Why Notes Are Profitable (and Fun) In Any Market

What are the fruits of studying the note business for 18 years? Today’s guest will tell you! Tim Siebelink of Raleigh, NC took his first note class in 2004, and he’s been adding to his storehouse of knowledge and experience ever since. Some note investors buy nonperforming loans in hopes of foreclosing and owning the property—but not Tim! He has been through tough times himself, so he invests in nonperforming notes because he loves helping people restructure their loan so they can stay in their homes. He has also taken many young note investors under his wing and taught them the ropes. Plus, he loves the fact that no two markets and no two deals are exactly the same, which is what keeps it fun!

https://capfinancialresources.com/con...

https://capfinancialresources.com/abo...



1:50 Joe recaps the news. January markets were the most competitive on record as far as bidding wars. 70% of homes sold with a bidding war. Vacant “zombie homes” slowly decline even as foreclosures rise. About 1.4% of U.S. houses are vacant (about 229,000 are in foreclosure). They are not staying vacant after being foreclosed on because they have value, so rehabbers are fixing them up, or rebuilding on the lots.
3:50 Joe introduces Eddie Speed, who introduces today’s guest who has been a graduate level note student for 18 years: Tim Siebelink of Capital Financial Resources. (And he’s easily mistaken for Colonel Sanders.)
6:05 In 2004, Eddie taught a class in Grapevine, TX. Tim was quiet but asked good questions. Tim is humble and doesn’t brag, but He likes the note business because there’s so much more you can do with notes instead of rentals. He got into notes because his rentals took a beating. He doesn’t worry about the stock market, or a hot water heater going out. In 2008, Tim bought many nonperforming loans, and focused on deal structuring where he allowed homeowners to stay in their homes.
10:00 Today’s nonperforming loans tend to be much higher quality and have much more equity than the ones in 2008. They take less time, less effort, and are much more profitable.
10:26 Eddie mentions that he’s probably seen about as many successful case studies from Tim than almost any other investor. He figures out some angle “beyond.” He lives in Raleigh but has never done a deal in Raleigh. He also recently did a deal where one property was the down payment on another.
12:20 Tim loves to look at numbers. He did well in 2008 by reaching out to the homeowner and asking, “How can I help?” He can empathize with people in tough situations, and they see his sincerity.
15:30 Brian Lauchner announces today’s sponsor, the upcoming 1-day “Gold In Notes” class. The class covers key topics such as: How to create notes, raise capital, defer taxes, wholesaling notes, how to create partials, make money from performing and nonperforming notes (which is a huge opportunity), and much more!
17:05 As a serial entrepreneur, Tim is also involved in other business unrelated to notes or real estate. He has also helped lots of young guys get into the note business. He says he just passes on what he’s learned from Eddie.
18:55 As for today’s market, it was very different from ’04, ’08, ‘14, and so on. He’s learned to use the many tools in the creative financing toolbox. He knows how to generate transactional income, protect your wealth, or build long term wealth. He also uses private capital to propel him forward, so he’s making money off their money. He has also bought other businesses using creative seller financing to get the terms he wanted.
22:50 Tim says he has to be patient to “let the sale develop,” and let the seller come around to your terms. He has to educate the seller and show them things they’re not aware of, like how to defer capital gains.
22:45 Eddie describes how NoteSchool constantly adjusts curriculum depending on the market needs. He deals with houses, land, and commercial properties. He loves single-family because it enables to him to help people stay in their homes.
26:30 Looking back over his career, the note business taught him you don’t need hard assets like rental properties to make money. Note investments free up your time to do other things and donate money to charities. And it’s fun! Every deal is different which he enjoys. He advises people, “To get in it and go!” Get the knowledge and go for it.
30:40 Joe closes with an invitation to become a part of the NoteSchool ecosystem. Go to noteschool.com/TV to check out a one-day class.