Hard Money Lending

Mike Hambright (00:33)
Hey everybody, welcome back to the show. Today I’m here with my good friend Julius Mendoza from Kiavi, largest lender in America for real estate investors. We’re going be talking all about hard money today. Julius, welcome to the show. Hey Mike, thanks for having me. Great to here. to see you. It’s funny because whenever I people on the show, sometimes we’ve been talking for like an hour. I know. We should have just recorded the past hour. Well, here we are. I thought we already started.

Well, here we are. Well, we would have a bunch of blooper reels from the last one. There you go. Yeah, yeah, yeah. We play that at the end. So I’m excited to talk about you guys have been partners of Investor Fuel for a long time, sponsors of the group. we have a great relationship together. And I know we’re going to talk a lot about hard money today and about Kiavi a little bit too, and about you. But before we jump in, tell us about you. Tell us a little about you and about Kiavi. Yeah, of course. Thanks, Mike. So I proudly hail from San Francisco, California, from the Mission District.

Basically from there went to college, got a background in international business and econ at St. Mary’s College of California. I initially started my corporate career, whatever you want to call it, ⁓ in Forex. So was like a currency trading sales broker.

So I spent like five years in that industry and then when I was trying to figure out what I wanted to do from there, it really enticed me, like the idea of lending home. Like in San Francisco back then, there was like a lot of tech companies, which was really exciting for me. the idea of…

a marriage of tech and real estate together was really interesting to me. But I had no idea what I was getting into. Like I didn’t know anything about real estate. I didn’t know what LTV was even. So it was an interesting journey from the start. But what really attracted me was the people there, the concept of making an arduous mortgage process simpler through tech. So good people, good technology, and then well-funded, well-capitalized. So that was the whole spirit of Lending Home when it first started.

create systems and processes with technology that will make it easier and not hard to get money for your investment properties. Yeah. I had forgotten about the name change. Exactly what you guys want. Yeah. You used to be called Lending Home and then change the name to Kiavi because I said, what does that even mean? And you’re like, well, you’re trying to explain the origin of it. Who knows? But it doesn’t matter now. Well, it was interesting because it was like not an acquisition or merger. It was just a true name change. Yeah. So it went from Lending Home to Kiavi.

the skin went from like yellow and gray to green and then just so you know ⁓ Chiavi is a play on words in Italian it’s Chiavi so like

A big part of our mission is to help investors unlock the value in distressed or aging homes. So, Kiave were the key to help you unlock the value in aging distressed homes. All right. All right. You say so. And you were there early on, right? mean, you guys are the largest lender for real estate investors now. Yeah, yeah. You were there. I mean, you were employee number what? Like around 40 or so. OK. So I’ve been there for 10 years and four months or so. Yeah. And when we first started, I mean, it was probably like 40 of us, maybe

doing about 25 million a month on a good month. The broker and direct channel were actually competing with each other at the time. And there was a lot of growth. felt like I was on a rocket ship often. We outgrew our space three times. We went from an office on 201 Post, little scrappy office, to a nice rotunda office on One California. And then we had four floors at one point as we were growing And then COVID hit.

and then we all went virtual and then at that point you know we’re kind of wondering like

are we going to be able to operate at the same clip going virtually? And we actually were able to operate at a higher clip. So it kind of worked out with us. And then we’d have to pay this big lease on a building. So now everything’s virtual. yeah, it’s been a wild ride. I was on the broker channel for a while, like the wholesale channel, before a couple of years later going into the direct side. And then was fortunate enough to be in a client-facing role, which is how I got introduced to Fuel and build these great relationships. Yeah. Yeah, well, we appreciate that. Yeah.

25 million a month and you guys are Oh now we’re like doing like 700 million a month 500 on headcount. Yeah, that’s last year We did 6.7 billion and this year we we hope to get to Yeah a billion So a little bit of growth there. Yeah, and I it’s all because of you, right? No, can’t say that I gotta say it’s a great teams and great systems and empowerment I mean, I definitely put in my work and make impacts on the company, but it’s it’s all great great team great systems. That’s awesome Yeah, so we’ll talk about them

of relationship building. mean, obviously you don’t grow a company that size or you don’t stay at a company for 10 years if you’re not focused on building a lot of relationships. about the importance of building relationships and maybe some things that you do to build those relationships. Yeah, definitely. it’s interesting because I was in an inside, I don’t know if you want to call it inside sales or inside role where everything’s phone calls, emails, so forth. lending home Kiavi, we quickly realized that this is a relationship-based business.

So we have to act like that. It can’t be all inside. So the role as a director actually stemmed from the idea of we need to get belly to belly with folks, get to know them, build a relationship so that we can earn trust and create a mutually beneficial relationships that’ll last for months and years to come. So the spirit of my role is to get out as much as I can. this week, you know, I’m on a, we call it a power trip where we go meet investors in person, deep dive into their business, learn more about them and see what we can solve for.

to help them grow. And then also with mastermind groups. Like we want to be in the rooms with the investors to see what’s going on. And again, how do we solve for it through lending or other avenues? So just getting in front of people, getting to know people. ⁓ Everyone talks about ABC. I don’t believe it’s like always be closing. It’s always be curious.

Genuinely want to get to know people learn what makes them tick what motivates them and how you can like you always talk about this Like how we can add value not just to their business, but to their lives, right? Yeah, yeah, cuz I mean you’re you’re you know, to be frank You’re in kind of a commoditized space. Yeah, so the relationships are super important. Absolutely So that’s one way you differentiate yourself as you actually care about people you want to learn about them Yeah relationships because they could go other places, right? Sure I mean they could but I mean a couple things that really differentiate

from other folks is like, I mean just high level, like speed, we tend to be faster. High leverage with fuel, you know we offer 100 % financing depending on the investor and if they’re part of a mastermind and.

I mean, we have great people that care about the customer, closing on time, the things that are important to the customer. So I think those are like big things that really differentiate us in the space, not just like the sheer volume of it. Right. Yeah. So what are some things you do to build, you work with, you you’re working with hundreds or thousands of clients. Yeah. You personally, not, not your whole company. Yeah. Yeah. And so how do you, what are some tools and tricks that you use? ⁓

not tricks in a bad way, but just techniques. You have to be intentional about building relationships. It’s one thing to just be a good guy. Yeah, yeah, sure. But you can’t scale that. so for anybody that’s listening, whether they’re a real estate investor or have some sort of product and service, how do you build relationships at scale and be intentional about it? Yeah, yeah. think just

Again, being curious, but knowing how to ask open-ended questions that are relevant to their life, their business, and finding common ground. I think when you find common ground with somebody, could be as simple as both being Giants fans or wrestling fans or music fans, whatever it is. Once you find that common ground, just digging deeper and learning more about that person. And eventually, when you do that, that person’s gonna wanna learn about you too. So they start asking you questions too. ⁓

pinpoint certain things that maybe struggles for them or challenges, which are not always negative. When you can identify challenges, then you can find solves for the needs and so forth. And then once you actually establish the relationship, finding ways, because it’s really hard to keep up with, I mean, you have 80,000 investors plus in your network, so I admire you for keeping in touch with everybody so well. But once you get to that level, how do you keep in touch?

like what next steps are you setting to keep the relationship going? Whether it’s like meeting for lunch or setting up a phone call, ⁓ really paying attention to the people that you’ve grown over the years. So I think that when it comes to relationship building, it’s really all about just keeping track of everything, genuinely caring.

and finding that common ground. Yeah. I think some of it is, this sounds a little contrived, but to do it at scale, you have to use systems. Sure. CRMs, contact managers. And it’s not so much like, and I’m saying, obviously people know CRMs as a way to send out tens of thousands of emails a month. It’s like, send a lot of emails, doubt. But the truth is, is like for the people that are in my mastermind,

I don’t send out messages. I don’t generally send stuff in mass. Unless it’s some sort of notification. But sometimes people will be like, is this you, Mike? Or is this a VA or a system? I was like, no, it’s me. And I send more personal emails than people think. But it’s important to, I think it’s back to the CRM. It’s one way to send out lot of messages. But I put a lot of notes in there. We want to know the history. We want to know. ⁓

you know, what is our history with that person or.

what’s the name of their spouse? some instances, I just know that. But we try to just track all those things. Because you can’t remember it all. And I do want to build relationships with a lot of people. Yeah, absolutely. And I struggle with that a little bit too, like the automation piece. Because sometimes you could do email blasts and so forth. But I’ve always been a fan of writing a tailored email based on what I know about the person. It is time consuming, especially to scale. It’s harder to scale. But I think those go a longer way than automation.

if it’s canned, you know? And then some people like send me a smiley face or something, because they know. But they know that I’m still like, my intent is to like try to keep up with everybody. Right. Yeah. I think the key is when you try to pass off.

pass it off as being personalized and it’s not. Sure. Yeah. All about being authentic, genuine. Otherwise people read right through. Yeah. Yeah. That’s why I use a lot of videos like you probably see. Yeah. Bomb Bomb. use Bomb Bomb as a tool. There’s a lot of tools out there. I mean, you just use your phone now. But people even comment to me like when I say their name in it, they know, oh, I thought this was like for everybody. soon as I heard my name, I you just talking to me. Oh, no. So they’re very personal. Yeah. And it’s cool. Tech is easier to use than ever. So absolutely.

Plus, I’m never short on words, so it’s always easy for me to just talk into a video versus write it where I want every word to be.

Yeah, you’re natural. I think that’s I think when you do like like I need to do more of that because like when you send those videos to like personally to people, I think it like catches them off guard in a good way. they’re not expecting as much. So you said something a minute ago about when we talked about like building relationships and asking people for the challenges, it’s because some of it is you want to be able to be a problem solver for them. Like if you know what somebody’s challenges are, we do the same thing. Yeah. It’s like, well, I don’t I don’t want to just tell

what’s not working right now so that I can bag on you for it, right? It’s like, what’s not working and maybe I can help you. Right, exactly. So talk about the importance of being not just, you have a product, I have a product, we have products, right? And of course we want to sell more of our products, unless you can start to have a conversation with somebody to learn what their challenges are, what they’re facing, because sometimes it’s like, well, I, they like need lending. like, well, I don’t do that, but I know Julius, right? And so if you tell me what’s going on or what you need the most help with right now, then I’m a natural connector. And I know you are too.

So just talk about the importance of listening to people, understanding their challenges so that you can serve them at a higher level. Yeah, definitely. I I think that when you really connect with somebody and they trust you, then they’re going to start opening up more, you know, and then not opening up just about the challenges, but maybe maybe some things they really like and how can you enhance those things that they really like. But when it comes to like challenges, I mean, obviously I work for Kiabi, right, lender. So like if they’re having challenges with speed or leverage or

or pricing process, maybe lack of.

a feel like they’re a customer because they want that relationship. Those are all things that you can easily solve for. Or if you just want to be a friend, I could be a friend, right? But to your point, being a good connector, if someone’s trying to get more deals or someone’s trying to solve for some insurance problems, being well connected with people like yourself or Fuel and all the vendors that I met, that’s huge to be able to introduce people to other people that you’ve trusted.

and earn their trust over the years. Right. So I think it’s super important. Always thinking outside the box, not just being like laser focused on lending, but hearing people out on everything. Yeah. So you can connect them with the right people because everyone’s in ⁓ Dale Carnegie. Everyone’s an expert at something. So you want to point them in the right direction for the person that’s the expert if it’s not you. And there’s reciprocity like that comes back around. Yeah, exactly. I’ve said this because I used to flip a lot of houses in Dallas and I

used to say, I can’t, ⁓ like, my general contractor, ⁓ like, I didn’t really want to tell anybody my main guy. It’s like your best. Sure. When you have kids, you don’t want to tell anybody your best babysitter. Yeah. You’re like, well, what if I’m not available when I need them? Right, right. So, right. But if it was like an HVAC person or the glass guy to replace some windows, like, I’m just a very small part of their business.

And so what I found is, ⁓ especially for, this would be probably good advice for smaller investors, like, find ways to refer your contractors, the smaller ones, to other people. Because then, miraculously, they’re more readily available when you need them. Yeah, right. Because you’ve helped them in other ways. If you’re not that important to them, one way you can become more important is to help them grow their business. Yeah. And so literally, I’ll just give you an example of a guy that I used to use. ⁓

for replacing glass, like windows. we replacing the whole window, we’re just replacing the glass, fogged glass, and fogged windows, and stuff like that. And this guy would normally say, hey, I’m like two weeks out. Like, I can’t get to the shop for two weeks, but for you, I’m going tomorrow. Nice. And he did that because I referred him a lot of other business. There you go. And he appreciated that. And that’s one way that we can.

I understood his challenge, which he wants more business. And my challenge is I want speed. And in exchange for that, I’m going to try to help you solve your problem. Yeah, absolutely. I it wasn’t contrived. But the more you can connect people with the things they need, the more opportunity miraculously falls in your lap. Right. And I think you’re hitting on a.

Wonderful note about reciprocity because even if it doesn’t help you directly right now, I truly believe that everything you put out in the universe comes back to you. So you just do right by people and it will come back Karma’s alive and well, Karma exists, it’s real. Absolutely. So let’s talk about, I’ll say like in the early years when I started investing, I often thought of a lender as like unnecessary evil or like we’re like, we gotta like arm wrestle over rates or things like

And it just took time for me to realize that hey my my lenders are my partners like they want to keep me safe They we want the same thing They want repeat business, so they’re gonna do the right thing when it comes down to it and things like that So just talk about like that idea of a lender is just like somebody that I don’t want to pay But I have to use them a necessary evil if you will yeah, like no this is actually your partner Yeah, absolutely well we I love that you’re saying that because we do have a partnership mentality We want to help folks grow and scale their business just like

we’re growing and scaling ours. So in order to do that, we have to put together credit policies that we don’t want them to be too stringent and where it feels like a pain in the butt, but also we want them to be highly likely to perform. So kind of like balancing that. But I think like, you know, when I work.

Some people will use private money. Obviously, that money can be finite, and that’s where institutional money comes in. Or some people are cash buyers if they don’t want to use lenders, if their cash is tied up or they want to their business, then the necessary evil of the lender comes in to help them leverage their money. But when we look at the deals, as far as a partner goes, we want folks to succeed. We have an extremely high percentage of folks that are doing either successful flips or burrs, higher than the industry ⁓ average.

So

when we’re doing these deals, we try to get first the valuation quickly, as quick as possible. And we’re like a second set of eyes. The investor will come from property. You’re going to try to keep them safe. Exactly, with the valuation. Because they’re using your money. Yeah, exactly. So if we’re off, now there’s something to look at.

as opposed to think, ⁓ these guys are against me. No, we’re actually with you. We’re just trying to help you see this with a different lens. So on the valuation piece, it’s huge. And then the rehab budget, our feasibility team takes a quick look to make sure, hey, maybe you don’t have enough here. Maybe you should put a little more. Or maybe this is way more than you think, maybe a little less, just to make sure your budget’s really dialed in. And then people can connect with their contractors to make sure that they can.

perform on that, and it doesn’t go over, often when rehabs go over. And then ⁓ once the deal is like,

funded, we have an account manager that’ll check in to make sure the project’s going well. And what other projects can we also help with, like, scaling? And then on the servicing side, we always try to be cognizant of situations and try to see what we can do to help the situation. Because we’re obviously not in the business of taking houses back. We want to make sure that we can get people out of situations when they happen so that we can continue to do deals in the future. Which is what you really want, right? At the end of the day.

You guys compete ⁓ pretty hard on rates, You’re definitely not, I mean you are one of the lower rate lenders in the market, right? And so you’re not getting rich from one loan. You’re trying to build a relationship that.

We’ll stay on the test of time and you can do dozens of deals a year with people, right? Exactly. We’re not in the business of doing one and done. We want to create relationships that, like I said, will work for months and years to come. And then we’re always thinking about how to open up the box or create features that can help, depending on where the market’s at. Because right now, with a shifting buyers market, we have longer terms, up to two-year terms. We actually had a rate reduction, despite, like you said, good rates in Bridge.

because longer carries, you we want to try to help alleviate that. So always thinking about ways to help people so they can keep doing business, of what’s going on in the market or regardless of like.

if they’re getting a maturity, what can we do to get them out of the situation, do more deals. What else is from an innovation standpoint, guess, like new products? Because I remember just a couple years ago, the DSCR stuff, loans that people would get for rentals was very distinct from the short-term fix and flip money. then, hey, then bridge lines came in, where we’ll fund it with hard money, and then we’ll make it easier for you to refinance. mean, that sounds crazy that that

not didn’t exist a few years ago. I know. But I mean, what are some other things that I guess this market is driving? You said longer terms. But anything else that this market has created some innovation on your side? Yeah, yeah, absolutely. So going back to the valuation piece, like right now, it’s a manual process on the pro program, the line, like the 3 to 8 million line. We get in a day or two. on our website now, we can do automatic ARB analysis. So you can get that back quickly.

And then, you know, currently in today’s world…

with the bridge loan first, and then you refine to DSCR debt. That’s a two-step process, two closes. But I’m really hoping that we can put something together where it’s a fixed-to-rent or built-to-rent product, where it’s just like one closing, and then it transitions after a certain amount of time, whether it’s six months, eight months. So hopefully that’ll come up ⁓ in the near future. then- Build-to-rent, where you would transition the loan from the investor to the long-term hold? I’m hoping.

There’s a lot of build to rent activity going on. That’s one of the bigger things over the past few years. Yeah, absolutely. Especially for institutional folks, but even some of the guys that are in Investor Fuel that run turnkey models, they’re starting to do more building to rent. Absolutely. Yeah. The DSR business for us has actually started to pick up more. some people are still thinking about…

creating wealth with cash flowing rentals, but also pivoting to plan B, because of where the market’s at and playing the long ball. ⁓ But when it comes to innovation, mean, our tech, our portal has been a huge, at the forefront for us. Like it allows people to underwrite the deals upfront, like for bridge and also rental. Like you could plug it in and get a quote right away to see what it looks like on the backend. So that’s really helpful for people. Like, what does it look like upfront? Not just upfront, but like if it were to be a rental, what would it look like with today’s rates?

And we’re in good place right now because rates are the lowest they’ve been all year. Like earlier this year in Jan, we were at like seven and eighth for conventional. Right now at about six and a half. So I’m hoping that’s a trend, you know, to be able to do more rentals. But you could see what it’s like with today’s rates. Yeah, that’s great. So what are some other things you guys do to compete on? Obviously, service is big view. You guys were pretty competitive on rates. How do you stand out? We talked about really lending being on some level of commodity. Yeah.

to differentiate yourself. What are some other things that you guys do? Yeah, definitely. mean, whenever people ask, like, what makes Kiabi different other than, you know, we’re the largest in the space, do more deals than anybody else. Kind of a big deal. Yeah, humbly we’ll say, like, we’re kind of big deal. ⁓ I mean, I really think it starts with great people. We hire really well. ⁓ Someone told me once that, like, to preserve the culture of, a company,

or a church or whatever kind of like congregation, right? To preserve the culture, it gets really difficult once you get to like 180 plus or so.

And we’re at like 500. And I feel like from a hiring standpoint, which is a challenge for a lot of business folks and investors, like good hiring, right? I think we’ve gotten really good at that. And everyone’s really aligned on the core values and the mission. They really want to just work together to get the deal done. That’s what we want to do. So I think that alignment and company culture is really strong. You talk about systems.

We have the best tech in the space and systems that just make things more streamlined for investors. I think that’s like number two. Number three, we’re well capitalized. So we’re always raising money for securitization since we implemented that program in 2019. So we don’t wait until the securitization money expires or runs out before we start looking for more. We’re always looking for more capital, so we’re well capitalized so the well won’t run dry. So that way, like,

with the securitizations, they have a time expiration. So regardless of what’s happening in the market, the money will be there for us to be able to fund the deals. Yeah, that’s great. So from a reliability standpoint, if something were to happen, like unexpected, like remember we saw COVID, or I don’t know, anything, war or something that will make people want to pull out, we’ll actually still be in the race because of the securitizations with the time commitment, regardless of what happens in the market, we’ll be able to fund them. That’s great.

think those are some big differentiations. Not a lot of lenders are doing 100%. We trust investor fuel members that are pro-approved with 100, amongst some other masterminds. ⁓ not a lot of lenders do that, like zero down, unless you get creative. Some say they do it, but when you start talking to them, it’s like, well, miraculously, this one doesn’t fit for that. Yeah, miraculously, somehow. ⁓

Yeah, those are some of the biggest things I would say that come like top of mind. Yeah. So we appreciate the relationship with Investor Fuel. Maybe talk about what that’s looked like for you. You guys have been a part of the group for, I think, five years. Yeah. Maybe coming up on six years. five years. Talk about that relationship. absolutely. We value it. we do too. think? Yeah. Yeah, so very fortunate to be a part of Kiavi and Investor Fuel. I remember when I got the phone call from Stinson just saying like, hey, know, someone is out of the race.

on the wait list. Yeah, right, we were. And like, do you guys want to come on board? We got that approved quickly. And I just remember what it felt like to be a part of a mastermind for like the first time. Like being in the rooms with folks, ⁓ learning about what’s going on in their business through the hot seats, like super enlightening, roundtable discussions, keep a pulse on everything that’s going on. And the biggest thing is like, for me,

like being able to help people in business and also create lifelong friendships. Like you always say like, let’s do life together. Like, I love that. I mean, it’s huge. It’s like super fulfilling, super like, it’s just great. So.

You know, being a part of the group for five years, we had a celebratory spotlight. You know, talk about how we were with the group for five years and we asked folks to share about their experiences with Kiavi. And it’s a two way street, you know, and it’s super fulfilling and rewarding. And, you know, I’d recommend it to anybody, obviously, like I always do on the phone, but it’s just a very unique relationship that I’m very grateful for. And it’s just dope. Yeah. Yeah. That’s a, we were thinking about changing the name to.

Dope fuel. ⁓ Feel your life with dope fuel. There are other masterminds out there. We don’t have to talk about them or talk bad about them. how would you, in your experience, as a service provider, you’ve been a part of some other groups before. Of course. How would you say investor fuel is different? Yeah, definitely. So I feel like.

I have nothing but great things to say about all the mastermind groups. Like structure-wise, know, as far as like doing hot seat presentations, the people in the room. ⁓ I think leadership is a big difference, just the style, you know, everyone’s style is different. And… ⁓

It creates like a tribe. Every group attracts a certain avatar of folks. And I feel like in Investor Fuel, everyone really wants to pour into each other. Everyone’s really willing to give. ⁓ It’s not like holding secret sauce back or anything. And I think the more you give, the more everyone gets out of it. And everyone gets that at Investor Fuel. Other masterminds too, of course. But the vibe’s very unique. I really love that. And everyone in Investor Fuel is focused on, for the most part,

It’s real estate investing, so like-minded people in the room. Other masterminds might have different verticals or different industries they’re doing. But this one’s pretty focused on, let’s say, things that we do, like fix and flip, burring. ⁓ People are really into figuring out ways. You said it yourself, you’re a marketing guy. Marketing and then vendors, different vendors. But I really love.

that you talk about keeping the pipeline filled, like top of funnel. We always talk about that at KiAvi too. Always keep the top of funnel filled so that you always have business to win and earn. those things really resonate with me. Yeah. I guess basically you’re saying Investor Fuel is the best. I know you’re trying to be Switzerland here. Hey, Investor Fuel has my heart. Investor Fuel has my heart. I always tell you that. So you work with a lot of investors, and the past couple of years have been a trying

time for some. Some people are crushing it. Yeah. Some people have struggled. Like what do you what do you see across the board of like what’s working well now for

investors? Well, ⁓ you know, as they say, you make all your money on the buy, right? So investors that are buying deeper may not get as many units, but they’re definitely putting themselves in a better position to either withstand mistakes or shifts in the market and so forth. So people that can buy well and are patient, like

No deal is better than a bad deal, let’s say. Those folks are doing pretty good. Project manage really well, because if you go over your rehab, obviously that eats into your profits. So people that are able to keep that rehab tight and people that have construction crews or GCs that will perform on timelines and that budget tend to do really well too. ⁓ people that are like,

that choose which market they want to go to just based off of like market stability or how many people are moving into that area or job growth. Like people that are paying attention to that for like flips and rentals tend to do pretty well too. ⁓

and people that are in and out quickly, you know, whether they’re fixing and flipping or buying and renting. And a lot of that has to do with like the rehab piece. Yeah. As far as like getting more deals and sourcing, mean, direct to seller marketing, like that’s where you’re to get the deepest deals, obviously. Sure. Some people tend to leverage wholesalers, ⁓ agent relationships, like getting in touch with the Goldilocks zone agent, I call it. Like you don’t want to call it. You don’t want to call the agent. It’s like two

green that won’t bring you good deals, but also not the agents that are just absolutely crushing it, that don’t have time for you. Like agents that work with investors that are in this Goldilocks zone to build a relationship with you and get more deals. And then, obviously, there’s free ways to do it, like social media. TV, I I hear a lot of good things about TV. Yeah, we’ve a of people in group doing TV. Yeah, exactly. So that’s on the acquisition side, but I think full cycle.

Systems, have a good system for your acquisition. Make sure you’re buying right and not just to get into a deal. Make sure your project managed right so that your rehab is tight and you’re performing on timelines and the actual budget. And then having a good dispo, you know, dispo system, whether it’s an agent or if you know how to do it yourself. Price it right so you’re not like up here and then you got to start price reducing and then people want to negotiate even further down with you because they think something’s wrong or whatever.

So those are a few things that come to mind. ⁓

You got to everything you got to do. You got to be in and out faster. You got to be more decisive. And you got to probably try to not set new comps. Like, I’m going to try to set some new high in this neighborhood. Don’t do that. Yeah, it’s not the market for that. Yeah. And always have plan B. So if it doesn’t sell, what’s your plan Can you rent it? Yeah. Yeah. Exactly. Yeah. Cool. So where do you think rates are going? What do you see happening? And nobody knows for sure. I think we all know rates are going to go down.

at least by next May when Powell’s out if he’s not out sooner than that. The writing’s on the wall. Rates are going down. But that doesn’t necessarily mean that rates for lenders will go down. mean, it’s just kind of as baked in. But where do you see things going, I guess? Yeah, yeah. Well, um.

I a few thoughts on it, like no crystal ball. ⁓ Nobody has a crystal ball. Yeah, right. ⁓ A good friend of mine, his name’s Charles Goodwin, he works with me. you’re gonna say Donald Trump, okay good. No, I wanna be friends with Donald Trump. He could tell you little bit more about where things are going. Yeah, exactly, exactly. But he told me once that his father said… ⁓

The only constant in life is change, right? So with rates, I have a feeling, I’m hoping that we’re gonna start seeing a downtrend, like I was telling you earlier. ⁓ Rates ⁓ were at a high, at seven and an eighth conventional in Jan, and now we’re at the lowest of the year at six and a half. Recent job reports were pretty low, especially the corrections of job reports. And you always look for these things that will create

downward pressure on rates and I think some of it’s there in the form of like a correction in the market not like a crash or anything. There isn’t like enough like data saying that like.

people are getting into huge distress with foreclosures or whatnot to try to say that it’s a crash coming. So I think we’re kind of like, and then with increasing inventory, and that could put downward pressure on prices, but. ⁓

I feel like it’s like a correction before the upside. Like, Kiabi, overall we’re bullish on the market. We want to keep go, go, go mentality and keep funding deals, good deals, obviously. If you’re in a market where prices are coming down, definitely bake that into your ARV when you make your buy. Be more conservative, approach with caution. ⁓ But as far as rates, people are predicting a quarter point reduction later on this year with the Fed. But as we know, the Fed

controls mostly like short-term rates more than like mortgage rates. I think like following the bond market. Some of that might be baked in already. Right, especially before the announcement even comes out. So like I think following, you we follow the 10 year treasury to try to get an idea. It’s like a proxy for mortgage rates because, you know, in a risk off environment when folks are like trying to put their money in more.

like safe things like bonds, like buying the bonds puts downward pressure on the yields, which can create cause rates to go down. And if you look at the 10 year treasury, it’s been, it’s funny, I talked to someone about this the other day, he like, what’s a sideways tunnel? I said it was like a sideways tunnel. You know, it’s been kind of sideways since like April of this year, like kind of sideways. But if it breaks down through support, like I would like to think that rates will come down. So it’s keeping a close eye on that and listening for things that could create downward pressure.

Yeah,

we’ll find out. If we can get down to like, because we follow John Burns a lot, research. Yeah, yeah. If we can get down to like, some say sub-6, but like 5 and 1 half handle, I think it’ll really kick things off for DSCR, affordability, everything in Yeah, yeah. That’s awesome. Well, time’s going to tell. We’re going to see. Yeah. That’s an interesting time, right? Yeah. There’s so many people that don’t know what’s going to happen, but I feel like there’s good news on the horizon. Absolutely. Yeah. And we’re optimistic. I’m an optimist. You to be. You have to be, yeah. So if folks want to learn more about

to work with you work with Yahweh if you’re working with Yahweh I highly recommend you work with Julius here by the way good good guy so where can they go yeah absolutely so

In the spirit of partnership and collaboration, if you want to sign up for your Kiavi account, and it goes directly to me so that I can get in touch with you, learn about your business, ⁓ either myself or someone on my team will take care of you, you can go to www.investorfuel.com forward slash kiavi, and then you enter your info, and then it comes to me, and then we connect, and then.

There’s nothing about magic happen. We make some magic happen. Nothing but upside. Onwards and upwards we go. Fantastic. So investorfuel.com slash kiavi. We’ll add a link down below in the show notes too. So that’s great. Let’s do it. Awesome. Thanks for joining me. Thanks for coming in. We’re going to dinner together tonight. Yeah. Looking forward to having a good time tonight. Absolutely. Thanks so much for having me. It’s an honor to be here. Yeah. Appreciate you buddy. Yeah. Everybody at the end of the day like lenders you can’t we can’t really do what we do without lenders and good relationships. And so Kiabi is become

the largest lender in the country. Definitely you should be working with if you need lending for your deals. I highly recommend you work with Julius. We’ve been friends now and partners for like five or six years. And so just a great guy, a positive guy. Definitely recommend you check him out. So appreciate you a bunch and we’ll see you on the next show.