2 Wealth Show S2 Ep17 – CDC Moratorium
Justin Bogard and Super E catch up on what's been happening.
Key Takeaways:
Resources and links discussed
Sponsored By: Integrated Health Solutions
We are passionate about your health and wellness and we know you want to enjoy a vibrant, pain-free, active lifestyle, but when you are in pain this seems almost impossible.
In order to be pain-free, move fluidly, and enjoy an optimal level of functionality, you need a personalized yet integrated, research based and clinically proven approach and that’s what we do.
To learn more visit us at
ihsindy.com
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About the Hosts
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!
Super E – Real Estate Investor specializing in short-term rentals and the management of them. She connects investors with short-term tenants and manages everything in-between.
Connect with the Hosts:
2 Wealth Show S2 Ep17 – CDC Moratorium
Justin Bogard and Super E catch up on what's been happening.
Key Takeaways:
Resources and links discussed
Sponsored By: Integrated Health Solutions
We are passionate about your health and wellness and we know you want to enjoy a vibrant, pain-free, active lifestyle, but when you are in pain this seems almost impossible.
In order to be pain-free, move fluidly, and enjoy an optimal level of functionality, you need a personalized yet integrated, research based and clinically proven approach and that’s what we do.
To learn more visit us at
ihsindy.com
cryotherapyindy.com
About the Hosts
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!
Super E – Real Estate Investor specializing in short-term rentals and the management of them. She connects investors with short-term tenants and manages everything in-between.
Connect with the Hosts:
Welcome to the 2 wealth show, a show that shares how you can create real wealth for you and your family. I'm one of your hosts, Justin Bogard. And my cohost is Elizabeth Sickles, AKA super E. I am a real estate note investor specializing in performing residential real estate debt. I find the deals acquire them for my own portfolio, as well as educate investors while walking them through the process of owning a real estate note, my cohost super E, a real estate investor specializing in short term rentals and the management of them. She connects investors with short term tenants and manages everything in between. Our show was sponsored by bright path notes and Elizabeth Maora. You can find out more information by visiting our websites at brightpathnotes.com and elizabethmaora.com.
Elizabeth Maora:Hello everybody. I am Elizabeth with Elizabeth Maora, and this is episode number 17, and I am here with my cohost
Justin Bogard:Woo everybody, Justin Bogard from bright path notes and I am the other cohost on the 2 wealth show. Wow. I've got 17 episodes in already. Huh?
Elizabeth Maora:It's crazy. Time flies.
Justin Bogard:It does it does. I, those of you watching this video, you probably checking out my new digs here. So this is the new office that I'm moving into. So actually I have a confession to make. It's actually part of our remodel that we're doing at the house that we bought. So this is actually a shed that I converted into an office. And then the other half of it's actually a workshop. So don't ask me to build anything for you. It won't be square, but it is something that I like to tinker with his woodworking.
Elizabeth Maora:That's awesome. And, um, for our audio listeners, I just, I have to say that Justin, your shirt does look a little bit big right now.
Justin Bogard:Oh, it does. Well, I have lost a little bit of weight. So a few weeks ago, um, Vicki and I got asked to be part of a weight loss challenge. And so of course being the competitive people that we are, you know, we signed up for it and I think we're about five or six weeks into it and I've lost almost 10 pounds right now. So congratulations. Yeah. Thanks. Thanks for noticing. I can't believe you notice it on a camera.
Elizabeth Maora:Yeah,
Justin Bogard:My shirts a lot more before.
Elizabeth Maora:Well, I noticed that kind of stuff. So, um, but I think it's really cool to Justin because you know, most of the time people make those resolutions at the beginning of the year and we're almost ready for Q4. I mean, October 1st is the start of fourth quarter. So congratulations little late to the game,
Justin Bogard:But never, never too late to lose a few pounds. Right. Just in time for Turkey day.
Elizabeth Maora:That's right.
Justin Bogard:From Turkey day, I got my Turkey day, sweat pants ready to go. They're already stretched out enough. So that's happened. But yeah, it's been interesting. So I'd never really worked out during this weight loss challenge. What I tried to do is control my portions. And so by controlling my portions, I've been able to slowly lose like a pound or sometimes two pounds a week. And so it's been, it's been kind of nice. So I, I am changing my diet as best that I can because I do like some foods just get, get over it. I think tastes so good, but I have had some salads and stuff. Yes. I've been, I've been as behaved as I can, but Vicki tells me she's like, you don't eat at night anymore. Like you used to. And I think that's probably contributed a big part of it, you know, so, but I didn't, I didn't realize I needed to lose the, a few lbs until we started doing this weight loss challenge. So I'm glad I did it. I'm glad I did it, but thanks for noticing. So, so what's, what's new.
Elizabeth Maora:Sorry. I just going to ask what your goal is. Are you, are you almost at your goal at your goal?
Justin Bogard:My goal was 10 pounds. I thought 10 pounds was reasonable. I could do it. I actually was going to try and do some, some workouts and stuff and I just, I got to hold myself accountable for the next challenge. So I'll make the next challenge to be starting to work out. So I'll just kinda got my portions under control now. And so that next step will be for start, start doing the workouts again.
Elizabeth Maora:Congratulations. Thanks.
Justin Bogard:So what's new with you.
Elizabeth Maora:We have a lot of things. Um, we're running now, um, a hundred thousand dollar project for rehab, complete rehab or down to the studs for some clients out of Washington, DC. Um, we're expanding to the state of Washington and Q1 next year. And, um, I'm bidding on 30 units to clean for the cleaning business that are short term rentals. So
Justin Bogard:Yes. Oh wow.
Elizabeth Maora:So yes, which this is just why like it pays, even if you're not a networker. I had met this guy. I was at a technology networking event having a conversation with another guy. And this lady said, Hey, I didn't mean to Ease drop, but I heard you say XYZ. And she's like, do you know this person? And I said, no, I've never heard of them. I sent him a message on LinkedIn. We had lunch. Um, this was a year ago actually. And we've kept in contact and he has a totally different model than I do. Um, so, but yeah, so, um, we have kind of our preliminary quote ready and we're meeting with him next week to go over, to go over it. So
Justin Bogard:Fantastic. And what's the name of the business again?
Elizabeth Maora:It's Elizabeth, Maora cleaning
Justin Bogard:Elizabeth Maora cleaning owned by Elizabeth Maora ran by Elizabeth Maora
Elizabeth Maora:That's right. That's exactly
Justin Bogard:Awesome. That's that's big news. Congratulations. I know that. Um, we talked about that before, how that was something new that you were starting. So it sounds, it sounds great. Like it's just, it's rolling. Sounds like better than you thought it would from the beginning. So that's great. Congratulations.
Elizabeth Maora:Thank you. Thank you. It's definitely been a lot of work, but the hard work pays off. So keep the course, if you're in the middle of something, whereas the beginning of it
Justin Bogard:That's right. Well, you didn't have to fail. You just moved forward. I usually just fail forward.
Elizabeth Maora:Well, I made a lot of mistakes in the last couple of months, but I'm learning that's for sure.
Justin Bogard:Well, super E. What's the, what's the big news that's going on right now?
Speaker 2:So the thing that's affecting all real estate investors, and you're gonna, you know, we talked about it on one of our last episodes is that you're going to be hearing housing providers as well. So what's affecting us as I'm just gonna go ahead and use the term real estate investors is the moratorium that the CDC came out with last week saying that it was illegal to evict any tenants through the end of this year. So there are some, and this is federal. So this is throughout all States in the United States. Um, and there are a couple of reasons why even if you might be thinking, well, I'm not a landlord, I'm a note investor, or I do flips. Um, but the issue is that because the CDC does not have the authority to do this, you kind of wonder, well, okay, what else are they going to do? What else are they going to ban? What are they going to make mandated? So that's why it's a real, it's a huge concern and should be a big concern to everybody.
Justin Bogard:Absolutely. So just for clarity, the CD CDC is a centered disease control, correct? Yes. This, this government body put a moratorium on evictions, the center for disease control. This is definitely odd. And I agree with you. I don't think they really have the authority to do that. And I believe you are taking this to the state right. For our state.
Elizabeth Maora:That's right. So part of, and this is one of the reasons why I'd like to encourage everybody, no matter what state you're in or where you're investing is to be involved with your risk. So it's your real estate investors association in Indiana. We're only one of five States that have a statewide CIREIA. So we're really fortunate here. Um, and so our attorney, Jeff Jenks, he filed a lawsuit in July saying that the eviction ban that our governor, governor Holcomb put in place was unconstitutional. Um, and so that actually the ban was lifted August 14th was the day for that. But then this band from the CDC came out. So we've been doing a lot of fundraising, um, for any type of, um, modifications that we need to make for the lawsuit. And then also for any type of further lawsuits or, and especially the lobbying that we're going to need to do. So. And one of the things just so you know, that, that we've done is, you know, there's so much, there's so much negativity with everything going on. And part of the problem is that there is a place called the eviction lab and they're funded by bill and Melinda Gates foundation. They're funded by Facebook. And the issue with this is that they have numbers that are completely inaccurate. So there was just, this, there's a story in Indiana star Lee, or excuse me, Indianapolis star last week, which is our local newspaper here, that there could be up to 34,000 evictions in the state of Indiana. The numbers don't add up for them. So, and then about two weeks ago, there was a story that Marion County was going to have a record number of evictions. And when we did the math, the only thing we would have maybe a 4% eviction rate and Marion County, which was much lower than normal eviction rates. So with all of this misinformation out there where you've started a campaign, a really positive campaign called, I love my landlord. So just want to keep you on ball. It's pretty fun. And even, I mean, I own my personal house, but I have one in my front yard and one of my neighbors commented that it was nice to see a nice sign with everything going on. Um, you know, so yeah, and this was a neighbor that I actually just met two weeks ago. So that was pretty cool that she
Justin Bogard:Absolutely. So something that you mentioned, um, at the beginning of your lead in about the CDC, was how it can affect note investors and people might be wondering, well, if you're the bank, how does that make sense with, you know, a moratorium on evictions? Well, some of us that own notes, the borrower is actually the landlord, right? So if they're the landlord and they have a tenant in their property and a, tenant's not paying because of Colvin related things and they get that moratorium then guess who else is not getting paid the bank, right. Which is us a note investor. So that's, that's how it can get affected for the note investing side as well. So I'm not sure I haven't looked in our portfolio to see which ones are our rentals that we have notes on as well. I believe we do have a couple, but, um, yeah, that's how it can be affected. So it is a little odd for the CDC to come out and say that they're going to put a moratorium on it. And I think we all get it right. What they're trying to do. They want to protect, you know, the people that are in that situation so that they aren't kicked to the streets and, you know, landlords have a bad name to begin with, right. Elizabeth that's right. Most people frown upon landlord and then look at them as the bad person. And there are definitely some bad eggs out there. And just like in any real estate investing group, we've all heard stories about certain investment companies, investment groups, and they just take advantage of people and they use Ponzi schemes and stuff like that. And at the end of the day, there are bad note investing people as well, but it's not everybody, right. It's just, it's a small group of people that are a cancer for all of us that give us a bad name. Um, and so it's, I like the slogan. I love my landlord
Elizabeth Maora:And yeah. And I would accrue to you. So I had, cause we manage traditional rentals also. So, um, uh, two of my residents also, like they sent us, they did little videos for us. I was saying why they loved living in our properties. So we're going to be posting that actually that starts tomorrow. And just, and so that's why we're creating our own, our own hashtags. So if you do live in the state of Indiana and you have residents and, or tenants, whatever, however you refer to them, we'd love to have your story. So you're welcome to send it to me because we want this really positive campaign. And so to get the public on our side and then we're going to hit them with, okay, well, these are the actual numbers of, you know, maybe there could be a 4% eviction rate. So just to go at it at a totally different angle.
Justin Bogard:Absolutely. What does that hashtag again,
Elizabeth Maora:I love my landlord.
Justin Bogard:So hashtag I love my landlord on any social media account, right? Yes. Awesome. And then if they want to send you the videos and stuff that you mentioned, where would you want them to send that to?
Elizabeth Maora:You can send it directly to my email, which is elizabeth@ elizabethmaora.com and we would love them. So, you know, and even, and what I asked my residents, I said, Hey, if you want to do just a written statement, a couple sentences, or if you want to do video and they both were like, no, we want to do video. And the one she's kind of shy, but she did a great little video for us.
Justin Bogard:Yeah. And any little bit helps, you know, it's, it's, it's similar to, um, some of the, uh, focuses on CDC for this episode, but, um, for seller financing there, there always is a push to, uh, be able to create seller financing so that people like us can lend to other people and not have to have so much regulation on top of us to be able to provide affordable home ownership. And so that's one of the campaigns is that we're also pushing for seller financing is to have somebody with, you know, a sign in their yard or have them hold up a sign and say, you know, I got, I got my home because of seller financing so that the politicians can see that. And so they know that their constituents are the ones that are voting for them. And they're the ones that need the help because we all know the, the banking system. It's tough to get loans under, you know,$80,000 for your primary residence. Right. Cause they just don't like to lend below that. So that's, I'm glad to see that there is a campaign for, for that side of the business too, because like, like you just led into the CDC has put, has put a moratorium on, on this stuff. And it's just, it's just so odd to think about what is going on as it relates to this virus that came to the United States. I mean, it's just, it baffles me where we started in February, not knowing it was going to come over. Well, I think we knew it was gonna come over here, but I don't think we knew the magnitude of what this was going to lay out. So looking back at 2020, once we get to 20, 21, I, I think, uh, we're gonna, we're gonna learn a lot from this past year, but I've um, yeah, I love my landlord. I think that's a great title for the show.
Elizabeth Maora:It is. And then what, so we're selling these yard signs as a fundraiser for Indiana state CIREIA. And then, um, our next set of, of yard signs are going to be, I love my housing provider just to go along. Right. Cause softening our image as real estate investors.
Justin Bogard:Absolutely. I like that.
Elizabeth Maora:There's definitely, you know, there's a plan.
Justin Bogard:So w where can someone buy these yard signs?
Elizabeth Maora:You can go right to our website, which is IndianastateREIA.club. And we would be happy and we've shipped them also. So there are$20 if you are able to pick them up and there are$30 and we'll ship them anywhere, anywhere in the U S anywhere in the world, actually, we'd be happy to send them internationally and really get the word out. But you know, our big thing is that, you know, again, if you're saying, Oh, well, I don't, I don't have to worry about that. But whoever thought that the CDC would come out with this moratorium. So it, I hope that, you know, I really want our listeners to be thinking about, Whoa, okay, well, this has happened. So what else could happen? And what can we do to stay ahead of it? So right now we're playing defense, but we're, we're working so that we can play off offense and have a really good voice, um, with the media in housing providers for no matter what you're investing in.
Justin Bogard:Absolutely. Absolutely. And thanks for putting all that together. I know you are the president of our Indiana state REIA group. So thanks for putting the initiative together and moving forward with this and getting Jeff James involved. Jeff, Jeff is a great attorney. Hopefully we can get Jeff on our show soon.
Elizabeth Maora:Yes we, um, so he was supposed to be on our episode, but I'll tell you we had an emergency or not, it wasn't an emergency, but he had to go before the Court on this lawsuit. And it was kind of a, a last minute bury into, so this process has been really interesting him too. So everybody's learning a lot of different things right now.
Justin Bogard:Yeah. You know, you always spinning plates that's right. All right, Elizabeth. So, uh, what else you got going on?
Elizabeth Maora:Well, I think also one of the things just to help our listeners and our viewers is that we are almost to Q four
Justin Bogard:That's right
Elizabeth Maora:Quarter, which October 1st starts the fourth quarter. Um, and you know, just kind of one wanna, we want to encourage you all to think about your goals, both professionally and personally. I mean, Justin's already ahead of his weight loss goal. So I started a pretty major detox actually this weekend. Cause I have a birthday coming up and I always want to be at a certain weight for my birthday.
Justin Bogard:Understandable, happy early birthday.
Elizabeth Maora:Thank you very much. Um, you know, but we just wanted to encourage you in your businesses also just to start thinking about 20, 21, if you haven't already, our planning officially starts next week, actually for 2021.
Justin Bogard:Good. You guys are, you guys are on it. You got a good plan, a good system together for your business.
Elizabeth Maora:Well that system's being tweaked at all times.
Justin Bogard:Write it in pen. Can you?
Elizabeth Maora:No, absolutely not. And it doesn't matter, even if you're brand new to the housing provider, the real estate world, or if you're a novice, just having some plans and knowing, especially right now, you know, to be flexible is to be open really, to, you know, whatever's going to change in the next month and we have an election, right. The election in November, which is going to be really big.
Justin Bogard:Yeah. It's interesting because a lot of, uh, Malin votes are going to be a big part of it. Right. It sounds like it. Yeah. So I heard, I don't know if I read something on something, I shouldn't be, you know, social media shouldn't be reading, but they led me to believe that assuming there is a lot of Malin votes, the, the counting of them is going to take significantly longer the process to probably audit them and to figure out the numbers. So I don't know if that's really true or not, but I don't think I've done a Malin vote before. I've always been the in person, guy. I just want to go there and fill out the ballot and put through this Scantron machine or whatever it is.
Elizabeth Maora:That's right. Yeah. This is going to be interesting into, you might want to know, like, I mean, at least in, in my township, um, we have a new voting location, which was actually that, that was the case for the primary. So they have decreased the amount of locations where you go to vote at least here. So just make sure that if they've done that in your area, that you give yourself ample amount of time, if you're going to vote in person of the line for the primary was insane. So yes. How long was it? Was it, so I am ashamed to say that I did not vote in the primary because the line looked like it. I was probably going to wait 45 minutes to an hour. Holy cow.
Justin Bogard:That's a, that's a long line and there's probably no good time to go there. Right.
Elizabeth Maora:Unless you're, unless you're there. First thing I would say. So just make sure, you know, do a little bit of planning on your part, especially if you vote, um, to make sure you know where to go or if you're going to vote Malin, you know, certainly do that as well. But we have lots of changes this year.
Justin Bogard:Um, we're, we've, uh, we've seen, seen a lot and we may not have seen everything yet. Hopefully we're, we're towards the end of all this stuff that's been, been weighing us down, but we'll see, only time will tell, as I, as I tell people, I don't have a crystal ball, but I do have a rear view mirror. So we just look back and we see what we've gone through and how we've changed and adapted and really adapted as is the best word. It's like, you, you just deal with what's in front of you and you just change your business around it for the better. And most importantly, you've got to help out. And I think helping out our borrowers and our tenants and just being understanding of the person that is living in the dwelling, it isn't an investment for us that we're dealing with with rentals or housing or being the bank on stuff. And, um, you know, it's just at the end of the day, it's like, if someone has a struggle, if you help them out today, it's gonna pay dividends for you in the future. Cause they're going to remember this and be like, Hey, I got, I got my get out of jail free card or, or whatnot, or I got help from such and such, or I got forgiveness for such and such. And, and I think that's really gonna, gonna help out our, our country if we all can do it, not saying everybody's gonna do it, but if we all can do it
Elizabeth Maora:Well, what are you seeing in the note space right now?
Justin Bogard:Well, I'm seeing a lot of positive signs. So the data that comes out for mortgages across the country, I get a lot of my information from black Knight financial data. And so they keep a good monitor on mortgages in general. Like they're not including a lot of what I call mom and pop generated notes. So our finance notes, but it's more like the Fannie Mae, Freddie Mac Ginnie Mae FHA VA paper, the institutional paper from the big banks, you know, bank of America, Wells Fargo, chase, all those JP Morgan, that data is telling us that less than 7% of all those loans are either are delinquent, which could mean forbearance as well, which it got up to close to 8% during this time. And now it's back down under 7%. So it's slowly getting trickled back down to what normal is. Normal is anywhere between, I'd probably say four and a half to maybe 6% is normal throughout the year. It'll kind of even flow throughout the year. And so we're seeing a lot of positive signs. So of all of these forbearances that have happened because of code related stuff, 25% of them at the end of their expiration period, which was the first, first one was 120 days, I think have 25% of those people have paid off their mortgage or refinance somehow to where they've paid off that debt. Okay. Which is a good sign. And then a few hundred thousand of those were like complete payoffs. And most of them were just a renegotiation of the contract or they were able to refi because the rates are so low right now. And remaining folks have asked for an extension, which is going to last another, you know, till the end of the year or another few more months. And so those folks will see of that. How many stay delinquent at the end of it? So it looks like right now it's like maybe a half million, 300 to a half million that are probably have just stopped paying in general of that, that larger set, which I think that number is, is controlled is what it sounds like it's not as high as I thought it would just remember. In 2009, 2000, February, 2010, it was almost 11% delinquency rate. Wow. 11%. So we are not looking at today's time being like it was back then. So you talked about misinformation before. Well, here's my soapbox on misinformation about the mortgage note business. So there's a lot of people out there that are saying about how we're going to have all these foreclosures coming through and all these Oreos and be prepared for short sales. And it's right around the corner. There's going to be some more, but I don't. And I said this from day one, when we started talking about COVID back in March and April, that I don't see it, how it's going to be like it was back then. Cause it's not a financial crisis, but I do see this stuff going up. And now the signs are showing that it's tapered off. It got to where it was close to 8%. Like I said, now the default rates come back down. So I think it's going to be, there's going to be some more opportunities for people to invest in things that, um, that they, they normally haven't seen in a few years, as far as like nonperforming loans and just having Oreos. But I don't think it's going to be a rush to the courthouse and they're going to have so many properties to choose from that. There's going to be leftovers. You know, I think there's just going to be a normal, a normal supply of foreclosures. Do you think that's going to change at all depending the outcome of the election? I don't know. It's, it's silly to think that, but you can't count that out because there is such odd things going on with politics right now that you, I don't want to think that, but I'm not going to be surprised if things change in a different direction because of the outcome of the election. It's just, it's so strange to think that our election has so much impact on so many different things. Like traditionally you probably see the stock market change pretty consistently, as far as it goes up. And it goes back down like around the election. Like there's some sort of period of time to where you, you see the dips and dives. So if people play that normalcy out, they get out maybe before the election, then get back in when it goes low, right after the election, you know, and vice versa. So I wouldn't be surprised if something happened. I don't know what the shift would be, but I guess it depends on who's going to be in the office. Maybe there'll be a different shift, but we'll see. But yeah, I guess my soap box is that there is misinformation out there and, um, there will be nonperforming loans. There will be foreclosures will be Oreos. I don't think it will be to the magnitude that it was in 2009, 10, 11, 12. But at some point there will be, it's not going to be around the corner. I think it'll be, um, later in 2021, when we'll start seeing a lot of this stuff hit, hit the courthouses, maybe mid 21. Um, the banks have to have a time period to charge off loans, right? Elizabeth, and that time period, a lot of the big funds we'll wait because they'll get better pricing the longer they can wait when the loans are charged off. But to a certain extent, the banks take, get, get taken care of with insurance, right? Private mortgage insurance or that right. That's right now that helps them out a little bit.
Elizabeth Maora:I'm still, I'm blown away just in that it's only, you know, you mentioned around the seven, you know, I would have thought it would have been much higher
Justin Bogard:Because the way people are talking, right? The data shows that we're not seeing that my portfolio hasn't seen like a 7% hit most people's portfolio that we help and we get them into deals with haven't haven't really seen a hip, but then it correlates to the type of borrower that we focus on. We focus on the borrowers that are really strong and are really adamant about hitting their marks with their payments and stuff. So you can see with pay history. Like I preach all the time to people about pay history. You can really tell a story about a deal. If you look at the pay history. And, um, some of the more riskier deals that we have, we, we realize why sometimes we'd have struggles with them is because of their pay history when we saw it before, but high risk, high reward. Right.
Elizabeth Maora:That's right. Absolutely.
Justin Bogard:Alright. Well, Elizabeth, this has been really good episode. We got a lot of information in a short amount of time. We're definitely out of time today. And, uh, I'm Justin Bogard from BrightPath notes. This was episode 17 and I'm Elizabeth with Elizabeth Maora. All right. Super E. I can't wait for our next episode because we're going to have an exciting guest on and uh, we're going to be shooting at well, you'll be shooting at a different location as well. So we'll, we'll leave that kind of for suspense for our next episode. Get ready everybody. Right. Don't forget to check out the video of this, this podcast on our YouTube channel, bright path notes, YouTube channel or Elizabeth malware's YouTube channel. All right. So next time guys do with show was produced by Justin Bogard and super E sponsored by BrightPath notes and Elizabeth Maora. Thanks for listening and watching for our show.