00:00:07:31 - 00:00:17:55
Unknown
Welcome back to the seven Figure Flipping podcast. I have a special guest today, and we're coming to you from Cancun, Mexico, where we're holding an exclusive seven figure flipping member event.
00:00:17:55 - 00:00:30:40
Unknown
And today I have a good friend and one of my business partners in lending, Brandon Goldstein from Renovo Financial. Brandon, welcome to the show, man. Thank you. Glad to be here. We talked about doing it for a while so that we could finally make it happen.
00:00:30:47 - 00:00:52:17
Unknown
It's awesome to have you on. I told you yesterday I was going to put you in the fire on the podcast and ask you all the hard questions, but I think for those listening, I currently have three loans that are actively being worked with Renovo Financial, and for us at seven figure flipping, it's really important that anybody who's associated with our community, our number one, they match our values,
00:00:52:17 - 00:01:15:22
Unknown
which you obviously do. At number two, we've done business with them to to know that they're a worthy partner in the industry. So we thank you for that. And there's a lot of lenders out there and they're all fine. But each one has something a little bit different than the other. What would you say the thing for Renovo is like, what kind of loans do you do?
00:01:15:22 - 00:01:19:41
Unknown
And what's the the thing that differentiates Renovo from other lenders.
00:01:19:51 - 00:01:39:50
Unknown
Yeah. So the backstory of Renovo, we've been around for almost 15 years, started as a local Chicago lender by real estate investors. There wasn't a lot of that capital in the space. In the 2010 2015, you started seeing more of it. But we were local to Chicago for the first nine years, so really cut our teeth.
00:01:39:52 - 00:02:04:43
Unknown
Going deep in one market, learning the investors, learning how the community operates, really having that circle of success. We call it of attorneys, wholesalers, investors. So almost like a community bank field. But for what a lot of people call hard money, we call private money. Private lending is kind of the national organization that that governs what we do in a way.
00:02:04:48 - 00:02:22:57
Unknown
So there wasn't a lot of that capital. It got more popular. And then in 2019, we started branching out and replicating that model. So instead of going the very tech forward route of we have a platform, let's crank out loans around the country. We said, this worked in Chicago, let's go do it in Dallas. Let's go do it in Boston.
00:02:22:57 - 00:02:44:05
Unknown
Let's go do it in Tampa. So the unique thing about Renovo is that approach, right. The localized expertise, you talk a lot about it. I hear people and hear talk a lot about it on stage. Look at all of your partners, especially lenders as an extension of your team. Right. So instead of just the widget of capital, which you say there's a lot of them out there, they're all fine.
00:02:44:08 - 00:03:03:04
Unknown
Yeah. Look at it as an extension of your team, especially as you get to scale and you're doing volume. Then you're looking at somebody who is a loan officer in, say, Tampa, right. And is originating hundreds of deals in that market. Well, they know that market in and out. They can pitch and catch with the best investors. Your contractor runs off.
00:03:03:06 - 00:03:14:44
Unknown
Hey, talk to this guy I know somebody. Oh, you need a great attorney. Talk to this person. Title company I got you. So it really is that national hard money platform but with a local community bank feel.
00:03:14:49 - 00:03:31:26
Unknown
Yeah, I think that is definitely in my mind the differentiator. So every market has a Renovo rep in market, which to me they know the market sometimes better than the investors.
00:03:31:26 - 00:04:00:20
Unknown
So I got a guy in my market, his name is Johnny Hard Money. Johnny is a stag line. And we get we meet in person all the time. And the biggest challenges that I see a lot of people have with lenders is their ability to understand their market. So one of the biggest complaints I hear with particularly like the hard money or institutional money space, is like, hey, I submitted a deal and their RV was off or they said this properties to rural.
00:04:00:20 - 00:04:32:07
Unknown
But I know my area, this is not rural. I don't know how they're coming up with that. And I think that's what I see like from Johnny in my market. Like he knows. And because of his market expertise, your corporate headquarters like trust your lenders and they have just a little more power in supporting the investor, I think, than others, because they are local and they do have expertise in the market, which isn't the case for somebody who say their headquarters in California in the right and loans in all 50 states, and it's all desktop underwriting.
00:04:32:18 - 00:04:49:36
Unknown
Exactly. And both models serve a purpose, right? So if you are very local and you're doing a lot in that market, like you said, maybe you're going and grabbing coffee or grabbing lunch with your loan officer. You're getting a lot of knowledge, right? And they're getting a lot of knowledge from you that they can go give to their network as well.
00:04:49:36 - 00:05:04:26
Unknown
So think about it. Even from a mastermind perspective, we always say a lot of the magic happens out of the pool, right? Or at the or at dinner because you're absorbing knowledge, right? You're condensing timelines because you're getting information that you want otherwise have. So
00:05:04:26 - 00:05:13:35
Unknown
they are in that market and they're able to say, you know, I know somebody who did three flips in that particular neighborhood in the last six months.
00:05:13:35 - 00:05:26:01
Unknown
Here's how it went. Here's how they did too much to the property. Or they had to go back and do this. Or the inspector in that market really is a stickler for X, Y, Z or man, I'd be careful and pull permit this time.
00:05:26:10 - 00:05:34:58
Unknown
Yeah, I think I think that's an underrated value of lending partner like Renovo, especially for new investors.
00:05:34:58 - 00:05:54:52
Unknown
So you know, when we talk about institutional money, we're talking about for house flipping, fix and flip loans or debt service coverage ratio, DSR loans for long term rentals or new construction loans, which you guys do, I think uniquely better than a lot of people.
00:05:54:56 - 00:06:12:29
Unknown
If a new investor who's going to flip a house takes a property to a good hard money lender who is local, it's almost like another safety check for their deal to make sure that there's enough margin in their buying. Right, because they're not going to take on a deal that like make zero sense. They're going to say, that's not for us.
00:06:12:31 - 00:06:13:36
Unknown
Is that fair?
00:06:13:48 - 00:06:32:45
Unknown
Yeah, absolutely. That's such a good point, because a lot of people, when a lender pushes back a little bit, I don't know. You know they're like, no I know it well with that local approach, you really do have that second set of eyes. Right? So you should appreciate that when any lender comes back to you and questions your numbers, right?
00:06:32:47 - 00:06:40:41
Unknown
Oh yeah. That's a second set of underwriting. And you're you're aligned right. You're a lenders job is to give money out and get it back.
00:06:40:49 - 00:06:49:11
Unknown
Like they want to give you the loan. Like like they make money giving you the loan. So they are incentivized to give you the loan, but they can't give you a bad loan.
00:06:49:11 - 00:06:49:46
Unknown
Exactly.
00:06:49:48 - 00:07:10:06
Unknown
Which means your deal isn't good enough, which is like almost an insane safety buffer for you, especially with Nova's model being local, where they actually know the model, the the market. And like in my market, I bet Johnny has underwritten ten times the deals of most investors, or at least the back end team has seen everything in that market.
00:07:10:16 - 00:07:20:46
Unknown
So if they see something that's, you know, you might do even if you're doing 20 deals a month, well, Renovo is doing 40 loans a month there. You know, it's like it's such a such a huge benefit.
00:07:20:59 - 00:07:35:17
Unknown
It's a it's a good distinction too between our type of capital and the local hard money shops. Right. Yeah. The local hard money shops are less underwriting and they're able to give out the capital a little bit easier.
00:07:35:17 - 00:07:41:25
Unknown
But at the same time they don't have as much of an underwriting buffer. So, you know,
00:07:41:31 - 00:07:43:16
Unknown
they're not going to get that same protection.
00:07:43:23 - 00:07:48:54
Unknown
Exactly. They're comfortable taking a property back. So they may go a little outside of what
00:07:49:04 - 00:07:49:53
Unknown
more risk and
00:07:50:04 - 00:07:51:49
Unknown
yeah, risk lenders able to do
00:07:51:55 - 00:07:55:28
Unknown
so for let's talk to the new investor for a second.
00:07:55:28 - 00:08:14:00
Unknown
And then I want to talk to different products that you guys have. So you get new house flippers. One of the biggest problems that they have is like how do I get the money for the deal? And I think what I tell them a lot of times, first off, we got to get a good deal because if you get a good deal, the lenders will be excited to do it with you.
00:08:14:05 - 00:08:32:52
Unknown
And then the second part is like, if I had never done a flip before and I'm getting ready to go into it and I do get a good deal, what does that look like? What kind of loan do they get? What kind of maybe not specific terms, but how much of the of the cost are they going to be able to borrow, and what are they going to have to bring to the table.
00:08:32:54 - 00:08:35:43
Unknown
Like walk me through kind of a new investor experience?
00:08:35:54 - 00:08:56:05
Unknown
Sure. Yeah. When you're looking at underwriting alone, you're looking at a lot of things. You're looking at experience, liquidity, net worth, the deal itself, how the numbers pencil. So as you become more experienced right, you're getting favorable terms. You're getting higher leverage. When you start off, you really want to get to know that borrower and build trust.
00:08:56:05 - 00:09:21:51
Unknown
So that may look like, you know, ten, 15, 20% down instead of 100% financing or 95% financing. So you want a little bit more skin in the game. You want a little bit more cushion for potential air, longer timelines. Right. They might not have the contracting the construction piece buttoned up as well. Right. So you really want to build in a cushion for that.
00:09:21:51 - 00:09:43:45
Unknown
They might not have bought the deal as deep as they think. They may have modeled in home price appreciation, where some of our more experienced investors right now are modeling in depreciation. Sure. So in Covid, right, anybody could get lucky and just buy the asset and do an okay flip. And you had 5% 10% Asian. Oh you get right.
00:09:43:45 - 00:09:57:10
Unknown
So you look like a hero for sure. Now it can be flat or go down to 3% on an annualized basis. So those those little things that you learn along the way you haven't learned yet. Yeah,
00:09:57:13 - 00:10:17:57
Unknown
I think it's important for the new investors to understand it's it's actually not if you get a decent deal, it's not hard to get the capital, but because of your experience level and maybe your position as a borrower, you're not going to get the same terms as somebody who's done 100 deals, that you've done 50 of those loans with that borrower, right?
00:10:18:00 - 00:10:35:01
Unknown
So you think in two terms like I got to I got to fund the purchase of the asset itself in the rehab. So a lot of times the new investors might only get 80 loan to cost. So if the house is $100,000 purchase, they might only get 80 grand. They've got to come up with the rest of the money.
00:10:35:01 - 00:10:54:34
Unknown
So either their own money or in some cases maybe not with you guys, but others they can get like financing partners and stuff like that. Like, right people. So but then you'll still give them 100% of the rehab. Of course. Yes. And I think it's also important to note on that, that there's they don't know hard money lenders just giving you the rehab money.
00:10:54:38 - 00:11:11:21
Unknown
So to help you purchase the house and then you do some rehab work, they check and confirm it's done and then they give you money. And I know that sounds so basic to us because we've done like a zillion of these. But for somebody who might just find this podcast and go, I don't know how money works with hard money, what does that even mean?
00:11:11:25 - 00:11:13:50
Unknown
Yeah, I think it's important to understand that process.
00:11:13:50 - 00:11:34:26
Unknown
Well, one thing to take a step back to what you said is you may not want that high leverage product, because if you haven't done the deals and know the pitfalls and really feel solid in your numbers, have bought right, have the contracting process in line. You get a 95 or 100% product product on your first deal, and you're going to burn it or flip it.
00:11:34:29 - 00:11:52:18
Unknown
You go to that at the end and flip into a loan. You may have to bring money to the table a lot, a lot of money. Yeah. And now you're scrambling. It's like almost the equivalent of oh shit, I got a big tax bill and what do I do? Right. So it's it's just a safety cushion, right? You want to get to know your borrowers.
00:11:52:18 - 00:12:14:24
Unknown
You want to trust that they can execute on the projects. And then you bring them higher and higher on the leverage scale. Yeah. The draw process, we we uniquely are positioned with local asset managers that manage that process. And we really cater to however the borrower wants to do it. So there's a lot of technology out there. Draw processes in general with most lenders have gotten really good.
00:12:14:26 - 00:12:31:18
Unknown
Yeah. But we can do a video call. We can have you upload pictures that are geo coded so we know they're of that project. Right. Or we could send somebody out and do a traditional inspection. But to your point, you have the contractor go out, you know, your rehab budgets 40 grand. Maybe they're going to want 20 to get started.
00:12:31:21 - 00:12:47:53
Unknown
You give them that 20 and then they finish the sheetrock and the tape and the flooring. And now you want eight grand back from what that cost. You send the inspector out or do the video chat, and then we get you that money, you know, usually within a day or so. Yeah. It's a it's a quick process. Yeah.
00:12:47:56 - 00:12:49:41
Unknown
But important to know because
00:12:49:46 - 00:13:05:57
Unknown
you got a fun you got to have the capital to get that moving up front. Right. And you need some liquidity. I think there's a lot of like garbage out there about oh I can be a real estate investor with no money down. Sure that's possible, but not if you're have none of your brand new.
00:13:06:02 - 00:13:16:52
Unknown
Not if you're broke. Like, honestly, if you're broke, you probably shouldn't be getting loans. Like, you should fix your financial health first and you don't got to have a ton of money, but you do got to be financially responsible.
00:13:17:06 - 00:13:25:51
Unknown
Yeah, absolutely. And not only for that particular deal, but you see people that get into that cycle of always chasing the next deal.
00:13:26:05 - 00:13:51:49
Unknown
Maybe they had a W-2 job and they did 2 or 3 flips and, you know, they made 40 grand, 30 grand on them. And they think, wow, this was not that hard. You know, I had a few home runs. Maybe it was during Covid and now you're in this market and you decide to leave your W2 and you realize that a lot of that profit goes into fees, taxes, and you don't get to pay yourself and you're going, wait a minute, that 40 grant.
00:13:51:49 - 00:14:12:58
Unknown
Well, you had the W-2 income coming in on this side and now you don't. And now that goes to fund your business. Right now, you're not just flipping a house or two as a hobby. You are running a business and you've got to have liquidity. You've got to have reserves. You need. If you if you now have 2 or 3 rental properties, you're going to want some buffer tucked away for those.
00:14:12:58 - 00:14:25:28
Unknown
So it does become capital intensive. Everyone has to start somewhere, right? For sure. So it's not you know, there's no particular way to do it. But you you have to be very conscious of the capital intensity of this business.
00:14:25:35 - 00:14:31:40
Unknown
Yeah. Okay. I want to pivot to how you guys have been helping people kind of scale in this space.
00:14:31:40 - 00:14:55:14
Unknown
So you've got, you know, I'm thinking of the investor who's doing 20, 30, 50, 100 flips in a year, which you work with a lot of those folks. So as a capital partner, when you start to get at scale, you end up with you. You will need multiple capital partners for sure. How like how are you guys uniquely positioned to help the experienced investor scale their business?
00:14:55:14 - 00:15:00:53
Unknown
And I'd love for you to also kind of touch on new construction, because I know a lot of people are adding that in as well.
00:15:01:01 - 00:15:17:17
Unknown
Yeah. So with the, with the local, you know, high volume person, that's when being part of that team really comes into play. Right? You have a lot more dedicated support. And as the local loan officers grow their teams right, they're getting relationship managers, credit analysts, underwriters.
00:15:17:17 - 00:15:45:18
Unknown
So instead of everything from a high volume investor kind of going into a corporate bottleneck that processes everything top down in one funnel, you basically have your own community bank almost, that's looking at your loans. So so the overwhelm of volume isn't there. And the prioritization is different to where you're not just loans funneling into the top, you are loans coming into that particular office's funnel, and they're managing that differently.
00:15:45:18 - 00:16:02:26
Unknown
It may look like weekly calls right. You may get on a call with whoever their transaction coordinator is and say, here's what's in the pipeline. Here's what we're looking at. Here's the funding dates versus somebody managing a ton of automated emails coming in at a corporate level. Right. So
00:16:02:31 - 00:16:04:19
Unknown
just a little more white glove service,
00:16:04:24 - 00:16:06:45
Unknown
a little more white glove, a little more high touch.
00:16:06:45 - 00:16:25:34
Unknown
And then we can start doing unique things with people. Right. If you know, Adam, if you're doing 100 deals a year, you're probably not wanting to sign all the docs. So then we start looking at, you know, some sort of specific power of attorney to let other people sign docs. You start doing unique things like that for people
00:16:25:34 - 00:16:28:15
Unknown
and streamlining the process unique to that.
00:16:28:18 - 00:16:28:54
Unknown
Exactly,
00:16:28:54 - 00:16:33:51
Unknown
exactly. We try to tailor the process to meet the needs of of how they're doing things.
00:16:34:06 - 00:16:43:43
Unknown
And for a more seasoned investor who is maybe at scale, like what's the amount of capital one investor might be able to tap into?
00:16:43:48 - 00:16:50:55
Unknown
Yeah, I mean, we have we have some people that, you know, have ten, $15 million of exposure.
00:16:50:57 - 00:17:09:39
Unknown
Well, you know, you really you want to look at that. You want to be cautious. Of course, you know, there was some recent fraud in the space. So a lot of these things don't even come from the particular lender. Right? They come from the warehouse line on the front saying, here's how you can allocate the capital. Right.
00:17:09:42 - 00:17:10:25
Unknown
So you're
00:17:10:33 - 00:17:16:46
Unknown
looking at and for those who listening warehouse line is a like a hard money lending term. What does that mean to somebody.
00:17:16:46 - 00:17:29:45
Unknown
Yeah. So so there's you can raise a fund and go lend money that way. Warehouse lines are very common in banking and lending, where you're actually getting a large line of credit from, say, a Wall Street fund.
00:17:29:48 - 00:17:49:28
Unknown
Right. And those funds get their money from sovereign wealth, pensions, endowments. And then they go allocate that fund into the funds, into different asset classes. So the warehouse line is basically a revolving credit line that allows you to lend out capital. When the loans paid off, you pay it back on the line. So think of it as
00:17:49:33 - 00:17:52:57
Unknown
like a business, like a lock or a business line of credit
00:17:53:01 - 00:17:55:10
Unknown
on a larger scale, right?
00:17:55:15 - 00:17:57:27
Unknown
So of millions of dollars, hundreds of millions
00:17:57:31 - 00:18:14:02
Unknown
of dollars and a lot of it, a lot of the guidelines come from that piece of the capital and then the back end secondary market where you're selling your loans to. So not to pivot the conversation into too much of the capital stuff, but we get a lot of questions on kind of some quirky things.
00:18:14:02 - 00:18:18:43
Unknown
Right. And it's it's not necessarily the lender all the time. So
00:18:18:54 - 00:18:24:18
Unknown
you have to protect the money that you get. And in order to get that type of money, there are rules associated with it.
00:18:24:27 - 00:18:32:01
Unknown
And you want to be a good steward of that capital. Right now, there's a ton of capital in the space. So you get lenders out there doing kind of gimmicks things right.
00:18:32:03 - 00:18:42:16
Unknown
You know, hey, zero basis points on your first X amount of deals. That's that's okay. But it's not sustainable necessarily.
00:18:42:21 - 00:18:51:07
Unknown
Yeah. So to be a good there is fraud in the space. You guys do have to be a good steward of that capital. And, I mean, there is uniqueness that comes with it.
00:18:51:07 - 00:19:02:27
Unknown
Yeah, absolutely. And the point of all that is you want to do that because as things evolve, right, the credit markets are sensitive to that type of stuff.
00:19:02:27 - 00:19:26:54
Unknown
So when your loan performance is very good, you're going to be the last one that gets the spigot turned off when or if things change. Whereas some lenders that are always going high leverage, right. Or doing different things just to get new users on their platform, you know, they're they're not necessarily going to be the ones that are in the game the longest as things evolve.
00:19:26:59 - 00:19:48:41
Unknown
Yeah. That's wonderful. I think I mean it, if you're borrowing money, I don't care if you're a single investor, you're a big team investor, you're you're a lender. Like you have a fiduciary responsibility, whether you're a trained professional or not, to take care of people's money. If you have any inclination that you don't have the capability of taking care of somebody's money, you shouldn't be borrowing it.
00:19:48:41 - 00:20:06:25
Unknown
I don't care if you're borrowing five bucks from your parents, like be responsible. Like that's that's so critical because at the end of the day, your reputation, your ability to perform on what you say you're going to do is going to be more important than that one deal you could or could not have done. So I think that's really important.
00:20:06:27 - 00:20:19:03
Unknown
Can we talk about I think you guys do this probably better than most, if not all, on the new construction stuff. And you guys even have like, good commercial, like small commercial products.
00:20:19:10 - 00:20:29:45
Unknown
Yeah, we we're making a big push into that this year and growing both of those verticals within lending. But the way we do that is we have specific teams that have expertise in that.
00:20:29:45 - 00:21:00:39
Unknown
So we call it and that kind of overlaps a little bit with new construction, but especially in the multifamily and mixed use space. So they'll do it in conjunction with the local lending teams. But it's it's folks that have a strong expertise in commercial underwriting, in new construction underwriting. So they're able to really look at those projects with a lens of high levels of experience versus needing to be really, really tight because you don't have the expertise.
00:21:00:39 - 00:21:20:16
Unknown
So when you have the expertise to underwrite those deals properly, you can you can let it flow a little bit more readily. And we are seeing that shift, right? A lot of the flips are seeing stuff where things are sitting on the market a little bit longer. So folks are saying, man, I can find the house and just demo it and build build something new.
00:21:20:18 - 00:21:37:27
Unknown
Yeah. So if somebody was flipping and able to buy really deep at one point and pop the top off and add a second level, they're basically doing new construction, right? They may have more control over it and a product that's worth more at the end. You know, if they just do the demo first, the whole ground up piece of it.
00:21:37:32 - 00:21:44:49
Unknown
So we're we're seeing a lot more of that. And it's becoming a really strong product for us.
00:21:44:59 - 00:22:00:52
Unknown
So for for our new construction loan, I think it's just a little different than what we would typically see for a fix and flip. So even for an experienced investor, you know, that you're able to do 100% of the purchase price, 100% of the rehab.
00:22:00:54 - 00:22:13:57
Unknown
That's not how it operates for a new construction loan. So what is the typical structure of a new construction loan? Somebody is going to go out and buy land or land with a house on it that they're going to tear down. What does that process typically look like from the lending side?
00:22:14:05 - 00:22:21:00
Unknown
Yeah. So you want to have the the permits and the entitlements and all that stuff, you know, kind of kind of ready to rock.
00:22:21:05 - 00:22:39:35
Unknown
And then there's soft costs and hard costs. So soft costs are, you know, permitting the demo and the hard costs or the actual build, right, when you're going vertical. So the structure of that is, you know, you're putting down maybe 20, 30% on the initial purchase and
00:22:39:40 - 00:22:50:32
Unknown
the of the land in the house. Yes. So if I'm buying the land and house for, say, 100 K and it's going to cost me all in to build for 450 K, that's 550 total.
00:22:50:32 - 00:23:01:43
Unknown
And maybe I'm selling it 900 so like that at that kind of infrastructure. So on that first 100 K I'm, I'm basically you're giving me 70 and I'm bringing 30 for that initial purchase.
00:23:01:43 - 00:23:14:14
Unknown
Yeah. It could be look, look like that as an example, as an example. And then then the build piece of it is more like the flip, right where you're going to get that 100% of that and it's going to be through that same draw process.
00:23:14:16 - 00:23:29:58
Unknown
Okay. Cool. So you're going to have the foundation laid okay. Foundations laid. I need, you know, 40 grand, whatever it is. Yeah. Framings up. All right. That piece is on check. And then you're just going to roll it like that where you give the capital up front to your contractors. And then we're reimbursing it as the project goes.
00:23:30:01 - 00:23:34:13
Unknown
Okay. So you're kind of you're rolling that same capital the same way you would in a foot.
00:23:34:25 - 00:23:41:07
Unknown
So, so really there they can get a I mean, the initial purchase aside, they can get 100% of the bill.
00:23:41:19 - 00:23:41:44
Unknown
Correct.
00:23:41:48 - 00:23:44:55
Unknown
Which is fantastic. Now does your experience level matter?
00:23:45:10 - 00:23:52:33
Unknown
Your experience level does matter. We like to see people that have done three or more of the similar types of products,
00:23:52:38 - 00:23:55:17
Unknown
and if they've done none, will you do any deal with them?
00:23:55:28 - 00:23:59:16
Unknown
None is tough. We do need a little bit of experience on the new construction.
00:23:59:21 - 00:24:12:10
Unknown
Okay, so you're not now what if they're a very experienced house slipper, for example, and they're like, hey, and and say they've been working with your local guy and they're like, yeah, I'm going to do my first new construction. And you have that relationship.
00:24:12:15 - 00:24:17:01
Unknown
We still like to see that experience. It's just it's a totally different beast.
00:24:17:08 - 00:24:27:57
Unknown
Yeah. Oh no doubt about it. Permitting the grass was not greener on the other side, by the way. I think a lot of house flippers, if they feel pain in their business, they're like, oh, new construction is going to be easier. It's not.
00:24:28:02 - 00:24:28:30
Unknown
Yeah,
00:24:28:38 - 00:24:29:55
Unknown
it has headwinds as well.
00:24:29:57 - 00:24:31:24
Unknown
On to different challenges.
00:24:31:28 - 00:24:50:03
Unknown
Yeah, absolutely. So it's just a different type of investment model. And you really have to gain some experience to get really comfortable with it. Now what we see some people do is they will partner with somebody who's experienced. Right. And then kind of piggyback off of their track record. And that's how they'll build their up.
00:24:50:06 - 00:25:04:19
Unknown
That's cool. So that's a that's a great way for people to get into kind of going into that new asset class of investment is, you know, go find somebody that you know, like and trust and go work with them on a deal, JV with them on a deal. And then you start to gain your track record that way.
00:25:04:22 - 00:25:05:08
Unknown
That's awesome.
00:25:05:08 - 00:25:18:57
Unknown
Okay, cool. So now if people are like, well, I need money for my flips, or I don't like my local hard money lender, and I like to get more depth in my lending partners, what's the best way for somebody to reach out to your team?
00:25:19:12 - 00:25:39:18
Unknown
Yeah, you can you can get my information and I kind of will get you linked up with the appropriate folks locally. Are you doing me to give my. Yeah. Yeah for sure. Okay. So you can reach out to me at be Goldstein at Renovo Financial. And I will get you sorted and get you with the right folks in your local market to help you out.
00:25:39:22 - 00:26:02:33
Unknown
And I'll make sure Brandon's his contact information is in all the show notes and stuff there. Even if you have a hard money lender you like today or private money lenders that you work with today, you never want to get caught not having enough lending partners because you never know. A hard money lender could stop lending. Private money lender could be out of money.
00:26:02:36 - 00:26:12:13
Unknown
Like, there's all kinds of reasons why you should have 2 or 3 lending partners that you trust that you're doing deals with, and they all offer slightly different benefits to.
00:26:12:21 - 00:26:22:20
Unknown
Yeah, you want to be able to compare the service, right. Because everybody's workflow is different. So different lenders work great for different people. Right? There's no right or wrong way.
00:26:22:20 - 00:26:42:28
Unknown
There's just different ways that, you know, mirror your process and you know what you like to do a little bit better. And to your point, capital stacks change, right as well. So, you know, maybe a certain lender can't do a certain type of property in a certain market because of fraud or a weather related issue. We see it all the time.
00:26:42:28 - 00:26:52:06
Unknown
So, you know, we always tell people don't have all your eggs in one basket, you want to have that redundancy and you know, you need capital before you need capital, I think is the main
00:26:52:06 - 00:27:01:44
Unknown
thing. Totally. Yeah. And it's like, you know what came first, the chicken or the egg. But you need both. You need deals and you need capital and you need to be working on both at the same time.
00:27:01:51 - 00:27:19:47
Unknown
It costs you nothing to call Brandon and say, get me into your system. I want to start taking a flier on Renovo. As I start to get deals in my pipeline, or more deals, or I scale or whatever it may be, it doesn't hurt you to just call and get set up and have another lending partner on your Rolodex.
00:27:19:52 - 00:27:43:10
Unknown
And the other thing is, if you're doing it, you know, have your financials buttoned up, I think that's one thing we didn't touch on. Right? Okay. Kind of how do you look to a lender. Right. Capital is like water. It flows to the path of least resistance. And if you or somebody who doesn't have your finances in line, you can't show your track record takes you a long time to get your personal financial statement.
00:27:43:13 - 00:28:00:41
Unknown
You're not that attractive to a lender, so you really want to have all of that stuff buttoned up. The top operators that we work with, they've got that stuff in a zip file ready to go. You ask them for it and they choose, right? Or it's like that day, right? Because they're doing it a lot. And they know that that redundancy is important.
00:28:00:41 - 00:28:15:47
Unknown
So they've got it all buttoned up and ready to go, which I think is an important piece of the puzzle, especially with relationship lending where you want to understand somebody's story, goals, experience, and then you can give them the best service and product possible.
00:28:15:52 - 00:28:22:20
Unknown
Yeah. That's awesome. Brandon, thank you so much for spending time with our audience. A lot of house flippers.
00:28:22:20 - 00:28:29:57
Unknown
So like, you guys are such a good partner to the people in our community. I hope that others get the same opportunity to potentially work with your team.
00:28:29:57 - 00:28:37:48
Unknown
Well, we appreciate it. Some figure has been a great community to be involved in, and we're going to be here for a long time. So we look forward to meeting everybody.
00:28:37:48 - 00:28:42:25
Unknown
And thank you. Thanks for listening, guys, and I'll see you on the next one.
.jpg)
.jpg)
.png)
.jpg)
.jpg)
.jpg)
