How We Are Helping Our Private Lenders Get Higher Returns | REIal Talk | EP. 17

Hey everybody. Flip and Danny here, co founders of the Freedom Real Estate Group family of companies.

Always make me laugh.

Welcome to our podcast. And our podcast is called Real Talk.

Which is Real talk for real estate investors. You always surprise me. No matter what, you just do something crazy.

Trying to keep you on your toes.

Yes, you are. Alright, so today on our podcast we recently did a vlog titled how we're helping our private lenders get better returns, Higher returns on their money. And so we gave a brief snippet about what we're trying to do right now. We're going to go into that here in this podcast today. We're also going to kind of go over not completely detailed, but for those of you who are watching YouTube, you're gonna see something on the screen and it's called, it's our report that's top five Passive Real Estate Income Strategies to make more money in 2021. It's actually a report that I wrote yesterday. I've actually been work like drafting it out for like, you know, a few days but never had time. So I was like, let me just quiet and focus and finish it. And so we just finished it because we launched a website, our Freedom Capital Group, which is our sixth company, which is doing syndications large apartments. We just finished the website. So if you go to investwithfcg.com and F stands for freedom, C stands for capital and G stands for group. Investwithfcg.com that's our brand new website. We're going to launch it this week because we are going to upload this report. I have some people proofreading it now just to make sure that I didn't proofread it. So it probably has spelling errors, grammar errors. If you find any of that, feel free to let us know.

And sentences that run three pages a day.

Yes, yes, I'm really good at that. Anyways, we're going to talk about it a little bit because private money is like the very first topic in this because we work with a lot of private money lenders and it's been a great way for them to diversify outside of their real estate holdings and the other the things that they're doing like syndications. So we're going to talk about that today too.

Excellent. Well, I'm going to grab my popcorn. Since this is your wheelhouse and this is your baby. I'm here for the ride.

And for the math.

And for the math. That's right. I've got my calculator at the video.

All right, so let's dive into private money lending first, because that's what our vlog was about, because I really wanted to hit on this. So we've been trying to figure out ways to make it easier for our private money lenders to earn money. Also how to consistently get them the return across the course of a year or longer, depending on how much they want to do. So we've always had a masternote program, but it's not always open to investors. Our masternote program is a little bit what we're talking about today in that they are going to give us money. We have an entirely separate bank account for that money so that it's not mixed with anything else. And that money is then used for deals and we're using it year round. It's our responsibility to use the money because we're paying interest on it, because it's there and available to us to use. Investor is now getting quarterly interest payments on what, you know, they gave us.

Right.

So that's been a great program. But again, we don't open it all the time. And every time we do it, we have to open up another separate bank account.

That's right.

Sometimes I wonder what PNC thinks of us. How many bank accounts are you guys going to open? And it's just because we want to silo the funds and make sure that.

I'm pretty sure that they like us.

Yeah, yeah, they like us a lot. I have no doubt. Anyway, so that's been one strategy we have done in order to do what I'm trying to accomplish on a bigger scale. Because somebody with $50,000, we're not going to do a masternode account for $50,000 because that typically doesn't even do a purchase and rehab. We always, any of our lenders that do the $50,000 minimum that we ask for, we're always topping it off with our funds anyway in order to complete the purchase. So I'm trying to allow the many, many investors who do have $50,000 that want to be a part of the private lending program to be able to get higher returns like our masternote investors do, because then it's earning interest all year round. So do you want to talk about that a little bit? I know this is my wheelhouse, but you understand and why the effective interest rate is greater if it's working all the time.

Right. So I prepared myself and I did the math ahead of the game. So we're just gonna use, for simple math, $120,000. So somebody has a. They call you up and they say, hey, Danny, I've got $120,000. And you said, okay, great, Tiffany's gonna send you a deal. Okay, so then Tiffany sends them a deal and they go into this deal and they're at 10%. Now, it was a. I'm not sure what the. How long the lender, what the terms are, what the length is, but this one's going to go. I believe this one's going to go for eight months. So now if you have $120,000 at 10%, that's $1,000 a month. See, simple math. Okay, so if you did that and you got $1,000 a month, but the term was only eight months, well, then you made $8,000. And then the next four months we were trying to get you into another deal, but we just Weren of that $120,000 went back to your bank account and sat in your account making that.0001% whatever that your bank gives you. So gracious. So now if you calculate this, if you were to have the $120,000 making 10% for the entire year, you would have made $12,000.

That's right.

But we returned your money after eight months. So you only made $8,000 and then didn't make anything for the last four months. So for the year, you made $8,000 on the $120,000, which, because I did the calculations earlier, is only 6.6%. Now, that's still screaming good compared to your bank.

Compared to your bank and other investments. I don't even know of another investment that's paying like more than 3 or 4%. And 4% is hard to get, but.

If you were in a program where your money was working for you every single month of the year, you would have made an additional $4,000 on your money.

Yes. Yeah. So great math. So now let me throw that back into reality because it is very, very for us to be using your money for eight months and then not get you into a deal for four months.

That is very. Yeah. Usually by the time we're getting ready to closing, we're sending you another deal to get into it.

But this example could be true in that maybe one of the deals was four months and then it took maybe a couple months to get you into the next one, which again is a little bit rare. But we're trying to really kind of show you what we're talking about today and make it hit home. So you're in a deal. It's about four months, takes maybe a month and a half to get you into the next deal. That deal is maybe another four months and it takes you maybe a month and a half to get in the next deal. So that's what we're talking about in terms of we're giving you your money back. It's sitting with you, you're holding it, and it's not earning. The little children that Kevin o' Leary talks about, he's gonna send his children.

Out every morning to go make more money.

Yes. So the little dollars or the big dollars are not making little dollars for you because they're back in your hands. We want to be able to take the money and keep the interest coming the entire time. So the effective interest rate is truly that 10% or whatever it is. Now, we do have intervals too, of interest rates. Right. Depending on how much that you're investing, we're anywhere from 6 to 10% for interest rates. Every now and then we go up to 12. That's usually for large apartment deals where we're bringing in a lot of investors who have quite a bit of funds. So every deal is going to be a little bit different, but the point is still the same. No matter what interest level that you're at, your effective interest rate is less if we're not able to use the money for as long as possible. So then let's talk about this. So here's, this is what we're trying to fix. The note and mortgage private lending program is what we're accustomed to. It's what we've built our entire business on. Right. You're just like a bank. You're in first lien position. If anything happens, then you can foreclose on us. That's never happened. We've never defaulted on a loan. We've never not paid somebody exactly what they're owed. Even if we lost money.

We lost money and still paid them.

Exactly. And the lender still got everything that they were promised. And that's, that's why people, I heard so many people say, I heard you on the podcast, that I get paid even if you lose money. I'd like to work with you. And it's a trust based relationship. Right. And we want that and we want our private lenders to be raving fans of us because we do things like that. We don't go to you and say, you know, flip man, we just lost our butt on this one. Is it okay if I just pay you back and not pay the interest because I just don't have it. Like, we don't do that. You're gonna get exactly what we promised you every single time. So that's our traditional program, note and mortgage program. So we're going to buy a house. There's going to be a note mortgage created because you're the lender. It's going to be in your name, you're protected, secured by the asset, you know, et cetera. Then when we sell it, we're going to create a payoff statement. If you lent us $120,000 in this example, then we're going to calculate how long that we held your money, and we're going to figure out what we owe you. And then you're going to have a statement that says you loaned us $120,000. Here's the interest rate, and here's how long that we held the money. This is the interest that we owe you on top of the principal. And here's your payoff statement. And so you get that back, you appro. And that's what you get paid off at closing. So that's how our traditional program works, our master note program. Simpler, right? You're just going to wire U.S. funds. We're going to stick it in a separate bank account that is your funds and your friends only. Tiffany is our transaction coordinator. She's the one in charge of funding all of our deals. She tracks all of the money, where it's at. And so when it gets. When it's. When the house is sold, the money goes back into the account with the interest. So she's got it. Her and our CFO Randy, they've got a down pat of how they track everything. And then every single quarter, the investors just getting their interest back. So as soon as we. That masternote comes to an end, we will owe them their principal, not principal plus interest, because we're paying their interest every single quarter. If it lands on a quarter where we might be paying the principal plus the interest at that point in time for that quarter, depending on where that lands. But that's been a really neat opportunity for some of our larger investors to get involved in and keep their money working for them. I want to now do that for everybody. And it's not as easy to do. We're not going to apply a separate bank account for $50,000, man. Well, that'd be crazy.

Yeah. Then PNC might not like us.

Correct. I won't like us anymore. There's too many bank accounts. So what we're doing is we're working with a SEC attorney to create a fund. And it's a debt fund. And what it's going to do is going to allow us to take all of the lenders and go into the fund and we're going to figure out, I'm working with them is like, you know, how long is it? Can people choose to do one year? Can they choose to do two years, three years, five years? Can they choose how long that they want stay in there and how does that work? And so we're working at all the details. It's not all finalized. We probably won't do one year. We'll probably keep people who want to do one year in a note and mortgage, because some of our deals take a year. And we don't want to get stuck in this scenario where we're having to cash out, you know, quite a few investors when some of the assets that were purchased by that fund actually took, you know, a full year. And we're having to cash people out and we haven't sold the asset yet. So I think the minimum is going to be two years. But we're working on that, and then we're just figuring out all the rest of the details. But the idea here is, once this fund is created, it's regulated by the sec, so it's still secured by the assets in which we're buying with the money that's in that fund. And then we're going to figure out when we pay investors, it might be annually for the reason I just said, because of how long it takes for an asset to be purchased and then sold so that we have the money back so that we can pay out interest. So we don't want to get ourselves into a scenario where we're paying out interest and we haven't sold assets yet because that's what we're doing now with the note and mortgage, you get paid when the asset is sold. So we know comfortably on a financial level that we owe you money once we've got the profit back in the door. So we're attempting to do that with a fun tune, and we're having to work through some scenarios to figure out what that looks like. Fortunately, the attorney is very experienced in this space, so he's going, you could do this. You could do this. And I'm like, okay, just keep it simple. Because I'm a very simple person. I need it to make sense to me. Otherwise it's hard for me to talk to people about it. And people are always more comfortable with something that's simple as opposed to complex.

It gets too confusing. That's when I just go, okay, I'm done.

No, thank you. So we're working out all the details, but ultimately all of our lenders are going to make more money as a result because they're going to be able to invest in something that we are using. They trust us, they know us, they've worked with us for a very long time. And we're going to be buying the assets with it. And according to the terms of that fund, we will dictate how the interest gets paid out and we'll do updates. We'll probably put them in a portal so they can see, hey, you know, these are all the assets, this is how they're performing, this is what it looks like, you know, yada, yada, so that they kind of stay in tune with what we've got going on. So that's kind of the nuts and bolts of it. And the idea came from, and I know you did this calculation, too. We bought a large apartment building in October of last year, 2020. The purchase price is 1.3 million. We add on the like around $800,000 of rehab. So total, what we were going to need to get the entire project completed was 2.1 million. And if you go to this investwithfcg.com website that I told you about at the very beginning, you're gonna go to the recent deals tab. You're the very first Property is the 384 unit in Daytona that we are closing on this Wednesday. Wednesday or Thursday, it's the 29th, so Thursday, closing on this Thursday. But the next two are Grimes and Pine Ridge. And it's going to tell you our summary business plan and where we're at July 2021, because we just updated it like last week, so you're going to see where we're at with those particular deals. But this is what gave us the idea. As we had lenders that have been lending with us for a very long time, we said, hey, we're going to go ahead and buy this apartment complex because it's part of this package. We really wanted these other deals. We're going to buy the apartments too. And you guys all know the story because we've said it many times, I won't go through it again. And they said, yeah, one of the lenders actually came down and visited the property. So it was really, really neat. And so they were going on an adventure with us. We gave them a great interest rate as a result. So we gave them 12% and said, hey, this is the first one. Thank you. You've been living with us for a long time. We're going to knock this out of the park. We have knocked it out of away at everything we did to a complex in terms of 100% turnover, 100% rehab, and now we're leasing them up. One building's at 50%, I think the other one's at 66.5% or something like that.

Just rented one over the weekend.

Boom. Yep. So we're doing like, we're just blowing people away because with COVID and with the eviction issue and with having to take an apartment complex and evict every single person because of everything that was. Yes. Yeah. Like, to do that all in the period of time that we've done is just like, it's remarkable. Like, and this is our very first time. And you know, you don't know what you don't know, right? You're just like, go, go, go, go, go, go. We have a 12 month balloon on these. Our private lenders trust us. Let's go, let's go, let's go, let's go. And we're just hammering, hammer and hammering, trying to get through this. But I had you do a calculation because this is part of the idea of like, look how much money that these lenders are going to make, you know, off of these buildings. And so I just had you do 2 million. Even though I think the total that we ultimately needed was 2.1. You times it by 12%, because that's what we're paying everybody on this deal. So how much interest are these lenders making over the course of 12 months? 12 months. That's it. 12 months.

$240,000.

That's a lot of freaking money. That's a lot of cheddar. So that's brilliant, right? That is such a huge, magnificent win for our private lenders and such a win for us. It enabled us to get into our very first apartment complex and prove that we could do it and do really, really, really well. Now that loan is going to end up being longer than we wanted it to be. I wanted to refinance out in October, so it was exactly 12 months. So like we do with all of our lenders a couple months before we have to pay that off. I'm going to say, hey, would you guys like to extend at the 12% or would you like to get paid off? And we'll pay them off if they want to get paid off. If they want to extend, which they always do. Yes, please keep paying me 12% on my money. Pretty, pretty please. So they always say yes, but we are Always prepared to pay people. If that's not true now with the fund, it'll be much easier because we can predict it so much better because we can say, hey, this is definitely, it's two years, that's when you're going to get paid back, unless you chose a three year, four year, five year timeline. So I'm super, super excited about it. That's a lot of money. That means it's a win for them. It was a win for us. It allowed us to get into apartments for the very first time and experience it in the future. We won't have to rush into it. So we'll actually get a bank loan, you know, to start, as opposed to using private lenders to be. Actually do the whole entire thing. But I just think it's pretty, pretty fantastic. I'm really, really super excited about giving our lenders higher returns because it's our most important relationships. I always say that most important relationships because they're the ones that have allowed us to grow as fast as we have because they trusted us and they continue to do business over and over and over and they're always going, do you have another deal? Do you have another deal? Do you have another deal? And now we're going to be able to use all their money more often and it becomes on us, right? So if there's $10 million in a fund, it's on us to use that $10 million because we're having to pay interest on it anyway, which is very much like our master notes. It's always like, use that money first. Use it.

Yeah. It's funny because like I said, this is not my wheelhouse. This is not something that I. The only thing I ever know about private money is when either we have too much of it or we don't have enough of it. Because either I'm. Either I'm buying too many deals or I'm not buying enough deals. But it's funny because, yeah, at the beginning it's always, you know, you know, I don't know if I should trust them, you know, should I give them my money? And they're very reluctant. And then there's this. I don't know what it's called, but they cross over this line, they go from that to my money's ready. Yeah, do you have a deal? Because I need. Can I wire you my money now?

Yes.

You know, so it's that maybe it's the trust level. Once they get over that trust level, the switch has been flicked and it's. Yeah, that's Very, very funny.

Yeah. And the other thing that we talk about a lot is they'll go, I've got $50,000, and then suddenly magically appears 100 more or $200,000 more or yesterday I got a phone call, I've got $640,000 and I need something to do with it. Do with it. I was just like, let me look at what we've got going on here. Ultimately it has to be a win win, but that's the trust that we've got with the people that work with us. And I'm so thankful to be able to continue to make it a win win. And I think that's why also that they keep working with us because doing everything in our power to not only continue to be that trusted partner that they have so that they can be earning good income on their money that's working for them while they're not having to do anything, but we're always continuing to try and figure out how we can do even better for them and continue to make it a bigger win. So that's the private money piece. I was very, very excited. Anything that you think we forgot?

Oh, my goodness, no.

Okay. All right, so I'm going to go into this. I'm not going to go into the entire report because it's too long. And this is. It's actually like probably eight pages of content, but I don't want to go through every single one. If you want to get it, you can get it, but you're going to get some high level overview.

It's a free download. It is when you go to the investwithfcg.com right in the right of the main page, right on the main picture, it says click here for top five ways, whatever the title is. And if you click there then. And it'll take you to the page, just fill in your information and that you'll get this to download and then.

Boom, you're gonna get it absolutely in your email. So we're gonna intro. Intro. So what I did here and what I think is really cool because we did it in our member the podcast we did. I call it now Real Estate war. Flipping versus turnkey versus Syndication. Right. And we were talking about everything that we put in blue was the positives of it. Everything. Yeah, everything in red was the. You know, this is not the fun part of this or I can't remember how I phrased it, but I really, really liked it. And so I created a scale in this report and it's a scale of 1 to 5. So that. Because when people talk about passive income, you know, there's tons of definitions. I even wrote some of the definitions here. I'll actually let you read like some of the. Just pick any definition in there that you want to say out loud.

So money you earn with little effort.

Yes. What else?

Regular earnings from a source other than an employer.

Yes.

Which is big. Oh, my favorite. I've used this one for years. Mailbox money.

Yes.

Making money while you sleep. And then this is the Kevin o' Leary making your money work for you.

Yes, exactly. Go out and get more children, little babies. So there's many different things that people say about passive income. What they don't say is that, that you typically have to do something. Something has to happen in order for you to earn the passive income. So as an example, you are going to buy turnkey real estate. That's, you know, that's kind of the core business model that we have here. Right. For freedom. And so if you do, you're going to have to take a look at the investment. You're going to have to talk to somebody on our team, look at the numbers, ask any questions that you have, ultimately sign a purchase agreement, go to title, get the lending, do whatever you have to do in order to close, arrange any inspections or appraisals or, you know, sometimes the lender's going help you with that, but there's steps involved of getting it right. So that's your upfront effort. Then once you have the property, it is being leased. And yes, property management's taking care of it for you. But if there's anything that's over, I think our reserve is $500. If it's over $500, let's just say the water heater busts. That's a $650 expense. What does that mean? Property management is going to call you and just let you know, hey, the water heater busted. You approve this $650. And so you're going to get charged that 6 cents. So you're having to get involved in certain things whenever you want to sell. Or, or maybe there's a turnover when a tenant leaves. We try to keep that to a minimum. Obviously we want them occupied for as long as possible. Cause that's the win for the investor. Right. Continued rent payments, somebody living in the property, no turnover costs. We really look at that because we are investors ourselves. Our properties are being managed by our property management company. So they, and we understand what we want to accomplish. But there's these little things that even Hi. Knock, knock, knock, knock on my door. Hey, Danny. So, blah, blah, blah, they'll tell me the story and tell me what's going on. I'll say yes. And then usually I go, can you go talk to Jeff next time about that? Because I don't want to be bothered by it. But that's part of the passive income. And so people don't really tell you what's the level of work involved with each piece. Right. There's websites out there that will say, top 14, top 21 passive income strategies. And they're going to go from real estate to Internet marketing to whatever, even your blogs or your YouTube channel. What do you have to do? You have to write the article every single week. Right. You have to answer questions when people are confident. If you have a YouTube channel, that's, that's, you know, building some passive income by referring other people. You have to record the videos. You got to host the whatever. If you got a podcast, you gotta. So there is work involved. So definition of passive income. This is where I'm going with this and why I created this scale. What I feel like people are missing is how much effort is required. So I want passive income. That is the least amount of effort required. I just want the money coming in every single month. I don't have to think about it and I don't have to do anything to get it.

Making money while you sleep.

Yes. So that's why I created this scale. So again, I'm gonna pass it off to you so they don't have to listen to my voice all the time and just read the scale as far as. So that everybody knows and understands what we're trying to accomplish in a report so that everybody can put their thinking caps on. Right. What kind of work am I doing to, you know, be able to get this passive income? And I think it helps people be empowered to make better decisions ultimately.

So again, this is a scale of one to five. One being the most work that you have to do to get your passive income and five being the least work. So number one, you are doing all the work yourself. Well, that doesn't sound like very much passive income. Number two, others are doing the work for you, but you are actively involved with rehab and large maintenance decisions. Number three, others are doing the work for you, but you are actively involved with large maintenance decisions. So it's gotten less.

Didn't have to make decisions about rehab. Right. To get that to that tier.

Three, number four, others are doing nearly all the work with minimal decisions required by you. So There's a little bit. So there, number five, others are doing 100% of the work for you. All you had to do was choose to participate in the investment.

Yes, please, yes, I'll take all fives. I don't mind the fours either, to be honest. And quite frankly, we do a lot of the threes. We actually do all. We do all of them because, yeah, we run the company and so therefore we do all the work ourselves when, when it does have to do with number one. But many times we're selling those other investors to allow them to be on a higher passive income rating. So again, the reason that I created this. Now keep in mind this report is about real estate only. It's our passion, it's our love. I don't want to be making money online building websites and doing, you know, we do these podcasts and videos to talk about real estate estate. Not because we're making money by having a podcast or doing this. Yeah. Apparently you can invite guests on, promote their program or an affiliate fee. Totally not my passion. Yes, yes. So this is just about real estate. So we chose the top five ways. And I actually said on the website, learn our top five ways to create passive income and to make money in 2021 or something like that. And I said our, because these are ours. We've bet, we've done it all, almost everything. Every article I read with all these 21 ways, 14 ways, I'm like, done it, done it, done it, done it, done it. I want to, I want to build wealth. Right. Long term wealth. And real estate is the way to go for that. So it's top five. It gets rated. So here's some examples of how they're getting rated. I'm not going to go through every single one. But for example, we just talked about private lending. So this is a perfect slide in the note and mortgage, our traditional way of doing private lending. I called that a 4. What's rating number? 4 again?

4 is others are doing nearly all the work with minimal decisions required by you.

That's right. So your minimal decisions are reviewing the funding packet, telling Tiffany, yes, wiring the money over to title and approving a payoff statement at the end. That's essentially all you're doing. But there's a little bit of work. Right. It's not 100% like all you had to do was say yes to Tiffany and everything's done for you. But the new fund, the master note that those two things are a five because you chose to invest in the fund, you chose to Do a masternote. And so you made one decision, one time. Wire the money, you're done. And every single quarter or however we work that out, depending on what's gonna work for cash flow purposes, you're getting interest, you know, paid out to you. And you don't have to do anything else. You're just gonna sit there and get that mailbox money. You're gonna be dreaming of my little doll dollars. And I'm not doing anything. That's a five. So I don't mind the four. Four is great. No mortgage, private lending is great, but five is really where I, you know, always want to be. And so that's what this report is doing, is really kind of talking you through what that looks like. So I will say that we put syndications on here. That's another one. That is a five, right? You choose one time for that 384 unit apartment complex in Daytona beach that we're closing on this Thursday. That was a one time decision. You reviewed the offering memorandum, you reviewed the ppm, signed it, you wired over the money. We're closing. And now you're gonna start getting quarterly interest for five years, right? You're just letting your dollars work for you, earn more money and come back. And Kevin o', Leary, I'm gonna remember the children line forever. So that's another five. So brrrr. Like everybody in real estate knows brrrr, right? Buy rehab, rental, refinance, repeat. So everybody understands it. If you are an investor who is doing brrrr right now you're at a one.

Yeah, that's a one again. You are doing all the work yourself.

That's right. You're going out and you're finding the property, you're building a scope of work, you're finding the contractors, you're managing the rehab, you're renting the property. And then eventually you're going to be able to refinance. And once you refinance, you get some money back and you do it all over again. That's a lot of work. And in this report I talk about the fact that, that most of the people that we're working with, they're busy professionals, right? We always say that who is our avatar, who is the person that listens to us, wants to work with us. And it's busy professionals who are out there who understand the power of building wealth through real estate but don't have time to do it themselves. They don't want to go out and do that. They understand brrrr. They like brrrr's Great. That'd be fun. I don't have time to do it. So we created a done for you brrrr program here. Freedom Real Estate Group. We call it Equity Advantage Series. But it's not a level one because you're not doing it. You're using all of our res order to gain some equity. But I still put the brrrr at a 2. It could be a 3, but because you're going to review the scope of work and decide what you want to do, then you are making some rehab decisions. They're small, but I would put it about a 2.5. I know I was actually. I woke up in the middle of the night going, I should have made that a 2.5. Like it's so small and like. I don't want to call it a two, but. Yeah, go ahead.

No, I was just gonna say. Cause yes, it's still. It's the Gosh. Trying to think of the right word for this. It's the bur. Oh, gosh, I can't even think of the word.

I call for a Done for you. Brr.

Done for you. Brr. Yeah, yeah, there you go. It's the hybrid. That's what I was trying to think of. It's the hybrid. Brr. Because you're still doing the brr. But you've got help.

Yes.

You have assistance.

Yes. So kind of like private money lending. And maybe I should really kind of think through that because maybe it's more of a forbe because it's minimal decisions, because you're not doing the work. So here, let's just walk through it and maybe I'm gonna change my mind right now. And before this report even gets published, I'm gonna Change it to a 4. So we're finding the property. All you're doing is choosing to buy it. And if you choose to buy it, we're gonna create a summary scope of work. You're gonna take a look at it and choose what you wanna have done. And then we're going to make it happen for you. And then once it's done, our property management is going to tenant the property for you. And then again, same back to a turnkey. You're just making large maintenance decisions, which you should at any point in time when you own an investment, it's still.

More than the original brrrr. Because now you're paying for the property. And then once you decide on the rehab, then you're paying for the rehab.

Yes, there's a few other. Yeah, there's some wire Transfers. There's a wire transfer to buy it. There's the wire transfer to be able to pay for the rehab that we're gonna do.

Some lenders where it's taken like three, four days just to get out one wire every time. So that could be a lot of work depending on how they need to move their money around. But yeah, no, it's more than the normal brrrr.

But yeah, it's less work than the normal brrrr. You're not doing it all by yourself.

Yes, correct.

Yeah, we're doing the heavy lifting. You're making some decisions and wiring funds to us, which again, you had to wire funds for the private money thing. So I'm really. Now I'm going to go back and you. And I think you're going to hash these out and just make sure I rated them what is, you know, appropriate for it. But anyways, that's what you're getting from this report is you're. And you're getting the layout. Like I even said, typical brrrr requires the investor to do all the work. Find the property, create your scope of work, what you want done to the property. Find and hire the contractors. Rehab the property, manage the rehab, Find a tenant to lease the property. Once it's leased for the appropriate months of seasoning required by your bank, you can refund now repeat the process. So that was seven steps. Yeah. And it's a lot of work. But if now we're doing it for you. Now I put here's how it works. We're going to find the property. You're just going to choose. Yes, that's the one I want. We're going to create the summary scope of work. So you didn't have to do that either. So we found it. We create the summary scope of work. All you do is choose what you want done. Bulldog Renovations is going to manage the rehab and then we transition the property to property management. Unless you plan to manage your. They'll lease up the property and then you get a fully rehabbed tenanted property with an equity advantage because you put yourself at the front of the line to do a little more work for a greater upside. So I put it like this. Asterisk, bonus equity. So even though you're doing a little bit more work, you've got that equity piece in there. So you might have like, I don't know, saved $10,000 because you decided to make a few more decisions by getting yourself to the front of the line. Because we have a waiting list. Right. For turnkey Properties. And that's why turnkey was number five. And I only put it as number five because, because of the waiting list, I'm like, you know, it's so hard to get a turnkey property. Everybody wants a turnkey property because it's 100% done. For me, it's the easiest little. Let me find that red button. Easy. Now I own a rental property that's cash flowing completely and, you know, fully rehabbed, where a little bit more work with some decisions up front, puts you at the front of the line, allows you to buy a property and maybe, you know, get an extra 10,000, 6,000, 15,000, what the numbers end up working out to. But anyways, that's what this report is about. And I really think that, well, number one, we're going to talk about the ratings again one more time before we publish it. But if you guys want to see the report, you can even chime in about whether you like the rating system and if you agree with it to let us know what you think. But again, go to investwithfcg.com and, you know, get the report. I think there's a lot of value in there. One of the things that I put in here, and I want to talk about this real quick, is bold on every single one of the top five I put not everyone deserves your trust. Do your due diligence. Every single time I wrote about private money lending, syndications, whatever the number was. Not everyone deserves your trust. Do your due diligence. And I say that because so many people work with us and it's because they've been successful, they do trust us. And I'm on the phone going, this is a trust based relationship. You have to know me, like me, trust me. I give you videos out there, giving you access to the people that I work with and their names, their phone numbers, their emails, call them, vet me. Do it because I'm telling you to do it. Because Joe Schmo over here is gonna sound like they know what they're talking about and they don't and they're gonna screw it up. You're gonna have a note and mortgage on your property that you're gonna have to foreclose on because they mismanaged the rehab, they mismanaged the financials, they did something crazy. You know, you should be asking questions. And in the reporter, I, I even write down questions that I'm like, you should ask these questions of me. You should ask them of everybody that you work with. Because I've even been on Facebook and I went on a little rant maybe two years ago. And Keith Weinhold, who I do some podcasts for, he actually looked at it and he was like, I'm writing this down. Cause we're gonna talk about it in the next podcast. And it was literally because I saw somebody else post asking for private money. And I knew the guy, and I was like, he has lost so many people money, and now he's publicly asking people to trust him and do stuff. I'm like, he's gonna lose your money. Anybody who, like, looks at that and thinks he knows what he's talking about, he's about to lose your money. And how do you tell people that? Like, and so all I can do is vet, vet, vet, vet. You know, not everybody deserves your trust. Know who you're working with. Vet them out and do it to us as well. Because I think it's really, really important. It's easy to lose money trusting the wrong person. And I've heard too many bad stories.

Yeah, I remember you telling me that we had somebody that wanted to be a private money lender, and they. They had said that the last person that they did it with, they ended up getting their money back, but no interest or something like that. And I was just like, seriously?

Yeah, yeah.

Like that actually happens. Yeah, it's just. That's crazy.

And I think I told that person, I was like, I'm thankful that you got your principal back. You know, that's. I had people, I lost money. I did not get paid back. I had to go through foreclosure. Joe, one of our lenders out of New York, he's had to go through the process of getting his money. Money back from people. Yes, exactly. And he's just the sweetest man. But, like. But he's more of a professional, too. Like, he. It doesn't matter, but he had to go through the process. And I've heard people saying, I lost money, I lost money. And, you know, it's really important that I'm asking these questions. I hope you're okay with answering them. I'm like, ask more of them. I said, you should be asking these questions, questions. And I'm sorry that that happened to you. It will not happen with us. It never has happened with us. You can vet me any which way possible. One person recently said, I'm going to want to invest a large sum of money with you before I do. I really want to talk to lenders of this scope and magnitude that invest the same amount and have been doing so for a little while. And I was like, I've never given private money lender information out ever. Like it's, that's private. I'm not going to hand out a name and phone number. Yeah, especially a high net worth individual who does loan us large sums of money. So I said, you know what I will do though? Because I get it and I tell people to vet us. So I'm like, okay, this isn't a bad question. It's worthy of us answering. So send an email to our private lender database and say, hey, we've got a lender that's going to invest a large sum of money with us. He'd really like to talk to somebody else that's doing the same and has done so for a while. If you have done a deal with us before, can you reply to this email and say, yes, I'd be willing to talk to him. Therefore giving us permission to give this person your name and phone number so that they can contact you. We had so many replies. I was like, yes, yes, yeah, yeah, it was fantastic. But that just, we're just trying to hit home the vet, vet, vet the people that you're working with because we don't want anybody to go, hey, Danny and Flip, they talk about private lending, they talk about syndications, they talk about turnkey, they talk about brrrrs. You know, I know this guy, he does it too. I'm gonna go invest with them because they gave me the confidence to do so well, vet that person that you're going to go do that with. So that's what I want to make sure is that we're not providing so much confidence that you just go out and do it with somebody without doing the due diligence. You need to know who they are and how much experience they have and all the other questions that I put in the report. What are we missing? Flip?

Oh my gosh, you kidding me? This is awesome. You managed to get all the way through and like you said, we're gonna go back through this to see if you wanna change anything.

Yep. Before we upload it today. We were gonna upload it after it. Got proof, Fred?

Yeah. But no, I think this is great. This is awesome.

Awesome. All right, well hopefully we provided some value to everybody today. It's valuable to us. That's why we write about it, that's why we talk about it. These are the things that we're searching, you know, to do and we're evaluating all the time. It's like how much work is that going to be and how much money am I going to make? And is this investment better than this investment? And we're always doing that type of stuff, so I just love talking about it and I love making it easier for other people to be able to make, you know, be, feel empowered and educated to make, you know, good decisions about real estate investing and their future and everything else.

That's right. Again, that website, investwithfcg.com.

That'S right. It's launching this week, so yay. I'm just so proud because I want to go dive into multifamily now, but the website had to get finished before I did.

That's right. All right, well, we hope that you enjoyed this podcast. Our podcasts are called Real Talk, which.

Is real talk for real estate investors.

That's right. And we also have our vlogs out there, so make sure you catch our vlogs as well on all of our channels. YouTube, Apple, Spotify, MySpace vlogs are just on YouTube. Okay.

Anyway, stop saying MySpace.

You don't have a MySpace anymore.

No, I bet I do. It's just out in the wilderness. Anyway, okay, so we always like to end our podcast and vlogs with invest, Smart, Live, Happy. Bye, everybody.

Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on this show are not guaranteed. All investment strategies have the potential for profit or loss.