Nobody deserves to be treated like CR@P! Especially not when you’re a small investor looking to build generational wealth, not when you’re a borrower fighting to keep your home, and not when you’re a lender who went out of your way to help someone in distress. Unfortunately, the current world we live in isn’t as caring as we want it to be. More often than not, you’ll get your feet and back stepped on by all sorts of people. Sadly, the usual consequence, for having experienced that kind of traumatic incident, is getting your hopes for a better life crushed. Worse, you get the idea that conducting business or uplifting your quality of life means fighting fire with fire. Fortunately, we’ve got Martin Saenz to dispute both of those ideas! Martin Saenz is a Managing Partner and Co-Founder of BeQuest Funds, a fund management company specializing in high-yield, diverse, re-performing residential mortgage notes portfolio. At the core of their success is their mission to help investors grow their wealth and to help borrowers keep their homes. Renowned as a thought leader in the mortgage note investment industry, Martin is generous with his firsthand expertise, to the benefit of his many clients and followers. Genuine, loyal, and passionate about creating a better world through profitable business, he works hard to share and spread success. Martin owned and operated multiple successful companies prior to launching Bequest. A successful entrepreneur and real estate investor for over 15 years, he brings a high level of strategy and experience to the Bequest model. He has directly helped over a thousand families stay in their homes, and countless more through the influence of his mentorship. Martin believes that everyone has a shot at creating a better future for themselves and their families – all without resorting to underhanded tactics, but rather with genuine care and compassion - an idea he best exemplifies through leading by action. What is Mortgage Note Investing? What strategies ascertain high-profitability in this mode of investment? How does genuine care positively affect their business model? Learn more from the source! Check these out to learn more about Martin Saenz and BeQuest Funds: Website: www.bqfunds.com Books:- Note Investing Made Easier by Martin Saenz- Note Investing Fundamentals by Martin Saenz- Cashflow Dojo by Martin Saenz Thank you all for listening and I will see you on the next episode. When you're ready, head on over to https://billyalvaro.com https://billyssecrets.com To get some neat (and FREE) Tools | Tips | Tricks to help you in REI!
Nobody deserves to be treated like CR@P!
Especially not when you’re a small investor looking to build generational wealth, not when you’re a borrower fighting to keep your home, and not when you’re a lender who went out of your way to help someone in distress.
Unfortunately, the current world we live in isn’t as caring as we want it to be.
More often than not, you’ll get your feet and back stepped on by all sorts of people.
Sadly, the usual consequence, for having experienced that kind of traumatic incident, is getting your hopes for a better life crushed.
Worse, you get the idea that conducting business or uplifting your quality of life means fighting fire with fire.
Fortunately, we’ve got Martin Saenz to dispute both of those ideas!
Martin Saenz is a Managing Partner and Co-Founder of BeQuest Funds, a fund management company specializing in high-yield, diverse, re-performing residential mortgage notes portfolio.
At the core of their success is their mission to help investors grow their wealth and to help borrowers keep their homes.
Renowned as a thought leader in the mortgage note investment industry, Martin is generous with his firsthand expertise, to the benefit of his many clients and followers. Genuine, loyal, and passionate about creating a better world through profitable business, he works hard to share and spread success.
Martin owned and operated multiple successful companies prior to launching Bequest. A successful entrepreneur and real estate investor for over 15 years, he brings a high level of strategy and experience to the Bequest model. He has directly helped over a thousand families stay in their homes, and countless more through the influence of his mentorship.
Martin believes that everyone has a shot at creating a better future for themselves and their families – all without resorting to underhanded tactics, but rather with genuine care and compassion - an idea he best exemplifies through leading by action.
What is Mortgage Note Investing? What strategies ascertain high-profitability in this mode of investment? How does genuine care positively affect their business model?
Learn more from the source!
Check these out to learn more about Martin Saenz and BeQuest Funds:
Website: www.bqfunds.com
Books:
- Note Investing Made Easier by Martin Saenz
- Note Investing Fundamentals by Martin Saenz
- Cashflow Dojo by Martin Saenz
Thank you all for listening and I will see you on the next episode.
When you're ready, head on over to
To get some neat (and FREE) Tools | Tips | Tricks to help you in REI!
SUMMARY KEYWORDS
mortgages, buy, investors, investing, fund, note, people, homeowner, pay, business, property, martin, pool, money, capital, loan modification, raising, deal, unstoppable, real estate
SPEAKERS
Outro, Billy, Martin
Billy 00:00
What's going on everybody? Welcome back to unstoppable Rei wealth. I'm your host Billy Alvaro, and this is episode 73 today I have a little bit of a spin I'm interviewing a gentleman by the name of Martin Saenz.
Martin has a fun called the quest funds Martin has been doing note investing nationally for the for the last nine years really interesting conversation because as a majority of the people who are listening to this show and who do investing it's either fix and flip or apartments or wholesaling and he's actually making a shit ton of money by helping out consumers by buying defaulted mortgage notes and then modifying them and really keeping the people in the house and he's buying this such a steep discount just like we would buy properties at a major discount he's buying these notes at a serious discount and then turning it into like ridiculous cash flow and then he has a fund that actually buys performing notes and he pays net fun 9% consistent so look if you if you have you interested in doing note investing or if you want to get into investing we go in for the first like 2530 minutes of how he started his fund what it's set up like what you would need to do if you wanted to do it and then the last couple of minutes we speak about the fund that he has and about the money that he's raising for it really interesting conversation good guy extremely knowledgeable, humble, like myself, he went through some hard times you know basically lost everything in iOS six crash and it prompted him because he was he was dealing with his own personal foreclosure and the banks treated him like such shit that he went out and decided he was gonna go out and turn this whole business around. He's doing just a marvelous job. So hope you guys enjoy Episode 73 of unstoppable Rei wealth.
Welcome to unstoppable real estate investing wealth. My name is Billy Alvaro, aka the unstoppable VA. Over a billion-dollar mortgage banker gone bankrupt turn professional real estate investor, where each week you'll learn the tools, strategies, systems, and secrets myself and other highly successful real estate investing entrepreneurs used to start, grow and scale their businesses creating massive profits and how you can too, and we'll teach you how to put those profits to work. So you no longer have to get ready to finally experience financial freedom and generational wealth. Now let's get started. What is going on everybody? Welcome back to another episode of unstoppable REI wealth. I'm your host the unstoppable VA Billy Alvaro here to bring the heat with my guest today Mr. Martin signs before we get to introduce a Martin, if you're new to the show, this show is going to educate you on how to start to grow and or scale your real estate investments. We're going to give you the tools and tips and tricks, strategies and secrets that I use, and all my guests us to really get them to where they are, where they work, where they want to go. And today's special guests with Martin he brings a unique spin to this whole thing, right? We speak a lot about marketing and sales and generating leads and growing your real estate portfolio and going out and, you know, fixing and flipping and wholesaling. He brings a unique spin because he's on the other side of it, where he's actually raising money for mortgage notes. So Martin, welcome to the show, brother. How are you doing?
Martin 03:07
Good. Thanks for having me on, Billy.
Billy 03:09
You're in sunny Cancun today on vacation with your wife.
Martin 03:13
That's correct. All the way from sunny Sarasota.
Billy 03:17
You're a Florida guy and you're in the hanging up. I appreciate you taking time out to make the podcast that's really cool to get that you didn't postpone it or reschedule
Martin 03:27
No, no, not at all. Not at all. And we're talking about my favorite topic mortgage note investing.
Billy 03:33
I love it. So what is mortgage note investing?
Martin 03:37
First and foremost, yes. So it can mean a lot of different things to a lot of people because there are various strategies by which to go about it. But for the purposes of, our hedge fund that I've operated for the past nine years, what we do is look for distressed mortgage pools. So these are mortgages where the payments haven't been made on the mortgages for four or five years. So we buy them at a discount. Let's say they owe 100,000 homeowner owes 100,000, we'll buy him at a discount for 30 40,000. And then we'll make a connection with the homeowner and work out a loan modification at par, which is 100,000. And so essentially this very similar process to a real estate flip, where you go in you buy the home and edit, you know at a discounted price, because it's in distress, and then you do XYZ to get it too after repair value. And we do the same thing on the mortgage side.
Billy 04:40
I love it. This is huge. You're not doing one-offs. You're actually going after pools of distressed mortgages.
Martin 04:47
That's correct. Yeah, we buy you know, multimillion-dollar pools on an ongoing basis.
Billy 04:53
How long have you been doing this?
Martin 04:54
I've been land-lording since oh nine which is about 13 years and I've been Doing mortgage note investing for nine years past.
Billy 05:03
So let's get into how did you got involved and started investing in this? What was that? Like? What happened? How did it start?
Martin 05:12
Yeah, so it started out? Well, I started out being broke like that, like I'm laughing that your intro video because you're like you mentioned the bankruptcy and that's like, that is so brilliant there to put it out there because none of us are perfect. Like we all go through trials and things in our life. And so my wife and I were dead broke, we launched a federal government contracting company and oh, five, selling goods and services to the federal government. And, you know, after three years of, just being unbelievably broken in the hole, we started turning the corner, started making money, we started buying real estate properties. We sold the government contracting company in 2013. And I was at a local Ria, in the DC area at the time, and I ran into a note investor. And I'm like, wow, I can buy mortgages from Starbucks, you know, with a cell phone and a laptop all over the country. And I can make contact with the homeowners and create these loan modifications that create cash flow. And I was just hooked from that point.
Billy 06:21
I love it. So take us into how you got started with that. I'm thinking in the beginning, you started off with one-offs buying individual notes, or did you go right into buying pools?
Martin 06:31
So my first purchase was a pool of 10 mortgages. They were senior mortgages in Ohio. And so I started out buying 10 mortgage notes. I had no experience buying, I had no business buying and that got a very expensive education.
Billy 06:51
Usually, that's what happens with all of us, right? Yeah, it's kind of got set no fire in that aim.
Martin 06:57
Yeah, yeah, it was funny, like, there was one of the 10, where I actually got a loan modification. And that 10% of the pool was what motivated me to go on. And that was the one deal. What I learned from that is that there are two ways to go, there are two ways to exit in the mortgage note industry when you're buying distressed mortgages, and that as you exit through the property, will you take it back through foreclosure deed in lieu etcetera, or you exit through the homeowner. And I learned very early on that all I wanted, my sole focus was to keep the homeowner in their home, while creating a long-term cash flow stream for myself.
Billy 07:41
Smart man. So tell us then what is your methodology or process or your strategy for buying these notes? Because you came in at the beginning? You know, you made some mistakes, you probably didn't know how to analyze these things like what to look for. So when you're doing this strategically, as a business as big as you are, what do you look for in a pool in order to make it an order for you to know that, hey, this is a going to be a good investment, and be like, how do you even figure out what to bid on that pool? Like what's your, what's your analysis look like?
Martin 08:12
Yeah, so I'll say I'll start with what I didn't do initially because I think that will be helpful for those that may look to do this for themselves. And that is I came into mortgage note investing with the eyes of a real estate investor, a landlord. So my whole focus on the due diligence process was on the property itself, which is the underlining collateral. And that was a huge mistake because you get what you focus on. So if you focus on the property and buy based on the property with no thought to the homeowner and their ability to pay you every month, then you're gonna get what you get, which is the property. So it was when I started incorporating the analysis with the homeowner, you know, doing credit report analysis, skip tracing, bankruptcy searches, and I started delving into the homeowner to determine who the homeowner is in their ability to pay me, right if I purchased this asset, and also what the underlying collateral is in in the case, I do have to foreclose.
Billy 09:18
Alright, so I get that if you're doing one-offs, but if you're buying a pool of let's just call it $10 million of distress mortgage notes. How do you go about as a business to do that on a bundle of mortgages and one time because you're looking at two different pieces on multiple, you could have 100 200 400 Different mortgages and notes that are attached to a property. How do you do that at scale and quickly to identify, you know, what the property is, what the underlying asset is, and then more importantly about the individual themselves? How does what does that look like?
Martin 09:51
It looks like a very grueling acquisition process, which it is so a lot of companies at our level of purchase, they will you'd like spot-checking to make assumptions and build pricing matrix is based on the percentage that's going to fall out and all of that we don't do that we actually do an assembly line operation where we analyze each individual mortgage. We're pulling title reports. So we're understanding lien validity, lien positioning, we're doing a fair market value analysis where we're, we're using certain various data points and triangulate in those numbers, doing credit report analysis on each loan, as well as Skip tracing, bankruptcy searches, and then we, we compile all this data, and into our pricing matrix to go and price out pools and mortgages. We have a 20-person operation. So we have an acquisition team that we kick into place every time we have a pool of mortgages we're purchasing.
Billy 10:53
So you got this thing that was science, you systematize this shit?
Martin 10:57
Yeah, everything is there are policies and procedures for every step of the process.
Billy 11:02
Give me an idea, Martin, of how many mortgages you have right now that you servicing would that you're attempting the service that is under management.
Martin 11:11
So my partner and I, own privately without any investor capital, we own about $30 million worth of mortgages, which is about 1200 mortgages. And then we also own about $100 million in unsecured debt that was formally secured with real estate. And then we also own and we run and manage an income fund called the quest funds that we take on it's a 506 C reg D Income Fund, where we take on investor capital and pay a monthly return to our investors.
Billy 11:45
Got it? I don't want to get into that a second, I just want to dive a little bit deeper on the notes side. So a part of your due diligence, you buy these things, I'm assuming nationally, you get a pool, or they may pool into one state? Is it spread to others, multiple states? What does that look like your bid,
Martin 12:01
We buy in all the states. And when you receive a pool of mortgages, it's always, you know, spread out throughout the United States, and you want to diversify yourself that way anyway, there's, we buy in all states, at the end of the day, it doesn't matter to us, you know when once you have your process of asset management work out, it doesn't matter if you're feeding in a mortgage that's in a judicial state, where it's going to take you a few years to go through the workout process with the homeowner, or it takes you two months, like in the state of Georgia, nonjudicial, it doesn't matter because there's constantly mortgages at every phase of the cycle at any given time.
Billy 12:44
So yeah, that was gonna be my question. Like, I know, where I originate from New York. And now I'm in New Jersey, you know, those judicial states, in some cases to be tied to court for 710 years in the foreclosure process. So you'll still bid on those types of mortgages on those notes, rather than chose to fold the notes.
Martin 13:03
Absolutely, absolutely. We have, we have incredible workouts that occur, the balances are so large, and so yeah, New York's a great state. And also to it's just it matters, who you're aligned with, legally, like who your attorney is, and how good and competent they are. To run through the foreclosure process with the mortgage note.
Billy 13:26
Yeah, for sure. The attorneys can screw things up. What ways they want.
Martin 13:30
Oh, absolutely, yeah. Yeah.
Billy 13:32
So you're going through Martin, and you're analyzing this tell us how on your portfolio, not the ones through requests, but the ones that you're buying? How do you go about figuring out what you're based on individual mortgages that are in one huge pool nationally, you have traditional nonjudicial different phases of the foreclosure process. So what does that look like?
Martin 13:54
It's really based on the relationships and the past purchase pricing that, that we've negotiated, with other sellers. So we have we're very similar on the mortgage note side of things than to the real estate side. In other words, like, there's no retail space right now, in the mortgage note industry, it's all dead, for the most part, because the inventory inventories dried up. So same thing like on the, you know, unless you're getting pocket listings, or whatever, I mean, you can only fish through MLS so much, you know, to get really get some good deals. So there's not much so the real deal flow in our industry is between funds that are already in place where we all know each other. It's a very tight-knit community. And we've traded to the tune of millions of dollars with these trading partners over the course of the years. And so we already know pricing expectations. We have a sense of that. And in some cases, we've already pre-negotiated from a prior trade, and that pricing model will carry over into the new trade
Billy 15:00
Love it. I love it. It's a whole home of the world. Let's get let's flip over now, to the right. So you're raising capital? What does that look like? What does it, the investor? What kind of returns could an investor expect?
Martin 15:17
Yeah, so the quest funds is a $50 million income fund that we launched about two and a half years ago, there are currently about $20 million assets under management. And what we look for is really the type of investor we want to have good alignment, similar mindset to the investors that we bring in. So we're all about monthly income. We're all you know, especially in these inflationary times, I mean, there's, that's the best hedge against inflation put more money in your pocket every month. And we're all about the legacy play. And I heard legacy. I heard you know that in your intro as well. So I believe you're, you're in alignment that way. And so we're about in Evergreen income fund where you place one simple investment, and you receive monthly income for life at a 9% annual return paid to the investor on a monthly basis
Billy 16:19
That's paid out or principal and interest or just interest, what does that look like?
Martin 16:23
It’s just interesting, just because there's no return, there's no return of capital until redemption occurs. Got it?
Billy 16:30
How risky is this type of investing investor?
Martin 16:34
So the quest of funds, the Income Fund, only buys seasoned performing mortgages from the secondary mortgage market. Okay,
Billy 16:45
so this is a performing note fund, not a nonperforming good fund.
Martin 16:49
Correct isn’t performing any fun. So what happens is, in the secondary mortgage market, you have similar funds, like our private fund I mentioned that buys distressed mortgages, and we modify those mortgages and we collect we re-season that over the course of 12 months, 24 months. Again, these are good homeowners that just ran into a hiccup, you know, a divorce lost a job health issue. And they originally got a loan at Wells Fargo PNC Deutsche Bank, this is who underwrites the paper we buy. And they go through Fannie and Freddie underwriting guidelines, they meet the DTI, they meet all the other requirements, they just ran into a life circumstance. And they stopped paying, we've all been there. And so but then now they've they found love, again, they found a job, and they got their health back. And they just need someone to go and not strong-arm them, someone to be compassionate, to find out what they can afford. Now, we bought the mortgage at a discount, so we can make concessions, and we can work to meet with them for a win-win situation. And other there are other companies that do this and have a similar business model. And once that mortgage gets re-modified and seasoned again, the quest income funds will buy it into the Income Fund at an 11 to 12% yield by which we're able to pay out or 9% to our investors, even though the coupon rate is in the single-digit.
Billy 18:23
That was gonna be my question. So because you're buying it at such a discount, you're able to buy it, you're able to pay these investors 9% To the back end home order might be four or five. But because of that discount, you're buying it at you're able to pay the fine and you're still making the delta of you know, 2% On top of that.
Martin 18:42
Yes. And there's something, even more, there's something even beyond that. And it's our secret sauce, if you will, right. Like that's kind of cheesy to say that, but I said it's when you buy in at an 11 12% yield and the coupon rates in the single digits, it lowers your investment to value percentage. So our investment to value percentage is at 58%. So we always maintain as important as portfolio collectively, below 65%. So that's equity coverage. Oh, yeah. In other words, if we buy a home worth 200,000, I don't know if there are any $200,000 homes on the market now. But we're not going to be in that deal for any more than 130k. So if we have to foreclose, we'll get our money back. That's smart. But if we get paid off, we'll get paid off at par.
Billy 19:37
That's a great model, dude, like a really good model.
Martin 19:40
Thank you. Yeah, thank you. We think it's, I mean, I'm the largest investor in the fund. So we started this fund. It was really for my partner and me and our families. And we believe in this we believe in what we're doing is good for society. And we believe It's good for the investor.
Billy 20:02
It's good for everybody around. I like the fact that you're not one of these investors, that's just cutthroat you buy the mortgages, buy the notes, and you're just like looking to kick the people out. I mean, it says a lot about your personality and your value system. And I think that in and of itself, is going to propel your success next level because you have a conscious level of how you're dealing with people. And that speaks volumes of a person when they do that.
Martin 20:25
Thank you. Yeah, I think, you know, I was thinking about it, like, I don't know, probably a year ago. And I think what's interesting is, in 2006, when we, my wife, and I bought our house, and we got behind on our mortgage because we just couldn't pay anyone the lender treated us like garbage. And we got a new person, every time we called, they rejected us for a loan modification request. I mean, they miss, they're always missing documents that I sent in, like, everything in, it got me so frustrated and stressed. At the time, we started making money, I just cut a check and pay them off in full. And that felt very liberating. But I think that always kind of stuck with me. I'm like, people shouldn't be treated like garbage. And yeah, just the number of families and staff.
Billy 21:15
We've been there I was there to man 2000 689. I mean, I was in a world that shit. And the same thing, they don't care, you know, they just they don't come from a conscious level of caring more than tell me, tell me how you go about? What's your process for going out and actually getting investors to put money into your pool? Because you did start by saying you're the largest investor for you and your partner. But I'm sure you have a $50 million fund. I don't know if it's open-ended. So it's constantly. Yeah, so how do you go about marketing? Right to bring money into that fund? Talk about that?
Martin 21:46
Yeah, so you know, I'll say this, like, I've done it all, in the mortgage note industry, like, I don't know everything whatsoever. I'm not gonna say that. But I've done all the roles, if you will, I've sourced deals, I've done the underwriting, I've done the workouts, loan modifications, portfolio management, and raising capital is its own unique animal. And, yeah, I've had to learn it. And it's like joining the Marine Corps, going through boot camp, you know, you have to build a whole marketing engine, you know, we have a marketing director, we have an investor relations VP, and, and essentially, you know, lead generation that's its own, like, my goodness, I mean, yeah, we want to get the right people, we don't want someone just because they have money. Because if you take their money, and they're gonna give you a hard time, I mean, who needs that. So you want the right type of person that wants to build legacy wealth, something they can pass down to there, to their kids, or whomever and you want people that want more in life, and that are kind of striving, like you're striving and to find those people is tough, but I'll say like, you know, word of mouth is been good. I've written a few books on mortgage note investing. So a lot of the investors in the fund, we have about 70 people in the fund, a lot of them read my book on Amazon, and then they'll reach out. And what they find is, they don't want to, they don't want to build a noted business for themselves. Because I know I just gave you like the pretty version, like, Oh, you're modifying notes at par, blah, blah, blah. But there's compliance, there's regulation, you know, there's every state. Yeah, there's, that's a tough nut. It's a tough nut. And then so people were like, Look, I just want monthly income. I don't want all the nonsense. So then. So, you know. So I think the book is done great to bring people into this.
Billy 23:51
Yeah, it's smart, you know, writing a book, you're automatically perceived as the expert, and people going to read it, and they're going to come to you if they want to invest. And, look, everybody, in the beginning, wants to, I'm gonna go out there and start a note investing business. But when you get down to it, it's a business in and of itself. And it takes a lot of time, energy, and money in order to get that business started and then eventually launched. And I'm of the mindset where I know my lane and do what I'm good at. If I have extra dollars 100 here 200 There, I'm investing in not only my own business but in other people's businesses to diversify all generally real estate related. But you know, investing in other experts is the name of the game. Like you I have a ton of people that invest with me, in the commercial end with the apartments that we do and the single-family fix and flip the single-family buys and hold. You know, we pay eight to 10% coupon, and a lot of want to be in real estate investing, but when they get down to it, doctors, financial planners, dentists, they don't have the time necessary to go out there and become the expert in that field. So they'd rather just take the money and put it with an expert like us to put them to work. So when they you know, they don't have to work as hard as they are.
Martin 24:56
No, that's great. And you know, I bet we can swap it a lot of stories on capital raise, we get a lot of people that are just there in Wall Street, and they've been burnt out. And they're stressed. Because they're constantly looking at their phone to see what their portfolio is doing. They're constantly worried because, you know, this news report this, you know, consumer sentiment came out CPI is that here and, and so they live with a constant burden of stress with investing and investing should not be stressful if done correctly. So they get to us and they're like, I can just set it and not have to ever think about it and get a monthly, you know, get a month and worry about the ups and downs, rollercoaster ride, what's going on?
Billy 25:37
Listen, this is a good segue to my next question. You know, one of them when I read over your bio, I was talking, looking at how one of the questions is How do you handle economic downturns? And right now, right, we're at a shifting point in what's been, you know, for the last two and a half years, a really killer market? I know we can't do market predictions because nobody has a magic bullet to predict. But what are you sensing? Because you're buying naturally. Right? So yeah, what are you sensing on your end? And is this economic downturn going to be good for your business? And if so, why?
Martin 26:11
Yeah, so I follow certain economists that are not on the major cable news networks. And what I find with these individuals is I find I have some level of predictability in terms of where things go, I feel very confident in where we're headed. And I'll give you some of the names Lynn Alden, Joe Brown from heresy financial, Peter Schiff, you know, the money, the gold, the Gold Bug Guy, and, and a few others, and we're headed towards a major recession, in my opinion. And there's going to be it's going to create an abundance of inventory and abundance of opportunity. And so people should just be gearing up for it. And I also think there's going to be a shift of wealth too, to Bitcoin, a Bitcoin or I buy bitcoin every day, actually. And so I'm a big believer and, you know, the death of the fiat currency, from a global perspective and more governments shifting to shifting to have a Bitcoin backing their currency, and also gold backing their currency. Yeah. So I think we're headed towards a major recession.
Billy 27:25
And with that major recession, that's going to be a real good thing for the business that you and I are in, I'm assuming, correct?
Martin 27:32
Yeah. I mean, yeah, 100%, there's going to be more product, there's going to be more inventory that's going to come there's going to be more regulation as a result of what's scary. What's very scary is, is that is the empowerment that our current administration is wielding. And I predict, there's going to be another Cares Act, there's going to be more of those, because I think I think we kind of set the stage where we're landlords are going to be forced to defer payments, where, you know, mortgage companies are going to be forced this way. And I think that's coming because that's a popular thing. And it's, you know, there's a lot there's a segment of the voter community that likes that.
Billy 28:17
Yeah, it's insane how they hurt those that try to better the economy, and it's just overall hurting us. It's not helping, it's hurting.
Martin 28:26
Yeah, yeah, I mean, as you go into for payment. And then what happens when the moratorium expires, you know, the landlord, he's got to eat, or she's got to eat, you know, she's got a debt burden to pay every month too. And, and so some of that mom and pops, they start putting their house houses and properties up for sale, because they're done with it. And so there's less appetite for investors to want to take that risk. But if they take that risk, they're going to increase rents, accordingly to account accommodate the new risks that are on the table, which are going to cost more for the consumer. So all this is snowballing to help
Billy 29:04
It always and that's what they just don't get it always freaking cost the consumer more money in the end. They think they're helping and they're free. Yeah, yeah. What are you doing, Martin? Because I know, I'm with you. I think the recession looming, I think it's gonna be it's gonna hurt the economy, there's gonna be a lot of opportunities. What do you do to prepare for that with your business as far as raising money, and just your overall business strategy right now?
Martin 29:29
Yeah. So you know, I always kind of, and I talk to investors daily, because I'm always on the grind, raising capital. And I get asked this all the time, you know, what's the risk here with your fund? Because you don't know what you don't know. And people don't know enough about the industry. You can really assess the risk factors and I say, look, there are three risks and any type of investment. You know, forget just our funds. It's everything. These are three Mack Some things you should look at. One is who's the operator? You know, what's their experience? You know, do they have any civil lawsuits against them? Do you know? What's their background? That kind of thing? And what kind of team do they have in place? And then the second thing is, is what's the cap from a capital preservation perspective? How are they protecting my capital? So in our case, the equity coverage, that 58% investment value, that's critical because we show that we're going to preserve your capital. And the next thing is, how are we going to produce cash flow from the assets? Because if you're not producing cash flow from the assets, you're gonna produce it from new capital raised, which is called the Ponzi scheme. Yeah, and so and so you have to show that you're buying assets there that are going to cover the monthly nut to the investors. And so that that's very significant. So we have a chart where we show each month what we took in and total income versus what we paid out and monthly distributions to show that we are covering that nut.
Billy 31:04
Yeah to completely eliminate the objection that are you a Ponzi scheme.
Martin 31:07
Yeah. So I think that operators like us, we're going to have become more popular. I think there's just got to be because I mean, who can trust Wall Street? The federal government, the federal reserve? I mean, who has trust in those entities? I don't, I don't know.
Billy 31:27
I don't know what this was great for the what is the name of your books that we can point people to?
Martin 31:32
Yeah, my first one note investing made easier. Note investing fundamentals and cashflow dojo. I like that. Are you a karate guy? No, no but I did it as a form of you know discipline. You know, protecting your dojo.
Billy 31:50
Beloved grow with Martin This was great. So definitely stay in touch. I'll shoot you my cell phone after this. I have yours. Phenomenal and people want to find out about you and your fun. Where do they go?
Martin 32:01
Yeah, they go to BQ funds.com. That's BQFUND s.com
Billy 32:07
Beautiful brother. Really good chat with we appreciate you taking time out on vacation in sunny Cancun.
Thanks, Billy.
Outro 33:10
Thank you so much for listening to today's episode of unstoppable real estate investing wealth. My mission is to give you my listeners the blueprint for success the insider secrets for starting, growing, and scaling your real estate investing business. You could experience it and live an unstoppable lifestyle. I've made it simple for you to catapult yourself to success. Go to billysecrets.com at Bi l l y s secrets.com. There you will find every single tool, tip, trick strategy system, and secretly used to make millions of dollars in real estate. Everything my team uses and my guest use all in one place for you to tap into, to can start growing and scale your real estate investment business. I really hope you implement what you're learning. I hope you utilize these tools, tips, tricks, strategies, and secrets. And I hope to see you in the next episode. God bless bye bye