Tim Herriage
Appearances
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
I get goosebumps as I say this every time because I tell the team, we make millionaires. You know, when I got out of the Marine Corps, I wanted to be a cop. I was going to be a cop, then a state trooper, then a Texas Ranger. I feel like you would have killed that also. I would have, but I would not.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Well, and it's also important. This is probably a good part to talk about. We really live, eat, breathe and sleep our core values. And I'm a Marine, so kind of dumb. Sometimes we need acronyms to figure shit out. So our core values is stars, speed, transparency, accountability, respect and service. And when I talk to my team about it, I've been on the other side of the table so many times.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Time kills deals. And if I yank you around or don't give you an answer quickly, even if the answer is no, I'm doing you a disservice, right? And transparency. So many times lenders will collect that app or let you order that appraisal, and they know it's going to be hard to get done. I would rather say, dude, you need to keep looking for money, and we'll do our best to figure it out.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
But, like, this is not a yes. It's a no. But there may be something there. Let us go look at it. But for now, keep looking. It's funny, 13, 14 months into it, we get so many people that just love our transparency because they're – They're like, they'll call you back. Hey, real quick, can you tell me if this one will work for you?
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Because we already told them no twice, but they know that they can get a no from us so quick that they might as well bring us every deal. And we'll just quickly tell them yes or no. Yeah. And the other thing is, is if we say yes, funny story. your second loan you did with us.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
You texted me on a Monday morning, nice and early. You're on the East Coast. I'm in Central Time. You get up at like 4 a.m., so then I think I woke up to your text at like 6, and it's like, Harage, what the fuck? Because we were supposed to close that day, and apparently somewhere downstream there was a problem. What it was was
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Our capital partners, we have different pools of money that we pull from. And one of the partners that was going to fund that loan was like, wait a second. If we fund this loan for Colby, it'll put us where he is over 10% of the money we have outstanding with you. And that's a violation of your warehouse line. And I was like, well, shit. Why didn't we catch that?
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Well, we didn't catch it because it was the first time it had happened. That was in April of last year. We'd only been originating loans for two months. We hadn't had time to get to that point. But I quickly said, hey, We fucked up. Give me a minute. Let me figure it out. We had to pull from our own cash to get the deal funded.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
But part of that is, you know, we don't retrade people and we're going to do what we say. We're going to hold ourselves accountable.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
And in that 11-year period, now investors don't realize. So in 08, 09, there was no Wall Street money for flippers. Now, almost 95% of the money flippers use comes from Wall Street.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Yeah, so that's speed, transparency, and accountability. And the next is respect. And I talk a lot about this. It's an internal core value and an external core value. I mean, and it's not this woke bullshit. It's actually like something I super believe in. You know, you're going to get up every morning. You're going to respect yourself.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
You're going to show up manic, you know, with you can be shaved and your shirt's tucked in. And that's just how we do it at Tarnas. Uh, you're going to, you know, answer the phone politely. You're going to treat your teammates with respect. You're not going to allow a shitty deal into the pipeline that our, then our ops team has to clean up.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Um, you're going to respect that when Justin Colby buys a house, there's a realtor title agent. And, you know, oftentimes in this business, a little old lady that ends up at the title company on Friday and all, everything she's ever owned is in a U-Haul. And if we don't close, uh, It's like the most disrespectful thing you can do in the world.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
And we've all gotten those calls from the little old lady. It's a metaphor, but it actually happens. And then the last is service. And when I say service, I get goosebumps as I say this every time because I tell the team, we make millionaires. And, you know, when I got out of the Marine Corps, I wanted to be a cop. I was going to be a cop, then a state trooper, then a Texas Ranger.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
I feel like you would have killed that also. I would have, but I would not. be flying around the way I fly around. That's right. That's no doubt. But I mean, that's what I wanted to do. And, and, and I found real estate. I got in as a project manager. Then I was an acquisitions guy for a home investors franchise. Then I partnered up with my partners.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Then I met my wife and then we went out on it together. And we have, you know, the Ed Milet book, the one we have changed the course of our family with this business. Yeah. And the fact that we get to help others do it, it makes me so happy. And that's why we will loan to a first-time investor just like they're an experienced investor.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Dude, it's brutal to use. They deem your credit every other week. They, you know, appraisals take two months. And all of a sudden, you know, now an appraisal is like $900. I don't even know how that works. That's right. But no, I mean, we just, it started off with the concept of if I can, because I buy houses, you know, I've bought a couple thousand. If I can buy a house with pictures and comps.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
be flying around the way i fly around that's right that's no doubt but i mean that's what i wanted to do in in in i found real estate i got in as a project manager then i was an acquisitions guy for a home investors franchise then i partnered up with my partners then i met my wife and then we went out on it together and we have you know the ed mylet book the one and we have changed the course of our family with this business yeah and the fact that we get to help others do it
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
So two points on that. One, the REI Expo started out as just... I'd been a HomeVestors franchisee for a long time and I missed the annual convention because I just missed getting in the room with people. And this is like really pre-Facebook and message boards and Instagram. And there was just no real way to connect other than being in a room with someone back then.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
And so I started the expo as it was supposed to be just a Dallas trade show. And a couple of people showed up. They're like, man, you need to take this national. I was like, no. And We had 200 the first year. We had 400 the second year. Then I agreed to take it national. We went to Baltimore, Chicago, and L.A.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
And by the time we got through our fourth year, we had 1,800 people at the Gaylord in Dallas for our kind of January event. And, man, through that, I got invited to speak at the five-star conference. And the five-star conference, if you don't know, is a big default servicing mortgage REO conference in Dallas.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Why can't I make a loan on a house with pitchers and cops? That's right. And that was kind of the entire beginning of the company. And here we are 13 months later and it's working.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
And the conference organizer happened to sit in the room, and he was like, hey, we would love you to come share the path of the individual investor with these corporate finance executives and all that. I've got the picture still. I almost didn't go. I was fish out of water. Felt like the audience was going to see right through me. I'm just a pretender. Yeah, yeah, yeah. I'm not a college graduate.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
And how am I going to talk to these Fannie Mae, Freddie Mac executives? And I have the picture. I'm in my closet. I've got my suit and tie on. And I'll grab my Marine Corps challenge coin. And I'm just like, you made the commitment. I meant to bring that coin. I have mine. Don't worry. I was like, you made the commitment. You will go. I spoke afterwards, got a line of people to talk to me.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
One of them is this billionaire from England. He was the founder of Invitation Homes, you know, the company that is the largest home owner in the world. And he's a British man and he actually has already bought shares in Ternus. Nice. I will buy this money for luck. Tim, good job. But he's in line and he's like, so we're working on a project and we need your help. And I'm like, okay, who is we?
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
And he pulls out his card, you know, chairman and founder of Invitation Homes. And you're like, Got it. Yeah. The next day, I'm in his Dallas office. The next week, they fly me to New York. I'm at the Blackstone headquarters. These 20-foot mahogany walls on the 50-something floor, looking at Central Park. Same building as the NFL.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Yeah, man. And you talk about... I didn't belong in that room. And I sit down at the head of the table. Nick is his name. He positions me and I'm like his puppet that day. And they bring in all these analysts, 20 something people sitting around the table. Okay, tell him this. Because he had memorized my speech and he knew exactly how I was going to help him sell the B2R idea to Blackstone.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
And I'm like, okay, enough of that. Now tell him this. Okay, enough of that. Tell him this. 10 minutes into the meeting, the senior managing director guy that has like a $20 billion authority said, okay, good to meet you, man. Got to bounce. He gets up and leaves. I'm like, That's weird. I just got here. Yeah. You flew me up, you know?
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
And then, you know, 10 minutes later, the next senior guy, okay, man, good to meet you. I got a balance. I must be tanking this. 10 minutes later, Nick's like, okay, that'll do. Let's go, Tim. And he walks me to the elevator. I'm thinking like, maybe we'll grab lunch, talk. Elevator's closing. He's like, okay, be in touch. And he stays on the floor and I'm going down.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
I get in the car, go back to the airport, call my wife. I'm like, I'm done. She's like, well, what did you do wrong? I don't know. Right. A couple months later, I'm the managing director of a multibillion-dollar company, and I learned all this institutional stuff. I mean, I've got an office in Manhattan, an apartment, and it's just these rooms, when you're really there for –
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
non-transactional purpose, if you're really just there to expand your universe and add value to people, you are one phone call, one handshake away from changing the entire trajectory of your life, of your family. I mean, even my partners, Tom and Bill at Ternus are We started hanging out two years ago at boardroom, and we just became friends. Yeah.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
So much that one night in Tampa last year, we're dragging back in from the casino at 4.30 in the morning, and here goes Casey Quinn and all the hard charges out for their morning run. Yeah, yeah. It's just like you're passing in the lobby. You're like, oh, good luck, buddy. See you in a couple hours. But I never knew we'd be partners. Yeah. I just knew we were friends.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
And then my original founding partners, Charlie and Taylor, internist, I wanted to take the company in this direction of the crowdfunding. They felt like it was too risky. We parted very amicably. They still buy most of our loans from us. They wanted to be more of a loan buyer. I wanted to be more of an originator and crowdfunder. So it worked out perfect. Yep. I made the offer to Charlie.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
We're at lunch in October. I'm like, hey, what if I just gave you all your money back? He's like, we'd take it. I was like, oh. I thought my wife afterwards was like, yeah, we've got to come up with a couple million bucks. A couple of text messages. Tom and Bill are like, dude, we're in. We'll do the whole thing. Next thing you know, we buy them out. And it's just me, Tom and Bill.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
But it's a friendship that turned into business because it was never intended to be business. It wasn't transactional. So you can get in these rooms and do it wrong if you're walking around only thinking about what can I get from you?
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Right? Well, I got to interrupt because that is so much the idea behind Ternus. Yeah. I do not need the money I'm going to get from the crowdfunding. As a matter of fact, we have this thing called the Founders Club for this round of investors where they get 500 bucks off of any loan they do.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
So if the minimum investment's $1,000 and you do two loans, you got shares for nothing.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
The value in this offering is going to become twofold. One, obviously, now you have these ambassadors that are shareholders throughout the nation telling people about Ternus. But two, when we have the annual shareholder meetings, We want a community of people to tell us what we're doing wrong. I don't want a community of people to blow smoke up my ass or tell me that we need to focus on.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Southwest Airlines made the world's worst mistake this week. It isn't weak. Yeah. Bags no longer fly free. Oof. And now they are reorganizing their workforce in the airports. And a CEO, when explaining it on the news, he led with the word profit.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
And the minute, if you've ever read Jim Collins' Good to Great. That's right. The minute you start talking about profit first versus how do I serve my customer? How do I get better? What am I doing wrong? it means you're going in the wrong direction. I would almost guarantee you Southwest Airlines out of business the next 10 years and merge with someone else. Wow.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Because now it's all about profit. And if it's all about profit and shareholder value at that point, It's commoditized, right?
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
But now they're more expensive than American.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
You might as well get an Uber and just work from the back and get to skip a... You think I'm not considering it?
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
This is what happens with the engines. That's the fun part about this share offering. It is not about the $5 million that we're going to raise. It is not about the valuation that we attach to the offering. It's not about the perks. The reason I wanted people like Bill and Tom to be my partners and not Wall Street... is they get it.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Tom has built a very large, almost 1,000-unit portfolio in Yuma, Arizona by himself, scrappy, over the last 15 years. Bill and his family turned being dairy farmers into one of the most impressive business operations I've ever seen in my life. The amount that they sell bull semen for is just crazy. Can't even say what they call that business. The point is, They buy commercial properties.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
They buy their scrappy. I want to be surrounded by people that get what it's like to be belly to belly at a closing table. Yeah. Not the Wall Street elite that. Only care about how can we make more profit off of each person that walks in the door.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Yeah, so on our fiction flip, it's 100% financing up to 70 LTV.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Of ARV, yeah, of your ARV. It doesn't matter if you've done 10 deals or zero deals. We charge 12% interest and we charge 2% origination and we have a $2,000 closing fee. If you're in the Founders Club, that fee is reduced to $1,500. If somebody calls and says, you're not competitive, I say, great, call someone else.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Oftentimes they call us back because that someone else wants an appraisal and a credit score and a proctology exam and all that. And for us, send us pictures. Send us your bank statements. Would you like to close tomorrow? Yeah. Staties. Now, if your pictures are just the exterior picture and the back picture and there's no inside pictures, we're going to have to ask for some more pictures, right?
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
I mean, and we'll send you a link and you can do all that. And probably the thing I'm most proud of, Justin, is we pay draws in 24 hours. It's fast. And having been the flipper that, you know, Friday payroll sneaks up on you and- It's hard. It's hard out there. And you need to pay your people quickly because we ask people to work kind of on the cheap and fast. And so you need to pay them.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
And so I'm really happy with our draw process. It's... It's... You... drop some form online, and we text you a link, and you can even text that link. I think you guys do it. You text it to your general contractor down in San Antonio. They run over to the house. They take pictures.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
It tells me that they were actually at the house on that date, and it gets emailed to my draw inspector in-house, which is actually my brother, which is another superpower we have right now that we're trying to – as we get to scale, we have to figure out. My brother, Jamin, is – he's probably bought – 800, 900 houses for me that I made every decision based off of what he told me.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
So to have him kind of in that draw department and on the front end diligence side is helpful. We're looking at hiring some other people, maybe some people that were, if you're out there, Say you were an acquisitions manager somewhere and volume slowed down. We want to talk to them. If they worked at Open Door or Zillow, we want to talk to them.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Because we've got to make sure we're staffed with asset guys and gals. Right? People that really understand real estate. I can figure the rest out. Yeah. With finance people. I just need to make sure we're making good loans on good houses and good neighborhoods. Yeah. It's... Guys...
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Well, I'm like so many of the people listening to this. I mean, my wife and I still actively buy, flip, keep rentals. She still loves short-term rentals, midterm rentals. And we just really know what it's like to be on the other side of the closing table. And I say it to my team all the time. I'm like, never forget the people behind the paper. Mm-hmm.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Last night, right. And so that's one of the reasons, Justin, that we're selling shares is I am insanely obsessed with technology. Yeah. We are implementing machine learning into everything we do from even sizing or reconfiguring loan offers. So if you're a new person and you're buying a heavy rehab and you've never done a deal and you're borrowing money from your dad to get it done,
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
We will do that loan. No doubt. But you're going to prepay six months of interest, and we may lower your loan to 65%. Yep. Well, we've now, for six months, we've been building and testing this automatic little robot that takes in those data points and says, and will give the customer a quicker answer to those what we call exceptions. Yeah. Right?
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
If you're just buying a normal 3-2-2 brick house that needs paint and carpet, and you have money in the bank, like- Here's the money. Super easy. Yep. We've got to be able to say yes to some other things. And we're using AI and machine learning to do it. One thing that I'm super excited about is we download all call transcripts every night and we load it into the machine learning engine.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
I love that. And my IT guy, my VP of technology, has figured out a way to wait towards our top producing salespeople in those call transcripts. Because we're designing a chatbot that basically can underwrite your deals online and answer your questions. But we want to wait towards the... guy or gal that's actually getting stuff closed. Yeah. Not the maybe dipshit that's going to get fired. Right.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
That's right. We're using VAs for a lot of stuff. So we're just like the customer. It's like VAs and this and that. Yeah. But, We're downloading their inbox every day. What questions are they getting asked? How are they being answered? Are there common threads? Does it point to a part in your process that needs to be fixed?
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
If 80% of the customers ask the same question, you've got a massive problem on the front end.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
massive is not massive, but for me it's massive because, again, my core values, speed and transparency. I need to be able to tell you everything as fast as possible so you can make an educated decision for your business and your family. So part of this fundraise, if they go to invest.turnus.com, it breaks down the use of proceeds.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
We're going to spend $2.5 million on funding loans and there's like, I don't know, half a million. You have to reference the thing on just pure technology development. We're trying to It's so fun to build something on new technology and not be stuck on old technology. So that's another reason that we decided to raise the capital when we did is to improve in every way we can as fast as possible.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Because it's easy, you get up in your office and you're looking at the paper and you start making these decisions and you forget about the realtor, the title agent, the investor, the contractors, their acquisitions people, their dispo people, all the people counting on us. In 100 loans, we were kind of just guessing everything.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
And all investments involve risk. I've had some really good friends in the industry call like, hey, what do you think the projected return is? I'm like, I can't say that.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Like you should, if you can't afford this, you should just expect, you shouldn't do it.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
And you should expect that the minimum investment is like a thousand bucks. If you can't afford to lose that thousand dollars, don't buy, don't invest. Yeah. But if you want to be supportive of a company that is insanely obsessed in the customer experience, you should definitely check us out.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Well, Google has an awesome saying. It says no one knows everything and everyone knows something.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
And probably the thing I'm most excited about is the first shareholder meeting that's going to be in September where we bring together, you know, we do it somewhere really cool. Yeah, I already had it planned. You know, you bring together 500, 1,000 people that have all invested in the successful outcome of something. And the board and I are just super excited about
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
bringing them together and hearing them and doing little focus groups, doing surveys. Like I don't want to just have people invest. I want people to hold us accountable and be a part of the next evolution of financing for investors. Like I said, 10 years ago, these DSCR loans, we, B2R Finance, I ran the sales and marketing team there. We originated the first ever DSCR loan. almost 10 years ago.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
It was in April. It may have been March, actually. It may have been exactly 10 years ago. Until that, it was only DSCR portfolio at B2R. And I went to the board at Blackstone. I said, look, 89% of the people that call us, even though like our website straight up says, don't call unless you have five freaking houses. 89% of the people that call say, I only have one. Can you help me?
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
We probably impact two or three thousand families between all the contractors and the supply people and the realtors and the title agents and the insurance people. And I mean, there's just a lot of people that real estate influences. So kind of that's one of our mantras is don't forget the people behind the paper.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
I can't get money anywhere. And so Blackstone's like, fine, you can do $10 million worth of single asset loans. I'm a nerd. I'm a finance nerd now. In the securitizations, it's still called the SLP, which we came up with on the fly. It means single loan product. There you go. Because we had the entrepreneurial loan product, which was the five house portfolio.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
And I had to call it something for the sales team. I was like, Brendan, what are we gonna call it? He's my VP of sales time. He goes, SLP is like, there you go. Still call that in securitization documents kind of funny, but, um, Yeah, man. Brian Partridge, who you've met, was kind of our number one sales guy at B2R back then.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
He sold the first couple dozen of them, and we sold out in like three days. And you're like, oh. That's something. Yeah, and so we do DSCR as well, long-term rental loans. That is not a Ternus product yet. Since those have to be sold to life insurance companies or hedge funds or whatever because nobody has money to tie up for 30 years like that, that's still conforming to kind of –
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
The pain of normal, you know, you got to have credit and appraisal and all that. But, you know, we're closing them in two weeks. And that's kind of unheard of. Yeah. But we're doing that because my team is just, I mean, the reason speed is the first letter in stars and not the last is not only does time kill deals, but time will get you deals. So, like, today is the 20th of March.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
No way most lenders could close a DSCR by March 31st.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
No way. We could. How? because we would be really transparent with you up front. We'd say, listen, we can do it. I need all of your bank statements today. I need your insurance today. I need you to pay for the appraisal today, and you need to make a call and follow up with the appraiser tomorrow and make sure the report is done tomorrow. Tomorrow's a Friday.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Then I'd have it in by Monday, and I'd have a full seven days. Once I have the appraisal, the credit report, the lease, the bank statements, I can get you into underwriting. Underwriting can clear in 48 hours. It can be done. The problem is most of our customers, we are unorganized and slow because we like to bitch about the lenders, not bitch about ourselves. I talked about this yesterday.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
And I'm saying we, because I'm one of them, right? I mean, I bitch about lenders too. That's right. So, yeah, I mean, we are radically obsessed with changing the way business is done. And eventually we'll have our own DSCR product. Yeah. I mean, I see a world where we can do a DSCR product without credit. Have we done a DSCR through you yet?
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
But the point is, it's not ideal, but we close them in two weeks all the time.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Man, I appreciate you having me.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
So it's kind of a funny origin story. I don't even know if I'd come up with it yet when you and I were flying back from Austin, the name. I was reading Simon Sinek's book, Start With Why, for the second time. And it talked about kind of everything's in threes, everything's in threes.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
And I thought, okay, if I want this product to sell itself from the inside out, the product has to align with the customer's kind of core reasons. And I kind of worked on it. And I would imagine the 100,000 people that listen to this, the three things they'll all have in common is number one, they want to make money.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Number two, they want to make passive income or cash flow, say it different, whatever. And then number three, they want to build a legacy or long-term wealth for their family. And that's really like the three most common denominators of everyone that ever gets in this business. And I, anyway, that bounced around my head, bounced around my head. And I started looking for like threefold.com.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Like really just trying to align with the three core pillars that, and I wasn't available. Some other dude had it. And then I was playing with it. So I got on chat GPT and I'm like, what's Latin for threefold. Give me a bunch of different variations. And Ternus is actually Latin for threefold. So I go to GoDaddy. I'm going to buy Ternus.com. Yeah, it wasn't available.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Hire the domain broker because now I'm sold on it. And I'm like you. Once I decide I'm going to do something, I'm like, yeah, I'm done. I offer them $3,000. They say no. I offer like $6,000. They say no. I offer like $8,000. They say no. I'm like, man, maybe I need to find a different name because I don't even have a company yet, right? Yeah.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
But about a week later, the guy calls, the domain broker says, give me 15K and you can have it this week. So the broker calls me. I grab the Amex. I pay for it. My wife gets a text from Amex. Your husband just spent $15,000 at GoDaddy. He calls me like, what the fuck are you doing, man? I'm like, it's that new business idea. She goes, Tim. It's like, but I know. It's an idea.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
So the answer is they can go to Ternus.com. I wanted a short URL that meant something. Yeah. And not about capital, not about finance, because that's not what we do. Yeah. So Ternus.com, they can get all the information. But yeah, so Ternus is Latin for threefold, because by our existence- The customer can do loans with us and make money on flips.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
It makes me so happy. And that's why we will loan to a first-time investor just like they're an experienced investor.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
They can buy rental property with us and build passive income and cashflow. And then now they can actually have shared ownership in the company, which allows them to help me
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Yeah, so the crazy thing is, man, I get excited about this still, even though I've been dreaming of it for over two years now, and we just now launched the crowdfunding raise that allows us to let the everyday investor own part of it. So I got fed up a little bit. There's a ton of debt funds out there, like debt. DLP and all these other groups.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
I mean, you can invest in their debt fund if you're an accredited investor. And then the problem is you only own the loans they give to that fund. And if that fund goes belly up, they can walk away and just form a new fund or they can use that fund to get where they're going and then get rid of the fund. And you have no upside, no continued interest in it.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
So I was looking at it. I was like, okay, I've never done a crowdfunding before. I was like, how can I make it where it's available to everyone? Even my customers just getting started. How can I make it available to everyone and not just Wall Street? I've made a lot of money with Wall Street.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
And it would be really easy to go raise $5 million from Wall Street. I mean, I had a guy at the conference I'm down here for on Tuesday offer me $20 million worth of buying loans. Yeah. We don't need money. The entire vision... is to make... So with the crowdfunding, you don't have to be accredited. I mean, you can put it on a credit card. Yeah, yeah. And buy shares in Ternus.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
And it's Ternus Incorporated. It's like the real company.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Right? I mean, it's the company that owns all the sub-companies. And we're starting an insurance company, a servicing company. We will raise some debt funds because I've got some rich buddies that would love to drop, you know, a million bucks in and make a 10% cash flow type yield. But for now... Before I did any of that, I had to make sure it was available to the masses.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
I would rather have 1,000 shareholders own 1,000 shares than three institutions own 10% of my company and get to tell me what to do. That's right.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Dude, just glad to be here.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Yeah.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Well, and don't forget, you put it on Instagram last year. We have a really small package. It was like the best, worst compliment ever. It's like Tim Harris has a small package. It's great. I'm like, I think. I guess. Right. But we don't have to securitize our loans. Yeah. So I just have to make sure that if you don't pay me, I can foreclose.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
So my loans can be more simple and straightforward, much more like a traditional hard money. And it's great like that because I already have capital partners like we will give you millions of dollars, but you're going to need to pull credit. I said, no, I don't. I don't because- My partners, Bill and Tom, and I have enough money to not need Wall Street's money.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Yeah, I'm trying to undo the problem I created.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
But I also don't because I now have shareholders that understand that the credit... frankly, is your liquidity, the money you have in the bank. Do you have the money to get the project started? Because I'm going to loan you all the rehab and to pay the interest. That's it. That's your credit. And the asset is the collateral. And having bought thousands of houses, I'm still just an asset guy.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
I mean, yeah, I get it. You know, it's part of my lesson in life has been everyone gets their money from somewhere. And during the Great Recession, I was an active flipper and money dried up for investors. So 10 years ago, 11 years ago, I partnered with Blackstone to start a company called B2R Finance. I know them well. Which became Finance of America, which we took public in 2021.
The Science of Flipping
F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
I was talking to my mentor, Jeff Tennyson. He took Lima One from like $100 million a year to $3 billion a year. he's my CEO coach. And I was like, we haven't brought this yesterday down here in Miami. And he was like, dude, you've got to make sure you don't lose that as you grow the company. That's right. Like you have to keep it. It's asset based lending.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
Yeah, you know, 20 something years ago, I got out of the Marine Corps, took a job as a project manager for a house flipper in Dallas. And within a year, I was in the acquisitions role. A year after that, I went out on my own. bought a home investors franchise. Well, actually, to be fair, married my wife who had a franchise. She was wholesaling houses to me at the time.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
You know, I think guys like us are always students first. And I'm always trying to learn. And I was on my way to Park City, Utah for spring break last year. And I re-listened to Simon Sinek's book, Start With Why. And I'm holding up an iPhone right now. I don't know what this thing costs. I know I'm getting a new one soon. I don't know what it costs. but I'm emotionally connected to it.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
I need it to do my job. I need it to function throughout my day. And if you look at Apple commercials, there's never a price on it. The new iPhone 16, they're advertising it like crazy, but there's no price. And it just, Simon talks about that in his book, the emotional connection people have with Apple and Nike and Coke. And it just hit me that lending...
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
10 years ago, there was no institutional capital available, no Wall Street money available for us. Now, 90% of the products out there, Wall Street capital. And it's gotten all the way away from what we want really as a customer. As a customer of a lender, we really just want feed. We need you to move as fast as we do.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
transparency just tell me the truth right and then dependability and dependability is all about like if you say you're going to close next friday damn it you need to close next friday because like we just talked about in the last part we already got plans for that money right we're we're ready to go to the next thing and so turnus my new company is actually latin for threefold because i really broke it down to those are the three things lenders should provide that they're not
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
And as my mentor, Jeff Tennyson said at our offsite this week, that's the main thing. And I'm really focused, Brandon, on keeping the main thing, the main thing, not about points and fees. Don't call me and ask me my rates because I'm going to ask you, when do you need to close? Right. Don't ask me about my LTV because I'm going to ask you, you know, how many times are you doing this?
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
Like points and fees are what we've been trained to talk about because that's We don't understand what we really need. And so in turn, we're just focused on we're a balance sheet lender. We don't use banks. It's all our own money. We do have a debt fund, but we're not looking for money there. We have plenty of that.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
And we're really just trying to turn the industry on its head and put the customer back at the front of the desire, right, instead of Wall Street's demand for the no. So, look, it's tough. We're changing things. When I tell people we don't pull credit, they laugh and say that I have a bad credit culture.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
When I tell people I don't get an appraisal, they laugh and think that I have a bad credit culture. For me, I bought thousands of houses. If I'm loaning you a hard money loan or an asset based loan on the deal you bought, what do I care what your credit score is? I'm loaning to your company and I'm going to take the house if you don't pay me back.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
Well, you and I went round and round about that a couple of years ago. But look, I mean, if I can make a decision after my experience buying houses, right now it would take me less than five minutes to decide if I wanted to buy a house by running costs and looking at pictures.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
And, you know, we grew that to be number one in the nation, took all our licks in 08 and 09, miraculously stayed married through all that struggle, came out of that, kept buying houses, started a little thing called the REI Expo, sold that to Think Realty. I met Blackstone at a conference, started a B2R finance, which became Finance of America, which we IPO'd in 2021.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
Why can't I make a lending decision on that when I've got a partner in the deal, the borrower, that's putting up the money, the energy, and the effort to do it? And so we're really just... We're going really deep into making, we say we loan the way you buy, right? You buy by looking at comps and looking at pictures and making a decision. So I have to be able to do that too. And it's hard.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
People lie. People send you old pictures, things like that. Of course. We're using technology to help with that, but it's a noble mission and it's something that I am going to do and we're figuring it out as we go building the car on the highway. But we're really focused on trying to become the people's lender and always putting the customer's needs ahead of our own.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
Our website, Ternus.com or my Instagram at Tim Herridge. We offer 100 percent financing in eight states. It's Texas, Oklahoma, Arkansas, Missouri, Ohio, Georgia, Tennessee and North Carolina. And the reason we only do those states is they're all nonjudicial foreclosure states where if you don't pay me back, I can go get the house and do what I've been doing for 20 years.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
We'll expand Maryland's on the target. There's 23 nonjudicial foreclosure states. We'll be in all those by early next year. And, you know, we offer DSCR loans. It's kind of silly. It's because two thirds of the people that call need a DSCR loan. So it's kind of like, OK, we'll offer that.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
But one of our struggles and I challenge all the entrepreneurs, this man, one of our struggles is that process is out of our control. Wall Street drives that process because it's a 30 year loan. And we at the leadership level talked about. ways we can change that. For now, we help the customer, but we're really clear, this is not a Turner's product. We're selling this to Wall Street.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
So we do have to pull credit and get an appraisal for that. But I think I'm going to be able to work on that too, eventually, once we prove that loaning based on the asset can be and should be different than loaning based off of the person's maybe credit score or personal income.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
When I die, Brandon, I plan to be broke on the last day of the month and extremely rich on the first day of the month. And I plan to be able to do that without ever worrying about it or working at it. So to me, wealth is knowing you cannot outspend your return and your income that's already on its way to you.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
So for me, wealth is being broken on the 31st and richer than 99% of the world on the first without doing anything.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
Kept buying houses, investing in multifamily, investing in commercial. Really liked the lending world. Executive director for RCN Capital, one of the top three lenders in the nation. I'm actually still on their board. They are more focused on broker business and correspondent lender business. I love retail. I love working with our people.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
So earlier this year, I left my full time role there and started up Ternus and just trying to be the people's lender. You know, that's a little wrestling thing for you. I know. I know. I know you get it right.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
Well, I mean, the right time is always yesterday. The next best time is today. And if you can't do it that you need to do it tomorrow. Uh, That's not true on when to sell a property, but it's definitely true on when to buy a property.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
2003, actually, my first partner in the business was a hard money lender in Dallas. And we started a little wholesale operation back then. And we came up with a way to offer the wholesale inventory on terms. And back then, hard money was 18 and 2, right? It wasn't cheap like it is now.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
And so we would buy a house and say sell it for $100,000, but instead of selling it for $100,000, we'd sell it for $10,000 down, 18% interest, and 2% origination. And I've always loved math. I'm not a college-educated guy, but... the math quickly showed you that you would double your profit just by offering the financing as well. And my partner, Scott, it was also a big owner finance guy.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
He had about 500 owner finance notes and he started just showing me the power of debt and owning debt and originating debt and And I've always loved it. And it's always been a part of my business. By the time I was 30, we owned over 100 owner finance mortgages in Dallas.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
And I don't talk about that a lot, but getting creative and understanding how to make money with money versus make money with your time was just something that was always really appealing to me.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
Yeah. So like to use a big fancy wall street world word, it's really arbitrage. So what you do is say you buy the house for $200,000 and you get a loan from your bank for 160, and then you go sell that house for 300,000. Well, instead of just taking the cash, what we, what Scott showed me how to do was put the 200,000 on a 15 year amortization and
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
And if we charge 12% on a 30-year amortization, it covered that payment. And you own your asset free and clear in 10 years, and they still owed you 20 years worth of a mortgage because you're not only using the interest rate as a tool, but the amortization.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
You know, I'm the mortgage company, in essence, for a little over 150 people right now on the owner-occupied side, where I own the mortgage on their house, where they're paying me 10% to 12%, and I have bank loans against it for 6%. So I'm making not only the difference in the interest, but the difference in the principal and the way the amortizations work.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
Many times you can pay off your loan in eight years if they have a 30-year loan against it. So it's always been about cash flow. It's always been about wealth accumulation. But it's also branded, I don't like to work. And, you know, the name of your thing is wake up to wealth, right? And owner finance notes are one of the best income streams I've ever been exposed to.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
Now, the problem is it's a declining income stream with a declining asset base. So what I mean is every month, their next monthly payment is more principal than interest. So the next month they owe you less than they did the month before, and they're paying you less interest than they did the month before. So every month your income goes down as well as your asset base.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
So it was probably 12 years ago that I had another mentor of mine kind of teach me that. And since then, I've just made sure that 50% of what I do is rental property, which may not cash flow as much, but you get to keep the asset. And then I do a mix of owner finance so that I'm getting higher income. In order to offset, because we all have to pay bills and our home where we live some way.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
So it's kind of a dual strategy that our friend Eddie Speed teaches a lot. It's you're flipping and making money over here and keeping rentals. But then you're also, you know, you have these owner finance mortgages that It's more steady too, Brandon, because you don't have maintenance on the house. You don't have vacancy on the house.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
Yeah, man, that actually came up yesterday in a conversation with some of our buddies. It's just I think it's an all business. I mean, especially the fund manager business, which you and I both do a lot of. I mean, I think people just don't understand that you cannot undo what you do and you only get one shot at this thing because you can't buy a new one and you can't get rid of the one you have.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
And every five to eight years, you get a big check in the mail where they pay off the mortgage and you just go redeploy the capital.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
and invest in both sides of it, right? Like if I'm a retail investor and I've got 50K, I probably want to put half into a fund where they're buying maybe multifamily or rental properties where I get upside of the asset growth. But I would also want to get into an owner finance fund where I could make sure that the income stream was consistent.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
And that's the way bankers and lenders think. And so when they see that Brandon's collecting $120,000 a year in revenue against a million dollars, it's really easy to say, well, then, yeah, he can have a million dollar line of credit at 8% because he only owes me $80,000 against that. So he's got the yield stream to pay me without... Like, he doesn't even have to do anything.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
Like, he just has to move the payments from here over to there. So, you know, some people call it hypothecating the notes. Some it's a pledge note. I like what you said, the line of credit against them, because then it's easier. Like, we're all lazy to some degree. Like, you're not doing note on note financing, right? It's easier to just, look, there's always going to be a million there.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
Give me a million against it. And It's easier. But then also, like we talked about, there's other note strategies where once you create that 70 percent, 80 percent, 12 percent value, 12 percent interest note, there's a ton of people out there. institutions, banks, and IRA investors that would love to buy that note and make 12% mailbox money.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
Well, because you've already done the hard work. You've already found the house, fixed the house. sold the house, moved a family in. And typically, you know, you collect a couple payments to show that the borrower's real. And yeah, I mean, because then the investor, there's no theory in it, right? They're buying something that already exists from you.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
And if you did your paperwork right and you complied with state laws, I do feel like it's very important. If you want to go down this rabbit hole, you really understand the state and federal laws that apply to it because you're offering consumer loans. So it, It's not as easy as it sounds, but there are people that do this for you as a service. But yeah, I mean, it's pretty juicy.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
And oftentimes though, Brandon, what I love about it, and I think people need to look at, it is a way to do no money down real estate investing because you can get into the deal with private money. You can get enough of a down payment to offset your out-of-pocket costs and
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
And then you can sell that note and oftentimes either sell the whole note or part of the note or a couple of years worth of payments. There's so many options that allow you to recoup your out of pocket so that you can go do it again. And that's probably the best part of it in my opinion.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
Yeah. I mean, look, the hedge funds, as somebody was talking about it yesterday, I think it was Will Dennis. Ultimately, the reason they want an 80-20 split with you, if you're investing with them, is they want to turn $10 million four times a year, right? They don't want to place $10 million. They want $10 million to do $40 million. And
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
Anytime you can demonstrate, back to the track record, that you have an ability to turn money over and recycle your capital, it makes you so much more attractive to high net worth individuals and outside investors.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
You know, honestly, the number one is adaptability. The market will move on you. A project will go bad. A bank will stop lending. An investor will be unavailable. And you just cannot be stuck in your ways. You have to always be focused on seeing around the corner and finding solutions to your own problems and
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
You know, probably the same way you find for a motivated seller or in your realtor business, a retail seller. I think adaptability and always having a belief in a positive outcome is the number one thing that I learned in the Marine Corps. And then after that. It's got to be the power of a team because.
Wake Up to Wealth
Unveiling Real Estate Investment Strategies with Tim Herriage
I will take four Marines, over 20 civilians, anytime, any day, because they've not only proven they have the mental fortitude to get the job done, they've proven that they can work together in a team, collaborate, follow orders. And focus on getting the job done instead of how they feel. So if I have to pick two, it would be adaptability and teamwork.