Latest / Real Estate Note Investing / Episode 54: Building Your Vendor Network

Transcript

Episode 54: Building Your Vendor Network · Real Estate Note Investing

• 0:00
  SPEAKER_00: Welcome to the show, where you'll learn how to invest in mortgage notes, the savvy real estate investor's secret weapon to create cash flow without tenants and property acquisitions for pennies on the dollar.
• 0:12
  SPEAKER_00: My name is Robert Haitha, founder of Fix Notes, and my mission is to make note investing ethical, profitable, and accessible for you.
• 0:20
  SPEAKER_00: In every episode, we're democratizing the industry to put these powerful Wall Street assets into the hands of main street investors like you.
• 0:29
  SPEAKER_00: So without further ado, let's get into this show where you're in good hands with my AI clone.
• 0:34
  SPEAKER_00: Let's go.
• 0:37
  SPEAKER_00: This program is for informational purposes only and should be independently verified before taking action.
• 0:44
  SPEAKER_00: Note investing is not a solo sport.
• 0:47
  SPEAKER_00: Every loan you buy, manage, and resolve touches multiple counterparties.
• 0:51
  SPEAKER_00: Servicers, attorneys, title companies, due diligence vendors, realtors, skip tracers, and more.
• 0:56
  SPEAKER_00: The quality of your vendor network directly affects the quality of your results.
• 1:00
  SPEAKER_00: Building those relationships before you need them and nurturing them consistently is one of the most valuable things you can do to set your business up for long-term success.
• 1:09
  SPEAKER_00: The most important vendor relationship you will build is with a foreclosure attorney.
• 1:14
  SPEAKER_00: Not because you want to foreclose on borrowers, you do not.
• 1:16
  SPEAKER_00: But because a good foreclosure attorney is the legal backbone of your note investing operation.
• 1:21
  SPEAKER_00: They send demand letters that get borrowers' attention, they file bankruptcy proofs of claim, they manage foreclosure actions when resolution is not possible, and they are a source of intelligence about what is happening in the markets where they practice.
• 1:34
  SPEAKER_00: When you are selecting an attorney, do not just ask for references.
• 1:38
  SPEAKER_00: Pull up the public record.
• 1:40
  SPEAKER_00: Search for foreclosure filings in the counties where you are buying loans and see which attorneys are the most active.
• 1:46
  SPEAKER_00: That is the real-world track record you want to hire.
• 1:49
  SPEAKER_00: When you find a good foreclosure attorney who is licensed in the states where you are most active, treat them like a long-term partner.
• 1:55
  SPEAKER_00: Work your loans with them, pay your bills on time, and build the kind of relationship where they know your portfolio and take your calls.
• 2:01
  SPEAKER_00: Volume helps.
• 2:02
  SPEAKER_00: Attorneys who have multiple accounts from you will prioritize your calls and often offer better rates.
• 2:08
  SPEAKER_00: In states where they are not licensed, ask them for referrals.
• 2:12
  SPEAKER_00: A well-connected attorney knows who the good practitioners are in other markets.
• 2:16
  SPEAKER_00: Your loan servicer relationship is the second pillar of your vendor network, and we covered how to evaluate servicers in a previous episode.
• 2:24
  SPEAKER_00: Beyond the basic criteria of licensing, fees, and service levels, the long-term value of a servicer relationship is in the communication.
• 2:32
  SPEAKER_00: A servicer who calls you with a question rather than guessing is worth far more than one who processes transactions silently.
• 2:39
  SPEAKER_00: When you bring a new servicer on, establish your communication preferences early and let them know how you want to be kept informed on your portfolio.
• 2:46
  SPEAKER_00: Title and due diligence vendors are next.
• 2:49
  SPEAKER_00: For title, having a go-to provider for ownership and encumbrance reports.
• 2:53
  SPEAKER_00: Someone who knows your workflow can turn reports quickly and alerts you to anything unusual they see in the chain.
• 2:59
  SPEAKER_00: Is worth the consistency.
• 3:02
  SPEAKER_00: Similarly, having a preferred credit reporting provider set up with your account gives you a repeatable process for pulling reports that does not require you to re-evaluate vendors every time.
• 3:11
  SPEAKER_00: Consistency in your due diligence vendors also means consistency in the data format you receive, which makes your review process faster and more reliable over time.
• 3:20
  SPEAKER_00: Skip trace vendors deserve their own attention.
• 3:23
  SPEAKER_00: Not all skip trace services are equal.
• 3:25
  SPEAKER_00: Some pull from thin datasets and return stale information.
• 3:28
  SPEAKER_00: The better services pull from utility records, vehicle registrations, credit header data, and multiple other live sources.
• 3:34
  SPEAKER_00: The investment in a quality skip trace provider pays off in occupancy accuracy and occupancy accuracy pays off in resolution quality.
• 3:43
  SPEAKER_00: Test a few providers on loans where you already know the answer and compare the results before committing to one as your default.
• 3:50
  SPEAKER_00: For realtors, the approach is relationship-driven and geography specific.
• 3:54
  SPEAKER_00: When you acquire a loan in a market where you do not have an existing contact, find active listing agents in that zip code on any real estate listing site.
• 4:02
  SPEAKER_00: Call them, introduce yourself as an investor with a non-performing loan in their market, and ask if they would be willing to provide a drive-by opinion of value in exchange for the listing when the time comes.
• 4:12
  SPEAKER_00: Most active agents will say yes.
• 4:14
  SPEAKER_00: This approach builds a network of local eyes and ears in markets across the country that costs you almost nothing to establish.
• 4:21
  SPEAKER_00: The same networking logic applies to your broader industry presence.
• 4:25
  SPEAKER_00: Attending note investing conferences, joining industry associations, and being active in investor communities introduces you to deal flow sources, co-investment partners, and vendor referrals that you cannot manufacture any other way.
• 4:39
  SPEAKER_00: The note investing industry is relationship driven at every level, from the community bank that decides to sell a loan to the attorney who refers you to a private lender client.
• 4:49
  SPEAKER_00: Your reputation in those circles compounds over time in the same way that returns compound in a well-managed portfolio.
• 4:56
  SPEAKER_00: Next time we are going to look at how to find DealFlow, the sources of non-performing and performing loans, and how to build a consistent pipeline of acquisition opportunities.
• 5:06
  SPEAKER_00: Thanks for sticking around to the end, and thank you to my trusty Robot and the Fixed Notes team for putting together another episode.
• 5:13
  SPEAKER_00: If you want to learn more and hang out with the real, not AI version of me, join our free school community at school.com slash fixed notes.
• 5:22
  SPEAKER_00: That's s k-o-l.com slash f I X N O T E S.
• 5:28
  SPEAKER_00: In the meantime, we'll see you in the next episode.