Be The Bank

003 - Good Passive Income

February 09, 2022 Justin Bogard Season 4 Episode 3
Be The Bank
003 - Good Passive Income
Show Notes Transcript

Be The Bank S4 Ep3 - Good Passive Income

On episode 3 of season 4, Justin Bogard interviews Richard Thornton. 

 Key Takeaways:  

  1. Invest Your Money Full-Time
  2. Security + Passivity
  3. Have a Custodian

 Resources and links discussed  

  About the Host

 Justin Bogard – Note Investor specializing in performing Residential Real Estate Debt. He finds deals and acquires them for his own portfolio as well as educates investors while walking them through the process of owning a Real Estate Note!  

  Connect with the Host: 

Justin Bogard:

Interested in real estate. How about wealth? Well, they go hand in hand and here you'll learn all about it, about it. Welcome to be the bank, a podcast where we discuss and debate the topics centered around real estate. Investing your host, justin Bogard shares insights into investing in real estate to create real from passive income for you and your family. He'll share stories of real estate investments done, right? Walk you through the process of owning a real estate note , and most importantly, educate you so you can be the bank , the bank . This is be the bank brought to you by bright path notes. Now here's your host, Justin . Bogard Welcome to episode number three. I'm Justin Bogard. And today we're gonna be talking about really what's What's like to be a note investor, kind of the journey and the life of the note investor, how active and passive is it really you'll find out in just a minute. This episode is brought to you by brightpath notes. Hey Richard, how are you doing, sir? Doing pretty good. How about you? Good,

Richard Thornton:

Good. I understand. You're getting a little bit of snow your way.

Justin Bogard:

Yeah, we are so out here in Indiana kind north of Indianapolis area, the , a band of weather coming through and we're gonna keep hitting with a lot of rain today. It's gonna turn into ice in a couple hours and it's gonna start to snow and we should get a good stream of snow for at least about 24 hours.

Richard Thornton:

Hmm . Well, I'm sorry to hear that . Although you may like it, kids like to go out and play it and , and things like that, but , uh , I'm not gonna be getting any snow north of San Francisco, so,

Justin Bogard:

Okay. Um, I do like it. We have had a very mild winter here, Indiana so far. We've had one , uh , okay . Snow and this is supposed to be a , a decent snow. We'll probably get between eight to 14 inches of snow. We're guessing, but I'll tell you tomorrow, Richard, what really happened? Okay.

Richard Thornton:

All right ,

Justin Bogard:

Richard, I wanna get into this episode , uh, number three here. Thanks for, for being on our, our show again today for our guest today. And you'll probably be an ongoing guest in the future. Always glad to be . Well , we , we appreciate that. So being a note investor is Kas . It's challenging is it has its fun points. It has its passivity points. And today I wanted to kind of get into a discussion with you on what realistic expectations, if you are getting into the real estate note investing business, what kind of expectations should you have? And I kinda wanna start off the conversation of Richard. You got a couple pasts , you can go down when you get into the , the note business, whether you want to invest your own money and just kind of grow your retirement, or you can actually make a business out of it, Richard, like , uh , yourself and what I do mm-hmm <affirmative>. So I, choose the path of creating a real estate note business. And so my journey isn't as passive as some people's journey is going to be in the note business. So I do invest in these loans. I do , uh , have my own portfolio, whether it's, you know, in cash or whether it's in retirement accounts and , uh, Richard, I assume you have the same thing. So I also kind of had an educational platform here and I also have , um , this podcast that I do and I kind of reach out and I show people kind of, kind of what I do and , and where I'm at. So my journey is a little more active. So I would treat my note investing experience, Richard, as more like a job.

Richard Thornton:

Yeah, I can, I can see that. I mean, I would, I would say the same for mine. I mean, I made the choice early on. I had the, you know , uh , ability to have a day job and to do notes. Also. I think that anybody who wants to have a day job , uh , and invest in notes will, as you can imagine, we'll find out that their , their , um , their learning period will be a lot longer. Not that we're always not learning , uh , in doing the investing in notes, but , uh, it just, you just physically don't have as much time to spend on it as, as you would, if you're doing it full time . Uh , my goal when I got started , uh , to witness this was to basically cover all my expenses in my first year mm-hmm <affirmative> , which I was very lucky. Um, I happened upon three different , uh , transactions, sort of all within the course of about , um, four months mm-hmm <affirmative> . Um , and I did just that it was a trial by fire. I would not suggest if anybody do it again. <laugh> , uh , it was not pleasant. Um, I had problems with lawyers. I had problems with the deals. I was a newbie. I mean, don't, you know, what is it ? They, you know, the guy who's just , uh , gone over the Niagara falls in a barrel and made a million dollars because of it, he says , I would not recommend, you know, you're making a million dollars this way. <laugh> , um , you know , um, but , uh , that's what I did and that's how I, how I got into it.

Justin Bogard:

So I, I see a lot of people get into the note business and they fall into, I won't say a trap, but they'll fall into a mindset of, they wanna do too much too quickly because they see the potential, they see the possibility of them making some good passive income, or they're making some transactional income and they kind of jump in feet first, if you will. But they jump feet first with their entire wardrobe and all their accoutrements behind them. Right. And they just bring everything with them at full steam, which is a great being rambunctious, but I don't think it's necessarily the right thing to do when you get into this business. I like the idea of, if you're trying to learn how to do this, you still have a full-time job. You receive your W2 income, but you also have some time on the side to where you can kind of educate yourself and kind of build and build and build as far as your knowledge base. And obviously you can build your income, but you, you also have that security of knowing, like you got some income coming in from your day job. And then you're also trying to figure out how to work this business on the side. And then eventually it can balance to where, Hey, maybe that income on the side is gonna outweigh what you do with your, with your W2 income. And then you got a lot more time freed up, what's say, 40 hours a week, or freed up to , to go and , and do this business, how you want to do it. And maybe, maybe you're just, well off enough, Richard, to where you can just invest your money full time and not have to go out and raise money. Don't have too many of those people out there. But

Richard Thornton:

Yeah, I totally agree with that model. And unless you are somebody who is say a little bit older, or you happen to have done extremely well in crypto or mm-hmm , <affirmative> , uh , some other way, and basically you've got your daily net covered. Yep . So whatever you do is, is surplus , uh , for income, but yeah , I've had a number of , um , it's interesting, it's it guys , uh, tend to do this. They come to me and say, oh, I've been in it for 25 years. Right . Um, I've made enough money. I , I wanna get out and I want to be , uh , covering my expenses in the year's time. And I'll say, don't bet on it. I , you know, <laugh> right. I , I usually tell people to , if they jumped into this full time , it would really be, they should really plan on three years before the they're truly covering their expenses and up and running and comfortable in , in what

Justin Bogard:

They're doing. That's, that's a good number three , three years, that that's realistic. So it kind of gives them a way to where they can phase themselves out of a W2 job and phase themself into like a note business, if that's what they wanna do. Or like you said, if they've just blew it up with crypto, or they've got just an amazing amount of money, just sitting there to deploy, it can become a full-time job, just deploying your own capital if you had enough of it. So Richard, let's say we had , uh , two and a half million of money. That was just your money and your portfolio that you had to invest, and you could do some larger one-off transactions, right? Richard, you could probably invest in like, you know, neighbors house in California where, you know, the , the medium price home is what 1.1, two , $5 million . Right ? Um , you could, you could spend your money like that, or you can, or you can divide it up amongst and spread it out over a diversified portfolio of Midwestern assets where assets are more like 50 to $150,000. And then you can have, you know, a more balanced portfolio like that. So what, again, I'm trying to say, Richard, is that when you, when you have what's to say , um, you know, a half million dollars to invest with, that's pretty manageable and that's pretty easy to, to work and be pseudo passive with it, right? You , you kind of have some activity when you buy these investments, you know, you're doing due diligence on them. You're closing on the deal, you know, signing documentation, then you're sending your funds over. Then after that happens, you have all these post transactional items that are go going on. As far as getting documentation, auditing that documentation, recording that documentation, then having, you know, a servicer service, the loan as well to collect the payments from the borrower. And so that, that all process, it sounds , uh , like a lot. It's not too bad after you get used to it. But imagine doing that Richard over several loans at the same, that becomes a pretty arduous task right there. It becomes

Richard Thornton:

An arduous task. And , um, you don't know what you're doing. You don't know what you don't know, and the servicer will do some of it servicer . Won't do some of it. And yeah , when you get on the other side of maybe 10 transactions, you can, you can say, all right , fine. I , I , I got this down. I know what's gonna happen. But before that, you know, you don't know who's recording. What if you're supposed to record it? If the servicer does what gets filed, where what gets filed, you know, do you, do you , um , do you record an assignment or not, you know , uh , all this type of stuff. So the learning can be sort of steep. So you're really, yeah . Um, if you've got a current job sort of, as you said , um, where you can maybe go to halftime or something like that, and then devote the rest of your time to notes , um, that's kind of a perfect world, I think.

Justin Bogard:

Yeah, I agree. It's a good balance of both where you still have the security, but you still have the passivity of growing that money that, that , uh , retirement nest egg, if you will, and growing it passively and , and , and doing it in a slower manner. Now, there's some people that are just gung ho Richard and rambunctious, and they want to get in there and do it. I may have been one of those people, Richard, that has done that. Okay. I know you alluded to what you did when you started out the, a note business. Um , but it's just, it's just a culture thing, right? You wanna get in there, you wanna jump in two feet first, you wanna take your whole army with you and just go out at full steam and then you run into a bottleneck, right? There are things that you just don't know that happen with the certain states and certain counties and the way that they record documents. Richard, I have a special custodian that I use that handles all my documentation from, you know, getting the recordings and producing documentation. When I convey , uh , notes from one seller to another, or from me, the buyer, and they still get documents rejected by the county for whatever reason, right. They're just in , in Indiana alone, there's like 92 counties. So just imagine if you're working across all 50 some states and they all have, you know, 60 to 120 some counties in them, that's a lot of different personalities and that's a lot of different , uh , nuances and different , uh , regulations and processes that each of them have. So there's always some new thing. That's a new challenge with them that , uh, you know, it takes a minute sometimes to get your documents recorded. I've had documents take , uh , six, seven months to get

Richard Thornton:

Recorded sometimes . Yeah, exactly. I had one when COVID first started and this was in Indiana as a matter of fact, really. And so in one of the , one of your fair counties there, which I won't talk about, <laugh> , um, you have to hand carry your documents in to get , to get them recorded.

Justin Bogard:

That means you can't electronically record it. That means you can't mail it in, right. You have to have a individual per personally deliver that document to the county in front of the recorder so they can stamp it. And then you pay your filing fee.

Richard Thornton:

Yeah. And so I, I was very surprised to find this out. I talked to the recorder there and I said, well, how do you get this done? Then if you're like me in California, and I said, you hire somebody local and long story short, there is a whole cadre of people who do nothing, but can carry documents in to get 'em recorded. But guess what it was COVID, you couldn't go to record because the offices were closed .

Justin Bogard:

<laugh> . So what do you do in that instance, Richard?

Richard Thornton:

Yeah.

Justin Bogard:

I'm sorry. So what do you do in that instance? That's a , that's a great , uh , little story we got going

Richard Thornton:

Here. Uh, so what they actually did was they had set up a , um , sort of an inbox situation okay. Where the , uh , hand carrying person , uh , would go in and , um , set it one side of the counter and inbox, and then they'd have to leave. And then the other person would come in and they would the dock and, you know, blah, blah, blah , but weeding through all that for your first time, you know , and things like that rise . So that's something you have to, to , um , count on , you know , one Richard,

Justin Bogard:

Sorry, sorry, Richard. I'm gonna interrupt you real quick. I'm gonna recap what you just said. Um, on my side of things that sound like the internet kind of garbled up pretty good. While you were talking the gist of what I heard Richard was basically that , uh , in that process to where COVID happened and you have to hand in documents, they set up like an inbox for you to lead the documentation there. Then they go through the process and they get it to taken care of. Then you kind of pick up later. I believe the individuals that do these things, Richard they're called abstracters , uh, I think that's the term for them, but yeah, you're right . <laugh> I I've had to, I've had to have those , uh , documents, hand delivered as well. And you just, you kind of roll your eyes going, oh my gosh. Like really now you gotta pay somebody to do this. You got to , uh , verify and check to make sure that it was done. And then they in turn have to mail it back into your curator or your custodian, the person that's handling the documentation. So that process, it can take a while , which is always, you always need to have details and you always need to have documentation, and you always need to know where you left off at and what we'll call this post-closing world, because things can get lost and forgotten about very easily in this process. Yeah.

Richard Thornton:

Which you wish is a good reason to have a custodian. You and both do . I mean , because if you're like me, you're busy and you forget that , move this , this loan document and get recorded and guess what

Justin Bogard:

You're outta lot . Right. Right. You

Richard Thornton:

Know, one thing I should add too , in terms of whether you wanna jump into this or not, you have to look at who you are and you have to say, am I really detail oriented enough? Yeah . To keep track of, of all this, not that you have to be extremely detail oriented , but you have to keep track of it. And so if you're somebody who's not, you have to set up the forms and formats to make it. So that you'll be successful. Number one , um, number two is if you have a significant other mm-hmm <affirmative> , um, can they help you out? You know , I mean, a lot of people I'm, I'm what I would say, halfway detail or , um , and my significant other , uh, certainly could , um, participate in the business and follow up on all of that. Yeah. Uh , for me, and that's a great, if you can do a tag team like that, that's a great way to, to conduct this business.

Justin Bogard:

It is, and it it's like divide and conquer. Right. You're taking a, all the responsibilities and you're, you're shifting them to one person and then you're doing some other things because you're better at those things than the other person is just like, like you pointed out, so this, this whole process, like you said, Richard, it's always better to have a company that helps you get through that. Now you have still have to manage that company. Right. Richard, you still have to monitor what's going on, but it's a heck of a lot easier. Yeah. And they do this day in and day out. So they catch things that you normally wouldn't catch. So I always recommend to people, let someone else handle it. Do you, can you afford to spend a hundred dollars and let someone else deal with that and track that for six weeks and that , you know, also including the recording fees and stuff like that, it's like, just let them handle it. Like just that's their job. I can focus on other teen things. Cause I want return on my time. So you ask a question about it depends on the individual and you're exactly right. Richard, I don't know too many individuals that, that truly understand their , their time value if they want to do that themselves. And there are some people, if you have one or two notes and that's all you have right now, well then that's, you know, I get it, you know, one or two that that's not, that's a totally different, different story to handle. When , when you have 5, 6, 7, 10 , I think you said the magic number was 10 Richard. That's when you need help, that's when you need systems, you need a process. You need somebody to help coach you through what's going on. And so I , I thought that was a good , a good point. You brought off about the number 10 , 10 or

Richard Thornton:

Yeah. So the job coaches will all tell you , um, that you wanna work on your business, not in your business. Correct. Um, and so that's a problem I always have. And I imagine you do somewhat too is I'm always trying to work on my business as much as I possibly can and it's, it's not always possible,

Justin Bogard:

Right? Yeah. That , that leads a whole, whole nother paradigm. There. We, we could talk about business and processes, but you're exactly right, Richard. So they're people that work in their business and people work on their business. And so all of us are to just work on our business instead of in our business. But when you're starting out , Richard, you gotta figure out what is that business? Uh , each note business is a little bit different. As you know, Richard, we can all get into different type of investments within note investing, right? And we all specialize in certain things, you know, there's, there's mainly first liens . And then within first lien performing and not performing and sub performing. And then there's also seller financing and creating notes as well in seconds. There's all those things in the same thing. And the second lean , uh , market is a totally different market than the first lean market. The pricing is way different. The underwriting is way different as well. So you have to have specialized knowledge just to go after that market as well. So there's, there's a , it , the real estate note business is such a niche business, but within that niche business, there are a lot of different facets and different ways you can go down and invest your money and what's comfortable for you. I tend to be on the more, the performing side of things with having to do a seller financing. So I don't run across a lot of conventional loans. I just like the seller financing of it . It's what I'm used to . It's what I like to do. A lot of other people, they just want to go after conventional loans, maybe just non-performing or maybe just seconds. Uh it's all. Okay . It just depends when you start off, you gotta figure out kind of where to go.

Richard Thornton:

Right. And so, and some of that is , uh , based on where you're geographically based too. Yeah . I mean, you can say, well, gee, I wanna do performing because it's not, doesn't take as long as nonconforming or doesn't take as much time

Justin Bogard:

It's non-conforming right. <laugh> yeah ,

Richard Thornton:

Yeah. Right. Nonperforming and performing. Um, but for instance, I'm out here in , in California and it's tough for me to run a non-performing business because you have to be on top of it so much because I can't, you know, I can buy a non-performing note out here, but it's gonna cost me a half million dollars just for one note . Right. Um, so that there are limitations based on where you're located.

Justin Bogard:

Let's talk about that for a second. Richard. So we got non-performing note business, someone that specializes in just doing non-performing notes. So just to, to catch my little center up here. So a non-performing note is any note that has been delinquent or hasn't paid for at least 90, 91 days, we consider that non-performing we don't see that one paying back in the future. So that business is interesting because you have to have patience in that business. So not every, yeah. Not every time Richard, will we run into a situation to where we can have a non-performing note and we have a resolution within a couple of months that typically doesn't happen. Does it

Richard Thornton:

Typically doesn't happen? And you have to be able to determine whether somebody is dealing with you in good faith. Yeah . Or whether just jerking your chain and, and playing with you. And they don't really, I mean, I had one borrower , um, who talked a good talk for a while , but as soon as I got into COVID, they stopped all their payments. And I realized much too late that they had trashed the house , uh , when they left and, you know, they were just bad players. And so you have to be willing to put up with all that,

Justin Bogard:

That that's interesting. So you have the borrower aspect of a nonperforming known that you gotta deal with and they're all, you know, they're all understanding. They all get it. They all act like they want to , or they want to fix their situation. You're right. Richard, when it , when it doesn't benefit them in the future, when something else comes along on a new shiny object, they'll forget about that stuff. Right. And they just walk away from it. I've had borrowers to where they're happy to sign over documentation to say, yeah, I'll sign over. I'll cancel the land contract. I'll sign a deed back over to you. No problem. I'll walk away. And they did what they said. They have other people that would say that. And then you don't hear from 'em for six or seven months. And then, you know, you are accruing all these bills from the , from the county , as far as, you know, the utility companies, municipalities and things like that. And then, so you have that aspect of it. You have the loan servicer aspect of it, Richard, the , the company that's kind of managing the collection of the payment and the knowing what's going on with it. And you have to deal with them and manage them. And then you have, you know, your other, especially when you have land contracts, which are, you know, where you as a lender are on the deed and the borrower is gaining equitable ti time . They make a payment, but then there is the enforcement of the county , the municipalities that you have to watch out for too. So it's like a three head and monster that you're kind of monitoring and all these parts are moving and all these things are going in different directions. They can speed up for a couple of days and you're really involved. And then you might have a three week gap of time to where just crickets, right? <laugh> like when you get the attorney involved, when you're trying to go through foreclosure, you're trying to go through loss mitigation. I mean, there could be crickets because there's a time for it . There's a judicial process to it. There's all these things and it's different for each county and each state.

Richard Thornton:

Right. Very much so. And, and, you know, generally I think most of the note investors that I know of yourself included wanna help people to whatever degree they can. I mean, they realize that a lot of the people in these houses are living day to day . They're , they've got good jobs or postal workers or they're or whatever, but they may or may not have , um , a ton of money. And for instance, in one instance, I had a single mom who I really wanted to help. Um , but I found out she was just lying to me. She sounded sincere and whatnot and said, oh, gee, I paid this and paid that. And I ended up , uh, you know, finding out that there was a $3,000 sewer lien on the property because she hadn't paid her, you know, paid her sewers , uh , bills and water bills for the last three years. And that wasn't showing up on any of my screen. In other words, that's something the servicer doesn't collect. It just shows up as a lie , all of a sudden on your property,

Justin Bogard:

Right? They're not monitoring that stuff. No , it's not their job to monitor that stuff. It's their job to pay the escrow , uh , when the escrow's being collected and they, they see that the insurance or the taxes need to be paid and they take care of that. Right. But they're not monitoring on that stuff. That's our job as a lender to make sure that the property, you know, that we're our superior lean is the first position. And it stays in the first position, right? Not these, these other leans that pop up on there that can kind of take that over or cloud that title . Right. So we got this nonperforming part of this world. So <affirmative> to run a nonperforming business back to getting what I said before. It takes patience. And that's why it takes patience. You have to be able to manage the process. You have to have systems in place. And just imagine Richard, those, those are just one off case studies that we kind of alluded to , uh , what we were talking about. Imagine doing 5, 10, 20, 30 of these , of the time, a hundred at a time, you need a good team to be able to manage that whole thing

Richard Thornton:

Right now, some of 'em are handled very, very easily. You know, some of 'em they'll give you cash for keys. Um, whereas as you , as you know , uh, they'll say, thanks very much. I can't make my payments. Uh , the keys are under the mat. Um , I'll sign the building over to you and, you know , see it later sometimes it's that easy, but you can't count on that.

Justin Bogard:

All right, Richard, it's time for some funny stories. Okay. Shooting off the hip here. I know you didn't have a , I didn't ask you this beforehand in our , in our little get together, but what is one of the funniest , uh , stories that you've heard from a borrower on one of your notes that have either gone nonperforming or you've bought, and it was not performing

Richard Thornton:

The funniest stories, you mean in terms of an excuse as to why it

Justin Bogard:

Could be, excuse, it could be the situation, which is funny. You just, you know, it baffled you and it's just laughable like give me something here.

Richard Thornton:

Well, I don't know if it's , uh, exactly funny, but I've got, I had one where , uh , it was middle of a divorce and , uh, uh , the wife was living in the house. Um, the ex-wife , uh , she thought she had been given the , uh, house and part of, as part of the divorce decree Uhhuh , but what neither of them realized was that it was a contract for deed and neither the husband, nor the wife owned the property. I did. That's true as the owner. So he gave her something that she, that he could , that he didn't own. Oh, wow. And she thought that she owned it until it came time to sell it. And then I said, no, I don't think so. I don't know what else is going on, but , uh, no , <laugh>,

Justin Bogard:

It happens. Okay. That's interesting. Yeah. I , I can see how that happens with the land contract. It can be confusing to the borrower. Uh, we've had recently people contact us and say, Hey, look, we're trying to refinance the house. But , uh , they say that we don't own the property. I'm like, no , you on the property. And then I, I having the conversation with them and I understand what they're trying to do. I'm like , oh, okay. You mean, I am on the deed, but you own the property. And they're like, yeah, like, okay, so we gotta get, we gotta go through a different set of documentation so they can go to their, their hopeful new lender. And so they can underwrite that file and get things through. It's just that land contract stuff is always kind of messy. We like to convert those to mortgages when we can, or we like to write the note and mortgage to begin with.

Richard Thornton:

Yeah. So a lot of borrowers, if they , if they wanna refinance, for instance, I mean, rates have been down. So as you know, I , I've had a fair amount of runoff in my portfolio, which I think that's great for them. That means that they're qualifying for conventional loans. They're, they're getting lower rates, but they'll go to their bank and they'll want to get a new loan. And the bank will say, well, you don't own the property. And they go, oh yes, I do. I'm living in it. Well, no, you don't, you're your name? Isn't on title here. So they really have to go through a whole explanation process. I usually get a call from the bank of how we would handle this. And it all turns out in the end, but it can be a cumbersome process.

Justin Bogard:

So quick little funny story for me is I had a note that kind of went non performing and finding out with the communication with the servicer to the borrower, come to find out that they actually didn't live there. Mm-hmm <affirmative> they moved somewhere else nearby within like a city or two and their , um, their, what do you call it? Their daughter or their, their relatives, their in-law relatives moved into the house. And they were like paying the mortgage payment to my borrowers. And my borrowers were supposed to be making the mortgage payment. We'll come to find out those people weren't paying them. So then my borrowers couldn't afford to pay me. And so that kind of process went on. And so it kind of got it figured out and they agreed that the borrowers did, like , they just wanna sign the property over and they just don't wanna deal with it. And I'm like, okay , that's fine. So then I'm having to communicate with them on trying to communicate to who's in the house. Cuz I was told like there's a , there's an older, an older man and woman husband, wife that live there that are the parents of one of the, of the husband that lives there with the wife and the kid and stuff. And they're like, yeah, they all got jobs. I don't know why they're not paying. And I'm like going, okay , <laugh> it's gonna be one of those. Right. But come to find out , um, they started moving out. And so when I, when I found out that it was gonna be this day is actually in January here last month that they were supposed to be moved out and moved all their things out . I'm like, okay, great. So after they had moved out whatever date that was, I sent a company over to go kind of secure the property, like change the locks and start to winterize it. And just the normal things that you do with, with this, you know, REO and kind of find out they didn't really move any stuff out <laugh> oh , they left the house with everything you can think of imaginable , like imagine walking into a hoarder's house. Yeah. And you walk in the front door and you can't even open the door all the way up because there's this crap right behind the door. Right. You know, like children's toys, there's like clothes. There's like mattresses. There's like, you know, drapery on the floor. There's some, you know, broken furniture there's, you know, like I said, toys there's, you know, the course, they don't, they left all the dishes there. I'm just thinking like, you know what the heck? So anyways, and , and the outside looked just as bad too, as far as leaving stuff around there. So now, you know, this is why you wanna send somebody out as soon as somebody's out . So you can kind of assess the situation because the county code enforcement, they could , they could have been on it really quick and sent me a fine for making, you know, for having this dilapidated property look like this. Right, right . It is funny how, you know, you're told one thing, but the truth is another. So it's always trust, but verify. So get back to our conversation before Richard about, you know, we always hear the, these stories from these people and you wanna believe them and you want to , you know, take them on their word, but you know, more than half the time after that, it's not really the same. It's not really the same case as what they, they pleaded before. Right. So right . It's trust. But verify, I guess if I could leave any final words for today. Right.

Richard Thornton:

So along that I'll, I'll be quick with this story too . I , along the same line that you had a friend of mine bought a , a townhouse in Washington, DC that was Riel , um , and it was occupied by a hoarder and you had to, you know, buy it as is okay, fine. So this hoarder was into collecting antiques and he and his wife would go out in the countryside and there was literally a two foot wide trail through the house , um, that you could go, it was Florida ceiling with, with antiques. Um, they had to go to the local holiday in to take a shower because they couldn't get into the , the , the bathroom. Uh, and so he bought the house. Thank you very much. They took a lot of the antiques out , um, were giving an , him to antique dealers and, you know, they're making a modest amount off of those. There's nothing, nothing big, but he had rows and rows of, of books in bookcases, old books. And he's taking these old books and throwing into boxes and he's taking 'em to , uh , uh , Goodwill. And as he throws, one of the books, nine $100 bills comes out of it. <laugh> and he's going , oh my God, I just sent 10 boxes of books to a good will . <laugh> oh , geez . So , uh , needless to say, he went through all of the books , um , and did actually find, I think four or $5,000. Holy cow, you know , this guy was, he just didn't believe in the bank and that's where he was , uh , saving his money.

Justin Bogard:

Holy cow. Well, there there's some buried treasure right there, Richard. All right , Richard. Thanks for being on the again today . We appreciate it. And look forward to having you on again here in the future. And I'm Justin, Bogar the bright path notes, and this episode is brought to you by bright path notes. So I'll see you next time. All

Richard Thornton:

Right . Bye bye .

Justin Bogard:

Thanks for listening to be the bank. We hope you learn something from todays show. If you enjoyed this episode, please rate and review us. Plus check out our bright path notes channel on YouTube and follow us on Facebook and Twitter at be the bank and on Instagram at be the bank podcast. Be the bank is sponsored by bright path notes. Thanks again for listening.