Show Notes: https://retipster.com/151-eric-scharaga/?utm_source=youtube&utm_medium=social&utm_campaign=podcast&utm_content=5Z7taFrB_tM Join Our Community: https://welcome.retipster.com/newsletter/?utm_source=youtube&utm_medium=social&utm_campaign=podcast&utm_content=5Z7taFrB_tM Eric's Website: https://www.ericscharaga.com/ Today, I’m talking with a new friend, Eric Scharaga. Eric is the founder of Damen Capital Fund, a purchaser of residential and vacant land notes. Before focusing full-time on notes and land, Eric worked for 23 years as a high school teacher. In 2001, he began investing in rental properties, purchasing and rehabbing single-family homes with the dream of becoming a full-time investor. After 13 years of dealing with the constant stresses of landlording, he realized that he would never achieve his goal of financial freedom through rental properties. In 2016, while still working full-time, Eric transitioned to the more stable and passive cash flow of notes. Since 2016, he has purchased over 500 notes, including residential performing, non-performing, active bankruptcy, and vacant land. 0:00 - Intro 1:56 - How did you get into the land investing business, and what made you focus on investing in notes? 4:59 - What makes a seller note problematic, and how do you determine the right one? 8:35 - The benefits of using loan servicing companies and which one would you recommend 13:35 - What is your average deal size? 15:11 - How do you spot the difference between good and bad deals? 19:25 - Benefits and Risks of a Land Contract 26:32 - When does an IRS tax lien expire? 27:00 - The process of taking over an existing note and what are the costs involved 30:27 - Do you buy notes only from well-established land investors? 32:03 - What type of land investor or real estate investor should or shouldn't even be dabbling in seller financing? 35:35 - Are you doing business in multiple states, and are there specific states where you don’t want to operate? 37:01 - What percentage of your deals end up being land versus buildings? 38:19 - If somebody wants to buy existing notes, how do they find these deals? 39:47 - How to tell if an investment property is a good buy? 41:44 - What characteristics do you look for in a good and responsible borrower? 47:58 - Is there a range of what you're looking to get out of a note investment? 48:45 - What are the payment terms that you prefer to see? 52:01 - Can you change the loan servicer if you take over an existing note? 52:56 - Do you come across borrowers who default on their payments after you take over the loan and what do you do if that becomes a problem? 58:01 - How do you convince your borrowers to pay? 59:46 - What do you need to prioritize when underwriting deals if you want to make this a passive, hands-off investment? 1:00:54 - Are there any states that have a particularly easy foreclosure process? 1:01:42 - Do you ever resell the notes you buy? 1:03:01 - Eric explains his Note-Buying program 1:05:18 - Eric shares how he was able to mitigate his tax liability 1:12:29 - Are there any crucial resources vital to your note-buying business? 1:13:59 - How to reach out to Eric? Eric is the author of the book Lienlord, an introduction to the power of note investing. He is passionate about personal finance and financial freedom and enjoys introducing land investors to the importance of seller financing. Disclaimer: No one in this conversation is a CPA or Financial Advisor, and we don’t provide legal, tax, or financial advice. In this conversation, we’re sharing Eric’s experiences as an investor, and we encourage you to seek out professional advice before making any investment decisions.