100% Financing for Fix and Flip with Zero Monthly Payments

Hey everybody, Toby Potter here, Global Integrity Finance. Today we are in Dallas, Texas, here at LeverageCon. What an amazing day. We're about to wrap up the day. Over 500 people registered. I don't know how many vendors, Clint. Tons of vendors, uh, lenders, appraisal companies, valuations, attorneys, title companies. We've had everybody in this seat right here talking. But here right now, my good buddy Clint with Life Changing Lending— Life Changing Lending— is here to talk about how he can enhance your ability to fund deals and to be able to make a difference in your portfolio grow your business and impact the industry, move the needle. That's what it's all about.

Amen. Yep.

Thank you for being here, buddy.

No, I appreciate it. Thank you so much for letting me be here. So we've been in the business I've been in for 27 years. Me and my business partner, Ryan Jones, started it 3 years ago. We had our old boss come to work for us and 40 loan officers followed him because he was so respected in the industry. We call him the GOAT, Brian Cunningham. He's an FHA underwriter. So we're the bank on FHA traditional. Altred Loans nationwide. We see where everybody gets their money. We, we keep people from getting caught up in those teaser rates with the overlays that they'll never get to the funding table. So, so we give them the lowest interest rate. We know we're going to, uh, get it. We have Mortgage AI that helps us go from a 30-day loan to a 10-day loan. And, uh, we, we just goes like— we literally could give the link out on Friday, come in Monday, and the system has this approval with, with DU. That's only on the traditional side. And then on, we have nationwide, uh, private money fix and flip loans where we could do 100% finance. You got to have 4 experiences in the last 36 months, okay, and a 680 FICO score and above. But we could do 100% financing, no monthly payments for 12 months. And in Texas, we, we offer our own gap funding that we're going to go nationwide. So we, we get our investors a 20 to 40% return annually. And what we do is we fund the down payment and the closing cost for an experienced investor that finds a good deal that makes sense. But instead of them having $80 grand in the bank and they have to tie up $50,000 of that into the project, we'll fund the $50,000, keep them liquid so they can't just do one project, they could do 2 or 3 at a time. And now they're able to scale instead of being able to fund one project, wait for it to finish, find another one, or first of all sell it or refinance it, find another one, and then keep their contractors busy somehow.

Right, right.

We help them do that. And then on DSCR, we're the bank nationwide, 75% Lowest industry, lowest interest rates in the industry at 75% leverage, but we could do 80% cash out with no seasoning.

Yeah.

So not only can we do the fix and flip loan, but as soon as they're ready to rehab and they want to hold it, we could do it at 80% cash out. That extra 5% cash out. We are the riskier. All these lenders out here, they're, I call them my frenemies. We fund all the deals that they can't do or don't want to do. We fund them. So they, I know everybody, they send me business. We send them that we, We gap fund their projects.

Yeah.

So if they have a deal, they call me every day. I funded 6 gap fundings in the last 2 weeks. They're experienced investors. They just— they don't need the money. They want the money.

Yeah.

They don't want to put money down. And then we partner with some of the phenomenal ground floor where no monthly payments for 12 months. We'll gap fund the second. No, no payments on first. No payments on the second.

Amazing. Talk to me about your DSCR. So, yeah. So is that a Fannie Freddie backed Neil, since you're keeping it, so you're rolling into securitization yourself?

No.

Okay.

We have, we have a warehouse line that we funded. We, we, we sell the notes so we can keep loaning the money out. You know, $25 million, $50 million sounds like a lot, but that money can be out in 30 to 40 days.

Oh yeah.

So we have to sell it. So we let someone else service it, but so we don't keep it on our books for more than about 10 days.

Okay.

But we use our warehouse line, we fund it. We already know who's going to buy the notes. So we're very good at it. I've been doing I've done this for 27 years, but for 14 years I've worked with all these guys. I know what their niche products are. I know what they're good at. So people, it's a one phone call. They call us. We know exactly based on the project they bring to the table, based on their, uh, estimated FICO scores, their, their experience, their liquidity in the bank, the property of the location. Is it rural? Is it not rural? Is it, uh, ITIN borrower? Is it US? What state is it in? We know exactly where it needs to go within 5 to 10 minutes of looking at it.

Awesome. Awesome. So when you're working with clients— yeah, let's say you're working with the guys out here.

Sure.

They're getting a lot of their business from brokers.

Correct.

So there's points coming from the broker on the deal.

Sure.

And then when, when they bring it to you, they got their points. So we're almost got a daisy chain effect going in here.

We do.

How do you work through that? That's not charging the borrower 6, 8 points.

Great question. We never want to do that to the borrower. Yeah. Okay. So what we do is we realistically say the reason why you came to us is because you can't get it done.

Right, right, right.

We'll get it done, but we all need to be reasonable so we get business. Then if we fund it, if a client tries to come back to us, we're direct lender. If a client comes back, we say, I'm sorry, you're Mr. and Mrs. Broker's client. You really need to go to them. We're just the underwriter and the lender, so you need to go to them. But I promise you, they're going to take care of you and they're going to make sure you get the best product. So we keep that relationship strong with all of our referrals, but we do work with the public directly. And we, we get a lot of our business from brokers and other lenders.

Do we have to go in there and kind of skinny down the points to make sure we're not overcharging? Yeah, we do.

And that's a great question because we don't get it very often. We usually get— I just saw one for the first time where there was 4 people being paid on it and everybody had to get a little skinny to make it make sense to the borrower. And I had that talk with them. Everybody was reasonable and they understood. They came to me because 5 other investors couldn't do it. They need us and we funded it. Yeah, yeah. I funded a deal today. They're 3 months behind on their, uh, they've had the project for 2 years. They're 3 months behind on their payments. They're $27,000 behind on their property tax. They've got a 640 FICO score. They're in a hard money deal that they owe them 2 points on the back and they had to bring $70,000 to the table because of my creativity and the been in the business for long, for as long as I have, I talked to everybody, I made everybody understand, I, I made things work, and I literally got them to the table with no money down, funded the deal, and they're not gonna have payments for 6 months. And they pay— I paid off the first lien, the second lien, and their property tax that they haven't paid in 3 years.

Crazy.

We— but you know what?

But you're investing in people.

Well, you are, and I appreciate you saying that. We've literally had 3 loans that have gone bad in over 1,000 loans. So we're really good at vetting people.

But you're vetting people and you're investing in them, and not everybody makes all bad decisions. That's right. Shit happens.

It does. But we literally have liquidity that we can get them out of that.

Yeah.

You know, we talked about bailout loans earlier. Yeah, yeah, yeah. Look around. Mid-construction, they got in for whatever reason, they ran out of money, they didn't vet the project well enough, but it is where it is. We literally get them out of that, get them a new loan, pay off their existing loan, get them the money they need to finish, and then we get them to the table and then they become a client for life.

Well, now they're grateful.

They're so grateful.

But now they're grateful and like, holy shit, everybody else had given up on us. I was starting to give up on me. Ran into Clint and his team and they believed in us. By God, I'm going to make this happen now. We put a new spark in them.

And it does. It gives people hope. It gives them a chance. And here's the thing. That same project, they're gonna put it on the project. They're gonna spend about $50,000 rehabbing it. They're gonna put it on, it's worth $1.23 million. We're loaning 75% of the value as is right now. And we gave them $50,000 so they can finish. It's gonna be worth $1.2 million. It's gonna take them 2 months to finish.

Yeah.

They're gonna get back on their feet. They're gonna have $300,000 in the, in the bank.

Yep. Yep.

It's all they needed was a little help.

Fresh start. Yep. A fresh start.

And they're a well-loved investor.

More of a restart.

It's a restart.

Restart. Yeah.

They, they've lost so much money over projects, but this one makes sense. We, we buy real estate, me and my business partner. We know what they go through. We have the same challenges. We, we have the same obstacles, the same permitting issues, the same funding issues. We use our own loans for our own project.

Yeah.

And if we could go anywhere, if we use our own, that tells you we believe in what we're doing. Right. And we're, we're done. And hell, I don't wanna make payments for 12 months while I'm rehabbing a property.

I don't have to worry about it.

Yeah. Yeah.

You're right.

I've got, I've got, I got contractors I gotta pay. I got draws I gotta deal with.

One of the biggest fights we have, and you bring that up, one of the biggest fights we have is our servicing company not drafting payment.

Yep.

I hate it. And we're like, we gave you the ACH. Oh, well, we didn't get it. Well, here it is where you was in your— it's the biggest fight every month. We have to go through and show or reload ACH draft forms like, well, we didn't draft this month. Why? You know, whatever reason, right? When you eliminate that, you eliminate the friction, right, with between us and the client, because our clients are like, you got to be kidding me, because it reflects on you. Yeah. Oh, it comes right back on us. What if somebody didn't give a rat's butt? But now the client's pissed because you know what? I gave Global that still. Now they're bitching and yelling. Now we got late fees. Now we got all this. There's so much friction there, right? That it's not— no good comes from it.

Correct.

I love the fact that we can go 12 months without payments, smooth it out. Make it frictionless and sticky.

Yep. And we'll fund 100%.

Yeah.

Just give us that you have the experience and ability to show that you've been making your payments. And 680— we funded a client today, or it came in and we're about to fund it this week, but he had a 640 FICO score because he's using his personal credit cards.

Max them out.

Yeah. You know, we have all those clients that do that. We get them out of that cycle. Say, stop using your personal credit cards because if you want to hold this and you want to be a long-term gamer, You cannot be using your FICO and your, your FICO score is going up and down. We need that to get you, you know, a 6.99 on a DSER rate on Cash App.

Yeah, yeah, yeah, yeah. And this is where also where we would go in and coach them. Quit using personal, right? Go get you a business card, right? And start using it so it doesn't reflect on you.

Amen.

Yeah. And so working through that, educating, informing, mentoring, coaching that helps move that needle.

And we, with the gap funding we offer, we want them to stay liquid.

Yeah.

If we work with one of these investors on the deal on the first lien, it might be their client, might be our client. It doesn't matter if their project fits better with their loan product. It makes sense. And we always do what's right. It, it, it could be our in-house product, but if we have an investor that makes better sense, we'll go with them because it's best for the client. But when we use our gap funding, it keeps them liquid. What is the best for our clients to finance a project? Yeah. When they're liquid, they have the money. If things come up and they need the money, they're not using their personal credit card.

Just like when we talked in there on the platform, that guy said, what if you have a contractor who needs 30% upfront? Well, if you provided them 100% financing, all that, and they've got liquidity, now they can do that.

Amen.

Now they can do that. And maybe negotiate, hey, we'll do 15% upfront.

Exactly.

And so we got, you know, we kind of make a happy medium there, but we're not strapping our client and we're not irritating the contractor.

That's correct.

I love it, I love it, I love it. Where do people find you, Clint?

I appreciate you asking. I'm Clint McKinney, one of the owners of Life Changing Lending. You can call me or you could email me at Clint with the K, Clint@lifechanginglending.com, 512-470-1807.

All right. Hey guys, again, some stout stuff right here. Stout stuff. We're going to get with this guy. We're going to get doing business with him. You're going to see a lot. I'm going to go to the— where's your office?

Round Rock, Texas, right downtown Round Rock, Texas.

We're going to go there. We're going to meet with them. We're going to see how legit these guys are. Because if we're bringing them on to global, then you guys need to get involved with them.

That is one thing we'll do is back up everything we say.

That's right. And that's what's important, especially in today's situation, today's industry, the volatility of real estate. You need partners you can trust that not only say they're going to do something, but they back it up. Amen.

Okay.

Clint, thank you so much, man.

I appreciate it. Thank you for having me on.