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Bruce Norris and the Norris Group

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By Bruce Kellogg

Who is Bruce Norris?

Bruce is a longtime real estate investor, builder, “hard money” lender, and real estate educator with over 35 years of experience. His history includes over 2,000 real estate transactions as buyer, seller, builder, or money lender.

He was married at 17, and had two children by age 18. He has lived on food stamps, and was fired from five consecutive jobs before entering his present business. He started by flipping houses, and he opened The Norris Group in 1997 as a “hard money” lender.

What Has He Done?

Renowned for his ability to forecast long-term real estate trends and timing, the release of The California Comeback report in 1997 gained him much notoriety. The accuracy of the extensive report led many California investors to financial freedom. His January 2006 release, The California Crash, was an in-depth look into the California market correction and the statistics behind Bruce’s predictions.

Bruce speaks and debates nationally, and has been a guest speaker at the Mortgage Bankers Association, REOMAC, Inman, HousingWire, California Association of Realtors, California Builders Industry Association, California Mortgage Association, the Real Estate Research Council, and several local and national investment clubs, associations, and service clubs. Bruce has met with local and national government officials, including FHA and Fannie Mae, to discuss market solutions and insights.

Bruce has contributed articles to many real estate magazines and newsletters, including The Business Press, Scotsman Guide, Creative Real Estate Magazine, The Orange County Register, RealtyTrac’s Foreclosure Newsletter, AOA Magazine, and The Daily Commerce. He has also been featured in: The Wall Street Journal, Fox Business News, Nightline ABC, The New York Times, Time Magazine, Good Morning America, The Los Angeles Times, Fortune, Mortgage Banker Magazine, Money Magazine, Reuters, The Associated Press, The Tribune, and numerous others.

What is Bruce Doing Now?

Bruce is also the host of the award-winning series, I Survived Real Estate. The events bring together leaders from numerous real estate sectors to discuss legal regulations, stimulus-related issues, and solutions to the current market. The events have also helped raise over $860,000 for charity since they began in 2008.

Bruce hosts the award-winning Norris Group Real Estate Radio Show and Podcast, where he interviews real estate industry leaders, authors, government officials, local experts, and economists. Guests have included representatives from the FBI, the MBA, Freddie Mac, the Appraisal Institute, HUD, Fannie Mae, PropertyRadar, Auction.com, PIMCO, PMI Group, REDC, the National Auctioneers Association, and the Center for Responsible Lending, as well as Peter Schiff of Euro-Pacific Capital, and John Maudlin, to name a few. There are almost 600 shows and 250 hours of free education in the real estate radio archives.

Bruce currently serves on the Executive Board for the Real Estate Research Council of Southern California. He was awarded Educator of the Year by Think Realty in 2018.

What About the Norris Group?

Besides making “hard money” loans in California and Florida, The Norris Group educates investors. Their training is unique in that they created the Quadrant System, which takes a lot of their market timing research and layers buying and selling strategies to the market. Their learning management system has over 60 hours of content, but an investor won’t use all of it at one time. In addition, they consider the investor’s skillset and personality, and can do one-on-one strategy sessions that consider who the person is, where the market is, and how they will most likely best succeed in the business. The Norris Group recommends exploring their free content, like their radio show and weekly real estate news videos, and then explore their VIP Subscription.

What About Bruce’s Market Predictions

Bruce is worried that markets have become hot in California. Affordability numbers suggest we could still experience price increases in many areas of California. We have never had “full employment” and a great economy while experiencing a decline. However, Bruce is concerned about a number of issues including interest rates, and in some markets how hot prices have become. His long-term and short-term outlooks for California differ. He wants investors to really think about protecting themselves in the next few years, and avoid buying into the hype.

The Norris Group in Florida

Bruce has been investing in Florida since Hurricane Andrew. Over 20 years, he and the Norris Group have built houses, done “flips”, and acquired rentals, along with establishing a “hard money” lending business. Bruce exchanged some California properties into new construction rentals over the last four years and expects to see many California investors diversify by using Internal Revenue Code (IRC) Section 1031 to exchange into Florida properties.

The Norris Group offers readers to visit their website, www:TheNorrisGroup, to take advantage of the free items available there.

 

 

An Industry Leader Discusses His Deals

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By Hannah Ash

Larry Goins doesn’t know it all. “When it comes to real estate, the learning never stops,” he tell me. When one of the country’s leading investors pauses for a moment of self-reflection, it’s worth a listen.

“You can learn something from everybody you meet,” he tells me. It’s one of the secrets to his success in real estate; he’s always on the hunt for a way to do it better. “Just this week, I attended two webinars,” he casually remarks. I must admit: I’m taken aback.

For someone who has been engaged in all aspects of real estate since the 1980’s, Larry Goins isn’t full of the slam-dunk advice one might expect; instead, his advice is to ask questions and keep an open mind. That’s what he does, he says. He wants to know how he can do better and wants to meet people who can teach him how; he is full of stories of things he’s learned this week and this month.

For a man who once served as president of the Metrolina ReIA and is a mortgage lender, real estate broker, agent and licensed general contractor, one would think he might just want to rest. Mr. Goins, however, is one of those rare breeds who love what they do so much, it doesn’t feel like he’s working a job. Goins’s work is stacking up success after success and helping others find their own successes along the way.

Mr. Goins has a motto, “People and principles before profits.” When he’s not working, he’s with his family. I ask if they share his interest for real estate. His 17 year old daughter loves equestrianism, he says, “and she regularly takes to the ring, riding in shows”. Goins also has a son and wife. “My 9 year old son is already a hard money lender,” he laughs. When it comes to his wife, it’s not much different, “Pam is a hard money lender too. She also gives of her time generously by leading her church’s food pantry organization.” Both altruistic and driven to succeed, it should come as no surprise that he’s found a way to marry his two loves together; family and success. Following in suit, Goins has seamlessly merged his love of successful real estate investing and his love of educating into a dream job. He works with a large team of professionals who are all as excited about real estate as he is. Based in his scenic hometown of Lake Wylie, South Carolina, The Goins Group focuses on education while his Investors Rehab is all about actively buying and selling a lot of real estate.

A published author, his first book, Real Estate Day Trading, is available in bookstores everywhere. HUD Homes Half Off, his newest release, is available on Amazon and through his website. In his free time, Goins regularly hosts seminars, webinars and gives interviews as a way to motivate other investors to get serious about their money. Goins’ real estate blog is full of well-crafted tips for new and seasoned investors.

An apprenticeship in real estate investment is the best way to describe what Goins and his team offer students. You can’t get a college degree in real estate investing, but, Goins says, “you can latch onto someone experienced whom you trust to start learning.” He and his team, in many ways, operate like a trade school. There are books to read, active mentors, seminars and real-world investing experience through Investors Rehab.

For investors looking to get started or looking for a new edge, The Goins Group aims to serve. Each week, the business advisors Larry trusts to work alongside him in his office, check in with students to touch base, answer questions and provide some motivation. Goins says he too gets on the phone and talks to his students whenever necessary.

The skills his investors learn, Goins says, can change lives. “Real estate is what you make of it”, Goins explains, and his programs work for everyone; his clients come from all walks of life. One of his students, Alon, a pediatrician currently living in New York City, is working with Larry to diversify his investments and bring in some extra cash flow. Another client is a former prisoner who was able to change the direction of his life forever. “Do your techniques work?”, I ask. The proof is in the pudding: the hundreds and hundreds of letters and video testimonials that Goins and his team proudly receive each year say it all. As an active real estate investor, Goins has a simple approach to buying real estate; his philosophy is one that most investors can rally behind, “I buy houses. I don’t get sold houses.” Goins says people often say to him, “Wow! That’s a great deal. Where’d you find it?” goins explains, “I tell them: it wasn’t a good deal when I found it. We created the deal.” Investors Rehab, the investing arm of his business, attracts all types of investors. Whether it’s an investor looking for a great deal or someone he’s mentored, Investors Rehab has no shortage of buyers.

To create such good deals, Goins and his devoted team are always on the hunt for property to buy. He estimates they make a jaw-dropping 2,000 to 3,000 offers a week; they purchase 10-15 properties a month through their office. Once an offer has been accepted, his dedicated team gets three repair estimates and conducts a comparative market analysis. The properties Goins buys and sells aren’t “turn-key,” he says, they are what he has dubbed, “learn-key.”

Learn key? “That’s right,” Goins tells me, “Learn-key means you learn as you earn.” Investors buy properties for great prices that need a bit of work, and thanks to the research the Goins team does beforehand, they know about how much work will be needed before a property is rental-ready or can be flipped. The legwork goins’ team does takes away some of the risk for new investors and is a great help to seasoned investors. “Learn-key properties come with instant equity while turn-key properties come with instant cash flow”, goins explains. He wants investors to get the most equity they can out of a deal. Simply stated, learn key teaches investors to fish whereas turn key gives investors the fish.

Larry Goins, and his career in real estate, stand apart from the rest. His continuous drive to perfect his craft, learn better ways of doing things and new challenges to win is both inspirational and rare. Though his son and wife have an obvious interest in real estate, perhaps his daughter’s interest in horseback riding indicates that she too hasn’t fallen far from the Goins tree either; in both real estate and riding, there are always different horses to tame, new challenges to tackle and techniques that can be improved upon.

“Keep Learning. Take action.” Goins says. Just as in horseback riding, in real estate you can’t go far unless you saddle up and start riding. Since this is an article about a man driven to help others, it should come as no surprise that he’s decided to offer our readers his book about buying HUD Homes Half Off free of charge to our readers. Think of it as a nudge to take action from Larry himself.

To receive your copy, simply visit Amazon or get your free copy via this website: http://freehudbook.com/

Taking Title

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By Garrett Sutton, Esq.

houseTitle to real estate sounds grand. As you think of titles let your mind wander back again to medieval England when titles such as Baron and Duke meant you were part of the nobility and peerage system. And not coincidentally, if you had such a title you also owned land. As our legal systems evolved, real estate title–the means by which you owned valuable property rights – remained ever so important. Because title conveyed power (and with power came corruption and fraud), a system to accurately record the chain of title developed. Over time you had to defend your title with the proper paperwork. The ‘checking system’ that evolved means that there are two steps for the transfer of title.The first step is the granting of a deed whereby the grantor transfers the property to the grantee. An investigation of the sequence of deeds to establish an accurate chain of title is then performed. If the grantor actually has clear title, according to the public records, a policy of title insurance may be issued and the property transferred. (Please note that property can be transferred without title insurance but that most banks won’t take the risk in making a loan without it.)A noticeable break in the chain of title means that the buyer–even though they believe they are the rightful owner–can be subject to the possible claims of others contesting the title. It can also mean that the property is now very difficult to sell, because future potential purchasers don’t want any doubts about clear title.

Accordingly, title insurance is important. Before insuring you against the risk of future claimants, a title company is going to check the public records to see if there are any troubling gaps in the chain of title. If gaps exist they won’t issue a title insurance policy. If they won’t issue a policy you won’t buy the property. It is that simple. Follow their lead. Transferring Title

The specter of title insurance affects the way you will transfer title to property.

There are two ways to transfer title:

1. a grant Deed. this deed (or ‘Warranty Deed’) implies or warrants that:

a. The Grantor (the person granting the property) has not transferred the property before, and that absolute ownership (‘free and clear’ title) is conveyed.

b. Unless the Grantee (the person receiving the property) agrees otherwise, the property is free from any liens or encumbrances against it.

c. Any after-acquired title (ownership that goes to a Grantor later) is also conveyed to the Grantee.

2. a quit Claim. this much weaker deed only:

a. Transfers whatever present right, title or interest the transferor may have. (If the transferor doesn’t have any rights, neither do you.)

b. No warranties are made as to any liens or encumbrances. (So if there are undisclosed mortgages against the property it’s not the transferor’s problem – as it is in a grant deed. Instead, it is now your problem.)

c. No after acquired title is transferred.While often advocated by promoters as the easiest means for transfer, the quit claim deed is not your best choice. First, know that in many bank involved ReO (real estate owned) transactions the ReO lender selling a foreclosed property will only use a Quit Claim deed.

Why is this?

It is because the lender has no idea what happened on the property prior to foreclosure. During the boom documents were not properly kept or transferred, the banking industry’s MeRS electronic recording system failed to keep up with it all, and many documents were just plain lost. This is no way to maintain a good chain of title on the nation’s real estate.

It was so bad in 2009 that a large national title company announced it would no longer issue title policies to two large national banks. These lenders’ records were just not trustworthy, and the title company was not going to take the risk. Know that for years to come there are going to be title issues arising from the real estate collapse in 2008.

It is for this reason that sellers (mainly banks) of foreclosure properties are using quit claim deeds. They don’t know what happened and they aren’t about to warrant or guarantee that they have a clean title to convey to you. The quit claim deed they use instead says, “We don’t know what we’ve got but whatever we’ve got we’re giving to you.”

What is offensive is the lengths that some of these lenders will go to get you to bite on a quit claim deed. They will tell you that it grants you full rights to the property. It doesn’t, because neither you nor the bank really knows what those rights are.

To further get themselves off the hook after taking your money for the property these banks will bury the fact that they don’t warrant good title in an Addendum at the end of a sixty page contract. They want you to waive any rights you may have in the matter. They may or may not know that the title is so defective that the property will be severely devalued. But they want you to release them from any future problems and sign off that everything is okay. There have been reported cases where the Addendum is intentionally withheld and only provided to you at the closing. (You know, at that last meeting at the title office where you are expected to sign 47 documents without reading them.) Accordingly, please be very careful and have your own attorney review such transactions.

The second reason a quit claim deed is not preferred is because the quit claim deed severs an express or implied warranty of title. (Remember, you are just granting whatever you may own which may be something, or nothing.) As such, the title insurance doesn’t follow. While this may not seem like a big deal, let’s consider an example.

garrettYou buy a property in your name. Part of your closing costs includes a policy of title insurance. Several years later you want to transfer title to an LLC for asset protection. Your friend says a quit claim deed is the easiest and quickest way to go. You file the quit claim deed and now the property is titled in the name of your LLC. Later, you learn that the boundaries weren’t properly surveyed. You seek recourse from the title company since they insured the boundaries were correct. But you now learn that by quit claiming the property into your LLC you have unwittingly cancelled your title insurance policy. The boundary issue is no longer insured.

The way to avoid this problem is to use a grant deed or a warranty deed. A title insurance policy isn’t extinguished in such a transfer. As well, a grant deed is just as easy to prepare as is a quit claim deed. But in either case, remember that easy isn’t always best. If you are not an expert at title transfers, I would have a lawyer or title company handle them.

For more information on this and other title matters, please read my book Loopholes of Real Estate or visit: www.CorporateDirect.com

Why do We Seek Security? (And how a Land Trust can help us find it)

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By Randy Hughes,

“Mr. Land Trust”

We all want it, we all need it, and we all look for it in every aspect of our lives…security. We seek security in our relationships, in our personal lives and in our financial lives. But why? What is it about feeling “secure” that makes this emotion the base of all human needs?

Have you ever been out late at night on the streets and found yourself in fear for your life? Or, maybe you have experienced the fear of foreclosure, lawsuits, judgments, liens or financial doom? Sure, we have all felt fear in one form or another, but facing your fears and taking action to reduce or avoid fear is what a mature person does. As a parent, I know it is my job to protect my family from all threats (personal or financial).

Security is the opposite of fear. Our primal instincts teach us to fear the unknown and protect what we have. Because the loss of what we have (or will have) makes us feel insecure. Nobody likes to feel insecure. As real estate investors we think differently than the average citizen. We take on more risk to ourselves and our family for the possibility of a brighter future. Risk and security are opposites. Yet, as investors, we try to balance these two concepts to yield maximum results with minimum loss.

Finding security in your financial life will help you find security in your personal life (how many divorces result from bankruptcy or money problems?). Personal security and financial security are intertwined.

So, what does “finding security” have to do with using a Land Trust to hold title to your investment property? A lot. When you hold title to investment real estate in a Land Trust you do not own the real estate…you own the Trust.

Not holding title to your real estate in your personal name keeps you out of the public records (your Trustee’s name is in the public records instead). Ninety percent of the information gathered about you (and often used against you) is mined through the public records in your town. Always ask yourself before signing any document, “Is this going to be recorded?” And, if it is, try to find another way to proceed.

Should you use an LLC to hold title to your investment property? Absolutely NOT! Yes, I use LLC’s and they are good asset protection devices (as long as they are formed in the right state…which is not necessarily the state YOU live in or your property is located in), but LLC’s are registered with the State and are easily tracked. Putting more than one property into any entity (LLC, Corporation or Land Trust) will create a nexus for a lawsuit. Most (smart) real estate investors will title each of their properties in the name of a separate Land Trust and then make the beneficiary of the Land Trusts their LLC.

Imagine how secure you would feel if you went to bed tonight knowing that you did not “own” any real estate. There are NO benefits to owning real estate in your own personal name…only risks. If you use a Land Trust you will still receive all the same tax benefits, etc. So, if you are feeling insecure and doubtful about owning investment real estate please consider a Land Trust. To reduce the risk of owning real estate and increase your feelings of security, use a Land Trust. You (and your family) will be glad you did.

It is difficult to convey all of the benefits of using a Land Trust in a short article like this. I have been using (and writing about) Land Trusts for the last 37 years.

If you would like to learn more about how to create your own Land Trusts, for FREE training go to: www.landtrustwebinar.com/411 or email me at: [email protected] for my FREE booklet, “50 Reasons to Use a Land Trust” or contact me the old fashioned way by calling 866-696-7347 (I actually answer my  own  phone!)  Randy  Hughes,  aka, Mr. Land Trust™

Finding Residential and Commercial OPTIONS in PROBATE REAL ESTATE

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By Leon McKenzie, U.S. Probate Leads

Whether you are new to the probate business or consider yourself an experienced professional, there are times when you need to take a step back and make sure that your business model isn’t missing a potentially profitable option. Probates, with their deeply discounted prices and motivated sellers, can provide opportunities that you simply can’t find elsewhere. These properties exist in a wide variety of formats, from small residential properties, to dream homes to office buildings, and even strip centers and warehouses. There are many ways to find residential and commercial options in probate real estate.

WHY CHOOSE PROBATES?

In thinking about probate real estate, it is important to understand why so many investors are now specializing in this industry. While there are many options in real estate if you choose to become an investor – everything from foreclosures to working with traditional buyers and sellers – there are few areas that offer the deeply discounted prices and flexible terms that can be found in probate work.

The selling of probate real estate and other property is handled by a court appointed representative, called an Executor. This individual can be a family member, trusted friend or professional, such as an attorney or an accountant. As part of their responsibilities, they have to find buyers for the property that was left behind by a family’s loved one. The proceeds from these sales go to not only the family members, but to pay taxes, court costs, medical bills, funeral expenses, and other items such as past due credit card charges. This property needs to be dealt with in order to pay for these financial obligations.

The process to buy or sell a probate home is much the same as many other types of properties. Brendan DeSimone said, “In a probate sale, the property is marketed just like any other property. The probate attorney or the estate representative will hire a local real estate agent, sign a listing agreement, and show the property, just as they would a traditional listing. Generally, the list price is based upon the listing agent’s suggestions as well as an independent appraisal ordered and issued by the court.” During a private sale, there would be no court oversight, but in a probate sale, there is a need by the Executor to quickly find buyers and get the property sold. This is one reason that the pricing can be so flexible in probates. Additionally, if the Executor lives out of state and tires of coming back to deal with estate issues, they may be willing to take a lower price on a property if the terms are favorable and allow them to wrap up the probate more quickly.

WHY LOOK AT BOTH RESIDENTIAL & COMMERCIAL REAL ESTATE?

What many investors don’t appreciate is that there are far more options in probate real estate than just single family homes. While there are many investors that specialize in residential real estate, there are also ways to profit in commercial land and buildings.

Residential real estate has some obvious advantages. There is more demand for residential homes; and therefore, it is easier to find properties that may fit your investing profile. Investing in a single home is also more affordable as the price point for a residential property is generally less than the investment in a commercial property. Luba Muzichenko writes, “Probate sales are ‘as is’ sales, and… the estate does not have to disclose anything about the property. Does that mean you have to make an offer on the place blindly? Not a chance! You have every right to fully inspect the property. Bring a contractor, bring a friend, bring an architect, bring your mother! It doesn’t make a difference who you bring, just be sure to bring them BEFORE you write your offer. Also, one thing to keep in mind… with your offer, you will have to submit a cashier’s check for 10% of your offer price, payable to the estate.”

There are cases where you can have the property professionally inspected. Everything depends on the laws of the state that you are working in, the terms of the probate and the desires of the court. As you are learning the probate business, take the time to find a mentor who can help you to understand the process of a probate sale. Part of that process is the submission of earnest money. This deposit is traditional in any real estate transaction and applies to both residential and commercial real estate. The amounts in commercial real estate would obviously be higher due to the increased purchase price.

While some investors focus on residential real estate, there are options in commercial properties as well. In fact, one of the most profitable areas in probate is working with commercial real estate. The researchers at Inc., said, “Buying commercial real estate is a complex undertaking that is difficult even for experts to time right to maximize their investment value, let alone entrepreneurs or business executives whose areas of expertise are in different industries. It’s also a venture rife with risk, as buyers, sellers, agents, and renters alike can suffer the consequences of a dip or spike in demand. At the same time, for a business, on the upside the potential rewards can be substantial.” If you are interested in a “substantial” reward, as the authors indicate, then commercial might be for you.

What kind of commercial properties might you find in a probate? If an individual owned a business or was a real estate investor and held them personally, then the properties may end up as part of the estate that is being handled by the court. These properties may include everything from apartment buildings to undeveloped land, strip centers, office buildings, stores, restaurants, warehouses, industrial properties, doctor’s offices and medical facilities to malls and hotels. There is a wide variety of buildings that are considered commercial property with an equally wide range of pricing. Each of these properties has advantages to the investor depending on what your long term goal might be.

One of the best advantages in business property is the increased income potential that is present in commercial real estate. Matt Larson said, “The best reason to invest in commercial over residential rentals is the earning potential. Commercial properties generally have an annual return off the purchase price between 6% and 12%, depending on the area, which is a much higher range than typically exists for single family home properties (1% to 4% at best).”

Knowing that there are both residential and commercial options in probate real estate investing is one thing. Finding them is something completely different.

HOW TO FIND OPTIONS

Probate real estate investors have discovered that there are key ways to find out about residential and commercial options. Here are a few of the ways:

  • USE A LEAD SERVICE. There are professional services that are available that can give you the information you need in order to pursue properties in probate. While you could go to the courthouse yourself and look through documents to try to identify which leads are worth pursuing, you can save yourself a lot of time and frustration by having a lead service deliver that information right to your email. These services are both economical and helpful in that they provide information you might not otherwise find on your own.
  • REAL ESTATE AGENTS. You can work with a real estate agent in order to find a residential or commercial property. Said Muzichenko, “Most probate sales end up listed in the Multiple Listing Service (MLS), but those that don’t are listed on the BlueSheet, which can be found at the California Superior Court in San Francisco. Of course, if you are a buyer working with a REALTOR® that knows you are interested in probate property, your REALTOR® will do the searching for you.”
  • CONTACT PROFESSIONALS IN THE FIELD. As your business develops, you may want to work with local estate attorneys or accountants. They would have firsthand knowledge about properties that may become available due to a change in family status. Building a relationship with them and offering them a finder’s fee can be a great way to add to your portfolio.

THE BEST WAYS TO FOLLOW UP

Once you do find a property that you are interested in pursuing, the next step is to follow up. Generally, probate investors have found that a professional letter directed to the Executor is a good way to start the conversation.

There are several critical components to your communications with an Executor. A short introduction of who you are and why you are contacting them is a good way to start. Adding information about what you do and how you can help them may spark some interest. Inserting a comment about how you found their information, such as, “Your property was listed as part of a search I was doing through public court documents,” will help them to understand that you are simply contacting them to see if they are interested in selling their home or commercial property. Make sure to add in all of your contact information, including your email, website address and cell phone number so that they can reply to your letter.

Understand that an Executor may not contact you after one mailing. Plan to follow up every thirty to forty five days for a period of about six months. These repeated mailings to residential and commercial Executors will help establish you as a serious investor and will be respectful of the many steps that these administrators have to take to close an estate. When someone does reply to a mailing, call them back right away. Once they have made contact, they are clearly ready to have a conversation, so promptness is key.

Finding the best options in residential and commercial probate real estate is a blend of knowing what you are looking for and reaching out into the community. While residential real estate may have a lower sale price, it may also not yield the same rents and income that a commercial property might. Take this into consideration when deciding about your next property. 

For more personalized advice, call the team at US Probate Leads. We offer a professional lead service that can get you the most up-to-date, viable leads for the counties that you work in and provide additional support. We offer a wide range of tools that includes communications software, ebooks, webinars, seminars and even an individualized mentoring program. When you are ready to take your business to the next level, call (877) 470-9751. We can give you more information on how we can help you build your probate real estate business.

Turning DISTRESS Into SUCCESS in the Paper Business

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By Tim Houghten

Distress has a unique way of polishing success.

Much like the abrasive grain of sand that results in the development of magnificent, beautiful pearls, the trials and tribulations of the mortgage industry are now revealing their silver lining.

While the pain of foreclosures, an economy in rehab, and building a business in turbulent times shouldn’t be minimized, the tests we’ve been through are being turned into something positive by those that really care, and are willing to put in the effort.

Fuquan Bilal, founder of National Note Group, knows this better than most. While some media outlets have posed that distressed property is declining in America, as of February 2015 there were almost 5,000 banks holding over $150 billion in non-performing mortgage notes, $600 million of this pool are newly defaulting real estate loans. National Note Group has been working to not only help heal the economy, and offer investment opportunities to help individuals get ahead, but has been going to extreme lengths to turn distress into sustainable success for homeowners.

Recently, in an exclusive interview Fuquan Bilal provided some of the most transparent, and detailed insight behind the scenes of the mortgage note industry.

“THERE’S A HEARTBEAT IN EVERY HOME”

While some funds, firms and individual real estate investors have purely seen the financial struggles of American homeowners behind on their mortgage payments, or in foreclosure as an opportunity to seize more property and make a quick buck; National Note Group’s founder says his firm takes a very different approach.

Bilal says it is crucial not to forget that “there’s a heartbeat in every home,” and how “devastating” foreclosure is. NNG goes to great lengths not to foreclose, and to find winning, and sustainable solutions for both homeowners and investors. In fact, Bilal says out of hundreds of loans purchased in 3rd and 4th quarter of 2014, the firm had just six REOs on the books in first quarter of 2015.

Going beyond simply offering loan modifications to borrowers, National Note Group’s team has gone to great lengths to aid them in improving their finances so that they can hold onto their homes, and enjoy a brighter future. This has reportedly included “helping individuals leverage smarter spending and personal finance, without becoming miserable by switching to more affordable  services like Netflix and Metro for phone and TV, assisting in job searches and arranging interviews for the unemployed, and even helping those with homes that are now too large to strategize renting rooms to students for extra income.”

Harnessing an Elite Level of Focus

So how does Bilal manage it? Clearly, consistently maintaining a clear level of focus, effectiveness, and creative strategic thinking that can deliver on the above without becoming burned out, and operating a multi-million dollar business that juggles hundreds and thousands of second mortgage loans, and provides double-digit returns to investor clients requires a lot more of a CEO.

Among his secrets to enhanced performance and success Bilal tells us his daily routine includes: “Starting each day with 24 minutes of meditation; one minute for every hour in the day,” as well as “daily exercise, and practicing time blocking.” The founder says turning these practices into regular habits just like brushing your teeth every morning makes all the difference in staying on track. It helps keep you refreshed and charged, though Bilal says it also helps when you are really passionate about what you are doing. In this expert’s case he says he doesn’t feel like he is really working at all, and often hops out of bed in the middle of the night with new ideas and strategies for helping homeowners.

However, the National Note Group executive says that he absolutely relies on having an amazing team for executing on all of the company’s objectives. Bilal describes his approach to leveraging top industry talent not only by offering good compensation, but by embracing “working with people smarter than me, treating them as partners, not employees, and giving them the authority, and creative liberty to be their best.”

When You’ve Got Warren Buffett Size Problems

When you are tackling a national challenge that dwarfs Warren Buffett’s wealth it requires a great system.

The distressed mortgage market is massive, and even when you are capable of raising millions rapidly like Berkshire Hathaway and National Note Group, you’ve got to be able to deploy capital fast, and efficiently in order to maximize investor returns, and the potential of your organization.

Bilal says that he tackled this challenge early to ensure scalability, speed, and efficiency by getting serious about Process Mapping. He explains that by “documenting processes the first time around, leveraging Microsoft Excel, and better managing data – the firm is able to hire and scale effectively, eliminate human error, and operate leaner and more profitably, with better margins than others.”

It is from this vantage point that Bilal says the firm is able to provide better service, financial strength and security, more investment and portfolio tracking tools, and advanced training through the NNG Academy.

For more information, please visit the firm’s new website, tools and trading desk at www.NationalNoteGroup.com .