115: Distressed Pro & Brecht Palombo

Note MBA

Distressed Pro is software many in the real estate investing world use. So, today Robby and Chase sit down with the creator Brecht Palombo to talk about Distressed Pro, the state of the industry, and where he thinks the market is headed.

The guys jump into this show addressing Robby traveling out to New Orleans. The last time Robby has to 'phone in' a show he was driving 75 mph down Cajon Pass - between Vegas and LA.

With very little fanfare, mostly due to their ubiquity in the industry, the guys jump right in with Brecht. While the gentlemen are both back from some culture heavy events, they waste no time jumping back into the swing of things.

Distressed Pro

Distressed Pro is home to the BankProspector software. This is a hosted online software (SaaS) you can use to source institutionally owned off-market notes and REO deals. The way they've designed the tools in BankProspector give you fast, easy access to non-performing loan and REO portfolio information, “sell” indicators and contacts so you can source more deals.

Essentially, this is software that can help you find and evaluate REO, non performing loan, and bank contact data from every bank and credit union. That's right they track 100% of the banks and credit unions non-performing portfolios.

They even have content around how to contact these banks, comb through the data, etc.

Brecht Palombo

Brecht was a Dot Com Bust refugee, his words, holding hundreds of thousands of shares in dot com companies that were worth absolutely nothing. So, when every crapped the bed, he was left in a really tough situation. That whole experience left a terrible taste in his mouth with regards to working you face off for just a paycheck.

What he was looking for was something to insulate him from that experience, which lead him to focusing on real estate. Well, that a an uncle that was killing it in the real estate space.

His first foray into real estate was working on a rental portfolio up in Boston. He went on to get his real estate license, and start selling real estate as an agent. That quickly started to grate on him, as he says in the show, "I don't give a crap about your school system, or what color the bathroom is." He knew pretty quickly that he needed to find another avenue in the real estate world that jived with his strengths.

Which lead him to want to be the bank.

Current Real Estate Market

One of the things Brecht mentions first is the "cracks" everyone is hearing about in the multi-family housing space. The fact is that newly defaulted multi-family notes have been on the rise since last June. He mentions a 25 to 30 percent increase in defaults in from the most recent reporting period.

Then if we go look at some of the other data coming out in the reports, we've had a spike a newly late residential loans. And in farm land loans. And in commercial and industrial loans, that aren't backed by real estate. So, you can see that having this type of data at your finger tips in software like BankProspector can be very helpful.

Brecht continues to drop more numbers and data regarding the state of the industry throughout the episode.

That’s it for this week! Thanks for listening everyone and as always, if you have any questions, comments or potential deals to send our way, email us at [e-mail].

Listen & Watch this Week’s Show to Learn:

• Robby and Brecht geek out on data and numbers
• What the guy who wrote the software that tracks bank and credit union data thinks about the market
• Why losing it all in the Dot Com bust helped make Brecht a better investor
• How much lenders currently control in non-performing residential debt
• A video course to help you learn how to read into financial data released by banks
• And much more!

Featured on the Show:

• Distressed Pro Mini Course
• BankProspector
• Brecht Palombo

Listening Options:

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Thanks for listening to our show! We’ll be back next Wednesday morning.

Cheers,

Chase & Robby