Wake Up to Wealth Podcast: Episode Summary
Title: Unveiling Real Estate Investment Strategies with Tim Herriage
Host: Brandon Brittingham
Guest: Tim Herriage
Release Date: December 18, 2024
Introduction and Guest Background
In this episode, Brandon Brittingham welcomes his long-time friend and seasoned real estate expert, Tim Herriage. Tim shares his extensive journey in the real estate industry, highlighting his transition from the Marine Corps to becoming a prominent figure in real estate investment and lending.
Key Points:
- Tim's Journey: After serving in the Marine Corps, Tim entered the real estate sector as a project manager for a house flipper in Dallas. Within a year, he advanced to an acquisitions role and subsequently launched his own business.
- Entrepreneurial Ventures: Tim co-founded a home investor franchise with his wife, which grew to become the number one nationally. Despite facing challenges during the 2008-2009 financial crisis, they successfully expanded into various facets of real estate, including multifamily and commercial investments.
- Current Endeavors: Tim is the Executive Director for RCN Capital and recently launched Turnus, a company focused on being the "people's lender," emphasizing customer-centric lending practices.
Notable Quote:
"In the real estate investing world, you cannot buy a track record."
— Tim Herriage [00:30]
Real Estate Investment Timing
Brandon and Tim delve into the crucial question of timing in real estate investments. Tim emphasizes the importance of seizing opportunities promptly.
Key Points:
- Always the Right Time: Tim asserts, "the right time's always yesterday, the next best time is today," encouraging investors to act swiftly rather than waiting for perfect conditions.
- Position as a Lender: Currently, Tim focuses more on lending to investors rather than direct property investments, leveraging his extensive experience to support others in the real estate market.
Notable Quote:
"The right time's always yesterday, the next best time is today, and if you can't do it that you need to do it tomorrow."
— Tim Herriage [03:33]
Owner Finance Notes Explained
Tim provides an in-depth explanation of owner finance notes, a strategy often misunderstood by many investors.
Key Points:
- Arbitrage in Owner Financing: Tim describes owner finance as a form of arbitrage, where he finances the sale of a property himself, earning interest that exceeds traditional bank rates.
- Cash Flow and Wealth Accumulation: By offering owner finance, Tim generates substantial cash flow and builds wealth without the typical headaches of property management.
- Dual Strategy: Combining rental properties with owner-financed loans ensures both asset growth and steady income streams.
Notable Quotes:
"It's really arbitrage. So what you do is... put the 200,000 on a 15-year amortization. And if we charge 12% on a 30-year amortization, it covered that payment and you owned your asset free and clear in 10 years."
— Tim Herriage [05:52]
"Owner finance notes are one of the best income streams I've ever been exposed to."
— Tim Herriage [07:00]
Liquidity and Financial Strategies
The conversation shifts to the liquidity of real estate notes and innovative financial strategies that enhance investment flexibility.
Key Points:
- Liquidity of Notes: Tim explains how real estate notes can be more liquid than physical properties, allowing investors to leverage them for lines of credit.
- Yield Stream Concept: By maintaining a consistent yield stream from owner finance notes, investors can access capital efficiently and reinvest to scale their operations.
- No Money Down Investing: Tim highlights strategies that enable investors to enter deals without significant upfront capital by leveraging private money and selling notes.
Notable Quotes:
"You can create notes and sell them actually as a strategy and as a business. There's way more people out there that will buy debt than you think."
— Tim Herriage [12:39]
"It's a way to do no money down real estate investing because you can get into the deal with private money."
— Tim Herriage [13:05]
Lessons from the Marine Corps
Tim shares valuable life lessons from his Marine Corps experience that have been instrumental in his business success.
Key Points:
- Adaptability: The ability to pivot and find solutions in dynamic environments is crucial in both military and business settings.
- Teamwork: Effective collaboration and reliance on a strong team can outperform larger groups lacking cohesion and discipline.
Notable Quotes:
"Adaptability and always having a belief in a positive outcome is the number one thing that I learned in the Marine Corps."
— Tim Herriage [15:43]
"The power of a team... They've proven that they can work together in a team, collaborate, follow orders, and focus on getting the job done."
— Tim Herriage [16:00]
Launching Turnus: A Customer-Centric Lending Platform
Tim introduces his latest venture, Turnus, which aims to revolutionize the lending industry by prioritizing customer needs over traditional Wall Street demands.
Key Points:
- Mission of Turnus: Focused on emotional connection, transparency, and dependability, Turnus seeks to provide a more personalized lending experience.
- Innovative Lending Practices: Turnus eschews traditional credit pulls and appraisals, instead assessing loans based on asset value and the borrower's business performance.
- Expansion Plans: Currently operating in eight non-judicial foreclosure states, Tim aims to expand to all 23 such states by early next year.
Notable Quotes:
"Turnus, my new company, is actually Latin for threefold, because I really broke it down to those are the three things lenders should provide that they're not."
— Tim Herriage [17:31]
"We're really focused on trying to become the people's lender and always putting the customer's needs ahead of our own."
— Tim Herriage [21:08]
Final Insights and Closing Thoughts
As the episode concludes, Brandon invites Tim to share his personal definition of wealth, tying back to the podcast's overarching theme of financial transformation.
Tim's Definition of Wealth:
"When I die, Brandon, I plan to be broke on the last day of the month and extremely rich on the first day of the month... wealth is knowing you cannot outspend your return and your income that's already on its way to you."
— Tim Herriage [24:09]
Brandon appreciates Tim’s contributions and encourages listeners to connect with him through Turnus for investment opportunities and financial guidance.
Key Takeaways
- Seize Investment Opportunities: Tim emphasizes acting promptly in real estate investments to capitalize on market conditions.
- Diversify Strategies: Combining rental properties with owner finance notes can create multiple income streams and enhance financial stability.
- Leverage Liquidity: Real estate notes offer unique liquidity options, enabling investors to access capital efficiently.
- Embrace Adaptability and Teamwork: Lessons from the military translate into effective business practices, fostering resilience and collaboration.
- Innovate in Lending: Turnus represents a shift towards customer-centric lending, prioritizing transparency and dependability over traditional financial metrics.
Resources and Contact Information
- Turnus Website: turnus.com
- Tim Herriage on Instagram: @timherridge
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