The Private Lender Podcast: Recent Episodes
Keith Baker
The show that shares practical advice and know-how for new and seasoned lenders: from private mortgages on single family houses to joint ventures on commercial projects, and beyond. Discover details about investment vehicles that you won’t find at your local bank or online broker. Listen and learn from private lenders and real estate investors, as well as from professionals and entrepreneurs as they share the details, strategies, and the insight that allows for successful and prosperous lending. This podcast is geared towards those who command and demand more from their investments. Now, get ready to increase your ROI !!!
When you buy a property, you want to be sure that it's free of any debt and lien. This is where title insurance comes in. You don't want to wake up one day, and your pool is torn down because it was built over a utility easement. Or the heir of the seller comes in and reclaims what is theirs. Title companies prevent these things from happening. Join your host, Keith Baker, and his guest, https://www.linkedin.com/in/rachel-luna-39a0436/ (Rachel Luna), on the importance of title insurance. Rachel is the Agency Development Manager of https://www.patriottitletx.com/ (Patriot Title). As The Texas Title Queen, she drops a ton of knowledge and discusses the parts of a title policy, what is covered, what is not covered, and why you need title insurance when you purchase a property. Learn the schedules of a title property and why title insurance is a must. If you're a lender, you better listen to this episode.
Know The History Of Your Property With Title Insurance With Rachel LunaThe Texas Title Queen Breaks It Down For Lender NationI would like to thank you for sharing your time with me. If you're looking for practical tips and advice on how to put the power of the banking system into your investment accounts, then you are in the right place. If you want to learn from my mistakes so that you can both avoid them and profit from them, then pull up a chair and pour yourself a drink, my friend, and take some notes because this show is for you. I'm dedicated to giving people, like you and me, the knowledge and confidence for successful and profitable private lending. In this episode, I sit down and talk with the Texas title queen, Rachel Luna from https://www.patriottitletx.com/ (Patriot Title Company), who has graciously agreed to come on this episode and drop a ton of knowledge around the topic of title insurance, what it covers, what is not covered and where to find things in the policy. Before we get to the heart of this episode, first, a little bit of housekeeping, number one, I'm about to lose my voice. The kids had a soccer tournament. They won the first two games and lost in the third. However, it was exciting. It was a blood pressure event. It was a good tournament. I’m proud of the kids but I shot my voice. I threw it out. Rather than waiting, I figured, “I'm going to make everybody suffer with me.” That's the first bit of housekeeping. The second bit of housekeeping is, have you joined the Private Lender Podcast Facebook group? If you haven't, why the hell not? Simply search in Facebook Groups for https://www.facebook.com/groups/674936429994760/ (Private Lender Podcast), click on Join. Answer a few questions to let me know that you are a private lender and not looking for deals or looking for money and not looking to boost up your groups, but going to help add value to the community. Answer those questions, I'll let you in and then let you get started. While you're at it, head on over to http://www.PrivateLenderAcademy.com (PrivateLenderAcademy.com) and click on Apply Now to learn more about putting the power of the banking system into your investment accounts or get some one-on-one time with me, I can answer your questions and show you my mistakes. That's http://www.PrivateLenderAcademy.com/apply (PrivateLenderAcademy.com/apply). The housekeeping is finished and now it's time to get to the heart of this episode. Our guest has been providing title insurance and escrow services for Houston area investors for about as long as I can remember. I caught up with Rachel Luna at the FlipCo Financial Meetup and was excited that she agreed to come on and talk about title insurance. For the simple reason, everyone, including me that says that you must have it, but very few people understand why you need it. I'm going to let Rachel answer that for you. I think you're going to enjoy this. She is dynamite. She is Miss Personality. She has a pistol, a load of fun, is very energetic, knowledgeable and smart. I'm going to...
Writing a book can help you attract private money lenders and motivated sellers so you could win the marketing game in real estate. Today’s guest, https://dealschasingyou.com/rei-book-writing-checklist/?ref=podcast&affiliate= (Max Keller), proves that. Max Keller is a real estate investor, best-selling author, and business coach. In this episode, he joins Keith Baker to discuss utilizing books as a lead generation technique and how to get prospective sellers to trust you so you could stand out among competitors. He also shares the two ways to get deals through hunting and trapping. He explains how he gets deals through the use of different methods giving them a network of people. Tune into this episode so you could have the opportunity to build great relationships and make your business grow too!
Listen to the podcast here:Utilizing Real Estate Books For Lead Generation And Beating Competition With Max KellerMax Keller Utilizes Books To Get Sellers To Know, Like And Trust HimI want to thank you for sharing your time with me. If you're looking for practical tips and advice on how to put the power of the banking system into your investment accounts, then you are in the right place but if you want to learn from my mistakes so that you can one, avoid them and two, profit from them, pull up a chair and pour yourself a drink because this show is for you. This show is dedicated to giving people like you and me the knowledge and the confidence for successful and profitable private lending, the most passive form of real estate investment known to man. [caption id="attachment_3186" align="alignleft" width="200"] Home To Home: The Step By Step Senior Housing Guide[/caption] In this episode, I sit down and talk with https://www.linkedin.com/in/max-keller-567760154/ (Max Keller), who’s up in the North Texas area, the Dallas-Fort Worth Metroplex. Max is using a very unusual strategy for finding his deals and that is to use books to get his sellers to know, like and trust him. Before we dive into the heart of this episode, I got to do a little housekeeping and need to ask you, have you joined the show’s Facebook group? Why the hell not? Simply go to Facebook Groups and search for https://www.facebook.com/groups/674936429994760/ (Private Lender Podcast). Answer a few quick questions so that I know you’re serious and can follow instructions and you will be let in. You’ll get to hobnob and mingle with private lenders from all over this great country of ours. We may be divided but it’s still a great country. If you want to get your private lending off the ground for possibly some opportunities to bounce a few ideas off of me or perhaps we could even go down the coaching road if you like, please go to http://www.PrivateLenderAcademy.com (PrivateLenderAcademy.com) and click on Apply Now. It's time to get down to the brass tacks of this episode. Max Keller was recommended to me by someone I held dear in the podcast industry. Julie Houston, thank you. She has helped me out in ways, mindset, technical, process, things that I wouldn’t think of. She hasn’t charged me a dime for it. All of her advice has been for free, maybe a lunch or two here or there. Considering the value that I’ve received from Julie, I’m in the deficits. Julie, thank you. A big shout out to you. Thank you for introducing me to Max. This has been a game changer in many ways for me. Thinking about this helps expand the mindset into what’s out there. I’m babbling already. It’s best to get to the interview, let Max discuss and describe how he uses books and how he’s helping his students to get some solid leads, generating some nice leads for some nice property acquisition. Let’s go ahead and jump into the interview with Max Keller. -- Lender Nation, I am pleased to have https://www.linkedin.com/in/max-keller-567760154/ (Max Keller) on the show, who was formerly a teacher and now is a full-time real estate investor but more importantly, he can teach you how to...
Is This The New Normal? Hello Private Lender nation and welcome to episode 137 of the Private Lender Podcast, I’m your host, Keith Baker and I’d like to thank you for sharing your time with me today. Love the show? Subscribe, rate, review, and share! http://privatelenderpodcast.com/blog/how-to-subscribe-rate-our-podcast-5-stars-on-itunes/ (Here’s How ») If you’re looking for practical tips and advice on how to put the power of the banking system into your investment accounts, then you are in the right place. But do you want to learn from my mistakes so you can both avoid and profit from them? Well then pull up a chair and pour yourself a drink, my friend. Because this podcast is just for you, as I am dedicated to giving people just like you and me the knowledge and confidence for successful and profitable Private Lending. In today’s episode, I will bore you and discuss some very recent conversations I had while on a trip to San Francisco and the Bay Area, and I heard some interesting insights from some friends of the show. But before we get to the heart of the matter, first I need to do a little housekeeping. 1 - Have you joined the Private Lender Podcast Facebook group? Well why not? Head over to the show notes for the link or simply search Facebook groups for the Private Lender Podcast. https://www.facebook.com/groups/674936429994760 (Private Lender Podcast Facebook Group) 2 – And, please head over to PrivateLenderAcademy.com and click on Apply Now to learn more about how to get your Private Lending off ground and for opportunities to receive coaching from me. http://privatelenderacademy.com/apply/ (Apply – Private Lender Academy) OK, the housekeeping is finished and now it’s time to get down to the brass tacks of today’s episode: Are we normal? I took a short trip and flew to San Francisco earlier in August and spent a few days catching up with some friends of the show as well as a few dear old friends who call the Bay Area home. And I caught an A’s game against the Rangers, so I’ve now ticked 3 Major League Ball parks off my bucket list. I’m glad I was able to take the trip before the government tries to lock us down again, which brings me to the question I have for you, dear listener: Are we in the new normal, or are we simply in a bubble in the housing market cycle? I won’t name any names yet as I haven’t’ asked whether I could mention names (you know, in case they are wrong) and I had the idea for today’s topic and wanted to get this episode recorded and distributed so here we go: One position I heard, especially in the case of the Austin, Texas market, is that we are in the new normal. Austin will mimic housing in the Bay Area historically speaking, which means high prices are here to stay (at least in the Austin area) and they will only continue to rise. Then, I heard the belief that we are long in the tooth for this market and a correction is coming – a very popular opinion that many investors share. Especially those investors who lived through 2008 and the mortgage crisis. In the case of the Houston area, I did a little reading and have found the following: Average house price up 14% 1 month of inventory (6 months is considered a stable market) 500,000 people move to TX every year Construction material shortage, lumber up 250% Days on Market are almost non-existent So, which side are you on? Are we in the new normal with prices continuing to increase? Or is there a correction looming? Connect with me on social media and let me know: https://www.facebook.com/PrivateLenderPodcast/ (Private Lender Podcast Facebook) https://www.linkedin.com/in/keith-baker-344944155/ (Keith Baker on LinkedIn) Or email me: keith@privatelenderpodcast.com. OK. Here’s the deal, I don’t charge money for this show, but there is a cost and I would be extremely grateful if you would help drive awareness to the show, to get the word out by leaving me an honest...
Most people flip houses, become a landlord, or purchase properties to get the most returns in real estate. But for https://www.georgesalas360.com/ (George Salas), he found an incredible opportunity in short-term rentals, where a lot of people don't even consider. He joins Keith Baker to delve into how rent arbitrage increased his ROI significantly. He shares how he acquires his financing and puts together ample funding to keep the ball rolling. George also explains how he deepens relationships with the people that he trains, eventually building joint ventures.
George Salas On Getting Long-Lasting Revenue Through Short-Term RentalsLearn How Rent Arbitrage Can Increase Your ROIIf you're a regular reader to this show, then you know that I do my best to keep the topics of the interviews either strictly private lending-related or at least interesting from a different investment or personal perspective. The topic of the episode is no different as guest http://www.GeorgeSalas360.com (George Salas) is flip and crushing it in the short-term rental space. I met him at a Mastermind in Key West and I'm happy that we connected. I got on the plane to fly to Key West. I did not want to go. It had extremely limiting beliefs and yet is one of the best things I've done. I love to know stories of innovators and how people pivot when times change or when they get bad, and given the recent COVID scamdemic and the current bubble and the retail housing market. It's a real disease. All that stuff is over 99% survival rate. It's a flipping scamdemic. We are in a bubble. I'm calling it. Greenspan said, "You can't see a bubble until you're beyond it or it's burst." I'm calling it a bubble. More than $50,000 above ask in the market is a bubble. You can bookmark this show and can come back to it and give me grief or cheer me on when I'm proven right. I couldn't think of a better time to introduce you to my guest and his business model. The best thing of all is that George Salas is crushing the short-term rental game right here in Houston, in H-Town, which makes my smile a little bit bigger. Let's go ahead and get down to the brass tacks of the show and straight to the interview with George Salas.
http://www.GeorgeSalas360.com (George), welcome to the show. Thank you very much, Keith. It is an absolute honor to be here. I'm looking forward to you to explain your business model. That is, you don't flip, landlord, own or finance but you do short-term rentals. I'm going to give you the floor. Tell us how you got into real estate, short-term rentals and the basic mechanics of your business. My journey started when I was six years old. I'm sitting in the living room of my parents' house. My mom and dad pulled my brother and me aside and said, "Guys, we need to talk to you. You're going to go to your grandma's. You're going to stay there for a little bit." This is from a city by the name of Lima in Peru, the capital. We moved to a small town. It was just my mom. It was an environment where I get to stand by my dad. We left that city into a small little town and then the town was 20,000 people. I didn't get to see my father for nine years but he came back again into my life. We were moving here to the US. I came when I was fifteen. I wouldn't get to say bye to him twice and it affected me my entire life until I realized that I didn't need to be better for my dad. I didn't need to be in a place I’m good enough because I felt I wasn't good enough. I felt that because my father was never a great provider. We moved here. All through my young 15, 18 to 20, I was a grocery stacker. I worked at Kmart. Then I got into the nightlife and I invested in a nightclub. I was in the nightlife for ten years. I was the number one top promoter in Houston for 7 or 8 years. [bctt tweet="Bad decisions aren't as bad if you learn from them. Turn everything around and make something completely drastic." username=""] All of a sudden, I had the...
Hello Private Lender Nation!!!! If you’re looking for practical tips and advice on how to put the power of the banking system into your investment accounts, then you are in the right place. But do you want to learn from my mistakes so you can both avoid and profit from them? Well then pull up a chair and pour yourself a drink, my friend. Because this podcast is just for you, as I am dedicated to giving people just like you and me the knowledge and confidence for successful and profitable Private Lending. In today’s episode, we will continue with our monthly lesson from the book by George Clason's the Richest Man in Babylon. Today’s lesson is the 5th cure for a small account balance, which is simply: Make your house a profitable investment, or in other words, own your own home. but before we get to the heart of the matter, first I need to do a little housekeeping. 1 - Have you joined the Private Lender Podcast Facebook group? Well why not? Head over to the show notes for the link or simply search Facebook groups for the Private Lender Podcast. https://www.facebook.com/groups/674936429994760 (Private Lender Podcast Facebook Group) 2 – And most important of all, the Private Lender Academy still needs some work before I introduce her to the world and therefore I’m departing from the original plan in hopes of getting the course to life. However, on August 17th at 7:30pm CST, I am holding a webinar/Facebook Live where I will begin to teach the principles of the academy. The purpose of the webinar is to get 10 committed people to opt-in to group coaching where I teach you everything I know about originating private loans. As a result of participating in the group coaching, you will help me refine the PLA and receive a free copy of the course once it is complete. I am looking for 10 students to form this focus group that will help refine the course over a 4-week period beginning in late August. So head over the www.PrivateLenderAcademy.com and click on Apply Now http://privatelenderacademy.com/apply/ (Apply) http://privatelenderacademy.com/apply/ (– Private Lender Academy) OK, the housekeeping is finished and now it’s time to get down to the brass tacks of today’s episode: the 5th cure for a lean account. And like so many lessons in life that we should heed, the principle is quite simple, but sometimes we humans seem to have trouble with the execution. Let’s get down to the brass tacks and listen to what Arkad tells his students: Make your house a profitable investment. A. K. A. - Own your Home "If a man sets aside none parts of his earnings upon which to live and enjoy life, and if any part of his nine parts can be turned into a profitable investment without detriment to his well-being, then so much fast will his treasures grow." So spoke Arkad to his class at their fifth lesson. "All too many of our men of Babylon do raise their families in unseemly quarters. They do pay to exacting landlords and liberal rents for rooms where their wives have not a spot to raise the blooms that gladden a woman's heart and their children have no place to play their games except in unclean alleys. "No man's family can fully enjoy life unless they do have a plot of ground wherein children can play in the clean earth and where the wife may raise not only blossoms but good rich herbs to feed her family. "To a man's heart, it brings gladness to eat the figs from his own trees and the grapes of his own vines. To own your own home and to have it a place he is proud to care for, puts confidence in his heart and greater effort behind all his endeavors. Therefore, I recommend that every man own the roof that shelters him and his family. "Nor is it beyond the ability of any well-intentioned man to own his own home. Has not our great king so widely extended the walls of Babylon that within them much land is now unused and may be purchased at sums most reasonable? ...
How does the state of our mind affect the way we make money decisions? You came to the right place to find out. Keith Baker’s guest today is https://www.linkedin.com/in/jonathandeyoe/ (Jonathan DeYoe), founder and CEO of https://mindful.money/ (Mindful Money). Jonathan explains to Keith Baker how mindfulness creates a space between the external stimulus and your response. It’s that moment of calm you need to make the right decisions based on facts instead of emotions. When you adapt mindfulness in your finances, you start making better decisions. How can you practice mindfulness? Tune in to find out!
Mindful Money: How To Make Better Money Decisions With Jonathan DeYoeInvesting In Your HappinessI'd like to thank you for sharing your time with me. If you're looking for practical tips and advice on how to put the power of the banking system into your investment accounts, then you are in the right place. If you want to learn from my mistakes so that you can both avoid and profit from them, then pull up a chair and pour yourself a drink because this show is just for you. I'm dedicated to giving people like you and me the knowledge and confidence for successful and profitable private lending. [caption id="attachment_3155" align="alignleft" width="194"] Mindful Money: Simple Practices for Reaching Your Financial Goals and Increasing Your Happiness Dividend[/caption] If you're looking to join a community of private lenders then head over to the https://www.facebook.com/groups/674936429994760/ (Private Lender Podcast) Facebook group to connect with other private lenders and to share experiences, stories and opinions. While you're at it, head on over to the http://www.privatelenderacademy.com (PrivateLenderAcademy.com) to learn more about the forthcoming course on private lending and click on Apply Now to register for pre-launch discounts and other goodies. I was a little skeptical when I first learned about our guest. I wasn't sure he'd be a good fit for the show at first because I didn't spend a whole lot of time digging too deep, but after speaking with him for a minute, I knew he had to be on the show so we booked it. I'm happy to share https://mindful.money/ (Jonathan DeYoe) with you and hopefully introduce you to him. As I've shared in previous episodes, I am on a bit of a mindfulness journey. I like to sign off wishing you mindfulness from every episode. Given that life has happened to me in the last few years, divorce, etc., I'm happy that someone has applied the mindfulness approach to money. As I look back, I wish I would have applied mindfulness years ago especially to money because at least in my case, with the relationship with my ex, money wasn't a huge issue but it was large enough. If we both had been mindful about it, maybe things would have been different, at least on the money front. I’m not saying I'd still be married but the awareness and the understanding would have been a lot better. Such an approach can eliminate a lot of the money pains and ill feelings that couples have. Let's go ahead and get down to the brass tacks of this episode and get straight to the interview with Jonathan DeYoe.
Lender nation, I am throwing a curveball to you because we're not going to talk about private lending and all but we will be talking about money. Our guest has an interesting approach to money, one that I certainly want to use this platform to get out into the world and more people to learn and that is mindfulness. Early on in my practice, unfortunately, mindfulness was not court-ordered for me so I'm doing this on my own little by little. https://mindful.money/ (Jonathan DeYoe), welcome to the show. I'm excited to be here, Keith. Jonathan has nothing but good reviews on Yelp and whatnot. He is in the Berkeley, San Francisco Bay Area if you want to get in touch with him. This whole mindfulness thing, I don't have the words but you do. This is what you do on a daily. Let's start with your practice, your...
The Fourth Law of GoldHello, Lender nation and welcome to Episode 133 of the Private Lender Podcast! I’m your host, Keith Baker and I’d like to thank you for sharing your time with me today. I hope everyone is enjoying their 4th of July observance the day this episode goes live, and to the other 194 countries not named the united states of America, then I hope you have a good Monday! Love the show? Subscribe, rate, review, and share! http://privatelenderpodcast.com/blog/how-to-subscribe-rate-our-podcast-5-stars-on-itunes/ (Here’s How ») If you’re looking for practical tips and advice on Private Lending and how to keep your money safe, then you are in the right place. But if you want to learn from my mistakes so you can both avoid and profit from them, well then pull up a chair and pour yourself a drink my friend, because this podcast is just for you! Today we continue with the lessons taken from the book The Richest Man in Babylon: the fourth law of wealth. This is but one old-world principle that has remained relevant and true through the centuries, no matter the currency, and no matter the political climate. But before we get to the brass tacks, I would like to perform the housekeeping: 1 - Have you joined the https://www.facebook.com/PrivateLenderPodcast/ (Private Lender Podcast Facebook group)? Well, why not? Head over to the show notes for the link or simply search Facebook groups for the Private Lender Podcast. https://www.facebook.com/PrivateLenderPodcast/ (Private Lender Podcast Facebook Group) 2 – And most important of all, the http://www.privatelenderacademy.com/ (Private Lender Academy) is launching in just a few weeks and if you would like to get on the list for pre-launch bonuses like discount codes, then head over to PrivateLenderAcademy.com and click on “Apply Now”: provide some background on your investing experience and goals http://privatelenderacademy.com/apply/ (Apply – Private Lender Academy) The Private Lender Academy is slated to launch after July 4th, 2021. OK, the housekeeping is finished and now it’s time to get down to the brass tacks of today’s episode: the 4th Law of Wealth (Gold). In the book, the Richest Man in Babylon, there are 7 cures for a lean purse, and 5 laws of Gold (wealth) and today we will discuss the 4th law of wealth, which is simply: “Gold slips away from the man who invests it in businesses or purposes with which he is not familiar, or which are not approved by those skilled in its keep.”“To the man who has gold, yet is not skilled in its handling, many uses for it appear most profitable. Too often these are fraught with the danger of loss, and if properly analyzed by wise men, show small possibility of profit. Therefore, the inexperienced owner of gold who trusts to his own judgement and invest it in businesses or purposes with which he is not familiar, too often find his judgement imperfect, and pays with his treasure for his inexperience. Wise, indeed, is he who invests his treasures under the advise of men skilled in the ways of gold.”The lesson here is simple: seek the advice from those who have a successful track record of investing theirs, and other people’s money, to help ensure your success. Gather opinions and seek counsel from proven investment strategies. Do not get caught up in the swell of a bubble market when “everyone is doing it” or “it’s so easy, why aren’t you doing it?” Do not bet your treasure on the shiny object. But rather seek friendship, fellowship, counsel, and advice from those skilled in successfully handling and investing money. Let them help guide you beyond the wolves and the hype of speculation. Remember, you’re net worth is equal to your network. No go out and find such people to help stay safe and invest with logic rather than emotion. Ok, the sermon is over. Thank you for listening. Here’s the deal, I don’t charge money for this show, but there is a cost and I would be extremely grateful if you would help drive...
Once you become a lender and you're looking for people to purchase your property, how do you find the buyer? How do you make it look affordable? How do you know which rules and regulations to follow? An RMLO or a residential mortgage loan originator will do just that. Learn from https://www.linkedin.com/in/sarah-n-montes-99918478/ (Sarah Montes) who is the President of https://www.texaspridelending.com/ (Texas Pride Lending) on why you need an RMLO. Joining Keith Baker, Sarah explains how an RMLO guides the lender on the payment process. Listen in today on how Texas Pride helps lenders in this regard.
Guiding The Lender: Sarah Montes On RMLOsI would like to thank you for sharing your time with me as well as your consideration. If you're seeking practical tips and advice on how to increase wealth without cheap banks or unpredictable Wall Street through private mortgage lending, then you are in the right place. If you want to learn from my mistakes so that you can both avoid and profit from them, then pull up a chair and pour yourself a drink because this show is for you. This episode has been more than four years in the making. It has got a bit of a story behind it. Before we get to that, I want to encourage you to join the https://www.facebook.com/groups/360119521502949 (Private Lender Podcast Group). It is a public group, but I personally vet the applicants to ensure that it truly remains a group of just us private lenders. After years of empty threats and promises, the Private Lender Academy is finally launching in July 2021. You have the opportunity to get in when the doors open as a founding member, which means you won't be charged full price and you'll receive founder pricing on additional courses in the future. Go to http://www.PrivateLenderAcademy.com (PrivateLenderAcademy.com) for more info. Click on that Apply Now, fill out some information, tell us a little bit about yourself, and you'll be on the list for the founding member. It is time to get down to the brass tacks of this episode. It's when my best borrower switched his business model from buying and converting into owner-financing notes using private lender money as the underlying lien. He streamlined his business and went more into a wholesaling model, which means he didn't need a private lender. He also went into a small apartment complex, which was way above what I had to offer. He did me a favor and introduced me to his friend, http://privatelenderpodcast.com/episodes/plp-094/ (Landon Rothstein), who has been on the show. I initially was Landon's private lender before coming as his partner in Asset REI in 2017. At that time, Landon was a student of https://1000houses.com/ (Mitch Stephen). He was looking to use my money as a first position and then wrap it with seller financing with an additional lien. He explained that we would use an originator to keep everything legal and above board. Since this came from Landon, I was skeptical and decided to investigate things myself. Ultimately, I came to the conclusion that Landon wasn't BS-ing me. He was indeed accurate, right, and correct. Before we put an owner-occupant inside a house with my money providing the lien, we used Texas Pride Lending, which took the end buyers' application, financial information, records, and everything that a bank or loan officer would take. They confirmed that the borrower could reasonably be expected to make the mortgage payments based on their finances, how the note was structured and the length of the note. It would be reasonable for the borrower to be expected to make these under the federal guidelines, Freddie Mac and Fannie Mae. It was during this process when I met our guest, Sarah Montes. She took care of everything and made the process extremely easy for me as a lender. If I had a question in the morning or afternoon, it was answered with the package, documents, or whatever was requested. The lender is quick and customer...
Hello Private Lender nation and welcome to episode 131 of the Private Lender Podcast, I’m your host, Keith Baker and I’d like to thank you for sharing your time and your ears with me today. Love the show? Subscribe, rate, review, and share! http://privatelenderpodcast.com/blog/how-to-subscribe-rate-our-podcast-5-stars-on-itunes/ (Here’s How ») If you’re seeking practical tips and advice on how to increase wealth without banks or wallstreet through private mortgage lending, then you are in the right place. But if you want to learn from my mistakes so you can both avoid and profit from them - well then pull up a chair and pour yourself a drink my friend, because this podcast is just for you! In today’s episode, we’ll go over 3 ways you can start lending with less than $50,000. But before we get to the heart of the matter, first I need to do a little housekeeping. 1 - Have you joined the Private Lender Podcast Facebook group? Well why not? Head over to the show notes for the link or simply search Facebook groups for the Private Lender Podcast. https://www.facebook.com/groups/674936429994760 (Private Lender Podcast Facebook Group) 2 – And most important of all, the Private Lender Academy is launching in just a few weeks and if you would like to get on the list for pre-launch bonuses like discount codes, then head over to PrivateLenderAcademy.com and click on “Apply Now”: provide some background on your investing experience and goals http://privatelenderacademy.com/apply/ (Apply – Private Lender Academy) The Private Lender Academy is slated to launch in mid-July, which is still after July 4th weekend, so I’m not a complete liar. Look, it’s a lot more than I thought it would be, but I will bring it across the finish line: come hell or high water. OK, the housekeeping is finished and now it’s time to get down to the brass tacks of today’s episode: 3 ways to lend with less than $30,000. 1 – REIT - Real Estate Investment Trust: A company that owns, operates, or finances income-producing properties Pay a minimum of 90% of taxable income in the form of shareholder dividends each year · Modeled after mutual funds – most publicly traded on public exchanges – provides liquidity · Do not provide much capital appreciation · Usually target a specific asset class/sector Multi-Family Commercial Mobile Phone Towers Hotels Data Centers Retail Timberland Warehouse Most are equity REITS Some are Mortgage REITS which lend to operators or purchase mortgage-backed securities 2 – Real Estate Fund Think - hard money loans on Single Family Residences: o Fix and Flip o Buy and Hold o Commercial/Multi-Family · You provide capital at an agreed interest rate · ~ 1 year minimum · Quarterly interest payments · ~ 90 notice to receive return of principle http://privatelenderpodcast.com/episodes/plp-043/ (Episode 43) with http://privatelenderpodcast.com/episodes/plp-043/ (Tom Berry) from Investor Loan Source. Great way to see due diligence (loan packages) while someone else does all the work 3 – Lend to Owner Finance investors Provide the purchase capital in the first position Your lien is “wrapped” by a second mortgage from your borrower to the end- buyer 3 – 5 years 8% Mitch Stephen...
The Fourth Cure for A Lean Account Balance Hello Private Lender nation and welcome to episode 130 of the Private Lender Podcast, I’m your host, Keith Baker and I’d like to thank you for sharing your time with me today. If you’re looking for practical tips and advice on how to keep your money safe as a Private Lender, then you are in the right place. But if you want to learn from my mistakes so you can avoid them, well then pull up a chair and pour yourself a drink my friend, because this podcast is just for you! In today’s episode, we will continue with our monthly lesson from the book the Richest Man in Babylon. Today’s lesson is the 4th cure for a lean account, but before we get to the heart of the matter, first I need to do a little housekeeping. 1 - Have you joined the Private Lender Podcast Facebook group? Well why not? Head over to the show notes for the link or simply search Facebook groups for the Private Lender Podcast. https://www.facebook.com/groups/674936429994760 (Private Lender Podcast Facebook Group) 2 – And most important of all, the Private Lender Academy is launching in just a few weeks and if you would like to get on the list for pre-launch bonuses like discount codes, then head over to PrivateLenderAcademy.com and click on “Apply Now”: provide some background on your investing experience and goals http://privatelenderacademy.com/apply/ (Apply – Private Lender Academy) The Private Lender Academy is slated to launch after July 4th weekend! OK, the housekeeping is finished and now it’s time to get down to the brass tacks of today’s episode: the 4th cure for a lean account. And like so many lessons in life that we should heed, the principle is quite simple, but we humans seem to have trouble with the execution. The 4th cure for a lean purse points precisely to the first Core Value of a Private Lender: ROI1 - Return of Investment. Let’s get to it, and listen to what Arkad tells his students: “Misfortune loves a shining mark. Gold in a man’s purse must be guarded with firmness, else it be lost. Thus it is wise that we must first secure small amounts and learn to protect them before the Gods entrust us with larger ones. Every owner of gold is tempted by opportunities whereby it would seem that he could make large sums by its investment in most plausible projects. Often friends and relatives are eagerly entering such investment and urge him to follow. The first sound principle of investment is security for your principle (Return OF Investment). Is it wise to be intrigued by larger earnings when your principle could be lost? I say not. The penalty of risk is probable loss. Study carefully, before parting your money, each assurance that it may be safely reclaimed. Do not be misled by your own romantic desires to make wealth rapidly. Before you loan it to any man assure yourself of his ability to repay and his reputation for doing so, that you may not unwittingly be making him a present of your hard-earned money. Before you entrust it as an investment in any field acquaint yourself with the dangers which may threaten it. My own first investment was a tragedy to me at the time. The guarded savings of one year did I entrust to a brickmaster who was traveling over the far seas and in the city of Tyre agreed to buy for me the rare jewels of the Phoenicians. These we would sell upon his return and divide the profits. The Phoenicians were scoundrels and sold him bits of glass. My money was lost. Today, my training would show me at once the mistake I made of entrusting a brickmaster to buy jewels. Therefore, I advise you from the wisdom of my experiences: do to be too confident in your own wisdom by entrusting your wealth to the possible pitfalls of investments. It is by far better to consult the wisdom of those experienced in handling money for profit. Such advice is freely given...
Looking back at history is always a great way to discern how we got into the present. Joining Keith Baker to reflect on the previous market cycles of real estate is https://jillunderwood.com/ (Jill Underwood). Together, they discuss the implications of the different crises and crashes the country has faced. Jill explains how the platforms of US Presidents directly affect the growth - or decline - of the real estate market. She details how the nation's debt plays a role in keeping rates low, which is pretty clear with today’s pandemic-hit society. The two also discuss the new tax credit policy rolled out by the Federal Reserve System and the right approach to these free money situations.
Jill Underwood On How Various Market Cycles Of The Past Shaped Today's Real EstateJill Underwood Discusses The Current Market Conditions And Compares Them To Previous CyclesI'd like to thank you for sharing your time with me. If you're looking for practical tips and advice on private lending and how to keep your money safe, then you are in the right place. If you want to learn from my mistakes so that you can both avoid them and profit from them, pull up a chair and pour yourself a drink, get a notepad and a pencil, take some notes because this show is for you. I'm dedicated to giving people like you and me the knowledge and confidence for successful and profitable private lending. If you're looking to join a community of private lenders, then head over to the show's Facebook group to connect with other private lenders, to share experiences, stories, and opinions that are not political, sexual, or religious. Simply go to Facebook groups and search https://www.facebook.com/groups/360119521502949 (Private Lender Podcast Group). I hope everyone is doing well since summer has officially begun. We are into the month of June 2021, the back end of the second quarter. There's a lot of fun stuff coming out. The Private Lender Academy is going to launch in July 2021. Stay tuned to http://www.PrivateLenderAcademy.com (PrivateLenderAcademy.com) for more information on that. I'm looking forward July 6th, 2021, July 7th, 2021 launch date. Go to http://www.PrivateLenderAcademy.com/apply (PrivateLenderAcademy.com/apply) to go ahead and get on the list for your chance to get some goodies like discounts or pop-up Facebook coaching calls. You will be able to participate via Facebook. You'll have to come in through Zoom. Get on the list for those early-bird discounts and goodies. Before we get to the brass tacks of this episode, I wanted to say that I have not had a retail mortgage loan officer on the show yet on purpose. One has been on my list but I wanted someone that could bring a little more. It's not that I haven't been approached. I have several friends that are loan officers but unfortunately, I didn't feel that anyone clicked or stood out as someone who could provide something different and unique to the audience here. This episode’s guest is different because I sought her out, asked her to come on this episode, and share her experience with us for two reasons. One is her driven spirit and can-do attitude. She'll find a way. She'll figure it out. No problem is too big. I liked that. Also, her experience. She has so much experience with several market cycles. Our guest has been in the mortgage industry since she was 21 years old. She began as a receptionist, quickly rose through the ranks and became a loan officer. She's been through and survived the savings and loan crisis that started in 1986 and went into the 1990s, the dot-com bubble of 2000, and the Great Recession or global financial crisis of 2008. She didn't just survive these. She thrived through them. Let's get to the heart of the matter and to the interview with https://jillunderwood.com/ (Jill Underwood).
Please help me welcome Ms. https://jillunderwood.com/ (Jill Underwood) to the show. Jill, welcome. Thank you. I'm so happy to be here. I'm excited.
Hello Private Lender nation and welcome to episode 128 of the Private Lender Podcast, I’m your host, Keith Baker and I’d like to thank you for sharing your time with me today. Subscribe, rate, review, and share! http://privatelenderpodcast.com/blog/how-to-subscribe-rate-our-podcast-5-stars-on-itunes/ (Here’s How ») If you’re looking for practical tips and advice on Private Lending and how to keep your money safe as a Private Lender, then you are in the right place. But if you want to learn from my mistakes so you can avoid them, well then pull up a chair and pour yourself a drink my friend, because this podcast is just for you! Today will be another quick episode, but I give you full permission to get off the treadmill or elliptical as soon as this episode concludes in just a few minutes. But before we get to the heart of the matter, first I need to do a little housekeeping: Join the https://www.facebook.com/groups/674936429994760 (Private Lender Podcast Facebook Group) Make sure you visit http://privatelenderacademy.com/ (www.PrivateLenderAcademy.com) to learn more and sign-up for pre-launch bonuses like group coaching calls and discounts. Today’s episode is airing on Memorial Day 2021, and as such it is in honor of those who perished while serving this great country of ours. But this episode is also in honor of the family members that were left behind, as well as the survivors who continue to battle years after their service is over. So in the honor of all those mentioned above, I would like to read The Genius of the Crowd, by Charles Bukowski "there is enough treachery, hatred violence absurdity in the average human being to supply any given army on any given day
and the best at murder are those who preach against it and the best at hate are those who preach love and the best at war finally are those who preach peace
those who preach god, need god those who preach peace do not have peace those who preach peace do not have love beware the preachers beware the knowers beware those who are always reading books beware those who either detest poverty or are proud of it beware those quick to praise for they need praise in return beware those who are quick to censor they are afraid of what they do not know beware those who seek constant crowds for they are nothing alone beware the average man the average woman beware their love, their love is average seeks average
but there is genius in their hatred there is enough genius in their hatred to kill you to kill anybody not wanting solitude not understanding solitude they will attempt to destroy anything that differs from their own not being able to create art they will not understand art they will consider their failure as creators only as a failure of the world not being able to love fully they will believe your love incomplete and then they will hate you and their hatred will be perfect
like a shining diamond like a knife like a mountain like a tiger like hemlock
their finest art" OK. Here’s the deal, I don’t charge money for this show, but there is a cost and I would be extremely grateful if you would help drive awareness to the show, to get the word out by leaving me an honest rating and review over at iTunes, Google Podcast or whatever platform you are using to hear my voice. It doesn’t take that long and it’s a small price for the value I try to provide. That’s gonna do it for Episode 128 and just a few final thoughts: 1 – Join the https://www.facebook.com/groups/674936429994760 (Private Lender Podcast Facebook Group) to connect, learn, be inspired and interact in the discussions 2 - Remember, the http://privatelenderacademy.com/ (www.PrivateLenderAcademy.com) will launch in July 2021. Head over to http://privatelenderacademy.com/ (www.PrivateLenderAcademy.com) for more...
If you’re looking for practical tips and advice on Private Lending and how to keep your money safe as a Private Lender, then you are in the right place. But if you want to learn from my mistakes so you can avoid them, well then pull up a chair and pour yourself a drink my friend, because this podcast is just for you! In today’s episode, we will continue to explore the lessons found in the book “The Richest Man in Babylon”. Today we will be discussing the 3rd Law of Wealth. Today will be another quick episode, but I give you full permission to get off the treadmill or elliptical as soon as this episode concludes in just a few minutes. https://www.facebook.com/PrivateLenderPodcast (PLP Facebook group: Private Lender Podcast (public)) The Private Lender Academy is launching in July. Go to the new website for more information and to sign up for early-bird discounts, group coaching calls, and other pre-launch bonuses. www.PrivateLenderAcademy.com Today’s topic is another lesson from the Richest Man in Babylon written by George Samuel Clason. You can go back and catch up on the first four installments in: http://privatelenderpodcast.com/episodes/privatelenderpodcastcomepisodesplp-114/ (Episode 114:) First Cure for a lean account – save 10% of everything you earn for the future http://privatelenderpodcast.com/episodes/plp-116/ (Episode 116: ) First Law of Wealth - Wealth comes to those who reserve AT LEAST 10% of their total earnings towards building their future financial independence/fortune. http://privatelenderpodcast.com/episodes/plp-118-defense-wins-championships/ (Episode 118:) Second cure for a lean account – control thy expenses http://privatelenderpodcast.com/episodes/plp-120/ (Episode 120:) Second Law of Wealth - “work hard for your money, but then make your money work harder for you http://privatelenderpodcast.com/episodes/plp-123/ (Episode 123:) Compound Interest the 8th wonder of the world Today is the sixth installment in which we will be discussing the 3rd Law of Gold (wealth). And like so many lessons in life that we should heed, the principle is quite simple, but we humans seem to have trouble with the execution. Let’s get down to the Brass Tacks of this Episode and discuss the 3rd Law of Wealth, which state: Gold clings to the protection of the cautious owner who invests it under the advice of men wise in its handling.And then the book goes on to say: “Gold, indeed, clings to the cautious owner, even as it flees the careless owner. The man who seeks the advice of men wise in the handling of gold soon learns not to jeopardize his treasure, but to preserve in safety and to enjoy in contentment its consistent increase”If you follow the lesson sequence from the book, you are saving 10% of your income to invest, you are controlling your expenses – living below your means, looking to make your money work hard for you and now we come to seek advice from people who are wise in the handling of money: People who know who to Protect Money (Return Of Investment) and people who know how to make it multiply (Return On Investment). Those just happen to be Private Lender No. 1 and 2 Core Value Rodan (the spear maker) visits Mathon – a seller of jewelry and fine fabrics, also the gold lender of Babylon. “Seek to associate yourself with men and enterprises whose success is established so that your money may earn liberally under their skillful use and be guarded safely by their wisdom and experience” · Loan to flippers to flip · Loan to landlords to accumulate rentals · Make acquisition/bridge loans to owner finance sellers · I like to look for grey hair, but I have and will continue to lend to experienced youth...
Buying a new home is truly exciting, but every owner dreads one thing: debts. Most homeowners who want to get their hands on equity contracts turn to credit or reverse mortgages when acquiring a new property. Unfortunately, these only push them deeper into debt. Thankfully, https://www.linkedin.com/in/mattsullivanco/ (Matthew Sullivan) found a solution to this problem while boosting property ownership. Joining Keith Baker, he explains their work at https://www.quantmre.com/ (QuantmRE) that gives homeowners access to a portion of their home equity. Therefore, they are not only saved from debt but also tedious monthly payments and interest. Keith explains how this helps homeowners more than just saving money, innovating real estate transactions today.
Avoiding Huge Debts In Your Equity Contracts With Matthew SullivanHow QuantmRE Boosts Property OwnershipThis is the only place to be if you're looking for practical tips and advice on private lending and how to keep your money safe. If you want to learn from my mistakes so that you can both avoid and profit from them, then pull up a chair and pour yourself a drink because this show is designed just for you. It's dedicated to giving people like you and me the knowledge and confidence to participate in the most passive form of real estate investing there is, which so happens to be private lending. If you're looking for a shortcut to go ahead and get started private lending, then head over to http://www.privatelenderpodcast.com/ink/ (PrivateLenderPodcast.com/ink) to learn how you can put your money to work for you by investing in real estate back loans right here in the Houston area. Also, make sure to join the show's Facebook group to connect with other private lenders and to be a part of the growing community. You can search Facebook for https://www.facebook.com/PrivateLenderPodcast/ (Private Lender Podcast) group. On past episodes, we have discussed that 95% or more of my private lending is done out of my self-directed IRA, but there are other ways to get money to loan out that belongs to you without borrowing it from somebody. You can borrow from yourself. For example, you can borrow from your life insurance policy. Certain whole life policies have cash values you can borrow from and arbitrage the interest. The same thing with a home equity line of credit or a home equity loan. If you go to Bank of America and borrow money for 3%, yet you can loan it back out in six-month intervals to flippers for 13% or 12 points. You've arbitraged that 3, 4, to 12 so you're making 8% of that money even after you pay off the loan. It's a pretty neat deal. Our guest has a very interesting take on the same thing. His company provides homeowners a contract on that equity that they don't have to pay back, except when the house is sold. It's like a home equity line. You're giving up a certain percentage of your equity for cash now that will be realized later on. I'm probably not describing it very well. Why don't we go ahead and get down to the brass tacks of this episode and go straight to the interview with https://launch.quantmre.com/ (Matthew Sullivan)?
I have a very special guest with a very interesting topic. Please welcome https://launch.quantmre.com/ (Matthew Sullivan) to the show. Matthew, welcome aboard. Thanks for coming on. Keith, thank you for having me on. I can tell you're from East Texas. Why don't you tell us a little bit about your accent there? Where are you from? Alabama. I'm originally from outside of London in England. We can't call it Europe anymore because it's not. I moved over here a few years ago. I landed in Orange County and moved to Salt Lake City in Utah. I find the blazing daily sunshine of California far too decent. I felt I needed to get cold again. I might be heading back to California pretty quickly. [bctt tweet="#NeverTrustAlwaysVerify - remember you must perform your own due diligence prior to...
Because of COVID-19, those in the real estate industry had to pivot in a huge way to survive and find ways to thrive with the ongoing deurbanization. Keith Baker explores how people in this sector hone their strategies, particularly in private lending, by sitting with https://www.linkedin.com/in/kayla-wojcik-b4525188/ (Kayla Wojcik). She explains their work at https://flipcofinancial.com/ (FlipCo Financial), a team of forward-thinking individuals in the real estate investing sector focused on bringing a better financing product to the Houston market and soon nationally. She dives deep into the type of loans they offer, why they don't charge appraisal fees, what a typical bridge loan looks like, and their most common borrowers. Kayla also shares their strategy when it comes to bread and butter houses, which experienced a huge decrease in February.
Private Lending With FlipCo Financial And Kayla WojcikBringing Better Financing Products To The Houston MarketI'd like to thank you for sharing your time with me. If you're looking for practical tips and advice on private lending and how to keep your money safe, then you are in the right place. If you want to learn from my mistakes so that you can both avoid and profit from them, pull up a chair and pour yourself a drink because this show is for you. This show is dedicated to giving people like you and I the knowledge and the confidence to participate in the most passive form of real estate investing known to man, private lending. If you're looking for a shortcut to begin private lending, then head over to the http://www.PrivateLenderPodcast.com/Ink (PrivateLenderPodcast.com/Ink) to learn how you can put your money to work for you by investing in real estate backed loans right here in the Houston area with my friend, Paul Lamnatos over at Blink Lending. Make sure to join the show's https://www.Facebook.com/PrivateLenderPodcast/ (Facebook Group) in order to connect with other private lenders and to be part of the ever-growing community. I'm excited to get to the interview with our guest, Kayla Wojcik, who's the Founder and Director of Sales and Operations at http://www.FlipcoFinancial.com/ (FlipCo Financial), which opened their doors and started lending in November 2020. FlipCo is a team of forward-thinking individuals in the single-family real estate investing sector focused on bringing a better financing product to the Houston market and nationally. What makes FlipCo private lender a little different is they were funded and started with one person's capital who wanted to put it to work or a handful of it. It was a private capital that was put to work just like me. The Angel investor that started it had a lot more money to get started with first and was smart enough to hire Kayla to run the business for him. Let's get down to the brass tacks of the show and listen to the interview with Kayla Wojcik as she discusses her lending criteria.
I'm honored to have Kayla Wojcik from http://www.FlipCoFinancial.com (FlipCo Financial). Welcome, Kayla. Thanks for having me. Thanks for coming on. You have an interesting story and background that I'm a fan of. You're in Houston area providing flips and money for investments. Let's start back, not the very beginning but how did you get into the real estate space. Tell us a little bit about yourself. A little towards the background around eighteen years old, I worked for an attorney. He wanted to get into the tax foreclosure market. He would throw down the list on my desk. He would say, "I need you to circle the ones that you like." He didn't give me any direction. "I'm going to need you to go knock on those guys' doors and offer them whatever amount I tell you for those deals." I did. I went out there. I door knocked a few times. I got a lot of door slams and people all around not answering. It was the good old-school way of doing it. It scared the crap out of me. That's a lot for someone so young who doesn't know...
Hello Private Lender nation and welcome to episode 123 of the Private Lender Podcast, I’m your host, Keith Baker and I’d like to thank you for sharing your time with me today. If you’re looking for practical tips and advice on Private Lending and how to keep your money safe as a Private Lender, then you are in the right place. But if you want to learn from my mistakes so you can avoid them, well then pull up a chair and pour yourself a drink my friend, because this podcast is just for you! If you’re looking for practical tips and advice on Private Lending and how to keep your money safe as a Private Lender, then you are in the right place. But if you want to learn from my mistakes so you can avoid them, well then pull up a chair and pour yourself a drink my friend, because this podcast is just for you! Before I jump into today’s episode, I want to give a shout-out to Blake who sat next to me on a flight to Nashville recently. He’s a young man who is leaving the world of commercial real estate to go back to school to follow his passion. And he has a great outlook on money and not wasting it just because you have it. Blake, hold on to both your passion and your outlook on money and wealth – they will serve you well and I wish you all the best! In today’s episode, we will continue to explore the lessons found in the book “The Richest Man in Babylon”. Today we will be discussing the 3rd cure for a lean account: Make your money multiply with compound interest. But first, a little housekeeping. . . . . https://www.facebook.com/groups/674936429994760 (The Private Lender Podcast Facebook Group) http://privatelenderpodcast.com/ink/ (Click the Easy button below to begin your Private Lending journey. . . ) Let's get down to the Brass Tacks Today’s topic is another lesson from the Richest Man in Babylon written by George Samuel Clason. Today is the fifth installment where we will be discussing the 3rd cure for a lean purse, or as I like to think about it, a cure for a low account balance. And like so many lessons in life that we should heed, the principle is quite simple, but we humans seem to have trouble with the execution. If you would like, you can go back and catch up on the first four installments in the following episodes: http://privatelenderpodcast.com/episodes/privatelenderpodcastcomepisodesplp-114/ (Episode 114): First Cure for a lean account – save 10% of everything you earn for the future http://privatelenderpodcast.com/episodes/plp-116/ (Episode 116:) First Law of Wealth - Wealth comes to those who reserve AT LEAST 10% of their total earnings towards building their future financial independence/fortune. http://privatelenderpodcast.com/episodes/plp-118-defense-wins-championships/ (Episode 118): Second cure for a lean account – control thy expenses http://privatelenderpodcast.com/episodes/plp-120/ (Episode 120): Second Law of Wealth - “work hard for your money, but then make your money work harder for you So, let’s discuss the 3rd cure for a lean account So if you follow the lesson sequence from the book, you are beginning to increase your account value- and this is no doubt very satisfying to see it grow. However, if your money is in a savings account then you are not earning very much. According to Bankrate.com, at the end of March 2021, the national average for savings accounts was 0.07%. While earning cash flow and saving a portion of it is but the first step to generating wealth, the 3rd cure is to put each dollar that you have saved to work for you so that it will generate more money and wealth. Then, take the earnings and add them back into the account such that your earning will compound. I am a firm believer that this process should begin as soon we begin to earn money and should continue until the day we leave this earth. This is the essence of compound interest. For simple...
Many people believe that achieving your goals is the epitome of success. However, what makes it more worthwhile is gaining personal growth along the way. Multifamily master https://rodkhleif.com/ (Rod Khleif) joins Keith Baker to tell his inspiring story of finding success and failure in real estate, teaching him to live larger than life and become strong whatever happens. He shares how writing down your specific goals helps a lot in gearing up for the challenges of life and how the feeling of gratitude allows you to manifest every goal you may have. Above all, Rod talks about finding a high level of self-fulfillment in giving back to society, sharing how he found a deeper purpose in feeding families every time the holiday season comes.
Rod Khleif: Why Achieving Personal Growth Is More Important Than Goal-SettingI Finally Got To Interview Rod Khleif!I’m pumped up for this interview with https://rodkhleif.com/ (Rod Khleif). He is a multiple business owner and philanthropist who is passionate about real estate, business and giving back. As one of the country’s top business, real estate and peak performance luminaries, Rod has owned over 2,000 homes and apartment buildings and has built over 24 businesses in his 40-year business career, several of which have been worth tens of millions of dollars. That’s just a few of the reasons I sought out Rod to be on the show. As you read on, you’ll understand why. Out of 120-plus episodes, this is the episode in which I say the least. Rod is captivating and inspirational, at least for me. I sat back and started taking notes because I forgot that I was conducting an interview. Rod’s podcast, https://rodkhleif.com/Lifetime-Cashflow-Podcast/ (The Lifetime CashFlow Through Real Estate) is one of the first shows I listened to way back years ago. It inspired me to do my own. His show inspired me to also begin seeking knowledge and to understand multifamily investing, which is Rod’s specialty. Let’s go ahead and get down to the brass text of this show and to the interview with Rod Khleif.
It’s my distinct honor to welcome https://rodkhleif.com/ (Mr. Rod Khleif) to the show. Rod, welcome. Thanks. Let’s have some fun, Keith. I know full well who you are. I want my audience to know who you are. I listened to Rod’s podcast years ago as I’m coming up in my morning commute and it inspired me to do my show. Rod’s podcast is https://rodkhleif.com/Lifetime-Cashflow-Podcast/ (The Lifetime CashFlow Through Real Estate). There’s a lot of great information there. I’m excited and nervous. Rod, thank you so much. You honor me by coming on here. Thank you for your kind words. That means a lot to me. For those of you that don’t know who I am, let me give you a little background on me and a story because it might help and inspire you. I immigrated to this country when I was six years old. I was born in the Netherlands, in Holland, wooden shoes and windmills. We ended up in Denver, Colorado. We didn’t have much. I worked close in the Goodwill and the Salvation Army all the way through junior high school until I lied about my age to work at Burger King when I was fourteen, so I could buy my clothes. I remember growing up, we ate expired food and drank powdered milk because that’s all we could afford. Luckily, my mom had an incredible work ethic. She babysat kids so we’d have enough money to eat and have a decent life. She was a bit of an entrepreneur as well. She invested in the stock market with her babysitting money. She also bought the house across the street from us when I was about fourteen. When I was seventeen, three years later, she told me she’d made $20,000 in her sleep. I’m like, “You made $20,000, it went up in value and you didn’t do anything? Forget college. I’m getting into real estate.” I became a real estate broker when I turned eighteen. I’m an agent. I was a broker, which you could do back then with education. Now they got smart and you...
Greetings from the laughingstock of the professional sports world – Houston, TX. And welcome to episode 121 of the Private Lender Podcast, I’m your host, Keith Baker and I’d like to thank you for sharing your time with me today. If you’re looking for practical tips and advice on Private Lending and how to keep your money safe, then you are in the right place. But if you want to learn from my mistakes so you can both avoid and profit from them, well then pull up a chair and pour yourself a stiff drink my friend, because this podcast is just for you! The PLP is dedicated to giving people just like you and me the knowledge and confidence to participate in the most passive form of real estate investing known to man: Private Lending. And if you are looking for a shortcut to begin Private Lending then head over to http://privatelenderpodcast.com/ink/ (PrivateLenderPodcast.com/ink) to learn how you can put your money to work for you by investing in private and hard money loans around Houston. Also, make sure to join the https://www.facebook.com/groups/674936429994760 (Private Lender Podcast Facebook group) to connect with other private lenders and be a part of the community. Are you ready to get down to the brass tacks of today’s episode? – Cuz I know I am! Today’s topic is about lending to an entity instead of a person, and what you need to do in order to protect your money. So let’s dive in, shall we??!! A retail loan to an individual Retail bank (as well as SDIRA custodian) will require the borrower’s name, address, contact info, driver’s license, and social security number. In the case of a loan or mortgage, the borrower’s social security number is important for 2 reasons: allows the lender to perform a credit report to help underwrite the loan allows the lender to report the borrower to credit bureaus in case of default or delinquency. This is how banks can keep some of the borrower’s skin in the game with a conventional or FHA mortgage – especially in a low or no money down scenario. The same principles apply to Private Lending. While I don’t actually pull a credit report for a borrower, I require the same info as the bank, especially the social security number. If my borrower defaults, I can seek legal remedies against them with their social security number in civil court. And I can put a bruise on their credit report if I decide it is worth it to pay the money. Now let’s look at what happens when Fraudulent House Flippers, LLC applies for a loan at the bank: First off, besides requiring 20% of the purchase price at the closing table for an investment property purchase, they want to see the formation documents for the entity and who are the members and managers, and the LLC’s EIN or federal tax ID number, bank statements, etc. They also require a personal guarantee, unless your LLC has a substantial amount of money deposited with said bank. Why would they require a personal guarantee for a business loan? That’s a good question. But a better question is why should every Private Lender require a personal guarantee when lending to an entity such as an LLC? I’ll walk you through the answer because it can ruin your day. Let’s say I loan 100k to Fraudulent House Flippers, LLC to purchase and renovate a property. For three months I am paid as agreed, but in month 4 Fraudulent House Flippers LLC stops paying their note, and after the loan goes into default, let’s assume two things happen: 1 – I foreclose on the property – a hassle I don’t want but have accepted the risk 2 – Fraudulent House Flippers, LLC dissolves the entity and now you don’t have anyone to sue in civil court or receive a deficiency judgment. However, if you require a personal guarantee from every member of the LLC, you now have a means by which you ensure...
The Second Law of Wealth Hello Lender nation and welcome to episode 120 of the Private Lender Podcast! I’m your host, Keith Baker and I’d like to thank you for sharing your time with me today. If you’re looking for practical tips and advice on Private Lending and how to keep your money safe, then you are in the right place. But if you want to learn from my mistakes so you can both avoid and profit from them, well then pull up a chair and pour yourself a drink my friend, because this podcast is just for you! In today’s episode, we continue the lessons taken from the book The Richest Man in Babylon: the second law of Gold. These are old-world principles that have remained relevant and true through the centuries, no matter the currency, and no matter the politics. But before we dive into the Second Law of Gold, I need to perform a little housekeeping: Private Lender Podcast Facebook group https://www.facebook.com/groups/674936429994760 (CLICK HERE) https://www.facebook.com/groups/674936429994760 () 2 – Are you interested in doing your own Private Lending but feel like you need a little help to get you through your first handful of loans? Then head over to PLP.com/INK and learn how you can get started in lending with my friend Paul over at Ink lending and fund their loans on properties right here in the Houston area, in one of the most lender-friendly states in this great country of ours! That’s right, Paul Lamnatos and his team vet the deals, underwrite the loan, and put your money to work for you. They even service the loan on your behalf - that’s about as passive as you can get. CLICK HERE or on the image below to learn more!!
“Let’s get down to the Brass Tacks” In the book, the RMiB, there are 7 cures for a lean purse, and 5 laws of Gold and today we will discuss the 2nd law of gold, which is simply: Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field. “Gold, indeed, is a willing worker. It is ever eager to multiply when opportunity presents itself. To every man who has a store of gold set aside, opportunity comes for its most profitable use. As the years pass, it multiplies itself in surprising fashion.” There is an old cliché that says: “work hard for your money, but then make your money work harder for you”. I like to think along the lines of the flocks in the field or even raising children. There is usually a great deal of labor to bring your savings to life (see what I did there?) and to give your money the ability to multiply and bring more savings into the world and into your account. Or your savings are like widgets or little robots that make money and produce more robots to make you money – but you have to oversee all of this. This goes back to you taking control of you money, your finances, your future, your family legacy. Don’t let complacency creep up on you, and never trust your money is working for you – you must verify that it is working hard for you. You are shepherd of your money – a steward if you like You are the CEO of your money – act like it!! Work hard for your money but make your money work harder for you! Teach this mantra to your children. Teach them how to raise their wealth, and the position of their family. Ok, my sermon is over. Thank you for listening. Here’s the deal, I don’t charge money for this show, but there is a cost and I would be extremely grateful if you would help drive awareness to the show, to get the word out by leaving me an honest rating and review over at Google Podcast, Spotify or whatever platform you are using to hear my voice. But it would mean the world to me if you could leave an honest rating and review over at iTunes because it's apple and they're still the benchmark. It doesn’t take that...
Hello Lender nation and welcome to episode 119 of the Private Lender Podcast, I’m your host, Keith Baker and I’d like to thank you for sharing your time with me today. If you’re looking for practical tips and advice on Private Lending and how to keep your money safe as a Private Lender, then you are in the right place. But if you want to learn from my mistakes so you can avoid them, well then pull up a chair and pour yourself a drink my friend, because this podcast is just for you! In today’s episode, we will cover a few items of due diligence every Private Lender should perform if they do not utilize the services of an escrow or loan servicing company. But before we launch full speed into today’s episode, I need to perform a little housekeeping of my own. Guys, I have not been producing much content lately. I mean, I’ve been quiet over the last 12 months - I didn’t produce one episode in February of 2021. I could blame a lot of things such as Covid, kids, divorce, death in the family, additional family drama, anxiety, depressive episodes and let’s not forget Texas became an ice cube for a few days recently. But the truth is this: I chose not to produce episodes, or content, or the Private Lender Academy that I’ve been threatening you with, since forever. I didn’t consciously choose NOT to do anything, but I now see that I chose to stay with the familiar feeling of procrastination due to a failed sense of perfectionism. Meaning I chose to stay in my comfort zone and watch the world go by as I wondered why I wasn’t making any progress toward my goals. Well, I hope I can say I’ve finally gotten off my ass and put that mindset behind me. So let’s gets going and do some housekeeping: PLP Facebook group: Private Lender Podcast (public) https://www.facebook.com/groups/674936429994760 (https://www.facebook.com/groups/674936429994760) Are you interested in doing your own Private Lending but feel like you need a little help to get you through your first handful of loans? Then head over to PrivateLenderPodcast.com/ink and learn how you can get started in lending with my friend Paul over at Ink lending and fund their loans on properties right here in the Houston area, in one of the most lender-friendly states in this great country of ours! That’s right, Paul Lamnatos and his team vet the deals, underwrite the loan, and put your money to work for you. They even service the loan on your behalf - that’s about as passive as you can get If you would like to learn more go to http://privatelenderpodcast.com/wp-admin/www.PrivateLenderPodcast.com/ink (PrivateLenderPodcast.com/ink) Ok, let's get down to the brass tacks - t is now March, and time for us Private Lenders to perform a little due diligence. 1- Did you send out 1098’s or mortgage interest statements in January? 2- Were the property taxes paid by the end of January? Public record, so you can confirm this via the web in most counties in the US. 3- Insurance premiums paid?: a. Property b. Windstorm c. Flood d. Seismic 4- HOA dues paid? The 4 previous points are performed on your behalf if you use an escrow or loan servicing company. This is why I suggest as a private lender you should utilize these services because they make your life easier and the borrower pays for the service! It is a condition of retail mortgages and all my Private Loans that the borrower stays current and pays the insurance premiums and taxes. If your borrower is not paying these on time it could mean they are in trouble or quickly arriving at trouble, or perhaps cashflow is being delayed. Your job is not to ask “why?” 5 - The last thing I like to
"let thy motto be 100% of appreciated value demanded for each coin spent" Click here for the Private Lender Podcast Facebook Group
Hello Private Lender Nation and welcome to episode 117 of the Private Lender Podcast and the first episode of the year 2021. I’m your host, Keith Baker and I’d like to thank you for sharing your time with me today, and I hope my voice finds you doing more than well. If you’re looking for practical tips and advice on Private Lending and how to keep your money safe then you are in the right place. But if you want to learn from my mistakes so you can avoid them, well then pull up a chair and pour yourself a drink my friend, because this podcast is just for you! This will be the first episode of 2021, and probably one of the least controversial. But before I say something to get me canceled, I would like to take a minute for some housekeeping: https://www.facebook.com/groups/674936429994760 (Private Lender Podcast Facebook Group) If you like the idea of private lending but find yourself a little hesitant to begin then click HERE to get your feet wet with the help of a professional Hard Money and Mortgage lender. www.privatelenderpodcast.com/ink My friend Paul Lamnatos is ready to answer any questions you may have and help you get started on your Private Lending journey. Click the link on the webpage and provide your email address and Paul will reach out to confirm a time when you can speak to him about Ink’s lending criteria, their loan process, and how you can begin profiting from loans on properties located in the greater Houston area – in a very lender-friendly state! 2020 is now over, and we Private Lenders have some of our own housekeeping to perform. The 1098 Even though the private loans I speak about are business loans, they are still considered a mortgage. Thus the lender is required to file IRS form 1098 and provide it to the borrower, indicating the amount of interest paid on the note over the course of the previous year. · $600 or more of interest collected (including points charged). · Remember, points count towards the Usury limit in your state. 18% in TX · Must file and provide to the borrower no later than 31 January 2021 If you have your private loan serviced, which I strongly recommend you do, the note servicer/escrow company with do this for you and mail and/or electronically deliver the forms to you borrower. I personally have one legacy loan with my partner Landon that I didn’t demand the use of an escrow/servicing company. Here are some options if you don’t use a note servicer/escrow company: · Your CPA · Accounting software · Quickbooks or TurboTax · Online services I just found 8 websites from a Google search (excluding Quickbooks and TurboTax) The second order of housekeeping is the Fair Market Valuation for any investments, including notes, private entities, and real estate in your Self-Directed IRA. 1. Real Estate – Appraisal, Broker’s Price Opinion (BPO), County Appraisal Value. 2. Note – If amortized, attach the amortization schedule. If interest only, simply state the current principal value in the “EOY 2020 Market Value” box and that the note is interest only in the “Comments” area. 3. Private Entity – A letter from a managing member on letterhead stating the value or a balance sheet reflecting the value of the partner’s value. 4. Personal Property – Third-party valuation from a qualified professional. In my case, I logged on and was able to quickly provide the fair market value of my loans and my investments in the commercial and multi-family deals I recently invested in. Notes/Private Loans The only loan that I don’t use a note...
If you’re looking for practical tips and advice on Private Lending and how to build and maintain wealth outside of banks or wall street, then you are in the right place. And if want to put the power of a bank in your retirement account, you should probably pull up a chair. But if you want to learn from my mistakes so you can avoid them, well then pour yourself a drink my friend, because this podcast is just for you! Love the show? Subscribe, rate, review, and share! http://privatelenderpodcast.com/blog/how-to-subscribe-rate-our-podcast-5-stars-on-itunes/ (Here’s How ») This episode is going live on December 21st, 2020 – the longest day of the strangest year I’ve seen in my few orbits around the sun. Before I get to the housekeeping, I would like to take a moment and say thank you. Thanks for sticking with me this far, and I hope you stick with me even further as we boldly go into 2021. Housekeeping: Join the https://www.facebook.com/groups/674936429994760 (Private Lender Podcast Facebook Group) https://www.facebook.com/groups/674936429994760 (https://www.facebook.com/groups/674936429994760) Did you know there is an easy button to start your private lending journey? If you are a bit unsure of making your first private loan, you can partner with my friends over at Ink lending and fund their loans on properties right here in the Houston area, in one of the most lender-friendly states in this great country of ours! That’s right, Paul Lamnatos and his team vet the deals, underwrite the loan, and put your money to work for you. It’s about as passive as you can get!! If you would like to learn more go to PrivateLenderPodcast.com/INK, click the link, enter your info and Paul will reach out to confirm a time when you can speak to him about Ink’s lending criteria, their loan process, and how you can begin profiting from loans on properties located in the greater Houston area – in a very lender-friendly state. OK, let’s get down to the brass tacks, right to the heart of today’s topic which is another lesson taken from the book The Richest Man In Babylon. Why am I doing this you might ask? Because there is no secret to building wealth, but there is a price that I believe very few of us are willing to pay, which includes hard work, unwavering determination, no guarantees, and nothing but uncertainty. You can see examples of not paying the price for that which we so desperately desire. I’ve seen it in my family, my friends and sadly I’ve seen it in myself. Remember ya’ll, my truck was repossessed when my wife (at the time) was 3 months pregnant with our first child. That’s why I love the book the Richest Man in Babylon and the lessons found within it. These are time tested principles for building wealth. They are not get-rich-quick schemes. They are not “hacks” for you to avoid putting in the work and developing the discipline necessary to build your estate, your wealth. There is no cheat code to working for it – and nor should there be! These principles and lessons are quite simple, but that doesn’t mean they are easy to implement or to continue for your entire money-earning life. But if you start good habits now, you will have a strong financial base from which to make future decisions. And you will build the discipline necessary to reach your goals and then some! Last month we began with the first of 7 cures for a lean purse, or small savings/investment account/wealth. And today we will discuss the first of 5 laws of gold, which fits hand in hand with the first cure for a lean account. The First Law of Gold. The First Law of Wealth. Original: Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family. Wealth comes to those who reserve AT LEAST 10% of their total earnings towards building their future financial...
Join the Private Lender Podcast Facebook group and get real time answers to your questions as you build your network!: https://www.facebook.com/groups/674936429994760 (https://www.facebook.com/groups/674936429994760) Also, did you know there is an easy button to becoming a Private Lender? Just CLICK HERE to learn more about lending your money on deals right here in the Houston area, OK, let’s get down to the brass tacks, right to the heart of today’s topic: the pulse of your local real estate market. 2020 has been just a little crazy, no? I personally know people who were optionally unemployed - WTF? Eviction moratoriums Foreclosure moratoriums A new spike in Covid cases and restrictions Wall St is thriving Main street is dying REITs took it on the chin and haven’t returned to pre-covid prices Nationwide housing market are showing bulls and bears I suggest we all pause for a few seconds and stop what we’re doing to look around us. To observe the current market trends and signs. What does your local market look like? Perhaps you live near a major city and are experiencing urban flight. Maybe you’re more coastal and have seen a staggering amount of vacation home construction and development. We certainly have in the Gulf Coast. The city of Lake Charles – hit with 2 hurricanes (first Laura then Delta). I’ve had conversations with locals who work in the petro-chem plants and are looking to have their homes repaired or rebuilt and the prices are through the roof. Admittedly this is anecdotal hearsay at best, but when you hear enough strangers say the same thing in a matter of hours, I tend to put some credence to their words. My neighbor down the street is currently on contract number 5 to sell his house. We’ll see if it actually closes before the end of 2020. Saw an article in WSJ stating home sales set a 14 year high (2006) What am I looking at to get the pulse on the Houston market? HAR.com (local MLS) Monthly press releases that show month over month statistics. Total Sales Average SFR sales price Median SFR sales price Number of listings Pending sales Months of inventory November 2020 · $1 – $99,999: decreased 23.1 percent · $100,000 – $149,999: decreased 22.3 percent · $150,000 – $249,999: increased 18.2 percent · $250,000 – $499,999: increased 46.7 percent · $500,000 – $749,999: increased 58.1 percent · $750,000 and above: increased 81.5 percent Here’s what I know: Interest rates are the lowest ever since Freddie and Fannie began tracking them in 1971. Stimulus plan and moratoriums running out, is another round coming? Lockdowns? This bull market is long in the tooth Here’s the deal: I don’t charge money for this show, but there is a cost and I would be extremely grateful if you would help drive awareness to the show, to get the word out by leaving me an honest rating and review over at iTunes, Google Podcast or whatever platform you are using to hear my voice. It doesn’t take that long and it’s a small price for the value I try to provide. And if you are looking to create your stable of private lenders, or know people who have money but don’t realize the power of private lending, please, please send them a text, an email, a DM, and introduce them to the PLP. That’s gonna do it for Episode 115 and just a few final thoughts: 1 – please join the PLP Facebook group to connect, learn, inspiration and discussion 2 - Remember, the easy button to lending in the Houston, TX market can be found at PLP.com/INK. So, as I sign off I’d like to say besides self-awareness, I...
Hello Private Lender nation and greetings from what used to be the energy capital of the world – Houston, TX. And welcome to episode 114 of the Private Lender Podcast, I’m your host, Keith Baker and I’d like to thank you for sharing your time with me today. If you’re looking for practical tips and advice on Private Lending and how to build and maintain wealth without banks or wall street, then you are in the right place. And if want to put the power of a bank in your retirement account, you should probably pull up a chair. But if you want to learn from my mistakes so you can avoid them, and save yourself thousands of dollars and heartache in the process – well then pour yourself a drink my friend, because this podcast is just for you! Let’s start with 400lbs gorilla in the room – where have I been? Well, let’s just say that while mother nature has not been kind to the united states this year , she’s been kind to my wallet! Let me just say that business is booming! Which is great for me, but when you pray for rain, you have to deal with the mud. So that means I’ve been on the road traveling more, seeing my kids less, and sitting elbow to elbow with people on airplanes, all while maintaining proper social distancing, as mandated by the airlines! Happy to be back home, and get back behind the mic, and back into the episode groove! And I’m happy to say motivation is flowing back and work on the PLA continues – albeit slower than I would prefer! I think I might drop a surprise episode into the mix soon so keep listening for more info. Housekeeping: 1 – PLP Facebook group: Private Lender Podcast (public) Go to Facebook and search for the Private Lender Podcast group and click the https://www.facebook.com/groups/674936429994760 (https://www.facebook.com/groups/674936429994760) Show notes page for the link 2 – did you know there is an easy button when it comes to starting your journey to becoming a kick-ass Private Lender? Yep – there is. You can partner with my friends over at Ink lending and fund their loans on properties right here in the Houston area, in one of the most lender-friendly states in this great country of ours! That’s right, Paul Lamnatos and his team vet the deals, underwrite the loan and put your money to work for you – about as passively as you can get – they even service the loan on your behalf! You don’t have to be like me rushing to file 1098’s and other tax documents on January 31st at 11pm. . . .every year! If you would like to learn more go to PLP.com/INK, click the link, enter your info and Paul will reach out to confirm a time when you can speak to him about Ink’s lending criteria, their loan process, and how you can begin profiting from loans on properties located in the greater Houston area – in a very lender-friendly state. How’s that you ask? Texas Foreclosure Facts: · Non-Judicial · 2-3 month process · NO redemption period · Deficiency Judgements are allowed Once again go to PLP.com/INK OK, so here we go! Today marks the first in a series of episodes that are based upon the lessons found in the book The Richest Man in Babylon written by George Samuel Clason. If you haven’t read this book, then as your presumptive power of attorney I suggest you get a copy and read it immediately. Purchase or go to your local library and check it out today! I was given a copy when I joined a 2-day REI mastermind about 6 or 7 years ago. Steven Kaufman of episode no’s 1 and 100 fame led the mastermind, and it changed my world – the very way I began to think about money, investing, and things like forgiveness and integrity. I read the book within a day, and so I began to challenge my definitions of...
The 6 Pillars of Private Lendinghttps://www.facebook.com/groups/674936429994760 (Click Here to join the Private Lender Podcast Facebook Group)Hello everyone and Greetings from the energy capital of the world – Houston, TX. And welcome to episode 113 of the Private Lender Podcast, I’m your host, Keith Baker and I’d like to thank you for sharing your time with me today. http://PrivateLenderPodcast.com/ink () If you’re looking for practical tips and advice on Private Lending and how to build and maintain wealth without banks or wall street, then you are in the right place. And if want to put the power of a bank in your retirement account, you should probably pull up a chair. But if you want to learn from my mistakes so you can avoid them, and save yourself thousands of dollars and heartache in the process – well then pour yourself a drink my friend, because this podcast is just for you! How’s it going Lender Nation? Wow, here we are at the beginning of the fourth quarter 2020, which has been arguably the most bizarre year in recent memory. I hope you are well and that you are doing more than just surviving in this Coronavirus universe that’s filled with pandemic fear, politics, and sensational media coverage because even the Weather Channel had to go really sensational to compete with the shit going down in this great country of ours. OK, back to drinking – so after you’ve pulled up your chair and had a drink, I want you to set it down on the easy button to beginning your private lending journey. What’s so great about that? A seasoned professional lender vets the loans for you, who only lends in their backyard (the greater Houston, TX area). Fun Texas Foreclosure Facts: Non-Judicial 2-3 month process NO redemption period Deficiency Judgements are allowed Go to http://privatelenderpodcast.com/ink (PrivateLenderPodcast.com/ink) to learn more about how you can hit the easy button and begin your private lending journey by letting Paul and folks at INK Lending vet the loan for you, on a property in a lender-friendly state. I have a bit of an announcement, or perhaps a re-announcement. I’m finally stepping into the 21st century – excited to say! After being asked by a few listeners including Steve Hiltabiddle (thank you guys) I am embarrassed to announce that I forgot I had previously created a Facebook group for the Private Lender Podcast but haven’t pushed it forward and have seemingly left it to die. I just admitted a guy who applied 6 weeks ago – that’s my Homer Simpson moment – DOH! But now I am bringing it back, pushing awareness for the Private Lender Podcast FB Group and hoping you will join me there if you haven’t already. This is a public group but You will need to answer a few questions before being granted access. However, once you are in you will be in a community of private lenders and other like-minded people, and your popularity is guaranteed to increase immediately. Once your membership is approved you will be able to ask questions, bounce ideas off other lenders, ask for references for service providers, vendors, etc. And I will be posting more useful things hopefully a little more often – well that’s my plan! Go to Facebook and search for the https://www.facebook.com/groups/674936429994760 (Private Lender Podcast group) and join https://www.facebook.com/groups/674936429994760 (https://www.facebook.com/groups/674936429994760) OK, let’s get down to the brass tacks of episode 113. In Episode 111 we began building your foundation of successful private lending by discussing the 7 core values, that will help give you a touchstone for when you are uncertain. To give you a place to collect your thoughts when you are in doubt. Well in this episode we are going to discuss the pillars of private lending. Your decisions will stand on these pillars, which stand upon your core...
Since quitting his healthcare job after 8+ years, Jaspreet Baveja has been helping others achieve the dream of passive income through private lending. Jaspreet is the CEO of https://jgbllcre.com/ (JGB, LLC) and has built a business that allows him to pursue his passions of travel and spending time with his family while generating income on his terms. Today, he chats with Keith Baker to explain his process, lending methods, and habits and how he's able to lend on properties over 2000 miles away from his home. Listen to the podcast here:[smart_track_player url="" title="PLP 112 - Lending On Properties 2,000 Miles Away With Jaspreet Baveja" ] Lending On Properties 2,000 Miles Away With Jaspreet BavejaLender Nation, greetings from the energy capital of the world, the last time I checked, it’s Houston, Texas. I'd like to thank you for sharing your time with me. If you're looking for practical tips and advice on private lending and how to build and maintain wealth without banks or Wall Street, then you're in the right place. If you want to learn from my mistakes so that you can avoid them, well then pull up a chair and pour yourself a stiff drink because this show is for you. This is dedicated to giving people just like you and me, the knowledge and confidence to participate in the most passive form of real estate investing known to man, private lending. If you're looking for the easy button or a shortcut to beginning your private lending, then head over to http://privatelenderpodcast.com/ink/ (PrivateLenderPodcast.com/ink) to learn how you can put your money to work for you by investing in private and hard money loans in and around the Houston area. In case you haven't heard me say it before, Texas is a very lender friendly state with a relatively short foreclosure period. That's why we private lenders like lending here so much. As this episode is being released, it is Labor Day in the United States. To be specific, this episode is dropping on Monday, September 7th, in this dreadful year of our Lord, 2020. I'm going to go off the ranch here, but I noticed earlier that the acorns had started the fall from an oak tree in my backyard and the squirrels are beginning to hoard their stash for the winter. It was quite fun to watch them not fight but scurry around. They were very excited about the fresh acorns that had fallen. Given the year it has been thus far and not knowing what the next four months are going to bring, not that January 1 is going to suddenly make our lives any better, but I’ve adopted a mantra and motto which is a very determined and emphatic plea to you, dear reader, and that is this. Three simple words. Prepare for winter. It's coming. The squirrels know it. If you haven't seen like something's coming, I don't know how much crazier things can get, but I don't want to ask. I think it's a good time to prepare for winter. Start putting those acorns back, start not spending so much. Maybe get a little more conservative in the fiscal side of things. I'm trying to do that. At the same time, I'm trying to also become more liberal on the giving and the tithing and whatnot. As they say, the more you give, the more you get back. I'm trying that myself. I'm not suggesting you necessarily do that, but just saying that's where I'm at. We've had a hell of a nice long run on this bull market. We'll see what happens, but okay. Our topic is one for which I receive quite a few questions, and that is how to lend beyond your own backyard. I always say people tell people to start in their backyard before they move out and lend out of town or even across state lines. It's something that I don't do myself because I don't need to leave Texas. It's fairly secure and safe for me and I can go still see the properties. However, I have the privilege of speaking with https://jgbllcre.com/ (Jaspreet Baveja), a private lender in the San Francisco Bay area who's going to talk about how he generates positive ROI...
Seven Core Values ROI - Return OF Investment ROI - Return ON Investment (Profit) Integrity Discipline Creative Initiative Take responsibility and be accountable for everything Always Learn More
" And you who philosophize disgrace and criticize all fears Take the rag away from your face. Now ain't the time for your tears." from "The Lonesome Death of Hattie Carroll" - Bob Dylan Stay safe out there! -k
What is the easiest way to start private lending? We have learned from one of our previous episodes that the most passive way to do this is to lend your money to other lenders and let them do all the hard work for you. While this lending to lenders scheme certainly is an easy button, you still have to perform your own due diligence when doing deals. In this episode, https://www.linkedin.com/in/paul-lamnatos-10b34b24/ (Paul Lamnatos), Chief Lending Concierge and Managing Partner at http://www.blinklending.com/ (BlinkLending), joins Keith Baker and gives us a ton of tips and advice on how to proceed in these deals. Make sure you settle down, take notes and learn how to make money in private lending – in a blink.
The Fastest Way To Start Private Lending With Paul LamnatosI'd like to thank you for sharing your time with me. I hope everyone is doing well out there in this COVID. This is going out sometime in August 2020 and I'm already getting ready for my kids not going to school at least until January. Poor me. In episode 108, we had http://privatelenderpodcast.com/episodes/plp-108/ (Jason DeBono) on from NuView Trust. He discussed the most passive form of private lending and that is lending your money to brokers or hard money lenders and let them do all the heavy lifting. I call it the easy button as if there was such a thing. As a private lender, you still need to perform your own due diligence, but you don't have to worry about finding the borrowers. You don't have to worry about finding the deals. They facilitate that for you. I had the privilege of speaking with Paul Lamnatos from http://www.blinklending.com/ (Blink Lending), who delivers a ton of value. Read this when you're sitting down because he drops a lot of great value nuggets, knowledge nuggets, bombs, whatever you want to call it. He funds his own "hard money loans," but then he sells the notes to private lenders, like you and me. Get this, he guarantees his loans, which is something I never do. Enough of my jaw wagon, let's get down to the brass tacks into the interview with Paul Lamnatos.
I am stoked to have Paul Lamnatos from http://www.blinklending.com/ (Blink Lending) with us on the show. Paul, welcome to the show. Keith, I'm happy to be here. Thank you for having me. The pleasure is mine. Full disclosure, Paul and I have known each other around the Houston real estate investing community for a few years. I met him when he was over at with Zeus and readers know that. Paul has done something rather interesting and spectacular and he's gone off, got his own, he's got http://www.BlinkLending.com (BlinkLending.com), where if you need a mortgage, a refi, the conventional, give them a look. There's also http://inklending.com/ (Ink Lending) and that is what I want to talk to you about and the model that you have, because you're not a hard money lender, you loan out funds and then sell the loans to private investors, private lenders. Is that correct? Yeah, that's right. You'll often hear private money, hard money lending. What's the difference between the two? Depending on who you ask one might say 6 and 1/2 it does or the other or tomato or tomato. At the end of it, I define it as where are you getting your capital from? Are you getting it from financial institutions like hedge funds, banks do lines of credits, or are you raising the money privately through your own funds and through your network of funds? Meaning people that have money sitting in an IRA account or a 401(k) or idle checking, savings account money. All of our funds are privately raised funds and because of that, we hang our hat on the private lending side of things like that better than hard money lending sounds better. The easy button for becoming a private lender is to loan your money to someone who's already loaning it out a hard money lender or like yourself you're funding loans and then selling the loans to the private investors. You're doing all...
Episode 109 Dear Lender Nation, Here are the links for Episode 109: https://www.youtube.com/watch?v=5J6jAC6XxAI&t=41s (Tim Ferris' TED Talk) https://plp.phonesites.com (Fear Setting Workshee)https://drive.google.com/file/d/1fUC5EHO-Qb-eoRMf_SI6AzX6LHVuPW9H/view?usp=sharing (t) Love the show? Subscribe, rate, review, and share! http://privatelenderpodcast.com/blog/how-to-subscribe-rate-our-podcast-5-stars-on-itunes/ (Here’s How ») Join the Private Lender Podcast community today: http://privatelenderpodcast.com/ (PrivateLenderPodcast.com) https://www.facebook.com/PrivateLenderPodcast/ (Private Lender Podcast Facebook) https://www.linkedin.com/in/keith-baker-344944155/ (Keith Baker on LinkedIn) https://twitter.com/PrivLendPodcast?lang=en (Private Lender Podcast Twitter) https://www.youtube.com/channel/UCzctXatpCAOhF0XeV1fq2dQ?view_as=subscriber (Private Lender Podcast YouTube)
Perhaps nothing could be as passive as letting others do the work for you. When it comes to passive investing, the easiest way to get into private lending is to loan your money to a hard money lender and allow them to do their magic. Guest, https://www.linkedin.com/in/jasondebono7/ (Jason DeBono) from https://www.nuviewtrust.com/ (NuView Trust Company), is someone who uses this as his own personal strategy, and he sits down with host, Keith Baker, to share his whys and hows with us. He explains his process from having the money in a self-directed IRA to making contact with the hard money lender or brokers, as well as some of his investment strategies in terms of self-directed IRA and cryptocurrencies. Plus, Jason then provides a couple of great wisdom and advice on working with lenders and borrowers and how to have more skin in the game.
Listen to the podcast here: Passive Investing: Private Lending Through Brokers And Hard Money Lenders With Jason DeBonoOur topic is one that I'm ashamed to say I haven't covered in the last hundred episodes or so, but that gets changed. I've often said the easiest way to get into private lending is to loan your money to a hard money lender. Let them do all the work, find the borrowers, vet the deals, look at the numbers, look at the properties, service the loans, make the payments. You're not going to get as much interest or points. You're not going to make as much but then at the same time, this is getting passive because you're not doing as much either. You're letting that hard money lender make the decisions, do those works, vet the deals, and tell the borrower, “No,” or “We'll do the deal, but you’ve got to have more money and more skin in the game.” I interview Jason DeBono from https://www.nuviewtrust.com/ (NuView Trust Company) and this is exactly his own personal strategy. I'm going to let him discuss it but it's like the truncated version of what I've been spitting out for the last hundred episodes. Without further ado, let's go ahead and get into the interview with Jason DeBono.
https://www.linkedin.com/in/jasondebono7/ (Jason), welcome to the show. It’s good to be here. How are you? How's it over in Florida? As everyone else, we're all adjusting and adapting to the new normal but all is well, thankfully. I hope you guys are staying safe. How is NuView Trust handling Corona? Are you allowing people and customers into the office? How's that working? Is it all online? Our business is nationwide. A fair bit of business comes into our office. It's a small amount. Even before the state shutdown, we had already closed our office to visitors. I've been working through getting people working from home. In our business, because of the line of work that we're in, there are too many things. We can't let the whole office go home. There are unfortunately too many things that come into our office like checks, mail, and stuff that has sensitive client information. We want to make sure that we're protecting our clients. We've got a good office building here that we can space out in. We’re taking all the recommended precautions and then a little bit more to try to keep the place spread out. I love using self-directed IRAs for private lending. I do a lot of it myself. You let someone else do the legwork for you which I want to hear about. Please explain how your process goes from having the money in your self-directed IRA or making contact with that hard money lender, looking at the deal and flowing through the transaction. If you can start with that. My time is spent overseeing the business and that takes a significant chunk of my time. I don't always have time to go out and pound the pavement and be out in the marketplace to find deals directly. I've done this for many years. I've got about 6 or 8 different groups that are in the lending business that are bright and do what they say they're going to do. I let them source the deals...
What can I say - I've hit my tipping point. I would categorize today's episode as a therapy session for me, so thanks for hanging in there. I hope you find some value in there. . . . If you want to find out more about how our federal representatives are compensated then start here: https://www.investopedia.com/articles/markets/080416/how-congress-retirement-pay-compares-overall-average.asp#:~:text=4%EF%BB%BF%20Currently%2C%20Congressional%20pay,to%20a%20401(k). (How Congress Retirement Pay Compares to the Overall Average) I'll be back next week with the an interview with Jason DeBono who discusses the most passive form of private lending there is.If you want to fact check the story I told, then please send an email to info@privatelenderpodcast.com and state Fact Check in the subject line. Love the show? Subscribe, rate, review, and share! http://privatelenderpodcast.com/blog/how-to-subscribe-rate-our-podcast-5-stars-on-itunes/ (Here’s How ») Join the Private Lender Podcast community today: http://privatelenderpodcast.com/ (PrivateLenderPodcast.com) https://www.facebook.com/PrivateLenderPodcast/ (Private Lender Podcast Facebook) https://www.linkedin.com/in/keith-baker-344944155/ (Keith Baker on LinkedIn) https://twitter.com/PrivLendPodcast?lang=en (Private Lender Podcast Twitter) https://www.youtube.com/channel/UCzctXatpCAOhF0XeV1fq2dQ?view_as=subscriber (Private Lender Podcast YouTube)
The number one rule in real estate investing is return of investment. That is, for every dollar that goes out, you want to get it back, if not, more. That is why people just starting with real estate investing stay away from subordinate liens. But what really are subordinate liens? On today’s show, Keith Baker talks to https://www.linkedin.com/in/james-maffuccio-77440813 (Jim Maffuccio) about subordinate liens and how he got started in this world of distressed second liens. The Founder and Principal of https://aspenfunds.us/ (Aspen Funds), Jim’s role includes identifying and developing key investment opportunities currently focused on distressed residential real estate debt, as well as leading efforts in business development, building and maintaining key relationships with hedge funds, note buyers, and sellers, and key service providers in the mortgage note industry. If you want to know if investing in subordinate liens is the right path for you, you wouldn’t want to miss this episode.
What You Don’t Know About Subordinate Lien Investing With Jim MaffuccioThis is the only show that's dedicated to teaching everyday people, like you and me, how to prosper with the most passive form of real estate investing known to humankind, while giving tips and ideas that can help keep your money safe with private mortgage lending. It's just as simple. If you're looking for practical tips and advice on being a successful private lender and on how to create wealth without banks or Wall Street, then you're in the right place. If you want to learn from my mistakes so that you can avoid them, jump around them and prosper much quicker, then pull up a chair and pour yourself a stiff drink and get ready to take notes because this show is made just for you. The show does not constitute an offer to sell, a solicitation of an offer to buy or recommendation of any security or any other product service or investment. We're only talking here and rapping out loud. Do your own due diligence and make sure you stay compliant. Having said that, let's get into the heart of the matter. I've got the good fortune of talking with Jim Maffuccio from https://aspenfunds.us/ (Aspen Funds). Not long ago, I decided that I was going to no longer interview real estate fund managers for various reasons. Mostly, because I had locked onto some green fund managers and they didn't exactly succeed. Knowing that I wanted to be conscious of who I led on the show, what we talked about, so on and so forth so I say, “No fund managers for a while, except those few crowdfunding, and things like that.” One of Jim Maffuccio of Aspen Funds’ assistant reached out to me and said, “Would you consider interviewing Jim on the show?” I immediately said, “No. Thank you, but I can't recommend anyone invest in subordinate liens and especially nonperforming subordinate liens.” [bctt tweet="There are no bad notes, only bad prices." username=""] I didn't feel like it was a good fit, but the more I thought about it, I was thinking, “Who’s better to speak about such a topic on this show?” It is a topic I'd like to cover, but it's one that I don't feel like I have much authority on. I have done some lien lending in the second position, but I don't feel like I have done it enough to talk confidently on it. I decided, “Probably, it wouldn't be a bad idea to have someone like Jim to come on and talk about the ins and the outs.” Just because I don't do something, it doesn't mean that I can't interview someone who does it. It doesn't mean that I can't learn from Jim's process to help you do the same. That's the whole purpose of this platform. At the end of the day, here we go interview with Jim Maffuccio of Aspen Funds. Let's get down to the brass tacks in his interview.
Everyone, thanks for joining me. I want us to give a special thanks to Jim Maffuccio, who has come on to talk about his https://aspenfunds.us/ (Aspen Funds) and the particular niche that they've...
What is up Lender Nation? Greetings and welcome to the Private Lender Podcast, I’m your host Keith Baker and you are listening to episode 105. This podcast is the only one of its kind dedicated to teaching everyday people (just like you and me) how to prosper with the most passive form of real estate investing known to humankind, while giving tips and ideas that can help keep your money safe – with Private Lending. Look, it’s just this simple: If you’re looking for practical tips and advice on being a successful Private Lender, on how to create wealth without banks or wall street, then you are in the right place. But if want to learn from my mistakes so you can avoid them and prosper much quicker - well then pull up a chair and pour yourself a drink and get ready to take notes my friend, because the Private Lender Podcast is made just for you! Let just start by saying I’m not sure where today’s episode will end up, but I need to produce an episode – I’ve been stuck in the creation process recently and I think I know why: I don’t want to talk about private lending – with all the shit going on in the world, I’m not really in the mood. I’d honestly rather talk about current events other things that don’t fit the scope of this podcast – but these topics are not my expertise, so I prefer to look to others for inspiration. Last episode I played John Coltrane’s Alabama on the podcast and Youtube + Facebook flagged it for having a copyright. So this time I’ll just put the links up on the show notes page so I don’t get censored. So let me run down my recent list of people I have relied upon for perspective: [caption id="attachment_2917" align="aligncenter" width="300"]https://www.youtube.com/watch?v=saN1BwlxJxA () John Coltrane[/caption] 1 – John Coltrane – even if you don’t know what the song Alabama is about, it is extremely haunting. https://www.youtube.com/watch?v=saN1BwlxJxA (Alabama) [caption id="attachment_2926" align="aligncenter" width="201"]http://privatelenderpodcast.com/wp-content/uploads/2020/06/Day.jpg () Billie Holiday[/caption] 2 – Just like Lady Day (Billie Holiday) and her song Strange Fruit. Listen to it and tell me it doesn’t screw with your head: https://www.youtube.com/watch?v=-DGY9HvChXk (Strange Fruit) These two musicians wrote and performed the truth with humility, honesty and vulnerability. The remaining two individuals are still alive and working in America. I follow both of these men because they are outspoken, and I don’t always like or agree with what they say – but I always respect what they say, and I will make the time to listen to them. Through their content they have insured that I respect them as people – people who work hard, who have opinions and emotions. No different than me and you. http://privatelenderpodcast.com/wp-content/uploads/2020/06/Chapelle.jpg () The first person whose content I would like to share with you is from the great Dave Chapelle and his Youtube recording entitled https://www.youtube.com/watch?v=3tR6mKcBbT4 (“8:46”). I don’t recommend this to you for the laughter, because there are only a couple of belly-jiggling funny parts. This is real. Watch it. https://www.youtube.com/watch?v=3tR6mKcBbT4 () I recommend 8:46 in order to provoke thought. Thoughts and beliefs for and against what you are about to hear, either way – it’s thought provoking because I believe Dave Chapelle presents the truth with humility, honesty and vulnerability. https://podcasts.apple.com/us/podcast/46-hot-af-is-hot-af/id1012570406?i=1000477693302 () Just like businessman Andy Frisella, and his REAL AF podcast episode 46. I provide the link to this episode because whether I agree with him or not – I believe he presents the truth with humility, honesty and vulnerability. https://podcasts.apple.com/us/podcast/46-hot-af-is-hot-af/id1012570406?i=1000477693302 (Real AF Episode 46) Look folks, as I keep walking down my...
http://privatelenderpodcast.com/wp-content/uploads/2020/06/four-black-girls-killed-in-bombing-of-birmingham-alabama.jpg () 1963 Addie Mae Collins Carol Denise McNair Carole Robertson Cynthia Diane Wesley 2020 George Floyd My grandmother always said "there's a lot of meanness in the world." Today will be a very short episode as I do not have much to say. But I've decided to let the music of John Coltrane speak for me, but really for so many others. . . [caption id="attachment_2917" align="alignleft" width="300"]https://www.youtube.com/watch?v=saN1BwlxJxA () John Coltrane is legend[/caption] https://www.youtube.com/watch?v=saN1BwlxJxA Also, check outhttps://www.edmylett.com/ ( Ed Mylett) at: https://www.edmylett.com/ and Ed's Instagram: https://www.instagram.com/edmylett/ (https://www.instagram.com/edmylett/) https://www.instagram.com/p/CAxnKT3BAMY/?utm_source=ig_web_copy_link (Click Here) if you would like to read Ed's post that inspired today's episode
MAXOUT
One of the most common things to note when doing real estate transactions is the appraisal of the property. Through this, the value of your property or deal is appropriately assessed. Continuing with the second part of the series on appraisals, Keith Baker goes over the Uniform Residential Appraisal Form, also known as Fannie Mae Form 1004 and Freddie Mac Form 70. Here, he breaks down the document and gives a page-by-page look into the sections that show the things that will help you analyze the properties or deals. If you are new to this, it helps to take a look at this essential form. This is a great tool that you can add to your toolbox when it comes to evaluating the value of a property and more.
Appraisals Part Two: The Uniform Residential Appraisal FormThis is the one and only show of its kind dedicated to teaching everyday people like you and me how to prosper with the most passive form of real estate investing known to humankind, private lending. While at the same time giving tips, tricks, and ideas that can help you keep your money safe. It's this simple. If you're looking for practical tips and advice on becoming a successful private lender and how to create wealth without banks or Wall Street, then you are in the right place. If you want to learn from my mistakes so you can avoid them and prosper much quicker, then pull up a chair and take some notes because this show is for you. [bctt tweet="My money. My terms." username=""] Early May 2020, Texas has begun to open back up from the Coronavirus shutdown and lockdown. I understand the death toll is still rising in the United States but hopefully, we can get over and around this quickly. Let's remember to keep our eyes on the prize. The present may be uncertain but the future is to be determined by us. Our topic is Part Two on Appraisals. I'm going to go over the Uniform Residential Appraisal Report or also known as Fannie Mae Form 1004 and Freddie Mac Form 70. It's a seven-page document including definitions, amendments, certifications, some language, and all that fun stuff. There are about three pages that we're going to dive into and go over in detail with the actual report. I'm going over a report from a house I sold several years ago. This appraisal report is 35 pages in length. Let's go ahead and jump right into it and start looking at this. You can download a blank version of the https://drive.google.com/file/d/1IMFa1hdB5uaIRpBo7u_gpze5-PD9j8-c/view (Uniform Residential Appraisal Report) on the website. On the first page is the invoice a lot of times. In this case, the appraiser that the borrowers' lender used put the invoice first. I see that they paid $470 for the appraisal, which several years ago is not bad. I eyeball around the $500 mark for a little bit of inflation. The second page contains appraiser certifications, the requirements, list of the subject property, who the borrower is, especially the lender's name because that is the actual customer of the appraisal report. The third page of this particular report is a cover page. It has a photo of the house I sold, the lender-borrower address, and basic stuff. The fourth page is a letter to the lender saying, “You hired me. Here it is. Subject to all limitations and discrepancies listed herein.” That’s the formality of communicating the appraisal report to the lender, which in this case is going to be you. You want to read every page of your appraisal report very carefully. Page five is the summary of salient features, which goes on to describe the overall dwelling, the improvements, the number of beds, baths, so on and so forth. I address the legal description. The lender and borrower are both identified. Page six is the actual first page of the Uniform Residential Appraisal Report as put out by the government. It's broken down into sections or paragraphs, which on the left-hand side you'll see the first being the subject property, the borrower, the lender, the type of loan,...
Before any property is purchased or sold, it's important that it undergoes a thorough appraisal. The importance of an appraisal truly cannot be underestimated because you should know the actual value of the property you're buying or selling, lest you operate at a loss. Keith Baker discusses the importance of an appraisal in the lending process. In doing so, he outlines the three types of appraisal approaches and gives you nine questions to ask when selecting an appraiser to join your team of professionals. Get familiar with the process of appraisal today!
Appraisals, Part 1: The Strength Of A Good AppraisalPlus 9 Questions You Should Ask Before Hiring An Appraiser On Your TeamThis show is the only one of its kind. It’s created and dedicated to teaching everyday people, like you and me, how to prosper with the most passive form of real estate investing known to humankind, private lending, while also giving tips and ideas that can help keep your money safe. It's this simple. If you're looking for practical tips and advice on being a successful private lender, then you're in the right place. If you want to learn from my mistakes so that you can avoid them and prosper much quicker, then pull up a chair and take notes because this show is made for you. It is late April in the year 2020 and the global death toll from COVID-19 has crossed more than 200,000 lives lost. I hope you stay safe and sane. No matter how crazy things get, it's up to us to choose to stay positive and to create our future, whatever that will come to look like. Let's keep our eyes on the prize. Our present is uncertain, but the future is up to us to create. Our topic is appraisals and the nine questions you need to ask your any potential appraiser if you're going to add them to your team. Remember as the lender, you choose the appraiser, but the borrower pays their fee so it doesn't cost you any money. I will roughly go over the three types of appraisals, the different approaches, which one we'll use for single-family. The two that I use myself, but the one that is the single-family standard. We'll get into some questions. This is part one. On part two, I'll go over the actual form from Freddie Mac and Fannie Mae that you most likely had when you bought your house, even if you're not an investor. I have a question for all the real estate investors out there and homeowners. Have you ever had a purchase or a deal killed because the appraisal came back too low and the bank wouldn't fund the loan? It happens all the time, especially in volatile markets. It is frustrating, to say the least. I have a friend who is selling his personal residence. It's not a real estate deal, but it's a normal retail sale. It was killed because the appraisal came back lower than what the bank was comfortable with. That's where I want to get to this. Banks aren't in the business of evaluating the value of properties, so they hire out a third party expert, a professional to do it for them. They use that to make their lending decisions in there and base their criteria and terms. As a private lender, it is no different. You want to seek the unbiased opinion from a third party on the market value of a property and base your lending decision and terms off of that. It's critical. The keystone number for a deal is, “What is that After Repair Value or ARV? What is the value? What is the realistic after repair value in the future for a retail sale?” Even if it's a rental, all my criteria and decisions are based on the number that I come up with or what that appraisal gives me. I do my own. [bctt tweet="You are the CEO of your money. Act like it!" via="no"] I look through the comps, but it is nice not to have to do that and to have somebody else who does it for a living do it and gives me the report. It takes me a few minutes to read through it and decide, yes or no, which way I'm going to go on that particular loan. It's time to get down and dirty. There are three types of...
The current Coronavirus situation has left many of us feeling helpless and anxious. Nevertheless, hope is not at all lost, especially if you are planning to start your journey to becoming a private lender. In today's show, Keith Baker tells you now is the perfect time to do that. In the service of providing the positivity that we all need right now, he shares with us three silver linings that we can get from the current situation. Here, he taps into what we can do with self-directed IRAs and then reminds us that our future is solely up to us.
Three Silver Linings For The Long-Term During This Difficult TimeNow Is The Perfect Time To Start Your Journey To Becoming A Private Lender In A Self-Directed IRAThis show is the only one of its kind that is dedicated to teaching everyday people like you and me how to prosper with the most passive form of real estate investing known to humankind while also giving tips and ideas that can help keep your money safe with private mortgage investing. It's this simple. If you're looking for practical tips and advice on being a successful private lender and how to create wealth without the banks or Wall Street, then you're definitely in the right place. If you want to learn from my mistakes so that you can avoid them and prosper much quicker, then pull up a chair and pull yourself a cup of latte Larry's coffee because the Private Lender Podcast is made for you. This episode 101 is sponsored by the letters WTF. I hope you are safe and well amid the COVID-19 pandemic wherever you are. As of mid-April 2020 on the global scale, there have been 2.4 million confirmed cases of infection, 623,000 have recovered and 165,000 have perished. Here in the United States, 22 million have been able to file their applications for unemployment insurance. I've completely brought the mood down and bummed everybody out. I do want to have something positive for everyone. In the spirit of finding positivity in crap, we're all going through this together, yet we're supposed to be apart or at least at a safe distance. No one can remember anything like this affecting us in the US as much as it has since SARS. In the spirit of trying to find a silver lining, I'm not going to promise to make lemonade from all these lemons. I believe this can be a step in the right direction, especially if your life's been dumped upside down and you're one of those 22 million people looking for their next paycheck. Keep your enterprise. The present is uncertain, but the future is up to you and me. It's up to us. I don't want to give any false hope. Times are crappy. We're going to have to buckle up. [bctt tweet="You are the CEO of your money. Act like it!" username=""] What I'm talking about here will not satisfy any short-term needs like putting food on the table or paying any bills, but then you don't read this show for that. The moves I'm talking about making are definitely to help you in your long game, but also knowing that the short-term is very bleak. For example, the former Mrs. Baker was laid off because of the effects of Coronavirus on the company she was working for. That sucks. It's not a great time for her. There are a lot of unemployed people and unfortunately in Houston, the job market for oil and gas, especially the upstream is not in a good swing. It's going down. I don't wish harm to anybody but history does tell us that during uncertain times like these is when giant shifts in society and wealth can be made. I believe this COVID-19 has the ability to make more private lenders than any other time before. It’s going to help open the doors of opportunities from the millions who have been affected. It's going to happen in an ugly and crappy way. Silver Lining Number OneIf you can hold your breath like Andy Dufresne in the Shawshank Redemption, you can crawl through a mile of crap and come out clean on the other side. A lot of bad things are going to happen to people and to good people, people...
Hey Lender Nation! I just wanted to pop in your ears and say that I hope you and yours are well, safe and keeping sane! I don't have a full episode ready for this week, but I hope you enjoyed last week's Episode 100 with Dr. Steven Kaufman. When I started out, I had only sketched out enough topic material for roughly 45 episodes, and now I have released 100. Not every episode has been a classic but that is my goal with each future episode. I have made it this far and I want to go a lot further. Because you listen and connect with me I want to thank you for letting me achieve 100+ episodes - I greatly appreciate it! I'll see you on the other side of this pandemic! -Keith
Many people underestimate the true importance of the correct mindset in achieving the things they want to be able to achieve in their lives. This so-called "mindset for success," contrary to most people's thinking, influences so much of what you do, and it all begins with making sure you're taking care of yourself. https://www.linkedin.com/in/thestevenkaufman/ (Dr. Steven Kaufman) is the Founder and Chief Acceleration Officer of https://zeuslending.com/ (ZeusLending.com). Steven joins Keith Baker in diving into what makes a good, strong mindset for success. In discussing faith, fear, and integrity, Steven breaks down what you need to develop the mindset for success because it truly starts within you.
A Mindset Milestone: An Interview With Dr. Steven KaufmanIf You Only Listen To One Episode Of This Podcast, This Better Be It...Greetings from the energy capital of the world inside the Corona versus Earth. Welcome to episode 100. I'd like to thank you for celebrating 100 episodes with me. Thank you for reading. I appreciate you sharing your time with me. We are dedicated to teaching everyday people just like you and me, how to prosper with the most passive form of real estate investing known to mankind. Not a job, not hard money lending, investing, while giving you tips and ideas that can help and will keep your money safe. It's simple. If you're looking for practical tips and advice on being a successful private lender or on how to create wealth without banks on Wall Street, then you are in the right place. If you want to learn from my mistakes so that you can avoid them and therefore shorten your own learning curve, which is what you should do, pull up a chair and pour yourself a dram of the best because this is made just for you. In honor of the 100 episodes milestone, I bring back my first ever guest all the way back from episode number one, http://privatelenderpodcast.com/episodes/bestof1/ (Mr. Steven Kaufman). This interview was several weeks before the Coronavirus became a pandemic and a fixture of reality in everyone's mind. As you're reading, I know you will find an extreme amount of value out of what Steven discusses particularly these three topics: faith, fear and integrity. I can't think of anyone outside of my own family who has had a bigger impact on changing my mindset for the better than Steven. That's why I brought him back here to help me work on my mindset as you get to read to give me a bit of perspective in order to achieve the next level, whatever that may be, especially during the challenging times in which we find ourselves. I'm very fortunate that I was delayed in this. This is perfect timing for episode 100. I asked Steven to speak about a couple of concepts that may be providing a lot of negative thoughts in your own mind and hopes that his words will cut through the noise and give you some ammunition to change and improve yourself, because I know Steven has done the same for me. For the record, to my knowledge, Steven Kaufman does not have a drug problem. It's a colloquialism, but it is. I asked him to tell the story of how he developed a drug problem, which is my favorite story of achievement. The making up of one's mind, committing to a cause and taking action. The action is necessary to achieve goals whether they be financial, personal, spiritual or any related to any pursuit for which you feel it's worthy. Maybe you want to communicate more effectively, you want to have better relationships with your children or your spouse, or you want to have a retirement that allows you to travel. Whatever makes you tick, it doesn't matter. Let's go ahead and cut to the chase. Let's get to this interview with Dr. Steven Kaufman on this 100th episode. --- This is my distinct honor to introduce to you once again, Mr. Steven Kaufman of Zeus Mortgage. Welcome back, Steven. Thanks so much for having me, Keith. First I should say, I mis-introduce you there because you are
We are in the midst of a global crisis. While we're all grappling to win over against its effects, it helps to gather a couple of lessons that we could take to aid us in these uncertain times. In this episode, Keith Baker guides us in creating our lending criteria moving forward. He talks about how to lend in preparation of price fluctuation for when the world becomes unhinged. Giving some context, Keith also talks about the effects of the COVID-19 Pandemic to Houston and to the rest of the world. Don't miss out on learning some important advice that might just help you stay safe in an unsafe market.
Creating A Lending Criteria During The COVID-19 PandemicHow To Stay Safe In An Unsafe MarketI'd like to thank you for sharing your time with me. We are dedicated to teaching everyday people like you and me how to participate in the most passive form of real estate investing known to mankind. That is private mortgage investing while giving tips and advice on how to keep their money safe. It’s simple. If you're looking for practical tips and advice on being a successful private lender on how to create wealth without banks or Wall Street, then you're in the right place. If you want to learn from my mistakes and my screw-ups so that you avoid them and therefore shorten your own learning curve, then pull up a chair and you might as well go ahead and pour yourself a stiff drink or two because this is made for you. I want to invite everyone reading to join me on Monday, April 6 at 8:30 PM Central Standard Time for Ask A Private Lender on Facebook Live. I will go live for hopefully 30 minutes minimum to answer any questions you may have regarding private lending, both from the lender’s perspective and for the borrower's benefit. I'm hoping everyone will find it helpful whether they want to lend or they want to borrow. I'm going to try to make Ask A Private Lender the place that gives the straight scoop. Please let other investors know that I will be going live and they can ask me anything they want about private lending. I hope to see you on Ask A Private Lender Facebook Live. When http://privatelenderpodcast.com/captivate-podcast/plp-098-warning-signs-your-borrower-is-in-trouble/ (episode 98) went live, I was in the great country of Scotland along the River Spey. I took my iPhone out and I recorded the sound of the water. I'm either one, completely off my rocker or two, an insane scotch alcoholic or three, all of the above. I’m getting high tech and fancy. When the last one dropped, I was canceling. I had planned to go to the Macallan and the Glenlivet distilleries and that's my thing when I get over there. Unfortunately, the conference was canceled so I had to go back to London and found myself literally 36 hours later on a plane flying back home to Houston with five days of unscheduled vacation ahead of me, which was great. It wasn't all that jet lag, but it allowed me to accomplish a few nagging chores around the house and get a billable hour or two here and there. After that full weekend, all hell broke loose and all of a sudden, I couldn't find a store to find any toilet paper in it or at least long enough to stay on the shelf for me to buy it. It's been a while since I came home. I don't know where the time has gone. It's a complete blur and I haven't felt like I’ve been able to produce any content that that seemed worthwhile. I’ve tried, but it seems like it's crap and there's a lot of noise on the interwebs. I want to make sure that my content is relevant and has some value or not something that has value to two private lenders and not be a soapbox so that I can preach to the choir. Episode 99, how to lend in preparation of price fluctuation when the world goes to hell in a handbasket aka what your lending criteria should be moving forward.
Like many of you, I’ve been watching a lot more CNBC and Bloomberg than usual, probably more than I would like to admit. I’ve made a few moves into the market...
https://www.facebook.com/capn.baker (https://www.facebook.com/capn.baker) Join Keith Baker as he takes to FaceBook live this Monday night at 8:30pm CST. Keith will be answering questions about Private Lending both FROM the perspective of the lender and TO the perspective of the borrower. Don't miss out on this amazingly free session with the THE Private Lender himself! Stay safe and let's get to the other side of this crap ASAP! -k
6 Signs your borrower may be in trouble 1. Sudden lack or stoppage of regular communication 2. Late payments/returned 3. They ask you if you can lend them “just a little more” 4. You have to chase them for an update 5. They don’t want you visiting the property 6. Talk about changing exit strategies that require you to “stay in a little longer” (ask their previous lenders because shit does happen, but if they make such biz practices a habit, then you might want to pass on their loan if the numbers are getting thin.
The American investing industry can be a little bit confusing to get into at first because it's very much its own thing with plenty of unique quirks that require a good amount of study. Despite this, it's certainly not impossible to make sure that you're able to understand what you're doing and all the best ways to go about things. https://www.reedgoossens.com/ (Reed Goossens) is a real estate entrepreneur and investor who moved to the USA from Australia. Reed shares his experience with Keith Baker of investing in the US and navigating the industry from what was initially an outsider's perspective. Reed's story is an empowering story of finding success after finally being able to adapt, and it's certainly not to be missed!
10,000 Miles To The American Dream With Reed GoossensInvesting In The US With Reed GoossensThe Private Lenders Podcast is the only podcast teaching people how to become passive real estate investors while helping them keeping the money safe in investing in private mortgages to other investors. If you’re looking for practical tips and advice on being a successful private lender and how to successfully build wealth without banks in Wall Street, then you are in the right place. If you are looking to learn from my mistakes and shorten your learning curve, then pull up a chair and pour yourself a few fingers of Scotland’s finest and add a few drops of water, because this podcast is for you. Several years ago, I began listening to podcasts along with NPR and BiggerPockets. https://podcasts.apple.com/us/podcast/investing-in-the-u-s/id1071004776 (Investing in the US Podcast) was one of the few real estate podcasts that I had in constant rotation. Joe McCall was another one, Kevin Bupp as well. I found the story of the host of this podcast, coming from The United States and from Australia, and living off his version of The American Dream, I find it inspiring. I’m happy to have the man himself on the show, all the way from Down Under, Mr. https://www.reedgoossens.com/ (Reed Goossens). I think you’re going to find Reed’s story quite compelling. I hope that you find it as fascinating and valuable as I did. There’s a lot of info that we go into. There are a lot of rabbit holes that we could have gone down, and looking back, perhaps we should have gone down a few of those. In the end, I hope you find the extreme value in this interview. Without any further ado, let’s get down to the brass tacks and straight into the interview with Reed Goossens.
I want to welcome https://www.reedgoossens.com/ (Reed Goossens) to the show. Reed, welcome. Thank you so much for having me. You're from Southwest, Texas. Southwest all the way up near Amarillo. I've already given them a little bit of background, but as we were talking in the pre-interview, your podcast is one of the first that I listened to many years ago when I was kicking around the idea of this show. The reason why I wanted you on is because the older I get, I'm a firm believer that there are two types of people: people that get it done or make progress and people that make excuses. When I look at somebody like you and hear your story, it makes me feel like a slacker. It gives me lots of motivation. For the people in the US that don't know who you are in the real estate investing world, can you give us a little bit of your background? How did you get to Amarillo from Australia?
I live in Los Angeles. The whole premise is that I moved to the United States in 2012 to chase two things. It was both for love. It was to live in New York City. I fell in love with New York City and to chase a girl. I'm married. That was coming over here back in 2012 on a whim to say, “Screw it.” I fear regret and I'd hate to wake up when I'm 70 years of age and go, “I wish I'd lived in the United States for a period of time.” On a whim, I quit my job. I knew there was an awesome visa here for Aussies and rocked up in New York City. My background is in...
We've already discussed why you should use a note servicing company in Episode 55. but today I thought I would shed some light on the things you should consider when you are in the process of selecting one to be added to your team of professionals. Reasons to use a note servicing company Reason #1: they make life easier for the lender, because they handle the tedious stuff like sending late notices Reason #2: Collect and keep track of all the payments Reason #3: they deposit the money into your account and give you a monthly statement Reason #4: (And the very best of all) Remember, I am lazy by nature, and don’t want to spend a lot of time tracking the loans I make or chasing borrowers. They have people who will do it for you and the borrower pays the fees! You pass along the cost to your borrower. They pay for you not to be inconvenienced by your own investment. Sounds good to me – I really like it that idea! "Note all companies are not the same" ? Nobody is going to call me out onto the carpet for that one? That has to be the worst subtitle I've ever created for any episode. Well, I'll give you that it is the most dad-like joke I've crafted (I hope)! Things to consider when selecting a note servicing company 1 -Do they service your type of loan? Installment sale: Owner Finance notes/Wraps Mobile Home/Manufactured Housing loans? Multi-Investor Loans (aka Fractionated Loans) 2 - Do they provide additional services that your loan instrument may require? Impound/Escrow services for repair draw payments (not just taxes and insurance) Do they report to any credit bureaus? 3 - What is included with the standard or basic servicing fee? Welcome Letter to Borrower Payment coupons / online payments accepted? How often are payments processed? How long is the clearing period before disbursement of my funds? How are funds transferred? How far into the late notice period before additional fees will be charged? How are payments applied towards an account? Interest first, then additional principle, or any extra to be kept in escrow account? Reporting mortgage interest to the IRS (1098, etc.) 4 - BONUS - Here's a million dollar idea for you: Establish a relationship with your serving company and let them know you want to buy partials to first-lien notes, and/or discounted notes (perhaps non-performing). If they have a customer or associate Also, let them know you want to sell notes and partials to re-capitalize your funds more quickly. You may be able to use the servicing company to help you find not just prospects but real leads, and also sell to their customers or associates. Basically, what I’m saying is do a little legwork and networking. Make an effort to establish relationships and watch the leads come in. Social Links: https://www.facebook.com/PrivateLenderPodcast/ (Facebook) – Private Lending Podcast https://www.instagram.com/privatelenderpodcast/ (Instagram) – Private Lending Podcast https://twitter.com/PrivLendPodcast (Twitter) – Private Lending Podcast https://www.linkedin.com/in/keith-baker-344944155/ (LinkedIn) – Private Lending Podcast https://podcasts.apple.com/us/podcast/the-private-lender-podcast/id1329204836 (iTunes) – Private Lending Podcast https://podcasts.google.com/?feed=aHR0cDovL3ByaXZhdGVsZW5kZXJwb2RjYXN0LmNvbS9mZWVkL3BvZGNhc3Q%3D (Google Podcast) – Private Lending Podcast
Choosing someone to spend the rest of your life with must not only be about the spark and connection you feel with each other. Beyond that, you must ensure that you are on the same page when it comes to finances. In this brief and very personal episode, host, Keith Baker, imparts this advice in light of the things he is going through with his own relationship. More than anything, we want our relationships to be happy and long-lasting. What Keith is going to share may just be the key to make it yours.
Getting On The Same Financial Page With Your PartnerAdvice For A Lasting RelationshipIf you're looking for practical tips and advice on being a successful private lender and building wealth without banks or Wall Street, then you're in the right place. If you want to learn from my mistakes so that you can avoid them, then pull up a chair and pull yourself a stiff drink because this is for you. This is a bit of a Sunday sermon. I totally stole that from Andy Frisella, https://andyfrisella.com/blogs/mfceo-project-podcast (The MFCEO Project) and now he's got a new podcast called https://andyfrisella.com/blogs/realaf-podcast (Real AF). Do the math. Great podcasts, though. I do enjoy it. However, this Sunday sermon or it's a confession or confessional. I'm not even Catholic. While I have been driven, but also extremely fortunate to have learned how to generate a decent amount of money of income and how to play off offense in the money game fairly well. I'm not rich by any means, but I’ve done better than I thought I would with a philosophy degree. Let me put it to you that way. One area that I have completely lacked, and there are two areas. One is money defense, financial defense. I can't seem to put all my fingers in the holes in the dike. The water keeps coming out. I’ve got to say, this divorce thing has been a jacked-up blessing in disguise, but it's gotten me to look around and go, “I need to get my head out of my ass and get things going.” I previously admitted that my truck was repossessed while my ex-wife was three months pregnant with our first child. Now, as we move towards the future with this divorce, we often talk about the past and try to figure out where things went wrong, so to speak. From these conversations that we've been having, I want to provide you some unsolicited advice, to say the least. [bctt tweet="It is vital you get on the same page with your significant other when it comes to finances. Absolutely vital." username=""] Whatever your significant other is or beyond the binary thing I think, I'm not here to make any political statements. Whoever it is that you decide to spend your life with or to spend your time with, above all else, the only thing that I can beg and ask of you out there is please make sure that you and your significant other are aligned on the subject of money. It goes beyond spending less than you earn. Do both of you tithe? Do you both save for a potentially bleak future? Do you have an emergency fund ready to go? Can you both afford to drive a BMW, but choose to drive a Mazda or a Honda for the economic benefits and then take the savings by driving the lesser status symbol car? Can you take those savings and put them into income-generating assets to where you can buy a Mercedes or BMW for cash in the future? Unfortunately, my ex and I never got on the same page. That is one of the true and great regrets that I do have is that we couldn't seem to get there. I don't think I have to tell you how that turned out for us. All joking aside, what I would ask you to do is to stop whatever you're doing. Reach out to your partner or your significant other and tell them that you want to be on the same page. It's important to you for the longevity and the survival of the relationship. You want to be on the same page with them when it comes to finances. I'm not saying it's to agree on every point but come to some agreement. One spends a little too much money and the other one is...
Successful people are not as unique as we would like to think they are. They possess in them shared qualities that propel them to the top. Much is true when it comes to the private lending space. In this episode, host Keith Baker lets you in on these qualities of successful private lenders that you can easily have. In fact, they are very universal. He lists four key traits that you can take to your practice and rise among them. So pull up a chair and pour yourself a nice drink. This insightful episode is for you.
Four Universal Traits Successful Private Lenders HaveIf you're looking for practical tips and advice on being a successful private lender and building wealth without banks or Wall Street, then you're in the right place. If you want to learn from my mistakes so that you can avoid them, pull up a chair and pour yourself a nice stiff drink because this is for you. This topic was made possible from one of the free coaching calls I conducted. I want to thank everyone who took the time to email me with their questions and taking the time to set up an interview and web meeting and letting me help them define their lending criteria and answer questions or put some fears that they had at bay. I want to give a big thank you to Steve, who made this episode possible. This was one of his questions that he asked me towards the end of the call. I thought it was a good topic to discuss. What Steve asked me was, “What are the three key traits of a successful private lender?” I, fortunately, was able to write down and go back to my responses and I refined them a little bit so that I could provide them to you. As I was prepping, I came up with a fourth trait but it is not specific to private lenders, but I think the human condition in general, so I figured let's get started with that. [bctt tweet="My money, my terms" username=""] Self-AwarenessOur topic is the four key traits of successful private lenders. That first universal trait is self-awareness. I know that seems hokey and some gurus pounded on that, but it is very true. Learn who you are. It's good to know your strengths and your weaknesses. It's good to know where you excel in situations. Is it the analysis of looking at a deal? Is your weakness dealing with people? It used to be one of mine. That's why I joined Toastmasters to be able to speak to sellers ideally. It's helped me immensely with private lending. Being able to sit down and be honest and say, “I'm not so good at this.” I am not so good at record-keeping and that's why I love using escrow services or loan servicing companies because they take care of all that stuff for me. If you do everything yourself, you need to go ahead and file your 1098 mortgage statements, get the statements with the IRS and provide those to your borrowers if you haven't done that already. Knowing where are your strengths, your weakness, what makes you comfortable and what makes you uncomfortable is also a very good thing to know about yourself and how you respond in those situations. Usually, for me, something that is uncomfortable, I try to push forward a little. Not necessarily loan on that, but if I'm in some due diligence and I feel a little worried, I note that I stop, but at the same time I go back and re-evaluate and say, “What is it about this that gives me a bad feeling?” That's one example of using self-awareness to know where you're going to be. Are you comfortable with lending to people? Are you comfortable putting your money out there? Are you comfortable with learning the process and getting your hands dirty? Would you rather have more of a franchise model? They show you how to make the sandwiches, provide you everything to make the sandwiches and then help you sell the sandwiches. That's not just for private lending. I'm using private lending and real estate investment examples, but it's a good place to start with who you are as a foundation and as a person. What are your qualities? Are you disciplined?...
On today’s show, Keith Baker is joined by http://raysasser.com/ (Ray Sasser) and https://www.sellerfinanceme.com/ (Landon Rothstein) to discuss a niche topic that always seem to have a perceived risk - Subject 2 investing. What does it mean to purchase a property subject 2? Ray is known throughout the investor community as an expert rehabber as well as an expert transaction engineer. Landon is a full-time real estate investor and has teamed up with some amazing partners. Together they host one of the fastest growing real estate meetups in Houston. Don’t miss this episode as they explain Subject 2 investing and lending in the 2nd position.
Subject 2 Investing And Lending In The 2nd PositionRay Sasser & Landon Rothstein Explain Sub2 InvestingI’m going to bring on two guests that have been on the show before. They’re both full-time real estate investors in the Greater Houston area. They are my friends, https://www.linkedin.com/in/ray-sasser-47b12725 (Ray Sasser) and https://www.linkedin.com/in/landon-rothstein (Landon Rothstein). I always tell people to avoid second liens until they are very seasoned and confident in what they’re doing in private lending. However, this topic on subject-to, buying a property subject-to and possibly lending on what money the investor needs to get the seller out of the house. I’ve wanted to talk about this on the show, but I haven’t figured out the best way to do that because I want to learn about it from all angles, not just from the lending perspective but something to incorporate into my investing portfolio. Make no mistake, I’m neither endorsing nor recommending you incorporate junior liens into lending any sub-to deals. It’s a possibility. You can make money and you can lose a lot of money. It's just like any other thing, you’ve got to know what you’re doing and navigate through tricky waters. I want to shed some light on this topic from two people who utilize this strategy in their real estate every day and they’re not out on the circuit trying to sell a book.
I'd like to welcome back two previous guests. Please help me welcome, Mr. https://www.linkedin.com/in/ray-sasser-47b12725 (Ray Sasser) and Mr. https://www.linkedin.com/in/landon-rothstein (Landon Rothstein). This is Ray. I'm honored that you put me on the upper billing of the marquee. You're very welcome. Thanks for coming back on because we are going to discuss a niche topic that I have stayed away lending on these types of deals because of perceived risk. I understand that you are one of the masters of creating a subject-to deal with and then getting private lenders to fund the down payment to the seller. Let's go ahead and back it all up and explain in case nobody knows what it is. What does it mean to purchase a property subject-to? In a nutshell, subject-to is you're taking over the note, the existing financing that's already in place from the seller. A lot of people get involved with subject-to but they don't seem to know the difference between a real subject-to and an assumption. What we're doing is not an assumption. We are leaving the financing in the original seller's name and then we're making the payments for that person. To get there, we have to do some catching up over arrears. I might have to make a payment to a wholesaler. The wholesaler is bringing me the deal and sometimes the seller will want some money. There will be some money that'll take to get into that position. Once you're there, you usually have a nice low-interest rate. I'm getting interest rates. I've had one as low as 2.8%. They're generally around 3% to 4.5%, maybe 5%, which is a whole lot lower than I pay my private lenders. You know this for a fact, Keith, because you're one of them. The subject-to is pretty powerful once you get into them. I charge a lot more than 3% to 5%, don’t I? The main thing I was saying here with the difference between the assumption and taking over the position of the original seller is we're...
http://privatelenderpodcast.com/wp-content/uploads/2020/01/Neil-Peart-Poetics-Photo.jpg () Neil Elwood Peart12 September 1952 - 07 January 2020 Suddenly you were gone from all the fans' lives you left your mark upon.http://privatelenderpodcast.com/wp-content/uploads/2020/01/Neil-Peart-1.jpg () http://privatelenderpodcast.com/wp-content/uploads/2020/01/neil-peart-anthem-1.jpg () [caption id="attachment_2696" align="aligncenter" width="300"]http://privatelenderpodcast.com/wp-content/uploads/2020/01/neil-peart-obit.jpg () http://privatelenderpodcast.com/wp-content/uploads/2020/01/rush_peart.jpg ()[/caption] http://privatelenderpodcast.com/wp-content/uploads/2020/01/Untitled.jpg () Neil, thank you and goodbye
We all need to hire an attorney at some point in our lives. This is especially necessary when you’re in the private lending business. Today, host Keith Baker lists down the eight questions you need to ask yourself when hiring an attorney to do either your foreclosures or draft the documents. You don’t want to miss this episode because, at the end of the day, if your documents aren't right, it can cause a lot of headaches and can expose you rather than protect you.
8 Questions To Ask And Consider When Hiring An AttorneySelecting An Attorney For Drafting DocumentsIf you're looking for practical tips and advice on being a successful private lender and building wealth without banks on Wall Street then you're in the right place. If you want to learn from my mistakes so that you can avoid them and not repeat them, pull up a chair and pour yourself a drink because this show is for you. This is episode number 91, almost up to 100. I'm getting excited about that. One of the things that I get asked a lot is how do I choose attorneys to do either my foreclosures or draft documents. Fortunately, I only got one foreclosure and went with the recommendation of a friend. When it comes to having an attorney draft my documents, I like to have a slate or panel of them. Figured I'd go through that with you and hopefully share some insight into how my process is for doing this. Being a private lender, I want to mitigate as much risk and stay as secure as possible. That's when I want to convey over to you and especially if you're starting out. Even if it's your home state, I would not recommend lending in a state that had a lengthy judicial foreclosure process and low usury rates. That's a given. I wish we could dig a little more into that, but you don't want to lend in a state where there's a redemption period after foreclosure where the borrower can come back and make everything whole again and get the note going. The odds that they can't do it the first time, they’re not going to be able to even if they reinstated the adds. They’re not going to do it the second time. That's the reason I would suggest staying away from the redemption period states. Stay away from states that heavily favor the borrower or at least they have a very lengthy process to give the borrower a lot of time to make amends or do whatever they can to keep the note going. Since it's like New York, they have a very long foreclosure and lengthy process. It could take a couple of years to get somebody out and to get the collateral back to you. Not to pick on New York, but that is one example of a state that I won't lend in. Lend to a state whose laws are either the same or similar to Texas. It varies from state to state. What that basically means is you want a state that has non-judicial foreclosures, no redemption periods after the foreclosure is complete. That's one good thing about New York. They don't have a redemption period, but they might as well if it can take 2 to 3 years to get people out. They have a relatively short default period of 90 days, which I believe that's a federal law, not a state law. The acceleration notice period in Texas is relatively short, 21 days, from the time you file until the auction on the first Tuesday every month. That's how quick it can go down. Once the 90 days have been documented to fall to the notice accelerates gone out, all that fun stuff is gone. [bctt tweet="My money, my terms." username=""] Twenty-one days from the time you noticed the borrower until when you can get the house back or get your collateral back. Those are the states that I recommend you lend in and do your own due diligence, as always as the biggest caveat. There are 50 states and I only deal with the laws of one of those. That means 49 out there, at least 51 states out there that I don't know the laws. The eight questions and the things you want to consider when you're adding or looking for an attorney, especially for doc prep. This is where...
The term "private lending" has, for too long, been misused and misunderstood to the point where misconceptions are almost as prevalent as the truth. This is why defining private lending is so important in the first place. Host, Keith Baker, reclaims the use of private lending by redefining how it should be viewed. Private lending, at its core, is an investment and should be treated as such. Get back to basics with Keith, and see why and how private lending is for you.
Redefining Private Lending: Does Your Money Work For You?Are You Wanting An Investment Or A Job?If you are looking for practical old-world wealth building principles and techniques to be discussed, you're in the right place. If you want to learn from my mistakes in investing in real estate as a private lender, pull up a chair and pour yourself a drink because this show is for you. Before I get too far along, there is a nice little freebie at the end of this. Now that I've shamelessly attempted to pique your curiosity with the cheap marketing tactic, let's get down to the brass tacks and right to the heart of the matter. Taking some time off and switching jobs has been a very good exercise for me. It's gotten me some clarity about this show and where I want to take it. I just want to stop talking about it and start doing it. That's part of the trick at the end is getting moving, taking some action and getting a lot more clarity in my message, in my marketing and all that fun stuff. I'm hoping that I can shape and modify some mindsets for both of us and we'll see how it goes. We are in a rapidly changing world. The notion of 5G and what it's going to be able to do boggles my mind. I'm still hung up on nanotechnology from decades ago. There's so much out there, so much is changing. I'm just a guy, who am I? There's a lot of noise out there. There's a lot of people out there online and saying this, saying that. Some of them are ripping people off. I know some of these people. I don't like to admit it, but I do. During the hiatus, I was able to sit down and think about where I want to take this thing and what the mission is. I decided the first thing to do is to make some distinctions publicly on the show, in Facebook and everything else. The first misconception people have is they think that private lending is a way to get rich. It can be if you lend in an unethical, immoral or illegal way. It's like anything else. You can make as much money as fast as you can. If that is your intention, then this show is not for you. [bctt tweet="My money, my terms." username=""] If you are reading this, go ahead and stop it or unsubscribe because you'd be doing both of us a big favor if you did. That's the biggest thing I wanted to get out first. Distinction number two, I am not or nor is this show a hard money lender or a broker. Hard money lenders work for their money and so do brokers. I do not have any interest in taking somebody else's money at a lower interest rate and arbitrage it back out at a higher to somebody else. It's just too much work. I also don't loan to strangers off the street. That's what hard money lenders do. Plain and simple, my goal is to educate people and provide a little bit of help, some education and some avoidance techniques of how to be able to lend to real estate investors that you know and on projects that you understand. It's an education thing. I always wanted to be a teacher. With that distinction, I want to clarify that the mission is to help motivate people just like ourselves. Learn how to diversify their investments into the most passive form of real estate investing there is, that is being a private lender. [caption id="attachment_2665" align="aligncenter" width="600"] Defining Private Lending: Unless you hire a money manager to handle your funds, every investment requires some level of action from the person making it.[/caption] Also, seek alternatives to Wall Street, banks and brokers. It still bothers me
This list of 10 Secrets to Success was originally published in https://www.investors.com/ (Investor's Business Daily) in the early 200's. It has been hidden for years, only found a little while ago in the mess of my office. 1 - How you think is everything:Always be positive. Think success, not failure. Beware of negative environments.2 - Decide upon you true dreams and goals:Write down your specific goals and develop a plan to reach them.3 - TAKE ACTION - NOW!:Goals are nothing without action. Don't be afraid to get started. Just do it.4 - Never stop learning:Go back to school or read books. Get training and acquire skills5 - Be persistent and work hard:Success is a marathon, not a sprint. Never give up.6 - Learn to analyze details:Get all the facts, all the input. Learn from your mistakes.7 - Focus your time and money:Don't let other people or things distract you8 - Don't be afraid to innovate:Following the herd is a sure way to mediocrity9 - Deal and communicate with people effectively:No person is an island. Lean to understand and motivate others10 - Be honest and dependable; Take responsibility:Otherwise, number 1 through 9 won't matter at all Important Links:Private Lender Podcast on https://podcasts.apple.com/us/podcast/the-private-lender-podcast/id1329204836 (iTunes) Private Lender Podcast on https://www.facebook.com/PrivateLenderPodcast/ (Facebook) Private Lender Podcast on https://www.instagram.com/privatelenderpodcast/ (Instagram) Private Lender Podcast on https://twitter.com/PrivLendPodcast?lang=en (Twitter) Keith Baker on https://www.linkedin.com/in/keith-baker-344944155/ (LinkedIn) Keith Baker on https://www.biggerpockets.com/users/keithbaker (BiggerPockets)
I'm running a little behind schedule so show notes are a few weeks away. Sorry for any inconvenience -k
Not all are mindful of the laws that go along with private lending since some lenders base their transaction on relationships and trust. Although it all boils down to trust, being well-informed of the legal aspects of private lending will not harm anyone. In today’s time, there is a practical reality that people trying to raise a small amount of capital have limited ability to be compliant with securities laws, and this is what Attorney Amy Wan delves into. Founder and CEO of Bootstrap Legal, Amy breaks down the types of rules, regulations, and securities in private lending. As she explains when an investment loan becomes security, Amy reveals that lenders are much less regulated when you lend your own money to another investor. She goes in-depth on the event when you need to have a license when making loans, the legal documents required with investors, the process she does that make legal matters and paperwork less stressful to clients, and how she has brought digital and legal to smaller investors. On the side, she shares details about her podcast show, Law and Blockchain.
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Listen to the podcast here:
Private Lending And The SEC with Attorney Amy Wan Syndicating, Private Lending And SEC Compliance I’d like to welcome you to this episode. I’m very grateful to have the pleasure of speaking with an attorney who happens to specialize in helping investors handling the paperwork and the filings required by the SEC, Securities Exchange Commission. My guest, http://www.amywanlaw.com/ (Amy Wan), has an impressive resume to say the least. She lives on the leading edge of the financial and legal tech world and was named one of the Ten Women to Watch in Legal Tech by the ABA Journal, that’s the American Bar Association. I’m honored and grateful to have her on the show. I have a new slogan that I actually put on a Private Lender Podcast t-shirt. The back says, “Never trust, always verify.” Nonetheless, never trust, always verify is a perfect segue into an interview with an SEC attorney. Let’s go ahead and get down to the brass tacks and let’s get to the interview with Amy Wan.
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I’ve got a special treat for you. Our guest is Amy Wan, Founder and CEO of https://www.bootstraplegal.com/ (Bootstrap Legal). I am excited to have her on the show. Amy, welcome to the show.
Thank you for having me.
Thank you for coming out and being interviewed. You deal in an area of expertise of the law that’s beyond my scope of understanding. You’re bringing it down to where people like me can participate, and I definitely want to get into that part of it. I promise we’ll keep this about 30,000 feet as much as possible and we’ll drill down when we need to because I know the law. You can go down some rabbit holes. Tell us a little bit about yourself and how you became the securities and syndication guru that you are.
I actually started my career in the federal government. We were doing interesting things in DC, international trade and international regulatory affairs. When I moved back to LA, there’s not much of an international trade law industry out in LA except for import-export compliance paperwork which was very different from negotiating free trade agreements. I started over. I became general counsel of an early stage real estate crowdfunding platform at that time. The interesting thing about that crowdfunding platform is that I had to deal with two different areas of law, one on the real estate lending side and then one on the actual security side. We did private lending. We would make hard money, private money loans to folks flipping houses and then we would fractionalize those loans and turn it into a security and sell it to accredited investors through our marketplace.
I spent a couple of years there and I learned the ins and outs of both of those different sides of the industry. I went on to become a partner at a boutique law firm that
http://privatelenderpodcast.com/wp-content/uploads/2018/01/Funk-Foto.jpg ()
WHAT YOU’LL LEARN ON EPISODE 004:
How you can lose money and the ways to prevent that from happening
LTV = Loan to Value, the amount of the loan compared to the value of the property
ARV = After Repaired Value – the perceived sales price (based on recent comparable sales {comps}) for a reconditioned property
Listen and learn what Chris includes in his credibility book that he shows to prospective lenders and sellers of distressed properties.
I made my first commercial property loan to Chris on a deal he found in Texas City. Chris used my money for the acquisition of a distressed corner property (from an out of state owner) that was previously a Mexican restaurant and a convenience store. There were two small units in the back that were occupied by a barber whose rent just covered the mortgage payment, insurance and taxes (PITI). Chris refinanced the property to cash me out after 6 months and wrapped his commercial bank loan (bank approved) when he sold the property via owner financing to the end buyer. The end buyer recently defaulted on Chris’ note and he foreclosed on the property, taking it back with a ton of equity: a $60,000 loan on a property that appraised for $305,000!!!
And much more. . . .
WHAT http://privatelenderpodcast.com/wp-content/uploads/2018/01/Funk-Foto.jpg ()YOU’LL LEARN ON EPISODE 003:
How to evaluate property condition and “as is” value
How to analyze and fine tune comparable sales (comps)
How to find comps without MLS access
The biggest value mistake both lenders and borrowers are making in the current market
How flexibility and being easy to deal with can benefit the lender
Sage advice from one of the Houston area’s heavy hitting real estate investors
And so much more!!
Who is Chris Funk?
Contact: Facebook.com/funkmadelic
Chris Funk is a 36 year old real estate investor from Houston, TX. He dropped out of college at the age of 23 and began working hands on in the construction industry renovating homes for clients who were investors and landlords to learn the renovation business from the inside out with the ultimate goal of owning enough real estate that he could quit his job for good.
Chris had the dream of becoming a landlord and set out to learn wholesaling as a strategy to find good deals he could eventually hold as rentals. Chris networked at the local real estate clubs and made friends with some of the top local area wholesalers but was for the most part self-taught.
In 2010 Chris Joined the Houston Apartment Association (HAA) and earned the Certified Apartment Manager, Certified Apartment Portfolio Supervisor, and Independent Rental Owner Professional (CAM, CAPS, & IROP) Designations. Having the goal of owning a rental real estate portfolio Chris wanted to know as much about operating investment properties at his employee’s that he would eventually hire.
With a solid foundation laid, learning to renovate homes from the ground up, taking classes at HAA and finding below market deals as a wholesaler, Chris made contacts with several seasoned investors who owned rental properties and formed partnerships to take down the deals he was finding and keep them in house with his partners rather than wholesaling them to outside investors. Chris had the great deals and the renovation experience, and the partners had the money and the credit.
Fast forward, 6 years later, Chris owned 92 rental units at the age of 29 he officially was “retired” with enough rental income to live comfortably. He has done wholesale, owner finance, rehab flips, single family rentals and apartment complexes. He currently owns 115 units consisting of 2 apartment complexes, 2 four-plexes, 1 six-plex, and 9 single family rent houses and several owner financed notes.
Chris still operates a full time property management business and a full time wholesaling business with 3 full time employees and 1 part time employee. The majority of the properties he puts under contract now are acquired with private money or bank lines and then sold with owner financing or held as rentals.
Chris has been honored as a guest speaker at MyHouseDeals.com, Lifestyles Unlimited, Rich Club, Wealth Club, various podcasts, and several live radio shows over the years. Chris currently teaches real estate investing at Su-Casa University.
http://privatelenderpodcast.com/wp-content/uploads/2017/12/Steven.jpg (Steven Kaufman - Finance Enthusiast)
WHAT YOU'LL LEARN ON EPISODE 001:
CIAE = Credit Income Assets Equity
LTV = Loan to value
Steven’s prediction for the start of the next correction or recession and how his lending criteria will change
Companies that are not making money are trading as if they do
The Ben Franklin Close
[35:25] -80/20 Principle - 10% marketing, 10% underwriting
[36:00] – Use fear as a guide not a roadblock
“can I go get the resources I need to be successful in this?”
Get your copy of the Quest EXPO by clicking https://www.eventbrite.com/e/quest-expo-2019-recording-tickets-70516682295?aff=PLPodcast (HERE) It’s hard to say good bye, so I won’t. But I will say, I’ll be back!
If you’re looking for practical tips and advice on mitigating risks in your private lending, then you are in the right place. But if you want to learn from my mistakes so that you avoid them and don’t repeat what I’ve done then pull up a chair and pour yourself a drink, my friend, because this is the podcast is created for those just like you and me, who are looking to take control of their finances and passively diversify into real estate backed investments without banks, without Wall Street, toilets, tenants or termites. Ultimately, it’s my goal to create a tribe of lenders that act as the bank to active real estate investors in good times and bad, eliminate that the need for banks, to provide funding and, and, but, but not just the funding, but also the education for our kids.
I really do think it’s time to think about money a little differently. I don’t know what that means yet, but I’ll get there and we’ll figure it out. But definitely want to teach you, you know, talk about teaching kids about saving and utilizing money and it’s a tool. And how, you know, if we do this the right way, for example, the next downturn, we don’t know when it’s gonna happen, but you know, markets are cyclical stock markets, real estate markets. We’ve had a hell of a good run here, and at some point the market’s going to tighten up. I’m not saying win, I’m just saying, I think it looks, you know, pretty frothy. Some people that I admire and respect think the same thing, so we’ll, we’ll see what happens. But when the real estate market went, it goes down.
What happens? Generally speaking, banks don’t lend as much. What happened in 2008, the mortgage crisis, that was extreme, but thinking more of a normal, normal cyclical downturn, not a cataclysmic, a world financial crisis that we had. But that’s, I’m just getting long winded. Apologize there. But what I’m trying to say is the banks are going to stop lending or they’re going to tighten up their requirements to, to, they’re only going to lend to people who don’t need money. That is the, that is the reality of it. If you look as a private lender, that’s why I look at it too. If someone, if I smell desperation, you’re not getting my money at all. So I get it. The banks are there to make money. They’re a business. They, a lot of times they have boards and some have stockholders they have to to answer to, but you as a private lender do not.
Get your copy of the Quest EXPO by clicking https://www.eventbrite.com/e/quest-expo-2019-recording-tickets-70516682295?aff=PLPodcast (HERE) And that’s the beauty. When that downturn comes in, those bank stop, stop lending so freely. It’s the private lenders who come in, we’ll give those real estate investors the cash that they need to keep the housing market churning and chugging ahead. And that’s why I’m building the Tribe of Lenders. And I want to thank you for being part of that tribe by listening today. And I’m assuming you’re a, a lifelong listener now that we’re in 87 episodes in. But let me go ahead and get down to the brass tacks. I need a break!
I want to thank you for hanging in there and listening to the last eight minutes and being a listener of the show and as I say goodbye for a little while, the Germans say auf wieder sehen! So until the next time we see each other I would ask if you could do me a favor and, and leave an honest rating and review over at iTunes, stitcher, soundcloud, Google podcasts, Spotify, or whatever platform you use to, to hear my, my nasally voice.
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If you are not a beginner at investing, then this episode is for you. https://www.linkedin.com/in/garyboomershine (Gary Boomershine), the Founder of http://realestateinvestor.com/ (RealEstateInvestor.com), gives some tips on how to scale and grow your real estate investing and home buying business through REI lead flow. For investors in an ever-changing real estate industry, Gary talks about his https://reivault.com/about/ (REIvault) system and offers some advice on the strategic areas where he is lending. He also talks about the benefit of learning how to control sellers if you are the type who is always looking for deals. Whether you are a wholesaler, rehabber, conventional real estate investor, landlord, or just someone looking to get some deal flow, you will surely want to learn more of Gary’s tactics.
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REI Lead Flow Redefined with Gary Boomershine Automate Lead Generation And Setting Appointments With Sellers This episode is going to be a bit of a departure. It’s not for everyone. In fact, it’s not even for private lenders per se. This episode is for the conventional real estate investor, the wholesaler, the rehabber or the landlord. It’s not limited to those, but anyone who’s looking to get some deal flow. This is what this episode’s for. Unfortunately, this episode is not for beginners unless you happen to have a fat bankroll for marketing, a few months of marketing right out of the gate to prime the system. This interview is for the serious, seasoned and active real estate investors.
Those who are looking not just to get leads and then look for deal flow, lead flow, lead gen, but to close as many deals and have it done and brought to you on a plate. My new friend, Gary Boomershine joins us to talk about his https://reivault.com/ (REIvault) system. That doesn’t just give you a list of leads that you have to go then work and find the sellers or skip trace. His company puts appointments with the sellers in your calendar for you. It’s a pretty cool service and Gary explains it best. Let’s go ahead and get to the brass tacks into the interview with Gary Boomershine.
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Lender Nation, I have a special guest. Somebody who has a service or provides a service that any real estate investor could use. If you are a serious investor, you’d definitely want to read what this man has to say. Please welcome to the show, https://www.linkedin.com/in/garyboomershine/ (Gary Boomershine).
I’m happy to be here and I’m looking forward to being able to interact with you and your audience and deliver some good value to everybody that follows you.
I’m excited because, at first, I’ll be straight up with you and the audience. When I saw this, I was like, “Here’s a good chance to give someone some exposure but also bring the value to my show.” You have an affiliation with The Banker’s Code. You know all about lending and everything that I’m talking about, but you also have the https://reivault.com/ (REIvault), which is what I want you to talk about. Before we do that, I do have one-off curveball question. With a name like Boomershine, where are your people from?
It is a Mennonite name, Pennsylvania Dutch. I didn’t even know until I was in my twenties about that because we’re the only Boomershine family west of the Mississippi. My grandfather came out of Minnesota, a little area called Hutchinson. He was one of eleven kids, the youngest and snuck away. His mother said, “You’re going to stay on the farm but you should go to California.” My grandfather came out a total entrepreneur. He had a logging company and a gold mining company. He started a paper plant in San Francisco. The building’s still there. I come from a long lineage of entrepreneur families. In fact, we had a real estate brokerage in the San Francisco Bay area and all of us kids were part of that business.
I was a licensed real...
https://www.questtrustcompany.com/events/quest-expo-2019-houston/ (Quest Trust Expo) is one of the biggest gathering of self-directed IRA investors in the country where they learn what is needed in an ever-changing economy. Keith Baker shares his thoughts and takeaways from the Quest Self-Directed Expo – the biggest of which are creative investing and why reputation is everything. He also talks about some tales of woe he heard from fellow investors and meeting some people who are looking to deploy their capital or looking to fund and find deals.
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Creative Investing And Why Reputation Is Everything Thoughts And Ideas Taken From The Quest EXPO 2019 I don’t know about you but I, for one, am getting ready for the next downturn. I’m not doing anything drastic, but mentally getting prepared and going to start collecting the acorns and the cash. Because when there’s blood in the streets and the banks tighten up, it will be a private lenders’ paradise. It will be private lenders who provide the capital to keep the real estate market turning ahead. That’s why I want to build this tribe of lenders. I want to thank you for being a part of that tribe and for reading. Let’s go ahead and get down into the brass tacks on this episode. I wanted to give you my thoughts on the https://questexpo.com (Quest Trust Company Self-Directed IRA Expo).
Quest Trust Company Self-Directed IRA Expo The gang over at Quest stepped up and outdid themselves again this 2019. I’d like to thank everyone over there at Quest from Quincy, Nathan, Nate, Juan, Rebecca, Haley, Keaton. Most of all I want to send a big thank you to Anne Marie for having me speak on the Private Money Panel and for letting me be a part of such a truly great and wonderful event. Thank you. I’m already looking forward to the 2020’s Expo and that’s why I wanted to break my programming schedule and go ahead and talk about it. It was still on my mind and I’m still a little giddy about conferences and the expos. I’m giddy about it in what I learned, who I met and a lot of cool stuff.
Let me go ahead and dive right into that and I’ve met a lot of very interesting people. I call it brand newbies all the way to who barely have any capital or starting off and they’re investing in real estate investing career. I met a few newly-made millionaires looking for options, where to park some money and very interesting people from all over the country. They’re hard money lenders, lawyers and IRA specialists. Everyone at Quest is pretty much a specialist and they specialize in a certain area so that your questions can get answered very quickly. There were also gurus and coaches, typical seminar expo stuff, but there are a ton of people like you and me.
It was about a thousand attendees. I’m not sure how many vendors, sponsors and speakers, but it was another great expo. I spent as much time as I could watching it at the table and at the booth. Probably much to my detriment or the podcast’s detriment, but it was that how good it was. It was as long as the three-day weekend, but it was cool. There were a ton of people like you and me and those of us who are looking for more from our investments and retirement accounts. You’ve got to see that you could extrapolate that to life in general for we are the seekers and hopefully one day we’ll be the knowers.
Some of the classic mistakes of investors is trusting the borrower with the value of the property.https://twitter.com/intent/tweet?url=http://privatelenderpodcast.com/plp-085/&text=Some%20of%20the%20classic%20mistakes%20of%20investors%20is%20trusting%20the%20borrower%20with%20the%20value%20of%20the%20property.&related (Click To Tweet) Tales Of Woe I did feel like there were a lot of kindred spirits there with many of the attendees and the vendors. This is why we drag our hungover sales down...
Have you ever had your lien wiped out when the first lien foreclosed? In this episode, Keith Baker shows you a way to recover your loss. He talks about a tool you can use as a private lender – your right to sue for a deficiency judgment. Sharing from his own experience of having to get a ruling and suing a borrower, Keith also names a couple of things you need to check and prepare when getting a deficiency judgment.
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Deficiency Judgments And Why You Should Use Them If you’re looking for practical tips and advice on mitigating risk in private mortgage lending, then you are in the right place. If you also want to learn from my mistakes so that you can avoid them, then have a seat because this show is created for those who are looking to take control of their financial future and diversify their investments without banks and Wall Street or toilets, tenants and termites. I’d like to create a tribe of private lenders that act as the bank to active real estate investors and change not only the lending landscape but also the landscape and the landscape and the methods in which we teach our children about money. Together we can all prosper without the too big to fail banking systems.
When The World Is In Flux For Private Lenders Let’s face it, the world is in flux and it’s time for some radical acceptance of some alternative ways of making money, legal, ethical and moral. I want you to think about this for a second. When economies go into recession, the money supply gets tight. Banks aren’t as willing to loan as much or they’re not willing to loan to risky borrowers. One thing that banks have over private lenders is the multiplier. If a private lender has $100,000 in an account, that’s all that private lender, he or she, can lend. It’s this $100,000. However, if a bank gets $100,000 in deposits, the federal government allows it to loan in some cases up to $1 million or more and that’s a multiplier. If you have $100,000, the federal government will allow you to loan $1 million. That’s a ten times multiplier.
In recessions, those multipliers are reduced. When they reduce, the money supply gets tight and banks stop lending to people who have no business. First off, the first people are the ones that have no business borrowing money on properties they can’t afford. It trickles down. It tightens up all around. In deep recessions, they will only loan you money if you don’t need it. That’s the best position to be in credit-wise. It’s to not need money because banks will be coming after you left and right with all types of offers. When the banks won’t lend to real estate investors, I will and this is something I should clarify a little bit. I will loan in my backyard market and others if I’m comfortable with my level of knowledge in that particular market. Because when everyone’s running for cover, CNBC, CNN, NBC, Fox and all the faux news and everybody else, it says, “Run for the exits.”
When there is blood in the streets, that is the moment when you want to lend. As a private lender, that’s when you’re ready to go because that’s when the sweet deals will be created. Those are the deals that I want to lend on. Because a good and well-seasoned active investor with private lenders on speed dial will be able to close fast. When the economy sucks and your borrower can close within two weeks on a property, they usually get a good deal. What I’m saying is it lowers the loan-to-value. Let’s say if the house after it’s fixed up, the after repaired value is $100,000. In tight economic times, a $100,000 house that needs $10,000 in repairs to get it up to $100,000, that investor can get it for $50,000 or $40,000 all-in.
A good and well-seasoned active investor with private lenders on speed will be able to close...
Sometimes it’s in the things that go wrong where we get the best lessons in life. In this episode, let https://www.linkedin.com/in/KahunaInvestments/?locale=de_DE (Corey Peterson), the owner of https://kahunainvestments.com/ (Kahuna Investments), inspire you with his rags-to-riches story. When a day of disappointing his son made him realize that he was not living life on his terms, Corey set out on a bold journey to learn how to raise capital to achieve financial freedom. This once car salesman went on to become a real estate expert, raising capital in the millions and finally getting his piece of “sunsets and palm trees.” He talks about how his eagerness to learn and to adapt to changing trends led him to investing and private lending and to the success he is today.
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Investing And Private Lending with Corey Peterson I’d like to thank you for stopping by. The other thing I’d like to thank you for is lending me your time. If you’re looking for practical tips and advice on mitigating and eliminating risks with your private mortgage lending, then you are in the right place. If you’re going to learn from my mistakes so that you can avoid them, then pull up a chair because I created this show for those select individuals who are looking to take control of their financial future by doing what it takes to create wealth in the marathon of life with old-world techniques and values.
I’m looking to create a tribe of lenders that will disrupt the way we think about money and how we can grow wealth. I also want to change the way we teach our kids about money. I think it’s antiquated to say the least. Before I get in our episode, I wanted to invite you out to the Quest Trust Company Self-Directed IRA Expo, which is going to happen in August 23rd through the 25th, 2019 at the Royal Sonesta Hotel in Houston. I believe there are tickets still available. I know the VIPs have sold out, but the general admission, which are still a good deal are available. Go to http://privatelenderpodcast.com/expo/ (PrivateLenderPodcast.com/expo) for the link there for tickets and use the promo code, PLPodcast, for your 25% discount.
For this show, I had a gentleman reached out to me and said, “I’d like to be on your show.” I said, “What do you do?” “I do apartments.” I was like, “Perfect,” because my idea for the show, the first year it would be all single-family. The second year, we would move into some multifamily. However, this is a fluid dynamic podcast as all things in this life. I’ll have some multifamily experts to come on. Our guest, https://kahunainvestments.com/ (Corey Peterson), I believe he’s out in Arizona. He reached out and I got in contact with him. I like him enough. I’ll put him on the show because I want someone to start scratching the surface on multifamily.
I’m not saying I’ll do it every month, but I would definitely at least a couple of times a year in 2019 to touch on multifamily and how private lenders can fit into the syndications and other things. I like Corey. He’s letting people know what he does and they can reach out to him, which is the right way to do it. He can explain and build that rapport, build that relationship so he can invest under the auspices of the SEC. I want to put it out there for the Lender Nation because I know some of you have inquired about multifamily and other things besides just single-family. This is my first foray into multifamily. Let’s go ahead and get down to the brass tacks and to the interview with Corey Peterson.
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I am honored to have Corey Peterson on the show. Corey is the Owner of https://kahunainvestments.com/ (Kahuna Investments) and he strives to provide his investors with stable cashflow returns and long-term capital appreciation by buying multifamily apartments. Corey has managed to acquire over $95 million in real estate across the country and...
Finding success alone in real estate is not how it works, most especially in this time and age of connectivity. That is why coming together in one place to network and, at the same time, learn is a beneficial opportunity to grab. One great example of that is an expo, and Nathan Long, the President of Quest Trust Company, shares in this episode their Self-Directed IRA Expo. Bringing in investors, lenders, and borrowers in this event, Nathan talks about the value of having a venue to separate your obligations and duties and just build relationships with others in the industry. He shares some great investing, laying down the problem most people do in self-directing. Don’t miss out on more wealth-building insights and stories about private leading and cross-collateralization as Keith Baker and Nathan start you up on some education. —
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Nathan Long on Self-Directed IRA Expo, Private Lending, And More I have the distinct pleasure of interviewing the President of https://www.questtrustcompany.com/ (Quest Trust Company), Mr. Nathan Long. Speaking of the Quest Trust Company, they are the sponsor of this episode and we’re a few days away from their Self-Directed IRA Expo. It’s an extravaganza. 2018 was a top-notch event held in Dallas, about 500 attendees came in and attended two days. This 2019, they’re going to do three days and they’re expecting about 1,000 if not more. I know tickets are going fast. If you do want to get your tickets and get a 25% discount, go to http://privatelenderpodcast.com/expo (PrivateLenderPodcast.com/expo). There will be a promo code and a link that you can get a 25% off your ticket, your admission, if they still have them. Go check that out. I know they were selling like hotcakes. Back to Nathan Long. He’s the President of Quest Trust and has put on a great expo. We’re going to talk about that here. I do want to forewarn warn you that I had this great interview already mapped out and bullet-pointed and all this stuff that I was going to talk to Nathan about. All of that went out the window and we ended up shooting the breeze so to speak. Let’s get down to the brass tacks and get to the interview with Nathan Long.
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I’m honored to have Nathan Long. He’s the President of https://www.questtrustcompany.com/ (Quest Trust Company). Nathan, welcome to the Private Lender Podcast. Thanks for coming on.
I appreciate you having me.
You’re going to be the last interview episode before the big Quest Expo. Let’s go ahead and talk about the 800-pound gorilla in the room and what a great event the https://www.questtrustcompany.com/events/quest-expo-2019-houston/ (Self-Directed IRA Expo) is.
It’s so cool to hear that. When the girls came to me and said, “We want to hold one of these expos.” I told them, “No. We’re not doing that. We’re not in the expo business. That’s not what we do. We help other educators. I don’t want to feel like I’m in competition with people that are selling coaching or education.” They looked at me and said, “We’re doing it.” I said, “If you want to do this, then I have one rule. Every ticket you get, every vendor money that you get goes back into the expo. It’s a zero-profit point for Quest,” and then so many people showed up. They’re so happy. I think it’s because it got this momentum and the speakers got better and they got so excited. More people come and then they would add another thing or add this, they’ve constantly kept it exciting right up to the end. I know they had a little app that people were still on that app communicating months afterwards about deals and stuff and making deals on it. It was cool. I’m proud of them.
They did a bang-up job last 2018. I consider myself lucky having had a table and being on a panel and being able to talk. That was fun. It was a lot bigger than I expected. I got a...
Keith Baker gets down on the basics of private loans. The three rudimentary loan concepts upon which creative lending and private lending are built are the interest-only loan, the amortized loan, the balloon payment. Learn more about these types of payments as Keith dives into each one, and prepare to get your tickets to the Quest Trust Company Self-Directed IRA Expo in Houston this August 23rd through the 25th, 2019. You can go get a 25% discount off of those tickets at http://privatelenderpodcast.com/ (PrivateLenderPodcast.com)./Expo by using the promo code “PLPodcast.” —
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Interest Only, Amortization, And Balloons The Basics Of Loans – Part 1 I’ll be talking about the three basic or rudimentary concepts of promissory notes, lending money and structuring loans. The beauty of private lending is that you can be very creative in the way that you construct a note. I consider these productivity building blocks for the private loan that we’re going to talk about. It’s basic math accounting stuff, but I figured that I get enough questions from time to time at REIAs that it’s worth addressing. First, time is running out to get your tickets to the Quest Trust Company Self-Directed IRA Expo in Houston this August 23rd through the 25th, 2019. You can get a 25% discount off of those tickets at http://www.privatelenderpodcast.com/expo (PrivateLenderPodcast.com/expo). Use promo code PLPodcast. I also want to tell you that the Private Lender Podcast is teamed up with https://www.questtrustcompany.com/ (Quest Trust Company) and we’re going to coordinate a happy hour/meetup at The Axis Lounge in the Royal Sonesta Galleria the evening of August 22nd, 2019. That’s when after all the vendors are finished setting up, there will be vendors, speakers, sponsors of the expo. There will be attendees, VIP, general admission attendees.
This is going to be a pretty dense group of people. The Quest Expo draws in people from all over the US. Because of that, we decided we’re not going to get sponsors and have email lists and chicken wings and pizza. We were trying to minimize the tire kicking and if you want to come and hobnob with these people, you don’t have to pay. You can just come on out. The food and drink will not be free. You can go to my https://www.facebook.com/PrivateLenderPodcast/ (Facebook) page for more information. I highly recommend that you come out. Let’s go ahead and get down to the brass tacks in our topic, which is the three rudimentary loan concepts upon which creative lending and private lending is built.
These are quite simply the interest-only loan, my favorite. There’s amortization or the amortized loan, and as our trusty old friend, the balloon payment. I’m a big fan of the balloon payment. It’s a nice trigger for default in case you’ve got to get your money back through the property. It can be quite useful and you don’t see it too much on residential, but you do see a lot of balloon payments in a commercial. Let me dive into number one, and that’s the interest-only loan. There’s a supplement to this. I have an https://www.dropbox.com/s/q05v0dj4qasrowc/Episode%2081%20Amort%20Schedule.xlsx?dl=0 (amortization schedule). It’s a basic investor-friendly amortization schedule and it has an option for interest-only. You just get your monthly payment.
With the interest-only loan, you don't have to worry about how much is going to principal and how much has gone to interest.https://twitter.com/intent/tweet?url=http://privatelenderpodcast.com/plp-081/&text=With%20the%20interest-only%20loan%2C%20you%20don%27t%20have%20to%20worry%20about%20how%20much%20is%20going%20to%20principal%20and%20how%20much%20has%20gone%20to%20interest.&related (Click To Tweet) The beautiful thing about an interest-only payment is if you loan somebody, say $100,000 at 12% for a year, then...
When looking at a private loan or lending to somebody, doing due diligence is of utmost importance. You need to keep yourself safe and keep your money even safer. H. Quincy Long, the Chief Executive Officer of Quest Trust Company, talks about his due diligence process when he makes a private loan. He also talks a little bit about lending across state lines, some of the good and the bad there, and what he does to help mitigate risk and make himself feel comfortable with making that loan across state lines. Quincy has been a licensed Texas attorney since 1991 specializing in real estate, and has been a fee attorney for American Title Company. He is also the author of numerous articles on self-directed IRAs and other real estate related topics. —
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Due Diligence & Lending Out Of State with H. Quincy Long A Conversation With My first Private Lending Mentor I have a very special guest, Quincy Long, the Founder and Creator of https://www.questtrustcompany.com/ (Quest Trust Company). As many of you know, that is the self-directed IRA custodian that I use because they’re in my hometown. The whole reason why I am a private lender is because of Quest Trust Company and all the great education and networking that they have provided their clients over more than a decade now, a lot longer than that. I’m going to have Quincy talk about his due diligence process when he makes a private loan. We also get to ask him a little bit about when he lends across state lines. What are some of the good and the bad there? What he does to help mitigate risk and make himself feel comfortable with making that loan across state lines. This episode is sponsored by Quest Trust Company and their Self-Directed IRA Expo, which will be held in my hometown, Houston, this August 23rd through 25th, 2019. You can go to http://www.privatelenderpodcast.com/expo (PrivateLenderPodcast.com/expo) to get the links to the ticket and use PLPodcast as your discount code. You will receive 25% off of your tickets. I’m excited to have one of the smartest people that I know in the real estate investing world and probably on the planet in general. Let’s go ahead and get to the brass tacks and the interview with Quincy Long.
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I’m honored to have Quincy Long from https://www.questtrustcompany.com/ (Quest Trust Company) on the show. Quincy, welcome to the show.
Thank you for having me.
Normally I would ask for your origin story, your comic book story or where you came from. I know you used to be a title attorney. You probably tell your story best. Tell us how you got to where you are now.
It’s an interesting thing. I’m a serial entrepreneur. When I first started the company or the predecessor to the company, what I did is I was a fee attorney for American Title Company. I closed lots of real estate transactions and had a self-directed IRA. The guy that says I’m not only the president of a hair club for men, whatever he says, I’m a customer. I had a self-directed IRA and I had all these real estate contacts. One day my third-party administrator at the time said, “We wanted to sign affiliate offices throughout the country.” I said, “Sign me up. I’m bored with what I’m doing.” I had no idea that was my interview. Fast forward, here I am after many long years and lots of twists and turns with Quest Trust Company at Texas Trust Company in direct custodian.
I fault you for getting me into private lending because it was at the predecessor company, it was in ‘08 or ‘09. I came to the free education that you were putting on in that little triangle room that held about twelve people.
That was a while ago. We got most of the first floor of the building now.
I know Quest Trust is pretty much the first floor. Your education room is huge with lots of IT and everything. It was those classes that I went to and took my wife to and say, “We need to do this...
Like most of those who get into this industry, Rashaad Rasberry saw real estate as a way to generate wealth. He did just that working as a real estate agent helping clients in their buying and selling experience. In today’s episode, Keith Baker talks with Rashaad about single-family comps and ARV, as he shares his thoughts on Houston pre- and post-Harvey. Having worked with investors and cash buyers, Rashaad walks us through the differences between the two. He also goes deep into his area and talks about comps from a realtor’s point of view – from what to look for in a property to the kinds of buyer behavior. —
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Rashaad Rasberry: Looking At Comps From A Realtor’s Perspective How To Comp An SFR Property You’re going to get some bombs dropped on you. I’m excited about this episode, our interview with https://cpgsellshouston.com/about (Rashaad Rasberry). If you’re looking for practical tips and advice on mitigating and eliminating risks with the investment vehicle known as private mortgage lending, then you’re in the right place. If you also want to learn from my mistakes that you can avoid them and the mistakes of others, then have a seat. This is the show that is created for those who are looking to take control of their financial future by doing what it takes to create wealth in the marathon of life with old-world techniques and values. I’m looking to create a tribe of lenders that will disrupt the way we think about money, not only the way we think about money, but especially the way that we teach our kids about money.
Together, we can all prosper without the too big to fail banks and brokers. This episode is sponsored by https://www.questtrustcompany.com/ (Quest Trust Company) and their Self-Directed IRA EXPO being held in Houston, my backyard, from August 23rd to 25th, 2019. I attended in 2018. I was a vendor and I’m excited to take part in the second annual Quest EXPO. Quest does go out of the way to create these wonderful networking and education opportunities that benefit all types of investors. If you’re within earshot, I highly recommend you make the trip to attend. When you do, stop by and say hi to me. I love to meet my audience. I’d love to meet other investors. I love to hear how people get creative in financing. Sometimes it’s stuff that I haven’t thought about or haven’t heard about. Go to http://privatelenderpodcast.com/expo/ (PrivateLenderPodcast.com/expo) for the link to purchase your ticket. That’s not an affiliate link. I don’t get any money. As everyone knows, I want to beat Scott Carson over at https://weclosenotes.com/ (We Close Notes). He won in 2018. He got the most tickets sold. I’d like to beat him. He’s a great guy, but I love a little friendly competition. When you go to that website, use promo code, PLPodcast, for 25% off the already low-ticket price. The bills have been paid and now it’s time to get down to the brass tax. In this episode, I have the pleasure of speaking to a new friend in the real estate investing world. I’m excited that he accepted my invitation and took time to come on the show. Let’s go ahead and start talking about single-family comps with Rashaad Rasberry.
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Lender Nation, I’d like to welcome https://cpgsellshouston.com/about (Rashaad Rasberry) to the show. Thank you for coming on and agreeing to come on and allow me to abuse you with some questions.
Thank you, Keith. I’m happy to be here. Hopefully, the abuse is minimized but we’ll see how we fare towards the end of the show.
A little background, Rashaad and I met not through real estate, but through soccer. Our daughters played on the same team together. I see him wearing a realtor shirt. I’m like, “Real estate.” One thing led to another, one decent season of soccer with some kids. Now, here we are. I’d like you to give us a little background about yourself. Let the Lender...
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Today’s episode is going to be geared for newbies or people who might be unsure how to start or where to kind of start the conversation with a potential borrower and it goes hand in hand with a sort of an announcement, I’m proud to announce. Happy to announce, relieved to announce that you can finally now get your copy of the private lenders loan application Guide and checklist over at the website, privatelenderpodcast.com and I’m going to kind of walk you through it a little bit today. So, if you have don’t have it yet. I would, you know, go get it and save this episode for later when you can sit down at a desk and kind of look through it. So if you’re running, driving to work, obviously you’re not going to be able to do those things or at the gym.
http://privatelenderpodcast.com/expo/ (Click here to get your discounted tickets for the Quest Trust Company’s Self-Directed IRA Expo) GET TO A SAFE SPOT
So if you have to then go ahead and pause it and come back later. You can go to the Private Lender Podcast.com and just sign up anywhere, any sign up form that you see, name an email, fill that out and you will get the private lenders loan application Guide and checklist. And I put it together to kind of walk through a couple of ideas or themes and notions. And I’m going to go through those with you here today. I’ve always said that when it comes to a loan, I like to look at the person a their process and then the property. And that’s what I lay out in this, in this checklist, you want to know how much real estate investing experience they have if they’re just starting off or if they’re new, politely send them over to hard money lenders. That’s what they’re there for is to really help new people, new people, newbies, first-timers, be successful and let them do it with hard money, not yours.
LOOK FOR GRAY HAIR
That’s, that’s my suggestion. Look for what you’re, you know, if you have a borrow who’s been doing this for 20 years and they’re a flipper and they continue to flip, that’s great. That’s someone you might be comfortable with, especially if you have a good relationship with them. If you have a flipper or let’s say, let’s say you have a landlord who wants to go into flipping that process, I’m not too comfortable with because here’s somebody who has succeeded as or succeeded as a flipper, rehabber and now it’s to switch gears. I’m sorry, I just messed that up. Didn’t I? Someone who’s successful as a landlord, but now they want to switch gears and get some quick cash again. I would send them over to the hard money folks until they get a few flips under their belt. It’s a, it’s a little bit different game and I like to invest with people who know what they’re doing and stay in their lane.
So that is a touch on the person you want to know if do they have, what’s the record like in not just a criminal record or any, what was their record as a person do that? Have they been arrested a lot? You know, one or two times. Okay. Or not. I’m saying, okay, but what was the, what were the circumstances behind, do they have judgments against them? Have they been sued? Because here’s it. This is where it gets tricky because I, I’m trying to think of someone who’s landlord for a very long time who at least wasn’t threatened to be sued or contacted by attorneys, by tenants that know how to game the system so to speak. Uh, and I’m not trying to condone slumlords or anything like that. It’s just I know some good people who have been sued, uh, as landlords frivolously, but, um, unfortunately sued nonetheless.
BE JUDGMENTAL
So if they do have judgments or they have been sued, find out why. You know, are...
Indemnity is an insurance term that is often misunderstood. The word indemnity comes from the Latin indemnis, which means unhurt, undamaged, or without loss. That is at the heart and soul of every insurance policy. Essentially, if something bad happens, that policy will get you back to the position you were in at the moment before the loss. Learn more about property insurance and the concept of indemnity as Host Keith Baker gets into the heart of the whole principle – from the reimbursement to the claims process and conditions for closing. —
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Property Insurance And The Concept Of Indemnity We’re going to talk about insurance, everyone’s favorite subject. Probably one of the most boring things in the world to talk about is insurance. However, as a private lender, insurance policies keep those properties that we invest in and we put liens upon. It keeps them safe and keeps us safe and our borrower safe. They’re a good thing. We want to talk to you about property insurance and the concept of indemnity, but before we get into all that fun stuff, I’d like to direct you over to the http://www.PrivateLenderPodcast.com/Expo (PrivateLenderPodcast.com/expo). This will be a link to take you to get tickets to the Quest Trust Company Self-Directed IRA Expo that’s happening in Houston. You get a 25% discount with the promo code PLPODCASTS. I don’t get any money from the tickets, but I get pride. Whether it’s realistic or not, my goal is to drive as many people more than any other sponsor at this event because it’s a cool thing to do. August 22nd, the night before the expo, there’s going to be a happy hour at the Royal Sonesta Bar. Come on out if you’re going to be in Houston. You can meet the vendors, a lot of VIPs and other people from Quest. I look forward to seeing everybody.
Let’s get into the heart and matter of the episode. Let’s talk about property insurance and the concept of indemnity. It is an insurance term that is often misunderstood. I want to walk you through a couple of terms and this is one of them. The word indemnity, to put you completely back in school though, it’s a Latin root, indemnis meaning unhurt, undamaged or without loss. That is at the heart and soul of every insurance policy. If something bad happens, then that policy will pay you back to get you to the position that you were in right before the incident occurred. To get back to where you were at the moment before the loss, that’s the whole idea. You’re not supposed to profit from insurance even though I think a lot of people do when it comes to claims, especially I’ve seen on houses. You can do some of the work yourself, save some money. You can make some money. The whole principle of the insurance is to put your property back to where it was right before whatever that incident was. That peril that occurred, whether it would be a hurricane, tornado, fire.
Indemnity insurance is a contractual agreement or an insurance policy in which one party guarantees compensation for the actual or potential losses that are sustained by another party. The insurance company promises to compensate or to pay for the cost of the insured. These policies indemnify or reimburse the assured against claims. That is where the big hang-up gets is with reimbursing. Reimburse is to pay a sum the money that has been spent or lost. The moral of that story is you must spend money in order to get the insurance money. That is the principle behind insurance policies. You’ll say, “Keith, State Farm cut me a check to get started and told me how much I was going to get for my whole claim and I hadn’t even spent a dime.” That often happens with consumer insurance because they’re afraid of bad faith. They don’t want to be seen as not handling claims properly. They’ll come in and a lot of times they’ll go ahead and put down...
Nate Hare from the Quest Trust Company shares his knowledge about self-directed IRA. Quest Trust Company is a premier self-directed IRA company that enables clients to use IRAs/401k(s) to purchase real estate, notes, private entities, and other non-traditional investments. Nate talks about what their company does, how they started out, and the aspects that make them special among many other similar companies. He also gets down on their Quest Expo and gives us a brief walk through what investors can reap from simply attending it. Learn more about self-directed IRAs and how you can invest it in this episode. Get educated to empower yourself to make good investments happen. —
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Reaping More From Your Self-Directed IRA with Nate Hare Nate Hare describes the Two Most Powerful Accounts to Grow Your Wealth My goal is to create private lenders and to show them how to help keep their money safe while building wealth with old world pragmatism and without banks or Wall Street. If you’re looking for a way to learn how to build wealth by utilizing time-tested methods in this ever-changing world and digital world, then you are in the right place. This episode is yet another first on the show as I have the honor of interviewing Nate Hare from the https://www.questtrustcompany.com/ (Quest Trust Company), formerly Quest IRA. He is the first repeat victim on this show.
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We have the first ever two-time guest or repeat guest on the show. Please help me welcome Mr. Nate Hare from https://www.questtrustcompany.com/ (Quest Trust Company). Nate, welcome.
Thank you very much.
Nate, welcome back to the show. Thank you so much for coming on and we’re going to get into some cool topics related to private lending and not only self-directed IRAs but other accounts that are just as if not more powerful than a self-directed IRA. A real quick refresher, if you want to go back and listen to Nate, it’s http://privatelenderpodcast.com/plp007/ (episode seven). With that, I’d like to turn it over to you and tell us all about the wonderful world of self-directed IRAs and other accounts.
Self-directed IRA is the business that we’re in. It’s funny how I ended up in this business. I never had any idea of self-directed IRAs and I never had a plan to get into the business because I was a lender like you. I worked for big banks and small banks. I was always interested in lending, numbers and real estate and then I found this great company, Quest Trust Company. It taught me about doing those same type of investments, lending, buying real estate and all the things that we’d like to talk about but do it completely tax-free within retirement accounts. That’s what we call a self-directed IRA. Self-direct is a marketing term. Most people don’t realize it has no legal meaning behind it. We allow people at Quest Trust Company to use their IRAs or old 401(k)s or other retirement accounts to buy notes, buy real estate or buy non-traditional assets within the retirement account and reap all the tax-free benefits that the IRAs have given.
Thank you for doing that. Without Quest Trust, this show wouldn’t be here. You were the ones that got me started down this road many years ago and Quincy was holding small classes on Tuesday nights.
What a lot of people don’t realize is that Quest Trust Company is a company with 100 employees and managed $2 billion in assets, but the grassroots start of the company was through a private lending meetup that Quincy started way back in the day. He had a self-directed IRA and he was looking for new investment opportunities and he liked being a lender, but he found out when you’re a private lender, you’ve got to go out there and network and find some off-market deals. The best way to do that is he formed his own little local meetup group. All of these people have retirement accounts and they basically met once a...
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Greetings lender nation, and welcome to episode 75 of the private lender podcast. I’m your host, Keith Baker. And I’d like to thank you for sharing your time with me today. I’ve got an interesting episode for you today – I look, I’ll just get to the point I’m going to tell you about probably the biggest mistake I made as a lender and how I lost money on a second lien and I’m hoping it’s gonna be a little cathartic. Hopefully no tears, not too many, but I do hope that you can learn from my mistake and protect yourself a hell of a lot better than I did. But before I get into that sob story, I do implore everyone listening. If you can hear my voice, please go to privatelenderpodcast.com/expo that’s EXPO and there you can get the link and the Promo code to the Quests Trust Co.’s Self-Directed Ira Expo in Houston this August 23rd through the 25th and if you use the Promo Code PLPodcast, you can get 25% off your ticket.
Important Links:
https://www.eventbrite.com/e/quest-expo-houston-tx-tickets-49528424852?aff=ThePrivateLenderPodcast (Quest IRA Expo)
Private Lender Podcast on https://podcasts.apple.com/us/podcast/the-private-lender-podcast/id1329204836 (iTunes)
https://www.facebook.com/PrivateLenderPodcast/ (Facebook) – Private Lender Podcast
https://www.instagram.com/privatelenderpodcast/ (Instagram) – Private Lender Podcast
https://www.linkedin.com/in/keith-baker-344944155/ (LinkedIn) – Keith Baker
https://www.biggerpockets.com/users/keithbaker (BiggerPockets) – Keith Baker
And it’s our, it’s already a pretty low ticket price. I think it’s like 100 bucks for three days. General admission. If you want to do the VIP, I think it’s around three but a 300 that is, but definitely worth it. I went to the first one last year. I loved every minute of it and in fact I’m going to try to bring the kids out so that they can man the booth so I can go see more of the uh, of the speakers because it’s quite interesting to see how other, you know, it’s not just real estate, but it’s interesting to see how people use their self directed Iras and uh, you know, just the many aspects that are available to you. It’s actually a pretty cool thing. So again, privately to podcast.com/expo for your link and 25% off Promo code p l podcast. Okay, so let’s get into the sob story and I haven’t even prepared any notes for this. I might fumble through a little bit because, uh, I’m not gonna, I’m not sure if I want to get everything down that I want to get down, but here we go.
I always stress to people, especially when you’re starting off, never ever lend outside of the first position. Don’t take a junior position lien, don’t take a second lien and not because you can’t do it safely, but for starting off. A lot of people come to investors and say, oh, I already have the money for this. I need a second lien to basically fun there. Their costs through the, through the deal. It’s the pay for the primary lender. And I know guys that do that and they pay 8% and no more. And they are successful in this, they are pretty good businessmen – they’re not your casual real estate investor and it works in that case. In this case it doesn’t. And I’ll have to explain the background a little bit. A friend of mine wanted to do a rehab on a house that had been flooded after hurricane Ike and not Harvey, but I Ike and uh, it was a friend and then I was going to be charge a lower interest rate and we were basically going to kind of help each other out – trading consulting services.
There is huge mistake. Keep, keep the loan a loan – only money, interest points, keep it simple and don’t try to get, you know, services or consulting or education or anything like that. Except when you know, I mean...
One of the best ways to build authority, transform your investor brand, give value, and get more opportunities is by writing a book and publishing it. The only factor that stops you as an entrepreneur or investor is lack of time. Nick Raithel, the creator of the 7-Hour Book, turns unmanageable to manageable as he reveals how you can write a book in just seven hours. Find out the secret formula as he gives a high-level overview of those hours and learn how to create book ambassadors who will help you scale your business. —
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How Just 7 Hours Can Transform Your Investor Brand Nick Raithel Unlocks Your Power To Become An Author If you’re looking for practical tips and advice on mitigating and eliminating risk with the investment vehicle known as private mortgage lending, then you’re in the right place. If you want to learn from my mistakes so that you can avoid them, then pull up a chair. This show is created for those who are looking to take control of their financial future by doing what it takes to create wealth in the marathon of life with old world techniques and values. I’m looking to create a tribe of lenders that will disrupt the way we think about and teach our kids about money. Speaking of money, this episode will be geared more towards the borrowers out there and a few lenders as well.
I would imagine those who would want to borrow from a private lender would find an interest in our guest as I have the pleasure of speaking to http://contentcorps.net/ (Nick Raithel). He has a very impressive business model that holds your hands and walks you into becoming your own author of your own book in a very short amount of time. It’s a cool idea from an interesting individual. I want to introduce him to Lender Nation. Before we get into the interview with Nick and learn how he does his magic, I have some news to share. There’s going to be a big piece of humble pie coming my way because not too long ago I said I was going to give up sponsors and focus on other things, content and whatnot, which I have done.
At the same time, these opportunities come to take on a sponsor, which is https://www.questtrustcompany.com/ (Quest Trust Company). They can’t pay me. It’s a symbiotic relationship where I’m able to teach classes with them. I sponsor their events and they in turn are sponsoring the podcast leading up into their expo. They’re having their big self-directed IRA Expo, the second one ever. The promo code is PLPodcast for a 25% discount. I’m bringing back sponsorships for the https://questira.lpages.co/quest-expo/ (Quest IRA Expo) on August 23. I’ll also be there hosting a happy hour the night before it starts in the hotel bar. When I say hosting, I don’t know how many cocktails I’m going to buy but at least, we’ll be there. We’re going to have a cool event organized with a lot of the vendors and VIPs that will be showing up at the conference.
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You’re in for a treat because I have http://contentcorps.net/ (Nick Raithel) on with us. He has an interesting business model that can help perhaps lenders and investors alike. He has an interesting story. I can’t wait to get into it. Let’s go ahead and welcome Nick Raithel. Nick, welcome to the show.
Thank you very much for having me. I look forward to contributing.
For the audience, give us an idea. I understand you’re relatively new in your actual deal-making with the real estate game. We’re going to talk about the real reason why I wanted you on. Go ahead and give us a little background, origin, how you got into real estate and how you got into having your podcast and this business of creating books for investors.
My background is the creator of a system that helps real estate investors and private lenders, people throughout the entire space, related spaces to create their own professionally published
In real estate, private lending is a necessary field especially for those who want to invest but are short in cash. However, Keith Baker says the power of private lending isn’t the money or the debt that you’re getting, but the education and the network. Keith is a real estate investor and the host of Private Lender Podcast. He talks about the circumstances that led him to become focused on passive investing as a self-directed IRA investor and a private lender, as well as how he got started in podcasting and his passion for private money. —
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Private Lending For Profit: Keith’s Interview On The Accelerated Investor Podcast with Josh Cantwell I’m going to throw up the format. I’m going to change it up a little bit. I’m going to throw something a little new at you and let me explain why. First off, if you’re looking to get rich quick, if you want to make $1 million overnight, then stop reading this blog because that’s not what this is about. This is here to help people like myself, like you, normal everyday working people trying to live the American nightmare in suburbia. We have a fairly decent job. We also like real estate but we’re not going to go quit and become the next Chip and Joanna or Than Merrill. This way we can still participate. We can still be investors. We just do it with our funds, private money, private lending, private mortgages to other real estate investors.
I believe this is going to be episode number 73 and the topic is I ran out of finished episodes. While I’m putting something together and getting interviews recorded, I did an interview with Josh Cantwell who has a very interesting story. I highly recommend you go seek him out and learn. He does coaching and education. He also uses private money. I figured it would be great to do an interview swap with him, which we have done. However, I have miscommunicated with his tech team and I’m still trying to get my side of it. I do have a copy of my interview on Josh’s podcast, which is called Accelerated Investor Podcast and you can find it at http://www.AcceleratedInvestorPodcast.com (AcceleratedInvestorPodcast.com). My episode happened to be called http://acceleratedinvestorpodcast.com/2019/04/private-lending-for-profit-part-1/ (Private Lending for Profit: Part 1). I had a good time and enjoyed my time with Josh before, during and after we interviewed swapped.
At some point, I will post the interview that he did for this show but for the time being, I’m trying to get ahead in my scheduling. My time is getting a little more cramped than usual. I figured this is a great way to buy a week. I’m doing some more solocast. I’m going to start drilling down into different aspects and I’ve got some interesting interviews coming up. The Private Lender Podcast will be sponsoring the https://questira.lpages.co/quest-expo/ (Quest Expo). It was Quest IRA, but they changed their name to https://www.questtrustcompany.com/ (Quest Trust). This is their second year. It’s going to be in Houston this 2019, August 23rd through 25th. I’m proud to be sponsoring that again.
Even though I’ve canceled sponsors from this show, I will be bringing back Quest Trust as a sponsor. I will have discount codes for tickets and I will have some interviews from some Quest Trust employees. There will be a lot of interesting things about different accounts that you can use for self-direction and for private lending in notes and real estate. That’s going to be fun. I’m going to let that cat out of the bag. I want to get to my interview on the Accelerated Investor Podcast with Josh Cantwell.
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I am particularly excited to be with you to talk about private lending with a relatively new friend. His name is Keith Baker and he has an amazing podcast of his own called the Private Lender Podcast. Keith, welcome to the...
Running comps is not as easy as it seems. Finding value from a long list of properties can be challenging. As Keith teaches us how to run comps, he gets down on looking at MLS and who you should transact with. He also shares the importance of getting an MLS access, paying an aggregator, realtor, or broker for a comparative market analysis. Keith stresses the need to makes sure that you are getting a true comparable by using a BPO. It is ideal to keep some appraisers at arm’s length to help you out when you are not busy, and suggests using some websites that has good valuator calculator. —
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Where To Find Value: Comping Properties If you’re looking to build wealth without banks and outside of Wall Street by utilizing time-tested methods in an ever-changing world like the one that we live in, then you are in the right place. I’m going to be speaking about running comparables on other properties when you’re trying to formulate the after repair value or your loan-to-value of a particular deal. I want to run through the best ways and the worst way. You don’t have to be a realtor necessarily, but there are certain ways you can run comps and comparables. There are third parties you can reach out to have that done for you. I’m going to run through those lists and give you a couple of ideas at the end as the last case scenario or last resort, but also to get practice and to start looking at things to train your eye on properties. There are a lot of great free web resources out there.
Real estate is a relationship business.https://twitter.com/intent/tweet?url=http://privatelenderpodcast.com/plp-072/&text=Real%20estate%20is%20a%20relationship%20business.&related (Click To Tweet) Before we get into all that, I want to mention that for those of us in the United States, it’s Memorial Day. I’d like to honor the men and women who have given their lives for this country. I’m taking a moment and mentioning the significance of Memorial Day. Whether I agree with a war, a president or a reason for the wars has always been irrelevant in my mind. It’s all about honoring those people who sacrificed their lives for this country. While I’m on that subject, I’d like to acknowledge those who served and lived and those who are currently serving in the military. My friends like Leon and Scotty Mac because people like you guys served. I was never drafted or forced to serve. For that, I want to say thank you.
Let’s get into the nuts and bolts of this episode. How to comp a property? The best way to do it is through the Multiple Listing Service, the http://www.mls.com/ (MLS). That’s the database that all the realtors and real estate brokers have access to. That’s how they determine values when they come and get a listing. They use that and it’s the best database out there. I wish I owned it because it’s updated fairly quickly and you can get a good snapshot. You can drill down into various variables, lot size, square footage, year built, bedrooms, baths, garage and all the stuff. There are a lot of bells and whistles. When you’re trying to determine an after repair value for a flip or trying to come up with your loan-to-value on what you feel like the house is worth right now. For example, if it’s a rental and it’s got a builder-grade carpet and Home Depot finishings, light fixtures, faucets and whatnot. If it’s got that contractor feel, if it’s got that rental house feel, I would comp that lower than somebody who’s had the custom woodwork done, the built-ins and the nicer finishings, treatments, crown molding and these things.
MLS is the best way to look at that to get comps and comparables. If you don’t have MLS access, you better get a realtor friend. That’s all I can say or go get your license. I decided I was going to get my realty license and pay some online. It was...
Using Visualization to Overcome Fear & Self-Limiting Thoughts as a Private Lender
I recently traveled to Dallas for a small business marketing seminar and got more than I bargained for, which is a good thing! One of the exercises we did was to visualize the most elite version of yourself. While I was driving back home the next day, I decided I would incorporate the exercise into an episode to help anyone who was still looking to make their first Private Mortgage loan.
I don’t believe you should limit the use of this exercise to just investing – this can be useful in pretty much every facet of life.
Important Links: http://www.privatelenderacademy.com (Private Lender Academy)
Keith@PrivateLenderPodcast.com
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http://privatelenderpodcast.com/?p=2295&preview=true (Listen to the first Private Lender Master Class in its entirety for FREE!) On March 27th, 2019 the first event sponsored by the http://www.privatelenderpodcast.com/ (Private Lender Pocast) and the http://www.privatelenderacademy.com/ (Private Lender Academy) was held at Quest Trust Company in Houston, TX. Wendy Bryan from WFG Title was the keynote speaker as she dropped a ton of title insurance knowledge in a very short amount of time! I even learned a few new things that I am incorporating into my underwriting demands and title policy conditions. Make sure you http://www.privatelenderpodcast.com/contact (sign up) to find out when and where the next Private Lender Academy will take place!
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Lending money can be difficult. Any good investor should understand the importance of doing background checks prior to finalizing any transaction. Who to loan money to can often be decided through that person’s reputation. No one would want to fall on the empathy trap and end up trusting the wrong person. Predicting and verifying are key to loaning money. The gut is a powerful tool in lending and instinct can make or break and investment.. Verifying is a crucial part of investing. In every aspect of it, one needs to understand the value of doing background checks before putting precious money into jeopardy.
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Background Checks And Why You Should Use Them I’m on a trip to London, England and I’m here to give a presentation on the claims that we’ve had, what we see are the common causes, the amounts of these claims and how much they’re going to cost underwriters and insurance companies. I have been tapped by my company to present at Lloyd’s of London in the Old Library, which for me is quite an honor. I know people in London do it all the time, but to have a Texan come across the pond and the company pay for it, to put on an hour and a half presentation, for me, it’s very much a humble brag. Take that for what it’s worth, but at the same time, I am very happy to be here. This is a huge thing for me. It’s on my bucket list and I’m happy to be sharing some of this with you because as a private lender, I still have a day job. That’s what I’m trying to coach with people. Keep your day job, stay on top of it and private lend on the side to help the old retirement out a little bit.
I jumped on the Heathrow Express at Paddington Station and I decided I’m going to cab it over to my hotel. I did that, got checked in, changed in my suit, hoofed it over to the office, gave a presentation for one of the London brokers on fracking, a preview of what I’m going to do. Thankfully, it went very well. For that, I am grateful and very happy, but I have not recorded near as much as I had hoped to. I have a composition book full of notes. It’s my first opportunity to put something meaningful on tape. I’ve been here for about five days, I would hope to have five recordings. I jumped off the plane. I was busy and then I had the presentation. The next day I had coffees, lunches, coffees and pints, dinner with my boss, our chairman. Friday, I ate a meal. It did not agree with me and it didn’t show up until late Friday night. Saturday has been a complete wash, just lying in bed, being miserable and drinking lots of water.
I got up at 6:15, London time. It’s 12:15 for Central Houston time. I fumbled my way on the tube, on the subway, because there are four lines that were closed. One of them was the one that I needed. I ended up going to Paddington Station, which is the completely wrong station I needed for the ticket I wanted. After about £20 of cab fare and some looking on my smartphone, I finally got over to King’s Cross Station in London. I took a train up to Cambridge and I’m so glad I did it. It’s nothing out of the ordinary except when you consider that Cambridge University and Trinity College is where both Stephen Hawking and Sir Isaac Newton attended. Newtonian Physics, black holes, http://www.hawking.org.uk/a-brief-history-of-time.html (A Brief History of Time), all that was figured out in this town.
Background Checks: Always verify before trusting somebody.
Of course, it’s full of tourists. I can’t tell you how many American accents I heard, which normally is disappointing to me when I travel. I’m a snob, I will admit it. I can’t tell you the number of nationalities I heard and saw while I was hoofing it, backpacking it through Cambridge. What an amazing day. Disparagingly, I’m going to say Cambridge is the Oklahoma of the UK. I’ll tell you why.
Keith gets to interview one of his earliest mentors in the real estate game, Larry Goins of The Goins Group and author of Ultimate Buying and Selling Machine and Getting Started in Real Estate Day Trading. Larry takes us into his own life’s journey towards becoming a real estate investor, sharing great nuggets from the things he learned along the way. Getting into the more technical stuff, Larry talks about the different ways to find properties and how he uses internet marketing techniques to real estate. He also gets into day trade real estate, buying and selling houses like HUD, and the latest deals he made.
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Larry Goins on Buying And Selling Using Internet Marketing Techniques I am grateful to have the pleasure of speaking with one of my earliest mentors in the real estate game. He’s one of the first people that I found, began reading and listening to, bought his product and watched him over the years as he tweaked his investing style. I was fortunate enough to run into him at a few industry events and get to talk to him one-on-one. He and I have done some interview swaps for our podcasts. Ladies and Gentlemen, I’m talking about the one and only, https://larrygoins.com/ (Larry Goins). Let’s get right back down to the brass tacks and get straight.
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Lender Nation, I have the very distinct honor to introduce you to Mr. https://larrygoins.com/ (Larry Goins). Larry, welcome to the Private Lender Podcast.
How you’ve been?
I’ve been good. I’ve been having a blessed life, living the dream as they say. How about yourself?
I’m having fun and making money. I’m always on vacation. When I’m doing real estate, I’m on vacation. I’ve already bought two houses.
Let’s jump right into that. What deals are they? What’s your exit strategy? How’d you find them and all that stuff?
These two came from direct mail. I do a lot of direct mail. I do about 25,000 pieces a month. I’m getting ready to bump that up to another 12,500 so 37,500 pieces per month are what I’m going to be mailing. We’re doing five, ten, fifteen deals a month. We took the entire month of December off from direct mail. We did $88,000 in wholesale fees. We do a lot of wholesaling. That’s going to be my exit strategy. That’s primarily what I do. I do some seller financing and some lease option deals. I’m telling everybody stash cash for the crash.
A 100 years ago, I signed up for a gentleman’s newsletter, but this gentleman’s name was Larry Goins. This newsletter came to me in the mailbox once a month. I have my https://www.amazon.com/Larry-Ultimate-Buying-Selling-Machine/dp/B000LRPV1U (Ultimate Buying and Selling Machine). That’s the first piece of education I ever bought was from Larry Goins.
That was the original course that was based on this book.
It was a soup to nuts of how to bandit signs, direct mail, slap a magnet on your car or talk to everybody.
Have a scrolling name tag.
I remember that scroll. You even gave the website where you can order it. I remember that. There’s a bit of history here. I’m honored to have you on the show and thanks for coming on. You’ve got an encyclopedia’s worth of knowledge. I’m only going to try to keep to a few points because otherwise, this is a six-hour interview. We both lose out on other business and other deals.
I’ll come back anytime you want me.
One of the first lessons in negotiating is always making it seem like it's more important to them than it is to you.https://twitter.com/intent/tweet?url=http://privatelenderpodcast.com/plp-068/&text=One%20of%20the%20first%20lessons%20in%20negotiating%20is%20always%20making%20it%20seem%20like%20it%27s%20more%20important%20to%20them%20than%20it%20is%20to%20you.&related (Click To Tweet) I remember at a boot camp I went to of...
When you are in the spirit of full disclosure, you release everything without any limits or boundaries. Today, I am in the perfect shape to let everything out in the open, and a lot will relate to the topic of financial instability. As I own up and admit that I’ve gotten myself a little behind the eight ball, financially speaking, we will dive into the flipside of credit and why you don’t need to put yourself in that constant worry. On the other side, we review the current real estate market and another podcast you need to check out ASAP.
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Admitting My Mistakes And Thoughts On The Current Real Estate Market How I Became Complacent With Personal Finances Again I’ve got to own up and admit that I’ve gotten myself a little behind the eight-ball, financially speaking. I tend to do this every few years. Now, I have to go into defense mode and clean things up and get back right again. I’m trying to prevent this from happening again, but I decided to bring it up to share it with you. It’s a little bit of free therapy for me to work through it, but also to put it out there and see if you are guilty of the same thing. Write to me and let me know how you deal with it and what you did to try to prevent these things. The other thing I would like to talk about is because of my situation, I attended a relatively inexpensive marketing seminar in Dallas, which helped turn a switch in my head. It was very transformational in terms of thinking about how marketing and business and etc. It’s very worthwhile. What’s even made it cool was during one of the breaks, there was this real high-end estate agent, you can tell the high-end realtors.
How I Got Myself In A Bad Pickle Sure enough, that was her niche, it was high-end in Houston, which is like a bungalow in California, price-wise. She and I had a good conversation where we give our opinions on where we thought the market was from a retail side and an investment side. It looks like we might have the April showers, it may bring some glorious May flowers. We’ll see if this market is back on the mend and in bull territory. Before I get on my soapbox and talk about my lack of financial stability. I’m grateful that you’re reading this blog. I do appreciate it. I need to get into the heart of the matter. I’m going to start off by, “What happened? How did I get myself in this pickle, to where I had to go into one of the contingency accounts?” I will answer that quite simply. I committed some very old and rookie mistakes, cardinal sins that I knew better, but these things happen. I counted my chickens before they hatched. I had a few pretty sizable deals that I was trying to put together, some real estate deals and two of them fell apart. It didn’t happen.
That’s part of the game. That occurs, but I thought I could rebound a little bit quicker. I counted on the money I didn’t have in that case. I did it again where I have negotiated some changes in my employment and income. Those plans have had to go on hold for a little while. While I thought January would be a much greener month financially, some of those things have gone on hold and it’s going to be a few more months. I can’t talk too much more about that, other than I made the mistake of counting some chickens before those eggs hatched. Here’s the one that I loved the most. I had done my planning assuming positive cashflow and profitability. Not so much profitability, but near profitability for the podcast. I’m not quite there yet, but I added some more expenses so I could buy some time.
I could get some time back for the kids and whatnot. Let’s say that what started as perseverance became stubbornness. I ended up sticking my head in the sand. I didn’t want to admit that I was wrong. I could do it to myself, but I didn’t want to the wife or anybody else. I figured, “Let’s start
Not all are mindful of the laws that go along with private lending since some lenders base their transaction on relationships and trust. Although it all boils down to trust, being well-informed of the legal aspects of private lending will not harm anyone. In today’s time, there is a practical reality that people trying to raise a small amount of capital have limited ability to be compliant with securities laws, and this is what Attorney Amy Wan delves into. Founder and CEO of Bootstrap Legal, Amy breaks down the types of rules, regulations, and securities in private lending. As she explains when an investment loan becomes security, Amy reveals that lenders are much less regulated when you lend your own money to another investor. She goes in-depth on the event when you need to have a license when making loans, the legal documents required with investors, the process she does that make legal matters and paperwork less stressful to clients, and how she has brought digital and legal to smaller investors. On the side, she shares details about her podcast show, Law and Blockchain.
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Private Lending And The SEC with Attorney Amy Wan Syndicating, Private Lending And SEC Compliance I’d like to welcome you to this episode. I’m very grateful to have the pleasure of speaking with an attorney who happens to specialize in helping investors handling the paperwork and the filings required by the SEC, Securities Exchange Commission. My guest, http://www.amywanlaw.com/ (Amy Wan), has an impressive resume to say the least. She lives on the leading edge of the financial and legal tech world and was named one of the Ten Women to Watch in Legal Tech by the ABA Journal, that’s the American Bar Association. I’m honored and grateful to have her on the show. I have a new slogan that I actually put on a Private Lender Podcast t-shirt. The back says, “Never trust, always verify.” Nonetheless, never trust, always verify is a perfect segue into an interview with an SEC attorney. Let’s go ahead and get down to the brass tacks and let’s get to the interview with Amy Wan.
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I’ve got a special treat for you. Our guest is Amy Wan, Founder and CEO of https://www.bootstraplegal.com/ (Bootstrap Legal). I am excited to have her on the show. Amy, welcome to the show.
Thank you for having me.
Thank you for coming out and being interviewed. You deal in an area of expertise of the law that’s beyond my scope of understanding. You’re bringing it down to where people like me can participate, and I definitely want to get into that part of it. I promise we’ll keep this about 30,000 feet as much as possible and we’ll drill down when we need to because I know the law. You can go down some rabbit holes. Tell us a little bit about yourself and how you became the securities and syndication guru that you are.
I actually started my career in the federal government. We were doing interesting things in DC, international trade and international regulatory affairs. When I moved back to LA, there’s not much of an international trade law industry out in LA except for import-export compliance paperwork which was very different from negotiating free trade agreements. I started over. I became general counsel of an early stage real estate crowdfunding platform at that time. The interesting thing about that crowdfunding platform is that I had to deal with two different areas of law, one on the real estate lending side and then one on the actual security side. We did private lending. We would make hard money, private money loans to folks flipping houses and then we would fractionalize those loans and turn it into a security and sell it to accredited investors through our marketplace.
I spent a couple of years there and I learned the ins and outs of both of those different sides of the industry. I went on to become a partner at a boutique law firm that
Many people get struck by the question from private lenders about utilizing their right to charge penalties for late payments and to which extent. Two of the facts to remember are there is a late payment after the grace period legally stated in a signed contract, and the promissory note backed by the deed of trust fully allows the lender to charge a penalty. Today, we dive deeper into defining, utilizing, and threatening penalties for borrowers who are late on their payments. Off the topic, we will also reveal why you should start listening to The MFCEO Project Podcast by Andy Frisella.
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Late Penalties And Why You Need To Enforce Them Penalties For Late Payments Plus Why I Listen To The MFCEO Project Podcast By Andy Frisella Let’s go ahead and jump right into our topic which is going to be about defining, utilizing and threatening penalties for borrowers who are late on their payments. If most of my payments from my loans are due on the first of the month, there’s going to be a three to five-day grace period after which they haven’t paid, the payment is considered late. There’s normally a percentage of that payment, a penalty like 5% or 10% for example. We’ll get into the legal aspects of it, but to explain what we’re going to do now, I want to put it out there. There’s a late payment after the grace period. Legally by contract, by the documents, the promissory note backed by the deed of trust allows the lender to charge the penalty. There was a question of when to use them and it struck me oddly because my immediate answer was always.
If I miss a payment, I get dinged somehow in some way, whether it is a credit card or mortgage, a car payment or any agreed installment payment. If I don’t make it, I get dinged. I was like, “Why wouldn’t you think about that?” “I’ve made this loan to a friend.” I’m like, “There you go,” it was a friend first and that’s the basis of the loan. What’s the number one pillar? Never lend any money to a friend or family member who is in need, but rather give them the money without the expectation of it being paid back. These are the contingencies you have to plan for and the stresses you can mitigate ahead of time by to rules and not loaning to friends. If it’s a good deal, set them up with somebody that’s willing to lend or someone that it might be a symbiotic relationship. It’s like doctors don’t operate on their own family. I take that same approach with lending because people get funny about money. It certainly can. Oftentimes, we do.
Right there is that rule why the pillar comes into place for me. “Do I always follow it?” “No.” We all got that one family member, that one friend we break the rules for. It’s not a judgment. It’s a reality. If you go into your lending armed with this attitude, then it’s easier not to feel guilty because you’ve set up your parameters. Those parameters are agreed to and then the other party fails to live up to it, you get to do what is allowable by contract. That includes not just a foreclosure but charging for late payments. Let’s go ahead and jump into the legality issue of this. I’ve only done this in the state of Texas. I only am speaking from the state of Texas. Wherever you are, I will defer to an attorney who’s licensed with your state bar who does real estate transactions as their primary mode of earning money. This is why having several attorneys on your team is good.
Penalty Rates: How Much To Charge? Oftentimes, we take what attorney say as the gospel, much like a doctor or unfortunately like a weatherman. When those things don’t pan out the way we were told, we get upset and we blame them. It’s one thing to keep in mind, but it’s not a reason not to use attorneys. They’re going to be the closest to the court cases. They’re going to have the access....
Title insurance is a one-time charge paid at the time of closing. It covers your right and legal ownership to your house or land that you have purchased against liens. Josie Anderson, VP of Marketing at Valero Title – the only title company in Texas that offers zero escrow on all products – discusses the importance of having title insurance from a lender’s perspective. She also walks us through the company and what the title insurance cover, as well as touches on T19, title commitments, and more.
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Title Insurance Explained with Josie Anderson Why Title Insurance Is So Important You’ll hear my guest, Josie Anderson, talk about putting a class together which we did. I want to thank her for coming on the show and helping to put the class together. What’s the class about? It’s all about title insurance. I was going to say I finally found somebody but truthfully, I finally made it a priority to bring somebody on the show to speak about title insurance from a lender’s perspective. A lot of people think as long as they get a title commitment, it’s fine. I can get a title. There are exceptions. There are things title policies don’t cover. This is going to be an intro into that. I like it because it’s somebody else who is talking about it. Hopefully, I ask the right questions for everyone in the audience. Let’s go ahead and get to the interview with Josie Anderson from https://www.valerotitle.com/ (Valero Title).
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Lender Nation, I am proud to have Josie Anderson on the show. Josie is with https://www.valerotitle.com/ (Valero Title). I have been chomping at the bit to have somebody from a title company come on and talk about title insurance in the process. Josie, welcome and thank you for coming on the show.
Thanks for having me.
I know you’re not an escrow officer yourself. You’re the VP of marketing. By proxy, you have a PhD in the title process. Walk us through your company Valero Title.
Valero Title is all over Texas. We have an office in Houston, Dallas, Austin, and San Antonio. We’re the only title company in Texas that offers a zero escrow on all products. Whether it be both sides of your contracts, cash out, rate and term revise, whatever it may be, no junk fees. We don’t have courier fees. A lot of title companies have the eFile fee as much as $450 to $500. I was telling people, “That’s an email.” They’re charging as much as $500. The other thing we offer is complimentary mobile notary on anything over $50,000.
You’re investor–friendly. No escrow fees, no junk fees, and the complimentary mobile notary is a lifesaver. As a lender, we usually don’t get involved in the closing. As an investor, when someone shows up to the office and all I have to do is sign a few docs, it removes the friction out of my day. That is a great service. You’re already established. You’re in Texas. Are you in any other states or just Texas?
We do have a sister company in Fort Lauderdale, Florida. That’s a whole other territory. They cover anything outside of Texas.
Any reason you’re Texas-specific than everything else?
Texas is amazing. Our owner is born and raised in Texas. He’s a UT guy. He opened the first office in Florida and knew he wanted to get back to Texas. We’ve been in business in Texas for several years.
Title Insurance: What title insurance covers is your right and legal ownership to your house or land that you have purchased.
Title insurance is something I demand on any of my loans. A good relationship with the title company is you’ve got to have one on your team. It doesn’t matter for me as a lender what title company closes the transaction as long as they are licensed with the Texas Department of Insurance. Their policies are like everybody else’s. As long as everything is...
They say that hard money lenders are the solution to any real estate investor’s funding impasse. On top of that, there’s been an evident confusion on the difference between hard and private money. What are the distinctions despite seen similarities? Which one should you prefer if you wanted to scale up your business? Learn the top three answers to what makes them poles apart when it comes to funding deals.
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The Difference Between Hard Money And Private Money Intent, Flexibility And Rates Are The Key I want to take a moment and welcome you and also thank you for sharing your time with me. For this episode, I will attempt to answer a question that I hear a lot in the REIA or https://www.reia.org/ (Real Estate Investment Association) meetings in the community and yet hearing it in the flesh and then seeing things online. To me, there’s some confusion there. That is the simple question of what is the difference between hard money and private money? You can start with things like the difference in the terms. Both hard money and private money can be very short-term. In fact, most hard money loans are short-term, six to twelve months. However, the difference with private money is I have some loans that are out three years. Some lenders will provide landlords a ten to fifteen-year loan at a relatively reasonable interest rate at 5%, 6% and they’re completely comfortable with it. That wouldn’t be me.
However, the real difference for me comes down to the intent and it’s not the intent of the loan or the intent of the property or the transaction. It’s the intent of the individual. For me, a private money lender or a private mortgage note investor is someone who is typically not in the business of making loans. It’s not Wells Fargo or Quicken Loans or name your mortgage company or big bank. Those companies are in the business of making loans and deriving their profits from the interest rates and the points charged. A hard money lender, like the banks or mortgage companies, is in the business of making loans and deriving business income off of those loans. The difference is a hard money lender will typically go to someone like myself or you who want to be a private lender and borrow at say 8% or 9%. Turn around and then loan that money out to an investor at a much higher interest rate. They get the points most of the time.
As long as it's our money, it's our choice. https://twitter.com/intent/tweet?url=http://privatelenderpodcast.com/plp-063/&text=As%20long%20as%20it%27s%20our%20money%2C%20it%27s%20our%20choice.%20&related (Click To Tweet) Some hard money lenders will pay the first lender much more, 10%, 11%. However, when they loan it out to the investors, they’re pulling off points and possibly the spread, the difference in between that interest. That’s a business. That’s not what I do. It’s not what I talk about when I talk about private money lending, private mortgages. That is in and of itself the biggest difference for me. When people ask me the question, that’s what I like to start. If you go online and I see there’s a private lender association, what it is are businesses that loan money to other businesses which, in a way, that’s what a private lender does. However, these people have offices and staff and it’s their job to look for financing for real estate deals or perhaps they could make loans for inventory or on accounts receivable. They’re often a different thing than giving somebody like my partner lending some money to buy a house and wrap it and sell it. The intent is the biggest thing. It makes the most sense if you look at it from that aspect to begin with. You can look at the terms.
Most hard money lenders aren’t going to be as flexible as a private money lender. Any hard money lender, and I tell this to private lenders, is always get some type of...
The beauty in private lending is that private lenders get to set the rules. Alan Cowgill, owner of Colby Properties, LLC and President of Integrity Home Buyers, Inc., tells us how this goes down as he goes deep into raising private money. He shares how he got started in the whole real estate game, taking us into exit strategies, keeping investors and landlords safe, and paying private lenders. Alan also touches on 401(k)s and self-directed IRAs. Ending it with more great insights, he shares what he looks for in a lender and how communication is key.
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The Art Of Raising Private Money with Alan Cowgill I’ll speak with https://www.alancowgill.com/kickstart2 (Alan Cowgill) who was the first person to put the concept of private lending into my noggin several years ago. I’m honored to have him on the show. Speaking of the show, you can probably tell that I’ve been making some changes here and there particularly in the format. Whereas I’ve gotten away from selling mid-roll advertisements mostly because I didn’t feel like it suited me. I like the flow of the show better without the adverts. I’m experimenting with that to see how it goes. I’ve also brought in some more plans, reevaluated a few things and I hope to broaden the topics of the interviews a little. I’m going to go into some areas that hopefully bring you, the reader value in other aspects of your life not just in investing in real estate. It’s very closely tied to all that. Let’s go ahead and cut to the chase and get to the interview with Alan Cowgill.
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Lender Nation, I’m excited to introduce to you, https://www.alancowgill.com/kickstart2 (Alan Cowgill), who is one of the people who got the private lending kernel in my brain about a decade ago. It’s an honor to have him on. Alan, welcome to the show.
Thank you very much. I’m tickled to be here. This is exciting for me.
To give the readers some background, I was introduced to Alan years ago. I went to a Larry Goins boot camp and he came up and said, “How many of you guys deal with private lenders? I need to work with private lenders.” Long story short, going to the real library, finding one of your old programs on cassette tape and whatnot, CD and trying to put it all together, here we are in 2019. I’m stoked. Thank you for coming on. Amongst the many questions that I have, I want to try to narrow it down for you to just a few. I’d like you to tell our readers how you got started in this whole real estate game.
I was broke. I got a quarter century in Corporate America. As I was climbing that corporate ladder, one day, I realized I had the ladder against the wrong wall. I had to do something else with my life. I’d seen so many of my family members work a job all their life and retired poor. I thought, “I don’t want that to happen to me.” What I was going through, I was broke. Even though I had been successful in Corporate America, I was living in a little dinky two-bedroom apartment and I was struggling to pay my bills. What was happening is I had this old beat up car and I needed to put some repair work into it, but I put that on the backburner as we do.
I was busy doing other things and paying my bills and going along. All of a sudden on a first date, this car paid me back. It’s an ugly story. I pulled up in front of this apartment complex to walk her to the door after our very first date. Halfway up to the door, I heard something, I turned around and looked at my car that had burst into flames. Keith, when I tell people this, when I speak on stage, somebody on the back room goes, “Hot date.” It’s more like first and last date. Can you imagine how embarrassing this is holding her hand, watching the firemen put your car out?
Here’s this successful middle manager in Corporate America. He...
What are your pain points and what are you struggling with when it comes to private lending? Is it finding private lenders? Is it convincing them? We answer these questions about private lending, minimal risk investments, and a whole lot more. Join us on this episode as we conduct a Q&A session with Mitch Stephen, his students, and other entrepreneurs on his bus tour. Mitch is a self-taught entrepreneur and the author of the book, My Life & 1,000 Houses: The Art of Owner Financing. Keith also introduces the podcast and the reason he’s doing it.
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Q&A Session On A Real Estate Bus Tour Keith Conducts A Q&A Session On Mitch Stephen’s Bus Tour What I’m trying to do with the show and my online courses is getting people trained up and ready to be private lenders for you and for people like http://privatelenderpodcast.com/006/ (Mitch). I’ll give you a little background. I started this show on January 1st of 2018. The way this all came about was because I have a day job that I like. I do insurance adjusting for the oil field. I don’t deal with homes. I don’t deal with autos. I don’t deal with feelings or soft tissues. None of that. I deal with oil field equipment, big money and large item stuff. One day when I was walking out of Lloyd’s of London, I realized, “I handle a lot of other people’s money,” but I love my day job and there’s a lot of promise with that. I have a little equity in the company that I worked for, but I wanted to stay involved in real estate. The best way I could do that was through private lending.
I get to stay around with heavy hitters, people who do it every day. I get to learn from them whether they want to teach me or not. Oftentimes, I’ll make them hold my hand and walked me through their transaction. I got a call from a guy who I used to loan a lot of money to who said, “I’m switching over to wholesale.” I don’t need money, but my friend Landon needs a private lender. One of the first things that Landon asked me was, “Have you ever heard of Mitch Stephen?” I was like, “No. Who’s that?” To make the long story short, Landon and I started in LLC and now we do owner financing out of that LLC. It all started with a private lending contact. I don’t loan to the LLC because I do most of my lending out of my self-directed IRA. I like to sleep at night. I like to keep things above board and very transparent. I don’t loan to the LLC that we do our owner financing with, but it doesn’t mean we can’t use other people’s money or other people’s IRA.
Fast forward to about last September 2018, I was forced to take a family vacation to the beach. I’m not a beach person. I’m a mountain guy, but when you have a wife and two daughters that love sunshine, you do what you have to do. While I was miserable and destined, the idea struck me to start the show. Mitch does bust his tail and a lot of you do try to find private money. I’d like to bridge that gap and be able to get people who aren’t necessarily versed in real estate who aren’t going to go out and flip or landlord but might have that 401(k) or an IRA sitting around. Maybe they got lucky and inherited some cash, but they can put it to work. What I’d like to do is bring everybody together and create an economy by which we don’t need banks and we don’t need Wall Street brokers getting paid. I’m not going to begrudge anybody for getting paid, but when you’re losing my money, why should I pay you a bonus? That’s the way I look at it. It’s a meritocracy. That’s why I like private lending so much because I can pick and choose who I work with. The students or the gurus, I get to choose them who I work with as well.
When I kicked off the podcast, it got us going slowly, but there’s been traction little by little getting more
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I’m still hiatus for the moment, but am looking forward to March 11th when it all kicks off again!
Important Links:
https://itunes.apple.com/us/podcast/the-private-lender-podcast/id1329204836 (iTunes) – Private Lender Podcast
https://play.google.com/music/listen?u=0#/ps/I7yw4xyms54xwcn4og464jodwtm (Google Podcast) – Private Lender Podcast
https://www.stitcher.com/podcast/private-lender-podcast/the-private-lender-podcast?refid=stpr (Stitcher) – Private Lender Podcast
https://soundcloud.com/user-355136493 (SoundCloud) – Private Lender Podcast
https://www.facebook.com/PrivateLenderPodcast/ (Facebook) – Private Lender Podcast
https://www.instagram.com/privatelenderpodcast/ (Instagram) – Private Lender Podcast
https://twitter.com/PrivLendPodcast?lang=en (Twitter) – Private Lender Podcast
https://www.linkedin.com/in/keith-baker-344944155/ (LinkedIn) – Private Lender Podcast
https://www.biggerpockets.com/users/keithbaker (BiggerPockets) – Keith Baker
https://www.youtube.com/playlist?list=PLlQx26v5T4YDwhdO_GPYAJTrFB0NHAY3O (YouTube) – Private Lender Podcast
http://privatelenderacademy.com/ (PrivateLenderAcademy.com)
http://privatelenderpodcast.com/plp-042/ (The Foreclosure Journal – Part 1) – Episode 42
http://privatelenderpodcast.com/plp-048/ (The Foreclosure Journal – Part 2) – Episode 48
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Join the Private Lender Podcast community today:
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https://www.facebook.com/PrivateLenderPodcast/ (Private Lender Podcast Facebook)
https://www.linkedin.com/in/keith-baker-344944155/ (Keith Baker on LinkedIn)
https://twitter.com/PrivLendPodcast?lang=en (Private Lender Podcast Twitter)
https://www.youtube.com/channel/UCzctXatpCAOhF0XeV1fq2dQ?view_as=subscriber (Private Lender Podcast YouTube)
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~Football Season is Over~
by Hunter S. Thompson (18 July 1937 – 20 February 2005)
“No more games.
No more Bombs.
No more walking.
No more fun.
No more swimming. 67.
That is 17 years past 50.
17 more than I needed or wanted.
Boring.
I am always bitchy.
No fun – for anybody. 67
You are getting greedy.
Act your old age.
Relax – this won’t hurt.”
I’m still hiatus for the moment, but am looking forward to March 11th when it all kicks off again!
Important Links:
https://itunes.apple.com/us/podcast/the-private-lender-podcast/id1329204836 (iTunes) – Private Lender Podcast
https://play.google.com/music/listen?u=0#/ps/I7yw4xyms54xwcn4og464jodwtm (Google Podcast) – Private Lender Podcast
https://www.stitcher.com/podcast/private-lender-podcast/the-private-lender-podcast?refid=stpr (Stitcher) – Private Lender Podcast
https://soundcloud.com/user-355136493 (SoundCloud) – Private Lender Podcast
https://www.facebook.com/PrivateLenderPodcast/ (Facebook) – Private Lender Podcast
https://www.instagram.com/privatelenderpodcast/ (Instagram) – Private Lender Podcast
https://twitter.com/PrivLendPodcast?lang=en (Twitter) – Private Lender Podcast
https://www.linkedin.com/in/keith-baker-344944155/ (LinkedIn) – Private Lender Podcast
https://www.biggerpockets.com/users/keithbaker (BiggerPockets) – Keith Baker
https://www.youtube.com/playlist?list=PLlQx26v5T4YDwhdO_GPYAJTrFB0NHAY3O (YouTube) – Private Lender Podcast
http://privatelenderacademy.com/ (PrivateLenderAcademy.com)
http://privatelenderpodcast.com/plp-042/ (The Foreclosure Journal – Part 1) – Episode 42
http://privatelenderpodcast.com/plp-048/ (The Foreclosure Journal – Part 2) – Episode 48
Love the show? Subscribe, rate, review, and share!
http://privatelenderpodcast.com/blog/how-to-subscribe-rate-our-podcast-5-stars-on-itunes/ (Here’s How »)
Join the Private Lender Podcast community today:
http://privatelenderpodcast.com/ (PrivateLenderPodcast.com)
https://www.facebook.com/PrivateLenderPodcast/ (Private Lender Podcast Facebook)
https://www.linkedin.com/in/keith-baker-344944155/ (Keith Baker on LinkedIn)
https://twitter.com/PrivLendPodcast?lang=en (Private Lender Podcast Twitter)
https://www.youtube.com/channel/UCzctXatpCAOhF0XeV1fq2dQ?view_as=subscriber (Private Lender Podcast YouTube)
http://privatelenderpodcast.com/wp-content/uploads/2019/02/aRT.jpg ().
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I am taking a short hiatus form the podcast because life has gotten busy, in a good way! But I need to take a few weeks to get the podcast back on track, and back to delivering valuable information and interviews that I hope you’ll find inspiring.
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Important Links:
https://itunes.apple.com/us/podcast/the-private-lender-podcast/id1329204836?mt=2 (iTunes) – Private Lender Podcast
https://play.google.com/music/listen?u=0#/ps/I7yw4xyms54xwcn4og464jodwtm (Google Podcast) – Private Lender Podcast
https://www.stitcher.com/podcast/private-lender-podcast/the-private-lender-podcast (Stitcher) – Private Lender Podcast
https://soundcloud.com/user-355136493 (SoundCloud) – Private Lender Podcast
https://www.facebook.com/PrivateLenderPodcast/ (Facebook) – Private Lender Podcast
https://www.biggerpockets.com/users/keithbaker (BiggerPockets) – Keith Baker
https://www.linkedin.com/in/keith-baker-344944155/ (LinkedIn) – Keith Baker
https://www.instagram.com/privatelenderpodcast/ (Instagram) – Private Lender Podcast
https://www.youtube.com/channel/UCzctXatpCAOhF0XeV1fq2dQ?view_as=subscriber (YouTube) – Private Lender Podcast
https://twitter.com/PrivLendPodcast?lang=en (Twitter) – Private Lender Podcast
http://privatelenderacademy.com/ (PrivateLenderAcademy.com)
Love the show? Subscribe, rate, review, and share!
http://privatelenderpodcast.com/blog/how-to-subscribe-rate-our-podcast-5-stars-on-itunes/ (Here’s How »)
Join the Private Lender Podcast community today:
http://privatelenderpodcast.com/ (PrivateLenderPodcast.com)
https://www.facebook.com/PrivateLenderPodcast/ (Private Lender Podcast Facebook)
https://www.linkedin.com/in/keith-baker-344944155/ (Keith Baker on LinkedIn)
https://twitter.com/PrivLendPodcast?lang=en (Private Lender Podcast Twitter)
https://www.youtube.com/channel/UCzctXatpCAOhF0XeV1fq2dQ?view_as=subscriber (Private Lender Podcast YouTube)
Nomi Yah is a practitioner of creative financing. She hustles to make things happen. She’s not just waiting for things to come to her, but she makes sure to go after it. After buying her first house for $90,000, she sold it in a few years for $140,000. Seeing the profit from real estate, she bought and sold several more houses, adding in-law units and becoming a landlord. After consistent success, some family members invested and the business grew until they had thirteen tenants and one note. Realizing that the note was easier and more profitable than the tenants, she spent a year learning about notes and decided to sell the rentals and become a private lender, starting Elohe Loans in 2018. Nomi talks about hypothecation and shares her unique approach to private lending. See how this can also work for you.
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Listener Spotlight: Hypothecation – A Unique Approach To Private Lending with Nomi Yah A Different Way To Earn Monthly Cashflow We are breaking new ground here. We’re going to reach a new milestone as this episode is the first of its kind, a Listener Spotlight. This an episode where I interview a listener who is actively lending money and seeking to expand their network. The idea is for you to know the ins and outs of lending from somebody in the trenches every day, someone besides me. I’m excited to get to this interview with my guest, https://www.eloheloans.com/ (Nomi Yah). The nexus of this episode was an email that said she was traveling to Texas in the near future to look for deals to lend on and would like to meet me and talk about all things private lending, which that in itself I thought was cool. She offered to buy me a barbecue, which is my kryptonite. How could I say no?
I met Nomi Yah in Austin near the end of 2018. I listened to how she prefers to lend, how she likes to structure her deals, and how she’d lends for cashflow and also had some fine brisket. It was during that conversation that I realized that I wanted to have people like Nomi on the podcast so they could share their stories, tell us of their genius moves and maybe their mistakes and regrets as well. This thing has made the podcast so much more enjoyable than I could have imagined. I hope you enjoy the first Lender Spotlight with Nomi Yah. Let’s get to the interview.
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I’m honored to have a Listener Spotlight with Listener, https://www.eloheloans.com/ (Nomi Yah). Nomi, welcome to the Private Lender Podcast.
Keith, I’m glad to be here.
Thank you so much for reaching out and agreeing to do this. This is a new segment that I’m trying this year in 2019. As a little background, Nomi signed up for the email list. I finally sent an email out. She responded and filled out a survey and then emailed me and said, “I’m going to be in Austin, Texas. Can we meet up? I’ll buy you lunch.” She said, “Barbecue.” I said, “I’m there.” We had a great afternoon chatting about real estate, lending and everything. She graciously agreed to come on. Again, thank you. I’m looking forward to this. How’d you been?
I’ve been great. It’s my first podcast and I’m excited.
Let’s give us a little background about yourself. What type of environment do you come from, corporate finance? I know you have a very interesting background so please tell everybody.
I’ve been in the music industry for 25 years. I toured around the world. I got a gold record. I’ve performed in front of 100,000 people. I got a whole lot of milestones with my music career. I’d have to say I aged out of the touring part of it. I’m still a songwriter and have some success. I got more and more into real estate. I’ve always been interested in real estate. I finally hung up the touring gear and put on the real estate thing. I started with a whole bunch of rentals then I sold off all...
Just when Keith thought he had it all figured out, he found a new exit strategy for the property he and his partner landed. This fourth installment of the foreclosure journal documents is about how Keith and Landon made a property more profitable than reselling it with owner finance, taking a down payment, and coming up with a note. Find out more as he walks you through how it happened.
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Foreclosure Journal: Episode 4 – A New Exit Strategy Just When I Thought I Had It All Figured Out I’ll be speaking or giving you part four of my Foreclosure Journal. I’m going to be telling you the rest of the story.
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In the past three editions of the Foreclosure Journal, I’ve talked about how my partner and I got into the property. What happened? What went wrong? Hurricane Harvey. We let the guy stay for over a year with no communication from him. Ultimately, we consulted the attorney and we had him take care of the foreclosure process on our behalf. What finally happened? The foreclosure went through. Nobody bid on it because the ask was high. It didn’t make sense picking it up at the foreclosure auction for several reasons. Mostly, there wasn’t enough equity in the home. We got it back, which is fine. It’s still in bad shape, about the condition it was in when we bought it. However, we have a new exit strategy that in a perfect world, it should prove more profitable than reselling it again with owner finance and taking a down payment and then coming up with a note. What had happened was against my initial feelings and flashbacks to my landlord. We’ve turned the property into a rental. Yes, it’s true. I want to walk you through at least how I was sold. All the credit goes to my partner, Landon’s team, his office who found a new couple that has some interesting needs and there’s some synergy here with us.
Once we got the house back, Landon’s team found a new couple. I don’t know how young they are exactly but apparently, they’re new. They’re maybe divorced, having some credit issues. I’m not exactly sure. However, they run a contracting business and want to rent this house for its garage on a lease option program with it. We’ve got all the documents. We have our lease that stipulates some pretty wonderful things including inspections. We ended up trading services in lieu of a deposit. It all worked out because we found this couple. They’re going to rent it for a year. We have a contract, a lease for a year at $650 a month in rent. The security deposit normally would have been at least $650. We put it in the contract that the tenant had to have the property trashed out, the yard mowed, the three cars removed from the front yard, all the junk out of the backyard and the floor is swept before they could move in and get the keys and take possession. We were able to confirm that. They held up their end of the bargain, so now the property is not going to get letters from the city and other municipalities for various code violations. We are renting. We’re going to depreciate and take advantage of some of the depreciation on that property for this first year.
Take advantage of some of the depreciation on a property for this first year.https://twitter.com/intent/tweet?url=http://privatelenderpodcast.com/plp-058/&text=Take%20advantage%20of%20some%20of%20the%20depreciation%20on%20a%20property%20for%20this%20first%20year.&related (Click To Tweet) My friend, Michael Plaks, always says you should consider converting rental properties into owner finance or seller finance properties because it is much more beneficial for you tax-wise. I’ve got to run that back down. I knew that in the back of my head that this would probably be a decent move if we can get some good renters who are serious about wanting to become owners in the next many months. We can depreciate the property lease up and I need to fact...
Working remotely in the USA from anywhere in the world is the new normal. Michelle Green is a professional real estate investor, ex-property Lawyer and Realtor/Real Estate who works virtually in Texas, USA from her home in New Zealand. In 2016, with her father Steve, she founded the Koru Group which specializes in seller financing homes to retail buyers and investors who are not currently able to qualify for conventional financing. Steve and Michelle share how they first got started dabbling in real estate, how they moved their real estate operation to Texas, USA, private lending, and how to find private lenders from 8,000 miles away. This dynamic father/daughter duo of Steve and Michelle Green is inspiring to say the least!
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Listen to the podcast here:
Using Private Money From 8,000 Miles Away with Steve and Michelle Green This Dynamic Father/Daughter Duo Is Suffocating ALL Excuse It’s my mission to create private lenders and to create a community where people just like you and I can safely and confidently invest and build wealth with old world values and pragmatism and without banks or Wall Street. 2019 has started off to be a very international year at the show where we had http://privatelenderpodcast.com/?s=Victor+Menasce (Victor Menasce) from Canada and now, I have very distinct honor to interview a father and daughter powerhouse all the way from New Zealand. https://nz.linkedin.com/in/stevegreen-koruhomes (Steve) and https://nz.linkedin.com/in/michelle-green-40365ba6 (Michelle Green) live almost 8,000 miles away and yet they have found a way to invest in single-family homes real estate here in the United States. I find their story fascinating and very interesting. I believe that you the Lender Nation will as well.
When I think of all the excuses I gave in the past as to why I was or wasn’t doing something, mostly why I wasn’t doing something. It’s too hard. I don’t have the time. I don’t have the money or whatever the case may be, I get a sense of shame now when I think back on it. I don’t think it’s uncommon among investors and it’s not necessarily a bad thing unless you let it ruin you or run you. It’s a good thing if we can find motivation in those emotions. I certainly find it there. I heard this thing about you should never compare yourself to another as we go around and we journey around the sun through life. After hearing how our guest is investing in real estate in Texas all the way from New Zealand, I feel downright lazy. Because Steve and Michelle Green and negating all the excuses, mine, yours, everybody’s for not putting in the hustle and getting things done. Veering out of way and making it happen. This dynamic father and daughter investing duo tell us how they do it. They shared it with us and I’m forever grateful.
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I’m honored to be interviewing Steve and Michelle Green all the way in New Zealand. Steve and Michelle, welcome to the Private Lender Podcast.
Thank you very much. It’s a pleasure to be here.
When I started this podcast, it was back in April or May. Somebody reached out on LinkedIn. It was this fellow named Steve Green and I didn’t realize the significance at the time, but in August of 2018, we met at the https://questira.lpages.co/quest-expo/ (Quest IRA Expo) and Steve said, “This is my daughter Michelle and we were investing in the Southern United States.” I said, “You don’t sound like you’re from Houston or Dallas. How is it that you guys have come and invested in the United States? We caught up before you left and thank you for lunch. I was jumping at the bit to have you guys come on because your story is absolutely fascinating and I can’t wait for you to tell it to the audience.
We were investing here in New Zealand for various reasons. Our portfolio’s top properties weren’t performing as well as it should have been. The government here is getting...
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If you are looking for a way to learn how to increase wealth by using time-tested methods in an ever-changing world, then you are in the right place! Welcome to the Private Lender Podcast, the only podcast whose mission is to teach people how to become private lenders and to create an economy where people just like you and I can confidently invest and build wealth with old-world pragmatism, and without banks or Wall Street.
I want to share with you 3 or 4 of the ways I help keep money protected in a market that has peaked and is trending down. I know many are probably asking what’s my opinion on the current market? Well, as I record this episode in early January, 2019 I will only say that I believed the market has cooled a bit in my area. I’m sounding any alarms. All markets ebb and flow, tides rise and fall, and sometimes there are insane bubbles and crashes – does that sound familiar? So my answer is this: I am agnostic on US real estate at the moment – neither hot nor cold – the waves are not massive, fear and doom inducing trends. But I will certainly start looking more into the national indicators as I do the 4 things I’m about to share with you now.
1 – Tighten up lending requirements
Demand more skin in the game from your borrower
More reserves to pay on a loan that goes long
quality of borrower’s RE portfolio: High-end vs. Low-end
2 – Scrutinize the comps – utilize a downside price contingency
Look for a tight radius on the comps map – no more than ¼ – ½ mile, do not cross any major roads or intersections
Are DOM (Days On Market)increasing and prices decreasing? Notice a lot of price reductions?
Age of comp: Last 30 best, 60 manageable, no more than 90 days preferred. More than that is outdated and old, like a rotary phone or my Atari 2600
3 – Lower LTV
4 – Look for longer terms with established landlords/seller financers. My not pay as much, but Steady payments, ride out the trough and get ready for the next upmarket ride, don’t have to work your money as much.
The only price I ask for listening to the PLP is that you please leave a rating and review on iTunes, Google Podcast, Stitcher, Soundlcoud, or whatever platform you are using at the moment.
Click this link to go to the PLP’s iTubes page:
https://itunes.apple.com/us/podcast/the-private-lender-podcast/id1329204836?mt=2 (https://itunes.apple.com/us/podcast/the-private-lender-podcast/id1329204836?mt=2)
Please help to spread the word so others can find this and listen. Also, connect with me on social media, at FB, IG, Twitter, LinkedIn, Bigger Pockets – links to all of these channels can be found at Private Lender Podcast.com.
https://www.facebook.com/PrivateLenderPodcast (Facebook)
https://www.biggerpockets.com/users/KeithB102 (BiggerPockets)
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Twitter @PrivLendPodcast
And finally, please go to http://www.PrivateLenderAcademy.com (www.PrivateLenderAcademy.com) and sign-up to get on the “Keith promises to deliver the PLA” waiting list and be the first the learn how to gain access, once it goes live.
Thanks for listening, please keep reaching out to me– I greatly appreciate the feedback. A I wish you all safe and prosperous private lending. I’ll see ya’ll on the next episode.
-k
Real Estate Espresso podcast host Victor Menasce spent the first 25 years of his career in the high-tech industry. On his eighteenth trip to Tokyo in a year and a half, Victor realized he was on the wrong path. He felt the way he was working wasn’t right for him nor his family, so he made the conscious decision to move full-time into the world of real estate investment. Victor stops by to share his knowledge about investing in the US from his home in Canada.
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From Silicon Valley To Real Estate With Private Money with Victor Menasce I am thrilled to have on this episode, Mr. http://www.victorjm.com/ (Victor Menasce). Welcome to the show.
It’s great to be here.
Victor and I met back in the summer of 2018 at a podcast conference. I remember we were in a group in a room talking and nobody seemed to have a real estate podcast. Victor said, “I’ve got a real estate podcast.” I interrupted the lady speaking with us, “Excuse me, I need to go speak with this man.” Here we are, you’re on the show. Thanks for coming on and you have an interesting background for when you started off in the tech field but then like many people, either you grew tired of it or you decided to come over into real estate and here you are now. You’re a developer, you utilize private money. You have a real estate podcast, http://www.victorjm.com/podcast/ (The Real Estate Espresso). Let’s try to unpack a little bit about that. Tell us a little bit about your journey on how you got to where you are now.
If I go back to 2009, 2010, I was still working in the tech industry. I was managing a microprocessor development team and we’re basically designing chips that we used in mobile phones and data cards. We’re building a new cellular network in Japan and I was literally traveling back and forth to Tokyo every two weeks and it was burning me out. It wasn’t the right thing for me. It wasn’t the right thing for my family. I resigned my position as VP of engineering and decided to take a hard left turn in my career into the world of real estate investing on a full-time basis. If you remember what was happening back then, it was probably the opportunity of a lifetime to invest in real estate, particularly in the United States. I took advantage of that opportunity and decided to jump in with both feet. That’s where I got my start on the journey.
One of the things that I discovered along the way is I had a bunch of skills that were pretty portable. Project management is a very portable skill. It doesn’t matter whether you’re managing software development or microprocessor development or new construction, it’s all the same. The other key skill was the ability to raise capital and I learned how to raise money in the tech industry. It’s much more difficult to go raise $5 million for an idea than it is to raise money for something that’s going to cashflow in six months. Those are vastly different and I was able to transport that skill set over into the world of real estate as well.
If you don't ask, you're not going to get it.https://twitter.com/intent/tweet?url=http://privatelenderpodcast.com/plp-054/&text=If%20you%20don%27t%20ask%2C%20you%27re%20not%20going%20to%20get%20it.&related (Click To Tweet) Going to Tokyo every two weeks, how long of a flight was that?
In the summertime, it was a direct flight from Toronto, thirteen hours into Narita Airport. It was pretty good. In the winter time, I had to fly through Vancouver. That added another five-and-a-half-hour flight as an appetizer to the big flight.
I can see why you get burned out at that real quick. You’re in Canada, in fact.
Yes. I live in Ottawa, Canada and I’m halfway between Montreal and Toronto, almost due north of New York City. Even though it’s Central Canada, we still refer to it as East Coast but it is somewhat Central Canada.
It has been one year since Keith has started this journey of communicating and reaching out to all in the private lender space. He thanks his listeners and gives a heads-up of what is to come and the latest on the Private Lender Academy. Sharing some plans, he invites you to stick with him as you share great information and insights about private lending.
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One Year Anniversary: Thank You To The Listeners One year since this great experiment began, I thought I’d throw together a quick episode. I didn’t think I was going to make it a year with the podcast. I didn’t think I was going to make it this far. I’m very happy, honored and humbled that you are reading, downloading, communicating, responding, reaching out to me and meeting me, talking off of the podcast and finding out the type of investor you are. Hopefully, I can provide some value to you during the meeting. I’m just a knucklehead who gives investor loans.
If nobody reaches out, then nothing would happen.https://twitter.com/intent/tweet?url=http://privatelenderpodcast.com/plp-053/&text=If%20nobody%20reaches%20out%2C%20then%20nothing%20would%20happen.&related (Click To Tweet) It’s been quite a process. It’s been quite a year. This is a pretty big milestone. I couldn’t have done it without you. If nobody had ever reached out or said anything, I probably would have quit, who knows? I do greatly appreciate it. I’m going to make 2019 season 2. I want to make it ten times, 100 times better. I’m going for higher profile guests. I’m going to niche down into some topics a little more and bring in some new things.
One Year Anniversary: Niche down into some topics a little more and bring in some new things.
For example, I’m going to have a reader spotlight. It’s where I interview the readers. They tell us where they are, what’s working for them or valuable lessons and just peek in and see what their struggles are. They share those so that everybody can learn from them and identify with them perhaps. That is the plan. I’m still working on the Private Lender Academy. That’s on hold for quite a bit. I guess that’s a sad announcement in January because I was hoping I’m going to launch it in January. I might have a bit of a change of plans. The content, the coursework, all of that’s still coming. It’s going to take me a little longer to get a good product and something I can be proud of and put my name on before I present it to people. For the time being, I appreciate you reading, subscribing and leaving your ratings and reviews. Every one of them helps get the word spread. It helps people like you find this podcast. Please connect with me on social media, https://www.facebook.com/PrivateLenderPodcast/ (Facebook), https://www.instagram.com/privatelenderpodcast/ (Instagram), https://twitter.com/PrivLendPodcast?lang=en (Twitter) and https://www.biggerpockets.com/users/keithbaker (BiggerPockets) and all that stuff. You can find all that information out at http://privatelenderpodcast.com/ (PrivateLenderPodcast.com). I want to wish you prosperous lending, prosperous investing and a great 2019.
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Keith gives an update on his active foreclosure and discusses the HUD-1, also known as Closing Disclosure. One of the things he learned from his CPA is to look closely at the HUD-1 or the settlement statement because a lot of the mistakes tend to happen here. He lays down the things you need to go over and put consideration into, whether as a buyer or seller. He then shares about his foreclosure and his experience of deciding when to evict someone out.
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Foreclosure Journal Part 3 And The HUD-1 I’m going to talk a little bit about the HUD Statement, the Settlement Statement. If you close at a title company, you purchased a house or you sell a house, the buyer and the seller get a copy of this. It is the document that records the transaction and the pieces of the transaction. The thing that makes it the most interesting is a couple of things. One my CPA always requested, which is pretty standard if you invest in real estate or purchase, is the document by which my CPA will compute my taxes. I was taking a class by http://privatelenderpodcast.com/plp-013/ (Michael Plaks), who was guest on this show. He handles nothing but federal taxes and state taxes for real estate investors. He taught that you need to look through this HUD-1, the Settlement Statement with a sharp magnifying glass and a good lens because a lot of mistakes are made here. I’m saying this not only just as a lender because I always look at this as a lender as well. During the process, I’ll get my commitment for title insurance, but I also get a copy of a pro forma HUD-1.
It’s a living, breathing document. The down payment is on here. The insurance premiums, the costs, and the fees to file with the county. All of that is listed out here. If you’re buying, selling or lending, you want to check this to make sure that your interests are best represented and there’s not a typo or an error. There are essentially two sides as the left side and the right side. It starts pretty simple. The contract sales price, what were the settlement charges that the borrower is going to pay so as the closing costs that the purchaser, in this case, I’m using one of my HUD-1s from a transaction I did where I was the purchaser and not the lender. However, it doesn’t matter for the illustrative purposes, but I will put a copy of it on the website. The HUD-1 is going to list off all the costs and fees. There’s going to be HOA dues, insurance, taxes that need to be paid or prorated. They’ll take into account the earnest money and how much the principal of the new loan is going to be. There is the owner’s policy that’s paid by the seller. When someone buys a house, the seller normally pays for the title policy, for title insurance, not for property insurance. It will go down and say the estimated amount from the borrower, how much they need to bring to the table and also with the seller contract sales price, any monies they are giving up, any concessions that they’re having to give up.
Lending is a business; it's an investment.https://twitter.com/intent/tweet?url=http://privatelenderpodcast.com/plp-052/&text=Lending%20is%20a%20business%3B%20it%27s%20an%20investment.&related (Click To Tweet) Oftentimes the seller will contribute to the buyer’s costs. In this case, I negotiated $4,000 off of my original contract price. There are also interesting things. If there’s a mortgage on the property, how much that has to be paid off. That’s key. It’s taken into account. The settlement charges to the seller, oftentimes they pay more, they pay the realtor fees. That’s going to be part of their fees. That will come out of their end. You want to make sure that everything is correct. Your loan payoffs are correct. You want to make sure that anything that’s quoted in here is going to be accurate. Insurance premiums, for...
Not many of us realize the things we are destined to do immediately in life. Sometimes, we have to take a couple of detours to get there. Sharing his own road to real estate and creating a fund is Brandyn Cottingham of Major Gainz Capital. He begins by talking about joining the Marine Corps band playing the podium. Later on, he got out of the military and was faced with trying to figure his way around after. Going from one odd job to another, he eventually ended up getting the taste of executive level management to creating his own fund. Brandyn talks to us about Major Gainz Capital, breaking down its structure as an opportunity fund while describing the great ways they do to legally get money. He also shares his philosophy that not everything is about money and how he applies that with his clients.
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Brandyn Cottingham’s Road To Real Estate And Creating A Fund Lender Nation, I hope you’re ready for a very interesting conversation because I interviewed Brandyn Cottingham with https://majorgainzcapital.com/ (Major Gainz Capital). He’s the principal partner. Brandyn, I want to thank you for coming on and welcome to the Private Lender Podcast.
Keith, thank you so much for having me here. It’s an honor. I’m very humbled to be asked about you to be on your show. I follow your podcast. There’s a lot of great content on there. To be a part of this conversation is an honor for me.
Thank you for that. You and I met at one of http://privatelenderpodcast.com/001-2/ (Steven Kaufman)’s events. Steven was interviewed on episode number one. I was honored to have him. That’s how you and I started talking. Lo and behold, we keep running into each other at various industry events. Finally, here we are together. You have a very interesting background. I know you moved to Texas when you were young, grew up the south side of Houston, in Pearland. I’ll set that up and let you talk.
I appreciate it. Both my parents are from small towns in North Louisiana. They both went to Grambling State University up there. It’s an HBCU, very famous HBCU. A lot of strong football tradition up there. They graduated from college, moved to Houston with opportunities where. I was maybe about four or five when we moved here. I ended up in Pearland. We moved there. I think I was I third grade. This is back when it was a small town. There was a beltway. It was like one major highway. It was fifteen minutes to a grocery store. It’s a small town, very rural by today’s standards. My father was a musician. On my dad’s side, everybody was a musician. My uncle was a music major. He taught music. He was a jazz musician. He was a jazz teacher. Aunts, uncles, they all played instruments, orchestras and symphonies, things like that. Music’s in my blood.
I picked it up when he taught us how to read music at a young age. I was very blessed that in Pearland at that time, I found out the high school is going to stay competition again for a marching band in August. When I was there, we were third and fifth in the state in the marching band. Both years that we went, third my sophomore year, fifth my senior year. I was always in a leadership position there. We would go competitions to warm up the water. It was low acumen for the discipline that we had to have to perform at that level and compete at that level. I learned a lot from our band director, Mr. Jack Perez. I have a lot of respect for him. He taught us a lot.
A friend of mine dared me, bet me that she would make the Marine Corps band before I would. It was an interview process or audition. I’m super competitive. I was like, “No way, I’m going to beat you. There’s no way you’re going to beat me.” We ended up going to Lake Charles. There were eight people. I was the youngest person there. Everybody went. I went last. Nobody had made it the whole day and passed the audition. Everybody was coming in,
There are so many lender scams spreading through the internet that sometimes, you can’t even tell which ones are true and not. Suffice it to say, it has become easier to fall into these traps. The good thing is that you can learn some ways to avoid them. Learn the ways and means that you, as the borrower, won’t fall into any types of lending scams. Identify the red flags when it comes to offers and know where to put or give your money.
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Identifying And Avoiding Lender Scams Lending scams, how many times do you go to Facebook or Instagram or on the BiggerPockets forum, sometimes I’ll see complaints or lamentations about lending scams. We’ve all received the emails about the Nigerian prince or some rich uncle in the Middle East and you can get a cut of $5 million or whatever. You go to Facebook and you see, “I am a private lender or I’m a hard money lender and I can get you anything from $20,000 to $5 million, asset-based lending only,” and there’s going to be like a Gmail or Hotmail account. Some of these people are legitimate. I used to do my lending out of a Yahoo account. The difference between me and this guy on Facebook, I was not advertising I could lend you millions of dollars. In fact, I wasn’t even advertising. I wasn’t putting it out there that I’ve got money to lend. If someone is going to get a broker a deal and get a commission on $5 million, even if it’s only one point, that’s enough money to where I’m thinking in my head. You can take that $50,000 and go to GoDaddy and get you a legitimate email address or a company URL and a company email address. You wouldn’t rely on Yahoo or Hotmail, one of my favorite ones to see. Not necessarily a dead giveaway, but something to look at. It’s something to consider, especially if they’re a hard money lender and they’re using Hotmail or Gmail.
If it walks like a duck, talks like a duck, and smells like a duck, then it probably is a scam.https://twitter.com/intent/tweet?url=http://privatelenderpodcast.com/plp-050/&text=If%20it%20walks%20like%20a%20duck%2C%20talks%20like%20a%20duck%2C%20and%20smells%20like%20a%20duck%2C%20then%20it%20probably%20is%20a%20scam.&related (Click To Tweet) Some legitimate businesses do use that and I know some people that still do. However, they have websites. They have proper companies, insurance policies in place and employees and things like that. That’s something to look at. One of my favorites is that generic stock photo of somebody smiling and they’re trying to play it off like it’s themselves. It just reeks much like that email from the Nigerian prince. I don’t know if this is something that viscerally hits you and these are the obvious ones. You can tell that if it walks like a duck, it talks like a duck, smells like a duck, it probably is. That’s a just a couple of examples. What I’d like to talk about are ways that you, the borrower, cannot get into any types of lending scams. Sometimes people get to the closing table and find out that their lenders have a piece of crap or all of a sudden are going to require something to where they’ve got you over the barrel. Banks have done this to people as well. I know it’s errors and omissions or whatever or we forgot to get this, we have to get that. I get it. Some of it is legitimate, but sometimes there are crooks out there trying to lend money. There are also crooks out there who are trying to do houses and trying to buy it several times and borrow from other people at different times and get money and never repay it back. Buyer beware, lender beware and investor beware for sure.
One of the things that I recommend is that if a lender is asking you for fees upfront, that’s a red flag. The only fees that you should be paying upfront are appraisal fees and perhaps a property inspection because that’s a...
Some of us originate from somewhere away from real estate investing. A person who has been through the same journey is Steve Driscoll of ECONO HOMES, LLC who talks about his experiences and all things private lending. He shares his background on how he went from auto finance to real estate investing, walking us through cars and houses. Steve gives some great insights on how he runs things, from buying and liquidating credit card paper to financing. Touching as well on subjects like LTV and RMLO, he brings information that shows the inner ropes of private lending.
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All Things Private Lending with Steve Driscoll I’m proud and honored to have https://www.econohomesllc.com/ (Steve Driscoll) with us. I met Steve down in Cancun on the Mitch Stephen Real Estate Mastermind. If there’s anything you want to know about that trip, Steve could tell you all the dirt on me and everything. Steve, thanks for coming on. It’s good to see you.
Thanks for asking me to come on board.
There’s no formal structure to this interview. I wanted Steve to come on. We got along good down in Cancun. I’ve seen him in Texas since then at another Mitch Stephen event and I wanted to continue the roll. You were on very quickly on the episode I did regarding the Cancun mastermind, but I want to delve a little deeper into your past and what you do. Correct me if I’m wrong but you are a New York gangster. You’re in the mob.
I was out in the San Antonio and Houston. I didn’t spend much time in Houston. It’s a nice part of the world there but it’s a lot different than what New York is and a lot different than the Northeast. You don’t appreciate the country until you start traveling around it. I had a great time. I met some good people.
You did it right. You went down there in October, which is a good time to go to Texas; May through September. Besides that former criminal activity that you never did, I know you have a background in finance. Give us your background in how you went and got into auto finance I believe now you’re doing in real estate. Walk us through how you went from cars to houses.
If you're an entrepreneur, you better roll with the punches.https://twitter.com/intent/tweet?url=http://privatelenderpodcast.com/plp-049/&text=If%20you%27re%20an%20entrepreneur%2C%20you%20better%20roll%20with%20the%20punches.&related (Click To Tweet) The cars started way back. I took a hobby and decided to make a living out of it. I love automobiles. Who doesn’t love cars? Who doesn’t like cars? I was a kid and I was selling cars out of my driveway. As time went on, I opened up car dealerships and it was around 1985. In 1985, when our friends from Korea started bringing cars to the US under the name Hyundai, we also got another beautiful automobile here called the Pyeonghwa. Detroit started to feel the pinch because they were taking sales away. They started dropping their interest rates and as they dropped the interest rates down, they were buying anybody’s loans that they could fog a mirror speaking.
We went from doing a great business to being almost shut down overnight. What do you do? You had to reinvent. If you’re an entrepreneur or a true person, you better roll with the punches. You’ve got to change with the market and you’ve got to make yourself reinvent it. We went ahead. I did a little research and I said, “It’s the same thing in the real estate market if you’re doing financing. Look at the biggest side of the market. The biggest side of the market is the people that can’t get financed and it’s over 80%.” At the time back in the ‘80s New York metro area, over 80% of the people who were shopping to buy a car didn’t qualify. I said, “I want to go service that into the market.” I made some alliances with some finance companies and that these guys were...
In this second part of the Foreclosure Journal, Keith gives a sneak peak of his private lender academy that is slated to go live in January – what the latest situation is and what steps that must be taken to improve it are. He also gives some updates on the foreclosure process with his house in Port Arthur, offering insights and highlighting what is great about foreclosure.
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PLP-048 Foreclosure Journal: Part 2 I’m going to tease you a little as I have a small announcement I’d like to make about the Private Lender Academy. This episode will be part two of the Foreclosure Journal where I’m going to give you updates on what’s going on in the foreclosure process that I have in a house out in Port Arthur. Unfortunately, I’m running behind schedule. That’s the announcement. The Private Lender Academy does not look like it’s going to be ready to launch in January. I’m still busting my tail to make it happen. I realized that I needed to do a little more research and so I’ve been reaching out to you, the audience and those who have signed up and provided me with your email address. By now, you should have received at least one email from me and I don’t email very much. I hate unnecessary emailing, but I am asking for your help and input to help me shape and create the Private Lender Academy. I want to take my time and deliver a good product. I don’t want to rush something out just because I put a flag in the sand and said I’ll do it by January. That’s the announcement and please stay tuned. You can go to http://privatelenderacademy.com/ (PrivateLenderAcademy.com) and get on the list so that you’ll be alerted and informed when everything starts to roll out. That’s the grand announcement.
This is going to be part two of the Foreclosure Journal. I’m going to bring everybody up to speed to where we’re at in this. If you’re following along, this isn’t quite in real time, but it’s enough in real time that you’ll notice that several weeks have gone by since I’ve given any updates and what’s happening. On this particular house, we sold it with a first position lien for the purchased price. We’re seller financing it to the end buyer and then he asked if we could roll over his closing costs into the note. I wish I could remember why we didn’t do it all in one, but we did a first lien and second lien. The title company wanted us to do it that way to keep things cleaner. When we go to the attorney to get the letter of default and the intent to accelerate the loan, I and my partner, Landon, cannot find an executed copy of the second lien and deed of trust. First, we went to the title company. However, our escrow agent was no longer at the title company where we closed. In fact, they pretty much shut down after that. We were unable to get the second lien. I liaise with the attorney and asked if we could foreclose on the first lien. It’s the bigger one anyway and it still could get the buyer out and get the property back over into our hands. That’s what we did and we’ve also started to advertise the house again for seller financing.
A word of mouth is the best advertising.https://twitter.com/intent/tweet?url=http://privatelenderpodcast.com/plp-048/&text=A%20word%20of%20mouth%20is%20the%20best%20advertising.&related (Click To Tweet) The buyer got the hint because now after not paying anything for almost a year, all of a sudden, he says he has money and he’s returning phone calls. This is a positive thing because my goal isn’t to foreclose on people and resell the house even though that is an option for me and my partner. I don’t want to do that. I don’t want to be predatory. I’d rather have somebody stay in the property. We’ve said that we’re willing to negotiate what’s...
Gustavo Garza, the CEO head guy in charge and main check writer of Clear Path Property Solutions, discusses how to raise other people’s money (OPM) for out of state deals. Going deep into the relationships that start it all, Gustavo talks about the need to build it well with the people and not just ask for money. He shares his own personal journey that eventually got him to start on second liens, giving advice on how to be safe at it. Gustavo shares how he raises money, highlighting the value of networking through social media, conferences, and hosting dinners where people can share the same fears and provide each other solutions. Learn about all of this together with some nuggets about deeds of foreclosure and private lending that will equip you to navigate through investing.
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PLP-047 Raising Other People’s Money (OPM) For Out Of State Deals with Gustavo Garza Joining us is Gustavo Garza, the CEO, head guy in charge and main check writer of http://www.clearpathpropertygroup.com/ (Clear Path Property Solutions). Gustavo, welcome to the Private Lender Podcast.
Thank you.
Thanks for being on. It goes just goes to show you the hustle that’s involved in running your own business. You are a real estate investor full-time. Go ahead and walk us through from the very beginning to your company.
I got into real estate because my wife and I wanted to buy a mobile home park. I was working a six-figure oil and gas job doing well. We wanted to start gaining some passive income. We got to the point of almost closing on this park and we step back and go, “Do you know what you’re doing?” She goes, “No, I thought you knew what you were doing.” I was like, “No, I was pretty much BS all the way up to this point. How about we figure out what we’re doing first before we go and buy an $800,000 mobile home park?” It’s not a small investment at all, so we probably should figure out what we’re doing. That’s when we did one of those real estate programs that everybody likes to knock. I’ll keep their name out of it, but you know who we’re talking about.
That opened my eyes. It was essentially like the scene in The Matrix, “Do you want to take the red pill or the blue pill? Do you want to forget everything and go back to your ordinary life or do you want to embrace the knowledge that you have just received and completely open your eyes to what’s out there?” I felt like that was a decision that was being made. When we did that, out the gate, we started lending money. We did it in the second lien position. We did pretty well our first year. We made a total return on our capital of about 29% between points and interest. We jumped into the home staging of properties that were being done by investors. We started marking for deals. It was a flood of us what can we do, what’s possible and figuring out what interests us.
My wife hates this analogy, I was sleeping around in real estate and I hadn’t figured out who I wanted to marry yet. I’ve got to have a little thought. I’ve got to try a little bit of everything before I figure out where I want to sink my teeth into. Throughout that process, we flipped houses. We’ve wholesaled. We’ve lent money. We learned a bunch of different stuff in the process where it fell into my niche. What I enjoy doing is building the relationships, getting to know people and raising capital for the projects that we have and I’ve been able to do that where I’m based here in Houston Texas. We raised capital for projects in Florida and Iowa and here in Texas. Most of our lenders are from other states outside of those states. They rarely ever see the projects that we’re working on, which I feel is a little bit unique because for the small stuff that we do, we deal with a lot of small investors. I feel that most people want to go see the project that...
As with life, you can’t really predict anything. No natural disasters could save you from the possibility of acquiring damage. That is why it is important to think about insuring your properties in case calamities happen. Keith gets down to the details about flood insurance – what you need to know about it and how to go through it. He shares some personal experiences with Harvey that will give you time to reflect on the possible consequences you may meet along the way. Furthermore, he gives a great overview by covering flood insurance from the perspective of lenders as well as the state.
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The Pros And Cons Of Getting Flood Insurance Flood insurance is a topic that’s near and dear to my heart for a few reasons. Number one, my wife and I went through our own flood insurance claim on our primary residence back in April of 2009. No named windstorm, no Harvey, no Rita, none of that. Just a freak springtime thunderstorm that sat over West Houston and dumped a tremendous amount of water. That’s one reason. The next reason is the flood policy through the https://www.floodsmart.gov/ (National Flood Insurance Program). You’ll buy it through State Farm, Farmers, Allstate or whoever, but it’s relatively cheap. They sell the policy and they will administer any claims. It’s all backed by FEMA, the https://www.fema.gov/ (Federal Emergency Management Agency). That’s why it’s cheap. It’s a government subsidized. This is one case where as an investor you have to take advantage of the subsidy and the relatively low price it would cost your borrower to have the flood insurance.
In my daytime and my real life, not just on TV, I’m a licensed insurance adjuster. I hold property casually, that is. I hold licenses in four states and reciprocity through a whole bunch of others. In the last few years, I’ve adjusted several commercial and industrial flood claims whose settlements total in excess of $160 million. I’ve seen some flood claims and what it can do and have handled a lot of other people’s money during that process. The moral of the story is after Harvey, I now demand flood insurance on all of my notes. People say, “It’s not in a floodplain.”
Back in 2009 when my house flooded, we were fortunate enough to have good neighbors across the street from us who only took on a little bit of water in one corner of their room. We had a young baby at the time. The neighbor said, “Come on over.” We waded across the street. We were talking with the neighbors and they asked if we had flood insurance. I said, “Yes, I’ve always had it. My dad beat that in my brain. If you’re going to live in the Houston area, you better have flood insurance. There’s no getting around it.” I asked them if they had flood insurance and they said, “No, we don’t because we don’t live in a floodplain.” I pointed to my house across the street and I said, “Neither do we.” If you live in a low-lying area or near the coast or river, you should go ahead and expect that those flood policies are going to cost more. The likelihood of a 100-year event or a 50-year event damaging a property is pretty high. If you’re not in a flood zone, it is relatively cheap and you can go to the National Flood Insurance Program to find out more or call your agent and then talk to them about it. I’ll treat this like any other real estate investment. We bought the house in early 2006. It was 1,500 square feet. Nice little ranch-style home in Spring Branch area of Houston. It had an 8,500-square foot lot, 1,500 square feet of living space. We paid $120,000 for it. We lived in it for a few years before we flooded.
That's the beauty of insurance; whether it be flood property or not, funds do not matter as a...
You can’t manage a project without a plan for it. That’s where inspectors come in. Inspectors review and evaluate the overall condition of new and existing properties. They govern the job and work with the scope and budget, which starts when buyers are looking at a house deciding whether they’re going to take the property or not. State licensed real estate inspector Kevin Smith says the scope and budget stop problems and arguments and keeps everybody on the same page. Kevin shares how he became a real estate inspector, the challenges of the job, and the importance of getting one in your team of professionals.
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Inspectors: A Must For Private Lenders with Kevin Smith It’s my pleasure to introduce you to http://www.inspectorofchoice.com/ (Kevin Smith), who is a state-licensed Real Estate Inspector. Kevin, welcome to the show. I appreciate you coming on. For full disclosure, Kevin has done a few houses for me in the past. A good inspector is a must-have in the toolkit on your team for a private lender. Kevin, you’ve been gracious enough to come on and talk to us a bit. Let’s start back in the beginning. What’s your story?
I grew up in Texas. I’m a Vietnam vet. I had a Bachelor’s Degree in English. I couldn’t find a job in the English field when I graduated college and I started working on apartments, which brings later on to me becoming a painting contractor which grew into me becoming a rehab contractor. Rehabs are when the contractor gets a house ready for sale. He fixes everything up. He puts the paint on and gets it all market-ready. I did rehabs for about eighteen years in the Houston area. I did 175 of them and then I got my inspector’s license and this month makes 28 years as a licensed real estate inspector in Texas. I have done well-over 14,000 inspections to date.
You have a background in construction. Number one, thank you for your service and number two, you’re a liberal arts brother like me. I have a degree in philosophy when I got out of college and nobody was hiring philosophers. I couldn’t figure out why. What led you into the inspection side of things?
I’m one of the lucky ones because I pay my bills with money, I earned doing stuff that I like for a living. I liked working on houses. I liked going on different places. I like meeting new people. Not every day is a good day, but most of them are. I enjoy what I’m doing. I started out as a painting contractor and found out that I liked doing this kind of work on houses. As it went along, I had picked up more information. If I was doing a rehab, I had to bring in somebody else to do something I didn’t know how to do, like a plumber or an electrician. I’d lay awake at night thinking about questions I’ll ask the guy when he showed up on the job. I politely asked him, “Can I watch you do what you’re doing? I’m not checking up on you, but I’m curious and I want to learn more.” 99 of people out of 100 of the tradesmen were happy to share and answer my questions and give me the little tips and techniques all along the way. I wound up with the knowledge of plumbing, of electrical work, how to change appliances, how to fix sheet rocks. All the things that you’re going to run into. I already knew how to paint.
All of those rolls up into me being pretty familiar with single-family residential housing. Somebody called me over to a Rich Club meeting and said, “Why don’t you become an inspector?” I said, “What’s that?” I found out what it was and I took all the classes and I took the state exam and became an inspector. I started out doing inspections when I was still doing rehabs, and gradually within about the first eight or nine months, I was able to stop doing the rehabs and focus full-time on the inspections. My focus is investment real estate. That’s what I’m familiar with. That’s...
The real estate investing experience is crucial, especially to someone you don’t know or you’re not familiar with. You want to see a track record of a certain type of investing that you’re comfortable lending to or lending on. While past performance can be a pretty good indicator, it is no guarantee of future success. When you’re taking a loan application or if you are insisting that someone fills out a loan application, the first question to ask yourself is should you require an application of any borrower? The second question is if you do require an application, what information should you ask for? Learn the answers here so you can protect yourself and mitigate the risks.
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Listen to the podcast here:
Should You Require An Application From Your Borrower And What Info To Require I’ll be discussing whether you should require a loan application or not and what type of information would be beneficial or is the most important on a loan application. Before we get into the heart of that matter, I’d like to thank you for sharing your most valuable asset with me and that is your time. Time is the one thing that both the rich and the poor have in common. Everyone gets 24 hours in a day, no more, no less. The man who sleeps on the street has the exact same amount of time as the man who sleeps in an ivory tower. How you spend your time makes a huge difference in life and I’m grateful that you’re spending your time with me.
I’d like to pose two questions to you. The first question is, do you require an application or would you require an application of any borrower? When I loan to people like Chris Funk, my partner, Landon, or Ray Sasser, I’m in the industry enough with them that I don’t require an application. Maybe I should. I do require proof of identification though. However, I don’t always necessarily want or need to take an application from an investor like that. However, if I don’t know you, you don’t have a track record or at least a track record, I’m not going to loan to you. If I’m not familiar with you, if it’s a new joint venture or a new investment, I will require an application from that borrower so that I can get some background and it helps me underwrite the loan. That first question is do you require it? It’s going to be up to you. Everyone fills out the same form. I have all that information. If you’re comfortable with somebody, you may not need that application. I would suggest you verify that they have the funds to pay you back and the reserves to be able to afford the loan. The actual formal application you might not want to use, it’s up to you. It’s going to be a judgment call. In full disclosure, I don’t always require an application, but it’s a good practice. Repeat loans to the same borrower, that’s going to be your call depending on your comfort level with that borrower.
You want to protect yourself if you want to mitigate the risks.https://twitter.com/intent/tweet?url=http://privatelenderpodcast.com/plp-044/&text=You%20want%20to%20protect%20yourself%20if%20you%20want%20to%20mitigate%20the%20risks.&related (Click To Tweet) Then the second question, if you do require an application, what information do you ask for or should you ask for? This is where things can get a little hairy and personal. The deeper you go into somebody’s background, the better protected you are. However, the beauty of going to a private lender is not having to get the financial autopsy that the banks like to perform and some hard money lenders like to do. You want to protect yourself if you want to mitigate the risks. You also don’t want to make it so incredibly difficult for the borrower that they might as well pay a few more interest rate points or points on the loan to get the hard money without the hassle. I’m going to go over a few...
After being hit with the financial crisis of 2007, Tom Berry needed to work on something to get him back on his feet. He went off buying properties and investing in real estate. What separates him from the rest who attempted to go the same path is that he and his team never used a penny of bank money to source for money. He is a seasoned investor, teacher, and the founder of Investor Loan Source which is one of his primary vehicles for assisting fellow investors. Tom shares his journey on how he built Investor Loan Source and provides great wisdom on private lending and how you can also do the same.
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Listen to the podcast here:
Tom Berry Discusses How Investor Loan Source Was Funded Without Bank Money I have a question for you. Are you an investor looking for funding for your next fix and flip or maybe your next rental? Or maybe even you’re owner finance or seller finance or looking for some funding that you can wrap to sell to your end client, to your buyer or tenant. If you’re an investor or a lender who is looking to passively invest in real estate while others do the work, then you’re in luck because https://tomberryrei.com/ (Tom Berry) will loan you money for your deals and/or he will put your money to work by lending it to mortgages backed by real estate. This is really geared for accredited investors. You and your spouse have to make $300,000 a year or you as a single person can make $200,000 a year or have a $1 million net worth that does not include your homestead. I’ve been waiting to get Tom on the show for a while. I’m very happy he agreed.
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I’m more than honored and pleased to introduce to you Mr. Tom Berry who is with https://ils.cash/ (Investor Loan Source) and is the reason that I have this podcast is that I’m a private lender. Tom, welcome to the show. Thank you for joining me.
Thanks for having me. I appreciate it.
I met Tom at https://www.questira.com/ (Quest IRA) in Houston. He was looking for money. He has a great hero background story. How did you get into real estate? I know you came from a different background like most of us in real estate. Can you give us your background story?
My wife and I had a financial services firm. We moved from Ohio down to Texas about a year before the financial bubble burst. In 2007, we lost everything. We went from riding high in 2006 to nothing in 2007. We were part of a lot of people that were out there looking for work and trying to figure out what we were going to do next. I couldn’t find a job. I put out resumes. I couldn’t even get a phone call. I told my wife one day, “If nobody’s going to offer me a job, I’m going to make one.” She’s like, “What does that even mean?” I said, “If I don’t have a job, I’ve got to do something. I’ve got to start some little business, a little company or something.” I’ve always wanted to do real estate and my other job and my other career never allowed the opportunity timing-wise. I guess the opportunity was given to me and it was a blessing in disguise. We didn’t look at it as such at the time, but it allowed me to get into real estate. Like most people that are starting where we were financially, we started out wholesaling. Then we figured out how we can do a couple of fix and flips. We figured out, “We could keep some of these rentals.” We accumulated 425 doors, made over $100,000 a year every year including our first year in cash and were completely and totally financially independent and multimillionaires.
Just because you said you’ve got to do something and no one would hire you.
It pissed me off.
I guess necessity is the mother of invention.
I’m not a person to sit around on my hands and wait for somebody to come to give me something. If there’s no opportunity out there, I’m going to go make one. That’s what it was. I was angry not at anybody in particular. I was angry at my position and my situation at
It can be quite difficult to foreclose a property, but sometimes, you just have to do it. When a borrower has seized making payments, the lender must take some actions before things get worse. In this foreclosure journal, Keith talks about foreclosing on an owner-financed note. He talks about what you need to know with foreclosure as he shares his own personal experience of dealing with a client in this situation, including the difficulties in contact as well as the effects of natural disasters to the property. He walks you each step of the foreclosure process, highlighting his motto of having insurance. Furthermore, he covers the difference between an owner occupant and an investor, and then letting you in on his exit strategy.
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Listen to the podcast here:
The Foreclosure Journal – Part 1: Foreclosing On An Owner Financed Note This is episode number 42. I just want to let you know that I appreciate sharing with me your most valuable asset, and that is your time. I hope I can make everything worth your while. It is my goal to provide private lenders just like you and me with help in mitigating risks and increasing our yields and opening doors for bigger and brighter possibilities, bigger and brighter yields and return on investment as well. Our topic is foreclosure and I have started the foreclosure process or moving towards starting the foreclosure process. My goal is to walk you through each step of the way and share with you what’s happened, how we got here and share my thoughts. Maybe I’ll share my feelings too because this is where the healing begins.
I’d like to thank http://countytaxsaleapp.org/ (CountyTaxSaleApp.org) for their sponsorship of this show, especially http://privatelenderpodcast.com/plp-028/ (Sammy Gupta). Please go check them out. You can’t find a cheaper lead generation tool out there for less than $0.03 a day. It doesn’t matter what device you have or where you are in the world, you can still invest in Harris County, Texas, the third largest in the nation. It’s a good deal. Please check them out.
The Situation Let’s start with the nitty-gritty, foreclosure. What happened? We started actively seeking distressed owners. We found one for a house that was in Port Arthur. It’s very much an industrial town, part of the Golden Triangle, east of Houston. It’s along the coast and very close to the border of Louisiana, the Sabine River. It’s the hometown of a lot of people, Janis Joplin for one and many others. The Golden Triangle is home to a lot of famous athletes and even some actors as well. We found this house and we were able to negotiate the purchase of the house that was in a very bad shape and had a lot of back taxes owed up on it. We negotiated with the owner to purchase it for what was owed in taxes. He was also getting tired of getting citations from the City of Port Arthur when they would come and cut the grass for him. He was happy to get rid of it. What we did, because it was in such bad shape, rather than going in and spending a lot of money and doing a fix and flip on the rehab, we decided, “Let’s go ahead and just try to owner finance this.” We paid cash for the house and ended up selling it last August of 2017 for $30,000 owner finance at 10% interest and we put it out over to ten years.
If you don't do everything by the letter of the law, it can really hurt you.https://twitter.com/intent/tweet?url=http://privatelenderpodcast.com/plp-042/&text=If%20you%20don%27t%20do%20everything%20by%20the%20letter%20of%20the%20law%2C%20it%20can%20really%20hurt%20you.&related (Click To Tweet) Everything closed, everything went fine because the person who was buying the house was not an investor but rather was going to be the owner-occupant. We went through a residential mortgage loan originator who vetted our potential buyer/borrower. Once they did their magic and they crunched the numbers, we figured out that we...
If Title Insurance is a "useless" fee, then why do I insist on having it when I lend money? To Help Keep My Investment Safe
Welcome to the Private Lender Podcast, the only podcast dedicated to creating successful private lenders and a new alternative investment economy without banks or Wall Street brokers. My name is Keith Baker and you’re listening to Episode 39. Being a private lender can be the most passive form of real estate investing there is, and my goal is to keep private lenders safe while increasing their yields.
Sorry Lender Nation, but I have been busy with my day job and haven’t seen my family that much so I am phoning in a short episode to let you know that I am still here and will be producing more episodes – I just need a breather.
Stay tuned for more to come!
Thanks
Leila Khan
Self Mastery and Leadership Expert, Personal Development Author and Soul-Awakening Speaker: Leila Khan is an author, soul-awakening speaker, self-mastery expert, teacher & mentor of personal transformation.She is also the creator of The Trailblazers Mentorship for aspiring entrepreneurs who want to reach the next level in their personal and business life.
She passionately engages, motivates and inspires professional ‘success seekers’ to lead lives that fulfil their core desires using the incredible power of the mind. She teaches and encourages self-mastery to energies the human spirit and experience the deep well of inner potential for a happy, meaningful and satisfying life.
She is the winner of ’Outstanding Woman in Business, in Scotland’ and has spoken on stage to around 2000 people at the National Achievers Congress in London. She also shared the same stage as Tony Robbins. Her third book 101+ Ways to Overcome Life’s Biggest Obstacles! was published in 2017.
Leila is available for keynote speaking, business & personal development seminars, team & one to one coaching or mentoring.
(Contact her to have a conversation about how she can create something uniquely motivating and beneficial to your organisation or for further information. She’s ready to inspire!)
To find out more about Leila, please visit the following link: http://lifeistodayacademy.com/about/ (Find out more about Leila Khan)
Be sure to attend the next meeting of. . . . . .
https://www.713reia.com/ (713 REIA) a Strong Real Estate Investors Association built by and for Investors Hosted by Landon Rothstein & Ray Sasser
Where Deals Get Done!
And please donate to the Texas 100 and make sure owner finance rights are understood and upheld! Click the Image/Link Below!
https://texas100.org/ ()
The most important podcast episode, ever. This is your only source for unbiased information about passively investing in real estate as a Private Lender. Donald Trump and the liberals can not, will not want not, and shall not stop this podcast. This is the best alternative investment podcast available.
Thank you for your support!
I will post show notes just as soon as I am able.
Thanks for understanding, listening and supporting this podcast!
Today's episode is a quick discussion on the book: The Richest Man In Babylon
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http://privatelenderpodcast.com/wp-content/uploads/2018/09/IMG_4279.jpg ()http://privatelenderpodcast.com/wp-content/uploads/2018/09/IMG_4280.jpg ()
I highly encourage you to read this once per year. Look to see how Private Lending can fit into the theme of the book and help you grow your wealth. I find it very interesting that even though technology is changing at such a rapid rater (and getting faster)the more these old-world principles prove to be true, time and time again.
I wish you all the best,
-k
Be sure to attend the next meeting of. . . . . .
https://www.713reia.com/ (713 REIA) is a Strong Real Estate Investors Association built by and for Investors Hosted by Landon Rothstein & Ray Sasser
Where Deals Get Done!
And please donate to the Texas 100 and make sure owner finance rights are understood and upheld! Click the Image/Link Below!
https://texas100.org/ ()
Ron LeGrand in his own words: “When I first got involved with real estate I was a dead broke auto mechanic trying to make enough money to make ends meet. There was no such thing as disposable income around my house. It was all disposed of before I got it. Thirty-five years old, bankrupt and I didn’t have a clue what I wanted to be when I grew up; but I knew it wasn’t fixing cars in the hot Florida sun.
The year was 1982. I saw an ad that said something like “Come learn how to buy real estate with no money or credit.” That appealed to me because I had no money or credit and I liked the rich idea. So, I attended the free seminar. The instructor got us all excited about real estate and showed us how people were buying real estate with no money down. Then he said, “if you pay $450 and attend our two-day training this weekend, we’ll show you all the secrets”. I wanted in but I had a big problem, actually 450 of them.
But something compelled me to find a way to get the money and that’s what I did. I borrowed it from two friends and showed up for the seminar. That decision changed my life forever, my family’s life and their family’s lives for generations to come, not to mention hundreds of thousands of my students and their descendants into the millions. That one small split-second decision that could have gone either way made me millions of dollars since and spawned countless numbers of millionaires all over North America and other countries I can’t even pronounce.
In fact, most of the stuff taught in that seminar was over my head. I was clueless and could barely spell real estate. But I picked up one idea I felt I could do and within three weeks I made my first $3,000 from real estate using none of my money or credit, which I didn’t have. I immediately called my boss and said, “I’m upping my income… up yours!” The biggest thing that seminar did for me was get me involved in real estate and committed to changing my lifestyle. For years I’d been looking for something but didn’t know what it was. When I got my hands on that three grand it became crystal clear real estate was my future.
Fast-forward two years, I had amassed 276 units, some single family, some apartments, not including some I sold along the way to live. I was a millionaire… on paper. I had over $1,000,000 in equity two years after starting with no money or credit.
Reality Arrives!
I sat down one Friday evening to pay my bills and realized my outgo was bigger than my income and my upkeep was becoming my downfall. All I had accomplished was create a big, ugly mess. I’d spent two years buying the wrong properties the wrong way in the wrong areas for the wrong reasons. I built my empire on a house of cards, not a solid foundation.
You see, I really didn’t understand the real estate business. I just bought properties because I could, without money or credit. I bought all the crap savvy investors wouldn’t touch. They’d already been to the school I was about to graduate from… The School of Hard Knocks. All my low income properties in war zone areas with brainless tenants were sucking me dry, financially and mentally. My days were spent solving their petty problems and listening to all the worthless excuses why they couldn’t pay rent.
I spent the next five years selling off my junk for dimes on the dollar. It took me seven years into the business to really understand it and get my life back. Oh, I made a good living during that time. Several times my job income. But I sure wish I’d known me back then and had the system then that my students have now. On second thought it wouldn’t have mattered anyway. I wouldn’t have listened. I’m a man, men don’t follow instructions. It’s testosterone. It’s not our fault. We can’t help it.
After about seven years
https://www.youtube.com/watch?v=wDlEFsiUBV8&t=371s (How to become a millionaire? Plant Seeds) http://privatelenderpodcast.com/wp-content/uploads/2018/08/JES2.jpg ()
Sometimes the simplest of ideas can inspire massive change within an individual.
I purchased a CD of this speech a few years ago through SUCCESS magazine, I believe. I placed it a drawer and forgot about it for a year or two. After I listened, I knew that something was different – something had changed.
I’m not a fan of Rah Rah artists and mentors who provide tons of positive encouragement but really don’t provide actionable tactics and advice, thus my initial skepticism of Shoaff’s method seemed justified: it seemed as though it were too simple, too easy, and not nearly complicated enough.
But Shoaff provides a road map and the small number of steps one must do to plant their seeds – to achieve their goals. I like to listen to this speech every so often and replant some seeds.
You can find versions of https://www.youtube.com/watch?v=wDlEFsiUBV8&t=371s (this )and several videos of J. Earl Shoaff on https://www.youtube.com/results?search_query=j+earl+shoaff (YouTube)
SPECIAL OFFER!!
Get 25% off your Quest IRA Expo tickets with promo code: https://questira.lpages.co/quest-expo/ (BakerExpo)
Click the image below to purchase your tickets!
https://questira.lpages.co/quest-expo/ ()
Be sure to attend the next meeting of. . . . . .
https://www.713reia.com/ (713 REIA) Hosted by Landon Rothstein & Ray Sasser
Where Deals Get Done!
Please donate to the Texas 100 and make sure owner finance rights are understood and upheld! Click the Image/Link Below!!
https://texas100.org/ ()
http://privatelenderpodcast.com/wp-content/uploads/2018/07/John-Jackson-Head-shot-2018.jpeg ()
FAST CASH WITH LEASE OPTIONS
Do you know the fastest and easiest way to a paycheck in real estate?
Are you new to real estate?
Do you think that you need access to cash to make money in real estate?
Would you like to learn how to make money without using money, credit or even risking anything?
Welcome to LEASE OPTIONS!
John Jackson started Leasing to Buy over 15 years ago and has done over 600 lease option transactions, and he never even met with many of the sellers or buyers!
John teaches students across the country how to get started with lease options by showing them how to actually DUPLICATE his business model!
Let John show you how to:
Work with nice houses in nice areas!
Stop throwing away leads and turn skinny leads into CASH!
Make $6,000, $7,000 or MORE on each easy deal!
Make money in real estate using NO money!
Make money in real estate with NO risk!
Make money in real estate using NO of credit!
Learn the 3 types of lease options, and how to make money with each type!
Make money WITHOUT negotiating with the owner!
How to do lease option deals without ever seeing the house!
Learn the TRUTH about lease options in Texas!
If you are a WHOLESALER, John can show you how to turn all of those “skinny” leads that you just can’t figure out what to do with, into CASH!
STOP throwing away leads you don’t know what to do with!
You paid for those leads, so why not make MONEY off of them?
If you are an investor in Texas, then you really need to listen in, as John is the only educator that teaches lease options in Texas! Listen as John explains the TRUTH about lease options in Texas! YES, despite what everyone has heard, they are completely legal!
John is highly regarded in the real estate and real estate training fields, having taught some of the well known national educators as well as having been a featured guest on many of the top real estate podcasts.
For more information about Lease Options or to contact John Jackson:
https://www.facebook.com/leasingtobuy ()
facebook.com/leasingtobuy
http://privatelenderpodcast.com/plp-028/ ()
SPECIAL OFFER!! Get 25% off your Quest IRA Expo tickets with promo code: https://questira.lpages.co/quest-expo/ (BakerExpo)
Click the image below to purchase your tickets!
https://questira.lpages.co/quest-expo/ ()
Be sure to attend the next meeting of. . . . . .
https://www.713reia.com/ (713 REIA) Hosted by Landon Rothstein & Ray Sasser
Where Deals Get Done!
Please donate to the Texas 100 and make sure owner finance rights are understood and upheld! Click the Image/Link Below!
https://texas100.org/ ()
Learn the answer to one of questions I am asked the most: Where do I find Private Lenders?
Episode 30 Quote of the Day: “Money is usually attracted, not pursued.” – Jim Rohn
WHAT YOU’LL EARN ON THIS EPISODE:
The Usual Suspects of Money Sources
1 – Hard Money Lenders (seriously, they can be an amazing asset to a fledgling investor)
2 – Banks: Mortgage, Biz Loan, HELOC, signature loan, portfolio
3 – Family and Friends (Are you sure about this? – Caveat Emptor)
4 – Social Functions – (Highly Recommended)
Real Estate Investment Association (REIA) meetings
Meet Up groups
https://questira.lpages.co/quest-expo/ (Self-Directed IRA custodian events)
Mentor/Coach sponsored events
Nationwide Guru Seminars (think Ron LeGrand, Robert Kiyosaki, Than Merrill, etc
the Private Lender Podcast events (COMING SOON!!)
SPECIAL OFFER!!
Get 25% off your Quest IRA Expo tickets with promo code: https://questira.lpages.co/quest-expo/ (BakerExpo)
Click the image below to purchase your tickets!
https://questira.lpages.co/quest-expo/ ()
Be sure to attend the next meeting of. . . . . .
https://www.713reia.com/ (713 REIA) Hosted by Landon Rothstein & Ray Sasser
Where Deals Get Done!
Please donate to the Texas 100 and make sure owner finance rights are understood and upheld! Click the Image/Link Below!!
https://texas100.org/ ()
http://privatelenderpodcast.com/wp-content/uploads/2018/07/Fabian-Pic.jpg ()Fabian Toledo is a full-time real estate investor, wholesaler and flipper in Houston Texas. Fabian was formerly a Quality Control Inspector for FEMA in addition to being a licensed realtor for more than a decade. He is currently a stockholder of eXp Realty and Founder of LatinosinRealEstate.com, an organization that teaches real estate investing in Spanish. Fabian’s favorite investments are “Subject to” deals, and his favorite sources of funding are IRA funds and private capital.
Fabian’s additional accomplishments include first place winner of the Best Investment Case Study 2017- Quest IRA, former board of directors for the RICH club, NHPO leadership institute graduate and a Landmark education graduate. He hails from the beautiful country of Colombia and is passionate about enriching the Latino community! His future plans include exploring the real estate investing arena of Puerto Rico and expanding the Latin influence in real estate to other cities.
http://www.FabianToledo.com (www.FabianToledo.com)
Connect with Fabian’s REIA group: http://www.LatinosInRealEstate.com (www.LatinosInRealEstate.com)
http://www.LatinosInRealEstate.com ()
SPECIAL OFFER!!
Get 25% off your Quest IRA Expo tickets with promo code: https://questira.lpages.co/quest-expo/ (BakerExpo)
Click the image below to purchase your tickets!
https://questira.lpages.co/quest-expo/ ()
Be sure to attend the next meeting of. . . . . .
https://www.713reia.com/ (713 REIA) Hosted by Landon Rothstein & Ray Sasser
Where Deals Get Done!
Please donate to the Texas 100 and make sure owner finance rights are understood and upheld! Click the Image/Link Below!!
https://texas100.org/ ()
http://privatelenderpodcast.com/wp-content/uploads/2018/07/IMG_9819.jpg ()
Sammy Gupta has been investing in single-family residences for 15 years mostly by using Private Lenders’ money to fund his deals. Sammy and his team survived the financial crisis and shifted their investing strategies and lead generation as the market changed.
Ultimately Sammy developed an online App that helps investors find and source properties that are delinquent on paying property tax and that are scheduled to be auctioned off at the Harris County (TX) Tax Sale.
(In Texas, the County Tax (Foreclosure) Sales are held on the first Tuesday of every month.)
What You Will Earn On This Episode:
Where Sammy finds his Private Lenders
The strategy that allowed Sammy and his team to not only survive but to thrive through the Great Recession
Sammy has developed a web App for purchasing tax foreclosure properties in Harris County, TX
Since it’s a web App, you can access it from ANY device and you don’t need to download anything
To Earn More:
http://www.countytaxsaleapp.org (www.countytaxsaleapp.org)
For Questions or more information, please email:
support@countytaxsaleapp.org
OR
stephanie@countytaxsaleapp.org
The book Sammy is currently re-reading:
https://www.amazon.com/gp/product/1912032996/ref=as_li_tl?ie=UTF8&tag=privatelender-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1912032996&linkId=ea8db00cbf6798b1a1ebbad8c052e086 (Think and Grow Rich )by Napoleon Hill
Don’t forget to email any questions to info@privatelenderpodcast.com, and I would be most grateful if you could leave a Rating & Review
SPECIAL OFFER!!
Get 25% off your Quest IRA Expo tickets with promo code: https://questira.lpages.co/quest-expo/ (BakerExpo)
Click the image below to purchase your tickets!
https://questira.lpages.co/quest-expo/ ()
Be sure to attend the next meeting of. . . . . .
https://www.713reia.com/ (713 REIA) Hosted by Landon Rothstein & Ray Sasser
Where Deals Get Done!
Please donate to the Texas 100 and make sure owner finance rights are understood and upheld! Click Link Below!!
https://texas100.org/ ()
http://privatelenderpodcast.com/plp-023/ (“OUR voices must be heard at the State and Federal levels!” – Texas 100)
What You Will Earn on this Episode:
One of the most frequent questions I receive is: “how much money do I need to become a private lender?” The person asking the question will then go to qualify this question by saying they don’t have a big IRA, they don’t have any 401k’s that they can roll over, and they don’t have a large sum of inherited cash. How does a person get started if they’re darn near broke?
While you absolutely need to save up a sum of money in order to lend it out to others, a small amount of money shouldn’t discourage you from becoming active and involved in Private Lending. Obviously the more money you have to lend, the larger your pool of options will be, but just remember this: Everybody has to start somewhere
3 Key Points to Consider:
1 – You can begin lending with just a few thousand dollars
2 – A way to determine if your employer would allow you roll over a portion of your retirement plan (401k, 403b, etc), while still being employed: an http://privatelenderpodcast.com/glossary/ (In-Service Distribution/Withdrawal).
3 – If you don’t have much to lend, your primary concern should not be the interest rate and amount of money you potentially earn, but rather building your network, and therefore building your Net Worth.
Don’t forget, you can find certain key words and phrases at the http://privatelenderpodcast.com/glossary/ (Glossary of Terms)
SPECIAL OFFER!!
Get 25% off your Quest IRA Expo tickets with promo code: https://questira.lpages.co/quest-expo/ (BakerExpo)
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Don’t forget to email any questions to info@privatelenderpodcast.com
Be sure to attend the next meeting of. . . . . .
https://www.meetup.com/713-Houston-Area-Real-Estate-Investor-Network/ (713 REIA) Hosted by Landon Rothstein & Ray Sasser
Where Deals Get Done!
Please donate to the Texas 100 and make sure owner finance rights are understood and upheld! Click Link Below!!
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http://privatelenderpodcast.com/wp-content/uploads/2018/06/IMG_2461.png ()Ray Sasser Ray has been buying Single Family houses for more than 30 years around the Houston area. During that time he has bought and sold over 1,000 houses. He also owns a property management company and typically has 3-4 rehabs going on at any time. Ray is known throughout the investor community as an expert rehabber as well as an expert transaction engineer.
Ray is the kind of investor Private Lenders should seek out.
Ray –
Began investing in Real Estate in 1982
Has rehabbed over 1,000 houses
Served as President of the Realty Investment Club of Houston
Co-owns Alamo Real Estate Investors Association in San Antonio, TX
Co-owns 713 Real Estate Investors Association in Houston, TX
Owns a property management company
Is a mentor and coach
Utilizes Private Lenders’ money for his and his students’ deals
Is a private lender himself
Also lends from his Self-Directed IRA
Does deals/loans all over the state of Texas
What you’ll earn on this episode:
The value of starting small and working your way up to higher levels of sophistication
Get around experienced people, establish relationships, make loans and learn everything you can
Ray treat his Private Lenders extremely well and makes sure they are paid first, especially if he gets upside down on a deal
Suggests Private Lenders help the borrower to be successful
insights into various aspects of Real Estate Investing that go against conventional wisdom
To learn more and get in contact with Ray:
ray@raysasser.com
https://www.alamoreia.org (Alamo Real Estate Investors Association)
https://www.713reia.com/ (713 REIA)
Voice/Text: You gotta listen to episode!
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Please donate to the Texas 100 and make sure owner finance rights are understood and upheld! Click Link Below!!
http://www.texas100.org/ ()
People you’ll listen to on this episode:
Mitch Stephen (PLP episode 6) http://1000houses.com/ (1000houses.com)
http://reinvestorsummit.com/ (reinvestorsummit.com)
Daryl & Felicia Claiborne http://www.Investreconpro.com (www.Investreconpro.com)
http://www.squadglammigalore.com (www.squadglammigalore.com)
Steve Driscoll Sunrisecredit@yahoo.com
866-779-3770
Crystal Caruthers http://www.ownerfinanceokc.com (www.ownerfinanceokc.com)
http://www.okcashhomebuyers.com (www.okcashhomebuyers.com)
Eddie Speed http://www.noteschool.com (www.noteschool.com)
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Please donate to the Texas 100 and make sure owner finance rights are understood and upheld! Click Link Below!!
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1 – How I got involved in my first Joint Venture deal:
Investor friend came to me for a private mortgage on Single Family Residence he owned as a rental in Baytown, TX.
Coming up on 5-year anniversary and balloon note was due: $55,000, looking to borrow 65k.
Had too many mortgages in his and his wife’s names – Banks said “NO”
Originally asked if I would refinance him for 5 years at 5% (take some cash out)
Well. . . .
I only wanted to loan for 12 months
Interest rate too low, and higher interest rate would significantly reduced his monthly cashflow
House had a really good tenant (building their retirement home)
I declined the, didn’t meet my criteria on paper, and my gut said no
He tried other sources of money but was unsuccessful and came back
He suggested
Option 1: He sells the house to me/my IRA at slight discount
Not want I wanted to do
I wasn’t comfortable with his asking price (~75k, his ARV ~90-95k)
Option 2: We do Joint Venture on the deal,
he sells the house to my LLC at a significantly reduced price
He retains a percentage of the deal (TBD) and I get to keep the cash flow
I chose to Joint Venture
My LLC got a loan at a community bank (w/ personal guarantee)
I had to come up 20% down payment
Down Payment and my share of closing costs = 14k
Partner retained 40%
Closed in early September
How things worked out
First 3 months were easy
Tenant called on Oct 23rd and apologized for mailing the rent payment late (arrived on the 26th)
Tenant finished building retirement and moved out in December
Who does what? Who manages property? Who handles repair requests or contacts the tenants?
2 – Lessons Earned and what you should take away from this story:
Didn’t run the numbers well enough.
Became too active an investment for my liking
Should have negotiated better terms – I had the most leverage and all the time, balloon due, un-mortgageable) not to take advantage of the partner but could have made the deal work better for me and I never asked
Failed to confirm tenant’s security deposit transferred to me (LLC) 1k
Didn’t outline each partner’s precise responsibility, duties, obligations
Didn’t discuss or formalize how the property would be managed
However, aside from some tenants headaches, miscommunication between the partner and I sold the house to a group of 3 investors (my partner was one). When the final sale settled, I run some numbers and found that I had made about 8.5% on my money in 26 months – not the ROI was hoping for on a “passive” investment.
But all is well that ends well! I did made money so the investment was not a loss. And besides, I was able to earn a good education by taking action – not by reading about it or looking at someone else’s case study. I was in the middle of it and felt all the emotions: the good, the bad and the horrific.
My education consisted of the following crash courses in such topics as:
Where there is a will there is a way
The power of a network
How to be creative when putting together a deal
How not to JV when you don’t ask questions or get a second opinion (until its too late)
How one should always let someone else look over the deal if you are not sure (investor and lender)
Property managers need to be managed, closely
Tenant screening is VITAL to getting a good tenant and increasing your ROI
Please Visit and Support the following:
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https://www.meetup.com/713-Houston-Area-Real-Estate-Investor-Network/ (713 Houston Area Real Estate Networking) Hosted by Landon Rothstein & Ray Sasser
http://privatelenderpodcast.com/wp-content/uploads/2018/06/Joy-headshot.jpg ()JOY GENDUSA About Joy Gendusa:
Joy Gendusa is an entrepreneur, business owner, author, keynote speaker and philanthropist. She is the Founder and CEO of PostcardMania, a marketing company specializing in lead generation for businesses of all size. With only a phone, a computer and postcard marketing (no VC funding or investors!), Joy grew PostcardMania from a startup into an industry leader generating more than $49 million in annual revenue and employing more than 210 people in the Tampa Bay, FL area.
As a business leader, Joy has been awarded the Tampa Bay CEO of the Year, Entrepreneur BusinessWoman of the Year in Tampa Bay, and twice been an Ernst & Young Entrepreneur of the Year finalist. Her company, PostcardMania, has been featured on the Inc. 500 and the Inc. 5000 lists, and has helped 78,589 small businesses (including thousands of real estate investors) with their marketing.
Joy’s marketing strategies and accomplishments can be seen in today’s top business publications, such as Entrepreneur, Business Insider, Inc. Magazine and more.
What you’ll earn on this Episode: Joy began brokering printing for other businesses in the late 1990’s.
She started PostcardMania after refusing to allow a printer to put their 800 number on one of her customer’s orders.
What started off with a staff of 3 has grown to a company of over 200 employees and over 50 million in revenue. How did she do it?: by continuously overpromoting Postcard Mania’s services!
Joy wanted to help small business owners figure out how and where to spend their marketing dollars:
Google?
Social?
Direct Mail?
To whom to market – which list to use?
The solution she came up with is http://www.Postcardmania.com/privatelenderpodcast (Everywhere Small Business)
http://www.Postcardmania.com/privatelenderpodcast (Everywhere Small Business) starts with direct mail postcards, plus
mail tracking code (know when postcard is delivered)
call tracking phone number that rings your phone (and records the phone calls)
when recipient visits your website they receive a cookie to trigger Google ads
list specific Facebook marketing
Customers are seeing increased response rates to their marketing by incorporating http://www.Postcardmania.com/privatelenderpodcast (Everywhere Small Business)
Postcard Mania can provide lists based upon several life events, including:
Foreclosure
Death
Bankruptcy
Probate
Divorce
And more
Joy has written a book – “Postcard Marketing in an Online World”
http://Postcardmania.com/podcast (Postcardmania.com/podcast)
Take advantage of Joy’s AMAZING offer for PLP listeners:
1,000 free postcards with Everywhere small business!
Click click on the link below: http://www.postcardmania.com/privatelenderpodcast (Postcardmania.com/privatelenderpodcast) Not sure how Postcard Mania can help your business? Then call 844-573-8085 or email Joy directly at joy.gendusa@postcardmania.com
Click below to see examples of successful post campaigns from other Real Estate Investors: http://privatelenderpodcast.com/wp-content/uploads/2018/06/PM-Successful-Campaigns.pdf (PM-Successful Campaigns)
Please Visit and Support the following:
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https://www.meetup.com/713-Houston-Area-Real-Estate-Investor-Network/ (713 Houston Area Real Estate Networking) Hosted by Landon Rothstein & Ray Sasser
What you’ll earn on this Episode Mistakes that I made (and lived to tell):
I used the title company’s attorney to draft the loan documents (Deed of Trust and Promissory Note) – Lesson: use YOUR own attorney who drafts the docs for you
I wasn’t a stickler for payment on time (didn’t charge penalties) which told the borrower it was OK to pay late
I trusted the borrower’s assessment of the property’s value rather than looking just a little deeper myself
Things to take away:
Always get a copy of the Driver’s License and Social Card from ALL borrowers, members of an LLC, INC, LLP, etc.
THIS WILL ANGER LANDLORDS, but I prefer to discount rental properties when determining the Loan To Value I’m willing to accept on a property.
Don’t be afraid to exercise your rights to foreclose if a borrower doesn’t perform as agreed
Remember, its your money. You should only loan money on deals that make sense to you, and that make you comfortable. If you’re comfortable, ask somebody for help (second set of eyes) or walk away
Please Visit and Support the following:
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What You'll Earn in this Episode:
In this episode Keith discusses a great way to get your feet wet with Private Lending. By providing the funds to a hard money lender, the Private Lender has the opportunity to peek behind the curtain to study and learn the process of underwriting a loan on a single-family property.
A simple internet search can put you in touch with investment funds and hard money lenders in your area.
"Opportunity is missed by most people because it is dressed in overalls and looks like work"
--Thomas Edison
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Brant Phillips: Investor, Lender, Coach, Entrepreneur http://privatelenderpodcast.com/wp-content/uploads/2018/05/BrantHeadShot.jpg ()Brant Phillips
Brant is a full-time real estate investor, business owner, business coach, speaker and bestselling author. He has been featured on Fox News as a Real Estate expert and hosts local seminars and training events.
Brant is a proverbial ‘rags to riches’ story, while living in an apartment and having no money, he was able to purchase his first investment property on a credit card! He went on to by 10 properties that same year with no money down and since that time has gone on to purchase, renovate, flip and rent hundreds of homes and owns a portfolio of rental properties in the millions and continues to flip houses and take part in a variety of real estate projects, including new home construction and development.
In addition to Brant’s real estate pursuits, he’s an active entrepreneur as owner of a coaching and consulting business. One of his companies, Invest Home Pro, was recognized by Inc. 5000 as one of America’s Fastest-Growing Private Companies.
Brant is a former police officer who prides himself on integrity and serving others. He is a husband and father of five and enjoys helping and teaching people to experience the freedom and success he has achieved through successfully investing in real estate.
You can learn more about Brant here:
https://followup.cc/l/11069559/d5aef6a17d92b3d03850965517ffe7ce/http%3A%2F%2Fwww.brantphillips.com%2F (www.BrantPhillips.com)
https://followup.cc/l/11069559/d5aef6a17d92b3d03850965517ffe7ce/http%3A%2F%2Fwww.facebook.com%2FBrantAPhillips (www.Facebook.com/BrantAPhillips)
http://www.REIAction.com (REIAction.com)
On this Episode listen to Brant discuss the following:
How Brant maneuvered through the Great Recession when banks wouldn’t lend
The benefits of private lending: investing locally and seeing the results first-hand
Private Lenders helped Brant leave his corporate job and invest in real estate full-time
Brant’s thoughts on Lending/Borrowing from family members
Some of Brant’s Non-Negotiables for Lenders
Close at a title company
First Lien Position
Understand the investment
Make sure the numbers make sense
Brant has written a book: ”The Private Lender Playbook”
Please Support: http://www.texas100.org/ ()
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https://richclub.org/ ()
https://richclub.org/ (The RICH Club – Realty Investment Club of Housto)https://richclub.org/ (n)
The Private Lender Manifesto (a.k.a. the Spring of 2018 Rant) 1 – Take Responsibility for every aspect of your finances
2 – Take Control of your cash flow, savings and investments
3 – Take Action and create your future now
Recommended reading:
(reading these books should be mandatory in every high school in the USA, if not the world)
https://www.amazon.com/gp/product/0451205367/ref=as_li_tl?ie=UTF8&tag=privatelender-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=0451205367&linkId=60b4e9ec45a2f19864a573a09611a7c2 (The Richest Man In Babylon )by George S. Clason
https://www.amazon.com/gp/product/1589795474/ref=as_li_tl?ie=UTF8&tag=privatelender-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1589795474&linkId=914f7e15e7a55af2255bddcc7452d708 (The Millionaire Next Door) by Thomas J. Stanley & William D. Danko
Announcing the PRIVATE LENDER ACADEMY!! I’ve decided to go ahead and announce the creation of the Private Lender Academy – an online educational platform to promote the teaching of the fundamentals of lending. Now that I’ve let the cat our of the bag and announced to anyone who will listen, I hope this tactic will provide some needed motivation to add yet another project on my plate: If I do not launch the Private Lender Academy to the public by September 1st, 2018, then let this stand as my witness: please call me out on this website, in social media Facebook, Twitter, Instagram, LinkedIn.
I believe I have just burned the boats, so to speak. I have given myself just under 120 days to have the following educational tools available for FREE:
1 – Private Lender Risk Survey – A short interrogation designed to gauge the risk tolerance of a fledgling lender. Private Lending is NOT for everyone, and I believe it is best to put the effort into facilitating self-awareness before investing in anything. Knowing who you are as an investor is crucial to creating any sustained success. In order to create a product that is completely unbiased towards Private Lending, I will now be forced to Google every possible investing risk tolerance assessment, and hack (rip-off) from those found on many popular 401(k) sites! ; )
2 – Private Lender Academy – Phase One: Private Mortgage Lending –
An online class that will teach the fundamentals of successful lending: basic lending principles, conquering the fear to make the first loan, understanding and underwriting the loan, , how to beat the IRS by being a Private Lender, and much more.
It is my personal goal to eliminate the need for banks in real estate investing, and so the more people who become educated on alternative investments, the more we can change and adapt to insure prosperity for ourselves and for others who are seeking to command their investments and therefore their futures.
Buckle up Buckaroo, I look forward to this being a wild ride! Now I REALLY have to get to work!
All the best,
-k
“No sympathy for the devil; keep that in mind. Buy the ticket, take the ride…”
– Dr. Hunter S. Thompson
Paul Ritter – MyCreditTeam.com and ScreenTheTenant.com http://privatelenderpodcast.com/wp-content/uploads/2018/04/Professional.jpg ()
Paul Ritter has over 25 years’ experience in the mortgage and credit enhancement industries. He has developed software, which invokes mortgage-underwriting guidelines. It is very useful for anyone looking to buy a home, wants to run “what if” scenarios and is especially useful for Lease Option transactions. Paul has formerly owned and operated several mortgage companies. He is currently the owner of Credit Investigation Service, dba My Credit Team that specializes in credit enhancement for the Real Estate Industry. He also owns a screening company, which provides the front-end piece to evaluate potential tenant/buyers. He is an expert in building Business Credit. Paul is well versed in identity theft protection and repairing a credit report after an ID theft incident. He is FICO certified, an expert in his field and a national sought after speaker.
Contact Paul and learn more at:
http://www.screenthetenant.com/ (Screenthetenant.com)
http://www.mycreditteam.com/ (Mycreditteam.com)
Special Offer for PLP listeners!! Fees Waved:
$79 analysis
$119 set up
50% Off Coupon
Text: name and email address
412-242-2733
Building a Lender’s Team of Professionals
In every business it is wise to surround yourself with a stellar team. In private lending, this team not only makes life easier it helps keep you safe and prosperous. The professionals you will need on your team include:
Attorney – prepare your documents and handle foreclosure, among other things
Appraiser – to provide you a professional opinion on the value of a property
Title Company – a trusted friend that is a necessity
Property Inspector – to determine the condition of a property as well as insuring the rehab/construction work is progressing according to predetermined draw schedule/plan before you release more funds to the borrower
Note Servicing/Escrow Services – let someone else collect the payments, withhold taxes and issue 1098’s
Insurance Agent – self-explanatory, or is it?
Surveyor
Accountant/Bookkeeper
RMLO (Residential Mortgage Loan Originator) – to help with owner financing
Realtor
Use Coupon/Promo Code: KeithQ on your account application and for a limited time. . . . . .
All Account Opening Fees are waved! This extremely rare promotion is ONLY good through 11:59pm on Tuesday, April 17th, 2018 (all documentation must be received and the account opened before the end of tax day 2018). Call 1-855-FUN-IRAS if you have any questions.
Normally Quest IRA charges a one time fee of $100 per account for an application/account opening fee, but now you can open as many accounts as you wish, for you and everyone in your family for FREE!
Just think, if each person in a family of four (even minor children) opens a ROTH IRA they save $400! AND they now have one of the most powerful tools for tax deferred wealth creation. You don’t even need to fund the account to open the account – it doesn’t get any better than this!
Click on the logo image below and use Promo/Coupon Code on the application:
KeithQ
https://www.questira.com/open-an-account/ ()
Landon Rothstein began real estate investing by using conventional bank loans. But he quickly found after the fourth loan the banks would no longer loan to him. That’s when Landon began utilizing loans from private lenders to amass a portfolio of well over 80 rentals and owner financed notes. He now enjoys the lifestyle of a full-time real estate investor, and has teamed up with some amazing partners.
Landon has teamed up with Houston area REI heavy hitter Ray Sasser. Together they host one of the fastest growing real estate https://www.meetup.com/713-Houston-Area-Real-Estate-Investor-Network/events/248251169/ (Meetups) in Houston.
Contact Landon:
281-852-7777 mobile/text or via email at: landon@sellerfinanceme.com
Visit with Landon at: https://www.meetup.com/713-Houston-Area-Real-Estate-Investor-Network/events/248593599/ (713 Real Estate Networking w/ Landon and Ray Sasser)
Please visit http://www.texas100.org/ ()
How do the new tax laws affect Private Lenders? – IT DEPENDS!!
http://privatelenderpodcast.com/wp-content/uploads/2018/03/M-Plaks.jpg ()
Listen as Michael Plaks explains:
-How the new tax laws can affect Private Lenders and the profits they receive from the interest on their loans.
-What investment vehicle is practically custom designed for Private Lending
-Learn about changes to Self-Directed IRAs.
Michael has been helping Real Estate Investors and Private Lenders save $$$$ from their tax bill for over 2 decade, and he can help you save as well.
To find out more about the special offer only for Private Lender Podcast listeners that Michael has graciously provided, visit http://www.reitaxfirm.com/plp (reitaxfirm.com/plp)
Many thanks Michael!
And please be sure to visit and donate to http://www.texas100.com (The Texas 100 )
http://www.texas100.org ()
Listen as Keith explains how he determines ARV (After Repaired Value) and LTV (Loan To Value) for short-term flips as well as long-term rentals. Learn the reason why he discounts his LTV on rentals and other insights on this episode.
Please visit: texas100.org and donate to make a difference for Real Estate investors and the communities we serve!
Kevin Bupp Listen to serial entrepreneur Kevin Bupp discuss his path to Real Estate and how he utilized a loan from a private lender on his very first deal.
Links:
http://www.kevinbupp.com/ (KevinBupp.com)
https://sunrisecapitalinvestors.com/ (sunrisecapitalinvestors.com)
http://72hourstokeywest.com/ (72hourstokeywest.com)
Books Mentioned:
http:// (Traction) by Gino Wickman
http:// (The Slight Edge) by Jeff Olson & JOhn David Mann
Key Points:
1 – Start with education
2 – go meet people doing what you want to do
3 – giving back
A Lesson Learned: One mistake Kevin has made in his career is paying too much attention to appreciation
From Kevin’s website:
“I have been an entrepreneur all my life.
It almost seems too idyllic to admit, but it all began with a paper route when I was 12. Once I’d gotten a good taste of making money for myself, I moved on to a far more profitable endeavor: buying, selling, and installing automobile electronics out of my parents’ garage at the age of 14. Thankfully, my parents have always been blissfully supportive of my enthusiasm, even when the most well-laid plans went astray.
I briefly tended bar, filling my requisite “food service” quotient for kids my age (and, incidentally, teaching me how not to treat bartenders), then jumped right into real estate investing by the age of 20. I completed a degree in business at a small community college in PA, but eventually decided to focus all of my energy on real estate. This turned out to be a good move, because for more than thirteen years I have been investing and consulting with tremendous results, having personally completed in excess of $40 million in real estate transactions. Currently I’m a candidate for CCIM, the highest commercial real estate designation around.
However, even that success can’t fully quench my thirst for the thrill of new business. I’ve owned a successful mortgage company, and have started a number of other successful businesses, including an events company that hosts running events in 8 different states, a printing company, marketing consulting…the list really goes on and on. I have new ideas all the time, and it’s a shame not to act on a good idea.
On March 20th of 2010, I married the love of my life, Joanna, and we live happily together with our amazing son, Jackson, and our two amazing dogs: an English Pointer named Rascal, and Blue, our German Short-haired Pointer. Through all of my ventures, I try to stay as physically fit and mentally active as possible. I’ve run several half and full marathons and I enjoy competing in triathlons...
PLP-010
Find out where Keith with be speaking and recording for the Private Lender Podcast!
NEW SPONSOR!!
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713 Houston Area Real Estate Networking with Landon Rothstein and Ray Sasser! Wednesday, Mar 14, 2018, [6:00] PM
Holiday Inn Express & Suites Houston North Intercontinental125 Airtex Dr Houston, tx
34 Real Estate Investors Went
On Wednesday March 14th, we will have a WHOLESALER PANEL! Join us with some of Houston’s top wholesalers. If you’re interested in being a wholesaler, come with your questions. Even if you’re not interested in wholesaling, you still need to learn how to market for properties and wholesaling’s engine is all about marketing and systems. If you have a …
https://www.meetup.com/713-Houston-Area-Real-Estate-Investor-Network/events/248251169/ (Check out this Meetup →)
APRIL 7th, 2018 and NEW SPONSOR!!
https://richclub.org/product/general-meeting-april-2018/ (April- Main Meeting and Trade Show)
August 25th & 26th
https://www.questira.com/events/quest-note-expo-dallas-tx/ (Quest EXPO – Dallas, TX)
PLP-009 Phillip Carranza http://privatelenderpodcast.com/wp-content/uploads/2018/02/Photo.png () Listen to the founder of Refuge Real Estate discuss their strategies for utilizing private lenders’ money to transform neighborhoods.
From the Refuge Real Estate website: IT IS THE AIM OF REFUGE REAL ESTATE TO PROVIDE OUR INVESTORS WITH THE BEST POSSIBLE RETURN ON THEIR INVESTMENT WHILE SIMULTANEOUSLY AIDING IN THE REVITALIZATION OF COMMUNITIES IN WHICH WE INVEST. PHONE 281.888.3212
PLP-008
A quick discussion on liens: position and importance
Show Notes will be posted as soon as practicle
PLP-007 Nate Hare: Lending from a Self-Directed IRA
http://privatelenderpodcast.com/wp-content/uploads/2018/02/bio-nate-f-hare.png ()
WHAT YOU’LL LEARN IN EPISODE 007
Advantages of lending out of a self-directed IRA
The types of self-directed accounts
-Traditional IRA
-ROTH IRA
-Health Savings Account (HSA)
-Coverdell Education Savings Account (ESA), and MORE
The many ways you can structure a promissory note
Don’t miss out on Quest IRA’s SPECIAL OFFER:
Open as many accounts as you’d like for the price of one! For only $100 you can open accounts for you, your spouse, children, etc!
Just enter the promo/coupon code “LOVEQUEST” to receive this special offer.
http://www.questira.com (www.questira.com)
http://privatelenderpodcast.com/wp-content/uploads/2018/02/quest_ira-logo-1.png ()
PLP-006 Mitch Stephen – The Art of Owner Financing
WHAT YOU’LL LEARN IN EPISODE 006
OFV = Owner Finance Value
How Mitch went
from losing money on rentals and turned it all around with the Owner Finance model and has executed more than 1,500 Owner Finance deals
The Core Belief behind the Owner Finance model
How you don’t need to repair anything or spend any money on a rehab
The typical type of private lender whose funds Mitch utilizes and the buyer’s traits that can cost you money
Mitch’s Blog Post: http://1000houses.com/real-estate-market/terms-payment/ (Why I borrow at the Terms I Do)
Mitch’s Podcast: http://reinvestorsummit.com/podcasts/ (reinvestorsummit.com)
Books by Mitch Stephen:
http://amzn.to/2Bs2MER (My Life & 1,000 Houses: Failing Forward to Financial Freedom)
http://amzn.to/2E9egQI (My Life & 1,000 Houses: 200+ Ways to Find Bargain Properties)
http://amzn.to/2Filily (My Life & 1,000 Houses: The Art of Owner Financing)
http://amzn.to/2Fkqo0O (Nothing Down by Robert G. Allen) = The book that started Mitch’s Real Estate investing
Mitch is currently reading: https://www.amazon.com/gp/product/0451205367/ref=as_li_tl?ie=UTF8&tag=privatelender-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=0451205367&linkId=60b4e9ec45a2f19864a573a09611a7c2 (The Richest Man in Babylon by George S. Classon)
Mitch’s websites:
http://1000houses.com/ (1000houses.com)
http://reinvestorsummit.com/ (reinvestorsummit.com)
http://privatelenderpodcast.com/wp-content/uploads/2018/01/Funk-Foto.jpg ()
WHAT YOU’LL LEARN ON EPISODE 004:
How you can lose money and the ways to prevent that from happening
LTV = Loan to Value, the amount of the loan compared to the value of the property
ARV = After Repaired Value – the perceived sales price (based on recent comparable sales {comps}) for a reconditioned property
Listen and learn what Chris includes in his credibility book that he shows to prospective lenders and sellers of distressed properties.
I made my first commercial property loan to Chris on a deal he found in Texas City. Chris used my money for the acquisition of a distressed corner property (from an out of state owner) that was previously a Mexican restaurant and a convenience store. There were two small units in the back that were occupied by a barber whose rent just covered the mortgage payment, insurance and taxes (PITI). Chris refinanced the property to cash me out after 6 months and wrapped his commercial bank loan (bank approved) when he sold the property via owner financing to the end buyer. The end buyer recently defaulted on Chris’ note and he foreclosed on the property, taking it back with a ton of equity: a $60,000 loan on a property that appraised for $305,000!!!
And much more. . . .
WHAT http://privatelenderpodcast.com/wp-content/uploads/2018/01/Funk-Foto.jpg ()YOU’LL LEARN ON EPISODE 003:
How to evaluate property condition and “as is” value
How to analyze and fine tune comparable sales (comps)
How to find comps without MLS access
The biggest value mistake both lenders and borrowers are making in the current market
How flexibility and being easy to deal with can benefit the lender
Sage advice from one of the Houston area’s heavy hitting real estate investors
And so much more!!
Who is Chris Funk?
Contact: Facebook.com/funkmadelic
Chris Funk is a 36 year old real estate investor from Houston, TX. He dropped out of college at the age of 23 and began working hands on in the construction industry renovating homes for clients who were investors and landlords to learn the renovation business from the inside out with the ultimate goal of owning enough real estate that he could quit his job for good.
Chris had the dream of becoming a landlord and set out to learn wholesaling as a strategy to find good deals he could eventually hold as rentals. Chris networked at the local real estate clubs and made friends with some of the top local area wholesalers but was for the most part self-taught.
In 2010 Chris Joined the Houston Apartment Association (HAA) and earned the Certified Apartment Manager, Certified Apartment Portfolio Supervisor, and Independent Rental Owner Professional (CAM, CAPS, & IROP) Designations. Having the goal of owning a rental real estate portfolio Chris wanted to know as much about operating investment properties at his employee’s that he would eventually hire.
With a solid foundation laid, learning to renovate homes from the ground up, taking classes at HAA and finding below market deals as a wholesaler, Chris made contacts with several seasoned investors who owned rental properties and formed partnerships to take down the deals he was finding and keep them in house with his partners rather than wholesaling them to outside investors. Chris had the great deals and the renovation experience, and the partners had the money and the credit.
Fast forward, 6 years later, Chris owned 92 rental units at the age of 29 he officially was “retired” with enough rental income to live comfortably. He has done wholesale, owner finance, rehab flips, single family rentals and apartment complexes. He currently owns 115 units consisting of 2 apartment complexes, 2 four-plexes, 1 six-plex, and 9 single family rent houses and several owner financed notes.
Chris still operates a full time property management business and a full time wholesaling business with 3 full time employees and 1 part time employee. The majority of the properties he puts under contract now are acquired with private money or bank lines and then sold with owner financing or held as rentals.
Chris has been honored as a guest speaker at MyHouseDeals.com, Lifestyles Unlimited, Rich Club, Wealth Club, various podcasts, and several live radio shows over the years. Chris currently teaches real estate investing at Su-Casa University.
This episode is geared towards beginners, so you advanced listeners may want to skip this episode. However, if you are new to the concept of Private Lending, then give this a listen as it answers many common questions I receive when I explain to people that I am a Private Lender.
i wish yo happy, safe and secure lending!
Enjoy!
-k
http://privatelenderpodcast.com/wp-content/uploads/2017/12/Steven.jpg (Steven Kaufman - Finance Enthusiast)
WHAT YOU'LL LEARN ON EPISODE 001:
CIAE = Credit Income Assets Equity
LTV = Loan to value
Steven’s prediction for the start of the next correction or recession and how his lending criteria will change
Companies that are not making money are trading as if they do
The Ben Franklin Close
[35:25] -80/20 Principle - 10% marketing, 10% underwriting
[36:00] – Use fear as a guide not a roadblock
“can I go get the resources I need to be successful in this?”
Episode 000 – Introduction
Learn about what you can expect from the Private Lender Podcast. This is by far the greatest experiment I’ve ever attempted and I appreciate you coming this far with me on the journey.
DISCLAIMER: I am not an attorney nor a CPA. If I am fortunate enough to inspire you to take action, please perform your own due diligence and consult your own attorney, account and other member of your business team before executing any actions.
Now that you’ve bought your ticket, it is time to take the ride!