Foreign.

You're listening to the Master Passive Income Podcast Network.

Welcome to the Master Passive Income Show.

My name is Dustin Heiner, and I'm here to help you afford anything that you want in life.

Create generational wealth by investing in real estate so you can have financial freedom.

And in today's show, I'm super pumped to be sharing with you that if you have been investing in real estate and you are having trouble with with financing or getting money to buy properties, I kid you not that money is not the problem.

And my expert today is going to share with us why it's not the problem and how you can get past these money issues so you can get investing in real estate and create financial freedom.

All right, let's start the show.

Welcome to the Master Passive Income Podcast where we talk about investing in real estate with a special focus on making enough money so you can quit your job and live the dream life.

And now, here is your host, Dustin Heiner.

What's up?

What's up?

Super blessed as always to have you here with me on the show.

Now, there's something I got to tell you and I'm so excited about it, but at the same time, a little bummed about this at the same time.

So I've been holding off saying this, but I got to tell you that the Real Estate Wealth Builders Conference has been amazing.

This is our fourth year doing it.

But here's where I'm bummed, but excited about the future, too.

This is literally the last year we're going to be doing the Real Estate Wealth Builders Conference.

It's going to be coming in like less than 30 days.

So if you haven't got your tickets, you need to be here.

This is the last one.

All the amazingness that you get out of being around expert investors, being around other investors who are doing this and getting coaching all at the same time for three days and getting you pumped up.

To be successful in real estate investing, you need to be at the Real Estate Wealth Builders Conference.

And on top of that, this is the absolute last rubcon that we are doing.

Now, there are a few different reasons why I'm stopping the Real Estate Wealth Builders Conference, but you gotta come in order to hear the reasons why, because there's so many great things coming that I have to stop this in order to do other amazing things.

And at roopcon, I'm going to unveil all the amazing things that Master Passive Income and why the Real Estate Wealth Business Conference is stopping and why we're actually moving forward into other things.

That are going to make you even better success and more success in your real estate investing.

And even though we've been doing this for the last four years, calling it quits is a little bittersweet because I absolutely love connecting you with other real estate investors.

I also love that my vision to or it's actually more of a mission in Life to help 1 million people and hopefully you are one of these 1 million people to successfully invest in real estate.

It's a little bittersweet because when I walk down the halls of the Real Estate Walter Business Conference, seeing people connect, seeing people partner, seeing people find companies that they need to work with, or basically helping them in every aspect of their investing, it's a little sad that we're going to have to stop this.

But the great things that are coming, it's because of I see a way to help you to become even more successful in your real estate investing.

So you need to be at the Real Estate Wealth Builders conference.

I kid you not.

This is going to be amazing.

I'm changing everything up.

If you've come in the past, we are literally changing everything up.

It's going to be so much more exciting and so much more amazingness.

If that's the best word, I'm going to use that word, more amazingness.

For you to become a successful real estate investor, you need to be here at this last one.

Go to rubecon.com link will be in description r e w b c-o n.com and you can use a promo code MPIPodcast and I will give you 20% off of your pass.

I really just want to see you successfully invest in real estate.

But the real estate wealth of this conference is your like literally amazing hurdle, or let's say catapult in the right direction because you're going to find so many people that you can work with, you could partner with, you can invest with or people investing your deals.

I've curated so many amazing investors.

So you need to be here with us now.

Another thing that I am seeing in the real estate investing market now, right now, literally as I'm recording this, the real estate as well as the economy, actually more so the stock market is starting to have some cracks or some signs.

In fact, bitcoin is down to like 70,000 now where people were calling to be, you know, it's going to go above a million or it was like 110,000.

Now it's down to 70,000.

But we also see some cracks in the economy or at least the stock market Now I know at least I have been feeling there has been.

Inflation has just been really hurting.

Everybody been hurting me too, don't get me wrong.

Even though I got plenty of money, I'm very blessed.

I don't have to worry about money anymore.

But still inflation has not been fun because over year after year, you know, if you're getting 8, 10% over three years, that's 30% increase at least.

So that's what I'm seeing is people are starting to hurt in the economy, which sadly I've seen a lot of people starting to lose their homes or at least they're starting to go into foreclosure, which in 2006, I'm not saying this is the crash all over again.

2008, not saying that.

But what I'm saying is back in 2006 when I first started investing, I started buying properties.

And then in 2008 I was really concerned about, oh my goodness, people, real estate investors are going bankrupt.

Am I going to go bankrupt?

Like I was really concerned about possibly going bankrupt.

But you know, the great thing is about investing for cash flow.

Remember I always tell you, stop being an investor, become a business owner that owns inventory.

Your inventory is your real estate, your properties.

Well, if you do it right, like I'm telling you, this is what I did in 2008 because I was investing solely for cash flow.

I made more money because sadly when people were losing their homes in foreclosure, well, they have to live somewhere.

They can't live in the house anymore, so they have to live somewhere.

And I personally, my rents went up because there were more people that needed to rent and there were more properties for me to buy.

And so what I'm seeing right now, just like my apartment complex, I just got under contract 375 units in Chattanooga, Tennessee, getting like 60% of the market value.

It's deals are out there.

I mean, I can't stress this enough.

Hopefully you guys can see my excitedness because I'm Brian Properties.

I just bought three single family homes in January.

I'm getting this 375 unit apartment complex.

We're probably raising about $9 million for this property, but we're getting it 60 cents on the dollar.

If you are not getting these deals or meaning if you're not getting your own deals, it's because you need to build a business.

And that's what we talk about now in today's show.

I'm walking you through with an expert who has the means for you to get finances to buy Your next property.

I kid you not, if you think, oh, Dustin, I don't have enough money, money's not the problem.

In fact, I know of at least 20 different creative financing ways to get money to buy real estate that, that I can walk you through.

In fact, I got plenty of other videos on YouTube as well as podcasts here that if you think money's a problem, it is absolutely not.

My expert today is gonna walk us through how the money's not the problem.

In fact, if you have a good deal, he will literally even look at the deal, make sure you're doing it right, and give you money to buy the property.

I have this fantastic expert who's got so many different ways for you to get financing.

Get a deal, he'll get you the money for it and you'll be successful.

I'm currently using this company as well.

I have Nate Herndon from Loan Bids.

Go to the link in the description.

Come check them out.

We want you to be working with him, but Nate, with Loan Bids is going to share with us as an expert how we don't need to worry about the financing because he's got that covered.

All right, here we go.

Nate, thank you so much for being here with me, man.

Dustin, really good to be with you.

And yeah, already looking forward to Rubecon coming up.

Love it, Love it.

Yeah, so I, when you and I first started chatting, we're like, okay, I gotta look at loans for my properties.

But then I was thinking, man, there's so many great opportunities for us to help investors, you know, because you have lots of things that you can do for financing for, for investors, and you and I are working together on my property.

So I figured it'd be great to have everybody learn about you and loan bids, but at the same time educate us as well.

Now, how did you get into the, the, the lending space and helping investors with their finances?

Yeah, good question.

So, you know, I haven't done this forever, but actually started out in the conventional lending world working for a company here in Missouri called Veterans United Home Loans.

And, you know, so I am.

Yes.

So still actively serving in the Army?

Yeah, so actively serving in the Army National Guard, and so started out as an infantryman, and now I'm a commander of an infantry line company.

And, and our president, my, my friend Greg is also still active in the US Navy Reserve.

So, yeah, we've, we've got some, some military guys here running around the office, and we still do that part time, so we're staying pretty busy with that.

And Then you got into where you're working now with, with Loan Bids.

Is it because of your friendship or how did that work out?

Yeah, yeah, I mean it was truly through a friendship that at the time, you know, I, I worked for five years in medical device sales and that's what brought my family and I to, to Springfield, Missouri.

So Southwest MO is where we are headquartered at Loan Bids and that's where you know, 95% of our team is.

We've got a couple of folks that work remote but everybody else is in the building here and so we get to see each other every day and we love that.

But yeah, through church and friendship is kind of what brought me to the folks that I work for and with every day now.

And they said, you know, why don't you come see what we're doing here.

We feel like we're making a big difference for investors and uh, yeah, turns out it was a great fit.

So that was over three years ago.

That was beginning of 2022 when I jumped into, you know, the private lending side of things and helping out with financing here at Loan Bids.

That's fantastic.

Yeah, I am huge appreciation.

I have a huge appreciation to anybody serving the military, law enforcement.

I never have myself.

The closest I ever got to I was doing it at a sheriff's department in California which is great, great people.

But I appreciate you serving our country and then working with other great people that are doing the same thing.

So really appreciate it man.

Yeah, we love what we do.

Love it.

Okay.

So I Wish back in 2006 when I first started investing, I so wish back then there was something called a DSCR loan.

I wish there was but there wasn't.

Best thing that I was able to do, I refinanced and recycled my money over and over again.

But I did a bundled commercial loan for four properties and it was a five year note and you know it's commercial.

But DSCR or debt service coverage ratio loans are amazing.

I absolutely love it.

In fact you and I were working on two of my properties.

We want to get those refinanced.

But the DSC loan is not just the like end all be all but there are so many other loan options out there.

But the DSCR is just fantastic.

I mean if you get a 30 year fixed that is on the properties, you know that properties performing which is really really great.

But talk to me a little bit about what you know, like not just DSCR but like talk to us about financing and coming from a different perspective.

Like we're investors and so we're coming from an investor point perspective and mindset.

So as somebody who provides and sees all these investors see the different deals, is there anything else out there that you're thinking, okay, I think investors should know this about lending.

Yeah, of course.

I mean, it is such a blessing to actually be a broker in this space because what we get to do is walk through the entire BRRRR process with our clients.

And so exactly what you started out doing in 2006, you know, but, you know, doing it with loan products that weren't built for the BRRRR process is, you know, you learned a lot of lessons, I'm sure, and, and had to learn the hard way, had to get really creative with how you, you know, probably made a square peg try to fit in a round hole.

And, you know, I love the fact that if, you know, a property feels like a square peg for, you know, one loan program, that's okay, we can just shift to the next.

And we do that all the time where, you know, with the dozens of bridge and rehab loan programs that we work with and even more DSCR programs, when, you know, one solution might not work, we just shift our focus to the next one.

And so having that flexibility for our investor clients is, you know, probably the thing that I enjoy the most because I really, really feel like I'm sitting on their side of the table.

We're advocating for the client.

And so to your point, DSCR loans are something that, you know, I'm sure many of your listeners are familiar with and, and have heard of.

They're certainly gaining traction and popularity, you know, across the country.

But, you know, in the same respect, there are so many folks that I talk to every week that haven't had the opportunity to have a DSCR loan put in front of them.

And so I get to.

A lot of times, you know, my initial call with an investor is maybe talking about a deal that's in front of them right now, but also just educating on what we're going to need of them through this loan process.

And, you know, it, it just, it brings me happiness letting them know that I don't need their personal income, pay stubs, taxes.

We don't need to worry about what their DTI is because like you said, your investor, you know, isn't looking at things in the same way that a bank is going to look at it.

They're looking at a global perspective of their own finances and how their properties are, you know, generating income and how their properties can generally cover down on the debts and all the requirements that those properties are going to have as far as expenses go.

And so yeah, your local banks and those commercial or conventional programs, maybe on a 20 or 25 year AM and a 5 year balloon like you talked about, is going to certainly have a heavier underwrite and they're going to try to take a look at globally what is this person doing with their money?

And the DSCR alone just simply makes things a little bit more basic, you know, a little more simplistic.

One property, one set of, you know, income and expenses for that property only.

And that's exactly how you, you keep the ball rolling and how you keep that brrrr process moving.

So yeah, I think that there's a lot of different loan programs out there, a lot of different things that are really unique.

And whenever a client says I need to only be able to put 10% down or I need to go with a loan program that isn't going to source my assets because I know I'm pulling them from a place that until I pull those funds from my, you know, money market account or this, these gift funds that I'm getting from my partners are going to cause problems for, for most underwriters.

So I need a solution that isn't going to look at the money I have at all to say, okay, well program A is what I usually like to do in this situation, but program B is going to be a better fit for that.

That's the thing that I really like every day.

Every solution is just, you know, a new little puzzle.

And now having been here for, you know, a few years in this space, you know, and getting to know the loan programs really well, it's, you know, it's fun when I know what that solution is right away and it's, it's interesting when you know, even after 450 plus, you know, loans funded for my clients, it's, you know, I still get surprised sometimes by what somebody brings to me and you know, the creative solution that we have to have for that.

And I, I, after coaching thousands of students now what I found that's the best thing for every single student is not a one size fits all but like giving them options.

They need lots of options on how to find properties, how to manage the properties, how to, you know, employ.

Like do we do long term, short term, midterm or co living?

We need options and funding for the properties is another thing that we need lots of options.

Because if one thing doesn't work, like let's say you go to your local bank and you say, hey, I need a loan for this.

And they go through this, a month of underwriting and they get asked all these documentation, which is just, it gets tiring if you have to go through all that stuff.

And then the end they said, well, your loan to value is this and this.

And they give you all these reasons why they can't do it.

Well, we can't give you the loan.

I'm like, oh my goodness.

I went through all that work with you and this is the only product that you have, meaning the only type of loan.

But what I loved about loan bids was like, you guys have other options.

So talk me through options that we can have as real estate investors instead of just saying you have one product and this is all you get, but you guys have other options.

Yeah, absolutely.

Oh man.

So I think maybe giving some examples of some of the different types of products that are out there and some of the things that I see pretty routinely, we can start on just the, the rehab and bridge side of things.

So I have, there's different loan programs that can finance, you know, 90% of a purchase price and 100% of your rehab budget even for a first time investor.

But it needs to be a good fit for that program, you know, meeting their minimum loan amounts.

Some programs even have algorithms that when you plug that address in, it'll tell you exactly what your available leverage will be for that property by the specific address.

And so, you know, one example that I have for, for that particular scenario is I was dealing with two duplexes on either side of a major four lane road in Oklahoma.

One property was eligible for 90% of purchase, 100% of rehab, up to 75% of the ARV.

That's what everybody wants, you know, to be able to really highly leverage a property on the front end and only put 10% down on the other side of that four lane road.

Same borrower, very similar duplex.

They were eligible for 85 and 185% of purchase and 100% of rehab, but only up to 65% of ARV.

And that was purely based on the statistics that that particular, you know, lender's algorithm was willing to offer them based on, you know, what it was pulling as far as data.

So, so a data driven company like that could be really good for some properties.

But if that borrower only knows that hard money or that bridge lender, then, and they don't have a whole other stable of lenders that they could go to, they're going to have to start playing their own broker and going around and asking very specific questions about guidelines and saying, you know, hey, can you get me 10% down on this property?

Because my usual guys just for whatever reason can.

And so then to be able to pivot that potentially to another lender, there's different implications that are going to pop up.

Like, you know, like I said, program A, who they might always go to, will only charge them interest on drawn funds.

Program B may have, you know, interest on the full note or something like that.

But those are different things that we need to reconcile where it's like if this is the down payment you're looking for, then there might be some concessions that we make.

Another program on the bridge side that helps our BRRRR investors is one that actually finances 100% LTC.

And then you make a down payment deposit to the lender and that lender will hold that deposit until you refinance out of their product.

And what that allows you to do is stay more highly leveraged.

So that way when you go to refi most DSCR loans and you, I'm sure you know this Dustin, are going to cap you at a 75% LTV for your cash out so you can leave less cash in the deal by getting an 80% rate and term refi.

And, and that's what those, that's what this particular program does, is it, it leverages you more highly, allows you to get an 80% loan and then the lender actually pays you back after they get paid off by that 30 year fixed loan.

I've never heard of that.

That's fantastic.

It's very unique and it's specifically built for a BRRRR investor.

It doesn't do anything for you necessarily as a, you know, as a flipper, but as a BRRRR investor who wants to leave only 20 equity in a house instead of 25, that is what allows you to do that.

So I think those are some good examples potentially of the flexibility and the different programs that are out there on the, on the rehab side of things.

One thing that I see pop up a lot on the DSCR side and something that, you know, I know your goal for your properties is to, you know, pull equity back out of them as quickly as possible.

And so we've talked a lot about seasoning and so for the best interest rates possible, we're going to need to wait until somebody's owned a property for 90 days.

And if, you know, interest rate is most important, then great, we're going to go ahead and get that refinance started about 30 days out from you reaching your seasoning period.

We're going to close on day 91, but I have a number of clients, one in particular in Mississippi who, you know, with six properties that are being refinanced currently that he had them rehabbed and rented all within 30 days.

And so waiting an additional month to a month and a half to keep the ball rolling and just sitting on those properties without being able to pull equity back out was going to be a big deal.

And so we went with a no seasoning product that actually allows for an 80% cash out in Mississippi.

So he kind of got the, you know, a double benefit there of not only being able to pull more equity out, but didn't have to worry about seasoning.

So kind of what it all boils down to and what my initial calls with somebody, especially about a specific property is going to come down to is.

And I want to pause for just a quick second and say thank you so much for listening to the show.

If you've gotten anything out of the show, I would appreciate it if you went to anywhere that you listen to, say Apple or Spotify or wherever and leave a five star review.

Honestly, I really appreciate you leaving an honest review.

I just love giving all this information out and I want to see you succeed.

Also send this to one person, just tell one person, say, hey, Dustin wants to help a million people to invest in real estate.

You need to listen to this because it's going to change your life.

Lastly, get my real estate investment course completely for free.

Text the word Rental R E N T A l rental to 33777 rental to 33777.

I'll literally give you my course showing you everything in the business so that you can become financially independent.

Figuring out, you know, what the investor's goals are and then that allows me to hone in on the loan program that is going to be the best fit.

And you know, our CEO Damon, he is incredible man and we love what he's built here.

He has, he has a fun saying that just says, you know, we did our homework for you or we did your homework for you.

Right.

So we've done the homework on the lenders and you know, now we just get to, you know, share our work with you whenever, you know, you bring that next property our way.

Yeah.

And I love that you guys have all like lots and lots of different options.

So talk to me about a scenario that was probably a difficult property to get financing but you had to shop around and like how does that play out like.

Well, I guess following up with that, is there any type of loans that you're like, oh, no, this, we just, out of all the options, we couldn't get this one done.

Sure, man.

It's a really good question.

And I don't know that I have a great example sometimes of ones that fall through the cracks.

Except for, you know, a value comes in low or your DSCR isn't, isn't working out, you know, we only have to go to a 1.0 ratio sometimes those higher cost areas like Florida and California do make it tougher to cash flow.

But that's when I suggest, you know, potentially pivoting to a short term rental model.

And I've got a program that utilizes even if you don't have your, you know, a full year of income history showing that property has a short term rental, they'll use, you know, 80% of short term market rents from airdna.com.

Wow.

And so even if it's not, not.

Actually produced by the property, but you look at what other properties have done through air DNA, if you don't know what the air DNA is, it helps you to understand what you might be able to do if you put a property on Airbnb and how it might rent out and all that sort of stuff.

So you look at what other properties have done even if this property has not been a short term property.

Yeah.

Wow, that's awesome.

Yeah.

So, I mean, I think typically whenever a property falls through, there's, so there's such a specific ask from the investor that pivoting programs just isn't going to, you know, potentially satisfy that.

But to your point about a difficult property, it's actually a 30 plus property portfolio in Toledo that I actually am, you know, working currently and we should be closing those this month.

The, the interesting thing about it was that the investor stated that they had bought properties, they were taking them through the BRRR method and they were ready to refinance them and take cash out.

They had bought a larger portfolio, of which about half they had already flipped and sold off and then the other half they were looking to hold on to.

And so, you know, nothing there about what they said, you know, set off any sort of alarm bells for me.

Everything they stated was, you know, seemed to be pretty straight down the middle after we ordered appraisals, which, you know, appraisals on 30 to 40 properties can, you know, is a, you know, a heavy lift.

And, you know, when you're spending $20,000 plus on appraisals it's no small thing.

And you want to make sure that, you know, it's, we've got the right program fit.

What was discovered after about half those appraisals were conducted was that this has actually been a land contract purchase.

And so title was not held in our borrower's name.

And the majority of lenders, I'm going to say 98% are going to say you have to move title into your name.

I can't refinance a property for you that you don't hold the deed on.

But we have a lending partner who did some digging with their own capital partners that they knew that this loan would be going to and they found a capital partner that said, show us that you have this mortgage that you've taken over for this portfolio.

Show us that you've been making those payments.

Show us that, you know some invoices that you've been making improvements to these properties.

And show us some settlement statements from properties that you've sold that were from this original portfolio purchase.

And we'll consider that as good as ownership.

And so we are, you know, refinancing a portfolio for someone that, you know, ultimately they've held, held it for over six months.

It's well seasoned from their original purchase.

But it's, it's an odd thing to be able to refinance a property for somebody that, you know, they don't hold title to yet.

So my team is probably going to give me a hard time about advertising that one in particular.

But it is, I mean, it's, it's not something that we would ask to, you know, have brought our way, you know, every day.

But if the stars align and you know, we can document things appropriately, then I think that's just another really good example of saying we looked within our network, we looked at the cards that we were dealt and you know, we found a really good solution for what could have been a really tough situation.

Well, I mean, try taking that to Chase bank or bank of America.

They'll laugh you out.

No, no way.

Yeah, they wouldn't even bundle them all together, let alone do all that work to, or not work.

But like take no deed.

No, it has to be in your, your name, personal name.

There's so many different hoops you got to jump through.

But they only have one program, you know, one program for lending.

Now talk to me about, so do you guys do anything with hard money like, you know, short term loans and all that sort of stuff?

Is that something as well that you guys Do?

Yeah, those are those bridge and rehab loans that I was talking about.

So I don't call it hard money as much simply because it's, they're national private lenders that all that we're working with.

So it's not your local hard money guy who you know, is lending money from his, you know, retirement account or something like that and certainly understand that, you know, many folks have the opportunity to get what I call a sweetheart deal, you know, locally where that guy may only be charging 8% whereas the majority of your, you know, private money loans that are 12 months interest only are going to, you know, be in the 10 to 12% range.

And so, you know, that's okay though, so long as, you know it's a good fit for your acquisition and we reconcile the fact that it's not a long term solution.

So that's for, you know, those who are flipping or who are starting the BRRRR method.

And, and we walk through the whole BRRRR method with a lot of our clients where we help with the acquisition and rehab through those, you know, hard money loan options and then immediately refinance them on a 90 day seasoning or, or even a no seasoning option.

But I love it too because if you did get the hard money loan, I tell all my students, if you're going to go with hard money, it's also really, really good option.

But what you need to do is make sure that you can get out of that hard money.

Because you don't want to get into hard money meaning short term loan that's going to, after 12 months, the rate jacks about 24 or whatever.

It's going to be what's going to eat you alive.

And so you need to be able to get out of it before you even get into it.

And you guys have those types of programs.

I know you guys are already planning that out for them, which is, which is really, really beneficial.

Now with an I with the idea of like doing a BRRRR method, you know, brrrr basically meaning you buy it with cash refinance and pull the cash back out.

That, that's like DSCR is great.

I love the seasoning period that you guys have, which is 90 days.

A lot of companies, six months, like you have to have it for six months, but 90 days, that's not that long.

Especially if you're rehabbing it, getting it rented, hopefully within the second month you should have it rented and then you'd be able to refinance it and pull the cash back out and if you do it right, like I tell all my students and people listen to the audience and everything, we build the business, we don't.

We actually want to stop being an investor.

An investor says my property is my business.

You need to stop being an investor.

You need to be a business owner.

And when we're a business owner, we look at our properties as inventory in our business.

So we have a business that runs itself.

That's why I love having options from, like I said, managing properties, how to rent out the properties, how to, how to get financing for properties.

And when you have a business that you know, you can go out once you cash out or you do a refinance, pull the cash out, you know, you can buy a property pretty quickly because you already have the people in your network that you're already working with, let's say either turnkey company or you have some wholesalers or other investors that you're buying properties from.

But getting that turnover to get that property, sorry, get that money back from that one property so you can get in, buy in the next property.

So with, with, so you have the, you know, fix and flips type type of loans, you also have the 30 year type fixed loans.

Is there anything that you guys don't do, like, is there anything that I wouldn't even know, understand, ask the question of what you guys don't?

Sure.

Sometimes I get asked the question about whether or not we offer a shorter amortization.

You know, some folks are really intent on paying that loan off early.

We don't have shorter AMS.

So 15, 20, 25 year AM.

And the reason being is those, you know, DSCR loans are going to cash flow best with that, you know, coverage ratio on a 30 year fixed.

My solution for something like that is the majority of lenders that all have prepayment penalties, which, you know, for any listeners that don't know all DSCR loans are going to come standard, at least your best interest rate is going to have a five year prepayment penalty and then you have some options to drop that down to potentially a three year or you know, one or even nothing.

But there's going to be some points or a higher interest rate that's accompanied with a lower prepay.

But for my clients who are interested in making extra payments, I just pair them with a program that is pretty unique in that they will allow you to make extra payments towards the principal.

So long as you don't pay off the entire loan, then you don't trigger that prepayment penalty.

And whereas every other program is going to, you know, in those first five years require just 12 monthly payments, no early payments whatsoever.

So that's kind of a unique solution there for somebody who might want a shorter am the additional programs that we offer that we, you know, transact on less just because fewer folks are doing this than, you know, say a traditional turnkey purchase or a BRRR is going to be your ground up construction, which we can finance.

85% of your project cost.

And the thing that I enjoy most about talking about that program is I feel like the benefits just keep coming the more you talk about it.

So that's one where your project cost is calculated as, you know, your lot, purchase price or value, the construction budget and your closing costs are all thrown into that.

And so the cool thing is that they will finance your closing costs and defer all of your interest until you exit the loan.

So that's an 18 month construction loan where you're not making monthly payments, you're just going to make those payments in addition to the mortgage payoff.

Yeah.

Yeah.

Wow.

So when you exit the loan, that's when those payments are, that you've accrued are going to be made.

And that's an interest on drawn funds only as well.

So like you might buy, you might have a $20,000 lot that you bought, but you have a $200,000 rehab budget.

You don't want to be paying interest on that 200k construction budget until you start pulling funds from it.

And that's exactly what that program does as well.

Man, I see.

Again, I love having options because every deal is going to have a little bit of different nuance that you're like, well, I don't have this much down payment or I, I might have this access to this type of capital or whatever it might be.

And so I usually tell all my students back before I started working with you, it's like, man, so just keep calling more and more mortgage brokers until you find one that actually does it.

What?

Instead how about let's just work with loan bids because what they do is they already have all these different options.

Like they've already talked, they've already done the work.

Like you said, you've done the homework for us.

You've already figured out all these different options because I'll give you example of another thing.

So a lot of my students, we buy rather inexpensive homes, let's say $70,000.

We've even bought homes that are like $40,000.

So one that's a mansion.

Yeah.

So one hang up.

Would Be like, minimum loan amounts do what?

What have you seen with minimum loan amounts?

And like, is there like, okay, this is rock bottom, we can't go below this much.

Like we don't have any loan terms or, you know, deals that we can do.

Like, what are your thoughts about minimum loan amounts?

Sure, great question.

So a lot of times on the bridge acquisition or that, you know, that initial purchase for property you're going to rehab, I've got a number of programs that can go down to a 50k minimum loan amount.

So so long as your purchase leverage, let's say we can get you 70% of that purchase just because it's a cheaper purchase plus your rehab budget.

As long as we creep over the 50k mark, then we can do it.

The thing that I'd be on the lookout for there is just ensuring that we get to a minimum property value of 75K.

Kind of like you talked about, thinking about the exit plan for you.

The nice thing about one of my favorite programs and who actually has the best interest rates right now anyways is they have a minimum proper value of 75,000 on the DSCR side.

And so, so long as a property is estimated to, you know, crest that $75,000 mark, I feel really comfortable about that deal.

If somebody says, hey, I've got a $60,000 ARV, it's like, I'm sure that property is going to cash flow like crazy.

I just don't have an exit plan for you.

So I think we might want to think twice about, you know, putting debt on this property on the front end with a, with a burr.

If they're going to flip it, I guess then that's fine.

But when it comes to say, you know, unique solutions to, you know, a lower purchase price, that, that program that I was talking about that would finance 100% LTC, but you're going to make that deposit to the lender.

They have a minimum loan amount of 75k and so a little bit higher than, than what I have available elsewhere.

So I could take someone elsewhere, but I've got a client right now who has a $35,000 purchase and a $40,000 rehab budget.

We're hitting 75K right on the nose with 100% LTC.

And even though on the back end he's making that deposit for his, you know, 15% down, he is still artificially hitting their 75k minimum loan amount and they're cool with it.

I think it's terrific.

And so for you listening to this, I want you to realize what Nate's also been doing through this entire process.

He's also been helping you to understand that he knows what investors are going through.

It's not like a mortgage broker that just literally has one program that one loan that they can offer, and they don't even understand the business of investing.

If you've been listening, you can see that he understands the entire process that investors have to go through.

And that's the thing that I've loved about talking with Nate and work with loan bids is the understanding that we're not just going to get somebody, that we have to tell them every single step of the way.

No, they're actually like, you can just tell Nate knows this stuff.

He's going to be walking you through the entire process of this is this.

These are the options.

But then at the same time, have you looked at this part of your business?

Maybe this.

It might be a better way to run the property.

Like you said, a short term might be even better.

Like, look at this.

Sue's going to help you, coach you through that process.

Not necessarily coach you, but, like, give you some wisdom from working with lots and lots of real estate investors.

That's what I love about loan bids innate, is they work with investors.

And when I honestly, literally, for years, I would tell all my students when they say, well, I called up my one mortgage broker that I found and they couldn't help me.

Like, well, keep calling until you found somebody that.

Because there will be always a company that it's just going to take a lot of time.

In fact, one of my students, they need to get a minimum.

I think it was like $35,000 was the minimum loan amount that they had to get to.

And I said, just keep calling, and it's going to suck, but just, you know, start being crass.

But it's like, it's going to be a lot of work to get to this.

On the 23rd phone call to the 23rd lender, she finally got a company that actually did, and she got the loan.

Everything worked out great.

So.

But at the same time, it's how much better if it would be.

You made one call, say, hey, Nate, this is the deal that I have.

It looks fantastic.

Let's walk through it.

And then you have these options that are going to help somebody and you.

Oh, one of the things.

So if you're listening, I want you to realize that Nate asked the question or mentioned that he tries to figure out what your goals are.

And that's something that I do as a coach.

We want to know what your goals are, what your risk tolerance is.

What do you want to do?

Like, how do you want.

What do you want to get out of these properties?

Because in the end, there are other options.

Because one option might not fit you, another one might fit you.

But if we give you options, my goodness, like, for me, coaching you, all the options to do everything, Nate, working with you, giving you all the options for financing, and then you have a way to make a decision.

You know, you're not reacting.

You're actually proactive.

You have lots of options.

So, Nate, is there anything that we.

That I should have asked, like, oh, man, I wish investors would know this about loan process or anything like that.

Sure, that's a good question.

And I mean, to your point of what you just mentioned about, you know, being able to fall back on, you know, all the investor experiences that we've been able to see play out on all the loans that we've closed and.

And the ones that, you know, got away, the ones that, you know, were not going to be a good fit.

I'm not afraid to let somebody know.

I think maybe we should refine our focus on these types of properties or maybe these certain purchase prices based on your liquidity that you have right now or based on where your credit score, experience and cash is at, at the moment in the down payment that you desire.

This is the purchase price band that we should take a look at.

So, yeah, I mean, I listen, I think that our investors are really smart folks and they do their homework.

And so I just want to, you know, help kind of paint the picture for what the box is that they're trying to fit in and then let them know, hey, how do I.

How do I make my square peg, you know, more round?

If, you know, the solution that I want is a round peg.

So that's.

We do a little bit of coaching and just advising, you know, certainly never going to direct, you know, what anybody does, but we can see what people are looking for.

I can think back on experiences that I have with other investors and say, well, you know, this is what my.

The investors that I've worked with in these scenarios, you know, have done and typically seen as results.

And I think that that gives a, you know, a little bit of confidence as well, just knowing that, like, very rarely is it a situation that, you know, we may not have seen before.

And that's really helpful.

And there's.

We've got, you know, 30 folks here in the office that have had the opportunity to work on thousands of Loans.

And, you know, that experience allows us to.

If it's not one that I've seen individually, there's got to be somebody here that, you know, can.

Can help myself and the investor, you know, get coached up on it a little bit.

I think that if there's something that I wanted everybody to know, maybe that we hadn't chatted about already was just that an initial discovery call is really helpful to, again, let us kind of talk through what those goals of yours look like.

And also for folks to know that you don't have to have a property under contract in order for me to send a loan summary your way.

I absolutely love talking about deals every day.

And, you know, I have gone through 5, 10, 30 different deals with investors before, before we finally, you know, pull the trigger on one.

Wait, wait, wait.

So if they're looking at a property and they.

They don't even have it under contract, they say, hey, Nate, what do you think about this property?

You've looked at those with them 100.

So I've had those investors say, hey, I'm going to check this one out tomorrow.

You know, what would you need from me?

I probably have to be under contract right.

Before we can, like, talk about loan terms.

Like, send me an address, purchase price, give me.

Give me an estimate of what you think the rehab budget is going to be and an arv, and I'll let you know what you know is available for you.

So that way, when they walk into that house, they have a good idea of what the financing looks like already.

And I would say, Dustin, just shoot me a text with, you know, if it was a turnkey property, I'd say purchase price, rent, taxes, and insurance.

And I'll let you know where we'll be at.

Just that way you got a good idea.

Because Chase bank, they would never do that.

You have to have literally the deal in your hands to give to them for them to look at and imagine having another set of eyes that has helped lots of other investors.

I mean, that's just absolutely.

That alone is fantastic.

To be able to run deals through you, that's super cool.

Yeah.

I think that that in and of itself is an education piece that kind of builds the relationship and lets you know what we can do as a lending partner.

You start to find what we call in the military on any sort of firing range, your left and right limits, like, don't fire outside of, you know, these two areas.

Right.

Like, but you're good to go here and, you know, fire away within those left and right.

Limits.

And so the more deals that I assess with an investor, the more that they start to figure out their left and right limits.

They might be self imposed left and right limits, you know, with credit score experience or cash on hand, or they might just be limits that we have as far as financing that's available.

You know, I want 110% of my purchase price financed.

Okay, well, I would love to get that for you.

Unfortunately, all I can do is typically 90 and, you know, then they discovered a new left limit.

Right.

And so being able to discuss those things and, you know, allowing me to get to know them as an investor basically lets them know, here's where you can fire away.

And then they feel super confident going out there into, you know, their market and finding deals that they're pretty sure are going to fit the box that, you know, Dustin and Nate talked about.

This is phenomenal.

So I know you listening.

You're probably your mind spinning on all the different great ways that you can get financing.

And like I said from the very beginning, if you think finances, financing money is the problem in your investing, it's not.

Not.

It's absolutely not.

There's so many ways that we as investors use to get financing.

Nate at loan biz is a fantastic way.

So, Nate, how can people reach out to you if they want, you know, have that discovery call, they want to start working with you?

How can they do that?

Yeah, so I mean, they're welcome to shoot me a text, phone call or an email.

My email is nateonebids with a z.com so loanbids.com or you can just visit our website, loanbids.com and Dustin, if you want to get my contact info plugged into the description here, then that is perfect.

Awesome.

Nate, everybody.

Definitely, like, I'm working with Nate right now in loan bids.

So they're actually coming to rootcon as well to educate more people about all the great ways that they can help investors to successfully invest.

But man, Nate, thank you so much for being on the show.

I really appreciate Neil.

Definitely everything will be in the description.

So hopefully you'll be able to work with them and get your investing done very well and successfully.

Thanks, man.

Yeah, I appreciate it, Dustin.

We'll see you soon.

And that is it for today.

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