Investor Confidence: The Role Of Education And Experience In Maximizing Returns And Minimizing Risk

 

Do you want to control many things to limit risks and maximize returns? Then this episode is for you! Kevin Shortle explains the importance of investor confidence and how you can harness its power to bring great results to your business. Through education and experience, you begin to create investor confidence. He also provides examples of how investor confidence applies to note investing. So don’t let this chance slide, and learn to ace your returns with investor confidence today.

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Investor Confidence: The Role Of Education And Experience In Maximizing Returns And Minimizing Risk

I am here with another episode of the show. Thank you as always for tuning in to the show and sharing it with a friend. Whether that’s an individual, a real estate investment club, a note investors club, meetup groups, or wherever you’re talking investments, I certainly do appreciate that. Please go ahead and subscribe to the show. Subscribe to the YouTube channel as well. That would be great. It allows me to continue to grow the show and work with sponsors.

Speaking of sponsors, I have good news for you. I am working to put together a special event with NoteWorthy. You’ve heard me mention NoteWorthy on the show many times. They’re a long-time sponsor of mine. I’m also heavily affiliated in business with them. We do about 2 or 3 events every single year. This one, we’re going to be doing in September 2023. It’s going to be online and carried over the course of three days. That’s not going to be a full three-day training, but you’re going to enjoy that. I’m working with Ben over at NoteWorthy to get all of that confirmed and done and get that prepared for you for September 2023. It’s going to be a great event.

The note business is doing outstanding. We are, in my opinion, better positioned than any other part of real estate for any kind of negative turn in the economy. When the economy turns negative and affordability goes up, people are struggling to pay rent and loans. That increases the amount of inventory of available assets that we can buy in our industry.

We cleaned up the last mess. Historically, you can go back and look at it when the real estate market crashed for different reasons last time. In 2008, it started crashing and continued on for many years after that. What happened? The government tried to create programs that were going to solve it. It didn’t. Wall Street came in to try to scoop up good investment opportunities and found out that managing properties all over the United States is not an easy task for a company to do. They shortly left that avenue and went back to lending.

It still left millions upon millions of people in a very difficult situation because they were severely behind on their loans. They didn’t have any equity in their properties. What happened? Our industry reacted and we were able to buy those nonperforming notes at such a discount that we were able to go in there and solve people’s problems. That’s what we are. Good investors solve problems. When you have more problems, there are more problems to solve. You get the idea. The inventory goes up. If you’ve ever been considering getting started in real estate notes, this is a great time to do it. If you’re already in the real estate note industry, it’s going to continue to be great, whether the economy gets better or worse. If it does get worse, guess what?

It’s going to be more opportunity for us and coming in to save the day for consumers as well as investors who own properties. It’s a great place to be in. Speaking of which, here is my real estate note investor Tip of the Day, which I try to do about 4 or 5 days a week. Sometimes, I’m sure it’s probably more. Sometimes, maybe it’s even a little bit less. I do those when I’m out walking and something comes to me in the industry I want to share with my audience. That’s what I do. Many times, it is triggered by conversations that I’ve had on Zoom on one-on-one appointments with my clients. I offer consulting services and education services. I have many clients that I work with on a regular basis.

We’ll look at a case study or we’ll go through an opportunity or two, or we’ll have a good conversation. It leads me to think about those things when I’m out walking and putting together those real estate note investor tips of the day. If you’re tuning in to the show, those Tip of the Days are available on YouTube as is the video portion of this show. They’re also a video on LinkedIn, Twitter, and Facebook. You can find those there. Look me up and you will find those Tip of the Days. They’re good. I’ve been doing it for a couple of years, so I’ve got a lot of good content in those.

I received a couple of emails on it and a couple of things through the various social media I mentioned where I did a Tip of the Day. I was talking about investor confidence. That’s so important to have because investor confidence enables you to move quickly on investment opportunities or retreat on investment opportunities if things aren’t right. It allows you to make quicker decisions if you’re in an investment, whether to make some changes, collections, make a move, a foreclosure action, a resolution, or do a loan modification. All these things come with confidence.

Investor confidence enables you to move quickly on investment opportunities to make quicker decisions. Click To Tweet

When you have confidence as an investor, especially in this industry, you control so many things that you can limit your risk and maximize your returns. You hear me saying those things all the time, and it comes from that. It’s investors’ confidence. Whether you’re investing in the stock market, traditional real estate notes, or anything else, when you have the confidence to do things, it makes a world of difference.

Education

Where does that investor confidence come from? The reality is I broke it down into two parts on my Tip of the Day. The first one is education. The more knowledgeable you are of an industry of what can go right and what can go wrong, that guilt builds up all of that confidence. You start to understand what you’re capable of. You can work within your skillset. You understand that there is a risk that may be out of your control and there is a risk that you are able to control. You can change your reward and how you negotiate better. All of this comes from education. I’m talking video, reading, and listening, any kind of education that you’re getting, you can’t complete your education until you make the investment.

 

I tell my clients and every audience this all the time. I believe I’m the best instructor in this industry. I’ve trained more people in the industry than anybody else. I’ve been teaching this longer than anybody else in the industry. I have created some of the top investors in this industry. Some of these investors have gone on to create products like Paperstack. Some of these investors went on and created things like NoteRules. There are all kinds of things that they have done because of the education that they have received from me.

By extension, the continuing education that they have received from me but all of those people and all of my audiences always know that I say, “You still have to complete your education by making an investment and going through that process.” When you’re learning this, you can learn this industry quite a bit and use all kinds of case studies. I love teaching by case studies. People resonate with stories. It makes sense to them. That’s how education had been passed on for eons. It’s a part of who we are as human beings to learn by stories.

Part of the way I teach this, and others have copied and others do the same thing, is I teach by case studies and show how things are done. It’s super simple to sit back and listen or to watch and go, “This is easy, this is great. I could invest the $30,000. I checked a couple of ratios. I do this and I’m in.” In a way, you are right. However, you’re doing it hypothetically.

The big difference is when you have to send that $30,000 to buy that investment, then everything becomes real. All of a sudden, all those fears, which is a lack of confidence, start to come in. You are like, “Did I miss anything? Am I doing the right thing? Is this right? What about that payment history? Did I see this document? Was it recorded properly? What if I lose? What if the economy changes?” All these things start to come into play. That’s where some people get to a point where they can’t pull the trigger. They’re educated enough, but they can’t complete a transaction because they don’t have the full part of the confidence yet.

Experience

What’s the other part of the confidence? It’s experience. The more you do something or the more you do anything, the easier it becomes because you simply learn it. Part of it becomes muscle memory. Part of it, you automatically configure. Think about when you first started learning to drive. You went to driving school maybe and learned about driving. There is a big difference when you have to get in that car and drive. You have to build up your confidence. How do you do that? You have to drive the car. Do you want to drive that car yourself? Is that typically how a parent would do that?

Think about this when your kids get older enough. Mine are older, but I remember this with my son. I bought him a car at fifteen. I know kids are waiting until they’re 17 or 18. He couldn’t wait to get a car. My son was among those. My son got a car vehicle when he was fifteen. It was a stick shift. That’s another thing that most young people cannot drive. I loved it because he’s a car guy and wanted to have a stick shift. I was like, “That’s great. Your friends won’t be taking the car because they don’t have to drive this. You won’t be on your cell phone because you have to drive a stick shift vehicle.” There were all these compelling reasons.

I get him the vehicle. What does a smart parent do? I’m going to give some guidance to let him build up his confidence in driving, so I’m teaching him at first. He’s sitting in the passenger side and I’m educating him like, “Here’s what you do with the gas, the clutch, the brake, the shifting, and the checking of mirrors.” All those sorts of things, I let him watch me do. That’s a part of the teaching and education. I’m not the kind of parent, and I don’t think anybody reading this would be, to say, “You saw me do it. I pointed out everything you need to know. Here are the keys. Go have fun.” It doesn’t work that way. Why? It’s because he doesn’t have the experience. If he doesn’t have the experience, all the education in the world is not going to save him from a bad experience.

All the education in the world will not save them from a bad experience, but coaching and mentoring can. Click To Tweet

What did I do? I got into the passenger seat. He’s in the driver’s seat. I’ve got my hand on the emergency brake. I tell him again and I’m coaching him through, like, “Start to push the gas. Start to come off of the clutch a little bit. Stop. Do you feel that? Do you feel that it’s starting to move? Do you see where that framework is? That’s where you want to work with the clutch and the gas and be able to shift gears.” Where did we go? We went to a big empty parking lot so he wouldn’t get into a situation where we couldn’t stop quickly enough to prevent an accident. This all makes so much sense when you think about it this way.

Here’s the thing. I sat next to him and coached him. I guided him and mentored him on driving the vehicle. It makes sense. I’m like, “Start. Stop. That’s great. You’re done for the day. We’re moving on. You’re not still not driving by yourself.” We had to go through multiple times until he and I were confident enough to go on the roads because that’s a different experience than the parking lot. The parking lot got him the confidence level. The education got him to the experience level enough where he could go through the parking lot so we have to go out on the roadway. The roadway led to highways.

It was an experience. I was acting as his coach or mentor the whole time until there was enough confidence in both him and me that he could take the car out on his own. Is there still an inherent risk in him taking the car out on his own? Of course, but that’s where he can always come back and say, “I’m having a little trouble putting this into fifth gear. I’m having a little trouble doing this. What’s the best way? When I parked on a bridge, I had a little trouble. I slid back. What’s the best way for me to do that?” I can continue to educate him and help him with his experience until a point that he doesn’t need me anymore. He’s got the full confidence to go out and make his own decisions. It went great.

This is the same thing in note investing. The education part is easy. To gain the experience, you have to make a decision. It’s very simple. You can learn from trial and error. I could have thrown the keys to my kid, put him in an empty parking lot, and said, “Try it out. Figure it out. Make sure you know where the break is. Don’t get hurt.” What can happen? Somebody can panic. You get into an accident or you have a bad investment experience. As an investor, your experience is either trial and error, which is risky financially and everything else to do, or you have to learn through the experience of other people. That’s where the coaching and the mentorship come into play in a new investment venture such as notes.

 

There are certainly some parallels for you real estate investors getting into the note world, but there are differences. I’ve seen traditional real estate investors come into the note business brimming with confidence thinking, “I bought so many properties and hundreds of properties. This will be easy.” They run out and do it on their own and go, “I didn’t see that happening. I didn’t understand that.” You didn’t have the experience in this niche. The experience is either trial and error, which is going to be expensive or you get yourself a coach or a mentor.

It’s important to get the right coach and mentor for you, 100%. I had an email from somebody. I mentioned this in my Tip of the Day. The email comes in and says, “I’ve tuned in to your show. I’ve seen some of the things you’re doing. We need to meet. Is there a way that we can get together for a conversation?” I said, “Absolutely.” I sent him a free link and said, “Schedule a call. Let’s talk.”

He shared a little bit about his story. He had invested in somebody with some experience or so he thought. He bought him into a program. This person was going to help him. He found out shortly that this person didn’t have the full experience level that he was led to believe. I wasn’t there. I don’t know how the whole thing worked. I can only tell you through the email this person didn’t know enough to teach this person the right way and it cost him a lot of money. I won’t go into how much money, but it’s a substantial amount of money that it cost him.

 

Thankfully, the person who sent me this email was sharp enough to recognize early on, “I got the wrong person helping me here. I get into a bunch of these bad deals. I got to figure out a way to get out of these things. It looks like things may work out.” He also reached out to me because of the experience level that I have. That’s important for you to know the background of the person.

There are some people in this industry that are relatively new that are selling education. They’re looking to attract other investors, but they don’t have that experience. It’s easy to find out. Also, there are some bad players in this industry. I hate to say it, but there are some in the real estate business as well that’s bad players. You’ve got to be able to get online. Look some people up. Ask around. Talk with the person who owns the company. When people want to learn from me, they get to talk directly with me. I’ll send you an email and we can have a conversation. Not all companies do that. There’s something to that.

Do your own research on who that experience should be. The bottom line is that’s what it comes down to. The education that you get and the experience. Hopefully, what you will find is the right person to work with. Gain that experience without getting hurt. You want somebody who can be there to help you through that whole experience.

That confidence then enables you to start to look at all of the inventory in the industry. There’s inventory that comes to us from known sources that are traded on platforms. There’s inventory that comes to us from known sources through what they call tapes, which are spreadsheets of assets. There are various ways to buy in the industry. Sometimes, sellers set a price. Sometimes, they do an open bid situation. Sometimes, they do a blind bid with a deadline. There are all kinds of different ways. You have to understand the various ways and who the sellers are in the industry that you’re dealing with.

You also can deal with individuals who are so-called mom-and-pop investors, which might be local real estate investors who are creating notes. In reality, that’s where I started. The first notes that I ever got involved in were also called mom-and-pop notes. Why? It’s because that’s where the inventory was. Banks weren’t selling notes. Individual people were selling notes.

The people that I originally got involved in the note business were people who were coming up through the inflationary days of the Carter administration when mortgages were 18% to 19%. As I’m recording this, they’re about 7.5%. Imagine 18% to 19%. You have people who are trying to sell their homes and no buyers. Why? It was because everybody was like, “I’m not going to get an 18% mortgage for 30 years. There’s no way I would do that.” What did homeowners do? They said, “You don’t have to go to a bank. I’ll finance it for you and I’ll do it at 9%. I’ll do it at 8%,” which was a huge bargain. A lot of people started seller financing their properties not necessarily because they wanted to but because they had to sell their property.

What we did was find those people and see if they wanted to sell their notes. We weren’t buying from an institution, a sophisticated syndication of some kind, or a professional real estate note investor or seller. We were buying from an individual or an investor who may have only done that one note in their life or maybe done a couple of notes.

I’ve got a good example that I’m going to show you here of those types of notes which are different than the ones that you’re typically going to see on trading platforms. Every note has things that work towards the value and work against the value. This is a part of the education and experience level that you need to know. As a smart investor or as an investor with confidence, you learn how to weigh out the good and the bad of the note to see if it falls within your individual risk tolerance for both risk and reward. That’s what you do. When it meets, you move forward. When it doesn’t, you retreat.

As a smart investor and an investor with confidence, you learn how to weigh out the good and bad note to see if it falls within your risk tolerance for both risk and reward. Click To Tweet

Let me show you an example of what I’m talking about. This is a new case study. In fact, as I’m recording this, I finished putting this together. It was a deal that we looked at not long ago. This is a simple example of a local real estate investor-created note. Let me show you what they look like and if you have the confidence enough to buy something like this.

First of all, it was a nice-looking property. It’s in a good working-class neighborhood. It is right in that average home price for the area. We knew right away that it was a local real estate investor who owned several properties. All of them were seller financing-created notes. This local real estate investor in this area buys properties and then turns around and sells them with seller financing. They are probably renovating the house in the meantime. That’s the typical model for something like this. They buy a house, renovate it, add value to it, and sell it with seller financing to make it easier for more people to buy the property. It’s fantastic.

Also, they get to create a note where they’re not the landlord. That’s what a lot of real estate investors start to like. They get the cashflow like they’re a landlord, but they’re the bank. That’s the difference. The person living in the property has to maintain the property. The person living in the property has to pay for the insurance, the taxes, and everything else. He has to handle the repairs on the property.

This is a nice-looking area. How did we know that this is a local real estate investor who buys property? We know that because we do proper due diligence. It’s amazing to me how many people do not learn proper due diligence. All they know how to do is look at the numbers and make an offer on the numbers. That’s crazy to look at the numbers. The numbers are typically numbers that somebody is giving to you. Don’t you want to trust but verify? Doesn’t that make sense?

You have to trust but verify. That’s what your due diligence is all about. You should be like, “Show me the paperwork. I know you’re telling me the note was written at this amount of money and at this percent interest rate and the payments are this. They’re making their payments on the first of the month every month. I know what you’re telling me. I can run the numbers like that, but I’d like to see that. I’d like to verify that information.”

Thankfully, all of the public information is available online. I say all, but sometimes, you do run into a county where you’re not able to access that because they don’t have it online. The vast majority, let me put it that way, of times, you’ll be able to find the information that you need online. My clients hear me say this all the time. Our goal is to know more about the note than the note seller does. I can’t tell you how many times that happens.

We were laughing about it with another client of mine because we found some things that the other person either didn’t know or was trying to hide from us. Either way, we figured it out. We did our due diligence and looked up the owner of this note and the property. Lo and behold, when you look them up, there’s a whole list of properties and notes that this person owns under their real estate company. This is a small investor who is doing great out in this area and crushing it. He is finding all the properties at a discount, fixing them up, selling them, and creating paper. He is very happy. What oftentimes happens is they need more capital. They want to cash out of some of their notes to get more capital to do what? Buy more property to fix it up to sell and create more notes. It makes sense to do that.

Since we did our proper due diligence, we established that in the very beginning. Why is that important? That is important because don’t you want to market to that person directly? Don’t you want to ask them about additional notes that they have? This note came to us not directly from the individual who owns the note. It was a note that was being wholesaled. We often say brokered, but wholesaled.

It was another person who found this investor who got their note and said, “I can sell that note for you,” and they’re going to make a fee. I have no problem with that, but I’m also smart enough to go, “This person owns a bunch more notes. Maybe I need to reach out to this person and find out what other notes they have.” I don’t have to have all the money to buy all of their notes. Let’s say they have twenty notes. Maybe I don’t have the capital to buy all twenty notes. I don’t need the capital to buy all twenty notes. I could buy a couple of them, but I have other people who may be interested in buying those other notes and making a fee off of those. I buy what I can and make a fee off the other ones.

Doing the due diligence not only tells us about this particular deal and the way it’s papered up, which is one aspect of it, but it also enlightens us to the fact that we have a lead here that we can follow up because this person owns a bunch of notes already. They’re going to be creating more notes in the future. We would like to be the go-to person for this note creator who’s a note seller. Does that make sense? That’s all two things we accomplish by doing the due diligence. We learned about this note. We verified all the numbers within this note so we could do the checks and balances on everything. We also established, “This person is a note creator. We want to establish a relationship with this person.”

It’s a $100,000 property. I rounded that a little bit. Some sources went higher, like $106,000. Some sources looked a little bit lower. I can have a local person do a BPO before I buy this. Here’s the thing. They’re asking $51,000, meaning if I paid their asking price of $51,000, it’s backed by something worth twice my investment. Am I safe? If things went horribly wrong financially and this person can no longer afford to make these payments, I’m in it for $51,000. My collateral, the property, is worth $100,000. How could I lose money?

If the economy goes down and this house is worth $80,000 and took a huge drop, am I still okay? Yeah. I’m still okay at the end of the day because if I have to foreclose or the property is sold, or maybe the borrower says, “I lost a job. I’m going to move. I’m going to sell the property,” I still get cashed out. I’m very safe. The unpaid balance is $59,443. I’m paying less than the unpaid balance. That’s my discount. That’s the extra yield that I’m going to get when this loan pays off. There are 170 payments remaining and the monthly payments there are $585.51.

I went back and did a full amortization on this, which takes a couple of seconds, and said, “This person got this loan in 2017. They are right on schedule with their payments on this loan from the origination.” That means they’ve been making their payments every single month since 2017. Do you remember my little scale analogy here? You start to see the things that benefit this note. I haven’t seen anything that’s working against the value of this note. We’re seeing these people have been paying. They’ve been paying directly since 2017. We have years’ worth of seasoning on this. We’re buying it at a discount. Our investment in UPB is good. We’re buying it at low risk because our investment versus the collateral is very good. It’s $585.51 per month.

My yield on something like that is going to be based upon what I pay for this. If I pay $51,000, my yield is 10.5% or something. Maybe I’ll offer something less. Maybe I’m looking for an 11.5% yield. I put that into my financial analysis. Let’s say for 11.5% of buying $585.51 for 170 months, I would pay $49,022.77. That would give me $11.5%. Maybe I make an offer on that and we end up at $50,000. I’ll be around a high 10% or around 11% on this deal. This deal makes sense.

Let’s get into the paperwork. This was a very simple mom-and-pop style promissory note. It’s a simple straight-to-the-fact typical mom-and-pop. This didn’t go through an attorney and all that stuff. They don’t need to. Most of these promissory notes these days are templates. It’s simple. I can $70,000 in 2017. I can see it was 8%. I can see that the payments were $585.51. I’m verifying all of that information. I look at the signatures on this. It’s a mom-and-pop note. It’s simple. Many people would be nervous if they didn’t have the experience and say, “That’s it? There’s nothing else here? They’re missing this paragraph. They’re missing that paragraph.” This note is fine.

One of the early notes that I made probably within the first six months of the business when I first started was a handwritten note on spiral notebook paper. You could see the spirals right from where they copied it. It was a handwritten promissory note. It had all the key ingredients. There was no problem at all. It probably wouldn’t be your first note because you don’t have enough experience to recognize this. This may not be your first note either if you didn’t have the experience or the guidance from somebody like myself, but this is fine. This is all that you need.

Let’s look at the security agreement that they have with it. This is a very simple bond for deed. A bond for deed is a simple arrangement where it is like, “I’ll seller-finance the property for you, but you’re not going to get full title to the property until you pay me in full.” That’s what a bond for deed relationship is. It says, “After timely payments in full have been made for a set price, the grantor agrees to deliver the grantee a warranty deed to said property pass before the notary of grantee selection and grantee’s expense.” Once you pay me in full, I’ll deliver a warranty deed to you. It’s a simple arrangement.

That’s almost the whole arrangement that they have there. There was an additional page on there that it looked at that talks about the rights and obligations of both parties. It is like, “You’re responsible for paying all of this. If you don’t, as the note owner, I have the right to accelerate the loan. I have the right to foreclose upon the loan,” that sort of thing. It gave me nice information down here to verify the numbers that I was told about the loan. I can go back again and check my math. Everything came out properly here. That’s what I’m buying. I’m buying the promise and I’m buying this bond for deed. That’s it. I’m taking over where this other real estate investor left off so I start to collect the payments.

The borrower is unaffected. The borrower is going to get a notification from my servicing company saying, “The note is no longer owned by Mr. Smith. It’s been sold. We are your new servicing company.” They’re going to get two letters. One is saying, “The owner has changed. Here’s the new owner and here’s where you’re going to be sending your payments now.” Their payments don’t go up or down. They don’t change at all. It’s simply a different place for them to send the payments. That’s it. The phone numbers are there and everything else. In fact, Mr. Smith is going to send a letter letting them know, “I did sell that note.” They’ll get a hello and goodbye letter. They’ll get a so-called TILA 303 letter. All of those things will be taken care of.

I’ll have this professionally serviced because this note was not professionally serviced. A lot of seller-finance notes, mom-and-pop style notes, are not professionally serviced. They are self-serviced. There is nothing wrong with self-servicing a note, but there can be inherent problems with self-servicing a note. I don’t have time to go into all of those details, but it can be an issue.

This one, for example, is being escrowed. Escrowed money is not your money. If you’re collecting payments from somebody, principal, interest, taxes, and insurance, principal and interest are yours, but taxes and insurance are not yours. You are holding that on their behalf. That builds a whole other different relationship. It is technically a separate checking account that can be accounted for for their money. A lot of people who do these seller-finance mom-and-pop notes don’t do that. They put in the same slush account. I can’t do that. I’m running a business. I’m a professional in this industry. I have a little higher standard that I’m going to abide by here.

After we looked at this, it was like, “Show us the payment history.” Payment history is not a part of public records. We got that information from the seller. With this self-service loan, what he showed us, the real estate investor, was, “Here’s the money order that I get, and here’s proof that I deposited it into the bank.” He showed pictures of both of those including the stamp on the back of the deposit slip so it’s confirmed that the money had gone through.  He showed us everything he needed. Since he already had copies of those, he told me that he had created notes and sold notes before. This is not his first go-round. In doing this, he does it on a very simple basis that works for him. That’s no problem. I have no problem buying this.

If you’re new to the business, you’re used to seeing a spreadsheet from a professionally licensed servicing company that shows the entire breakdown of where everything was and where everything was paid. Thankfully, on this one, because we can verify the balance of the loan, they’ve been making their payments on time. If they had been late on payments, had missed payments, or had done any kind of loan modification, I would’ve needed to see that as well.

Even with this, I have an extra step to do. When I board this with my servicing company, they have to be assured of what the balance is. We’ll have a document created that will be signed by the real estate investor here as well as the borrower, acknowledging, “This is where the loan is. This is how many payments you made. This is how many payments are remaining. Here’s what the balance is. Here’s what the interest rate is.” All of that will be clarified so that a licensed servicing company can simply take over that loan.

With this loan, if you were looking at this with inexperienced eyes, you would probably be very hesitant to move forward because it has a few things built into it. There’s the payment history. How do we know that they’ve done this? Is that note fine? Is that all we need for the security agreement and the bond for deed? Is that all that you need? That’s the thing that experience brings into play that a lot of people simply don’t have. We see more notes that are professionally created in service before we buy them than we do see notes like this, which are set up more in a mom-and-pop scenario here.

That’s a good insight as to how these things work and also a good balance here in explanation. I hope that shows you how important education and experience are for your investor confidence. When you have investor confidence, you get to see more opportunities. Some people would call it being lucky. I wear these hats all the time. A lot of people ask me why I wear those hats. One of the reasons is my definition of luck.

I learned this a long time ago. Luck is the intersection of opportunity and preparedness. Opportunity is out there all the time. The lesson is to get lucky, you’ve got to be prepared. How do you get prepared? Education and experience give you the confidence and ability to recognize good investment opportunities and do your due diligence on good investment opportunities. You then have that ability to make a decision either to move forward, retreat, or gather more information to get more analysis going there. Once you have investor confidence because of education and experience, you start to get more lucky.

There you go. I hope you enjoyed this episode. Please, if you do want to have a conversation with me, shoot me an email at Kevin@KevinShortle.com and say, “I would love to have a conversation with you to see if this business is right for me and to see how you might be able to help me in the industry and in investments.” We’ll have a conversation. We’ll set it up on a schedule and we shall talk. Thanks again for sharing, everybody. I look forward to putting together another episode for you.

 

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