F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage

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What are the key principles behind Ternus?

Tim Herriage 0:00
I get goosebumps as I say this every time because I tell the team, we make millionaires. You know, when I got out of the Marine Corps, I wanted to be a cop. I was going to be a cop, then a state trooper, then a Texas Ranger. I feel like you would have killed that also. I would have, but I would not. be flying around the way i fly around that's right that's no doubt but i mean that's what i wanted to do in in in i found real estate i got in as a project manager then i was an acquisitions guy for a home investors franchise then i partnered up with my partners then i met my wife and then we went out on it together and we have you know the ed mylet book the one and we have changed the course of our family with this business yeah and the fact that we get to help others do it
Tim Herriage 0:46
It makes me so happy. And that's why we will loan to a first-time investor just like they're an experienced investor.
Justin Colby 0:53
The science of flipping family. Fuck the big banks. Decentralized financing. These are mottos that my next guest lives by. This man is a very dear friend of mine, but over 10 years ago, he brought Wall Street to Main Street, and now he's reversing the whole system he helped build and bringing back that money into Main Street. Tim Herridge is here with Ternus. What's up, dude?
Tim Herriage 1:17
Dude, just glad to be here.
Justin Colby 1:19
Yeah, this is going to be fun. So you are, your mottos, I call them like trigger words, but fuck big banking, right? Decentralized finance, decentralizing finance. This is now your new mission, but you're the motherfucker that basically went out and started the whole thing.
Tim Herriage 1:33
Yeah, I'm trying to undo the problem I created.
Justin Colby 1:35
Yeah.
Tim Herriage 1:36
I mean, yeah, I get it. You know, it's part of my lesson in life has been everyone gets their money from somewhere. And during the Great Recession, I was an active flipper and money dried up for investors. So 10 years ago, 11 years ago, I partnered with Blackstone to start a company called B2R Finance. I know them well. Which became Finance of America, which we took public in 2021. And in that 11-year period, now investors don't realize. So in 08, 09, there was no Wall Street money for flippers. Now, almost 95% of the money flippers use comes from Wall Street.
Justin Colby 2:12
Yeah.
Justin Colby 2:22
Yeah.
Tim Herriage 2:23
Dude, it's brutal to use. They deem your credit every other week. They, you know, appraisals take two months. And all of a sudden, you know, now an appraisal is like $900. I don't even know how that works. That's right. But no, I mean, we just, it started off with the concept of if I can, because I buy houses, you know, I've bought a couple thousand. If I can buy a house with pictures and comps. Why can't I make a loan on a house with pitchers and cops? That's right. And that was kind of the entire beginning of the company. And here we are 13 months later and it's working.
Justin Colby 2:57
It's been fun. And a little background on that, guys. About 13, maybe 15 months ago, him and I have a couple cocktails, jump on a private jet headed to Dallas, I believe. And he says, Colby, I need you to poke holes into this business model. I said, tell me why this doesn't work. That's right. Tell me why this doesn't work. And I couldn't. I couldn't think of one. I mean, I literally was like, okay, the challenge would be is, you know, you have a rookie investor. But to your point, if you are the one running this and running the ship and you're willing to buy on pictures and comps, why can't you lend? And I'm like... bro, if you have that much confidence and there's no reason this doesn't work.
Justin Colby 3:36
And to your point, you know, I'm very still active after 18 years. You're still active. You are still buying deals. I called you the other day and you're like, dude, I might want to buy this damn thing, right? Like you're not, you're not a lender in the way that we think of Kiavi or we think of some of these bigger, again, institutional funds. You are on the streets, in the trenches, teaching and not just teaching, but like creating an opportunity for us, right? your client to be a part of something really special at Ternus?

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