Unveiling Real Estate Investment Strategies with Tim Herriage

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Wake Up to Wealth 25 min 3 speakers 8 chapters transcribed
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What is the focus of Wake Up To Wealth podcast?

Host 0:03
This is Wake Up To Wealth, a podcast dedicated to helping you change the way you think about wealth. And now, here's your host, Brandon Brittingham.
Brandon Brittingham 0:18
Hey, what's up, everybody? We are back with another episode, and I got one of my homies on here. I'm super excited. My good friend, Tim Herridge. How are you doing today, brother? Good, B-Man. How are you? Good. So before we even get started into anything, I just have to say this because I use this so much. I think probably the first time I was ever in a room with you, one of the things that you said, I actually used it on the podcast yesterday, and I say it so much, is in the real estate investing world, you cannot buy a track record.
Tim Herriage 0:52
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.
Brandon Brittingham 1:20
So you have, for someone that's listened to this, we always bring on super interesting guests that have done all kinds of cool shit. You've seen the real estate world and been in the real estate world from a ton of different facets. So if you wouldn't mind, just give our listeners a high level of who you are and, you know, kind of a quick synopsis of your journey to what you're doing today.

What is the importance of a track record in real estate investing?

Tim Herriage 1:43
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.
Tim Herriage 2:32
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.

When is the right time to buy an investment property?

Tim Herriage 2:54
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.
Brandon Brittingham 3:08
Oh, yeah. Yeah. Yeah. I got my Project Rock shirt on today because I'm talking to you. Yeah. Um, so, so, you know, having seen multiple real estate cycles, right. And you're a real estate investor yourself. Um, one of the questions I know people always ask me, I'm sure you hear it too, is like, what is your answer to when is the right time to buy an investment property?
Tim Herriage 3:33
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.
Brandon Brittingham 3:48
Yeah. Now, you know, being on multiple sides of the coin, when did you decide and correct me if I'm wrong, the position you're in now, your focus is more your lender to investors, correct?
Tim Herriage 4:03
That's right.
Brandon Brittingham 4:04
So when did you decide, you know, I kind of really want to be on this lending side. I like the real estate investment side, but I like the lending side a lot better.
Tim Herriage 4:12
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.

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