Real Estate Investor Funding: Fix-and-Flip, Commercial and Business Loans Explained

Travorius Jones (00:00)
We go to 10 plus million, okay? 10 million plus. Some of our buddies have had like 16 million, 17 million to close, and we close within two to three weeks. Now, the thing about it is, this is how we work. We go by yourselves. We don’t go by, you ⁓ your credit score, things like that, but we do do a soft pool, you know, of your credit score.

But that’s not what we want to know. How is each dollar going to be managed? How is it going to multiply? Excuse me, manage, but multiply. So we want to help you get that loan and multiply.

Dylan Silver (02:14)
Hey folks, welcome back to the show. Today we’re joined by Travorius Jones, an army veteran and owner of Katz Business Management, where he helps real estate investors and business owners secure funding for growth and expansion. Travorius thanks for joining us here today.

Travorius Jones (02:30)
Hello, how you doing? How’s everybody doing?

Dylan Silver (02:33)
Doing well, man. It’s great to have you on here. And when we talk about business lending and securing the funding that business owners and real estate investors need to grow, what are some of the first things that folks should analyze before taking out or before even having the conversation to take out a loan or business funding?

Travorius Jones (02:55)
Yeah, so the first thing that you have to do because you know, you want the money, but once you get the money, you don’t know what to do with that money. That money goes way out. that back. What you want to do is you want to know the right one. Know what is what what is it that you really want to do with that? And then you want to then you want to make a plan. And that is the easier and.

Give them out some people that are knowledgeable on that building.

Dylan Silver (03:28)
Right, right. I think that’s one of the components that sometimes people take ⁓ I don’t want to say for granted, but they underestimate the importance of it, right? Your sphere and that network. How important are those people around you when you’re, you know, planning your business and then in that initial scaling phase?

Travorius Jones (03:46)
⁓ So in that phase, you’re talking with a lot of back and forth and talking and just the meat and greedy of the company of your business. And sometimes it goes right and sometimes it goes well, but you have to stay strong and keep your head wanting to your goal and the goal of the company and the goal that you have.

Or if so, and-

Dylan Silver (04:18)
Let’s talk about some of the common applications that you see when brokering these ⁓ business funding deals and for real estate investors as well. Are you commonly interfacing with, you know, wholesalers and fix and flippers, or is it more so on the new construction side? ⁓ what is a typical deal that comes across your desk? Well yeah.

Travorius Jones (04:39)
everything we have, everything we have. ⁓ What’s built on by desk is commercial real estate. know, that’s all in buildings and building buildings. So it’s constructed all around. I get all types of clients. And I have a lot of vendors that I could ⁓ get to some learn about just to say what you want to do.

and watch again.

Dylan Silver (05:10)
Now, when folks are looking at commercial funding, right, what is the typical scale that they are at already before reaching out to you about business funding? You know, do they already have a a large portfolio of other commercial assets, or could this be someone who may be a first time commercial ⁓ operator?

Travorius Jones (05:32)
Yes, this could be a first time commercial operator. The thing about this, the only thing is that you have to have a 500 plus score in your opinion. And then also you have to have at least $15,000 month for three months. And that’s still tough because we’re different from banks.

Banks upon a stay here and charged by years and years of charging all the interest and never get approved. get people that are as white as you can in life get approved with CAAF, business manager.

Dylan Silver (06:15)
Well, one of the things that I think people are always looking at, but more so now than ever, the creative deals and creative finance. ⁓ is there, would you say, a distinction between ⁓ business funding and, you know, business loan brokering and this creative finance world, or are they like two peas the same pot?

Travorius Jones (06:34)
Now, ⁓ the law broker is taken from or is king of the real estate. That’s a combination between a higher level to get paid from that person for everyone to get

Dylan Silver (06:54)
Yeah. ⁓ there’s a saying, right, that if you want to see who the real big shot in the room is, wait till the lender walks in the room, right? Because, you know, you could be the investor with the deals, but everyone’s beholden to the source of the capital. In in talking with lots of investors, you know, people are really limited by their capital stack at times. And it’s one of the biggest sorts of growth opportunity and sometimes biggest grievance is, you know, I’m I’m simply limited by my access to capital.

You know, do you see investors that aren’t utilizing loan brokers ⁓ like yourself enough where they may think that they’re tapped out, but actually they have access to to more capital than they previously thought.

Travorius Jones (08:22)
And I am so smiling because this is what we do, especially in care business capital. You know, you’re back on sales, you’re a little back on sales, you need some money, you know, to hit the line and double, to multiply the dollar, you know, and the thing about it is that we help you do that. We help you go to the bathroom.

You may have a lot of say that’s what you keep up. keep pushing on to that and at Caps business management and peer business capital, but it looks for those types of That’s exactly what we’re looking for.

Dylan Silver (09:07)
Now, is there any reason that you commonly come across why business owners are staying small? Even inadvertently, they’re intending to scale, but they they seem to be staying small. Is there any common ⁓ bottleneck or obstacle that you see as a cause of that?

Travorius Jones (09:26)
Yeah, it’s a strategy. The strategy that comes from me is using it’s more of horror story and it’s as much of a part of, know, supposed to be. It’s a lot of behind the scenes that go back ⁓ to how the company should be right. There’s a lot ⁓ of ways that that just helps to handle it.

Dylan Silver (09:50)
Right, right. You know, you’re in DFW. I’ve lived in Denton, right, north D FW. And one of the things that there’s so much of is there’s a ton of development all over Texas, but specifically in the DFW market. So let’s pivot to talking about DFW. There’s all this talk of commercial ⁓ investing happening in what is it, you know, Disney World or Universal Studios, one of the two coming?

Travorius Jones (10:15)
Yes, yes, why so it’s 45 minutes away from me how good is that and I have a little league so how good is that I get to go so we have I Mean, know, I was born here now the Texas this is not the same Dallas that I knew, know, I came back from those I was like like it’s

Every day is crazy. It’s fun, especially me because I get to see the palm business. I get to see what other people here do because sometimes people would say go to LA or go to New York, but people would say go to Vietnam.

Dylan Silver (11:03)
No question. And you know, it almost feels like a little bit recession proof in DFW because there’s so much business being created. It feels like the middle class is a little stronger, even compared to the other Texas metros. ⁓ now when we talk specifically about DFW and then your experience working with commercial investors, you know, without maybe divulging all of the the gold, but maybe a gold nugget here for our audience.

What is a recent deal or something that’s come across your desk? Give us an idea of the size and scale of the scope of the the loans that you broker.

Travorius Jones (12:12)
Yeah, I just closed a brokerage two days ago on, I forget the company, but it was $78,000 and they were approved when they only had like $20,000 in their account. Wow. But they were approved for $78,000 with a 24-month payback. And the one thing about here is that

We don’t give you interest, okay? We give you something, what we call, ⁓ it’s meant for us to lower the interest. To give interest and paying back like that. We want to lower that too, it’s lowering the cost. So we have ways that you can be able to afford a loan and afford to pay it back.

Dylan Silver (13:06)
Now what was the ⁓ business ⁓ industry that that operator was taking out a loan for, ⁓ for that seventy eight thousand dollar loan?

Travorius Jones (13:15)
Yeah, they actually needed inventory. They needed inventory on their business and my boss told me to talk to him. We talked to him. We went through the application process, easy application, free application. He got him approved two, three days.

Dylan Silver (13:18)
Yeah.

Were they like a apparel clothing retailer or were they doing some type of physical product?

Travorius Jones (13:42)
no, I don’t think they were.

Dylan Silver (13:46)
Okay, okay. pivoting here, for folks who are real estate investors, you know, what are the investor applications? You know, can someone come to you and take out, you know, several hundred thousand dollar loans ⁓ and they could also take a look at, you know, a smaller loan for a light rehab, you know, fifty, sixty thousand dollars. What’s the scope of what an investor could come to you for? So

Travorius Jones (14:12)
We go to 10 plus million, okay? 10 million plus. Some of our buddies have had like 16 million, 17 million to close, and we close within two to three weeks. Now, the thing about it is, this is how we work. We go by yourselves. We don’t go by, you ⁓ your credit score, things like that, but we do do a soft pool, you know, of your credit score.

But that’s not what we want to know. How is each dollar going to be managed? How is it going to multiply? Excuse me, manage, but multiply. So we want to help you get that loan and multiply.

Dylan Silver (14:55)
Now on those bigger loans, what are typically the repayment terms like?

Travorius Jones (14:59)
The payload arms are, no, we don’t have any problem paying it back early. That’s good. The times have been from 12 to 24 months. And that is because we’re on our terms of money.

Dylan Silver (15:19)
Right, right. ⁓ pivoting here at Travorius, when we talk specifically about some of the I would call it entry level ⁓ segments of the real estate space, and let’s look at wholesale specifically, right? So when people are getting assignable contracts and and locking up properties for acquisitions, they’re gonna need earnest money deposits and there’s several different ways where of course people can access capital that way. You could JV with someone who’s got the EMD and you find the deal.

You know, you can negotiate for very low EMD, you could put up the EMD yourself. Have you had wholesalers reach out to you yet asking for ⁓ a way to fund them for either, you know, advertising or for these earnest money deposits?

Travorius Jones (16:43)
Yes, I have. When we approved that one, it was the fact that the credit score was low. The credit score was pretty low. but that everything that we wanted, but the credit score was pretty low. We put the application through, ran through and it was approved. ⁓

Dylan Silver (17:08)
You know, it it’s good to see because th there’s so many opportunities for folks to get started. But you know, one of the things that can be challenging is if you are starting, you don’t have access to capital, right? And then you’re finding, well, I capital is my bottleneck. I can scale, I’ve done a deal, but I need to be doing volume. Like the not every deal is gonna be a fifteen thousand dollar assignment fee, a spread between the acquisition and the disposition. So I’m gonna need to do some volume.

People can feel stuck. And they can also feel, you know, the same way about flips. Now, when we look at working with flippers, you know, flippers have a lot of options. They can pay cash. They can go to a hard money lender. They can take out I forget the specific name of the the loan. I believe there’s a type of rehab loan where you live in the property for a period of time traditionally. ⁓ what what is the context that flippers are reaching out to you for? You know, because they have so many options, when would be a fit for a flipper to reach out to you?

Travorius Jones (18:04)
So, a flipper, if you want to flip your money plus get paid for your flip, because what we do is, this is how we do it. We say, okay, you want to flip this, you want to flip this house, right? Or you want to this business. there’s a general family business. Okay, we’re going to pay you for the, for the.

Reven we’re gonna pay what you want and then we’re gonna also pay the cost of it is to renovate and that’s and and That’s and you’re making money right back Once it’s it’s cause it gives you that long that that is included in our law so that that and and sometimes that has a little longer than two to three years to the 12 to 24 months that can go

to three to five years.

Dylan Silver (19:02)
Very interesting. Very interesting. when we look at, you know, other ⁓ loan funding sources, right, such as, you know, RMLOs, loan originators, and going to a bank, for instance, right? Hard money lenders, which we previously mentioned. There’s different degrees of credentialing that that folks will have. And then there’s also, you know, just different strategies overall. Like if you’re gonna go through a bank, a bank’s gonna have very limited solution set typically, and also very specific like client.

⁓ box, ICP, ideal client profile. So when folks are coming to you, they they’re really have a wide range of products and solutions that could work for them. ⁓ do they come to you asking for like an end solution in mind? Or are in many cases they’re coming to you ha with a problem and a a need for funding and you’re presenting them potentially multiple options that could work for them.

Travorius Jones (19:55)
Yeah, most of the time that comes to us to with a question and it’s because, you know, only 80 percent, only 10 percent of people can be approved at a bank of business owners on 10 percent. The rest of that percent, then take another, you can take another 80 percent and you can say, well, they’re coming over to the Cass Business Management and they have

their money with the need and their flow and their business. They have cash flow coming in. They have revenue coming in. you know, that’s just probably.

Dylan Silver (20:36)
We are coming up on time here, Travorius Any new projects that you’re working on, or also anything you’d like to mention directly to our audience? Yeah.

Travorius Jones (20:46)
What

I want you to is I want you to give it a try. It’s a free application. you know, just take it slow, but know what you want and know what you want and know that you can have what you want. And that’s the crazy thing when I got with Pure Business Capital because they’re doing what we want them to do. They’re out here helping small business to corporations. I mean, make it.

I’ve had, ⁓ just this week, ⁓ let me see, I have right here, just this week, I had a talent agency, I had a footwear company, yeah. I had a restaurant, yeah. ⁓

Dylan Silver (21:40)
Travorius

it was so great having you on our show today. Thank you so much for joining us and thank you for your time.

Travorius Jones (21:46)
Thank you for having me. Thank you.