The last thing I [ __ ] want to go do is like back to my Houston job in a cubicle. Like, >> yeah, >> it's just you out here and you've been able to uh bring in, you know, $100 million worth of volume here in Houston. I also want to give a quick no and not waste anybody's time. don't want to waste appraisal money, you know, like absolutely will pass on a deal if I know the

value is not going to hit or if the DSCR is not going to work or if there's something about it, I'll say, you know what, here's how it works with us. And in order to scale quickly in real estate, you need to have speed and convenience, right? Like, how can I get out of this? >> Yeah. Do you want to do this? I was like, "Of course." He was like, "You don't have to go get a

license." You know, he's like, "I know." He's like, "This is, you know, full full commission sales. Like, you know, if you want to do it, you know, you're not getting a good paycheck unless you close stuff, right?" One of those things. And so, I was like, "Yeah, look at that, too." >> Welcome to another episode of Pick Up the Phone podcast. I am your host, Jose. I am the founder of Get You.AI, the only production voice

AI with emotion detection. It's not artificial intelligence, it's emotional intelligence. Today's guest is Andrew F. Uh Andrew F is uh one of the top five lenders in Houston, top one or two in the states. He's closed over $100 million of volume in Houston alone. Um and I think one very important uh distinction about Andrew is that he can do uh one for but more importantly five plus multifamily um for DSCR loans. So I think that really

sets you apart, bro. Thank you for being here. >> Absolutely. Thanks for having me. Absolutely. >> It's a little surreal being here. I've been watching the podcast for a while, man. It's really taken off, man. I appreciate the invite, >> dude. I'm so happy to be here, bro. >> I know it took uh it took for it took me a minute to get here, you know? I was like, I don't know if I want to do

it, but yeah. No, man. Thanks. Uh thanks so much for having me, man. >> Absolutely pleasure. Absolutely. So happy to be here, man. So, um dude, let's uh let's jump right in, dude. Um you know, who is Andrew F? You know, what do you what do you do for people? I I we've done some deals together in the past. So, uh it's kind of like a a full circle moment here, bro. >> Well, I'll uh I

guess I'll take it back. Um I'm from here, from Waller, actually. So, it's my backyard. Born and raised. Um high school here, >> went to Sam Houston. Um went to college here. >> Um you know, bounced around a little bit. Uh well, I didn't bounce around like a after graduating high school. Actually, was in the oil and gas industry for a while. >> Oh, yeah. >> Not really knowing what else to do, you know, from Houston.

you know, you kind of just are told, you know, you want to make some money, you go to oil and gas. You know, it's kind of all I was all I ever knew. Um >> I um >> what you do in oil and gas, >> a bunch of different things. It just it took me a while to figure out that it wasn't a fit, you know. So, I was in oil and gas for about eight years.

Um and uh you know, had I think three or four different companies kept jumping around like trying to find the perfect fit and then finally realized, hey, it's probably me. It's probably not all these different companies, you know, it's probably me. Um but it was it was a really cool it was a it was you know looking back it was a really good experience. Got to live in you know different places in the US. um actually

got to live in South Korea for a year as an expat which was an incredible experience but um you know I always wanted more you know for myself and always >> you know always was ambitious but didn't know what to do you know you know um you know kind of back in those days real estate wasn't really talked about as much as it was today you know so >> right >> I remember when I was in

college um I worked at Gold's gym in College Station and uh somebody one of a member came in like sold memberships and stuff, right? Like >> and uh it was a real estate investor. He came in and I got to know him like sold him a membership or whatever and uh he was like, "Yeah, I own a bunch of homes or whatever." So like I was like, "Oh, that's really cool." You know, I've never heard that.

So like it's funny like looking back that planted the seed >> Yeah. um of you know the possibility I guess you know of being an investor being in the investment real estate investment space and >> um and that was 10 years prior before I actually got into it but I just it it's it probably got you know was my first thought of like oh that would be something cool and like I found out about it I

guess. >> Yeah. Um but and so you know going so we going through we we lived in Korea. Um I like I proposed to my wife like super quick when we lived in Houston really before they like as soon as they offered >> the South Korea gig they they're like hey well if you want to bring anybody or you want to bring your girlfriend like you got to show us a marriage license so that she can

be included. So, I proposed to my wife, um, my girlfriend at the time, and we went to >> How long How long were you guys dating? >> It was 6 months. It wasn't like super super short, but it wasn't, you know, and so, um, >> when you know, you know, right? >> Yeah, that's it, you know, 100%. You know, so we uh took an RV trip and I proposed out in like the Davis Mountains, >> um,

in West Texas. But, >> um, and at the time, you know, oil was doing great. I kind of thought I might be like an expat for life or for a while. And then oil crashed and we got sent back home after a year and I was like the last thing I [ __ ] want to go do is like back to my Houston job in a cubicle. Like >> we're not doing it, you know? like I

just you know so I started uh so we moved back and I immediately started looking and I took another oil and gas job but it was like an outside sales >> and the whole intention this is like pre-kids but the whole intention was like I got to go find something to gives me a little bit of autonomy a little bit of a freedom to go >> see you know like maybe and and I don't even know

if I was thinking about real estate at the time but you know just to give myself a chance to go do else. Give me some time. Um >> yeah, >> because my very first job out of out of college was that so I kind of knew the role and you know kind of the day-to-day stuff. So >> yeah. >> Um and I so took that um and uh I had some I actually met some friends um

who became friends uh who did real estate investing >> um and we were kind of both in the same spot of like we want to do this like how do we do it? let's just work together, figure it out, you know, like, you know, just like, so we started, you know, this is like on the investing side, like not even, you know, it's it's so funny how it ends up leading to what we're doing now with

the lending, but >> Yeah. >> So, we started just like cold calling um pre-forclosures. >> Oh, yeah. >> Like sub sub two deals. Like we just found like these list and >> um >> like how long ago was it? >> This was 2016. >> Probably 2015, 2016. >> Right. right before Harvey hit. Huh. >> It was Yeah, probably. And uh >> um and and so yeah, we were doing it together and like he would take a

list, I would take a list and we would just like no idea on the list. >> We had no idea what we were doing, you know, we just wanted like we just wanted to do something and we thought it was a great idea and uh >> so um >> so that and I continued to work my job, you know, I'd go home um and I would >> still in on guest >> still Yeah. and I'd go

home and I trap myself upstairs in one of the kids uh bedrooms and I crank out calls for an hour >> and uh >> and so you know sort of successful I guess you know just it got me into the game I guess started you know taught me the lingo and like how to structure deals and how to look at deals like what is ARV you know like just just all the normal things that we know

now you know and so >> right >> did that for a while and um and then ended up, you know, doing some uh of my own, you know, basically just started getting into like some some flips and rentals and kind of doing stuff on my own. And you know, kind of to fast forward is still doing my job, still doing this stuff, but then I started to pick up some projects on the investment side >> and

um >> I wasn't focusing on my job too much, you know, and so like that, you know, so I end up getting fired, which I'll get into that in a second, which is a complete blessing in disguise for my oil and gas job just because I wasn't doing it, you know, rightfully so. >> Yeah. But um as I as I started to buy and meet lenders um one of the guys that I was talking to was

kind of like hey you know and he was doing these DSCR loans. I was like you know this I was like remember talking to him as I built a relationship with him after a while. I said hey you got a really cool thing like you just deal with investors and you do these loans. I was like that's really cool you know and again this is you know >> seven eight years ago >> right >> not as

well known as maybe what it is today. And uh he goes, "Well, I can get you a job, dude." >> Yeah. >> He was like, "This private money, you know, it's kind of the wild west." He's like >> um you want to do this? I was like, "Of course." He was like, "You don't have to go get a license, you know." He's like, "I you know." He's like, "This is, you know, full full commission sales. Like,

you know, if you want to do it, you know, you're not going to get a paycheck unless you close stuff, right? One of those things." And so, I was like, "Hell yeah, I want to like of course like >> take on like I was so like I was like, you know, open to anything sort of." >> Yeah. >> And so, I started doing that. Mhm. >> Um so I guess I guess I kind of got away

from like trying to find my own deals and I started to call um to pick up borrowers, you know, from a lending perspective. Um so that's I did that for I don't remember how long, but that's when I got fired from my oil and gas. Mhm. >> Um, but it wasn't honestly it really wasn't that stressful because it was it was probably it was probably probably wasn't a year, but it was long enough to know that

I was comfortable with what I was starting to build in the lending, you know, like a loan originator. >> Um, so I did I was continued to do so then I was full-time. Then I went full-time lending as a loan originator and um basically, you know, probably did that for a couple years and a head hunter on LinkedIn actually saw my profile um who was recruiting for Renovo. Yeah. For Renovo Financial and uh said, "Hey, we're

looking to >> here's all about the company. We're looking to start a Houston office. Um are you interested in talking looking to have a conversation?" I was like, "Sure, of course." you know, um, >> you know, at the time didn't ever, you know, hear the Renovo's name. We had just started a Dallas office about a year prior, so we were just entering the Texas market from >> our headquarters is out of Chicago. >> Um, but Renovo

had been around for maybe 10 years at that time. They were very, very slow at their growth, very intentional. And so they were, you know, we're headquarters out of Chicago and we stayed there >> for probably, I think, the first eight or nine years and didn't leave that market. And so it was, you know, looking back, it was really smart of them to say, >> "We're going to master, you know, this market, get the infrastructure set

up, and we'll look to expand." And so they they came to h or they you know I don't know where they branched out to first but they found um you know my boss who uh opened up Dallas. >> Yeah. >> And then he you know he he ran Dallas for a little while and then he you know started grow you know open up the different markets and >> Houston, San Anton, Austin you know another person in

Dallas. And so um so yeah so this guy you know he found me on LinkedIn and started that and that was uh I just hit five years five years at Renovo. >> Nice here here in Houston. So nice. >> Um congrats. >> So that's that that's a little bit of the back that's a quick backstory from >> you know from from oil and gas to to where I am now. >> That's amazing >> dude. So um

so someone found you on LinkedIn. >> It you know it's um you know Lord works in mysterious ways. you know, one of those things, you know, you just Yeah. Like, >> and you know, most most of us would probably just ignore it, you know, like ignore the message, you know, not thinking anything of it and whatever made me at least reply back to him. >> Um, >> I did and, you know, just started the conversation and

Yeah. Yeah. Yeah. Yeah. kind of. >> You ended up you ended up being the guy for Renovo here in Houston now. >> The We've Yes. I mean, I am the only Yeah. I'm I'm the only person here. Like we we've had a couple people here and there. Um >> but I was the first hireer to open up Houston and um >> still here 5 years later. >> Yeah, that's amazing. And I think that's pretty incredible, Andrew,

because, >> you know, it's it's just you out here and >> you've been able to uh bring in, you know, $100 million worth of volume here in Houston. And of course, you know, there's some leakage from other markets, right? Sometimes some of their sales guys will, you know, like you mentioned earlier, you know, some of their guy sales guys will >> be in Dallas and maybe close a deal in Houston, but, you know, I I'm sure

that happens. So, you only pretty pretty rarely, I'd say. >> Yeah. We um, you know, kind of going back to how they started the company of, you know, we have a big philosophy of local presence. >> Yeah. >> The boots on the ground is what we kind of always say. And so, I got hired to focus on Houston. This is my market. go meet, you know, clients, know them personally, walk the projects. Yeah. >> Um, so

>> we, you know, we are it it's sometimes, I guess, allowed to do some stuff in other territories. Um, >> but it's it's kind of few and far between. It's like, you know, they they hired me to to do Houston only. So, so yeah, I mean, there there's sometimes I've done stuff and >> even out of state, you know, um because the place I came from did like was nationwide lending, so I had some contacts, you

know, like Atlanta and >> South Carolina and so >> um so every one every once in a while still do some things and some of the other guys will do stuff in my territory for sure and that's fine, you know. I mean, we have like a whole process of how that works, >> right? Um, but yeah, primarily it's uh it's it primarily it's definitely me and uh it's kind of always been >> nice. Love that. >>

What I really love about your uh company, Andrew, is that you guys have, you know, just like the right people just uh taking care of the entire process, the entire loan process >> um from the uh underwriting to the origination, you know, like you guys have now a servicing team, you know, like everything's in house, right? and it just allows for things to just like flow quickly, easily. Um, you know, DSCR I I feel like it's

not some for the multif family space. There's not a whole lot of DSCR lenders, right? I mean, I think you you're probably like, you know, one of the number one for that here in town. So, >> I think that's really set you apart. Also, >> um, what what would you say also is like setting you guys I mean, you you've grown exponentially right here in the last 5 years and it's just you. So, I how do

you think you had a a part in that, you know? >> Well, it's a lot of things, right? Um, I guess going back to your first comment of, you know, we're we're we're very intentional about customer service. Um, and so, you know, there's no call centers, there's no like who who am I dealing with this time, this this time on my loan. It's like it's always us. It's always me and my team, you know, it's always

the same >> pod, you know, of like of anything that we do, it always runs through us. >> They get to know the bars well. Bars get to know my team well. Even though they're everything kind of goes through me, they know exactly how each person's role, what to expect, the processes, who steps when when, when somebody exits, kind of like, you know, as we get through the process. Um, but it's it's really it's really a

it's kind of it's been a referral based business growth, you know, you know, it's just like >> Yeah. It's crazy. >> It's you know, my philosophy is like do the best job you can. >> Yeah. >> With every single loan >> and hope maybe they go tell their friends, right? you know, and and the word, you know, it's it was a very organic, you know, kind of growth and, you know, it's tough for a while and

it's still it's still hard because there there there are a lot of DSCR lenders. There's not a lot of low, you know, we're a little bit different in in in some ways, but there's there's still a lot of competition for sure and there's still a lot of people who don't know the Rena name. Um >> yeah, >> but um you know it's it's been you know it's been a a slow growth but you know kind of

a very you like I said organic and intentional growth of just like >> do you know >> do as best as you can on every single loan. Yeah. you know, and try to make the loan structure and the experience as best as you can, you know, with each borrower and, you know, see where it goes, you know, like one at a time sort of thing, you know, and uh there have been >> Yeah. And so that's

kind of, >> you know, that's that's >> how we've been able to to build the business. >> Can you tell me a little bit about um like your your team? You said like your team, right? So like you have uh uh do you still have Ashley? >> Of course. Yeah. >> So everything everything starts with me as far as >> Yeah. Walk us through like the long process, right? So so every you know >> you know

I'm the one who I'm the one who again I'm the only one in Houston. So like my team is you know a couple are in Dallas, some are actually out of Chicago. So like but every everything starts with me as far as like hey I have this opportunity you know what whatever the loan type is. It all comes through me as far as like walking through like here's what it is here's the purchase price. here's this

or that or here's like what I think it's going to appraise for for the DSCR here's the you know just all of the all of the details and it's just so I'll just go through and just make sure and you know and then part of that process is like okay what are you hoping for here >> right >> you know >> understanding the goal >> understanding the goal that's it's like 100% what it is and so

like you know understanding expectations so like I can either say this looks you know I agree this looks good or if it's I also want to give a quick and not waste anybody's time. Don't want to waste appraisal money, you know, like I'm absolutely will pass on a deal if if I know the value is not going to hit or if the DSCR is not going to work or if there's something about it, I'll say, you

know what, here's how it works with us, you know, um or you know, here here's what the structure would be. Um and if it doesn't work, immediately pass them on, right? And and I always will give >> you have a network and everything, right? So, >> yeah. And I always will give recommendations of like, hey, here's somebody who >> I think would fit your box, you know, and always like if I always, you know, if I

always put the customer, >> you know, intentions first ahead of mine because like, >> you know, last thing I ever want to do is like cram something through, waste their time, and then call them up in three weeks like, "Hey, loan got denied. Didn't work out. I'm sorry." And then then they're, you know, then they're pissed. You know, that's just not like I'll never talk to that person again because they had such bad experience. So, um,

but it all as far as the process, it all comes to me first and basically just like walking through the opportunity, walking through the quote, um, giving them a breakdown of like, hey, if you if it does appraise here, >> if you do rent it out for this much, here's what it would look like, you know, um, factoring in, you know, all all the normal things like if we're talking DSCR, you know, it's >> it's, you

know, it's several different things that affect that structure and the rate and the cash flow and everything. you know, the credit score, the value, the debt, taxes, insurance, like all of the things that, you know, will ultimately decide the cash flow. Um, but if everything looks good, you know, and I have so many repeat borrowers who understand our process and understand the game really well, too, to where it's like it doesn't it doesn't take a lot

of education or like me walking through like they know if it's a good deal or not, you know, so like I don't always have to do that, you know, but >> it's I always want to go through it just to make sure we're for sure on the same page and like you said, understanding the expectations of what do you want and >> do I can I get you there? >> Yeah. you know, and it's it's either

yes or no, you know, and so >> and so just just to break it down again, right? Like your your team, right? It's you and then it goes to >> So Ash Yeah. So Ashley's absolutely So Ashley's more of like, you know, front end um you know, if if if I send you a quote, everything looks great, I'll I'll, you know, I'll hit up Ashley like, "Hey, all right, LOI is ready to go. You know, it's

bars host. Here's all the details." Send him an >> LOI. And so for people, so for people that are watching this right now, Andrew, you know, um maybe some of them don't have maybe haven't done a DSCR loan, right? >> Uh can you explain what an LOI is for them? >> Yeah. Yeah. It basically just it letter of intent. So it's basically just kicking off the loan, right? >> And so it's all it is is just

a quote, right, >> and that we send through DocYsine and you sign it like we agree to these soft terms like nothing's firm. We don't have the appraisal. We don't, you know, we don't always have all the information, but like based on what we know and you're telling me and what we can see, here's what it looks like it's going to land at in the end. So, we would start with an a letter of intent, sign

it, and that kind of puts the loan opportunity in our system to where we really start. So, you know, that's that's the very first step. And then the appraisal, you know, comes in. That's that's the very next thing we do. order the appraisal cuz that's usually like the longest >> item that takes, you know, it takes the longest in the whole process is getting that appraisal back. So, I always I always will try to get the

at least appraisal ordered >> while we collect everything else and while we kind of, >> you know, figure out everything else. Yeah, I really want to I think it'd be really beneficial for every viewer to break down what the entire flow of the DSCR process, what it looks like, um how it works, and you know, maybe uh even go a little bit into like what DSTR actually means and how how they qualify that number, how people

how your underwriters actually look at a deal, what's important, what's not. I think that would be extremely valuable to anyone that's watching. But um uh before we do that, let's go ahead and take a a quick pause just to hear from our sponsors. >> If you're a nationwide real estate investor, you need to go check out gethhardmoney.com. Gethhardmoney.com is the number one place to find local hardmoney lenders. You can connect with them directly. You can request

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all the time. No cost ever. So if you're investing and you need lender connections, this site works nationwide. Uh if you need deal analysis, this thing is a no-brainer. There's no cost to sign up. It's just free value, free connections to any real estate lender out there. So, get go sign up. Get hardmoney.com. All right. And we're back, Andrew. So, um, dude, I think I think it would be extremely beneficial to all of the viewers at

home, you know, that, uh, have only heard about conventional loans, have only heard about, um, you know, uh, FHA, conventional, VAS, you know, all these different loan products are out there in the marketplace. >> But I think what really sets real estate investors apart is really understanding the DSCR process, right? Because a lot of people go into a property, they buy it with fix and flips, and then this is part of the the burr method, right,

that a lot of people talk about. Buy, >> buy, renovate, um, refinance, rent, repeat, right? And you're sitting here in that process that's extremely valuable for any person that's wanting to invest in real estate. Uh, I think it'll be extremely beneficial to anyone that's watching to break down the entire DSCR process, one step at a time, what that looks like, and more importantly, how you fit into the picture, Andrew, and then how you can make it

a simple walk in the park so that anyone that's watching can come talk to you and then they've already watched it, now they can just start doing it with you. So, so step one, contact Andrew. >> So, step Yeah. So step one and be, you know, get with me and we'll go we'll go through everything >> the deal >> and and so just through the deals and that's you know the property type. Are we talking single

family, duplex, 5 plus? You know, I need to know almost all of the different details because we we offer it all. Yeah. >> But I just need to make sure >> I'm quoting it correctly and you know I completely understand. So it's like >> what's the address? How many units is it? What do you think it's going to appraise for? Mhm. >> Um what is the debt? Uh do you have it rented? And if not, that's

fine, but that kind of then the conversation might go in a different direction. Um or if you do have it rented, how much? And then I'll look up property taxes. And then we'll we'll generally have to do like an estimate homeowner's insurance cost, >> right? >> So, we'll put all that together. Um you know, what's what's your credit score because that plays a big part of it. And then and then after that it's like it goes

back to okay what are you wanting here because we do you know cash out refies non-cash out refies up to 75% some people like to go lower to get a better rate. Um but it's just like you know understanding what they want but then also just providing them with a lot of different options. So, as we do that, you know, typically on the phone, it's I'm plugging it in onto my side into our pricing calculator sizer,

>> right? >> And it's um I punch in all of that data and I can and I'll say, >> okay, so based on, you know, what we're doing right here, this is you you have you have these different options. You know, you could, you know, do this cash out, you could go lower and take maybe less cash out. Um and so that's just making sure you know they completely understand you know the process the expectations um

and if you know and if they don't you know and to maybe go a tad deeper of just like understanding what DSCR is and because everybody kind of knows of the term it's just debt coverage um uh uh DS debt sales coverage ratio debt service >> debt service debt service coverage coverage ratio. Yeah. I never >> It's a tongue twister. >> Well, I also never say it. I just say you sort of have to think about

it. >> All that is is just how well does your property cash flow and does it cash flow, >> right? >> Um and so so whenever we plug in, you know, the loan amount >> and then we plug in, you know, what's the rent, what's the taxes, what's the insurance, what's the difference, you know, if you're if the if the note if the payment is going to be 1,500 bucks a month, what is your lease amount?

Is it 1,700? You know, 2,000, you know, that's your cash flow. That's the debt service part. Yeah. You know, and so for us, >> we only we typically only need it to be cash flow positive. So, theoretically, if our payment comes to be, you know, after I plug it all in, $1,500, we kind of only need a lease agreement to show 1501. >> Now, that's shitty cash flow. You know, it's not a good deal, but like

we could technically get that deal closed. That means because it's >> your debt service could only the ratio >> could just be one. >> It just one. Yeah. We only require one. 01, I guess. >> Yeah. Yeah. Right. 1.0. Yeah. And so that by our guidelines is a pass, >> you know, that's all we technically need. >> We do give incentives like, you know, you do get a rate decrease the better the DSCR is. Like if

you're able to hit a 1.2, too. >> Yeah, >> it could it drops typically pretty significantly about maybe a quarter of a point >> in that same structure. It could be same LTV. Um but since it's you know since you were able to basically find such a good deal with strong cash flow, we reward you with a better interest rate, >> lower rate. Yeah. >> So, um but to just get a pass some people, you know,

some people, you know, a lot of a lot of borrowers will say, I want max cash out. I want to take that cash. I want to go buy more properties. I want to do these other things. If this cash flow is not so great, >> yeah, >> that's fine. You know, and people can make sense of that because they're going to take the cash and then then they're betting on the appreciation over the long term, which

isn't like which isn't a bad strategy. It just >> just doesn't have the cash flow. I think I think what's really impactful here also, Andrew, is um >> the fact that DSCR loans are completely independent from your own personal finances where conventional loans, FHA loans, the typical loans that every person in America uses, right, to that you have to go through a qualification process of your last two years tax returns. You have to show your bank

statements. So, you have to make sure that uh you know the the underwriters on the conventional side are >> more worried about your own personal financing versus here a DSCR loan is a loan that's completely independent of your own personal finances. And what you guys really care about is >> is this property going to be able to pay the bills every single month for the next 30 years, >> right? >> We the Exactly. And you know,

probably the best way to maybe think about it is we're underwriting the asset, >> not so much the individual. So, a lot of people, you know, understand the conventional FHA, VA, all the different types of loans. And be honest, it's it's the same structure. Yeah. >> You know, it's it's different underwriting and we'll get to that in a second, but like if you know, if somebody's new to investing, new to DSCR, but they own their own

home and they went through that conventional process, >> our loans, these are the same thing. It's a 30 years fully fixed, fully advertised, and includes escros. There's really no different from a from a high level, you know, structure point. You know, this this is what it is. The difference is, you know, one of the differences is just the qualification process like you said. And so this is, you know, in this private money space, and this isn't

unique to Renovo. This is pretty standard across the board, but >> Correct. >> It's it's a it's a much quicker process. You know, these things take three or four weeks >> to close, but but >> we we don't do the tax returns. We don't do the W2 income verification, DTI, you know, we don't, you know, um we don't we don't look into all that, you know. So, it's basically of we do look at credit score, you

do >> and you look cash on the account. >> Yeah. And so, it's like the the three biggest things that we kind of always say is like >> credit liquidity, experience, you know, so if you have a good credit, you know, you don't even have to have a good credit, but it kind of determines some of the final terms. Like if we're talking DSCR, you know, we can approve, we can get a loan approved at a

680 credit score now, it's not as great of a structure if you have a 780, you know, and so like the the more qualified I guess you are, the better score, you know, >> you get you you get back better terms for sure, right? But we can actually do it. Just kind of like the 1.0, like we can do it. It's not as pretty as something that has a 1.2. And so um but the structure is

the same. the process is just much easier and quicker, >> right? >> And in and and and some people, you know, some people will still, you know, if there are some borrowers who will buy rentals and go conventional because they traditionally do have a the rates are actually pretty similar these days, you know, at the March of 202, you know, like they're they're pretty similar to be honest. like we might be a slightly higher but but

some borrowers will if they're bankable and qualified and they're willing to go through the process going going through that they can make sense of that because they're okay with >> the million questions and verifying this and that like what is that deposit you know give me your tax returns like some people are willing to do that like that's great you know like if you're willing to do that man like that's you will get a lower rate

>> right >> you know and so some people choose to do that >> some people would rather just you know I have this hard money loan I need to get out of it. I need to get him paid off, >> you know. Um I need to get this, you know, rented out and into a long-term note so that I can I can keep going, you know, um so I can really scale. And you know, mo most

people don't want to spend >> the time I'm dealing with a conventional loan, you know, one at a time. >> And I think you really hit the nail on the head right there because for a lot of people, speed is everything, right? And in order to scale quickly in real estate, you need to have speed >> and convenience, right? like how can I get out of this fix and flip as quickly as possible so that I

can move on to the next project. >> Right? So I think that's where you can come in. >> Uh another thing is that there's no limit to how many uh how many loans you can do with Renovo, right? >> Well, it's that's definitely the case when you you look at it compared to like a conventional for sure. You know, I think FHA is >> I think it's 10. >> Yeah, it's 10. >> I think it's 10,

right? Is that still the case? So, >> so I don't want to say, you know, >> we have an unlimited >> bank, you know, credit to each person, but like for sure like >> you can do a lot more, >> dude. Like if you if you you know, if you uh are flipping five properties right now, >> Yeah. >> and you want to rent them all out. >> Yeah. >> Give me all five at one time.

Yeah. >> And let's refy them and then >> No problem. >> And you call me in the next week, I got five more. Let's do it. And so like it it, you know, by and large, no, it's not an issue. when we get to like a certain, you know, it's it's typically we have these exposure limits. Not it's not even I mean it kind of is limits but like we have these exposure like if you get

to about 8 million bucks it's not a cut off. It's just like hey do we understand Jose's business he's at 8 million bucks you know it's just kind of like a review like we got we got a lot of money out to this guy. >> Yeah. >> Are we comfortable? You know can we verify that the rents are coming in? >> Yeah. >> How much liquidity do you have? So it's definitely not a cut off. It's

just like a review process and we say, "Okay, >> you look good. >> You look good. There's nothing wrong. No mis payments. Everything's good. You got liquidity. Like we love everything you see." >> Yeah. >> Let's go. Let's go knock out another 4 mil. And then when we get to 12 mil, we'll have the same exact process. Right. >> I mean, >> you know, there there are times like, you know, there you have mutual friends who,

you know, do a lot of buy and hold and, you know, you get up to get up to about 20 million, it's kind of a different story, you know, like we might there's a there's a there's a chance where like we just can't >> Yeah. un you know lend to you and it's a lot of exposure unlimited but but that's that's a big number you know it's a that's a huge number you know and that takes

a long time to generally get there >> but that's very few and far between because by the time you get to that number >> some of those you know the initial loans are >> from years ago and you're probably going to end up paying those off or selling them to open up some credit back with us you know so >> um >> it kind of works it it it's a great problem to have you know at

least for me for me it is you So, like, you know, been able to lend because like you get to that point like you're a strong >> tier one type of borrower, you know, that we just love, you know. So, >> absolutely. >> Back to uh back to the steps. Step one, you know, we spoke about gathering, you know, gathering the info, underwriting it, um making sure it cash flows, um understanding the rates, all of that.

That's all step one, right? That's that's done. Like someone calls you up, yo, Andrew, I got, you know, this this rental property that I'm going to keep, blah, blah, blah. I already have it leased out. you know, I'm ready to go. Boom. Sends it to you. You gather all this info, then you send them the LOI. Is that the next step? >> That's right. Yeah. So, it goes as long as we're on the same page with

what you know what the loan might look like. >> Yeah. >> Uh next Yeah. Next step is LOI and that really kicks off that really kicks off the loan in our system to order the appraisal. Yeah. um you know the appraisal typically takes you know we have a local that's you know I would say like >> why are you know what is you know some of the benefits and you know one of one of the one

of the things that's always at the top of the list if we have we have our own appraiser you know um you know I don't Melanie she's she's amazing you know she's been great for us great for our business like you know the clients know her she lives in Katy very local you know go directly to her no AMC no third party like none of that stuff >> right >> but we basically will get this LOI

signed and get the appraisal order over to Melanie. >> And that's that's >> and Melanie's here in >> Melanie out of Katie. Yeah, she's local and she has a team, you know, and she it's a quick turnaround >> and she works directly for Renovo also. >> She's not well she's not a Renovo employee, but she, you know, she's set up with us. >> Um, we send her all of our DSCR, you know, she's our DSCR lender

on that side and so it'll go to her and she'll usually have them knocked out. like there's almost never, you know, if it's maybe Galveston, it's kind of a a little bit of a drive. Like maybe it'll take two weeks, maybe 10 days, but like it's generally a week turnaround. >> But while while we >> while we order that, >> you know, >> the biggest thing for me as far as the speed part is getting that

appraisal to her because that's what takes the longest. Once we send that appraisal order, then it's collecting the docs. So, it's send me your LLC docs if we don't have it already. Send me your lease agreement if it's leased out. Give me your insurance contact. Give me your title contact. >> Um, typically we'll need the original purchase HUD for like whenever you, you know, bought the home with the hard money lender. We'll need that depending on

like when you bought it. But, >> um, and then the financial part of our process is needing two bank statements from your accounts. And so, like I said, you know, there's no W2, there's no tax returns, but we do need to see your bank statements just to verify your available balance essentially. you know, we need and we have, you know, different metrics as far as like how much do I need to show and you know, that's

that's generally one of the questions up front is like how, you know, besides all the terms like how do I make sure that this is approved, you know, and it's and and part of that is how much cash you have, you know, how much are you able to show in your, you know, >> what do you guys what do you guys typically require like uh 10% of the loan in your bank account? >> Well, it's um

it's kind of um it kind of depends. It kind of depends on how many because one of the things that our committee when reviewing and approving the loans will factor in is how many loans have we closed with you, you know? So, if you send me a, you know, $200,000 loan for that loan only, you probably only need like 10 or 20,000 bucks. Like not much. Like I usually I'll generally say if you have a year's

worth of mortgage payments. Yeah. So, if it's 2,000 bucks, if you 2,000 bucks a month, you can throw 24,000 in your account, we're good. >> Yeah. But if you send me that same $200,000 loan, but you got five million bucks out with us in exposure, like that number is going to need to be a lot bigger, you know? So, it's it's it's kind of >> it's case by case. It's not it's not case by case, but

it kind of depends on there's not like an exact um number that I could say you know you know it kind of like you know look at it from like the big picture of like what you have out um or how many other loans do you have out too you know so but you know so that >> that would be I think that's I I think I said everything else so that would be the other >>

documents that we would collect >> while that appraisal is being ordered because the goal is to get that appraisal and have everything else. And as soon as we get that appraisal in, we're jumping back on the phone and we're going over the the numbers again, you know. So now we have firm numbers instead of, you know, hypotheticals, you know, on the initial phone call, it's just like I think it's going to appraise for this or >>

um now we have an appraisal in hand. Um and so we have we have hard numbers. >> Mhm. And there's sometimes we need to go, you know, fight the appraisal, like we want a little bit more and dispute it, which we can always do, but 99 times out of 100, like we get the appraisal that we're looking for, you know? So, we usually don't have to do that, but it's always an option if, you know, if

>> Yeah. >> You were just not where we need to be, >> right? >> And I think having having uh that appraisal in house and you guys having a relationship with them, I think that probably helps. >> It's a game changer, bro. like it's it's um it's it's uh it's you know I was talking to somebody today and they use these other you know our competitors nationwide lenders and they always have to go through these third

parties and it's just it's just not I don't it's not not fair because you know they have a lot of um you know there's not I don't I don't know but I don't know if it's like strings attached but they're just conservative you know they're very conservative they're not open >> um you know there's it's just a lot, you know, you you're you're more likely to hit the value, the true value. You're able to talk if

you're able to go talk to me like, "Hey, here's why I think it's this value. Here's what I did. Here are the comps that I pulled. >> Can you please at least review these and consider them when you're writing this report?" >> Yeah. >> And so, >> and that's going to go a long way. >> It does, you know, >> in making sure that you get the value that you needed. And she's I mean she's >>

I mean she's a a she's a licensed you know she can't make stuff up you know so it's all stuff that she has to be able to justify but it's really it's it's just she's willing to try >> to get to where we the borrower the client is needing to be and there's plenty you know I mean and if she doesn't it's like hey Jose you know I'm really sorry here's where I'm at >> I know

it's not as high as you want it but here's why >> you here's what I'm seeing at least >> there's an understanding And so it's like so you're not going to you're not you're never going to think you're typically never going to think it's unfair because she'll absolutely walk you through what she's seeing. >> But it's also like prove me wrong, >> right? >> And if you can like she's always receptive to it. >> And I

I think I think Andrew and like it's really important. >> I want to point this out especially being in Houston with us not having any zoning here, >> dude. Sometimes like I've done a deal with you guys where uh it's like in Angleton, right? And it's uh it's a it's a single family house, but I have an extra lot attached to it and there's nothing else quite like it, right? So, we have to appraise it and

and look at it a little bit differently like what is the single family home appraised for and then what is the extra lot? How much extra value is that bringing into the table, right? And I think you guys did a great job and like got me to the appraisal that we needed to be at. >> I I I remember talking to you about that deal. um feel like it was a couple summers ago. But another I

wouldn't wouldn't have thought about this unless you brought up that example. But another benefit of having a direct contact I guess you know with with you know with the appraiser is not too often she doesn't love when we do this to be honest but like if if we have a unique deal and it's like man I don't know what this sucker is going to appraise for you know it's just like it's awkward it's laying next door

it's a big lot whatever it is I'm like you know what man like I don't want to risk this. Yeah, >> I don't want you to pay for this appraisal and wait and we're killing time. Let me send an email. Let me let me put this in front of her and send me some pictures. Give me some details and have her review it upront and see where she might come back at. Let's see if she can

give us an idea of where it's going to be. Like it's not exact, but like >> you know at least like pitching it to her so you can because she might, you know, you might say, "Hey, I think it's worth 300k and she's like Andrew like based on what I'm seeing like I can't get there. like >> I'm going to disappoint you. Let's I'm not going to be able to get there. I'm going tell you right

now. And that's that has happened for sure. >> Yeah. >> And that sucks, you know, kind, you know, it does suck, but then I go back to you. I'm like, hey, man, like I don't I'm not even going to try to get this started. Like this is what it's probably going to come back at. Like, >> right, >> let's not even attempt to do this because you're just going to be disappointed. You're going to waste your

money and your time and you know, so like that's another benefit >> of of of that. Um, but to to I guess to go back to your question as far as like the process and how this works is so our goal on the team is collecting all those docs that I mentioned and as soon as we have that appraisal back >> we're immediately jumping on a phone and like going over the hard numbers of like, okay,

where do you want this to be now? Like we have the numbers like make a final decision and here are all your options. Let's go through this. >> Um, here's the final rate. you know, everything that's important to you and and I'll and I'll again update >> the quote of like showing, you know, people want to see it, >> right? >> Um, see, see the cash like our our quote gives everything that you care about as

far as like loan amount and the rate and the cash flow and the, >> you know, we do have a prepayment, you know, penalty. So, like everything that that loan encompasses is on that quote. So, you can see >> and if it looks good, we're immediately going to underwriting. you know, I'll get with so the the the middle person, you know, so like you mentioned Ashley is like upfront. Once she collects all the docs, >> it

gets handed off to my credit analyst. >> Yeah. >> Brett, who's a rockstar. Brett will then step in and say, "Okay, I got this full >> file, got the appraisal. Let's go get this closed." And so he'll step in and underwrite the deal, put a whole summary together >> of the property, the borrower, the cash flow, every like all of the details. It's a pretty uh >> you know it's it's it's a pretty thorough summary that

they and then that's what gets sent off to our loan committee department that actually approves the loan and they're they're based out of Chicago. So we so Brett will put that together, send it off to loan committee um and say, "Hey, got this opportunity. Here it is. Here's all the details. Here's the appraisal. Here's the summary. You know, give us the approval or you know, you know, give us your feedback." And sometimes I come back with

questions. Yeah, >> sometimes easy questions, sometimes hard questions. You know, sometimes they, you know, they see stuff that Brett doesn't. You know, their job is to protect the company, right? You know, they everybody wants to close loans, of course, but we also want to close, >> you know, good loans, >> right? >> You know, we have a very low default rate >> really, >> which is oh, super low, like >> like one of the lowest like

honestly like one of the lowest in the whole private money space. But it's because, you know, we we look through things, you know, we're pretty smart, you know, we Yeah, we So, we'll send it off to uh loan committee as soon as we get the approval approval. Then it goes to Brett. Then Brett steps out of the picture. he did his job. And then Lauren, uh, Lewis is my closer, and she'll communicate with title, communicate with

the insurance agent, do loan docks, um, communicate with the borrower as far as when, you know, when's closing is going to be, schedule that, answer any closing questions, escrow questions, any of that stuff. And so that's the third person like on, you know, on the pod on my team that will help coordinate and close the deal. So, um, and and you know, and >> you know, my my job is to, you know, bring in new loans.

You know, it's basically sales. You know, it really is. But like through all of that, >> it's all, you know, I'm always involved. I'm always I'm always copied on the emails. I'm always like, >> you know, hey, when's this appraisal going to come in? I'm always tracking it. I'm always available like, hey, here's where we're at. Here's what I think we're going to close. Here's any anything. Here's a new >> insurance contact if you need help.

you trying to get trying to get quotes like anything it is like I'm always there but these you know these these these other people kind of like doing some of the you know the finer details I guess of of the process. >> So just to recap and um I I think this is extremely valuable Andrew you know for especially for someone that's never even heard of DSTR I think this is going to offer a ton of

information for them to really wrap their hands their heads around what all of this process actually means and what it's meant to do. Right? because I feel like in order to um do anything in real estate, I think it al it always starts with education, right? Understanding the process. So then with uh understanding, then comes familiarity and then comes confidence, right? And I think this is very important. So I'm just going to recap everything and if

I miss anything, just make sure you stop me. >> Uh step one, gather info, right? You guys are gathering all the info, getting everything ready, underwriting, DSCR. >> Um then step two, send the LOI, right? Step three, appraisal. Step four, docks. Step five, final numbers. Step six, underwriting with Brett. Step seven, loan committee in Chicago. And step eight, close it out. >> Close that sucker. That's it. That's it. Yeah. No, it's simple. Yeah, it's very, >>

you know, and the I you know, the the first loan might be, you know, I don't know if it's intimidating the right word, but like the you know, you don't you you know, you don't always know, but like once you do it a couple times with me, like you understand the process, you understand who's involved. Like it's it's it's so much you know not that not that the first loan is ever difficult but it's you know

it's kind of understanding the process and the ways and like you know what we look at what we need. >> Um but once you do a couple it's like all right I know exactly what you need. It's like clockwork you know like we're the same process with the same people >> every single time. >> Right. >> And and um >> man this is really great dude. Thank you so much for sharing everything. Uh let's take a

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um, awesome, man. I think we just went over the eight steps to getting a DSCR loan closed. Um, super valuable information, uh, just to to let people see the behind the scenes, right, of what it takes to to do a DSCR loan. >> Uh, let's, uh, let's move on now and kind of have a full circle moment. what happens after a loan gets actually uh closed, right? And now we're talking about servicing the loan, right? You

guys do servicing in house, which I think is fantastic. Um >> yeah, let's go ahead and talk. >> Yeah, we do. We have our own it's a completely separate department. Um but it's a Renobo servicing um group. Um so we don't and you know it's it's something that I'll mention, you know, if if I'm talking to somebody for the first time, it's like what are the benefits? Why should I go with you sort of thing, you

you know, I mean, I'll rattle off the fewer higher level, you know, things that I think is important or the feedback that I get. And >> yeah, >> um, servicing like, you know, you don't think much of it to be honest most of the time, especially if you're newer, but >> you know, having a pain in the ass servicing company like, you know, um, >> I don't want to I don't want to throw out any names,

but like a lot of, you know, >> there are a lot of bad servicing companies, you're getting a hold of, getting anything you need, statements, >> Yeah. >> payoffs. you know, bank statement changes, all that stuff. Um, you know, it's it's a it's a process. And so, um, um, we have our own, uh, our our boy Shaone is is, uh, frustrated with us right now. It's funny like like as soon as I think of servicing, I

think of him because he, uh, he has so many loans and he's trying to get some stuff in, but like, dude, you got like a lot of loans, man. It's hard to get through. Um, uh, >> so, but we have a dedicated We have um a dedicated Texas servicing group. Yeah. Um >> uh for only the Texas loans, you know, I mean, we've kind of grown into a bigger company nationwide. And so we've >> I don't

know, a year or so ago, we we uh created a Texasonly servicing group. So we go to the same contact for anything that we need. And we also have a portal, you know, like soon as you soon as one of the requirements that we have before you close is go in and we'll send you your portal, you know, login, user information, stuff, get you set up. Yeah. >> So, you go in and you can see anything.

You can request a payoff. You can a lot of the things you can just do through our portal, >> right? >> Um, >> and actually, we're this hasn't been released yet and I don't know when other than we were told it's going to be this year. So, we're going to have an app. We're gonna create like a Revo app which is supposed to be pretty sweet apparently like you can go through and >> be able to

do all that just from your phone. >> Um so the port, you know, our portal, you know, you know, probably like most, but you can go in to see everything you need to see. >> Yeah. But outside of that, you know, if you have, you know, specific questions, I feel like the the questions are mainly around insurance and escros, especially on like the term this DSR side of just like >> updating insurance or like it lapsed

into like we're needing to make sure it gets covered, you know, so we don't do like a force place thing. So, >> not only that, but what's what's a document that you need from your uh from from the servicing company to do your taxes for >> Yeah. The 1099? >> Yeah. To to know how much uh you paid taxes. Yeah. Yeah. Yeah. >> Um >> I feel like that's on the portal. >> Okay. >> And the

only reason I say it is cuz I don't get asked about that much and that's everybody needs that, right? So like that has to be something that is accessible through that portal. Um but yeah, we we so but I guess the point is like everything is Renovo, you know, like from beginning to end, you know. So, >> you know, I'll talk to borrowers who closed loans years ago and I'm still the contact, you know, like I'll

I'll like a lot of that stuff I generally can't answer. I just have to connect them. >> Yeah. >> But it'll always go through me and not some, >> you know, >> r, you know, because a lot of times loans will get sold off, sold off and sold off and you don't even know who who who holds it, you know. Um, and it's just always it's just always us. And so, >> um, and we've actually been,

you know, it's and it's really another income stream for the company to be honest, you I mean it's it was really smart for them to set it up but we have actually uh are servicing loans for other lenders like for our competitors really. Yeah. And so we we service their loans for you name it you know like any >> I you know I don't I don't know if there's like some specific >> you know lenders who

we do it for you know how it works but yeah there's we service a bunch of loans and they're not all loans that we originated. >> Yeah. Um, but yeah, I mean just any anything that post clothes that you need will just always go through us, which >> it's not always a big deal. Yeah. You know, it's not like a big selling point, but it's just a convenience thing, you know. It's just a convenience thing that

makes it super easy to work with you guys. >> It's just one other thing that, you know, that we can we can kind of offer that, >> you know, is kind of nice, you know. Um, >> I love it. So, >> um, switching gears here a little bit, man. I, uh, you know, we've talked about a lot about the DSCR. Let's talk about five plus, you know, like multif family uh complexes. >> Um quick question before

we jump into that and uh and then I'll ask you specifically about what the process looks like, you know, is there anything that differs from a single family to a multifamily? Uh but I have a quick question. What's what's the biggest multifamily complex that you've done a DSCR for? >> Um it is a one that I'm closing next week to be honest. So, well, so I'm closing um a 74 unit right now. >> Nice. >> Um

>> I've done a couple years ago I didund I think it was 169, >> but it was it was uh it was comprised of like >> I don't even like 20 different properties. is like a portfolio >> duplexes over here and triplexes and some 10 unit, you know, but like it was like it was a bunch of different random properties all under one big portfolio loan. But, uh, as far as, >> you know, like a true,

you know, commercial apartment style, um, it's it's the one I'm actually currently doing is 74 units right now. So, yeah. So that's and that's um you know it's it's not that different like we've we've talked about the DSCR you know so the biggest difference really is that we can go 75% on the five plus um cash out 75% loan to value cash out non-cash out all that stuff it's it's a it's a really a lot of

the same structure the only big difference is on the five plus requires I guess first of all a commercial appraisal so the appraisal process is a little bit that takes a tad longer, a little bit more expensive. >> Um, but the DSCR requirements on those is 1.2. So, we talked about the 1.0 like just passing on the single family or 1 to four. Yeah. >> The commercial is a little we're a little bit stricter basically like

we have to >> um have stronger cash flow, >> right? >> Um >> which generally isn't that difficult because when you have a bunch of units, a bunch of income, like it's generally pretty strong, you know? So, it's not always that difficult to hit that 1.2, right? >> But that is a cap. So if you you know so say if if you know in if if you in in in every other metrics you qualify for 75%

in great credit liquidity like all these things but the DSCR is at 75% LTV is like a 1.17 or whatever it is in that scenario we would have to drop the loan to a 73 72 whatever it is to hit that 1.2. So that that was that's the that's really the big difference. But yeah, we absolutely you know I'm doing >> you know uh you had Mar Richard Marquez on here a couple months ago whatever like

>> closing an 8 unit for him next week. >> Nice. >> Um you know those uh yeah we 100% have those. I mean that's >> one thing for sure that um a lot of lenders don't have is or or they'll have a cap on like eight or nine or 10 units. You know they can only go up to so far so many units. Yeah. So, and so um there there's been there has been I mean to

be completely transparent there has been some changes in that product type. Um like it kind of it actually did for temp very temporarily actually went away like it got suspended for like a week or two weeks a while like cuz the markets like right now again you know end of March >> market's kind of crazy dude you know it's like volatile like >> the treasures are kind of going you know up and down and so there's

a little bit of uncertainty like with the investors and you know kind of all that and so um we brought back uh the five plus loan um so we have it um but it's a lot of it's the Same same story, 30 years, fully fixed, fully advertised, you know, includes escros. It's not that much different. >> Yeah. >> Um, >> so yeah, I mean, so but but yeah, I mean, that's that's one thing, you know, we,

you know, >> those loans are kind of few and far few and far between, for sure. You know, like I don't do a ton of those. You know, we do a lot more single family type of stuff. >> Um, but you guys can do that. >> We 100% can do them. The the we have, again, on that side, we have uh we use Ambrose Group for the appraisal. Nice. you know, Brian Burke over there, he's equally

as awesome as Melanie. And so we we, you know, we go through him um for all the the the commercial stuff. Um >> like I said, those will take, you know, another week or so to get closed. It's bigger loans. Um but the underwriting is still the same. You know, it's a lot of the same metrics, you know, so we >> we don't require anything extra on those loans. I mean, sometimes we'll say like, you know,

do you have a P&L, you know, you know, rent roll, some things, but like we don't do the tax returns, like still still simple underwriting. Cool. Um, the last thing that I want to touch base on is uh we've talked a lot about DSCR and I, you know, probably this entire podcast was about that, but that's not all you do. You do fix and flips also and, uh, new construction. Uh, specifically, uh, you you do it

for a really good friend of mine now, Justin Davis, who Yeah. Yeah. Shout out Justin Davis. I know he he watches the podcast, so shout out, bro. Uh, love that guy. Love the guy to death. he's he's come on the podcast and just offered a ton of value when it comes to new construction and uh mindset and >> you know just uh overcoming a lot of things. So um yeah, talk a little bit about that. Um

>> we So yeah, we we do it's funny cuz um >> you know I I'll do some DSCR. I I'll know clients pretty well. Yeah. And this is my own fault, but it's like oh you do hard money. you know, it's kind of like we didn't know that because like you're you know like you know we're so kind of known as the DCR which um >> which isn't always a bad thing but yeah we do we

do the front end you know like the short-term short-term loans. >> Yeah. >> You know so fix and flip um we also do five plus there uh five plus units but um you know one to four fix and flip um new construction um yeah we have all of those different product types and we actually have >> um and we do do more DCR to be you know to be open. We do do more DCR at least

in Houston. you know, some markets have more bridge, you know, hard money loans, bridge loans. >> Um >> um there's there's a lot of money here is what it really comes down to is like there's a lot of money, private money here. >> Yeah. um a lot of small hard money lenders that um you know that it might be a better offering that we can do to be to be honest, you know, and so and that's

fine, you know, and so like I'll I'll talk to I'll quote hard money all the time and >> um if we're not, you know, whether it's we require a little bit more of a down payment than they're wanting um or whatever the case is, I'm like, "Hey, I I get it. You know, I I would do the same thing if I was you. you know, every investor wants to keep their money in their pocket, you know,

so you can build and scale and do all that stuff. And I'll absolutely say, >> you know, here's here's James, you know, here's here's uh, >> you know, all of these, you know, I know a lot of people, you know, so I'll absolutely put them in contact, right? >> Um, just to help them get the deal closed. Um, but we do, um, we do offer, um, you know, we have this thing called the loyalty program to

where if you're looking to buy, you know, a fixer upper, basically, you want to bring us the hard money loan, but you also want to hold on to it, we'll transition it into the DSCR, and so we'll keep everything in house and we will like we discount that backend interest rate on the 30-year loan. So, like we try to make it, you know, entice you a little bit to keep it with us, you know, do it

with us on the front end, keep it with us on the back end. We get, you know, we get both sides of it. And so, we offer a little incentive there. >> Nice >> to do that. Um, and then the new construction. Yeah. Um, >> do a lot of deals with Justin. >> Um, no, to be honest, you know, so that he I know Justin because his our kids go to the same school. >> No kidding.

>> And so, his son >> Second Baptist. >> Uh-huh. Uh-huh. >> Your kids go to Second Baptist. Oh, that's awesome. They do that. They do the university >> classical education stuff. So his son and my son are best friends. >> Okay. >> They best friend been best friends for >> like a couple years before Justin and I really knew each other that well. It's funny that we would like say what's up to each other like baseball

games and stuff like that or whatever. >> And uh we just started talking I don't know a year and a halfish ago at at actually at a baseball game. It's dude >> it's like what do you do? Like what do you do? Yeah. >> And then it's like where'd you go to school? Same Houston. Sam Houston. What' you do before? Oil and gas. Oil and gas. So it's like, bro, like it was it was it was

like the easiest it was like the easiest friendship ever. >> And uh >> and so um but we we actually know each other through school. And then it it's just grown tighter, you know, like you know, him introducing me to people, doing the same talking about stuff, you know, like it's just Yeah. I mean, so it's amazing. It's it's it's it's actually way more of a friendship like a genuine friendship than it is like a business

a business relationship for sure. So >> um so we do new construction stuff too. Yeah. Just Yeah. Just to throw it out there, I guess. >> For sure. >> Yeah. Yeah. >> Nice. Nice. >> Well, Andrew, I think we've gone through a lot, man. I think um I think this is going to really break down a lot of things for a lot of new people. So, um thank you so much for for coming on here. Uh

for for anyone that's watching right now, they're probably going to want to if if they've made it this far, they're probably going to want your contact, right? To be able to do business with you. So, >> what's the best way to contact you, bro? >> Um by phone. I uh I keep telling myself I'm going to step my Facebook game up, but yeah. >> So, my personality, so like I on Facebook for sure, like you find

me on Facebook. >> Yeah. >> You know, hit me up there. Um but uh yeah, probably either you know andrew renovanicial.com email or just my text probably to text call me. I I'm always always working. Always always got my phone on me, but it's uh 2104252190. Yes, my cell phone. Yeah. >> Cool. Cool. >> Awesome, man. Well, uh thank you so much for being here and thank you for breaking it all down, dude. It was uh

it was a long time coming, so I'm glad you finally made it out of here. >> Yeah. Yeah. Thanks for having me man. Thank you so much. Yes, sir.