talking to people and giving advice on sharing information online. I’ve gotten literally hundreds of people asking for this content. After a couple of years, I finally decided, “If I can do this, make a little bit of money doing it but deliver what is the best amount of information I can I will do it.” It’s curative title work. This is stuff nobody cares about, except for when you can’t close a deal. The title company says, “Where’s your Schedule C, so and so? You got to fix this.” It’s either simple. The title company might help. You got to call a lawyer or even the attorneys throw their hands up. That’s when I show up. I’ve seen some of your deal numbers. We are going to get into that in a little bit. Some people are like, “Title work.” Why do I care about the title? Do you want to buy property at $0.10 on the dollar? They care about title work. Everybody cares at that point. One of the first things we do every week is what I call the bluff, the bottom-line upfront. What that is? I learned at the Marine Corps. I used to be brief generals. They always said you had to give them the bottle upfront in case there’s a mortar attack or they have to get up and leave the room because generals get busy. What I like to do is I’m going to give you about two minutes and tell the audience the most important things they should be doing, looking at, watching trends they should be following the most important things that in your mind people should be watching in real estate. Two minutes you are on the clock. One of my favorite things to tell people is your profit margin is also a convertible margin of safety. I’ve never heard anybody say it that way but that’s how I think about it. When I go into a deal, what’s most important is to say, “How am I going to lose my money? How am I going to risk principle?” That’s the first rule. If I can measure all my risks, attach dollar amounts to them, and decide that I’m not going to lose any money, then I realize there’s an investment thesis here to build on. From that point, we start talking about maybe making some profit? How’s that going to look? What are the risk components? Can we afford all these things? It’s looking at the margin of safety and the profit margin, which are the same thing. It’s profit when things are going well. It’s a margin of safety when things go bad. It operates together. I look at that with real estate businesses, other businesses through manufacturing businesses or other operating businesses we own now that it came from our real estate. Are you an attorney? No. How can you be smart enough to do curative title work without being an attorney? The way folks do that does a good job in formal education. I struggled in school big time. That’s the most common thing for our guests. I did badly in that format. I took seven years to get a Bachelor’s degree. I got bad grades in high school. I run into problems and didn’t like the answers to those problems. I have a bullheaded attitude of, “I’m going to fix this at all costs.” I had to learn as I got older that all costs aren’t always the answer but you can go deep. I spent the time paying lawyers to teach me how to read the Property Code, the State’s Code, the Tax Code, and the Probate Code and taught me how to research Case Law. Once I realized that’s where these answers would come from, that’s where I started digging. Every time I would have a problem, I would go figure out how to solve it and hire an attorney or attorney team and say, “I need you all to litigate this. Here’s how we are going to do it.” You mentioned something earlier to me about the oil fields. Were you solving problems out there too? No. I was trying to make a living. I had

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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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