Josh (00:00:02) - Welcome back to the deal, Scout. We changed our format and we we put seven minutes on the clock and we talk with a deal maker about their deal and about their story. So I want to invite one of my friends, Shelby. Welcome to the deal, Scout.

Shelby (00:00:14) - Awesome. Thanks, Josh. Thanks for having me on. Yeah.

Josh (00:00:17) - You're welcome. Now you're in the world of podcasting and then you also do something else. Kind of give us an overview of the things that you do.

Shelby (00:00:23) - Yeah. So I'm here to mostly talk about our podcast, Naked Notes podcast. Um, myself and Jasmine Willa are the co-hosts for the podcast. And the podcast is supposed to be obviously it's called Naked Notes. So we are there to have fun. You, you know, if you come and listen, you will know we are very honest. We are very authentic. We try to be very organic in our conversations. And you'll hear Jasmine talking about text and naked to get, you know, a certain phone number.

Shelby (00:00:47) - And, um, so we try to have fun on the podcast, but really, we're here to talk about the financial world when it comes to mortgage notes, uh, passive passive income, um, private money, uh, funds. How really, uh, a really good summary to say if you're interested in making passive income or investing in the secondary mortgage market or really secondary market in general, we most likely will have a topic that you will relate to.

Josh (00:01:16) - Yeah. And it's called Naked Notes. Now, how did you guys come up with that name as you're thinking through. You could it could have been mortgage notes or private notes, but you chose Naked Notes for your podcast show. Yeah.

Shelby (00:01:26) - So Naked Nose is we want to be the truth. Like it's naked. Like we're stripping out all the fluff like it is. Come like, ask us any questions. Like we want to talk about the real stuff. Like we don't want to just talk about the deals that are like, all pretty and have a, you know, 15% ROI.

Shelby (00:01:41) - Like I want to also tell you about, like the deal that I lost six grand on last month. Like, I want to be honest. And Jasmine does the same thing. And so it's naked for a reason. Like come get naked with us. I don't know, like just just be it not not really. Keep your clothes on. But like, you know, just be honest with your deals. Like, yeah, honest.

Josh (00:02:00) - Please keep your clothes on everybody while you're participating in these media shows. All right. So in the world of notes, right. What for? For people who are interested in getting started in notes. What are some of the things that you say, you know, when you're coming to your podcast show? We're learning about that. So what's a good place to start learning about notes like what are some of the fundamentals that you look at?

Shelby (00:02:21) - I would say education is huge. So Jasmine has an education program called the Nat Nation or Node Assistance Program. I would 1,000% recommend you to reach out to her, and she's got an amazingly supportive community.

Shelby (00:02:35) - There are. She will be the one to tell you to. There's a zillion communities out there and a zillion people who can teach you about notes, including YouTube and the internet. But, um, the biggest advice is just get educated. I am learning new things every single day that is in the note space, so it's impossible to know everything, but at least educate yourself enough so you don't lose your butt on the deals, because you've got to at least have some knowledge of what you're doing.

Josh (00:03:02) - Yeah. Now, how did you get started in investing?

Shelby (00:03:06) - I got started because I had a rental portfolio that I was tired of managing and was looking to turn those into seller finance loans. So I wanted the tenants to buy the properties from me, and I was going to sell our finance them to them, and that one thing led to another. And all of a sudden, now I'm here trying to buy notes and originate notes. So yeah.

Josh (00:03:29) - They for people who get into note investing, they typically enter through this where they start renting and then they're dealing with tenants and toilets and they're like, ah, not for me.

Josh (00:03:39) - And then they get on the the money side of things. So being more on the money side, you're dealing with a different set of opportunities but also headaches. What are what are some of the biggest opportunities and node investing that you see from being a note holder?

Shelby (00:03:55) - The biggest opportunities I would say is, gosh, there's a few. But, um. Uh, alternative investing is coming to mind. Um, ways to invest your money in in avenues that the typical person doesn't really know about. So, um, and, and there's lots of ways to invest it, and there's lots of exit strategies surrounding those investments. So a lot of times when you talk to an investor who's just fixing and flipping a house, like they have one exit strategy, like they're buying the house, they're rehabbing it, and then they're going to sell it with no investing. There are a few different ways to make money. And, um, one is not better than the other, but there's an interesting strategy there of strategies there of multiple exit strategies and multiple ways to turn your investment into a profitable transaction.

Josh (00:04:44) - No kidding. Now, I from my purview, I see, you know, you can make money on interest, right? You can you know, you can maybe sell the loan to someone else and get get some, uh, get some money there. What other ways could there be or are those. Is that it?

Shelby (00:05:00) - So yeah. So the interest is huge. You're exactly right. That's the biggest thing that everyone looks at is what is the coupon rate or what's the interest rate when I'm buying a note. Um, obviously we want it to be as high as possible with the less amount of risk. So that's what everybody wants. Um, other strategies are some people buy and you'll hear all note investors want to buy non-performing notes. It's very, very common to um, everyone wants to buy a not everyone people who are looking in that strategy want to buy a distressed note so that they can then obtain the underlying asset that is pledged as collateral on that note. So that's a whole nother strategy, is to then acquire that property and turn around.

Shelby (00:05:40) - And um, whether you fix and flip it, you rent it, you wholesale it. There's another multitude, multitude of exit strategies there.

Josh (00:05:48) - Yeah. So you have the opportunity to buy a non-performing note at a discount. And then you could go and take the underlying asset. You could fix and flip, you can rent it, or you could flip it back to a performing note to someone else who might be, um, you know, better at making payments or, or whatever, right? That's correct. Yeah. So super interesting. So as you go through this process, uh, you know, you've learned a lot about note investing. And I want to give people an opportunity. If people want to know more about your podcast show, who's a good like who's a good listener, who who's an ideal listener for you guys?

Shelby (00:06:23) - I would say anyone from someone wanting to learn about notes. Um, we've got like this was our 10th season, so start from the beginning and you will educate yourself every season.

Shelby (00:06:34) - It gets a little more complex, a little more complex. So, um, if you're just beginner, start there. If you aren't a beginner, start later on like season seven, eight, nine. Um, this season, Jasmine and I are dedicating the entire season to just talking about what's going on with our, like, the updates in our personal businesses where we talk more about private money, hard money funds, uh, why you should invest in a fund, Jasmine's buyers club. So those are going to get a little more high level conversations. Cool.

Josh (00:07:01) - And that's Naked Notes podcast, is that right?

Shelby (00:07:04) - That's correct.

Josh (00:07:05) - Awesome, awesome. So everyone listening in head on over and check out Naked Notes podcast. Get them a raving review, subscribe, download and share with your friends. Learn about note investing and then come teach me how to do it. Hope you guys are having an awesome day. We'll talk to you all on the next episode.