Episode Transcript
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Speaker 1 (00:00):
Alright, we are back with another episode of the best
of the best Therese who do youhave here today?
Speaker 3 (00:10):
I have Don Brown and Richard Brunner here with
Funding for Flippers and Iwanted them on the show because
they have a really interestingway of supplying money for
projects.
So we wanted to talk to them alittle bit about what they did,
why they did it.
And, guys, tell us a little bitabout yourself.
Speaker 1 (00:27):
Well, not much to tell.
I'm retired and this is what Ido for fun.
That's really the short versionof it.
We started in 2015 and we'vebeen working on various projects
ever since.
We've done over 300 deals, Iguess, from then until now, and
(00:51):
it's a lot of fun, a great dealof fun to help Flippers grow
their business and, moreimportantly, help a new family
find a new home to move intoinexpensively, to start their
family and to grow their future.
(01:11):
That's really quite rewarding,so we really enjoyed doing that.
Speaker 3 (01:16):
We've used you for several projects.
Speaker 1 (01:19):
Many, many.
Speaker 3 (01:21):
We started all this during COVID and it was a really
great opportunity for usbecause the real estate market
was weird.
We needed something to do.
Speaker 1 (01:31):
We needed something to do.
We were bored.
Speaker 3 (01:34):
So we started fixing houses up and we needed money to
do that, and you guys camethrough in a big way.
Tell us a little bit aboutyourself.
Speaker 2 (01:41):
I started a long long time ago and went through
different businesses and whathave you.
I've worked with the accountantfor 45 years.
I had worked for a truckingcompany as a controller.
Our first loan was that weprovided the funds for the
trucking company to build across-stock terminal.
(02:03):
So we've been lending my wifeand myself for the last 20 years
.
The difference between what wedo and what you'll find with the
hard money guys is we're usingour own funds so we don't have
to answer to anybody, so we canpretty much customize a loan to
accommodate the borrowers.
Speaker 3 (02:23):
Yeah, that's really great because whenever we have
questions, we just pick up thephone while you and whenever you
have questions, just pick upthe phone and call us.
It's a very personalrelationship.
Speaker 1 (02:30):
Very.
Speaker 3 (02:31):
Yeah, which is a little different and very hands
on, and very hands on, which youknow sometimes you could
consider that hands on a littlebit much, but I actually really
appreciate it because it reallyhelps us make good decisions,
especially with our personalitystyle, Like yours is opposite of
mine.
Like I, like I see something, Irun and I go do it and figure
it out.
You're making us stop, as Iknow.
(02:52):
Let's really look at this andis this a great decision for you
to be making for your financialfuture?
So tell me a little bit aboutwhat led you to decide to do
this, like it didn't just happenone day.
So what was the Well, okay.
Speaker 1 (03:05):
So, as I said before I'm retired, I've been self
employed since 1979 and startedand ran a number of businesses.
I'm an engineer by training andsold our last business in 2014.
My then wife and I, after Iretired she was an attorney.
She was returning from herpractice we're looking around to
(03:27):
think what we're going to dofor the rest of our lives,
because we're not just going tosit at home staring at the walls
.
So my wife is always interestedin real estate and so she got a
real estate license and we wentto a dig meeting, figuring
that's where we'll find clients.
What we discovered was the lastthing in the world that the
people at dig needed was anotherreal estate agent, but they
(03:49):
told us that they needed money.
Well, we had some money as wesold our business and that got
us started to do a private loan,and then one led to another,
led to another, and we've beendoing it ever since.
Unfortunately, my wife passedaway in 2018 and I've been
continuing to do this all myyear and ever since.
So it's a great deal of fun tointeract with folks like you and
(04:13):
your colleagues and many othersand, as I said before, we get a
lot of personal benefit,personal enjoyment at us seeing
things happen, and it's awin-win for everybody.
Speaker 3 (04:26):
Yeah, I mean you come and look at the projects you
know, and not just once.
You don't just check it outprior to lending.
You come and look at theprogress and even offer advice,
and I think that might be alittle different as well than
most of the hard money lendersout there.
Speaker 2 (04:38):
They really don't care how long it takes, right,
and that reason we do that isnine times out of 10.
If we tell you we won't lend ona project, it probably means
you're not going to make anymoney, and if you're not going
to make any money, you're notgoing to come back again.
So that's our whole premises.
We're going to make sure thateverybody wins and we'll make it
(05:00):
happen.
Speaker 1 (05:01):
And while that honesty piece is important, yeah
, there are some lenders notmany, but some who are what we
call loaned-owned.
They'll make a loan and theyhope that you fail, or they'll
structure it so that you'll fail.
Speaker 3 (05:15):
Right.
Speaker 1 (05:15):
And then they take over the project or take over
the real estate and make moremoney doing that.
Speaker 3 (05:19):
They get the win at the end of the day.
That's right.
So we've been talking abouthard money, like maybe people
don't understand what that is,so we should talk a little bit
more about what is hard money.
So do you want to give a littledefinition and description of
that?
Speaker 2 (05:31):
Yeah.
So basically, if you're goingto a bank and you've got a home
that you're ready to close onand the bank says, ok, let's go
through the numbers, oh, itdoesn't have a heater in it.
That's a shame for you becausewe don't lend on houses that
don't have heat.
So ultimately, what we'll do iswe can go in and say, ok, this
is what is going to cost you toheat it, this is what's going to
(05:52):
cost you to make the deal makesense, and we will fund it.
And we can do it quickly onlybecause we're using our own
money.
We don't have to get the bankapproval or the board approval
or whoever that's in thatsequence.
Speaker 3 (06:07):
So what does it usually look for to qualify
someone to give them the loans?
So what's that kind of base?
Oh, that's an interestingquestion.
Speaker 1 (06:14):
It's as much personal contact and personal feel as
anything else.
We don't go through theexercise of a credit evaluation
or any of that sort of stuff.
We just look in your eyes.
I know that sounds quaint, butit's true.
I like that, though, and weevaluate projects that you've
done in the past and we look atthe project in front of us and
(06:38):
we evaluate whether it's likeRich said, whether it makes
financial sense or not, and ifit does, we'll do the deal.
Speaker 3 (06:44):
I can attest to that because we met our first meeting
was sitting on a parking in alot over in Norristown at the
State Farm Park at a picnictable, and that's our first
meeting and we were talkingabout what it was we wanted to
accomplish and we went throughthe project.
You asked a little bit about usbackground information.
(07:05):
We knew each other a little bittoo, but we didn't really know
that at the moment, did we?
I mean, yeah, which was reallyinteresting.
So we have a past which isreally cool, but I like the way
that you did that because itgives everybody an opportunity,
especially if they're doing theright things.
Speaker 1 (07:23):
That's right.
Speaker 3 (07:24):
I think that's what sets you guys apart.
Speaker 1 (07:25):
That's right.
Like I said, we don't look atyour credit score because the
project has to stand on its ownand we'll turn down deals
because the project doesn'tstand on its own or in some
cases, we discover that for anew potential borrower that they
may have a record I mean acriminal record.
(07:48):
And while they may have gottenbetter in life.
It's just that's not a riskthat we're willing to take.
So we try not to work withcriminals.
We try not to work withcriminals?
Speaker 3 (07:59):
Yes, we all try.
We all try.
How about?
How are you finding yourinvestors?
Speaker 1 (08:08):
I guess at this point it's word of mouth.
For the most part I don't know.
Yeah, I guess at that point.
I mean prior to COVID we werevery active marketing.
I used to run a monthlyconference.
Pat, rick and Rich used to beon panel sessions together.
So we were very active in thelocal real estate community.
(08:28):
But once COVID hit we stoppedgiving the meetings.
So it's now mostly worth a wordof mouth.
Speaker 3 (08:34):
So how would someone reach out to you if they were
interested in learning a littlebit more?
There's a lot of people workingwith hard money lenders and
they might have had experiencesthat weren't the best and they
might want something that's alittle more personal.
So how would someone get intouch with you?
Speaker 2 (08:49):
Basically, if they were to just reach out to us
individually or collectively, wewould look at what they're
doing.
Have they got any pastexperience flipping homes?
So if you've never, ever, don'teven know what a flip is, that
wouldn't be the first peoplethat we would work with.
We generally want you to haveat least three under your belt
(09:12):
and we would look at thoseproperties, what you purchased
them for, whether you closedwithin a year and made sure that
you made money.
So that's the whole.
The whole premise is that we'renot gonna lend to somebody and
let them fail.
Speaker 3 (09:25):
Right, we're looking for a longer term relationship.
Cause we've been doing this fora couple of years now.
Speaker 1 (09:30):
Actually, that's the key.
We look for what we call serialflippers.
We don't like to do one anddone, but rather three, four,
five deals a year forever.
Speaker 3 (09:42):
And that's a nice little business.
That's a model.
Someone's flipping, you know,five to 10 a year is a nice
little business, that's right.
Yeah, that's what we're tryingto aim for.
Seems like a slow down a littlebit.
Speaker 1 (09:54):
Yeah, but you guys have been enormously successful
up to this point and I don't seeanything changing in the future
.
Well, thanks.
Speaker 3 (09:59):
We're hoping we can find another one.
So if you have a flip out there, you should let us know.
Actually, from our perspective,the stress properties.
Speaker 1 (10:07):
The more distressed the better.
So, whoever's listening to thispodcast, if you know of a
distressed property or knowsomebody that knows about a
distressed property, get intouch with Therese or funding
for flippers and we'll make ithappen.
Speaker 3 (10:20):
Yeah, and sometimes people get in a situation where
their home goes into adistressed situation and they
don't know what to do andinstead of doing anything, they
go into this paralysis mode ofdoing nothing and they just wait
and wait.
The longer they wait, the worseit gets.
So if you're in that situationand you're really not sure which
(10:40):
way to turn, or you're startingto feel like things are getting
difficult and you can't paythat mortgage or you can't
upkeep the house, that's whenit's time to have the
conversation.
Don't wait, it's confidential.
We'll talk to you.
We'll always tell you what yourbest options are, but don't put
yourself in that position whereit's too late and now it's
really hard for anybody to helpyou.
And your next option is forclosure and you're out, and
(11:03):
there's a lot of people, I think, out there that are in that
situation right now.
So it's good if you'relistening, you should definitely
reach out.
I do want to ask you one lastquestion the market.
I know this is like a crazyquestion to ask anybody, because
you'll get 20 different answers, but where do you think the
real estate market's headed,with rates going up and
everything that we're dealingwith?
Speaker 2 (11:24):
Well, we can see the rates going up on a daily basis.
That's the hardest thing.
So a lot of times when you'relooking at the deals that were
done in the last 10 years, whenpeople were getting 3% mortgages
, you always had that easy exitbecause the buyers could get a
loan that they could afford themonthly payment.
Now that 3% could be 7% andthat changes the whole dynamic.
(11:49):
So we want to make sure that ifyou're looking at a project and
you want to go through and seeif it makes sense, we're going
to make sure that that exitstrategy is going to be okay.
We're targeting a $400,000market.
Well, at 7%, you're going tohave a crazy mortgage payment on
the back end, so you're goingto sell less just because of
(12:10):
that mortgage component.
Speaker 3 (12:12):
Do you think the rates are going to keep going up
, or do you think they'll startto steady a little bit?
Speaker 2 (12:16):
Right, I'm old.
So I think our second house,our mortgage rate, went from 11
to 12% while we were driving thesettlement oh my goodness.
So, yeah, there is a historythere, you know?
Granted, I think we paid forour first second house.
It was $40,000.
(12:37):
So, yeah, there's a bigdifference there.
Today we're looking at $400,000.
Right?
Speaker 3 (12:44):
What are your thoughts?
Speaker 1 (12:45):
I mostly agree.
I think right now the amount ofinventory that's available,
especially for distressedproperties, is much lower than
it was a year or two ago, and Ithink that will remain.
I think interest rates will.
If they come down, it'll comedown just a little bit, not a
whole lot, at least the next 12months beyond that.
(13:06):
And then we're coming into theelection and who the hell knows
what's going to happen at thatpoint.
You just have to be diligent inlooking for projects and doing
more marketing maybe than youused to find projects and be
careful, like Rich was saying,be careful about making sure the
(13:28):
numbers work and that you havean exit.
We know several mortgage brokerswho can help on the back end,
so in your case that's neverbeen a problem.
But sometimes the flipper needshelp finding a refinance
situation and we can help withthat as well.
Speaker 3 (13:46):
That's really good.
I think that's the big thing.
You're a resource all the wayaround and you're not just one
transaction and you're gone.
We're looking for arelationship, a longer term, and
that's actually a really smartplay because you get to know the
people you're lending to.
You're not trying to get newpeople all the time, so
hopefully we'll be doingbusiness for a long time
together.
I agree with you guys I feellike the interest rates are
(14:08):
going to.
I feel like they're going tostay kind of steady.
I don't think they're going togo up too too much more and I
think home values are going tohold.
I don't think we're going tosee a dip in home values and if
we do.
It's going to be like a minimal2% because we're right at that
trend line.
Over the last 40 years it'sbeen going up and we're not
above it like we were back in 07and 08 when the whole world
(14:29):
just kind of went what the heckjust happened?
We're kind of right there, so Ifeel like we're safer.
So don't panic out there, it'sfine.
Speaker 1 (14:38):
Slow and steady.
Speaker 3 (14:40):
Right, and the average 40 year interest rate is
7.3%, so we're not really toofar off of that.
So it's not as bad as everybodythinks it is.
So if you have questions, thebest thing to do is ask a
professional Guys.
Thank you so much for beinghere.
I really appreciate it.
Speaker 2 (14:54):
Glad to be here.
Speaker 1 (14:55):
Thank you very much, Theresa Good luck to you, thank
you.
Speaker 3 (14:57):
Thank you.
Speaker 2 (14:58):
Thank you no-transcript.
Alright, we are back with another episode of the best
of the best Therese who do youhave here today?
Speaker 3 (00:10):
I have Don Brown and Richard Brunner here with
Funding for Flippers and Iwanted them on the show because
they have a really interestingway of supplying money for
projects.
So we wanted to talk to them alittle bit about what they did,
why they did it.
And, guys, tell us a little bitabout yourself.
Speaker 1 (00:27):
Well, not much to tell.
I'm retired and this is what Ido for fun.
That's really the short versionof it.
We started in 2015 and we'vebeen working on various projects
ever since.
We've done over 300 deals, Iguess, from then until now, and
(00:51):
it's a lot of fun, a great dealof fun to help Flippers grow
their business and, moreimportantly, help a new family
find a new home to move intoinexpensively, to start their
family and to grow their future.
(01:11):
That's really quite rewarding,so we really enjoyed doing that.
Speaker 3 (01:16):
We've used you for several projects.
Speaker 1 (01:19):
Many, many.
Speaker 3 (01:21):
We started all this during COVID and it was a really
great opportunity for usbecause the real estate market
was weird.
We needed something to do.
Speaker 1 (01:31):
We needed something to do.
We were bored.
Speaker 3 (01:34):
So we started fixing houses up and we needed money to
do that, and you guys camethrough in a big way.
Tell us a little bit aboutyourself.
Speaker 2 (01:41):
I started a long long time ago and went through
different businesses and whathave you.
I've worked with the accountantfor 45 years.
I had worked for a truckingcompany as a controller.
Our first loan was that weprovided the funds for the
trucking company to build across-stock terminal.
(02:03):
So we've been lending my wifeand myself for the last 20 years
.
The difference between what wedo and what you'll find with the
hard money guys is we're usingour own funds so we don't have
to answer to anybody, so we canpretty much customize a loan to
accommodate the borrowers.
Speaker 3 (02:23):
Yeah, that's really great because whenever we have
questions, we just pick up thephone while you and whenever you
have questions, just pick upthe phone and call us.
It's a very personalrelationship.
Speaker 1 (02:30):
Very.
Speaker 3 (02:31):
Yeah, which is a little different and very hands
on, and very hands on, which youknow sometimes you could
consider that hands on a littlebit much, but I actually really
appreciate it because it reallyhelps us make good decisions,
especially with our personalitystyle, Like yours is opposite of
mine.
Like I, like I see something, Irun and I go do it and figure
it out.
You're making us stop, as Iknow.
(02:52):
Let's really look at this andis this a great decision for you
to be making for your financialfuture?
So tell me a little bit aboutwhat led you to decide to do
this, like it didn't just happenone day.
So what was the Well, okay.
Speaker 1 (03:05):
So, as I said before I'm retired, I've been self
employed since 1979 and startedand ran a number of businesses.
I'm an engineer by training andsold our last business in 2014.
My then wife and I, after Iretired she was an attorney.
She was returning from herpractice we're looking around to
(03:27):
think what we're going to dofor the rest of our lives,
because we're not just going tosit at home staring at the walls
.
So my wife is always interestedin real estate and so she got a
real estate license and we wentto a dig meeting, figuring
that's where we'll find clients.
What we discovered was the lastthing in the world that the
people at dig needed was anotherreal estate agent, but they
(03:49):
told us that they needed money.
Well, we had some money as wesold our business and that got
us started to do a private loan,and then one led to another,
led to another, and we've beendoing it ever since.
Unfortunately, my wife passedaway in 2018 and I've been
continuing to do this all myyear and ever since.
So it's a great deal of fun tointeract with folks like you and
(04:13):
your colleagues and many othersand, as I said before, we get a
lot of personal benefit,personal enjoyment at us seeing
things happen, and it's awin-win for everybody.
Speaker 3 (04:26):
Yeah, I mean you come and look at the projects you
know, and not just once.
You don't just check it outprior to lending.
You come and look at theprogress and even offer advice,
and I think that might be alittle different as well than
most of the hard money lendersout there.
Speaker 2 (04:38):
They really don't care how long it takes, right,
and that reason we do that isnine times out of 10.
If we tell you we won't lend ona project, it probably means
you're not going to make anymoney, and if you're not going
to make any money, you're notgoing to come back again.
So that's our whole premises.
We're going to make sure thateverybody wins and we'll make it
(05:00):
happen.
Speaker 1 (05:01):
And while that honesty piece is important, yeah
, there are some lenders notmany, but some who are what we
call loaned-owned.
They'll make a loan and theyhope that you fail, or they'll
structure it so that you'll fail.
Speaker 3 (05:15):
Right.
Speaker 1 (05:15):
And then they take over the project or take over
the real estate and make moremoney doing that.
Speaker 3 (05:19):
They get the win at the end of the day.
That's right.
So we've been talking abouthard money, like maybe people
don't understand what that is,so we should talk a little bit
more about what is hard money.
So do you want to give a littledefinition and description of
that?
Speaker 2 (05:31):
Yeah.
So basically, if you're goingto a bank and you've got a home
that you're ready to close onand the bank says, ok, let's go
through the numbers, oh, itdoesn't have a heater in it.
That's a shame for you becausewe don't lend on houses that
don't have heat.
So ultimately, what we'll do iswe can go in and say, ok, this
is what is going to cost you toheat it, this is what's going to
(05:52):
cost you to make the deal makesense, and we will fund it.
And we can do it quickly onlybecause we're using our own
money.
We don't have to get the bankapproval or the board approval
or whoever that's in thatsequence.
Speaker 3 (06:07):
So what does it usually look for to qualify
someone to give them the loans?
So what's that kind of base?
Oh, that's an interestingquestion.
Speaker 1 (06:14):
It's as much personal contact and personal feel as
anything else.
We don't go through theexercise of a credit evaluation
or any of that sort of stuff.
We just look in your eyes.
I know that sounds quaint, butit's true.
I like that, though, and weevaluate projects that you've
done in the past and we look atthe project in front of us and
(06:38):
we evaluate whether it's likeRich said, whether it makes
financial sense or not, and ifit does, we'll do the deal.
Speaker 3 (06:44):
I can attest to that because we met our first meeting
was sitting on a parking in alot over in Norristown at the
State Farm Park at a picnictable, and that's our first
meeting and we were talkingabout what it was we wanted to
accomplish and we went throughthe project.
You asked a little bit about usbackground information.
(07:05):
We knew each other a little bittoo, but we didn't really know
that at the moment, did we?
I mean, yeah, which was reallyinteresting.
So we have a past which isreally cool, but I like the way
that you did that because itgives everybody an opportunity,
especially if they're doing theright things.
Speaker 1 (07:23):
That's right.
Speaker 3 (07:24):
I think that's what sets you guys apart.
Speaker 1 (07:25):
That's right.
Like I said, we don't look atyour credit score because the
project has to stand on its ownand we'll turn down deals
because the project doesn'tstand on its own or in some
cases, we discover that for anew potential borrower that they
may have a record I mean acriminal record.
(07:48):
And while they may have gottenbetter in life.
It's just that's not a riskthat we're willing to take.
So we try not to work withcriminals.
We try not to work withcriminals?
Speaker 3 (07:59):
Yes, we all try.
We all try.
How about?
How are you finding yourinvestors?
Speaker 1 (08:08):
I guess at this point it's word of mouth.
For the most part I don't know.
Yeah, I guess at that point.
I mean prior to COVID we werevery active marketing.
I used to run a monthlyconference.
Pat, rick and Rich used to beon panel sessions together.
So we were very active in thelocal real estate community.
(08:28):
But once COVID hit we stoppedgiving the meetings.
So it's now mostly worth a wordof mouth.
Speaker 3 (08:34):
So how would someone reach out to you if they were
interested in learning a littlebit more?
There's a lot of people workingwith hard money lenders and
they might have had experiencesthat weren't the best and they
might want something that's alittle more personal.
So how would someone get intouch with you?
Speaker 2 (08:49):
Basically, if they were to just reach out to us
individually or collectively, wewould look at what they're
doing.
Have they got any pastexperience flipping homes?
So if you've never, ever, don'teven know what a flip is, that
wouldn't be the first peoplethat we would work with.
We generally want you to haveat least three under your belt
(09:12):
and we would look at thoseproperties, what you purchased
them for, whether you closedwithin a year and made sure that
you made money.
So that's the whole.
The whole premise is that we'renot gonna lend to somebody and
let them fail.
Speaker 3 (09:25):
Right, we're looking for a longer term relationship.
Cause we've been doing this fora couple of years now.
Speaker 1 (09:30):
Actually, that's the key.
We look for what we call serialflippers.
We don't like to do one anddone, but rather three, four,
five deals a year forever.
Speaker 3 (09:42):
And that's a nice little business.
That's a model.
Someone's flipping, you know,five to 10 a year is a nice
little business, that's right.
Yeah, that's what we're tryingto aim for.
Seems like a slow down a littlebit.
Speaker 1 (09:54):
Yeah, but you guys have been enormously successful
up to this point and I don't seeanything changing in the future
.
Well, thanks.
Speaker 3 (09:59):
We're hoping we can find another one.
So if you have a flip out there, you should let us know.
Actually, from our perspective,the stress properties.
Speaker 1 (10:07):
The more distressed the better.
So, whoever's listening to thispodcast, if you know of a
distressed property or knowsomebody that knows about a
distressed property, get intouch with Therese or funding
for flippers and we'll make ithappen.
Speaker 3 (10:20):
Yeah, and sometimes people get in a situation where
their home goes into adistressed situation and they
don't know what to do andinstead of doing anything, they
go into this paralysis mode ofdoing nothing and they just wait
and wait.
The longer they wait, the worseit gets.
So if you're in that situationand you're really not sure which
(10:40):
way to turn, or you're startingto feel like things are getting
difficult and you can't paythat mortgage or you can't
upkeep the house, that's whenit's time to have the
conversation.
Don't wait, it's confidential.
We'll talk to you.
We'll always tell you what yourbest options are, but don't put
yourself in that position whereit's too late and now it's
really hard for anybody to helpyou.
And your next option is forclosure and you're out, and
(11:03):
there's a lot of people, I think, out there that are in that
situation right now.
So it's good if you'relistening, you should definitely
reach out.
I do want to ask you one lastquestion the market.
I know this is like a crazyquestion to ask anybody, because
you'll get 20 different answers, but where do you think the
real estate market's headed,with rates going up and
everything that we're dealingwith?
Speaker 2 (11:24):
Well, we can see the rates going up on a daily basis.
That's the hardest thing.
So a lot of times when you'relooking at the deals that were
done in the last 10 years, whenpeople were getting 3% mortgages
, you always had that easy exitbecause the buyers could get a
loan that they could afford themonthly payment.
Now that 3% could be 7% andthat changes the whole dynamic.
(11:49):
So we want to make sure that ifyou're looking at a project and
you want to go through and seeif it makes sense, we're going
to make sure that that exitstrategy is going to be okay.
We're targeting a $400,000market.
Well, at 7%, you're going tohave a crazy mortgage payment on
the back end, so you're goingto sell less just because of
(12:10):
that mortgage component.
Speaker 3 (12:12):
Do you think the rates are going to keep going up
, or do you think they'll startto steady a little bit?
Speaker 2 (12:16):
Right, I'm old.
So I think our second house,our mortgage rate, went from 11
to 12% while we were driving thesettlement oh my goodness.
So, yeah, there is a historythere, you know?
Granted, I think we paid forour first second house.
It was $40,000.
(12:37):
So, yeah, there's a bigdifference there.
Today we're looking at $400,000.
Right?
Speaker 3 (12:44):
What are your thoughts?
Speaker 1 (12:45):
I mostly agree.
I think right now the amount ofinventory that's available,
especially for distressedproperties, is much lower than
it was a year or two ago, and Ithink that will remain.
I think interest rates will.
If they come down, it'll comedown just a little bit, not a
whole lot, at least the next 12months beyond that.
(13:06):
And then we're coming into theelection and who the hell knows
what's going to happen at thatpoint.
You just have to be diligent inlooking for projects and doing
more marketing maybe than youused to find projects and be
careful, like Rich was saying,be careful about making sure the
(13:28):
numbers work and that you havean exit.
We know several mortgage brokerswho can help on the back end,
so in your case that's neverbeen a problem.
But sometimes the flipper needshelp finding a refinance
situation and we can help withthat as well.
Speaker 3 (13:46):
That's really good.
I think that's the big thing.
You're a resource all the wayaround and you're not just one
transaction and you're gone.
We're looking for arelationship, a longer term, and
that's actually a really smartplay because you get to know the
people you're lending to.
You're not trying to get newpeople all the time, so
hopefully we'll be doingbusiness for a long time
together.
I agree with you guys I feellike the interest rates are
(14:08):
going to.
I feel like they're going tostay kind of steady.
I don't think they're going togo up too too much more and I
think home values are going tohold.
I don't think we're going tosee a dip in home values and if
we do.
It's going to be like a minimal2% because we're right at that
trend line.
Over the last 40 years it'sbeen going up and we're not
above it like we were back in 07and 08 when the whole world
(14:29):
just kind of went what the heckjust happened?
We're kind of right there, so Ifeel like we're safer.
So don't panic out there, it'sfine.
Speaker 1 (14:38):
Slow and steady.
Speaker 3 (14:40):
Right, and the average 40 year interest rate is
7.3%, so we're not really toofar off of that.
So it's not as bad as everybodythinks it is.
So if you have questions, thebest thing to do is ask a
professional Guys.
Thank you so much for beinghere.
I really appreciate it.
Speaker 2 (14:54):
Glad to be here.
Speaker 1 (14:55):
Thank you very much, Theresa Good luck to you, thank
you.
Speaker 3 (14:57):
Thank you.
Speaker 2 (14:58):
Thank you no-transcript.
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