NIME 21 | Finding Cashflow Opportunities

 

There is more to note investing than buying real estate non-performing notes. Marty Granoff has first-hand experience in finding many and varied cash flow opportunities, mostly dealing with buying business notes and lotteries. Marty’s unique way of delving into the histories of sellers and brokers helped him land lucrative deals while encountering some distinctive and sometimes quirky notes along the way. He finds himself satisfied with the portfolio he’s established, but he still thinks the business exciting and remains diligent in tapping into other solid future income payments deals. Here, he recounts his interesting stories and explains how he goes about choosing the right investments.

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Finding Cashflow Opportunities And Choosing The Right Investments with Marty Granoff

Mr. Marty Granoff, welcome to the show

Thank you, Martin. It’s a pleasure.

We have a very special guest, Marty Granoff. He is someone that I met over the email or over the phone in 2013. He is someone that I’ve learned a great deal with and has acted in the form of a mentor to me as I was also a customer for you, Mr. Granoff. Moreover, you were my first foray into the note investing world as most brokers lead to Marty Granoff in terms of the cashflow industry. Welcome to the show. Mr. Granoff, can you give us a little bit about your background, if you don’t mind?

You firstly mentioned that you considered me mentoring you, you’re one of the best students I’ve ever had. You amazed me from the very beginning, knowing very little about the cashflow business other than having a note to sell and in no time being all tuned up and ready to go and get involved in stuff that I wasn’t even familiar with. You’ve done a beautiful job and then putting this group together is very nice. The educational aspect was wonderful. I’ve been in the investment field in general for many years starting in college. It was in 1992 when I was at a real estate meeting like these RIAs, groups all over the country affiliated with a national organization. This one was in Philadelphia and I lived in Philly and they were talking about real estate notes and I’ve got a message out.

They talked about real estate notes and I was blown away by it. That was a major turnaround in my future. What I wanted to do was I wanted to handle working with clients and types of investments and I started in the seller finance real estate note business brokering them to clients. I had many clients interested in this kind of product. That expanded into structured settlements, those who start getting approached by brokers with that kind of cashflow. Then lotteries came along. At that time, there was no lump sum option available. Every winner was paid out over 20, 25, 30 years based on the state, based on the game. We expanded into that and then all these other ones that just came along. The business became more and more fascinating as each year went by.

Let me stop you there because what’s interesting is in this group and in several of the other popular Facebook groups, the focus tends to be on non-performing notes backed by real estate. What you do is you cast a much wider net. Can you tell us a little bit about the different types of cashflow that you buy?

Let me mention that I did attempt to get involved in some of the vaulted notes years ago, for a small portfolio, five of them, with all kinds of wonderful plans of what I was going to do with these people, helping them, help you myself. It didn’t happen. I worked too hard, I felt and it wasn’t my cup of tea. We didn’t lose any money on that, but I decided I would leave in the notes up to you. The people love that stuff. We were going to stick with the performing.

Do you still have those five notes?

No. One way or another we don’t have them anymore and fortunately did not lose any money on that. We made a little bit, but it was the experience and we got them so cheap that figured the risk wasn’t too great, but it was too much time. I didn’t want to do it anymore. We’ve gotten involved in so many different ones. Beside the lottery, contest-winning as a lot of people don’t realize that the casinos, the Powerball and the progressive slot machines when people win the $1 million plus prizes on the progressive slots, many of them are paid out over time with numerous cashflows in that category. Royalty payments, business notes, where so many businesses were sold with seller financing. They set up just like real estate with seller financing. I went over our portfolio preparing for now here where we’ve got some land notes. A lot of attorneys when they structure settlements, their fees aren’t structured as well. They’ve got to wait because they’re getting a percentage of the future payments as they come in and they don’t want to wait for their money. I’ve got quite a few of those. We have a private school where we advance money on future tuition payments that were coming in.

Marty, could a motto be, “If you don’t want to wait for your money, call me?”

That would work. It’s amazing how many cashflow opportunities exist. I think I could be in this business for over a hundred years and still come across many that I never saw before. Conceptually, they’re all the same. The strength of the payor is the key.

Strengthen the payor, the borrower profile and the thing is that a lot of people come into the note industry and they think one-sided. Their focus is on, “It’s got to be backed by the real estate or else the bars are never going to pay.” A lot of your transactions have nothing to do with real estate. What is your thought process when someone brings you an opportunity? I know that you’re always inundated with opportunities. What’s the first thing that you do?

I’m looking to see the commitment and the history of the borrower or the buyer. Let’s say someone is buying a business. I’m looking for the amount of the down payment, the history of making the note payments, the experience of the buyer in a related business or some kind of past experience that will give me comfort that he’ll be able to operate properly and efficiently operate the new business. It’s all based on the payor and what’s interesting is I don’t run credit on people. I don’t know if I care, but if I hear that it’s 500, I get a little worried. I don’t run credit on people. It’s more of what they’ve done with a specific transaction that I’m looking at. That’s what I’m interested in. More times than not, thank God it’s worked out well.

I want to make a distinction. What Marty is saying is that he gets an opportunity from the note seller, but his main concern is with the person who’s buying the business or that’s going to be making the payments. That’s what he wants to know. Your concern is, “Who is writing me a check every month and how can I vet that person?” How do you vet the person if you’re not looking at their credit report?

The history of the transaction that I’m looking at. I’ve mentioned I want a decent down payment and I want more proof that the down payment was really made. I want to see the payment history on the note, six months’ worth or six years’ worth. Has he been paying on time and nothing skipped or no excuses? The history of the person, what did they do before they bought the business? Do they have another business or did they just inherit some money and they decided, “Let’s go and buy a business?” That would scare me off. That’s it with the business notes.

I know this firsthand having transacted with you a few times on the business note and we’ve also transacted on performing notes as well. The level of due diligence is like I’ve never seen. You drill down as deep as possible. It starts with first a few innocent questions and then it leads you down a hole where it’s almost at the point when you want to cry. That’s when I know that Marty’s probably gotten everything he needs to get.

I never realized I did that.

You’re making grown men cry. Moving on from business notes, tell us about the unique note you’ve ever purchased.

We were approached by somebody who started telling us this story. The story was that his father is an archeologist and he was on a dig in Turkey and while there, he got kidnapped by a terrorist group. They kept him and moved him around for quite a number of months that he was able to escape and got back to this country. He went to an attorney and they decided to sue Syria because Syria was a known supporter of this terrorist group that had kidnapped him and a funder and arming this group. They sued Syria and without much effort and problem, they got a judgment against Syria. As he’s telling me this on the phone, I’m smiling saying, “I’m going to take this judgment. You can use it as wallpaper.”

This person continued saying that our government put together a fund and it’s a Terrorist Victims Relief Fund and the funding for this fund is the fines that they collect from countries that are caught doing business with banned countries. We hear a lot about the ZTE thing where they did business with North Korea. They did business with Iran. There are a lot of people and companies that have done that, maybe not to the degree that ZTE did, and they agree to pay fines and some numbers were pretty big numbers and that fine money goes into this fund. The fund is managed by the fellow who ran the 9/11 fund in New York, an attorney who seems to specialize in coordinating these disbursements of monies like this. This funding has a ten-year life and there’s a certain form of excuse based on the number of judgments that qualify for this fund and the number of judgment holders that come into the fund and the amounts of judgments.

This person had already received a payment of about 13% of the amount the judgment was for. That was their first payment. They had a second payment coming up this coming January which is about three or four months from now. I didn’t know exactly how much they were going to get, but they seem pretty sure that they’re going to get a decent amount. He was looking for an advance on at least some what’s expected this January. I agreed to it. I did a lot of homework on this. There is a lot of information on the web concerning this. I spoke to his attorney. His sister came along. She had the same judgment. The whole family got a judgment. I gave her an advance. We’re expecting a nice payday for us in January, maybe February of next year. That’s definitely the most unusual transaction we’ve ever done.

How do you analyze it from the perspective of the discount that you’re going to offer? I understand business notes might be a little bit more streamlined, but something one-off like that.

I’d like to say that there’s a definite matrix that I follow, but there isn’t. It was based on whatever I think I wanted to make on such a transaction based on the size of the events. The interest rate didn’t matter. He knew we want X amount of dollars and she was willing to pay what I asked. There was no real formula involved. If I had a good night’s sleep or a bad night’s sleep, I can’t control that. It’s not as finite as one would think. It’s pretty open-ended.

It’s interesting how you get a lot of your deals. All of them come through brokers and what I found fascinating when I was reaching out to 20, 30 brokers, when I was first selling a partial of my business note when we first met in 2013, most of them have the same ten canned questions that they asked to go and do an initial vetting of the opportunity. After the first few, I realized how to structure my presentation so that it would garner more attention. Those are the magical questions that they always ask and if it passed the test, then it gets filtered down to yourself.

Find cashflow opportunities in everyday affairs like lotteries and casinos where they offer no lump-sum options for the winners. Click To Tweet

It’s good work that you did that.

I noticed that they are all the same. What’s interesting is the ambiguity that you don’t always know who’s a broker and who’s a direct buyer because they all c present well, which is good. That’s what they need to do to be effective.

It isn’t an issue but it’s a norm in our industry that there are very few actual end buyers like ourselves, almost everybody is brokers, which is not bad but it could be a little deceiving to sell them.

That was one of the things where I was vetting the vetter and I was asking, “Are you a direct buyer?” because I wanted to go right to the source. At the end of the day, you connected with me first but you had heard my name through other brokers that were connecting with you as well.

It’s very common. Three or four brokers will bring us the same transaction, yes.

Is it because the consumer is just out there on the internet popping up, “I want to sell my note on Google,” and then they get twenty people and they blast out emails?

It could be or they will list on Craigslist or whatever and the brokers are canvassing those lists looking for opportunities.

Since you deal with so many cashflow assets outside mortgage notes, what do you see in terms of inventory now versus five years ago?

Real estate notes are starting to appear in more quantity, again. There was a period there where I was taught to come up with some quality notes, but lately I have been seeing some more notes coming along. I think everything is still there like it was. Most of our business, it’s not in any one thing. It’s all spread out.

The diversification can help because you hear a lot of people crying in the industry now with the non-performing mortgage notes, that there’s a lack of inventory at low levels, whereas before, it used to be in abundance. The diversification is what helps you. If you were locked into just one niche industry, you would have to ride the wave with inventory but you’re funding Syrian refugees.

Let me mention another one that was so unusual when they came along. It was a TV syndication called Cheaters. I don’t think any new shows have been put together for a long time, but the reruns go on and on and on. We were approached by again, a broker who introduced us to the owner of the show. He had sold some episodes to a major TV network and they agreed to pay forward in quarterly installments over one year and he didn’t want to wait a year to get all his money. We advanced them on that and the network paid us each quarter instead of paying him. It worked out beautifully.

The process is still the same it seems like across the board. You focus on the payor. Out of curiosity because I’ve watched that show. It was a silly show back many years ago. Did you watch it before you bought the note?

NIME 21 | Finding Cashflow Opportunities

Finding Cashflow Opportunities: In the note investing industry, there are very few actual end buyers. Almost everybody are brokers.

 

Did you watch a specific episode?

Yeah. Did you watch any of them?

No. We happen to catch it on a different network. We saw a show to refresh my memory that it was what I remembered it being but it doesn’t matter. The network had the commitments and that’s what I was counting on and there was no out clause. There were no variables. They didn’t have to sell certain advertisers. That wasn’t my problem. They made their payments early. We did this twice. Some of the investment money came from our retirement plan to do this.

Knowing you how I know you, you have three areas of focus: the note seller, the payor and the business assets. Ut depends on what type of note you’re buying. The business asset could be a mortgage or it could be the lawsuit agreement, the instrument, if you will. What would you prioritize in terms of the most important one to the least important one out of those three categories?

The note seller is the least significant one. We do not need an account on him other than honesty. When I ask questions and seek documents, I want them to be responsive and sometimes I’ll find the note sellers answering my question very vaguely or avoiding them. If I sense that’s history, that’s it. I don’t care how great the rest of it looks. I just become very concerned about that.

You’re looking at the chemistry or the flow of the communication and you want to see it like it’s seamless and it’s flowing in a positive manner and you’re getting everything you need.

It’s the completeness of their answers.

If you see someone that is a motivated note seller, you’ve got to think that they have something in mind where they’re going to use the funds. Are you perplexed at all the people that are not responsive or they’re not moving at your pace to get you what you need?

Yes, it amazes me. We come across this note pretty often. Unresponsive or weak answered note sellers. They want to sell a note, but they’re just not coming through and that is frustrating.

You see that as a red flag or when they’re going to make payments to you.

I’m dealing with the seller. It’s his honesty with me and his completeness with me and they could tell me before I ask for copies of the checks, I’ll say, “What’s the payment history?” “The payment history is great,” and this happens often. When I ask for proof and they’ll send bank statements or deposit slips and it’s not great at all. Many times, we’ll ask them for documentation which they say they have and when I asked specifically for it, all of a sudden they don’t, “They paid me cash or they paid me by check or money order.” They gave me cash so I don’t have a record of it. When I start hearing that, they’re history.

Are they history because at the initial communication is that the pay history is great, not knowing if you’re going to delve in further?

In cashflow deals, look into the payment history of the person that’s going to be making the payments. Bet on the jockey, not on the horse. Click To Tweet

I’m not going to ask them and they will figure it on their own.

Knowing how many years you’ve been in business, it would be amazing how you could be in business if you didn’t verify the documents. Are we saying any type of settlement? What is the best way to sum it up, Marty, in terms of what you do? Anything that cashflows, you would have an interest?

Yes. Any series of future payments with a strong payor, that’s what I’m interested in. It doesn’t matter what it is.

Tell me about the payor. They’re looking for their experience.

The payment history and the financial strength as best as I can determine of the payor.

To say that you have all the brokers, because you have a lot of brokers that point to you and send you deals, how have you fostered the broker relationship over the period of time?

I think going to several national conventions a year or advertising like in Paper Source and having been around for so long, it helps. It’s one advantage of getting old.

A lot of the brokers are younger folks just getting in.

Maybe they hear from others, I don’t know.

There may be a broker school that has your name on it.

There is not that I’m aware of, but maybe. Maybe they’ll do some searches and find me. I don’t really know and I’m not complaining.

What’s the end game for you? Are you going to seek out a partner at some point to help you to move forward? Where do you see it going for yourself with your portfolio? Are you looking to grow it into significantly more of a fund or with the management team or just go how you’re going?

NIME 21 | Finding Cashflow Opportunities

Finding Cashflow Opportunities: You can invest in anything that has a consistent series of future payments with a strong payor.

 

None of the above. We’ve got a portfolio now that we’re living on comfortably. We have children and a grandchild. This is a great pass me down stuff to them. I do need some help with organizing things a little bit better, maybe for others to understand what I do better, but I had no desire to expand the business transaction. When opportunities come along and I like it and I have the money to go for it, I go for it. If I don’t, I don’t. There is no totally different attitude. I don’t even look at this as a business anymore. It’s just I’m making investments, instead of Wall Street these are my investments and their cash comes in or more comes in than I need, we have dollars to be able to buy new things. There’s no objective here of maximizing the portfolio. It’s a day-by-day thing.

With that said, you feel like you have good control over your cashflow or over what you’re doing with investments. If it went beyond that then you might make some bad moves.

I have no desire to bring more people on board or expand the business. My whole career, it’s been a one-person career and it’s worked and I keep thinking I can slow down now but it’s just not happening.

We’ve got a question, “I was not able to locate much as you being involved in any litigation or collection-related court actions in the event of default. Please explain your recourse as a creditor, i.e. your use of UCC filings.”

With the business notes situation, it’s difficult. We’ve lost money. Usually when the business fails, the UCC is really meaningless. The value of the equipment, whatever the UCC is covered doesn’t add it up to that much usually. It’s more cosmetic than real to follow the UCC, that’s how I feel. It’s a risk and that’s why we get higher returns on those kinds of cashflows to make up for that added risk.

How much emphasis do you put on a business note side into the business assets in terms of goodwill with long-term contracts in place? Were you able to vet future cashflows somewhat from it?

It’s very difficult at least for me to evaluate or to value a business. If the buyer was willing to pay X amount of dollars for the business, I’m going on the assumption that that’s what the business is worth and analyzing it from there. If they put 10% based on inventory and 90% on goodwill, it doesn’t sound great to me. If that’s the way they structured it, that’s the way they structured it. I don’t do an appraisal of the business if that might be the best answer. If I did, who knows what, what the number would come up with. It’s more so how much down payment did this person put down? What’s been their payment history, what’s been their previous experience before they bought the business? Those are the three key things.

Do you take it from the aspect of personal guarantors and seeing who is backing?

We like seeing that but we’ve had experienced that even with a personal guarantor, we had problems. It’s more cosmetic than meaningful.

Business assets, FF&E don’t add up too much if you have to take them back. I would think that goodwill is more significant if there are long-term clients in place or long-term contracts where you can do a projection of cashflow based on that for the business just to make sure money’s coming in the door. You have, in some cases, a new buyer for the business so you want to make sure they’re competent but there’s also cashflow coming in as they get ramped up.

I probably shouldn’t do all that stuff.

Marty, you do. You’re piecemeal. You just go. What you do that I’ve never seen before is you have a multiplying effect with your inquiries. You ask ten questions and then it leads to 30 questions and then you take it down and you delve into someone’s livelihood, someone’s experience and all that.

Discipline and diligence are the keys to finding the most profitable cashflow opportunities. Click To Tweet

Whatever I do seems to work more often than it doesn’t work, so thank you, Martin.

You’re most welcome. I know you usually speak at Paper Source and in IMN show too. What did you think of the IMN show for folks that might be wanting to check it out?

I thought it was an excellent production. They ran it beautifully and very well-coordinated. I never realized all supporting businesses there were for the defaulted note business of helping analyze the notes and helping track down this and that. All of those aside, your businesses had fascinated me. I thought it was done very well. It wasn’t geared to what I do as much as the defaulted note industry, but it was still very nice and it was always great seeing you there.

Thank you, Marty. I enjoy spending time with you as well and sending you some pictures of the family as they’re growing a little older.

You have a beautiful family.

Thank you very much. I thought IMN was interesting. They gave a macroeconomic content so you can see from an international perspective where the world economy’s going. Another good event that I think you’d enjoy is MidAtlantic Real Estate Summit with Dave Van Horn at PPR. He puts that out and it’s like Paper Source, it’s no pitch. They put on a lot of speakers. They give high level of content in a no-selling environment.

I’m familiar with Dave, but I didn’t know about this group.

I’ll send you the next one. Let me ask you in terms of the settlement. Is it pretty straightforward when you’re buying a settlement, what you have to do for due diligence or some lawsuit or a lottery winning or an annuity that you’re buying, insurance annuity or something like that?

Yeah, there’s very little due diligence required. You know who their payor already is. It’s a state lottery and we feel pretty comfortable with or we might be paying the lawsuit settlement. Just the mechanics of putting it together and we need to go to court and get court orders to do those. There’s a system in place to do that.

The court order assigns overpayments to you. The state needs to see that to send payments to you.

The theory behind that is full disclosure. They want to make sure that no attendant or the seller of the cashflow that everything has been disclosed to them of what’s going on. That’s the purpose of the court order and the judge review.

Does Dodd-Frank come into play with any of what you do?

NIME 21 | Finding Cashflow Opportunities

Finding Cashflow Opportunities: Never touch a seller finance note that originated after January 1st, 2014.

 

Very heavily. I will not touch a seller finance note that originated after January 1st of 2014. I walk away from it. I don’t care how they underwrote it, the variety about everything that they did and the mortgage person involved. If there’s a foreclosure or turnkey that comes along and they just kill the whole thing, I never touch it. There are enough others out there.

Just to restate that, any seller finance note originated after January 1st, 2014 you will not touch?

Yes. On owner-occupied, single-family homes or mobile-homes in business notes, there is no problem. On land, there is no problem, single-family owner occupant.

There’s a heavy inventory out there of contract for deeds and some have been originated after the January 1st period and then some have not. That may be a good piece of information for people that are in that market.

There were some institutional buyers who are not concerned about. They’re equipped with their legal teams and to underwrite it better and handle it better and I just don’t want to get involved. They are still sellable. There are investors for them but not myself.

There are some folks out in the group that doesn’t have a lot of capital to come into this game with, but they still want to be active in the industry. A lot of those folks turn to brokering as a way to start, which is very respectable if done correctly. What would you tell those individuals some pieces of advice? What does it take to be a successful broker in this market?

I think almost everybody in this business started off brokering as I did and I think as you did.

I started off selling a note to you, but then I went and bought a bunch of bad notes. That’s how I started.

When I fired a broker bringing me a transaction that they don’t understand themselves, that is obviously incomplete, that obviously has errors. They’re just on the superficial information, that’s a major turnoff to me. I would not want to do business with this broker. I like the broker to understand what they’re dealing with as much as they can and ask some basic questions. They have to learn better questions the longer they’re in the business, but to do a little due diligence on their own before bringing it to any investor like us. Instead of just throwing anything up against the wall and hope somebody’s going to stick. That’s what I look for in brokers. This is a fabulous business. It continues to excite me every day. It’s unbelievable, having been in there so long to still have the spirit that I do with what this business is all about and I wish I got into it sooner.

I spend almost 30, 40 years or whatever. The opportunities are wonderful. For a business that’s been there so long, there are so few people who understand it or even know about it and it puts us in such an advantage. I think this opportunity is all around us. Sometimes you watch a TV show and they’ll have a $1 million prize. How often do you think they’re paying out $1 million? Do you think maybe they’re buying an annuity? In many cases, they are buying an annuity and just do little homework. A lot of times, you can track these people down and pick up business that way just from watching television. It’s happened.

We had a good conversation that a lot of it has to do with just diligence and picking up the phone on a daily basis, making a certain amount of outreach to people like what you’re saying, whatever the business model is. If you’re calling on businesses that sold to see if they have a seller note that they can sell or you’re contacting a game show winner, whoever it is you need to reach out to, you need to do it through the phone on a regular basis.

I remember in the beginning when we first started getting involved with the lotteries. The toughest part is finding. They don’t want to be found. That’s a list of wealth managers and accountants all over the country. I’m on the phone. I must have made a 100 or more calls the day, one after the other and was able to pick up business that way. I found an outfit in Baltimore. This outfit turned out to be my initial main source of money to buy lotteries. All from cold calling on the phone, never even having met them. It was really unbelievable the business that came from that just making all these phone calls. I looked back out, “Where do they get the energy? Where do I get the desire?” It was there and when you do it enough, it’s not something difficult.

Walk away from deals where sellers answer questions vaguely, or avoid them no matter how great the rest of it works. Click To Tweet

You meet some fascinating people along the way.

How many cards have you got there? Do you have some other interesting cards on your desk?

I do different ones for different shows. I look for a time to chime in with my little cue cards because it makes me look like I’m doing something too.

No, you’re asking some excellent questions.

I think it’s important. It needs to be a win-win for everyone. If you don’t have a lot of money but you have time to go pick up the phone, then start brokering. If you have money and you’re not able to find mortgage notes, maybe business note is an avenue for inventory. Just go ahead and look for where people are not and be the best at that position.

I think we should mention as we talked about the pre-webinar here. Without knowing this for sure, my guess is that most small business is sold with seller financing. What’s a logical place that defines a source or who would know about seller finance notes? It’s quite obvious, the business brokers. There are business brokers all over the country. What a wonderful way to prospect for business loans by contacting business brokers, just seems so obvious to me.

I sold my company through a business broker and they would sell me out for a point. They would give you the name for a point. It’s a way of growing their top line.

They are getting a second income from a sale that already happened, a second commission.

We talked about it. It’s all academic if the person’s not picking up the phone on a regular basis in making that outreach. This is the point of the program where I ask you what daily rituals you have that helped you succeed and grow in business?

I don’t know if there’s anything unique here about this.

I know you walk your dog.

The first thing is walking my dog and then walking myself and then breakfast and reading the newspaper. I’m in the office usually at 9:00 working out of my home, which I’ve always done and checking emails and projects for the day or reading the paperwork. Unfortunately, I don’t have to look for cashflow sellers. I’m not going to compete with the brokers. Brokers bring me what I need to see and do and that’s my day. I’m managing the cashflows are some late payments or whatever. I wish I had some exciting information here. They are fundamental.

NIME 21 | Finding Cashflow Opportunities

Finding Cashflow Opportunities: Don’t compete with brokers. They should bring you deals after doing their due diligence.

 

It’s exciting when you get direct deposits, when you get the payment.

You are looking forward to the mail when the mail comes. I learned. If you ever know Lonnie Scruggs, he may have been before your time. He used to say that he never wanted to go to his mailbox and one find a check in the mailbox every day when he went to pick his mail and he is just wanted to make sure there was going to be at least one check in there.

As I was going through Tammy Phelps’ REIA called Capital City REIA, I was turned on to Lonnie Scruggs then, the Mobile Home King and I bought his kit and I thought for about a week that I was going to be the Mobile Home King until I went to a few mobile home communities. There is nothing wrong with mobile communities. There are a lot of beautiful ones, but I saw what was involved and I was like, “This isn’t going to be for me.” Then when I heard about notes, I’m about being inside the office and working the cashflow business. Lonnie’s down in Florida.

He passed away a few years ago. I forget where he was based on. I used to see him at Paper Source.

Maybe there’s void in the mobile home king market that could be tapped. Maybe that could be your next step career, Marty.

I don’t think so. I have a couple of mobile home notes and my mind has been about buying them without land. It’s no problem. We are finding some great payors along the way but I’m not interested in the way Lonnie did with it, but others have done very well with it. Just continuing your thought here, I’m in the office every day. I’m not goofing off. I’m not running to the refrigerator. I’m very disciplined when it comes to work. My wife, she forgets I’m in the house and I forget she’s in the house. I find that very important, concentrating on what I’m doing and getting it done and intelligence and it works. That’s my day. Many evenings I work and many weekends I work, but I don’t think of it as work. It’s fun. I love it.

It shows and you and I have had nighttime exchanges and weekends and all that. I definitely know that’s the case and none of it has ever come across as work to you from what I’ve seen. Is there anything that you’d like to share? We were glad to have you on and I’m sure you’ll be hearing from some people through this show and I can say that you’ve been a great inspiration to me. I’ll tell you that the more I’ve gotten to know you, the more that I think that we have flowed in terms of our exchange and in getting through deals and whatnot. I feel like I’ve grown a great deal just having you and knowing you the way I know you.

I feel the same way about you, Martin. It’s the Mutual Admiration Society.

Thank you, Marty. I look forward to seeing you again next time. I have a whole portion of my next book devoted to you. I have a whole lot on our relationship. I’m going to send all of that to you.

Thank you. It’s been a pleasure.

Please reach out to Marty Granoff with anything cashflow related. He does not want to see non-performing notes. He does not want to see any seller financing on owner-occupied property originated after January 1st of 2014. Anything else that’s paying on a regular basis, send it to Marty’s way and earn a buck or two in the meantime. Thank you, Marty. Enjoy, everyone. God bless.

Thanks.

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About Marty Granoff

NIME 21 | Finding Cashflow OpportunitiesMarty has been in the investment field since college which was too many years ago to print. In 1992 he began his career in the cash flow field immediately after attending a REIA sponsored workshop in Philadelphia on seller-financed real estate notes.

About a year later, seeing a similar lump-sum option need by state lottery winners (no such options were available then from the lotteries directly), Marty added these cash flows as well. Over the years, thanks to cash flow referral sources bringing these to him for consideration, many other types of cash flows came Marty’s way for present valuing/acquisition such as structured settlements, other lawsuit settlements, seller-financed business notes, business/partnership buyout agreements, disability income payments, future royalties due, casino/slot machine prizes and literally 100+ others.

He constantly talks about loving this business more then ever after 25 years of being in it and currently self-funds most of his note acquisitions, the cash flow from which helps support his retirement. Over the entire time period of being in this business, Marty has attended and given presentations at just about every Papersource Symposium held.