00;00;09;23 - 00;00;37;19
Unknown
Back to the seven Figure Flipping podcast. I'm your host, Adam Whitney, and I have two amazing guests today, both live close to me local in Florida, but today we're actually sitting in Tennessee at our headquarters today, have Bobby Triplett with me and Cole Dickinson from Turnus, Bobby from Offer Pad, and we're talking about literally tens of thousands of single family investment property experience here.
00;00;37;19 - 00;01;06;13
Unknown
Bobby himself has managed organization that's done over 40,000 rehabs. And Cole comes to us from Turnus, and they lend millions and millions and millions and millions of dollars, or one of the best fixed and flip DSR and investor lenders in the space. And I have them both here for a specific reason, because they have a unique thing that helps investors in the marketplace that nobody else does.
00;01;06;13 - 00;01;33;18
Unknown
And I'm going to talk about that at the end. Gentlemen, welcome to the show. Yeah, thanks for having me. Welcome. Thank you. Yeah, it's good to be here. Okay. Here's here's the ground rules for this. So normally I interview one person or I'm on here by myself with three. I'll pass the ball over to you guys. But I want to get into first of you guys, because when I do business with somebody, I do business with people I know, like and trust.
00;01;33;18 - 00;02;02;14
Unknown
And Bobby, you, you and I have done lots of business together. And I've known Tim Heritage, who I believe is the founder of Turnus and the Turnus team. I just know he was a marine and I was marine. So we have a we have we have a unique set of values that we share. And before you do business with anybody, because everybody has something good to offer, you should know who they are and kind of what their values are.
00;02;02;14 - 00;02;24;23
Unknown
So, Bobby, you come from you are a pastor back in the day. You manage lots of institutional investor type stuff for multiple institutions. Talk to us a little bit about your history and how you got here with alphabet. Yes. Wild ride. And like in a former life, I was a I was a pastor and a church planter, both as like a musician and then as a senior pastor.
00;02;24;23 - 00;02;44;24
Unknown
And I stepped down from doing ministry full time in 2013. And one of the guys who was a part of my church was the president of Invitation Homes Florida. And this is, you know, the early stages of these institutional spheres. And I'm at that point where I'm like, okay, I thought I was going to be doing this forever, and some life change stuff happen and I'm having to reinvent myself.
00;02;44;24 - 00;02;54;02
Unknown
And he's like, hey, man, I need a leader. Like, can you come in and start being a vendor manager? Help us with these escalations?
00;02;54;04 - 00;03;09;26
Unknown
Seemed like the best option I had at the moment, and he was a very good friend. I was like, all right, let's go. And so I went in. I learned the renovation side. I learned the people's side. I learned the corporate side. And just, you know, being a people leader, something that I've always done and I've done pretty well.
00;03;09;26 - 00;03;37;06
Unknown
And within a couple of years, I was, you know, running, helping run the rehab, turning maintenance side. I was in charge of all the maintenance on 7900 doors there in Tampa. And that was that was a lot of work and then come from there. I ended up getting recruited out of there to run a big general contracting firm in Tampa, and then offer pads was going to open their doors, and the same friend that had brought me to Invitation Homes had been approached by our owners that offer pad about opening up the Tampa market.
00;03;37;06 - 00;04;05;13
Unknown
And he's like, well, if Bobby comes and does the renovation, we can do this. And that's ten years ago that I did that start started from there. And a lot of renovations later landed in the vice president of renovation for Offer Pad, a publicly traded company. And I think, you know, for our audience like these, these are house flippers, aspiring house flippers doing their first deal, doing their 100 deal, doing their 500 deal.
00;04;05;15 - 00;04;26;27
Unknown
Yeah, but you do 500 in a month. In a month and you've done 40. I mean, just tens of thousands. Yeah. For years. Like when we were first starting, like we were our only client, right? We bought, renovate and sold thousands of homes a month, like, I think for a two year time period when we were going public, it was 1200 acquisitions, 1200 renovations a month.
00;04;26;28 - 00;04;43;23
Unknown
I think that's just that's like even just hard for people to wrap their mind. Well, that was across like 20 different states, you know what I mean? And so I have it's not just me. I have a massive team that was doing all of that with me. And, well, about how many people are on in the renovation team today.
00;04;43;25 - 00;05;07;25
Unknown
Yeah, it's significantly smaller because we're not doing 1200 a month. There's just shy, I would say, with with our hammer swingers and our foreman and crew and, and directors probably close to like 65, 75, okay. WW two employees across the country. Yeah. So that's that's just a get context of you went from pastor to 40,000 rehabs big team right.
00;05;07;27 - 00;05;33;06
Unknown
Manage multi market. And I think we'll get into this. But the beauty of that is like you can't do that by accident. Takes it takes people leadership and systems for sure. And I think we'll dive into that in a second. But I want to bump over to you and turn this because in our space you need to two major components as a house flipper, gotta have the cash and you got to have the rehab team for sure.
00;05;33;07 - 00;06;00;29
Unknown
Those there's those are the two most important things. So before we dive into getting the money and turn this and all the great products you guys have, what talk to me about your background. Like you and I talked a little bit before the show. You also live pretty close to me. How do you end up in Turnus managing all this, these partnerships and all these investor relationships?
00;06;01;01 - 00;06;19;11
Unknown
Where did you start from? How did you get there? Yeah, yeah. So I think you hit the nail on the head with the relationship. So prior to my world in real estate, I was actually a golf professional. For 13 years. I was running private golf facilities around in and around Tampa. And honestly, we managed a lot of courses across the country really quickly.
00;06;19;11 - 00;06;53;21
Unknown
Did I learn relationships, kind of drive everything and that and that kind of environment right? Quickly got into real estate, multi-state real estate broker, been a broker in Florida now for well over a decade. How my license in Alabama, Texas, some other handful of states that most of the SFR players are in and, you know, quickly learning how to manage those relationships across transactions for, you know, for everyday people that need to get things done was something that kind of, you know, stuck out to me and my, in my, my career really as a golf professional as well too.
00;06;53;22 - 00;07;18;11
Unknown
So it was pretty it was a pretty natural fit when I went into real estate, you know, in real estate, you actually quickly become a psychiatrist, right? A doctor, like you're almost like catering to everybody's needs with without a, you know, an actual license to do some of those things. But it's a very relational business, right. You got to kind of sometimes, you know, keep it off the edge and sometimes push people away from it.
00;07;18;11 - 00;07;35;13
Unknown
So, you know, what led me to turn us, basically is a lot of good relationships led me to this, as we talked about before, led me to this company and what they're doing with products and their culture at the company and what they're doing for people every day. Individual investors that I used to work for in the traditional brokerage space is something that drove me to the company.
00;07;35;13 - 00;08;05;11
Unknown
So I think people and leadership are underserved in the kind of entrepreneur space which house flippers are in the entrepreneur space, whether they want to be or not. And relationships are not just a component, but they're everything because they transcend all things that we do, like human interaction. Relationships transcend all things that we do. Turnus. Tim. Tim I know Tim well, and Tim does a great job with relationships.
00;08;05;12 - 00;08;29;16
Unknown
No nonsense, but also a good people person. You guys. From a money perspective, the number one thing that people tell me is an obstacle in their business, whether it's going to your first deal or they're scaling to 500 deals, is capital limitations. Talk to me about what Turnus is doing currently and what kind of investors you're working with.
00;08;29;16 - 00;08;51;11
Unknown
And I know you guys are so investor friendly, and I think everybody claims to do that, but I just know you guys actually execute. So I'd love to hear like, hey, Turnus is doing this for investors and serving this space in a meaningful way. Yeah, I think one of our flagship programs and products that we do is our no experience product, right?
00;08;51;12 - 00;09;11;19
Unknown
We let people get into the environment and really kind of get their feet wet, right? I mean, we do the no credit on those, no experience in those, no experience opportunities. And we actually allow people to start driving the bus. What actually we also cater to as well too, is if you do have experience, right, we do experience buckets, right.
00;09;11;20 - 00;09;41;28
Unknown
So it's not like we can't compete with other people that have experience in this, in this position for rate and all those types of things. But our the people we cater to are mostly the people that want to get started in this industry and accelerate their business to the next level, right. So we have an entry level program to get people that haven't done something, and then we have additional programs where people cash out from fixed and flips into and accelerate, expand into different markets with certain partners.
00;09;42;02 - 00;10;06;09
Unknown
We leverage our partnerships as well too, with those programs to give people additional leverage, to give people additional liquidity and additional leverage on the LTV to the RV. Right. Capital stack can kind of get reduced a little bit when we do a good partner. So we try to cater to the individual as best as we can. When we underwrite the asset, it's we are an asset base lender, so we underwrite the asset first.
00;10;06;10 - 00;10;38;13
Unknown
And what's so fascinating is almost every lender I know the term you might hear hard money lender or institutional lender or you know, sometimes even guys call yourself private lenders. But like professional lenders says that they're asset based. But yet they pull credit scores. They look at, you know, they look at you as a borrower. And it's oftentimes an obstacle for a new investor with no experience for sure.
00;10;38;20 - 00;10;59;05
Unknown
And they're like, well, I want to get into this. I'm totally dedicated. Their sharp they may be the next two 300 deal a year person, but getting over the hump of like, who's going to back me from a money position seems like a massive obstacle for the newer investor. I'm I'm curious what you're maybe you could just dive into the new investor space in layman's terms.
00;10;59;05 - 00;11;15;05
Unknown
Somebody listen to this. They're like in a W-2, maybe they're a nurse or a firefighter and they're like, dude, I need to flip houses. I want to go work with Turnus to get the cash, because I realize I can get the cash from them to do the deal. What does that look like for them? Sure. Well, what a business purpose.
00;11;15;05 - 00;11;29;20
Unknown
Lender. You have to have an LLC, right? We borrow an an LLC or guarantor with it. So. So they got to get an LLC. Got to get LLC, have docs. Right. You have to be having ane you know you have to be a business. We are business purpose lender. You can't we're not going to lend to Bobby for for as a personal loan.
00;11;29;23 - 00;11;46;24
Unknown
Doing that also allows us to let the borrower take first lean position. That is something we do because we like what we do. And when we underwrite these assets to as well as we do, underwrite them from the exit strategy to to an extent, right. Like we know on the back end, if we underwrite the asset, we're, we're we are safe at term.
00;11;46;25 - 00;12;05;12
Unknown
So basically what you're saying in layman's terms, we're looking at your deal to make sure you're doing a good deal, not just to protect us, but also you as the investor. That's absolutely right. As the lender. Right. We will tell you if the deal is not a good deal. I mean, it's sometimes it's better to say no quickly than going through the underwriting.
00;12;05;14 - 00;12;23;03
Unknown
A good a good no is better than a bad no is better than bad. Yes. And I think that people don't realize that there they'll get frustrated because they work so hard, maybe to bring something to you finally. And then they're like, well, it's not what I thought it would be from a lending perspective. Or they actually said no on it.
00;12;23;03 - 00;12;45;08
Unknown
And it's a lot of times it's the you're protecting the not just you guys doing a good loan in your investors, but also the real estate flipper, you know, investor to not do a bad deal so that they make sure they make money on their first deal. That's correct. We do that. And also we like to you know, it's also a good way for us to give them a non killer way to get out of it.
00;12;45;09 - 00;13;03;04
Unknown
Right. Like at the end of the deal, we can offer Dean and Lou right. We can do some short sale stuff. We don't have to foreclose on somebody if somebody gets into a pickle. So underwriting the asset makes it a little bit. Well, I don't want to say less risky, but it makes it a little bit more easier for us to do something on the back end when a borrower might run into a sticky situation.
00;13;03;05 - 00;13;24;20
Unknown
Yeah, I love that. We'll come back to this because I think that is such a big topic. So Bobby and I were in the room of maybe a few weeks ago, and we were talking about the real estate investor space. Like how many investors are out there? There's probably 4 to 6 million aspiring or active investors currently active.
00;13;24;21 - 00;13;57;24
Unknown
We consider somebody who bought in an over the last 12 months, only a total of about 855,000. Of those, only about 120,000 are probably flipping. Most of them are rental buyers because that's where we all start. We want passive income. We want to buy rentals. So serving, serving the new investor is a big pool of people. There's only 3500 total investment companies doing that are non-institutional, doing 100 plus deals a year rental or flip total.
00;13;57;24 - 00;14;22;14
Unknown
So but but Bobby, you're you're an institutional guy. You work for hedge funds. You might as well be Wall Street. How how does that play? I don't think people know this in masses, but how do you how do you guys help the regular everyday investor, the new investor, the experienced investor, the the mom and pop like me? That's a great question.
00;14;22;14 - 00;14;43;07
Unknown
So at the end of 22, when obviously the rates went up, like we went from a 1200 home acquisition appetite to a few hundred home acquisition, we had to make a big pivot. Our our cash offer product is not like what a traditional fix and flipper would do, right? It's high volume, low margin. Well, the volume is difficult to get when the rates are the way they are.
00;14;43;07 - 00;15;10;29
Unknown
So we started leveraging that huge team that I had built out around the country to start renovating on behalf of investors, an institutional grade investment renovation machine. And instead of going to the hedge funds, you know, we started targeting. And I mean, quickly, my assumption was like where I can make the biggest difference, which will make me stickier because I'll have that much influence is on the private investment sector.
00;15;10;29 - 00;15;39;25
Unknown
So for the last year and a half, going on two years, the majority of our clients, then we have some institutional ones and the Freddie and the Fannie and some of the other, you know, regional players. But the majority of the folks that we swing hammer for are private, fixed and flippers, private single family renter funds. And honestly, like, we're having such a great time with the the men and women who are just getting into the space because one anybody and I and I don't mean this negatively, but you can go find a deal.
00;15;39;25 - 00;15;57;07
Unknown
But the deal has to like execute all the way through the funding, the renovation and then the disposition. Anybody can find a deal that works on paper. It's actually living it out. You find a deal. Kohl's going to get you the money. Like you realize like, wow, that part's not even that hard. But now I got to execute the rehab.
00;15;57;08 - 00;16;16;16
Unknown
And so for us we have because we're doing it anyway. We're still renovating hundreds of our own homes. We started leveraging our capacity. So, for instance, say in Atlanta, I'm staff to do 100 flips a month, right. And we only by 60 houses this month. It's just arbitrarily well, I've got capacity to take on 40 more houses worth from however many clients.
00;16;16;16 - 00;16;32;00
Unknown
That can be because I'm already there. And I tell investors, it's like we're that high powered sports car that you you don't want to own. You just want to rent when you want to go fast, right? Because you don't want, you know, how much of that is going to cost. And those wheels are gonna like in the insurance is too high.
00;16;32;07 - 00;16;52;05
Unknown
So these are all my W-2 employees, and we basically will have borrowers, you know, some folks here in this seven figure community where they can say, hey, I've got a house in Atlanta, Georgia, or I've got a house in Charlotte, North Carolina. It's under contract. Can you get me a scope of work and we'll get you a detailed scope of work.
00;16;52;05 - 00;17;10;23
Unknown
And then my W2 team handles it. From there we buy the materials, we set the construction schedule, we're calling the trades, we're walking the house multiple times a week. And then we're handing it to you as if we were your project manager. And we're paying our trades. We're buying. Like I said, we're owning the whole thing and we're giving it to you with the bow fully done for you.
00;17;10;26 - 00;17;34;27
Unknown
And it's been wild. Last year we did a little over 1900 renovations for private investors, and with what we were able to shave off on their their time in renovation was massive. Which if if time is money, just think about what that does. Is that ROI if you can get it done faster, even a couple of days ahead of schedule, what that does to your holding cost, your risk mitigation.
00;17;34;27 - 00;17;51;19
Unknown
And and it's been wild because then last year or maybe a year and a half ago, I'll jump into a story. That's okay. Like we had a borrower in Dallas, Texas, wanted us to do their renovation and they're like, hey, I'm using a hard money lender. They're like, well, who is this? It's called Turnus. And I'm like, okay, I don't know who that is.
00;17;51;20 - 00;18;14;25
Unknown
Can you introduce us? I'm on the phone with Tim, and we were able to make some pivots, and Tim's like, all right, we'll try this one thing because we have some requirements that, you know, some deposit requirements and things that we actually make it very easy. But the most institutional lenders, it's different. And Tim was one of those guys like, hey, this could be a really good thing we did it.
00;18;14;27 - 00;18;26;06
Unknown
Three weeks later I gave him a final invoice. He's like, what do you mean a final? Like, the job's done, man. I said, I told you to have him 21 days. I'm like, well, I'm a day early, it's 20 days. And then from that moment on, he's like, I need you to talk to my sales team right now.
00;18;26;06 - 00;18;52;01
Unknown
How do we do this? Because he was able to take a risk on a new investor. We were able to mitigate that risk because I've got a decade's worth of data and I'm a publicly traded company, so I'm not running off of somebody's deposit. And like, like a lot of contractors do. One of the biggest pain points is if I, the contractor wants 50% up front, 30% for materials, and if I give them the cash, like, I don't know if that's ever coming back or if he's going to show up.
00;18;52;03 - 00;19;13;21
Unknown
Sure. Yeah. Or is he funding somebody else's job with this one or is. Which happens literally every day. Every day. And so for that that was a really cool thing. So Tim and I met became fast friends. Like, I love the guy. Like like I'm a big cigar guy. And I remember we bonded over cigar one night and just like, getting to know, like what you said at the very beginning, knowing who you're going to do business with.
00;19;13;21 - 00;19;32;28
Unknown
And like, I felt like right here in my heart, like, all right, this is somebody I can go shoulder to shoulder with and we can help. We can help some folks. And we've made Cole knows I've. I've been to the to the office a number of times working with the sales teams there and like, how can we help us say yes to an investor.
00;19;32;28 - 00;19;49;19
Unknown
And it's been really interesting because they're recommending us to their new borrowers and we're recommending turn Us all the time. I can't tell you how many times a week I'm saying, hey, cool, here's a new client that just came to me. They're looking for a hard money lender. We really think they'd be a good fit for Turnus. It's it's pretty symbiotic.
00;19;49;21 - 00;20;09;11
Unknown
So Turnus. Turnus gets the cash. So? So I'm an investor. Turnus gets me the. I find the deal. I'm like crap, and I got to do it. I need the money. Kohl's team gets me the money. I need a contractor. One of the hardest things to find. I come to you, you turn. This gets you the money. You do the work, we sell the deal, we make money.
00;20;09;11 - 00;20;27;14
Unknown
Everybody gets paid more. Half hundred percent. That's it. It's. There's nothing like this, by the way. Like you. Pretty proud of it. Together. Yeah. Honestly, like, if you're talking about a no experience like bucket that somebody needs to be talking about, it's this. I mean, it's it's almost like a no draw. It's no draws. We pay draws directly the 50%.
00;20;27;17 - 00;20;45;07
Unknown
All directly. Right. Like we pay that upfront directly to offer. We pay it at the end of the project. You don't come out of pocket for that. You know, sending us company cam photos. The, you know, verify geo tagged photos on draw inspections. It's just super smooth in three weeks. It's three weeks. Right. So like he says mitigating the risk.
00;20;45;08 - 00;21;01;27
Unknown
It's very easy for us to do those additional benefits that we do for those those non-experts. Well, because you think about the tough part is for that not experience. He might have a brother in law or a friend who said, hey, I'll squeeze you in. Well, you've bought the deal, you've got funded, and now you're waiting a month and a half because the guy picked up another job.
00;21;01;28 - 00;21;25;22
Unknown
Well, the clock doesn't stop on on that loan time frame, right? And the holding cost in that for us. Like the moment we get a contract sign for the renovation and the deposit is, is ACH right to us, we'll have boots on the ground within 48 hours of the job. And so for them as a, as a, as a lender, if they're underwriting to the asset and they're thinking like, okay, at least at the end of the day, we know the job's getting renovated, right?
00;21;25;22 - 00;21;48;03
Unknown
And we know that if the line item is for a sink, the sink was being paid for. There's no sleight of hand. And I personally you guys have renovated properties for me. And like I quick story, I did a property in Pasco County, Florida and you guys quoted me. I think it was a lighter rehab roughly later rehab.
00;21;48;03 - 00;22;11;14
Unknown
I think you quoted me 30,000 bucks and 30 days, about $1,000 a day in rehab, and I ended up choosing not to do certain things and then recruiting to do them later, which took us to about 50,000 in rehab. But you still finished it in 30 days? Yeah, in 30 days. Literally in 30 days. We made like 50 grand on that deal and was our first one together.
00;22;11;14 - 00;22;36;23
Unknown
And that was our first one together in your team. Your team's so in rehab you have three things you have time in. This matters to the money because the clock is running on interest and you got interest payments and stuff. In this case it's a little different. So you got somebody with a known time using alphabet Renovate where you're going to be within a very close whatever you're projecting or be very close to that budget.
00;22;36;24 - 00;22;57;16
Unknown
The amount of times that a regular contractor blows their budget or submits 10,000 change orders or doesn't really understand what they're doing, and you think you're going to only pay 40,000 for rehab, and it ends up being 80,000 is way more common than it. Astronomical. But you're right. Like most of the times, the contractor will get you what I would call.
00;22;57;19 - 00;23;12;06
Unknown
And this might be crude and you might edit this out, but I think it makes a lot of sense. I get you, get you knocked up on a cheap scope and then your shotgun wedding, they're trying to win your business. Exactly. And but that's the way that you don't make a partnership. Because now I don't have trust in that contractor.
00;23;12;07 - 00;23;26;03
Unknown
He's not going to. And so for us, like we want to have very low cost variances. Right. We want it because we're treating it like it was an offer pad house. If I did that on an offer pad house, I wouldn't have a job, right? You know what I mean? So like we're trying to with the same lens that we're looking at that.
00;23;26;06 - 00;23;48;24
Unknown
So so let me ask this because I know people are going, well, how do I work with offer. And we'll drop all the contact info. But like you're not everywhere. You're not in every single market in the United States. But we're everywhere together, every place that we're renovating. Turnus is also lending. You're in 26 market. Correct. Which we'll we'll list the markets and the show notes so people know and contact info and stuff.
00;23;48;24 - 00;24;05;29
Unknown
So in any of those 26 markets, any investor right now can reach out to you with the contact info deal they have under contract or have purchase and submit it to you, and you guys will scope it right now. Yep. And what's great about that same scope, that detailed scope like, well, you can bring it right to Turnus.
00;24;06;05 - 00;24;30;25
Unknown
They'll use it on their underwriting. And if it comes from us. I mean, you could you correct me if I'm wrong, but there's a there's a extra level of confidence in the deal knowing that we're going to be there to renovate it. Yeah. You prefer those deals? We love those deals. I mean, you know, to to be fair, I think, you know, you kind of hit it on the head like trust relationships again like you I don't know contract or X but I know offer pad renovate as a publicly traded general contractor.
00;24;30;25 - 00;24;49;04
Unknown
There's no cutting corners around that. Right. There's no you know, there's no like, sleight of hand on a on a drawer inspection. There's no none of that stuff. Right. So to to what Bob is saying, I think it it makes a lot of sense. Right. Like we have a very good I think we have a very good actually hand off as well.
00;24;49;05 - 00;25;09;06
Unknown
Right. When somebody comes off or Pat, we have a very good transition into introducing them to turn us. We have a very good handoff into introducing them to offer pad renovate to on board for their business. So it's it's really like a it's almost like the warmest introduction to a contractor and lender you can probably find today. And personally in my opinion, maybe I'm a little partial here.
00;25;09;09 - 00;25;33;05
Unknown
Well, I mean, I am too, but I'm proud of it because if we're going to try to, like, truly be a renovation solution that people can count on, I want to be able to partner in a way that sets them up for confidence. And if you're a new investor like, I completely believe this, like if you can get through your first deal and see it all the way through and like, okay, that wasn't as scary as it could have been because I could tell you horror stories, you know?
00;25;33;06 - 00;25;50;00
Unknown
I mean, I've lived through some of myself, you know, but like, and you will if you stay around long enough, but if, like, hey, if I can get it fun, if I can get it acquired, funded, renovated. And then now it's in your hands to dispose of, like, man, you'll have confidence to want to say yes to the next deal and the next deal.
00;25;50;00 - 00;26;06;01
Unknown
And then the coaches here like at seven figure are going to help you navigate. You know, I'm sure you guys are helping navigate what this position looks like. I'm sure you're helping navigate listing it the right way, pricing it right. And what I love about this too, like and this has been something that's been fun, like helping people scale their business.
00;26;06;02 - 00;26;21;26
Unknown
Like I tell a story all the time. A wonderful client out of the Saint Louis market, he was doing section eight voucher based rentals. We did in one year of 30 or 44 him, you know, some rough houses. And he went to go, yeah, he went to go raise some capital. Like I should have been wearing Kevlar almost every single time.
00;26;21;28 - 00;26;42;19
Unknown
Right. He went to go raise capital based on our partnership. And, you know, a year later we're renovating in 7 to 10 markets a month for him. And he didn't have to go hire a single employee to do that. And he's still running it out of his home office. He's acquiring it, you know, and then we're and we're renovating it for him.
00;26;42;20 - 00;27;00;17
Unknown
Gale ability is like massive. And if it's in repeatability, be on that too. That's what I love. Like if we only work with, like, Turnus in Charlotte and in Texas, like, it would not be a very scalable business. I would still want to do that. But the fact that, like, you guys are a very similar footprint, I think you guys might be in more markets than we are in.
00;27;00;18 - 00;27;41;05
Unknown
Right. But the fact that like that partnership for an investor, it can be rinse and repeat, scalability, predictability and then that allows that confidence. In my opinion, those two things can absolutely affect a confidence level of a new investor. Yeah. It's it's it's it's never been easier. Sure to have access to great capital, affordable capital and the ability to renovate, which historically been the two hardest things I don't think people have the context of, first off, the the, the institutional people weren't even really in the market 20 till 2012, 2011.
00;27;41;06 - 00;27;59;17
Unknown
Right? And same with hard money lenders like what we see today where Turnus has such a great product. You guys are so competitive. The cost of money so reasonable like that didn't really exist in 2011. So we're not talking about this has always been there and everybody has always done this way. Like this is the best it's ever been, right?
00;27;59;18 - 00;28;20;25
Unknown
Ever in the history. And I think we sell that short and we sometimes I see these investors take it for granted. You know, it's like, oh, I can I got all this money available to me. It's like, well, this is why relationships matter. Because this hasn't always been there. And this is why being a good steward of the capital and using a renovation team that does what they say they're going to do is so, so critical.
00;28;21;02 - 00;28;48;09
Unknown
I want to bounce to you for just one thing. So for getting money, money is easy to get. Money costs money. New investors don't realize that. Maybe like you just pay for the money. It's actually not terribly hard to get. You pay for it. And but what does it look like for typical new investors doing a deal? Like what's the typical rate range?
00;28;48;11 - 00;29;11;13
Unknown
What point do they pay points like how many points? What does a point mean to somebody who is about to do their first deal? Do they even know? Yeah. What do you require of them? What's a good borrower look like? Yeah. So, there's maybe two parts of that question. I'll break it down. So first off, I think we, you know, I don't want to dive crazy into rates, but, I mean, you know, a no experienced borrower.
00;29;11;13 - 00;29;26;07
Unknown
I think you can just off the bat, kind of just start at a, at a higher rate. You can just the lender is going to take a risk on that person for sure. Yeah. So your interest rates probably gonna start anywhere on a base of 11 a 12. And your points down are going to be anywhere from one and a half to maybe even three, right?
00;29;26;08 - 00;29;48;08
Unknown
Depending on which is not that bad. Depending on what you put down, it's not bad. It's 11 one, 111 and three. Like if you're a brand new investor, it might sound like, gosh, that sounds like a high percentage if you're comparing it to a CD or something. But I mean, 15 years ago I'd have taken 13 to 3 to, you know, and people do today and a lot of these people are taking that today.
00;29;48;10 - 00;30;05;05
Unknown
And we do people we do that all the time for new investors. Right. Like it's a matter of what your what your liquidity is what you want to put down it. Like like we talked about in the beginning, it's all really asset based. Being a good borrower I think makes the difference. Right. Like you can't come to us with out complete LLC docs, right?
00;30;05;09 - 00;30;23;08
Unknown
You can't come to us with a half scoped renovation, right? It just kills deals to an extent. So I have good LLC docs. I've got the deal numbers that I think are true and dialed in. I've got these guys have already scoped my property saying everything that needs to be done on the rehab. That's right. What about me personally?
00;30;23;08 - 00;30;44;07
Unknown
Are you looking at me? My credit score, my bank account? I'm looking at I'm looking at cash statements. Basically. I'm not looking. I'm not running your credit. I'm like, we're not doing credit checks on our 100% financing product from no experience. So we do pull credit on our product. It's the one product we pull on. Okay. So if they're DSR, if they're borrowing for rentals and they're buying credit because it's a long term relationship relationship.
00;30;44;08 - 00;30;59;26
Unknown
But for a fix and flip no credit and flip no credit, we don't we don't do the pull. Like I said, we do the asset based underwriting. So we pull the valuation piece of the of the asset. Right. And we make sure that the purchase price and the renovation budget stack up to that ARV for our capital. Okay.
00;30;59;28 - 00;31;17;05
Unknown
Then we send you a term sheet for that. If the deal looks good and I have a 500 credit score, feel like, man, that's a great deal. But my credit score is 500. Can I get a loan? Yeah. If I have only $2,000 in my bank account, that would be depending on what you really want to do with the loan, right?
00;31;17;06 - 00;31;35;13
Unknown
Like if you have $2,000 in your bank account, you are going to need points down for that, that loan. Right? So if you're let's call it 100 grand, if you have two grand in the bank, you're going to need that two points down to to put that grand down right point, but also percentage percentage of the total of the total loan amount, loan cost.
00;31;35;15 - 00;32;10;12
Unknown
Now we do we do require cost of capital for interest reserves which you can also pay up front as well. You can. So that means if I'm borrowing $100,000 from you at 10% annualized, that's ten grand over the year, that's 833 bucks a month or whatever that means. If I'm saying this is a six month loan, I need eight, 33 times six months of cash so that, you know, I can pay my interest payments on, you know, you pay your interest reserves through the life of the loan and then and then with you if you get rid of that loan before, like if you get that loan prepaid off those interests or if you prepay
00;32;10;12 - 00;32;31;12
Unknown
the interest reserves that down, which we do to sometimes benefit rates, you can prepay those interest reserves. If you close in 90 days you would get that back at closing as well. Right. So your points down kind of are dependent on your experience. Bucket pretty hard at Turnus I would say you're no experience will probably be or more 2 to 3 points down and you're you're you know if you're doing ten plus a year, we get you.
00;32;31;13 - 00;32;49;01
Unknown
We'll get you out of a point. Right? Yeah. So the experience buckets come down to the to the to the points really the interest groups. It's really dependent right. It's really dependent on the asset at that time. If you're going to put if you're going to put 20% down, you're going to put 10% down. If you want the 100% product, that rate will change based on.
00;32;49;03 - 00;33;09;14
Unknown
So if you're going to fully leverage, there's risk associated for the lender. So the rates will be higher. You can do it. It's fine. It helps you with liquidity in your business, but you got to get a better deal so that it can support paying for that money. That's right. Yeah. I mean, in our world, I mean in the underwriting world, to me, sometimes it's not always the best option to do 100% financing.
00;33;09;14 - 00;33;22;15
Unknown
If you have 10% down to get the rate and you know you're going to hold on to it for the 12 month bridge loan or something, like it's really dependent on what you go over with your loan officer based off of that asset, and really what your exit strategy is going to be from the initial onset of that application.
00;33;22;15 - 00;33;41;22
Unknown
And if these guys call you and say, okay, I heard your podcast, it all sounds good. I still have questions and need help. Your team will coach them through absolutely what their best option? Absolutely they can. If you're putting contact information on, they can reach out to me directly. They can go to Turners. Com. They can fill out, you know, a contact us form directly and they can get to our site right now.
00;33;41;24 - 00;34;00;18
Unknown
Once you actually start an application you get a dedicated account executive for the for the life of your partnership here at Turner's. Yeah I love that. So let's so we talk a lot about new investors, Bobby. And I know you've got a range. You've done people's first deals with them. You got guys doing maybe ten a month or something with you.
00;34;00;21 - 00;34;25;07
Unknown
If somebody's experience, they probably already have a mechanism for rehab. At what point are they coming to you or does it make sense for them to work with you? Yeah. I mean, the two things like that really come to that is pressure relief valve, right? If they are doing one or 2 or 3 a month, they're they're realizing that if they're chasing down plumbers and painters and landscapers, it's harder to source more deals.
00;34;25;08 - 00;34;50;25
Unknown
Right? So now that's just they're trying to get their time back. So we're we're a big pressure relief for them, especially if they're managing it themselves. People that may or may not have their own project managers on staff. One of the hard things as a people leader is making sure that you're staffed for volume appropriately. So you've got a team of project managers, and they have to do seven a month to pay for themselves or to be profitable.
00;34;50;25 - 00;35;11;16
Unknown
And you only bought four houses this month, and then you only bought four houses the next month. Now you're having to decide, like, can I keep them? Is it worth that? That overhead by the ROI just went down big time because now you're it's being eaten up by their salary and their costs, you know, from a from a total PNL standpoint.
00;35;11;16 - 00;35;32;25
Unknown
So we've really helped a lot of folks, kind of like jump that shark riding the volume wave. Hey, I don't have to be staffed up for this or hey, I've got one guy on my staff and he he'll do five a month, but I want to increase to 7 or 8, but I don't. That's not enough for me to hire a second guy.
00;35;32;27 - 00;35;48;14
Unknown
So it's great. We'll handle like number six, seven, eight for them, you know, which I don't want to take that guy's job and I don't need to one of the for a lot of our serious investors, it's market expansion. Right. So we're helping them. You know, I have one client that we do about 100 houses a month with.
00;35;48;14 - 00;36;08;04
Unknown
And I've got, I've got clients that I do one a quarter with, you know what I mean. All the way in between. A lot of the time. So you might be in California flipping or, you know, doing your thing and think, I need to buy more rentals. That cash flow, right? And Bobby's in Michigan, Memphis, Saint Louis, Orlando and Lana.
00;36;08;07 - 00;36;28;19
Unknown
And you're like, that's a much better rental market. And I want to expand, but I don't have capacity to, like, build another market. But I know I can go find deals and get deals, and I don't have to build the renovation to just go start requiring a more cash flow mark. And then your team's handling all. I do that at least for 20 or 30 different clients every quarter.
00;36;28;20 - 00;36;48;08
Unknown
I'm that guy. For them. We're not their home market, which is great. I don't need and honestly, I might not even be in their home market, but I need to be their team out here. And they've they've come to know, like, I've got a client in Dallas and he has there in six states. He has zero field employees, but he has every one of my project managers cell phone numbers.
00;36;48;08 - 00;37;05;08
Unknown
And so he basically rents them. And when he's walking into a new house, like they know, like, all right, I'm going to call Mr. Scott and we're going to FaceTime our way through this thing so that he could see it from his computer. And like, he can help make renovations decisions. And we're just we're his mercenaries. You're an extension.
00;37;05;09 - 00;37;27;03
Unknown
Yeah. In of people's teams. And what's really cool about it, and it was something for us to learn, is that same project manager, he might have 5 or 6 other clients and they all have slightly different goalposts, but it's still it's still the same mechanics. But I think the thing over all of it for us, if we're trying to be a renovation solution that someone can have confidence in, I think for me, consistency is the biggest way that we do that.
00;37;27;03 - 00;37;54;05
Unknown
So our timelines, like you were talking about, I've got ten years of data to show you how consistent we are, our partnerships that we're talking about, how consistent they can be, our product is consistent and our pricing is pretty. And I think if as we offer that consistency even to seasoned investors, like there is a safety net that's in there, could they potentially go have their uncle's brother who's got his HVAC company do it a percent or two cheaper?
00;37;54;07 - 00;38;18;01
Unknown
Sure, absolutely. They'll pay for it in the long run. Longer or every time. Yeah. If you're trying to scale, you get what you pay for, you know what I mean? And it doesn't if you're trying to just go to the bottom dollar for the deal, like what you'll pay for that in is peace of mind pressure, you know, timelines, time which will equate to money, which you end up stepping over down your profit margin 100%.
00;38;18;01 - 00;38;37;24
Unknown
And some people still have to learn this the hard way they do. And honestly, like I was talking, I had lunch with one of my clients here in in Nashville this afternoon. And like the from just a people leader personality, the weight or the responsibility of employee management and knowing like that's their kids, that's their family. I'm responsible.
00;38;37;26 - 00;38;54;28
Unknown
Like if we're trying to get bigger and grow and then there's overhead that comes with that. And what happens if you decide to retract? Now that's a whole bunch of people that are out of jobs like that weighs on you as a leader, for sure. And so like we I think we really help alleviate that pressure to from a people leadership standpoint.
00;38;55;00 - 00;39;13;20
Unknown
Yeah, I think you guys are like, if you're if somebody is in one of your 26 markets, I think they'd be a fool not to at least kick the tires. I'm working with your team. It doesn't. And to me it doesn't make sense when we think about renovation time, time, budget and quality. Right. Like those. That's the triad of rehab.
00;39;13;20 - 00;39;35;14
Unknown
And you usually going to get two, right. You strive for three and most contractors cannot get time and budget right. Maybe they'll get quality right. But you guys are like so freaking down then. And I know that from experience. So it's like it's amazing. Cool. So that's like the that's that's the experience investor side. So if they're new it's a no brainer.
00;39;35;15 - 00;39;56;12
Unknown
Like I have a known quantity contractor solution to do my rehabs. And it's not just flips either right. We'll do rental turns. Rental turns is a big deal. The client that I was here with here in Atlanta, like we just do rental turns for him and, you know, right. In Nashville. In Nashville. Yeah. And right now he's he's getting ready to acquire some here in Q3, some new ones towards the end of Q3.
00;39;56;12 - 00;40;13;05
Unknown
And we'll go do those renovations. But he's got a bunch of doors out here that he really needed somebody for rental turns. And so I think that's a beautiful, beautiful way we can do it. And, you know, all the different ways and the different type of loans that these guys offer, like we it doesn't just have to be the fix and flip for it to be funded and partnered.
00;40;13;06 - 00;40;32;00
Unknown
You know, on the can I get you in Milwaukee at Old Milwaukee, like, are you I need to get you. I need to get a get to the city of Milwaukee, I thought, is he offering me a beer? And Milwaukee, we're in Minnesota, but we're not in Milwaukee. Yeah, yeah. All right, all right. It's close, but not close enough.
00;40;32;00 - 00;40;49;14
Unknown
Not close. I love the Reynolds up there, so that's amazing. Now, you guys, you guys service the new investors. And you have an incredible product where you will lend on 100% of the deal. So long. It's a good deal. And every they've got a little cash in the bank and stuff. But you also lend to more experienced investors.
00;40;49;14 - 00;41;27;06
Unknown
I just talked to a couple very experienced investors a decade in the industry, great track record, profitable deals. And they're, you know, they're getting good rates in terms. I think they get comfortable with a lender and they make a mistake by not having a bench. They don't have multiple options. And sometimes things change in a marketplace. And we've seen this in the past, like during the pandemic when the big box, the big, big box lenders like just put a freeze on everything and everybody was freaking out because capital is not there.
00;41;27;06 - 00;41;47;13
Unknown
And, you know, you would think people learn that lesson. But I watch people not have more than one lender available. Are you competitive for the very experience like very confident borrowers that you you're like, that guy knows what he's doing is there? What does that look like for those guys? Yeah, we we can we can be. Yeah, absolutely.
00;41;47;13 - 00;42;09;20
Unknown
And you know, to your point as well to I think it's just you if you show the experience right. And experience to turn us is in a market. Right. Like you can't for sure. Right. It's like they're turning the same thing in the same area. Right. It's not ten everywhere, right? So if we share your experience, we can be we can be competitive with, you know, we'll call them the big the big dogs of the hard money world, right?
00;42;09;27 - 00;42;31;18
Unknown
Yeah. I think your point to having a good bench if you're not doing that already, we have a lot of borrowers already doing that at Turnus. Right. It's not uncommon for us to get fallout for competitive competition for whatever reason. Right. Or it's not uncommon for us to have an application. And then somebody come back and say, these people gave me this.
00;42;31;18 - 00;43;04;18
Unknown
Can you do this right? Like so I think certain people already in that experience are already having a decent bench if they don't have one today. Right. I think it's something that we should you should be looking at as an operator, because I think the products are switching so often now to the consumer that you if you're not paying attention to the bench lenders as well to you are missing that partnership potentially with somebody like a, you know, with like an offer pad renovate or, you know, just last month we did, you know, like this month in July, we're doing $250 processing fees.
00;43;04;19 - 00;43;24;02
Unknown
Like that's 1500 bucks in the pocket. And normally, yeah, normally $95. Yeah. No, it's 1000 to 2000 bucks. Any lender you go to. Right. So like, we do these things constantly all the time. So if you're not communicating with lenders and I mean I know something. And that's going straight to their bottom line as a as a house.
00;43;24;04 - 00;43;46;04
Unknown
If it's a tight deal you should absolutely be shopping it. So we do that every month. We we are we are very cognizant of trying to give borrowers the best savings for their pocket at the time, that Turners can do it, and the rates in terms and the cost of money is only one component to. I think the other thing is how easy are you going to make my life?
00;43;46;04 - 00;44;05;06
Unknown
Because you might see some crazy good looking term sheet from a good lender, but their draw process is. And that's one of the beautiful, the worst, the worst thing. It just like it kills your deal. Or they come in on an RV on the closing date. That's low. And now the amount of leverage are going to give you.
00;44;05;06 - 00;44;31;15
Unknown
And it's we're supposed to be closing today. Some I would pay more for somebody I can count on. Yeah. We got so I think we got so caught up in the race to the bottom for the consumer fee, like over the last few years that as leaders. Right. Like there was a gap maybe where we maybe forgot about the user journey or the customer experience to a certain extent, because we wanted to be that, we wanted to be that person, compete, whether that was the lender, the contract.
00;44;31;17 - 00;44;49;25
Unknown
We wanted to be the person that everybody went to and we were going to be the cheapest. And that kind of for a few years, I felt like was what people went to. And now it's not really about that. It's bringing that customer journey back. So we we may not be the cheapest lender on one deal, but we will probably you can want to fund it fast, smoothest you can.
00;44;49;26 - 00;45;07;18
Unknown
The draws are going to be good. Your Avs are going to be solid. Communication will be better than most. You're not going to ask for the same documents five times. You have a dedicated account executive that you get a direct line to at a time that you can call, text, do whatever you need to do with you. You basically have an extension of Adam.
00;45;07;23 - 00;45;34;04
Unknown
Yeah, you have an extension of Bob. You have an extension of Cole. And basically you get directly to you get direct conversation with us, which is something that I think our speed really relies on right now. What's really interesting, like when Tim and I first started talking about this, this partnership, like we don't do drawers, right? We do a 50% deposit upfront and a 50% net 30, you know, on completion and in the traditional lending space, like that's not a thing.
00;45;34;10 - 00;45;54;01
Unknown
No, the contractor has got to do X amount of work that then you could submit for the draw. The tough part about that just from the investor side, the contractor is not working again until he gets his draw. Right. It's Friday. I need you to pay me to continue to on Monday. They're just now coming to look at the house to confirm it's done.
00;45;54;01 - 00;46;17;22
Unknown
Then they're going to ACH me. It could be seven days. Seven, eight days. Do you think that that contractor is just sat there? No, he's moved on to somebody else and he's waiting. So now your job, your your time to cash just went through the roof because now your contractor. So one of the things that was a beautiful partnership that like, you know, Cole and I've been working on with him is like, Turnus will not do it.
00;46;17;27 - 00;46;33;25
Unknown
They don't have to do the draw request with us. They'll pay us the deposit. We fund the entire job, we go do this job and then they pay us at the end. So now the hiccups, the self-imposed hiccups that in the lending and renovating world on the real estate investment side that has been there forever. Completely solved. They're gone.
00;46;34;00 - 00;46;56;19
Unknown
Completely solved. Yeah. I think that's a testament to the combination to working with a, you know, $1 billion publicly traded company who's who's so professionalized and then a lender who works directly with you guys, like, solves the literal two biggest problems, whether you're new or experienced. Honestly, experienced investors have the same issue. Like nobody is immune to those issues.
00;46;56;21 - 00;47;15;29
Unknown
It's such a beautiful thing because if like with rates, the way they are and the deals and the underwrite and everybody trying to get that last extra percentage of that ROI out, like the the hard conversation and as leaders, we have to go look in the mirror is like, where are the self-imposed, you know, speed bumps that we are putting on our on our deal?
00;47;16;01 - 00;47;39;20
Unknown
Right. Because I don't know if those are always taken into consideration during an underwrite. You know, I mean, I don't know if somebody is, you know, calculators thinking like, well, how many extra days is this going to take for a draw request or for this or, you know, and so, like you said, if you can eliminate two of the biggest ones of those, the opportunity for the rest of the job to go significantly smoother as just up and to the right, which makes you more profitable 100%.
00;47;39;21 - 00;48;03;02
Unknown
You make money on your deals and then you can start growing, do more and more deals. It's a beautiful thing. This is this is incredible. What what's one question I didn't ask either? You. I'll go to Cole first. Which one question? I didn't ask either. You that I should have asked about what you guys do. Well, I mean, I don't, you know, we.
00;48;03;05 - 00;48;17;14
Unknown
I think we, you know, maybe it's not a question, but I think, you know, something that I can kind of maybe elaborate on. I think that had just dropped with this, the road, the Housing Act. I mean, I could talk to that. Oh, yeah. Let's let's talk about that. So the Road to Housing Act comes out. They signed it into law.
00;48;17;15 - 00;48;38;04
Unknown
This is a new. This is a new thing that just got signed into law. What is it. What does it mean to 50 plus institutional. Right. That's you are an institutional assessor at 350 units or more, right? Single family. Yeah. Those people now cannot buy these things on the open market. Right. If you are on the open market, like that's the very I think, key word.
00;48;38;04 - 00;49;00;13
Unknown
Right. They can still go institutional institution and sell portfolios back and forth, do what they need to do. But on the open market, they can't really compete with the people that have less than 350 houses. So I think there's going to be a significant opportunity for the investor space that is not institutions to kind of get back into the metrics that were kind of taken over by them.
00;49;00;15 - 00;49;18;10
Unknown
I do think the land potential for institutions kind of goes a little wild, because the seven year force is removed from the law, so they can hold on to those properties now for more than seven years. They don't have to for sale. So previously, these institutional buyers could only hold the house for seven years. So now there's no for sale, right?
00;49;18;12 - 00;49;36;06
Unknown
So they can hold on to them now. So that's that's a little bit of cat. So I do think like the land sales the institutional start probably scooping some of those. And BTR will probably get hopping again pretty well if it never really stopped. But but it does carve out a really good window I think for that 0 to 349 experience.
00;49;36;06 - 00;49;54;26
Unknown
Right. Let's call it that, to where the competition for those on market properties might not be hard. So I would say get really close to your wholesalers for off market properties. Get really close to your local real estate brokers, REO agents that are going to have these asset owned properties and start telling them you have these, the access to this.
00;49;54;27 - 00;50;14;02
Unknown
How do you find a good Rio agent? Well, or just NRO agent, whether they're good or not? Go Rio broker com you can go to our you know you can kind of do you could do a lot of local research on it. But I would first start with probably your local real estate association. Right. You could go to the like Suncoast Real Estate Association, which I'm a member at, which we're close to.
00;50;14;04 - 00;50;32;09
Unknown
You could go to their directory basically, and it will tell you what certifications they have as a broker, what sort of and these REO agents have access to basically bank properties that banks are taking back that they foreclosed on. Now they have to disposition on disposition, and they're just trying to get them off the balance of the balance sheet.
00;50;32;12 - 00;50;51;15
Unknown
Of course, there's a number to it, but they're trying to get them off the balance sheet. That's right. Yeah. And they're going to and you know the brokers are really looking I think those brokers were starting to get a lot of activity from Mario brokers as well too. But I think those brokers are looking for easier ways to get rid of those, those properties now outside of the market.
00;50;51;16 - 00;51;06;04
Unknown
So now I go find an Oreo broker. So I don't have to do any marketing. You'll find an Oreo broker. They give me a list of properties I can buy. I go talk to turns, get money, come to you Bobby, swing those hammers and say, let's price this thing out and see if we can make money. We price it out, we go.
00;51;06;04 - 00;51;21;29
Unknown
Crap. Let's buy three of these things, right? And we can. And at Turnus, what we're starting to do now is we'll we'll we'll do we'll put a number on it before we make you fill out that application. Right. You give me a list of ten houses that you have off market, and you want me to kind of underwrite them a little bit?
00;51;22;00 - 00;51;42;01
Unknown
I'm going to look at those before we, you know, charge you two grand times ten on an application or processing fee. Right. We're going to make sure that a kind of the pencil can be sharpened on the deal. Yeah. So like if you have a tape I would say we're we'll look at it. That's incredible. And then for you Bobby I think you guys bring such a massive value.
00;51;42;02 - 00;52;09;20
Unknown
And this is new. Really. Sure. Like being able to work with a publicly traded company as a regular investor is not. It's not something that's like less than two years old. Yeah. Like it's for me. It was one of the best gambles that I took, you know, because when we first started this division, it was, it was to be for the bid size to big institutions doing hundreds a month by month.
00;52;09;21 - 00;52;37;13
Unknown
Right. And the more I thought about it, I had read a housing wire report and like 2024, there was an article 85,000 transactions of 15 homes or more by an LLC. Only 3% were institutional people. People think institutions are doing all the deals. Not the case. It's not the case. 97% of those transactions were from non-institutional buyers that were there were real estate investors in 2024.
00;52;37;13 - 00;52;57;25
Unknown
And I thought to myself, like, could it be more complicated? Right. Does that mean, I mean, if Kohl's LLC is only doing two a month, but this big, huge hedge fund was doing 100 a month, but like the money still green, I'm probably making a bigger difference. And honestly, better relationships, better relationship, a real person on the other end.
00;52;57;26 - 00;53;16;18
Unknown
I'm a cog in a machine over here. I'm a partner over here. Yeah, the amount of times that I'm on an airplane per month to walk homes with our clients, like, or to break bread like I just did today, you know? I mean, we're like lunch. We had lunch we had last week, like. And that's not just to shake hands, kiss babies.
00;53;16;18 - 00;53;31;23
Unknown
It's like, how is the partnership? What can we do better? What can we. Because, you know, no renovation is going to go perfect. And we're going to step into sometimes too. But like we also want to make sure like okay when something goes wrong. How do we make it right. How do we communicate updates. How do we, you know, escalations the whole nine yards.
00;53;31;23 - 00;53;48;06
Unknown
And I think for me, what has been beautiful is the amount of clients that have my cell phone. And I'm going to answer that call or I'm going to answer that text. Granted, I'm not on an airplane, you know what I mean? But I'm going to and we're going to find out a solution or. Yeah. Hey, sometimes it's just hey.
00;53;48;07 - 00;54;03;05
Unknown
The amount of times, hey, I'm in Tampa. Wears a good place to have a cigar. Wears a good place. All right, let me know. All right, let's let's go break bread. Let's go do this. Or. And I like that. I mean, two weeks ago, I had an opportunity. We had some brand new investors that we had just finished swinging hammers for on their properties.
00;54;03;08 - 00;54;18;12
Unknown
It was their first projects. And I got to go walk those houses. Wow. You know what I mean? I got to take the pictures and then I called that client because I'm the one who sat with the client when they signed up for us. And I'm not the one managing the swing of the art directors are, and our project managers are that are local.
00;54;18;12 - 00;54;40;28
Unknown
But I was so proud to walk in and see that transformation and be able to call them like, hey man, I'm standing in your house like we did it together. But literally change like that event in that investor's life, like changed the entire trajectory of their future. Sure. And that's what I'm proud of. Like, I've got this. My team probably sick of hearing me say it, but, like, my personal mantra is like to leave it better than I found it.
00;54;40;28 - 00;54;59;14
Unknown
And like, whether that's an email, whether that's a property, whether that's his confidence or his bottom line is partnerships. You know what I mean? Like, I want to be able to do that, like truly from the bottom of my heart. And like I take pride in that. That's fun. I think it's amazing. And we've got a few days here.
00;54;59;14 - 00;55;21;11
Unknown
We're at the headquarters at seven figure flipping, and we've got a member only event happening that you guys are participating in. You guys are going to pour into the members here. I mean, imagine being in the room where somebody who's renovated a thousand houses a month is talking to you about what a good partnership looks like, what the right systems look like, what the right processes look like.
00;55;21;12 - 00;55;40;25
Unknown
It's like almost hard to fathom how valuable that is. And then having Cole and his team talk about every nuance of getting the right money and where they should be, and what they need to do to get more capital to grow their business, and how to work effectively between capital and rehab. And I think it's it's going to be really powerful over the next two days.
00;55;40;25 - 00;55;59;19
Unknown
And I'm excited just to be in the room with all these investors. You know, a lot of these folks that are coming to this particular event, you know, they're not we've got a section that are new, but we've also got quite a bit of experience in the room. And I think I think we're all going to end up doing a bunch of deals together.
00;55;59;20 - 00;56;13;18
Unknown
It'll be fun, I think. I think people are going to literally get something here that's going to be the catalyst for profitability and growth in the rest of this year, and I'm like, super excited about it. That's pretty cool because you can ask the questions before they matter. You know what I mean? Before your money is on the line.
00;56;13;20 - 00;56;31;28
Unknown
You know what I mean? And that's what rooms like this, that's what they're for. Super grateful to have you guys. Absolutely. For having us for sure. I'm going to put. So is there a good way to contact you. What's the best way to contact you? I can I have email, text, social media, social media, all of it. I can put all of my contact information on the thing.
00;56;32;00 - 00;56;47;01
Unknown
I'll just put my cell phone number out there. People can have my cell phone. Okay, that wow. That's dangerous. I'm sure that is. I mean, just don't text me. But three in the morning. Do you have an office line you up? I mean, like Bobby said, man, like it's a relationship game. I'm not opposed to give him a.
00;56;47;07 - 00;57;03;26
Unknown
When we're friends, it's not uncommon for me to be thinking about something. Morgan smiling. He's not my team and he knows this to be true. It's like 11 p.m. and I'm like, hey, I got an idea. Yeah. I'm like, oh crap, it's 11 p.m.. Yeah, don't do that. Work like, you better give me the work line. That's right.
00;57;03;27 - 00;57;23;17
Unknown
My best ideas come in opportune time, so. But I'm like, so excited. I got to tell you. That's awesome. Okay. And then for so so capital, we're going to get all your information in the description for renovation. People like okay I need contract a rehab team. How are they working with you guys. Easiest way renovate at offer pad.
00;57;23;19 - 00;57;39;19
Unknown
Or you could go to offer pad renovate. There's two ways you can access it. We'll get you a link. I'll take 30 minutes with you. We'll schedule a. Call me and and David on my team and we'll get the ball rolling from there. It's that easy, man. I'm super, super grateful for both of you guys. Yeah. Thank you for having us.
00;57;39;24 - 00;57;57;25
Unknown
You guys are amazing. Rock n roll, bro. Great. All right. Thanks for tuning into this show. Literally, you can get the capital and the rehab done. These two guys can do it for you. And all you can focus on is getting good deals and selling them. It never has been easier in today's market. I appreciate you tuning in.
00;57;57;26 - 00;58;12;27
Unknown
Go check out their their links. Go ahead and call close personal cell phone at any time you like and and talk to offer pad renovate to get your construction move in. I'll see you guys on the next show. Catch you on the flip side.
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