Be The Bank

009 - Nobody Wants to Be Stuck in Traffic

May 04, 2022 Justin Bogard Season 4 Episode 9
Be The Bank
009 - Nobody Wants to Be Stuck in Traffic
Show Notes Transcript

Be The Bank S4 Ep9 - Nobody Wants to Be Stuck in Traffic

On episode 9 of season 4,  Justin Bogard interviews Ben Haught.

 Key Takeaways:  

  1. Diversify Your Investments
  2. Involve Your Kids
  3. Yield Drag

 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 wealth and 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 , your bank . This is be the bank brought to you by bright path notes. Now here's your host, Justin Bogard. Welcome back to another episode of the, be the bank podcast seasons for this is episode number nine and I'm Justin, Bogard our host for today. And I brought on a friend, a close friend of mine that I've known since about 2016. His name is Ben hot , and we're gonna be talking about hedging your risk today. So you wanna stay tuned for this. We've got a lot , lot of great conversations going Ben Haught. What's up, buddy?

Ben Haught:

How's it going, Justin? I like that intro, man. That's a , that's a stellar intro. That's very professional. I like it.

Justin Bogard:

Thank you. Yeah, I paid a lot of money for it, so

Ben Haught:

<laugh> , I bet they're not cheap nowadays. No ,

Justin Bogard:

They're not cheap at all . Yeah. Thanks. And thanks for being on , uh , podcast today. Number nine , uh , season number four. And I just gotta a comment, your , the background there, is that a real background, a virtual background, or is that really like your desk and monitor?

Ben Haught:

It is my office. That's, that's my primary workstation where I , my day to day operational , uh , stuff happens and then , uh, everything else I use this other computer for. So it's a , it's a wave where , uh , if I'm, if I'm in the middle of something , uh, where something doesn't inter interact with the other, you know what I mean? So I'll get a , a notification and it's , it's come back to , to bite me a couple times. I keep them separate

Justin Bogard:

<laugh> okay . No , I get it. You can just turn, turn the chair around and eventually you start going in circles and you're just like, oh my gosh.

Ben Haught:

That's right.

Justin Bogard:

<laugh> those of you, there are listening to on , on a podcast directory, don't forget we have the video feed of this , uh , recording on the bright path notes, YouTube channel. So you can check out Ben's little set up there and , uh , yeah, it's pretty cool. We've got some graphics and you can see the intro graphics as well. So Ben, thanks again so much for being on today's episode, number nine, brought to you by bright path notes. And so the all viewing audience listening audience doesn't , uh , have had a chance to meet you yet. So I'd like you to kind of give us kind of a , a light introduction to kind of why you got into the real estate slash note business and kind of fast forward to where you are today and we'll get into some good discussions.

Ben Haught:

Sure. Yeah. I'll give you the kind of the bullet point version. Okay. Uh , I, I bought my, I first property back in 1999 and uh, then entered the corporate realm. Uh , and I , I use that word corporate very loosely. I mean, it was about as low level corporate as you could get. But , uh, from there from about 2000 to 2005, I was in the corporate realm, but I was still doing real estate investing on the side. Right. I mean, but, but it took, I know most of your, your audience knows this. I know you, but you know , it didn't take any sophistication from 2000, 2008 to be a real estate investor. Right. You go in, you ask for money and they gave it to you. Yeah. And so, but , uh , 2008 hit me like , uh , like a lot of people. And, and at that point I was involved , uh , with the traditional stuff, you know, rentals and rehabs, wholesaling , uh , even a short little stint for about two years in the adult living facilities. Okay . And , um, then 2008 kind of had that , uh, like, oh no, what do I do now? And that's what got me in to the note space . And so , um, I've been doing that predominantly , uh, since 2008 , late and 2008 . And , uh, it , it fit a lot of the criteria that I was after. Right. I didn't really wanna go back to corporate. Uh, still loved the idea of real estate investing and being in that realm and , uh, just kind of a new doing that for what 14 years now give or take something

Justin Bogard:

Like that. So how old are you, Ben? Are you gonna share with us how

Ben Haught:

Old you are ? I'm 46 this year. Yeah. This summer I'll be 46. And , uh, I don't feel it. I still feel like I'm, I'm younger, but

Justin Bogard:

You you're pretty seasoned for being 46. I , I know that I'm getting ready to turn 44 as we're recording this here in a few days, but , uh , um, yeah, you definitely got more, more miles in the business than I do for sure. And, and I'm glad I met you in 2016, by the way, just for a little feather in your cap, you know, you kind of , you were one of the other people along with my friend Joe barn that turned me onto the note space and really got me to say, Justin, you know, you , you fit the profile, man. You you're gonna do really well on this. And I'm glad that kinda helped push me over the edge to, to get me to go full steam into this business. So thank you for that.

Ben Haught:

Yeah, no problem. Well , I'm, I'm glad I could have some part in it, so

Justin Bogard:

Yeah. Yeah, man . <laugh> so I , I look up to you a lot. You , you do a li a nice little , um , modeling of how to run a note business and stuff mm-hmm <affirmative>. Um , but for today's conversation, we wanna talk about kind of hedging your risk, and it's something that you do a real good job of explaining because you've had , uh , experience in kind of both worlds what'll call standard the standard world of investing, which is the general, you know, our , our normal economics of, you know, trading on the stock market and stuff like that. And also the real estate world, what we'll call the alternative world, what, what not a lot of people are doing and, and specifically the note business and stuff. So you've had some good success in it. And so I kind of wanted you to kind of start off the conversation with talking about, you know, when people are in, when you are investing or , or people that you have work with, you invest in the stock market versus investing in notes. Like what, what does that look like? I obviously you don't say do one of the other, you , it sounds like you have a blend of both of them .

Ben Haught:

I do. Okay . I , I'm one of the, the very few people that, that seems like through the conversations I've had over the years, that I , I , I believe in both. Right. And , and I know diversification divers that is the most overly used , uh , word out there

Justin Bogard:

<laugh> but ,

Ben Haught:

You know, cuz everybody's like diversify . Well, yeah. Uh , the way that that I do it is kind of , again, it's a means to an end for me. Right. I love , I genuinely love the note space because of the many options that are there. It's a perfect blend of kind of the market real estate market and the stock it . Right. So if you look at it , um, kind of real quickly, 30 seconds or less yeah . When I'm talking to people, the way I explain it is, well, think of it. Like, you know, people are say , Hey, I'm in the stock market. Well, well, what specifically are you in? That's like saying I'm in the real estate market. Right? I mean, there there's, there's plenty of options that are there . So the way that, that I particularly do, it's more on the stock realm, it's more options. Okay . We , we kinda stay in the options realm and in the real estate space, it's more notes now, generally there's splinters of course, you know, being in the note space, you know, how you can take back a note and own the house and have other varieties, same thing with that. So with the market , um, I'm talking the market and right , just with investing , um, I , I , I kind of swing back and forth with the , uh, with the options and the notes, but notes really are predominantly the , the, what I will call the bread and butter , uh, you know, vacations and, and predominant portfolio base , uh, to the point where it's really, I think, a last checked again. It depends on when you ask me cuz again, I'm yeah . Constantly, you know, in, in and out of both realms, but I , I'm probably more like two thirds in the note space, so it's not like it's or more at times. Right. But, but the note space is predominantly where it allows me to operate in the, in the , in the options market and allows me who operate in the real estate market. So , uh , I'm a big fan of, of real , uh , the notes in real estate realm, but I believe in both, so,

Justin Bogard:

Okay . So you kind of have that safety net of using real estate notes to kind of be there as , um , your count , your , your money that you can count on that comes in every month, the money that's in the stock market , you know , I'm sure you make smart choices and you , you're probably not letting somebody else manage the money. You're probably managing it yourself or the decisions or the options. Right.

Ben Haught:

I would say I'm involved with it . Uh , my , I have a business partner who , uh , he , as long as I've been in the real estate room , he's been in the stock realm option .

Justin Bogard:

Oh,

Ben Haught:

Okay. Right. So I kind of lean on him for a lot of that. I mean, I'm, I'm, I , I kind of tease him . I know just enough to know what he is talking about, but yeah . If it was, you know, money's on the line and I have to make a decision, right. Then I'm like, Hey , it'll , it'll be a 50 50. Right. I'll either be right . Or I'll be wrong. Yeah. But , uh, I'm teasing. I mean, I know a little bit more than that, but , uh, but, but he's kind of the, the , the guy I, I lean on for that , uh , he runs that side of the market , um, as , as I'm 60, 40, you know, in the note space and he's kind of 60, 40 with options and then notes. So we kind of bounce ideas off each other.

Justin Bogard:

So I was reading , I was reading that into how you were , uh , saying that, so he probably leans on you for the note stuff and yeah . So that's a , that's a great partnership right there.

Ben Haught:

Yeah . Yeah. We have a lot of really good conversations at the end of the day, once market closes and he's available to get off the computer, you know, not be tied to it. That is one of the drawbacks yeah. Of being in the market. Um , and I know there's strategies out there that allow you to not do it, but, but again, that's the, that's the cool thing about notes is you can do it 24 hours a day. Right. If you want it to, but you don't have to. And that's the, the cool part, whereas with the market, you're kind of Monday through Friday, you know, nine to four or nine 30 to four. So,

Justin Bogard:

So, so you guys are in a partnership together. I , I , I think you formed a group really, and you have, you have some investment money in there and I'm sure you guys have your own capital in there as well. Mm-hmm <affirmative> so how , how do you decide what you want to do as far as , um, leaning more towards, yeah. There's a few options here that we want to go after and they call six months or, Hey, there's a few real estate transaction or notes over here that you want , you guys have the conversation be like, okay , what's in front of us today. And that's what we'll go after, based on what we have available to buy.

Ben Haught:

Well, it kind of, yeah, you're on the right track. Uh , it really kind of depends on, I'll give you a really quick 90 seconds or less example. Right. Okay . So say that we sold a bunch of partials, right? So we have a lot of liquid capital and , uh, you don't want , I believe, and I'm of the belief system where although notes, I believe should be part of everybody's portfolio, regardless of whether you're, you're really active or passive about it. I think notes really do and should make up a , a predominant part of the portfolio, but say that you buy a , uh , or sold a bunch of partials. And now you're in the, the decision mode of, well, what do we buy performing loans, nonperforming loans, you know, kind of a blend of the two. So while we're kind of researching our, our , uh , our notes and what we wanna acquire for a specific purpose, right. Uh, we'll, we'll kind of throw that money that's there into the market because they're short plays. Right. Okay . So while that money's working and we're deciding, you know, three, four days or so, what kind of assets we want , uh, then we take money back out, we'll buy what we wanna buy, say, it's a nonperforming loan and a blend, right? So say we buy a nonperforming loan. You know, it takes a little bit of time to get that. And , uh, we get the return on that say, you know, three months later, four months later, whatever it is . So while that's working and , and I'm actively working those, those nonperforming loans we have repurposed or, or , or reacquired some , uh, performing loans. So now we have our, our passive cashflow coming in. And so that's where I'm saying, it depends on when you ask, cuz we're flowing back and forth between the two. So while money is, is what we call stagnant. Mm-hmm , <affirmative> , uh , where it's not really, you know, we, we sold a bunch of partials. It's just kind of sitting in an account. Well, we'll throw that into the market and, and , and let it sit there for, cause it's, it's short term stuff. Now we do have long term , um, uh, strategies that are implemented. But for the most part, we use the market for short term in and out, just so the money doesn't sit there.

Justin Bogard:

That's awesome . But the

Ben Haught:

Cool part about it is as you know , uh, the , the whole hook of it is with the options around , we can liquidate whenever we want to, with the , with the note realm , we can liquidate fairly quickly selling partials . So that's why we're, we're constantly swinging back and forth.

Justin Bogard:

No , that , that makes total sense. And I, I guess since I don't have the experience in the options or the, the standard market world, I , I don't really know what I can do. Right. Because you're right. That stagnant money sometimes can just kind of burn a hole in your pocket if you will, cuz it's, it kind of gives you yield downtime or yield drag or whatever you wanna call it. Right. To , yeah. You're making money with your notes. But if you have, you know, 40, 50, 60,000 cash sitting here trying to look for some inventory to buy, if you do have a chance to throw a it in something short term , just to make a little bit of money, whether it's, you know, it's more than zero, right. Or more than inflation, that's better than nothing. Right. So that that's a great model. So the money that you raise or the money that you guys have in play is always working for you and that's really the ultimate goal. So you've, you've figured out that secret sauce by partnering with the right person to really maximize your guys's profitability.

Ben Haught:

Well, what's funny about is we really have only been doing it for about three or four years. So as long as that's been there, we, we, we just were , uh, I forget where we were, but three or four years ago we were , we just happened to connect in a , in an airport. I , it was a layover for me as a layover for him. And we were just kind of sitting there talking and , um, cuz he , he, at that point he lived on the other side of the coast and I live on the east coast. Right. Okay. And so , um, we just happened to connect and through that conversation, even though we'd known each other for years at that point , um , and I knew what he was doing, he knew what I was doing. It just never made the connection until we were , we , we were at that, that point, we were like that . I think we're onto something and literally within about three or four weeks later , uh , we we've been doing it for about four or five years now. Give or take and uh, but yeah, what's funny is, you know, as you know, sometimes you just it's the right place, right. Time, right conversation. Right. And that's kind of what leads into something that's very profitable for a lot of people.

Justin Bogard:

So let's talk about non-performing for a second . Mm-hmm <affirmative> so when , when you guys are looking at opportunities to buy non-performing loans, are you looking at opportunities where you kind of can highly predict what you think the exit will be? Meaning? Like, does this look like a straight foreclosure? Does this look like a refinance option? Like is there, is there a specific exit that you're just like, this looks like it's gonna turn out the way, even though if it doesn't, you know, how to work your way out of it, is that something that you consider?

Ben Haught:

Uh, I would, yes. The short answer is yes. But I would say that it really kind of depends on like right now we have a blend of it. Um , yeah , without sounding like it's about sound because we, we, we have a capability of doing that Uhhuh . So we, we do target short term non-performing loans. Like say the foreclosure date's already set for us. Yeah. It's a month out or three weeks, four weeks, five weeks out or something like that. Um, we we'll , we'll acquire those, but we know we're in it for a short term , but then there's others that, that we can , uh, again, depending on the deal that we can maximize a little bit more yield out of it. Right. Mm-hmm <affirmative> but it might take a little bit longer. Yeah. So that's where we kind of run the , uh , run. The math is kind of what we say where it's like, well, listen, if we, if we have this nonperforming loan <affirmative> , if we were to hold it, say for six months, say it takes a little bit longer , uh , or , or , you know, there's some more issues involved. And with this particular not performing loan, well, we kind of run a math issue. Well, what would it produce? Right. What's the max it could produce. And then kind of, what's a , like the , a lower yield it can produce. And so that kind of tells us whether we're gonna be more heavy in the short term or the long term . But, but right now we, we are like currently today we, we have a blend of everything where it's short term kind of mid and a couple of ones that we're working on just because they produce higher yield at the end of the day. Um, so it it's a true blend, but when we were first starting out, we didn't have the capital to kind of really get involved with it. We, we specifically targeted the , the shorter timeframes so that we could do more in the year to get higher . So we we're constantly growing each year that we're, we're involved with it.

Justin Bogard:

Yeah. It makes total essential logically. Right . If you had a crystal ball and you can , you can look at a set of performing non-performing loans and be like, okay , which ones are gonna, are gonna pay you off the quickest in whatever manner that is. You're like, yeah, I would go for those. So you got , obviously it makes total sense looking at foreclosure dates. And I think that's what the beauty of our market is right now with nonperforming loans is that , uh , things have been held in queue if you will, or the ether of the nonperforming world, not knowing can I foreclose in this county? Can I not foreclose in this county? Like what ? And finally stuff is getting released. So it's like, okay, things have been pushed as far as they can for a few years now. And then it's like, they they're opening the floodgate a little bit. So it's, it's easier to , to kind of pick out those because before COVID, when I was investing enough forming loans, I , I don't know about you, but I never, always saw loans with the opportunity to be like, oh my God, those are foreclosure data already set out there. It's typically like, it's in foreclosure. I'm doing air quotes here. For those of you that confus me right now, it's in foreclosure right now. And you, I don't know , where's the status? Is it, did it start foreclosure? Is it six months into it? Is it two years into it? Like, you know, it's, to me, it's just kind of funny how things are changing now.

Ben Haught:

No , I , I , a hundred percent agree. You're you're you couldn't be more accurate. I mean, it was prior to that, I mean , I don't even think, I , I don't remember seeing, I'm not saying they didn't exist. Yeah . I'm just saying through what I saw , uh , a set foreclosure date already was, was rare. Let's say it that way. Very rare. Now it's a little bit more common if you will. Yeah . So

Justin Bogard:

Ben , I , I wanna talk about , um , uh , what I wanna , how do I wanna say this? I wanna say , um, the , the capital requirement or what you try to , uh , acquire in a , in a capital purchase range. Meaning for me, I'll just , I'll start off and I'll say I'm not looking for above hundred thousand dollars assets to purchase at a purchase at a time. I'm kind of more in the 30 to $70,000 range. I know it's kind of a bigger range, but really I'm in that happy place right there. If it gets above 70 or more, I don't feel like I want to do that. Even if the deal is great, I still want be hesitant because I feel like that's a lot of money out there that's working for one deal as opposed I could buy probably two deals for that much. Do you feel the same way or do you feel different?

Ben Haught:

A hundred percent? Nope . Uh , I'd I'd much rather have 4 25 thousands than 100,000. And, and the , the , the reason behind that is exactly what you just said. I mean, what , say that 100,000 takes a little bit longer, right? Well, now that you have four, if one hits a little , it , it just, it just moves your money FA so, so that we had a discussion recently , um , within my, my group where we have wealth acceleration and wealth preservation. Right. Mm-hmm <affirmative> cause those are two totally different approaches. Yeah. And so right now, because we are still, most of us are still relatively young. We, we want wealth acceler , right ? Mm-hmm <affirmative> if the money's there great, you know, but, but if we don't need to touch it, it grows. So when we do get further along in life, we really do. We've kind of become more legacy minded . If , if , if that's , uh , I'm, that's probably another buzzword, but, but we really have started dominantly in the , in the wealth acceleration. And the reason being is, is like with wealth preservation, that's kind of a , a set and forget when , when, you know, when we get to retirement age, I don't really ever see myself retiring. That's one thing about this. I mean , we could do this until the day we die. Right. Yeah . And so , um, and the cool part about is you can be involved as you want or passive as you want. So , um , you know, even, even well into the future , um, I can't really ever see myself retiring, but say that, say that a day comes along where, you know , my wife and I, we want to tour the world. Right. And just say that I don't want to be involved. I wanna be as extremely passive as possible. Well, then we can go into the wealth preservation mode, but then there's a lot of capital that's driving that , that , that we won't really see a decline in, you know, the , the , the status of life that we're accustomed to at that point. So , uh , there , there's a few people that I work with that are, well, they're probably 25, 20 years older than I am. And they are at that point, they're like, man, I just, I wanna hang it up. I want to go golf fish , you know, be on the boat and do all the things that most retirees wanna , wanna do a travel, see kids and grandchildren. And so , uh, they are using a lot of the, the strategies that, that both you and I are, are acquainted with for wealth preservation so that they can go visit the grandkids. They can go visit and travel and, and do all those sort of ,

Justin Bogard:

Yeah . They wanna be that guy on the magazine where life is awesome. And it's like, Hey , everything's working for you . And there's, you know, everything everything's going on in a great way money's coming in. You can't spend it all. Yeah. That's, that's exactly where they're at. Yeah , yeah . You know, my partner, Richard Thornton. Um , so he lives out in California. And so he is used to seeing very high valued homes, mm-hmm <affirmative> and stuff. And I live in a Midwestern area. I live kind of in the Indianapolis area, so it's very Midwestern. And so he, and I, you know, always , um, uh , have this disbelief of it's all relative to where you live. Like, so I live in a Midwestern area. The last house that I bought was, you know, about two , 200 grand mm-hmm <affirmative> . And it was like, it was a castle for us, you know, it's like 3,800 square feet. It's pretty big, you know, it's got four bedrooms, three baths and stuff, and then you go to Richard and then I tell him about this house. He's like, he's like Justin, that's like a 1.3 million house in my neighborhood, you know , with , with the same thing it built in the 18 hundreds having do a lot of remodeling to it. He's like, he's, it's just mind boggling. Like, I can't imagine paying 1.3 million for that house in a different location. And he can't imagine it being so cheap in my location. So it's like, it's all relative to where you're at. So when I was asking the question about how much capital do you invest per asset, or where do you try to be and what your comfort level? You're obviously the , the same as me. Mm-hmm <affirmative> so someone else from a different area that has different disposable income level, well , may they , to them maybe a half million dollar investment's like, eh , that's not a big deal. And to me, maybe a $50,000 , investment's not that big a deal, but you know, when I get over a hundred thousand dollars, I start to think, okay, if this deal better be great, <laugh> for me to put this money out there where I better see a quick return on it , uh , for me to get comfortable with it. So thanks for explaining on your side of things there.

Ben Haught:

Yeah. You know, what's interesting is that , uh, as you were sitting there , I was thinking back like, well, cuz I am in that range. I mean that my , my typical range is about 25 to 70. So , so we're in the , in the same range, but , uh, two reasons why agreeing with yours, but adding to it is that it seemed to me like, I , I, when say that I needed cash for some reason, right. Especially in the beginning when, when I didn't have a lot we're we're talking years ago, actually, for people who may even be new to it, you know , uh , your audience say, you know, they have , they only have one note or they want to acquire one note . I have found that if they acquire a note and they want to sell, that seems to be the sweet spot , uh , for a lot of investors. Cause it's just enough to where they , they , they see a good return and they see a really good yield. Um, but, but it's not so much where they're like, they're a little, little hesitant. So for me, the first major reason , um, I just kind of got into that, that space for that, that, because when I first started, it was like, well, if I needed the capital , uh , I could sell a partial fairly quickly. Yes . Um , whereas on the higher end ones, it's not that it can't be done. It's just not as, as quick or reg with regularity that, that , that price range brings. And then the second aspect to that adding to it is that , um, it , it just seems to be a , a comfort owned , a lot of investors out there. Yeah . So , uh , they , I found that, that , that seems to be the sweet spot. So, and then I just, you know, again , uh , I , I kind of teasing, but diversifying, right. <laugh> yeah . The , uh , the , uh , the investment so that, you know, again, in case say that you get , uh , you know, four notes and you spend the same amount of money. Well, if one goes wrong, say three, go wrong, you still have one. That's still kind of paying enough to where you don't really see the hit as much. And again, depending on where it's at. And a lot of the, the notes that I've had have been Midwest and , uh, they're , they're , they've , they've been great for me. So that that's my that's predominantly Midwest is predominantly where even living in Florida now, South Carolina , um , I've always invested a lot of , uh, my notes are there in the Midwest and, and they've been great.

Justin Bogard:

So yeah, they we're happy in the Midwest and the Southern states as well. So that's kind know where we end up landing . I would say probably , uh , east of the Mississippi river is pretty much where we end up landing, not up on the east coast, but you know, everywhere else where it's kind of a, a more affordable area, like, you know, in the home I described , um , right . You are , you've been talking a little bit about , uh , liquidity mm-hmm <affirmative> and you talk about liquidity with the options that you do. You talk about liquidity notes that you have. So I, I was assuming that you could, you know, trade out your stock investments, you know, within, within the same day, if you really wanted to , um, very quickly, right. Instant liquidity, if you will . Yeah . So with the , with the note side , I kind of grew up knowing that yeah, they're liquid, but they're not very quick in being liquid. So I, I used to think like, man, it would probably take me several months to get this thing to be liquid. Then I started discovering and sharpen my pencil with my skills on, you know, doing hypothe were selling partials that you brought up a couple of times and it , it really becomes like notes. Aren't instant liquidity, but they're pretty liquid as well. Especially if you're a professional investor, like, you know, yourself and me , um, to where, you know, the everyday guy may not want to do that because they're obviously buying it to be the bank , uh , more what I call the retail investor. But for the investor like us, you could , you can turn our note around within a few weeks if you really wanted to. Um , it isn't, it isn't that difficult to do. So I , I like the fact that as I've been progressing through my note, my note life cycle here, I I've learned the ways that you can take a performing loan and be like, you know what, you're not married to it. If you want to offload it in these three or four different ways you can mm-hmm

Ben Haught:

<affirmative> oh, absolutely. You know , I would say , uh , being in the bank , uh , which is a great title, by the way , that's a , that's a great title, trademark ,

Justin Bogard:

Trademark

Ben Haught:

That's right. So, but you know, the cool part of it is we're using bank techniques, right? I mean, the banks aren't banks, aren't in rentals. They're not in rehabs. They're not in they're they're in the note space predominantly. Right. And so , uh , what I like about it is that the being the bank owning all these notes, if again, if you get it's , it's a fail safe . If I get into position and I , you , you have cash flow and say, all of a sudden something comes up, life throws a curve ball at you , or , or two of them , there is a way where you're not like stressed out about it. And , you know, anxiety kind of goes out the window. Yeah . Uh , in the note space, because we have so many options available to us. So , uh, again, being the bank, I mean, I think that's what every investor really strives for , uh, at the end of the day, I mean, just having their capital work so they can go do something else. So , um, that , that seems to be, what's worked for us.

Justin Bogard:

I mean, return on your time is , is , is really what I , I tell people, I , I learned that off by shark tank cuz you know, mark Cuban always talks about, you know, he never, you know , he'll , he has the money to invest in whatever he wants to do and , and tenfold. Right. But he always says, you know, how do I get a , this sounds like a great deal, but how do I get a return on my time? Cause it sounds like my time's gonna be vested coaching and training you to be an entrepreneur at the level that I need you to be at in order to make me the return that I want. So he is like, how do I get return on my time? So I always tell people that want to invest, you know, first time passive investing the note space. I'm like, you know, if you're wanting a return on your time, this is the vehicle for you because you can get the return on your time. Especially if you're partnering with me in , in different ways that we talked about, you know, on the show day . Uh , but yeah, that that's for me, that's key. It's getting return on my time. And even my day to day business been , I try to figure like how do I get a return on my time? Like that's great. Yeah. I can run the business if I want and I can run myself ragged right. Until I I'm all wrinkly. And I I've already lost a lot of hair, but I don't know if there's much more, I can , I can lose on the top of my head, but yeah. How do I get return on my time? So you're not as bad as me. I mean, you can tell, I did get a haircut yesterday, but uh, yeah. It's, it's pretty thin up there man.

Ben Haught:

Yeah , no, I , I agree a hundred percent. I mean that , that that's again, what everybody really wants, you know, nobody wants to be stuck in traffic. Nobody wants to be stuck in a daily grind. It , it gives you your, your time back and that's really, again, no matter what level, whether you're just investing or whether you're, again, wealth acceleration or preservation. Yeah . Either way you want your time back. So I couldn't agree more,

Justin Bogard:

Ben , we're gonna transition to a different segment here. So this episodes have brought you by bright path notes. All right , Ben. So not talking about real estate investing per se, but um, you have children, I have children. And one of the things that I always try to put little nuggets in almost every day , if I can, is to get them to understand financing, if you will and get them to, and you know, what do you do with your money? Ooh , I got, I got 25 $50 for my birthday and I'm gonna go buy this toy. And you know, my girls are bragging about it and I'm thinking like, okay, how can I, you know, that's great. I'm , you know, you deserve to have a toy. That's , I'm happy for you, but how can I say , you know, that's great and all, but you know, what , how much joy is that gonna give you? So I would , I point a little nugget in them to say, you know, what do you really get outta that toy? Do you play with it two or three times? And they're just thinking like, you know what, you're right. I only play with this doll two or three times, but I really won this doll. So I , I kind of stimulate some of that thought process in them without kind of just drilling. 'em going, no , you can't buy it. You gotta invest your money . You know, how do you approach that with your kids? Or do you worry about that? Are they already been hot savvy and know what to do? Right.

Ben Haught:

Well, I will say this. I , I have a 16 year old who , uh, graduates next month. Right? So she , uh, my daughter actually for, for years now has kind of sat behind my shoulder and, and had an interest okay . To the point where , uh , I ask her every now and then like, well , what would you do? What , what , what should I do just to kind of see what she would do? Um, and for the most part, even, I mean, she's, I don't think I would trust her to go like here's money and just go get it. But, but I would trust her to find a really good set and , and she's gonna know why she's picking it. She's gonna know , uh , like have an exit strategy , uh , things of that nature. Uh, my son who is now 14 and my youngest 11 year old, my 11 year old still I have pushed and pushed. He has zero interest and what dad does at this point , uh , but he's starting to come around, but my, my middle son , uh , my 14 year old, he is , uh , he's really taken a liking to it. And, and , and the way that I , I kind of got them hooked on it, for lack of a better term. It says , listen, whatever you want to do, if you, this works in the background, right. Mm-hmm , <affirmative> so whatever you want to do, my , my , uh , my daughter wants , she wants to sing. My , uh , son wants to play bass my 11 year. Old's still trying to figure it out, you know , typical third child. And , um, so, but they're like, I really want to go do those things. I'm like, well, you could, you could go devote a lot of practice time getting your time back. Like we just said, if you have this kind of run in the background. So , uh , to the point where I even made a deal with them and , uh , where I said from the day you enter college till the day you , uh, you graduate, we'll , we'll start , 'em out, say, say, you know, 10 grand, whatever the deal is, mm-hmm , <affirmative> whatever it kind of like paper money in , in the stock room . I said, whatever you do, if you were to buy this note and we kind of , I just run typical , uh, scenarios with them . I said, whatever you make, I'll give you half a of it in real cash when you graduate college. Right. Um, now I'm of that, that belief where, you know , uh, college to me really isn't that important, right? I mean, cuz they it's just a means to an end for me. Uh, I just want them more so where , uh, it , it gives them where it kind of gives them something to do for lack of a better term so that they can still, what , what kind of the , the note space and what dad does so that they don't have the pressures of, of life moving forward. So I have 100% agree with you. I , I think more kids should be involved with, with , uh , especially entrepreneurs or investor parents. Um, and so that you can pass that on so that they don't have, especially in this environment that we're currently in , you know , um, where it allows us to kind of still work from home. Uh, you can still , uh, you know, kind of generate a lot of capital where I know a lot of people are dealing with certain issues. So it , it , to me, it , it's kind of a , a fail safe in life and a fail safe in the portfolio. So that's awesome . I agree with you.

Justin Bogard:

Yeah. Well, well stated my friend. That's why , that's why I enjoy talking with you, Ben . You're very, <laugh> you , you articulate subject matter very well.

Ben Haught:

Yeah , we , we, well , I will say this , uh , throughout the years , uh , we we've had a lot of conversation and uh, uh, what I like about it is it's the , it's the stimulation of that talk that, that kind of gives us both ideas. And then we come back a little bit later and we kind of bounce ideas off each other and then it , it grows into something even better. So I always enjoy talking to you.

Justin Bogard:

Absolutely, man, what episode is brought to you by bright path notes ? This episode number nine with my guest, Mr. Ben hot . So Ben, I'm gonna be give you a chance to plug some, some information. If someone would like to get a hold of you to just to learn more about you, what you do or they, they really got a nugget outta what you said today, how would they be able to get ahold of you to , to

Ben Haught:

Talk? Sure. Easiest way is just to go to Hammelmyer. Um, and or we have a YouTube channel as well. So just look up Hammelmyer , uh , H a M M E L M Y E R. And uh , that that's a , probably the best way to get ahold of them .

Justin Bogard:

Okay.

Ben Haught:

Yep .

Justin Bogard:

Awesome. All right , Ben , we're outta time for today. So , uh, audience until next time, see you an episode number 10.

Ben Haught:

All right . Thanks Justin. Appreciate

Justin Bogard:

It. Welcome. Thanks for listening to be the bank. We hope you learn something from today's 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.