Tim Herriage
speaker
155 appearances
2 recordings
2 series
first heard Dec 2024
last heard Apr 2025
Tim Herriage’s voice in public audio — every appearance, attributed to the second.
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No way most lenders could close a DSCR by March 31st.
No way. We could. How? because we would be really transparent with you up front. We'd say, listen, we can do it. I need all of your bank statements today. I need your insurance today. I need you to pay for the appraisal today, and you need to make a call and follow up with the appraiser tomorrow and make sure the report is done tomorrow. Tomorrow's a Friday.
Then I'd have it in by Monday, and I'd have a full seven days. Once I have the appraisal, the credit report, the lease, the bank statements, I can get you into underwriting. Underwriting can clear in 48 hours. It can be done. The problem is most of our customers, we are unorganized and slow because we like to bitch about the lenders, not bitch about ourselves. I talked about this yesterday.
And I'm saying we, because I'm one of them, right? I mean, I bitch about lenders too. That's right. So, yeah, I mean, we are radically obsessed with changing the way business is done. And eventually we'll have our own DSCR product. Yeah. I mean, I see a world where we can do a DSCR product without credit. Have we done a DSCR through you yet?
But the point is, it's not ideal, but we close them in two weeks all the time.
Man, I appreciate you having me.
Wake Up to Wealth · Unveiling Real Estate Investment Strategies with Tim Herriage · 18 Dec 2024
podcast
Yeah, man, that actually came up yesterday in a conversation with some of our buddies. It's just I think it's an all business. I mean, especially the fund manager business, which you and I both do a lot of. I mean, I think people just don't understand that you cannot undo what you do and you only get one shot at this thing because you can't buy a new one and you can't get rid of the one you have.
Yeah, you know, 20 something years ago, I got out of the Marine Corps, took a job as a project manager for a house flipper in Dallas. And within a year, I was in the acquisitions role. A year after that, I went out on my own. bought a home investors franchise. Well, actually, to be fair, married my wife who had a franchise. She was wholesaling houses to me at the time.
And, you know, we grew that to be number one in the nation, took all our licks in 08 and 09, miraculously stayed married through all that struggle, came out of that, kept buying houses, started a little thing called the REI Expo, sold that to Think Realty. I met Blackstone at a conference, started a B2R finance, which became Finance of America, which we IPO'd in 2021.
Kept buying houses, investing in multifamily, investing in commercial. Really liked the lending world. Executive director for RCN Capital, one of the top three lenders in the nation. I'm actually still on their board. They are more focused on broker business and correspondent lender business. I love retail. I love working with our people.
So earlier this year, I left my full time role there and started up Ternus and just trying to be the people's lender. You know, that's a little wrestling thing for you. I know. I know. I know you get it right.
Well, I mean, the right time is always yesterday. The next best time is today. And if you can't do it that you need to do it tomorrow. Uh, That's not true on when to sell a property, but it's definitely true on when to buy a property.
That's right.
2003, actually, my first partner in the business was a hard money lender in Dallas. And we started a little wholesale operation back then. And we came up with a way to offer the wholesale inventory on terms. And back then, hard money was 18 and 2, right? It wasn't cheap like it is now.
And so we would buy a house and say sell it for $100,000, but instead of selling it for $100,000, we'd sell it for $10,000 down, 18% interest, and 2% origination. And I've always loved math. I'm not a college-educated guy, but... the math quickly showed you that you would double your profit just by offering the financing as well. And my partner, Scott, it was also a big owner finance guy.
He had about 500 owner finance notes and he started just showing me the power of debt and owning debt and originating debt and And I've always loved it. And it's always been a part of my business. By the time I was 30, we owned over 100 owner finance mortgages in Dallas.
And I don't talk about that a lot, but getting creative and understanding how to make money with money versus make money with your time was just something that was always really appealing to me.
Yeah. So like to use a big fancy wall street world word, it's really arbitrage. So what you do is say you buy the house for $200,000 and you get a loan from your bank for 160, and then you go sell that house for 300,000. Well, instead of just taking the cash, what we, what Scott showed me how to do was put the 200,000 on a 15 year amortization and
And if we charge 12% on a 30-year amortization, it covered that payment. And you own your asset free and clear in 10 years, and they still owed you 20 years worth of a mortgage because you're not only using the interest rate as a tool, but the amortization.
You know, I'm the mortgage company, in essence, for a little over 150 people right now on the owner-occupied side, where I own the mortgage on their house, where they're paying me 10% to 12%, and I have bank loans against it for 6%. So I'm making not only the difference in the interest, but the difference in the principal and the way the amortizations work.
Showing 101–120 of 155 · page 6 of 8
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