Posted Thursday, March 28th, 2024 by Enterprise Property Management
Game-Changer Loans: Creative Cash Real Estate Investing for Less – In this engaging episode, Devin Peterson, a seasoned loan officer, unveils groundbreaking strategies for entering the real estate market with minimal initial investment. Specializing in creative financing, Devin offers a lifeline to investors hindered by traditional financial barriers, emphasizing non-QM loans and asset-based lending. His approach not only simplifies the path to property investment but also opens doors to rapid portfolio expansion. Whether you’re a newcomer or looking to scale, Devin’s insights can dramatically alter your investment trajectory, making the dream of real estate ownership a tangible reality for many.
Aaron
0:00:19 – Today on the Behind the Curtain Podcast, we have Devin Peterson. Devin is a loan officer and he often works with investors as they are just getting started in the investment real estate world. Devin has been an excellent friend to me and to a lot of our investors who have wanted to get into real estate, but they didn’t necessarily know how and they may not have all of the funds that they think they need up front to be able to pursue that first property.
Sponsorship
0:00:49 – Behind the Curtain Real Estate Podcast is sponsored by Memphis Real Estate Advisors. Memphis Real Estate Advisors is a realtor team led by husband and wife duo, Aaron and Alyssa Ivey. Bringing over 20 years of experience in both residential and commercial real estate sales and property management, the team works with investors, buyers, and sellers as a member branch office of the national franchise, EXP Realty. To get in contact with Memphis Real Estate Advisors, visit them online at a href=”https://memphisreadvisors.com/” target=”_blank”>memphisreadvisors.com or call 901-671-1015.
Aaron
0:01:30 – What we’d like to do today is just talk to Devin and let him share some information about how real estate investors can get into the market, because you’ve got to get into play if you’re going to win, how you can do it maybe with a little less money up front than a traditional mortgage. So Devin thank you so much for coming on the podcast with us today.
Devin
0:01:47 – Appreciate it Aaron thank you so much and Richard thank you so much for having me. It’s an honor to be here with both you gentlemen today.
Richard
0:01:53 – Oh no problem, it’s great to have you. Yeah one of the things I wanted to talk with you today about specifically is the more creative style of loan products that might be out there than non-conventional per se. In the market that we’ve got at the moment we’re seeing it increasingly more difficult for people to get into the marketplace. So can you talk about some of your creative borrowing options that you might offer?
Devin
0:02:17 – Yeah, yeah absolutely and I think you honestly hit the nail on the head. It is so difficult. I’ve been Even when I started over five years ago, it’s gotten extremely difficult to be liquid and scale as quick as investors want. There’s so much red tape associated with the quasi-governmental entity programs, and this is why it’s been so helpful for the non-QM market to spread open and really show itself as a true pioneer for investors in the last handful of years. So when it comes to creative financing, a lot of people really don’t know what that means. And it can be a multitude of things. It doesn’t just have to mean one certain program. So basically, my motto is non-bankable creative financing. And so people are always asking me, hey, what does that mean? I’m like, well, it can really mean whatever you want it to mean. There’s a lot of ways that you can get deals done that traditional banks can’t. One of the more common ways is the non-QM market, right, so the non-qualified mortgage market where you have your no-doc loans, your bank statement loans, you have your profit and loss loans, you have your asset loans, you have your fix and flips, fix the rent, hard money bridge, DSCR, everything is it’s very all off the asset, right? Everything’s asset-based. So a lot of the times when people scale before this non-QM market took off, it was such a tight rope they were walking with DTI constraints and what Fannie and Freddie and conventional lenders were giving them chances for, right? And so this space was kind of derived from commercial real estate investing. Now I’m kind of leaning towards the DSCR side of things, that debt service coverage ratio program, where banks and private investors and partners took a look at, you know, the scalability and affordability of, you know, one unit, two units, three units and four units for smaller investors like you and myself out there. How can we create a product that makes sense for these people that won’t affect personal liability from business, right? And that’s kind of where the DSCR product derived from. There is, I would say 90% of the hoops and jumps that you have to go through for a conventional loan are eliminated on a DSCR loan. No income, no stated tax returns, no employment verification asset, all the standard verification forms that you see in a standard FHA, out the door. There’s three simple pillars that are associated with a DSCR loan. And when I have an initial consultation with somebody, I let them kind of talk to me first and so I can understand who they are. Juxtapose of what I’m doing right now, which is being a bit of a chatterbox, I generally don’t like to talk all that much. I like to listen. That’s why I say I have two ears and one mouth.
Aaron
0:05:09 – I can voach that.
Devin
0:05:13 – Yeah. Yeah, yeah, so it’s like I like to be able to hear people’s scenarios and then when they lay it all out there, I’m like, okay, now I have a clear picture, now I understand who you are, let’s make this happen, right? Let’s make something shake. And then from there, I explain just the simple pillars. I’m like, hey, do you have the down payment and the assets? It could be anywhere between 20 and 25%. Some investors are coming back with a 15% program. The next pillar is you wanna make sure that you have your credit in check. Generally, a lot of the programs I use, investors and lenders out there, they go down to 620. But again, anything over 730, 740, you’re gonna be the highest ranked tier for pricing and rate. And the most important thing is that DSCR score. And a lot of the time I just say, hey, you know, Mr. and Mrs. Investor, let me help you underrate your deal, right? Because a lot of people, they may be coming off the streets for the first time, they don’t even know what a pro forma is. They don’t know what a rent roll is, they don’t know what term sheets are. So, aside from me educating them on loan products, I like to offer an extra hand of service and just say, hey, do you want me to help you pencil this out? Like, just so you can understand how it makes sense on the financial side and how it makes sense for you as an investor. Believe me, there’s been times where people have come to me, they think they know the deal, they love it, but on paper, I’m looking at it and I’m like, they’re negative cash flow. It’s not in like a high growth rate market. The rents dropped or whatever, one case or another, like it doesn’t check all the boxes or even enough for me to be like, I wouldn’t do this. So I’ll be super curt and honest with people. I’ll be like, listen, as your friend, I know as a broker, I don’t agree with this. And, you know, there’ll be times where they take it with a grain of salt, but I really don’t advise you move forward with this investment. Some people like their brutal honesty, and some don’t. Some just choose to trust their inner instincts. And hey, as long as I can put it out there and help them out, that’s fine. But in general, if there’s an investor out there, they want to understand what KPIs are, what those key price indicators are, what the DSCR score is, and what’s a net operating income looking like with a 5% capex or a 10%. There’s all these new terms and language that gentlemen like us three know and hear every day. But when I’m on a first consultation phone call with an investor who just found out how interest rate works, I like to kind of slow the wheel down a bit and be able to let them feel like they’re listened to, but also educate and guide them. Does that kind of make sense? So when you do these creative financing products, you have to be able to listen, but also provide solutions and then teach people along the way. Within the bridge loans, a hard money renovation, that’s a whole nother monster. And I can go into that a little bit if you guys want me to but I feel like I’m kind of winding myself right now. I don’t know if there’s anything I brushed over real quick you want to ask me questions on.
Richard
0:08:11 – Yeah one thing that you touched on just now was the qualification in terms of credit score for some of these unconventional loan products. But what are the other aspects of approval? What would people need to be looking at? What are thos pilars that you are listening for, when someone tells you about themselves?
Devin
0:08:31 – Yeah, no, great question. So, I mean, as far as the credit goes, there are programs for investors out there, DSCR products, that go down to 620, right? And you’re not going to have a very attractive rate at a 620 credit score. But the other cool thing, again, with creative financing, is with DSCR loans as opposed to a conventional, you can close in an LLC. And Aaron knows this, I mean, we’ve, I’ve talked to him and all of his partners and all his deals. Let’s say there’s four people in an LLC, they all want to buy like a five unit, right? I don’t need all four individual owners of that business to credit qualify. I just need one. And so there’s something called an operating agreement. When you create your LLC, you have your LLC entity docs. So there’s a list of these items that are collected for underwriting. One is your articles of organization, which it explains what type of LLC you operate and which realm it is. Real estate investing is what we’re talking about, of course, here. The next thing is your EIN number, right? Your taxpayer number. The next thing is your certificate of status or good standing. Just, you know, that’s a standard doc issued by the municipality or state that you’re in just to make sure you’re not owed on back taxes, IRS fees or any restitutions, things like that. The most important thing which leads me to my next topic is the operating agreement. So that operating agreement clearly defines what percentage ownership each individual has in that business. So it could be 25-25-25, it could be 75 split amongst the rest and thirds, it could be any which way. But for the sole intent and purpose of qualifying for DSCR loans, we only need one person. And so you can actually amend and change that operating agreement as many times as you’d like. So there’s been scenarios where it’s, you know, Tom, Larry and Bob are in LLC together. Tom’s got all the money, but his credit is terrible. Larry’s got great credit, but no money. So you just give that person with a better credit a majority share ownership, as long as they’re all on that operating agreement together, you can still use Bob’s assets for funds or whoever had the worst credit score, I already forget. You can still use that for down payment closing cost reserves. You can still use that for any other funds that need to be verified and liquidated for that transaction. So that’s a big, big advantage. Like it’s very advantageous for investors to take pride in working with other investors because you can become more bankable when you learn how to be creative with structures of operating agreements. So that’s what I love to do. I mean, and at the end of the day, right, it’s all about teaming up with others that you know in the area and other people that, you know, hey, I have a lot of time on my hands, but I don’t have any gas to put in the car. This guy has no time, he’s a surgeon, but he’s got a lot of gas to put in the car. So you find those people that, you know, it’s like putting a piece of a puzzle together. And that’s the super, super cool, creative part about that.
Richard
0:11:25 – One quick clarification I’ve got for you on this topic. You’re talking specifically about creating a membership agreement in an LLC for the purpose of buying property through the LLC, and this is not buying it personally and then quit claiming it over to the LLC.
Devin
0:11:41 – Correct that’s that is correct this is buying it under the LLC and closing under the LLC there is no need for a quit claim in DSCR loans you are funding directly to the business. Now when you get into the nitty-gritty of whatever lender and broker you work with, you’ll find out that there’s a difference out there of types of programs, you know, recourse, non-recourse, do you report to credit, do you not report to credit, that’s a separate, you know, layer of the qualifying process. When you do non-recourse, you basically don’t have the loan report to personal credit, right? Now, I will say, with also all recourse loans, some lenders and investors out there also don’t report to credit. It all depends on who their servicing purchasers are on the back end of the secondary market because whoever they report to servicing are the ones who will report now on the DSCR loans that are non-recourse or recourse but they don’t report to credit. The only time that you would see that populate on someone’s credit report is if they, you know, went into default or delinquency or foreclosure then they have to you know they have to repress it and they have to they have to issue that but there’s no need for a quick claim that closing no not at all and that’s again that’s one of the luxuries of using these products.
Richard
0:13:02 – Yeah the reason I was clarifying that is because many financiers that I’ve spoken to previously say that it’s very difficult to borrow money as an LLC.
Aaron
0:13:14 – When I worked with Devin and as we work together on our first loan, our first deal, I’m in an LLC with two other partners and I’ve, you know, I’ve purchased properties under the name of an LLC and it’s very, very complicated. And so I know what the experience is like having to do it through an LLC, not as an individual, then quit claiming, right? So there’s all kinds of documentation. One of the words that Devin used just now was the word luxury. There is quite a luxury to being able to work with Devin because he cuts through all of that legitimizing process for the LLC. You know, he cuts that out. He makes it possible for us to consider the property. And this is what I love about Devin. The property is the most important part of this. Right? So Devin says, if I call Devin and I say, hey, there’s this house I want to buy, what kind of documents, you know, information do you need from me in order to consider this loan? He’ll say, I don’t need anything just yet, send me the property address. In fact, in September of last year, there was a property that came up that I wanted to purchase. I called Devin on the phone from the streets of Manhattan and I said, Devin, I’ve got this house that I’m looking at purchasing, can we talk about it? He said, yeah, what’s the address? And so we immediately started talking about the address and the goal of the conversation. Yeah. Yeah It was a cool conversation because I was in a one of the parks up there. That’s a super famous park I can’t remember right now But Bryant Park now I was it was one of those parks in Manhattan where it’s a there’s a green space That’s fenced and it’s surrounded by all of these houses So I can’t yeah, I can’t remember exactly where it was so but long story short.
Devin
0:14:49 – It’s a big place.
Aaron
0:14:50 – Yeah, it’s huge. You know, we chatted on the phone and Devin was able to sit at his computer while I’m walking around looking at beautiful Manhattan and he was able to, you know, work with the numbers that were there. He was able to qualify the loan based on the property, not based on my credit, right? And he was able to say, you know, what’s the name that you’re purchasing this under? Well, it was an LLC. And he said, okay, well, I don’t need any of that information right now, let’s just look at the loan, let’s look at you, let’s run the basic numbers. And then he was able to send me over several options. And Devin, that’s one of the things that I would love for you to speak about is how you are connected to different financers, you know, and different groups that are able to fund that loan. It’s not just one bank. And I think that’s what really sets you apart for our investors as they’re considering moving forward. And so I just want to hand it back to you. How is it that you have collected so many potential lenders to work with?
Devin
0:15:44 – Fail falling forward is the best way to frame that in one sentence. You know, the reason we’ve cultivated such a wide arsenal of reliable and responsible lending partners is because we’ve been around for a very, very long time. And, you know, once you learn the internal process of a lender and you iron out the kinks, it’s kind of like getting in a relationship with your first girlfriend or your boyfriend. You know what you like, you know what you don’t like, and if you work together, great, then you keep moving forward. If you don’t, you break up. But I mean, we have over 500 investors east to west coast and private, wholesale, retail, local, brick and mortar, mom and pop, credit unions. And the reason we have all these outlets is because every loan scenario is a snowflake. There isn’t a single loan. Some of them may be similar at face value, but when you dig into the numbers of things and you put it in the underwriting, every loan’s a snowflake. So you gotta be able to learn the vetting process from the position I’m in, which is why there’s a preset list of critical questions that I go over with each borrower. But yeah, each one of our partners is really nuanced and focused on what they do. And again, the reason we have them is because I like to give options, right? I never just like to take control of a scenario. I say this all the time, it’s the borrower’s plane to fly and mine to make sure that we don’t crash. So if I can provide the options with them, with also educating them on why I’m giving them these options you know, that allows them to feel the power of making the decision. I don’t wanna make the decision, I just wanna give you the proper tools to make an educated decision on your own. And if you’re happy, then I’m happy, then I’m doing my job right. And so when I price these deals out, right, whether it’s a purchase or a refi, fix and flip, whatever it is, I generally like to give at least, you know, two, three, maybe sometimes four options. And I put it all on a matrix. And it’s very, very easy to, to see, you know, black and white, and you compare apples to apples, what’s this lenders rate? What’s their terms? What’s the pre-tenant penalty? What are the internal fees? What are the post-closing maintenance expectations? What’s the pros and cons? And then I go into a little bit more detail, personal opinion, you know, and then if they ask if they want more information, how does it affect my cashflow, my future amortization schedule and so forth. As much detail as the borrower, the buyer wants, I’m willing to give, right? Because some people are overstimulated analysis by paralysis folks, and then some people want just the bare bones. They have certain numbers that they know that they’re hitting as their target, and I’m very transparent about what they wanna see, right? And I’ll give as much or as little as they need to feel comfortable to take the next steps in getting an application filled out, doc submitted, and the ball rolling forward. The reason I do this and not, I haven’t come across another brokerage or brokers that do this, is because as an investor myself, but also as someone who works in the banking industry, these lenders and banks in general, on a term sheet, they like to use language and lingo that make the average person feel small or like terms that don’t make sense, right? And so I boil all that fat off the bone and I give it to you flat out, like no sugar on top, here’s literally what this says. And if you don’t understand it, ask me questions. And I’ll spend as much time or as little time as needed for that person to make the next step moving forward. And I think that plays a huge role in establishing relationships that are mutually beneficial, just like the one that we’ve created here in this circle is, you wanna be able to learn, but also be the student and be the teacher. I don’t like to be the smartest person in the room, right, because if I am, I’m not in the right room. Generally speaking, I want to be able to learn from you just as I want to be able to teach you. So that’s kind of like the relationship I carry as a broker and as an investor, and I kind of implement that mindset and that strategy in my approach through helping people grow and scale their portfolios and how I explain deals. I hope I kind of hit it on the head there. I think I might have skipped over a few things but I hope that was sufficient.
Richard
0:20:11 – One thing I was just thinking about as you were saying all of that, many investors, particularly new investors, they often find a deal that they need to close quickly. So across your products that you have available, do they have varying amounts of time in which they take to close the loan?
Devin
0:20:28 – Great question again it varies I could have somebody who can close a DSCR you know on a baseline DSCR loans should take only between 20 and 25 days but if we have a borrower who is super complicated let’s give it a scenario this borrower isn’t closing under an LLC. They’re closing under their name. And then I get their bank statements, and I see all this money going in and all this money going out and other transactions, and the more things we see occurring on the back end, the more questions, you know, layers that are added to that sandwich, and the longer the time takes. So, I guess, without going down the line of explaining scenarios, what I would recommend for people to have a quick, speedy transaction is have a designated bank account with all your funds and have no transactions, no funds, you know, moving in and out of there for at least 60 days because that way, when an underwriter takes a look at that statement, all they see is the money you have, nothing going in or out, and then they’re not gonna raise any more flags. Typically what happens is people will get their personal finances involved, like, you know, I got my four checkings accounts, my two savings, I got a shared joint account with my daughter and they’re trying to meet this timeline, but they don’t realize all the things they’ve done even before they went under contract has these implications in the latter aspects. So that’s like, you know, that’s an example of having clean assets. Another example is having all the, if you are closing in a business name, have all your docs in a row for the LLC. You don’t technically need your LLC established if you go under contract, but you do need it before you close. And depending on what state you’re in, depending on what municipality, listen, California sometimes takes three weeks. Connecticut takes two hours. Depends on where you are and how long it takes for these docs to get back to you, registered and things of that nature. So I would say, like what I advise most of the times is that before people even go under contract, we just do a quick housekeeping sweep. Do you have your assets? Is your LLC okay? Do you have your reserves? Do you have all your boxes checked? Then I can give an ample, a very, very accurate estimate of okay, we can probably close in 22 days, or how many ever days. If people come to me last second without having done that due diligence, and we have to pick up kind of where someone else left off, and then there’s all those other curves and hoops to jump through in the road, then it can be a little bit of a longer process. So that’s kind of the skinny on timeline.
Aaron
0:23:06 – Devin, what we’d like to do is we’d like to come back to some of the nuts and bolts of just how it is that you do what you do, and so I’m gonna ask a couple of questions that are very closely related. The first one is going to be I’d love to hear how you compare interest rates with your loan products versus the traditional loan product. Before we even answer that question, we’re going to remind the listener that Devin’s product is a much easier product to get into and the interest rates are going to be higher than a traditional mortgage. So again, going back to that whole luxury concept, Devin’s gonna do a lot of the work for you, he’s gonna make sure that you get a great loan, the interest rate’s gonna be a little higher, as he mentioned just now, the closing time’s a little faster on the loans that Devin provides. So there’s kind of a give and take that’s there. So I wanna talk about interest rates, and then I’d also like for you to tell us at least one story of an investor that you worked with. We’d love to hear about what you would consider to be a typical success story from your experience that our listeners could say, you know what, that could be me. And if I’m that guy or that girl, then Devin really could be the right lender for me. So first interest rates, and then I’d love to hear an example of what’s worked out and how that was working with that customer.
Devin
0:24:20 – Before I even get into the interest rate stuff, I always like to, when people ask me about situations and scenarios, there’s a lot of good, like people always like to share the good stuff, but not a lot of people like to share the bad stuff. So if anybody ever wants to reach out to me and ask me about how to avoid tricky things, I’m very open and honest about that too. But yeah, so interest rates really on average, like I say, with DSCR investment loans, if you’re buying a traditional single family, multifamily house, and you’re trying to get a 30-year fixed mortgage, they’re going to be about 200 to 400 basis points higher than a conventional loan. Now, with regard to credit and all those other pillars I mentioned to before, most of the times you have to look at the numbers. 200 to 400 basis points out of my mouth right now may sound like a lot to people who don’t know what that translates to. But if you look at the numbers, it, most of the times it’s a difference of 30 to 40 bucks a month. Right? And the reason that they’re higher is because these are different types of loan products. Again, they’re non-qualified mortgage investment products, and these private investors are willing to put out that capital in order for you to cashflow. But the benefit of using these products, again, is speed to close, you don’t have to get your personal finances commingled with business. You can close in the LLC, you don’t have to do this whole quick claim thing. And once you establish a relationship with a lender or a broker, and they know what your business model is, the first deal is always the toughest, always the longest. And if you keep that same relationship going, they automatically know you won. People call me back all the time. It’s gotten so fluid with one gentleman where he’ll just send me a purchase contract and I know exactly he has one business model. He buys, he renovates, his budget’s always about $65,000-$70,000 and then he wants to rent it out immediately. He’ll send me the same scope of work, the same sales price without like any prior conversation and I know exactly what he wants. And we get his fix the flip loan dones in about seven to eight days. Like seven to eight days, clear to close, hard money, funded. And then we go on to refinance and stabilize his products within the next 60 days so he can cash out on day 91. So once you kind of get that momentum going, that’s why people like using these products. And they’re okay with the higher interest rate. Because you’d much rather take, Oh my goodness, an extra 30, 35 bucks a month than talking to a penny Mac or a rocket or, you know, any other traditional bank and they’re, Oh, your DTI is a little high in the backend. You know, you have to use a vacancy rate at 25% and then, you know, you need a co-qualified, whatever it is, it’s always something. But when you’re working with a investment-focused broker, they know speed, efficiency, transparency are at the utmost importance of the deal, and they understand that what needs to happen can’t be a byproduct of all these extra questions being asked, so that’s why these products were created by investors for investors to be able to scale in a meaningful time. Now, jeez, yeah, like I said, I love everybody I work with. Every time I pick up the phone, everybody’s asking me how my day’s going, and I always say the same thing. I have a heartbeat and the sun is up, right? So if I’m thankful to be on the other end of this phone talking to somebody, then my day’s really good. But I just have so many great stories. I guess I would say that my biggest success story I can share as of right now is there’s a Investor down in st. Petersburg, Florida who he’s about 30 35 years old very strong W-2 paying income job, but didn’t have a lot of financial literacy and what I mean by that is He had a great job fantastic, outstanding gentleman, but he didn’t have a way to save his money. And I think this kind of goes back to how you were raised, what you learned from your parents, you know, you’re a byproduct of the places you come from and the phases you go through in life. And he’s like, man, I really want to invest in real estate and I really want to own a house. So this is a guy who’s making more than six figures, wants to invest in real estate, wants to own a piece of property himself, but still pays rent and doesn’t have more than $5,000 in the bank. And so if you can think about that for a second, you’re like, wow, how do you make more than six figures and not have more than $5,000 in the bank? Right, granted it’s an expensive world we live in in this day and age, but you know, so I sat down with him and before we even started talking about real estate, we went out to lunch a couple of times, we went, you know, had sushi, all you can eat, what’s those like sushi noodle boards, all those delicious, but anywho. And I talked to him and I’m like, well, let’s kind of back up a bit, right? And let’s talk about your month-to-month expenses. And this is one of the reasons why I love doing what I do, is because I get to see a lot of things that people try to hide, you know, from their day-to-day, you know, from their lives. I can see all the skeletons in the closet. I know you’re making, I can see the credit reports, I can see the delinquencies, I can see a lot of things. But with that knowledge, I can help. So I don’t come out outright and say, hey, I’m a certified financial planner, because I’m not, but with the experience and the situations I’ve seen, I can provide some general, very, very good value to people, and they’re like, wow, I never saw it in that light. So in this instance, I said, you know, you’re making X amount a month. Here’s your monthly expenses. We’re going to set a goal for you, right? And our goal is to save, let’s, I think it was, I think it was $50,000 in six months. I said, you know, you have to go out to party, go out dinners, blah, blah, blah. We’re going to try to make sure that your life, life doesn’t change as much as it, you know, as it is right now, but we’re going to kind of stick to this goal. And the thing was, I set up an accountability test with him because you can tell someone a plan and they can’t do it, but if you set up an accountability partner and you have check-ins, like hey, reach this goal, and then you’re rewarded for something, you know what I mean? You actually feel some sort of, it’s kind of like training for like an Ironman or your next game, you feel like there’s something kind of kicking you in the butt behind you, right? So he did it. Super proud of him. He got to like $47,000 in six months, which he had never had that much money in his life. Never. And so, okay, now we’re ready to go under contract. And again, this was about two, three years ago. I think it was closer to three years. He utilized a 3.5% down FHA loan. And the reason he did that is because I told him what house hacking was. And I said, you know, such and such, we’ll just call him Jimmy. I said, Jimmy, what you’re gonna do is you’re gonna buy this multifamily for the X amount of down, X sales price. You’re gonna occupy one unit and you’re gonna rent out the other. That other tenant is gonna help pay for your mortgage. And within 12 months, we’re gonna find you another place and you’re gonna move out and then you’re gonna pull in a second tenant and have them rent out this unit. Then you’re gonna have two additional streams of quote unquote passive income and then we’re gonna move on to your next one. Guys, before we even got to the end of the year, he had taken this strategic savings plan that I gave him and doubled his money. Because of the fact that he was earning extra additional income and because of the fact he understood like how to live not you know so aggressively with going out. He just had a better plan. Right so all you need sometimes is a second set of eyes and someone who’s willing to you know help you and guide you in the right direction. And here he is fast forward he saved up enough for his third investment property in three years and he’s already I think he’s netting a third of his annual W-2 income. So this is a gentleman who went from having $5,000 in the bank to making good money but not having any idea how to manage that money to owning his own house, being a real estate investor, house hacking and to almost covering his full W-2 income in 36 months. I could not be more proud of this kid. And now we go out to dinner once a month, we play golf a lot. But again, that’s what I do live for. I mean, this industry is not about money. It is not. And if you’re talking to somebody who’s charging you high rates or high prices or costs, they’re in it to steal from the blind. But I do this because I love it, I love to make a difference in people’s lives, and when you can see someone make a true change like that, that is priceless. There isn’t a loan origination fee that could ever amount to the feeling that you get from somebody coming up to you and saying, Devin, thank you so much, I’m gonna take this to the grave. And so that’s why we do what we do.
Aaron
0:33:40 – I hear that, yeah, that’s how we feel about investment property management as well, and sales. You know, this is what we do, it’s what we dream about, it’s what we teach our kids about. Like, my kids are getting a phenomenal education just by being around me and watching what I do every day. So yeah, we live, breathe, sleep, and eat this stuff. So we’ve gotten a great feel for, you know, the vision for what it is that you do. Just for today, thank you so much for the introduction to what you do, to you and the DSCR Loan Program and then just all the different ways that you can find money to help real people fulfill their vision of investment property ownership. Thank you for your time.
Devin
0:34:22 – Yeah. Thank you so much, Aaron. Thank you, Richard. It’s been an absolute pleasure with you guys.
Richard
0:34:26 – You’re welcome before you go. Could you just tell us how someone can get in touch with you?
Devin
0:34:33 – Yeah, absolutely So the best way to always get in touch to me is my cell phone always on it 99% of the day. Everything’s kind of done from my phone. So text you’re calling me always 860-538-3672 If you have a scenario or you want to ask some general questions, you can always email me as well. My email is my first name, that’s D-E-V-I-N, and then at MillerHomeLending.com, that’s M-I-L-L-E-R-H-O-M-E, Lending, L-E-N-D-I-N-G.com. And then the other good way to reach me is obviously on social media. You can follow me on TikTok or Instagram or Twitter at Devin Peterson Lending. And I also provide a bunch of great information out there and content. Most of the time, my content is me filming myself playing golf on the golf course. But then I throw in a little twist about how to be creative with your finances and how to be a real estate investor while people kind of watch me walk around the tracks and lose a couple of golf balls and maybe cuss a little. But you gotta keep it flavorful for the folks.
Aaron
0:35:38 – That’s true.
Richard
0:35:39 – Definitely. We’ll include your contact details in the show notes as well. So for anybody listening, you can go straight to the show notes and see Devin’s contact details there. Well, thank you very much for being on today. It’s great talking to you.
Devin
0:35:51 – Yes. Thank you. It’s an absolute pleasure. I wish you guys all the best.
Aaron
0:35:55 – Wonderful. Thank you so much, Devin.
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