Note MBA's video: Fuquan Bilal Collateral Assignment Hypothecation - Note Investing Podcast

Fuquan Bilal is one of the nicest guys you'll meet in the note investing space. If you're at an event, he's always available to answer questions, give feedback, or just rap with you about the industry. He's been on the show before, and now he's back to help us kick of May the Month of 2nds. We've openly talked on the show before about not having much experience in the 2nds space. So, we though now would be as good a time as any to bring some experts on to talk about them. We could hardly think of a better person to hit the show first than the one and only, Fuquan Bilal. Fuquan Bilal Fuquan has a great background in 2nds, something that we will openly admit to only knowing enough about to get ourselves in trouble. He has one of the best explanation of what a 2nd represents in the investment space. A 2nd is a high-end collection with security. He even drops one of signature lines, "Seconds come first." We cover a ton of ground in this second - get it, sorry it won't happen again- interview. An interesting aspect to his business that has changed since the last time we talked with him, is that he's decided to also start taking down pools of 1sts. He's also taking advantage of some local high-end traditional real estate flips and rentals. An important topic we discuss is how Fuquan approaches the business from a balance perspective. That is, how he's able to run the National Note Group, side real estate projects, family, fitness, etc. He talks about the importance of have business process maps. Ask yourself, "What if you had to hand this off?" This will get you in the mindset to understand how to hire staff or VA's, and what tasks to offload. We also touch base on his educational material over at NNG Note Academy. Collateral Assignment & Hypothecation Fuquan touches base on something that Dave Van Horn talked with us about, and that's using collateral assignments. This is an interesting strategy for people to use that mimics an often used bank strategy to leverage performing assets. During the Paper Source conference numerous people asked about this as a possible strategy in their business. So, it was great to here Fuquan talk about it in his business. The example Fuquan lays out is purchasing a $50,000 non-performing note for $12,000. After working with the homeowner, he's able to get them paying $400 a month. After that loan has been seasoned for one year, he'll go out to an investor and do a collateral assignment against that note. The collateral assignment is essentially the investor will lend you money against that performing asset for a set term. So, now he can go borrower $20-25,000 off this note he paid $12,000 for. And it all comes down to numbers and what you can negotiate regarding the terms on the deal. That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at ask@notemba.com. Listen & Watch this Week’s Show to Learn: We Have Our Second Interview with Fuquan Bilal Collateral Assignments & Hypothecation The Importance Of Systems And Process Maps How Vital Time Blocking Can Be As An Investor Why Fitness And Mediation Matter In Your Business And much more! Featured on the Show: Due Diligence Pro Dave Van Horn NNG Note Academy TLO Thanks for listening to our show! We’ll be back next Wednesday morning. Cheers, Chase & Robby