So wouldn’t you like to know anytime you asked for a loan for a real estate deal that you already basically HAD IT IN THE BAG because you were giving the lender exactly what they are looking for? If you’ve always wondered how real estate money gets from underwriters to YOUR DEALS, then you’re going to love today’s episode. I got on the phone with Heather Dreves, director of funding for Secured Investment Corporation, a real estate lender present in 90 percent of the U.S. that specializes in real estate lending (so you’re not dealing with someone who doesn’t understand your business like you probably have if you ever tried to get funding from a private lender or a mega-bank), to find out exactly what makes her underwriters approve a loan. The answer was surprisingly simple, as you’ll see.
Here’s what Heather told me:
In the end, we’re looking at the “whole story,” she said, noting that a good loan not only will have a borrower with “skin in the transaction,” meaning that the borrower has a vested interest in making the deal work, but will also have some education under their belt. Here’s the interesting thing: just because Heather’s underwriters require education does not mean that if you’re not already a seasoned investor, you can’t get a loan. In fact, Secured Investment Corporation actually has training that they offer to investors to educate new investors about buying properties and rehabbing them. “That way, we know we’re dealing with someone who knows what they’re doing because, well, we know what we’re doing!” Heather told me. I like that: a lender who is going the extra mile to make SURE your deals are good and that they succeed instead of just assuming that they can foreclose on you and still make good if your deal falls through on your end.
I asked Heather about credit as well, since we all know that real estate investors don’t tend to have the greatest credit because so many of us have multiple mortgages, have our credit pulled regularly as part of the financing process, or have more than one project going at once. “We do pull credit on most of our borrowers,” Heather told me, but she added that in her experience, using credit alone to evaluate a borrower is “skewed.” She said, “We’re not looking for a credit SCORE, we’re looking for a willingness to make payments and good payment habits.” That means that if you have late accounts all over the place going back 10 years or so, you may have a problem, but if you have good payment habits and just a so-so credit score, your borrowing “story” as Heather refers to it, is still a good one.
“We call what we do storybook lending,” Heather told me, “because we really want to know the investor’s story. What’s going on, where you came up with the amount of money you need, and what your experience is.” She added that these things don’t all have to be perfect because they are looking at the total picture, the WHOLE STORY, instead of just a few isolated pieces. And here’s an interesting side note, folks: you can see that Heather’s company does some FANTASTIC due diligence on their lending investments, and YOU can benefit from that due diligence in another way if you have money you want to INVEST in lending with someone who clearly takes care of their lenders’ interests as well as their investors’ interests. You can learn more about how to get involved with Heather on the lending side by checking out the show notes in the REI Today Vault. Let’s just say they’re basically the “Amazon.com of real estate lending” when it comes to full service for their lenders…
Now, I think you’re probably starting to see what an INCREDIBLE ADVANTAGE it is to have a real live lender on speed dial, as it were, to talk to you about your deals, your borrowing, and your strategies. This is only the tip of the iceberg, folks. Heather told me SO MUCH MORE than I could ever fit into a single podcast, so I strongly recommend that you read the entire, uncut interview in the REI Today Vault and check out a special REI Today Report on Secured Investment Corporation that lays out, in three EASY POINTS, the three BIGGEST MISTAKES Heather encounters investors making on a DAILY BASIS that cause them to lose out on funding for deals that SHOULD be good ones. We’ve also got an exclusive training from Heather and her colleagues at Secured Investment Corporation in the vault, it’s called “6 Steps to Getting Your Money to Outlive You,” so head over there right now to claim yours at www.rei.today/vault. Don’t delay, and if you’re not yet a member, don’t worry! You can become one right now by texting REITODAY no spaces, no periods to 33444. When you do, I’ll provide you with fast, immediate access to these reports and trainings as well as a lot of other timely, insightful, PRACTICAL information that will help make your investing safer, faster, and more profitable.
And folks, remember, when you join the Vault you join our community, which means you have the opportunity to network with me, my guests, and your fellow listeners across the country. So go ahead right now and text REITODAY no spaces no periods to 33444 or visit us online at www.rei.today/vault.
REI Nation, thanks for listening in and please always remember this:
Your best investment is your own education.
Carole Ellis is the host of Real Estate Investing Today, a popular 9-minute daily podcast focused on educating real estate investors about the important topics that will make their investing SAFER, FASTER, and MORE PROFITABLE. She's also the editor of the Bryan Ellis Investing Letter. She has more than a decade's worth of experience in and reporting on the real estate industry and, additionally, has written dozens of courses on the topic. Carole lives in Kennesaw with her husband, Bryan, and four children. She believes wholeheartedly that your best investment is always your OWN education.