Podcast Summary: The Science of Flipping Episode Title: F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage
Host: Justin Colby, Bleav
Release Date: April 4, 2025

1. Introduction to Tim Herriage and Turnus

In this enlightening episode of The Science of Flipping, host Justin Colby welcomes his dear friend and innovative real estate investor, Tim Herriage. Tim, the founder of Turnus, shares his visionary approach to disrupting the traditional lending systems that have long dominated the real estate investment landscape.

2. The Problem with Big Banks in Real Estate Lending

Tim begins by addressing the inherent issues within the traditional lending framework, particularly the reliance on Wall Street institutions. He highlights the inefficiencies and rigidity that big banks impose on real estate investors:

Tim Herriage [02:22]: "Now, almost 95% of the money flippers use comes from Wall Street... it's slow. It's hard to predict."

Tim criticizes the cumbersome processes, such as frequent credit checks and lengthy appraisal periods, that hinder real estate transactions:

Tim Herriage [02:55]: "They ding your credit every other week. Appraisals take two months, and now an appraisal is like $900."

3. The Birth of Turnus and Its Mission

Driven by these challenges, Tim founded Turnus with the mission to bring flexibility and speed back to real estate financing. He recounts his journey from partnering with Blackstone to creating a company that reverses the very system he once helped build:

Tim Herriage [03:05]: "But no, I mean, we just started off with the concept of if I can buy a house with pictures and comps, why can't I make a loan on a house with pictures and comps?"

Justin adds context to their collaboration, emphasizing the mutual respect and shared vision that led to the establishment of Turnus.

4. Crowdfunding and Democratizing Real Estate Finance

A significant portion of the discussion revolves around Turnus's innovative crowdfunding approach, designed to democratize access to real estate financing. Tim explains how Turnus allows everyday investors to own shares and participate in the company's growth:

Tim Herriage [07:26]: "Turnus is Latin for threefold... we have a three core pillars approach: making money, generating passive income, and building a legacy."

He elaborates on the strategic acquisition of the Turnus.com domain and the subsequent crowdfunding campaign, highlighting the company's commitment to inclusivity and transparency.

5. Core Values of Turnus: STARS Acronym

Tim introduces Turnus's core values encapsulated in the STARS acronym—Speed, Transparency, Accountability, Respect, and Service—which guide every aspect of the company's operations:

Tim Herriage [17:16]: "We really live, eat, breathe and sleep our core values. SPEED, TRANSPARENCY, ACCOUNTABILITY, RESPECT, and SERVICE."

He emphasizes the importance of these values in building trust with clients and maintaining ethical standards in lending practices.

6. Flexibility and Speed in Lending Processes

One of Turnus's standout features is its ability to provide swift and flexible financing solutions. Tim contrasts Turnus's streamlined processes with the rigid protocols of big banks:

Tim Herriage [38:17]: "We charge 12% interest and 2% origination, with a $2,000 closing fee. If you're in the Founders Club, that fee is reduced to $1,500."

He underscores the advantage of Turnus's approach, where decisions are made based on asset potential rather than stringent credit scores, allowing for faster deal closures:

Tim Herriage [40:45]: "It's that easy. If your pictures are just the exterior and back, we'll ask for more. Otherwise, it's a quick yes."

7. Personal Stories and Relationship Building

The episode delves into the personal relationship between Justin and Tim, illustrating how genuine connections and networking have been pivotal in their success:

Justin Colby [25:23]: "I was invited to a Dallas meetup... a decade later, here we are. You on my podcast, and now business partners."

Tim shares anecdotes from industry events and his experiences speaking at major conferences, highlighting the importance of putting oneself out there to build meaningful relationships.

8. Future Vision and Technology Integration

Looking ahead, Tim discusses Turnus's commitment to leveraging technology to enhance their services. He mentions the integration of machine learning and AI to streamline underwriting processes and improve customer interactions:

Tim Herriage [42:22]: "We're using AI and machine learning to underwrite deals online and answer customer questions efficiently."

This technological advancement aims to further reduce the time and complexity involved in real estate financing, aligning with Turnus's core value of speed.

9. Opportunities for Investors and Conclusion

The conversation culminates with Tim inviting listeners to become part of Turnus's growth through their crowdfunding platform. He stresses the dual benefits of financial returns and active participation in shaping the future of real estate finance:

Tim Herriage [34:13]: "The value in this offering is twofold. First, you have ambassadors as shareholders. Second, our annual shareholder meeting fosters a community that holds us accountable."

Justin reinforces the credibility and reliability of Turnus, encouraging his audience to trust in the company's vision:

Justin Colby [44:43]: "If it's good enough for me, it's damn sure good enough for you."

Tim concludes with a reminder of the risks involved in any investment, advocating for informed and conscientious participation:

Tim Herriage [44:55]: "If you can't afford to lose that thousand dollars, don't invest. But if you want to support a company obsessed with customer experience, check us out."

Key Takeaways:

• Disruption of Traditional Lending: Tim Herriage aims to dismantle the slow and rigid lending systems dominated by big banks, offering a more flexible and rapid alternative through Turnus.

• Crowdfunding for Inclusivity: Turnus's crowdfunding model democratizes real estate financing, allowing everyday investors to participate and benefit from the company's growth.

• Core Values Driving Operations: The STARS acronym—Speed, Transparency, Accountability, Respect, and Service—guides Turnus's approach, fostering trust and ethical practices.

• Technological Integration: Turnus leverages AI and machine learning to enhance underwriting processes and customer interactions, aligning with their commitment to speed and efficiency.

• Emphasis on Relationships: Building genuine relationships and networking has been crucial to the success and expansion of Turnus, as exemplified by Justin and Tim's partnership.

• Investor Opportunities with Accountability: Turnus invites investors to not only gain financial returns but also to actively participate in shaping the future of real estate finance through community engagement and accountability.

Notable Quotes:

• Tim Herriage [02:22]: "Now, almost 95% of the money flippers use comes from Wall Street... it's slow. It's hard to predict."

• Tim Herriage [07:26]: "Turnus is Latin for threefold... we have a three core pillars approach: making money, generating passive income, and building a legacy."

• Tim Herriage [17:16]: "We really live, eat, breathe and sleep our core values. SPEED, TRANSPARENCY, ACCOUNTABILITY, RESPECT, and SERVICE."

• Justin Colby [25:23]: "I was invited to a Dallas meetup... a decade later, here we are. You on my podcast, and now business partners."

• Tim Herriage [34:13]: "The value in this offering is twofold. First, you have ambassadors as shareholders. Second, our annual shareholder meeting fosters a community that holds us accountable."

• Justin Colby [44:43]: "If it's good enough for me, it's damn sure good enough for you."

• Tim Herriage [44:55]: "If you can't afford to lose that thousand dollars, don't invest. But if you want to support a company obsessed with customer experience, check us out."

Conclusion

This episode serves as a comprehensive guide to understanding Tim Herriage's innovative approach to real estate financing. By challenging the status quo and implementing a customer-centric, technology-driven model, Tim and Turnus are paving the way for a more inclusive and efficient real estate investment landscape. Listeners are encouraged to explore Turnus's offerings and consider the unique investment opportunities presented.