Today on Unstoppable REI Wealth I was joined by Byron Enriquez. Byron has a 20-year career in the finance industry using analytics driven decision making that is instrumental in the growth and development of top and bottom lines. Corporate strategy, risk management, leadership abilities led to his banking success. A strong approach to coaching and mentoring salespeople has been instrumental in the methods of success Byron has developed. He takes a casual style to handling complex financial transactions, mitigating risks, and making profitable outcome for all parties. His long standing relationships have allowed the business endeavors to flourish. He understands finance. He understands fix and flip. He understands real estate. More importantly. He knows how to put together a deal on the financing end. So it's a win for you and a win for him. Byron shares so much great information today that could have pulled out 20 plus key points but at the end of the day I pulled just 5 for you to take a look at. Key Points Made Throughout The Episode: (7:40) When people ask me what's the secret? People say, what's the secret sauce. So there is no secret sauce. It's effort, it's dedication. It's doing the right behaviors, the right amount of times (14:21) Revamped the organization, took over and really put in a lot of the tools that I had learned over the way along the way prospecting how to do this, how to follow up, a lot of the things that I think relate to the real estate world. And, the real estate investment side of it. It's following up, it's, doing your due diligence. It's making your phone calls. If you're going to door knock, the money is in the follow-up. (26:05) Teaching the youth that there's a path here to make some serious wealth through real estate, whether it be flipping homes, whether it be lending, whether it's investing. There's different ways to do so that a lot of times people aren't given these opportunities or are not shown the path to do that. (28:46) The operator that knows that this is give them a piece of the action and have the investor put together to package and to go to somebody like yourself. (35:41) That's our job to be able to mitigate that risk a for our protection and protecting our money. But if you, as an investor, I think to them is always like, I want to see you succeed because I want you to come back to me for your second, third, fourth, fifteenth. As always if you need anything come find me at billyalvaro.com and billyssecrets.com
Today on Unstoppable REI Wealth I was joined by Byron Enriquez.
Byron has a 20-year career in the finance industry using analytics driven decision making that is instrumental in the growth and development of top and bottom lines. Corporate strategy, risk management, leadership abilities led to his banking success.
A strong approach to coaching and mentoring salespeople has been instrumental in the methods of success Byron has developed. He takes a casual style to handling complex financial transactions, mitigating risks, and making profitable outcome for all parties. His long standing relationships have allowed the business endeavors to flourish.
He understands finance. He understands fix and flip. He understands real estate. More importantly. He knows how to put together a deal on the financing end. So it's a win for you and a win for him.
Byron shares so much great information today that could have pulled out 20 plus key points but at the end of the day I pulled just 5 for you to take a look at.
Key Points Made Throughout The Episode:
(7:40) When people ask me what's the secret? People say, what's the secret sauce. So there is no secret sauce. It's effort, it's dedication. It's doing the right behaviors, the right amount of times
(14:21) Revamped the organization, took over and really put in a lot of the tools that I had learned over the way along the way prospecting how to do this, how to follow up, a lot of the things that I think relate to the real estate world.
And, the real estate investment side of it. It's following up, it's, doing your due diligence. It's making your phone calls. If you're going to door knock, the money is in the follow-up.
(26:05) Teaching the youth that there's a path here to make some serious wealth through real estate, whether it be flipping homes, whether it be lending, whether it's investing.
There's different ways to do so that a lot of times people aren't given these opportunities or are not shown the path to do that.
(28:46) The operator that knows that this is give them a piece of the action and have the investor put together to package and to go to somebody like yourself.
(35:41) That's our job to be able to mitigate that risk a for our protection and protecting our money. But if you, as an investor, I think to them is always like, I want to see you succeed because I want you to come back to me for your second, third, fourth, fifteenth.
As always if you need anything come find me at billyalvaro.com and billyssecrets.com
[00:00:00] Billy: What's going on guys. This is Billy Alvaro, the unstoppable BA, and this is unstoppable REI wealth. I have one question. If you're a fix and flipper or a buy and hold of, what's the one thing you need after you have a deal, you need the money. Well, if you're looking for financing, And fix and flip buy and hold.
[00:00:17] Even your development projects. I just interviewed this dude, Byron and Enriquez is from the west coast out in California. The dude has it going on. He understands finance. He understands fix and flip. He understands real estate. More importantly. He knows how to put together a deal on the financing end. So it's a win for you and a win for him.
[00:00:36] If you're looking for cash for your deals, you don't want to miss this episode. Dial in, listen in, sit back, take notes and let's make you some money. I'll talk to you soon. Welcome to unstoppable real estate investing wealth. My name is Billy Alvaro, AKA the unstoppable BA former billion dollar mortgage banker gone bankrupt turned professional real estate investor where each week you'll learn the tools, strategies, systems, and secrets.
[00:01:06] Myself and other highly successful real estate investing entrepreneurs used to start, grow and scale their businesses, creating massive profits and how you can too. And we'll teach you how to put those profits to work. So you no longer have to get ready to finally experience financial freedom and generational wealth.
[00:01:26] Now let's get started. What is going on unstoppable REI wealth nation. This is Billy Alvaro unstoppable. BA back to you with another podcast, video podcast, audio podcasts, wherever you're listening to watching. I hope you were tuning in and enjoying what we were bringing to the table today. I have.
[00:01:47] So normally look, we're, I'm interviewing people, right. That are getting to start, grow or scale their real estate investing business. And if you know my background, if you've been watching this for some of time, you know that my background I was in banking, grew up a small mortgage broker shops with billion dollar mortgage banker.
[00:02:04] And today I have somebody who's actually in that space. Now he himself is a billion dollar banker. This is going to bring a lot of wealth here in speaking to him offline. And again, I don't know him personally. We just got to know what. And in speaking him offline, he does some really unique financing deals and he caters to our world real estate investors, whether you are.
[00:02:24] Single-family fix and flip long-term buy and hold crazy commercial deals, churches. I'm going to let him speak about what he does and how he does it. I'm going to bring him in now. His name is Byron Enriquez as I hope it didn't kill you last name
[00:02:39] Byron: it's okay. Byron Enriquez is close enough. You know, like I, like I've always said, you know, even my mom calls me different things every once in a while, so I'll take whatever I can get.
[00:02:47] Billy: Well, listen, man. Good having you on brother. I know you're on the west coast, right? You're out in California
[00:02:52] Byron: on the west coast, sunny west coast yeah.
[00:02:54] Billy: So, listen,
[00:02:55] let's get into your background, right? Like I was in mortgage banking and did a few years. I, you know, I got hit when that whole downturn happened.
[00:03:02] I ended up losing everything. You're in the residential commercial real estate investing space lending arm.
[00:03:09] Byron: I am. So, yeah, I've been in the business now for, I want to say about 20 close to 20 years prior to getting into the banking world or into the mortgage banking. I was in the Forex trade. So foreign exchange trader for the banks.
[00:03:21] That's what I went to school for. Econ guy, finance guy, like I say, I'm a self-proclaimed finance nerd through and through, you know, I just kinda did it all right. And, and I built this background where just numbers and finance things made sense, you know? And at some point in my life, I want to say, now spend about close to 20 years.
[00:03:39] Somebody said, you know what I had of a family who was in real estate. I just never saw myself as a real estate agent. Right. Never, you know, I was like, I'm not going to be that guy showing houses. I just, that's not me. I'm a mentor. And you know, it's one of the things that I've actually valued throughout my career is mentorship.
[00:03:56] I had a mentor said, put those numbers to work, you know, use that finance background and go into the mortgage business. So, you know, like everybody else, I was like, you know, I'm going to come in, kill. It, went into the work at an organization where I was given a spreadsheet and a phone. And I said, and they said, go get loans.
[00:04:12] Billy: Yeah. That's how a lot of us that literally that was the training.
[00:04:16] Byron: And I was in a little, little boiler plate, boiler room operation where like six or seven guys. And literally I was told, go get loans. And I'm like, okay, go get a loan. Yeah. So I went, I remember going, I remember picking up my list, go ahead and talk to the boss.
[00:04:32] And I said, you told me to call these people, but what do I tell them? And he said, just ask them if they want to refinance any.
[00:04:40] Billy: So you were going after retail, homeowners refinance, you weren't doing wholesale yet.
[00:04:45] Byron: So at that time, I was like just consumer direct loan officer with no experience, brand new baby at home.
[00:04:53] When I took the leap, left my Forex job at the bank and went commission only. Right. And I said, I'm going to make this work. And I didn't, or at least not, not for the time being, you know, I was like, well, what am I getting. You know, and then I just started listening and listening. And since, since I was a kid, I've always had a passion for education and I was learning, you know, and I've always grew up growing up with like this chip on my shoulder, you know, listening to some of your episodes.
[00:05:18] I've kind of identified with a lot of the things that you've talked about, just that struggle to fight and you know what I'm going to prove everybody. You know, so I came into this business and I was like, you know what? I have to show that I'm not going to fail right now. I have to show that I'm not gonna, I'm not going to fall apart.
[00:05:33] Just started doing all the research. I can. It's funny, but one of the, one of my biggest pieces of knowledge, I would say at the time, go watch the movie Bolier Room. Right. And they're like, they're going to teach you how to sell. And you know what, and as funny as that is, right, because we've all been been there.
[00:05:46] We've all been in that, up in the sales side of it. We've all been in that those spots where, where it does feel that way. And I said, this can't be the way it's done. Right. So I learned that I educated myself on what it meant to do alone and all of it, everything that it entailed. And within the first, I probably would say within 60 days, I was the number one producer of that organization.
[00:06:06] We now. And within 60 days I was putting up numbers.
[00:06:10] Billy: Did you have sales experience on the Forex side or you would just trading?
[00:06:13] Byron: I was trading. There's a little bit of sales involved, right? Because I'm selling, you know, margins that I'm selling rates, you know, I'm selling. So there's a little bit of sales bringing on new clients for the bank, but not much.
[00:06:26] Billy: So you had like zero sales experience. Quit your job jumped into this 10 99, no salary, no base and no training. Nothing. And you just figured it out. You made it happen.
[00:06:36] Byron: And a brand new, been a three month old baby.
[00:06:39] Billy: Yeah. And 60 days later, you're the number one guy in the office, number one guy in the office.
[00:06:43] So they all like, what the hell are you doing, bro?
[00:06:47] Byron: Like pretty much that's it pretty much it, they, all of a sudden we upgraded offices at the time and they gave me the big corner cubicle with all the highlights that in the windows and everything that came with it. And I did, you know, I just, people started coming around and said, what are you doing?
[00:07:03] You know, what's happening? And I kinda just started walking them through my process and part of it for me, That the organization I was with, we were, it was consumer direct and we made outbound calls, but we also took inbound. There was radio spots at the owner of the company would do. I took the initiative and I found out exactly what time the radio spots were going to air.
[00:07:21] Right. And I knew it was at six, five o'clock in the morning and I knew drive time worthwhile. And I did some research and sometimes I was the only guy in the office at 5 42 in the morning, because I knew that's when the phone was. Yup. Right. And I took all the calls. So there wasn't and my claim to fame.
[00:07:37] And I always tell people, when people ask me, what's the secret, right? People say, what's the secret sauce. So there is no secret sauce. It's effort, it's dedication. It's doing the right behaviors, the right amount of times. And that's what I preach. It's the right behaviors, the right amount of times.
[00:07:50] Billy: Did you go through and have any formalized sales training?
[00:07:54] Like, did you put yourself through any of that? So you and I are very much alike. I didn't do that either. I just had this innate ability to get people to connect with. And then I figured out the lingo I needed to utilize. And then I became an expert on whatever the hell product it is. I was selling, but I never, when I was younger now years later, I've gone through a whole bunch of courses, but I never took sales courses to try to sharpen my sword, to get to the next level.
[00:08:18] I just kind of figured it out and figured out what didn't work quick. And then I figured out what did work and I'm like, all right, I'm going to say that again. I lost that sale and you just kind of like adapt learn and grow, on the go with, you seems like you did the same thing.
[00:08:32] Byron: That's exactly it. You know, and like you said, now, fast forward 20 years, I've been through lots of seminars.
[00:08:38] I've taught seminars, I've spoken to crowds and I've done all of the things now because I've done the research and I've taken the time to sharpen my craft personally, but that was kind of what happened. It was like, you know, when I got into that business, I realized that, you know, when I came from a banking world.
[00:08:52] Where, you know, you work at the bank, first of all, you do three weeks of orientation, and then you do this kind of training and you do this kind of training and you go through your series, this licensing, and you do this training till your ears are getting ready to explode. Right? And then I go jump into this world where, Hey, we're dealing with a lot higher amounts of money, right.
[00:09:10] We're dealing with people's biggest investment that they're going to make in their lives. And yet they'll put anybody on the phone. Just tell them, Hey, go ask him if they want to refinance. It's crazy. Now they don't teach you what points are they don't teach you? What APR is? They don't teach you how to amortize payments.
[00:09:25] They never taught you anything. I didn't. I, and I was just like, it's gotta be something different. It's gotta be a new way to do it. You know, and I've kind of at the time I still wasn't ready, you know, but I did a lot of homework and learning and learning, and I just, I'm a ferocious reader and I love to educate myself and finding out what can I do?
[00:09:42] What's the angle here? What, you know, what do I have to do to get better? You know, I'm an athlete. I grew up in sports and I kind of bring that same competitiveness and that same mentality to everything that I do, that I'm going to work. Right. And I did, you know, and I made a difference and fast forward I got, when I went to work, the different organizations started knowing.
[00:09:59] I said, you know what, if this guy can do it and they're not teaching anybody started, you know, within probably two years of being in the business, I opened up my own brokers brokerage. I was 24 years old and I said, I'm going to do this. And I'm going to do it better than everybody. And within six months we were, you know, I had probably 150 salespeople working for me.
[00:10:19] I had a call center built out the right way. That the way I thought it was going to work and we're doing, I don't know, you know, 65, 70 loans a month for 35, $40 million in business.
[00:10:30] Billy: Fantastic. And we're killing four years old, 24 years old killing it. I'm sure because I know the kind of money. Yes, yes.
[00:10:37] Byron: This was right.
[00:10:38] This was back in 2005, 2006 and yes, literally right at the. Yeah, I, I make the jokes and I say, yeah, you know, sometimes you know, you, you know, you cast your line and you get alone. Right. It was that easy. But my thing, and I've always said this to people, it's, those opportunities are always out there right in different market.
[00:10:56] It doesn't matter what market you're in the opportunity for sales and opportunity for growth and opportunity to buy real estate. It's always there. It's opportunity to make money is always there. It's are you prepared to handle it? Are you prepared to capitalize on those? Right. And I taught my people and I still do this.
[00:11:12] It's look ahead and see the horizon, see what's happening in the marketplace. And how do we prepare so that we have those opportunities and you can capitalize on those opportunities. Come up. It is the company you have now, is that the same company that you had when you were 24? It's not, and there's a funny kind of something that you can really identify with, you know, hearing pass up.
[00:11:31] 2008, 2009 hit. And guess what? Like I said, we were killing it that time wholesaling. We had warehouse lines. I was funding out here in California. That was a, you know, and I'm not going to say which banks we were working with, but there was a big financial institution that no longer exists. We were one of the selected few wholesale lenders here in California, allowed to do not only the pickup pay loan that was being done.
[00:11:54] It was a hundred percent LTV pickup. Which was not, it was unheard of, right. It was, you know, normally you had to have a little bit of equity in the property and they were chosen to be a pilot for that program out here in California. And we did, and we did 25, $30 million of that business every month. And then as I go to sell those loans, that bank that was buying those loans cease.
[00:12:16] Billy: Yeah. And then you have them on your warehouse line.
[00:12:19] Byron: I had, now all of a sudden I opened my warehouse line 30 something million dollars.
[00:12:23] Billy: Yeah. And you have to come up with that money or you have to discount scratch and debt. And then now you're out of pocket $5 million. I know it,
[00:12:30] Byron: at least, at least. And after that, I really, I really said to myself, I'm never doing this again.
[00:12:36] I was like, I'm never doing mortgage again.
[00:12:38] Billy: And so that
[00:12:38] whole thing that didn't implode when the market crashed. Crash and burn with it with that one company,
[00:12:44] Byron: you know, but I had two business partners at the time after the growth and we took over it, we bought a couple of different companies and we merged. So I had two business partners at the time and we were still in a position to continue.
[00:12:55] But the relationship between the three partners unraveled more than the business, that in itself. So we all chose to go our separate ways and shut it down before things got worse. Yep. So we all walked away. You know, we still had a little bit of money left though. But it was, you know, it really impacted me personally.
[00:13:11] Right. And it was, I just, I felt defeated. I felt like I failed.
[00:13:15] Billy: It was temporary and beating this man. You really get beat up. You get right back up.
[00:13:20] Byron: I remember a lot of people can relate to this, right? You go through this bad time in your life. And I literally sat on my couch for like six months and I just didn't have the motivation to really do much or do anything for that matter.
[00:13:30] And a mentor of my right, you can identify and then a mentor of mine. And I honestly don't remember who it was anymore to said, you know, reached out to me and they said, all I can tell you is this, you've done it before. Now. You should have the hunger to do it even better than the next time. And I was like, but, and so I went back, but pretty much started over.
[00:13:51] I went back to the banking world, lending became a loan officer, and I just said, I'm going to start from the beginning. I'm going to learn this trade all over again. I go, but I'm gonna do it a different way. And I was like, I'm going to go the corporate route just for a little more protection. I thought I have a safety net and I went through the channels and I quickly figured out that I had to leadership ability and growth and got promoted to manager or sales manager.
[00:14:11] Then I got recruited to come over to at this credit union to become the regional manager. And I ran all of sales, all hundred 50 of their salespeople really revamped the organization and took over and really put in the, a lot of the tools that I had learned over the way along the way prospecting how to do this, how to follow up, you know, a lot of the things that I think relate to your world, right.
[00:14:31] And, and the real estate investment side of it. You know, it's following up, it's, you know, doing your due diligence. It's making your phone calls. If you're going to door knock, the money is in the follow-up. It is either the follow-up,
[00:14:44] Billy: you know, a lot of guys. And I know when, when you had the mortgage company, I'm sure you can relate.
[00:14:48] I can remember looking out of my office and seeing these guys, they would one shot call and burn it. They didn't close that guy right then and there, like they would go onto the next lead and they wouldn't call and put them in their followup process. You'll get his money in the up. And it's the same thing in any industry, any business, especially real estate investing.
[00:15:07] Like if you don't have a good back end follow up process and system to take those leads that are in that you didn't close in the first, second to third phone call and convert them over. You're out of business. You're leaving hundreds, if not millions of dollars on the table. We're closing loans today deals today that have been in our pipeline.
[00:15:25] Some of them for two years, These people called in two years ago, two and a half years ago. And because of the process we have with a no lead is ever left behind they're closing at one time or another, we're going to get them when that sellers, their burn process, their their when they get a little burnt out, when they're rolling.
[00:15:42] We get them at that, at that moment where they're like, you know what, I'm ready to sell. And we all them, when our guys first call them up and they might not have a lot of, I guess they don't have they're not at the point where they really have a lot of motivation to sell. And at one point or another, if you continue to follow up with them, you're gonna have.
[00:15:59] And when you hit them at the right time, you go to close.
[00:16:01] Byron: Now you're right. You're right. And, and, you know, and I think that's the, the behaviors that I teach in sales. And I think that translates to really any business, right? The real estate investment world, the lending world, but it really relates to anything it's, you know, I preach knowing you're not.
[00:16:14] Right know what your conversion rates are for the behaviors and the activities that you want to do. Right. It's literally that simple, you know, I say, if you're going to door knock, you know, what's your success rate on door knocking, right? And then based off of that success rate, you do that activity the right amount of times for that desired outcome.
[00:16:32] If you're going to tell the market, if you know, Hey, look, I have a 2% success rate on telemarketing. Well, how many phone calls do you need to make to get to. Right. It's too right. It's like, literally that simple, it's scientific it's data driven, scientific data driven, but people kind of hear it and it goes in one ear and out the other and nobody really, you know, so that's why I say I've trained managers on how to manage to those processes, which makes the difference.
[00:16:58] Right. Because as we know, salespeople can be quote unquote, lazy, right? It's like you get the big sale in the morning. All right. Taken off for the rest of the day. Right. And that's, I mean, we've all been there one point or another where you see some success and you, you know, all of a sudden you, the money's rolling in and you're like, oh, this is easy, you know?
[00:17:13] And you forget about the, what got you there. The most successful salespeople I've ever seen are the guys who doesn't matter. They always have the biggest pipeline, but they're always making phone calls. They're always working their time, their pipeline. They're always following up. They're always doing activity
[00:17:28] Billy: lead generation period.
[00:17:31] Byron: Always, always, always closing. So, yeah, so that's kind of how my trajectory kind of led me to this and building for other organizations that at some point I was like, you know what, I've built and built organizations before done well at it, but really it's my time, you know, it's, it's, I kinda lost that fear.
[00:17:47] And I said, you know what? I did it once before I've built these machines for people that are making a ton of ton of money. Why can't I do it for myself again? So when I took the leap,
[00:17:57] Billy: when you got out of your first business, and then you started again, In the business world, working with somebody, but when you broke through your fear and actually went back in business for yourself, how many years between that span?
[00:18:10] Byron: Ooh, that's a good question. I want to say maybe six or seven years. Wow. Long time. And it is, it is, but for me it was, it was part of it. Besides there's a lot of personal stuff that we're kind of going in my life and that we're taking from my away, from my attention of doing what I needed to do, not having the right people in my corner.
[00:18:30] Sometimes that will motivate you to say, look, I got your back. Take that leap, take the chance I believe in you. And we're going to get this done together. Right. You know, sometimes we all know that right. It's having our lives are stressful. It's we deal with situations where it's sometimes it's difficult to be able to connect with your spouse and friends because they don't understand what.
[00:18:49] Yeah. You know, I've been told a million times, why don't you get it? Why don't you get a real job? Is what I've been told a million times from my people with plus, you know,
[00:18:56] Billy: I've been down that road, man. I don't even know what a real job is. I have been unemployable. I think she's, I've been 22 years old, 23 years old.
[00:19:03] I can't hold him up. I don't even know what the job is.
[00:19:07] Byron: Yeah. It was like, I'm not going to come have to clock in clock out guy. That's just not who I am. You know, I used to
[00:19:11] Billy: let let's focus. Now you fast forward we're six years. You're now you've decided to start your own lending company again, right company that you, that you are starting, you're going to be specifically gearing yourself towards real estate investors.
[00:19:27] You're not going towards homeowners. You now dealing with guys like us, more of a sophisticated. Coming in. So tell us about that business, because I know you're going to be able to help a lot of people. on this call, you're doing this nationally for what I understand
[00:19:38] Byron: we are doing it nationally. Yes. So part of that transition when we went in and we opened up the brokerage and you know, it took some time to really develop our business model and what we wanted to do.
[00:19:46] And we toyed with the commercial side of it. I mean, sorry, the residential side of it. You know, we did a little bit just cause I have the background and I have the experience, but, and then really kind of focused in, I was like, you know what? I don't want to do it the way we did it before, where you're just kind of the shotgun approach and just try not to cast a wide net and figuring out what comes in.
[00:20:03] Right. We said, let's use the expertise. Let's use the knowledge. And it's used the relationships mainly that we've built over this last 15, 16 years of being in the industry and develop these products for a niche market, right. An underserved market. Yes, there's lending out there for investors, right. But there's the lending.
[00:20:22] I think a lot of times they can't relate or they don't understand what the investor's going through and we've created products and procedures and we've put together this workflow where it makes sense for the investor. Right. I have investors now that we'll do a loan for, and they're like, this is the easiest one I've ever heard.
[00:20:38] Right. Normally, you know, they see you, they know that I'm an investor and they make me jump through some hoops. They make the, you know, they asked for all this, or they ask for all that, you know, because we understand the process. You know, we flipped homes on ourselves over the years. So we understand the backend process.
[00:20:50] We understand that the budgets, we understand dealing with contractors, we understand dealing with insurance, as we understand, you know, one of the biggest things that I tell people it's as an investor, it's, what's your. Right. Yeah. What's your exit? What's your exit strategy? What's the exit plan here because our loans, you know, are all short term, right?
[00:21:07] In the private money world, hard money space that people call it, you know, and I don't like to use the word hard money, just, I think it has a bad connotation to our industry and it kind of reflects these exorbitant rates. Oh, if you don't pay your loan, somebody's gonna come break your kneecaps.
[00:21:24] You know, when I started in the business, that's how, that's what hard money was known as. So I've kind of coined the phrase or kind of used the phrase private money because we do, we get money from hedge funds. We get. Private office or the family offices there, these are their investments. And we use that to lend and we create programs where it just makes sense for investors, whether you're a first-time guy, you're a big developer looking to, you know, to build out 350 doors, you know, we can help.
[00:21:47] We do. We finance churches, we finance rehab centers, convalescent homes, you know, and, and the industry people always say, We don't, nobody lends to God and nobody lends to old people. Right. Because nobody wants to evict God and nobody wants to get all people on the street. Right. It's bad PR you know, but we've figured out a way to make it work where we can lend to them, you know, in a responsible way, which makes sense.
[00:22:08] Right. So you'll, you'll consider senior living facilities. We definitely do senior living. So I was mentioning to somebody earlier that one of the family offices that I work with closely, you know, we have a partnership agreement with pretty much only lens to senior living facilities. And they're constantly calling me daily.
[00:22:25] Hey, go out and get more business. We need more to finance.
[00:22:28] Billy: What's their criteria. They are like the larger senior living, the smaller one, the boutique ones, like what do they, what's their.
[00:22:35] Byron: We've done both. We've done one where it had eight beds and we've done one that had 120 beds. So I love it. Everything in between.
[00:22:44] Yeah. So it's because, and that's like I was saying, it's, it's, you know, we've created these relationships with these offices, these family offices, where, you know, using my relationship and my finance background, I can kind of show them their, their ROI. They're going to make money on the deal regardless.
[00:22:57] It's not, it doesn't have to fit in a box because we're told that this box is. Right. A lot of lenders. It's like, well, you know, somebody told us the guidelines and that's what we're going to use to lend it lend with, you know, but I sit down with these organizations and I help them develop the product that, that makes sense for the street.
[00:23:14] Billy: You talk, when you say the organization yourself, like the family office and the hedge funds the correct. So, so let me ask you this now. Cause I know a lot of people that are listening that understand that world, they hear hedge fund or they hear family office and they immediately think super high rates because those organizations want to earn a nice, healthy return.
[00:23:31] On their investments. What are you seeing in regards to rate of return for those types of organizations? What are they looking for.
[00:23:39] Byron: They're all very much. Right. They're all different. And it all depends on property type and what their investment, you know, what their appetite level at the time is. But that's kind of the, my relationship with them is, is more of a volume thing.
[00:23:50] Right. And I come in and I tell them, look, I'm working to make you money. You have to make this where it's still palatable for somebody to get in. Right. And it's going to make sense, right. We've done deals and you know, on the fives, you know, 5% interest rates. Yeah. We also shut deals in the 10's. We have the deals in the 10's.
[00:24:05] Right. And so. But it just, it has to make sense for everybody. Right. You know, when we're we come in and sometimes some of our competitors are offering, you know, it's like they don't go lower than 12. That's a tough deal to sell.
[00:24:16] Billy: It is it's a really tough field itself because, you know, if you really put the performance in with that, with the finance cost, really the only people that are gonna be making.
[00:24:24] It's the people lending money. Exactly. If it's a long-term deal, if it's a, you know, a 12, 18, 24 month you building self and you putting it out 12 was going to eat up your, your profit big time.
[00:24:34] Byron: Oh yeah. And that's why when I sit down with someone, speak to them over the phone and we're trying to find out, I'm not telling them how much you need to borrow.
[00:24:40] I'm asking them, what's your plan, right? Is this a short-term? Is this long-term because there's different. A, my job is to go to different organizations, different offices, different funds, depending on what you're trying to do. Right. I have the guys that are the short-term guys and they will, they're going to lend them.
[00:24:54] At least as a guest it's acid. Yeah. Get in, get out and everybody moves on. Right. But if you're looking for a long-term polled model, then I need to know who to go to for that money. Right. And then, so, and that's all of that has also been building up to kind of our next project. We're launching our own.
[00:25:13] Right. We've been in the process with the sec and we're supposed to, should have sec approval here in the next 30 to 60 days. And you know, we'll be ready to make some big announcements to that where. The 5 0 1, I have a one, three B, I believe it is. I always mix them up, you know, so we're one of the things that, you know, has been important to me is teaching people how to build wealth, right?
[00:25:35] And teaching people how to understand and look at different investment vehicles where, you know, a lot of these funds in the past have catered to the millionaire investor who is looking to park. Right. We've been able to carve out a little niche where we're diversifying that a little bit where we don't, we're not going to, our minimums are going to be a lot lower than most guys out there.
[00:25:57] We're not viscerally only looking for accredited investors. We're looking for, there's some flexibility there where I'm big on connecting. The youth, right. And teaching them that there's a path here to make some serious wealth through real estate, whether it be flipping homes, whether it be lending, whether it's investing right.
[00:26:16] There's different ways to do so that a lot of times people aren't given these opportunities are not showing the path to do that.
[00:26:22] Billy: I love it. What does that fund the coming to fruition? What's that happening?
[00:26:26] Byron: We should it's with the sec now, or lawyer said that I actually spoke to him this morning. Before we get on the call with you, that I should expect approval within the next 30.
[00:26:34] I'm excited. Right. So very, very exciting. Yeah. We're looking to do our first capital raise and it should be exciting because you know, kind of the way I have with my partners involved. And that w how we designed that a little bit is we're carving out a huge, a big chunk of that is for me to continue lending that out, right.
[00:26:50] To use that to, for all my investor clients out there nationwide who are looking to develop and look at. But now I can even go beyond my family offices. Now it's the funds that we've created and we've, we're creating these programs that I think are going to make some impact, you know, they're going to cause some disruption in the off the wall type deals will be that's.
[00:27:11] That is the plan is still friendly to everybody involved. Meaning we're not taking huge risks. Right. It's planned out appropriately if I could say, but we're looking to, to cause some disruption in the end. All right. We're looking to cause some, make some waves and do some different things that, that will open up the doors for, for investors mainly to be able to do some fun stuff.
[00:27:32] Billy: So on the let's talk we talked about senior living. What about drug rehab?
[00:27:39] Byron: I personally never done a drug rehab one, but it's this, that same office will do the same, right? Because we treat them the same way. Right. We're looking at the vet, the income that's coming in for each. Right. So, yes,
[00:27:53] Billy: you're really going to be looking at not just the assets of real estate, but the overall business plan and the performance of their business plan to see what that deal is going to yield.
[00:28:01] Byron: I think that's what. Exactly. And we're not digging, you know, it's still private. So we're not asking for tax returns. We're not asking, but we are looking for a performance. We're looking for. Mainly we're looking for that. There's some experience in managing that type of facility. Right. You know, the problem, a lot of, a lot of investors get into is, you know, the goal we do.
[00:28:18] Cause we do a lot of hospitality stuff too. We'll do hotels, restaurants, you know, and everybody sits there. I want to buy, you know, there's an opportunity for me to buy this little motel down, down this little vacation spot. You know, my first question is, do you have any experience, right? Right. How, what do you know and how are you going to make this profitable?
[00:28:35] Right. So it's either hiring a manager and also some of my first questions, but yeah, it relates the same to, in like a rehab center, right. It's it's us,
[00:28:44] Billy: the operator that knows that this is give them a piece of the action and have the investor put together to package and to go to somebody like yourself.
[00:28:54] Byron: Exactly. I'd say, I mean the same as any big development, right. If you're going to, you know, a lot of investors want to develop and want to build, you know, a shopping mall or do you want to do want to build condos? Right. But they have to partner with the right people. They have to partner with the right contractors, right.
[00:29:07] Builders, to be able to get those jobs done. Right. And I that's the same thing. I tell everybody, you know, if you're going to get into some, in a little bit of a, it's still real estate related because I think everything's real estate related. Right. But if you're looking into a little different offshoot of that, which there's great opportunities, then.
[00:29:22] Thank you said, who are you going to partner with? That's going to be able to help you get to that that's success or that ROI model that you've put together. Yeah.
[00:29:28] Billy: The partnership is key to making it work, especially if you have no experience in that industry. Last thing I want to do is want a drug rehab, right?
[00:29:35] But I'd be more than happy to invest some money into it. Knowing that we have the right operator was in the back, that has the experience to make it happen. Let's bring it down to most of the people that are listening, right? Most of these guys are wholesalers it fix and flippers or the long term by an old guys.
[00:29:50] They either want to get into. They're growing their business, where they're scaling the business. Let's talk about how your company could assist them with fixing and flipping and buying and holding on the single family. Let's keep it nice and basic. Most of our people out there. And then in this part of the industry, yeah.
[00:30:06] Byron: That's a big chunk of our clients, right. We actually have a relationship with. With one of the schools that teaches people how to, how to fix and flip, right? It's, you know, one of the guys that's on TV and he has his little flipping show. They have schools and they teach people whenever we partnered up with them and being able to help a lot of their, a lot of their students be able to show them not only there's, there's a model where when you guys flip is identifying the property, you know, it's putting together your budgets and know all of that side of it, but there's a finance side of it too.
[00:30:33] That comes that there's a big piece of the financing. Where are you going to get your money? You know, is the down payment could be. If you're bringing in an equity partner, you know, how was that managed? Right. And that's, that's one of the things that us having that experience. We can walk people through that process whether it's the first time you're doing it, or if you do, you know, 10, 15 properties a year, right.
[00:30:50] And, and we can build these fix and flip programs where we can finance, depending on your level of experience, 80, 90% of the purchase price and finance, a hundred percent of your rehab. Right. We're looking at future values. We're looking at, at your exit strategy, we're looking at what it is you're trying to do to be able to get that accomplished.
[00:31:07] Billy: You mentioned something I want to touch on a little bit deeper. So you said. You somebody with no experience and you might have somebody that's an equity partner coming in on the deal, the joint venture with you. I did that a lot when I first got started. Speak to that, go into that a little bit deeper. I really want to give a lot of meat and it's in this part of it.
[00:31:23] Byron: I see. And that's, and I'm glad, I'm glad you glad you bring that up because I get probably five or six calls. Right. This is my first flip. Right. And you can, I can tell it off the first initial phone call, right? The first couple of questions they started asking. And it's always, all right, so what's, what's your down payment position or situation, or what are you looking at?
[00:31:39] Well, you see, I'm looking to bring in somebody, an equity partner, you know, and these are the questions that you always want to ask when you're bringing an equity partner. It's a, how much, what percentage of equity you give me now? Right. But second it's are they going to want to put a lien on the property for that equity position, right.
[00:31:53] For that down payment, most lenders like. I don't like to see that second lien coming in of that equity partner, unless it's some bigger project, but I've got a single family home. If it's a, you know, $150,000. And you have no skin in the game as a first investor, it doesn't make you look great. It doesn't make me feel comfortable because at any time, right, we're looking we're, you know, we're analyzing risk.
[00:32:16] And our biggest factor in analyzing risk is how much money do you have stake that this, if you, you know, if this project goes south, you walk away with. You losing nothing, right? You're in masters losing some money, but you personally aren't, you know, aren't losing anything. Right. So we're looking for that.
[00:32:30] So as a lender, we don't necessarily like to see that lean position. So if it's a situation where you are bringing an equity partner, you know, have some contract, something contract release, they'll where it's part of your LLC or you're giving them shares or you're giving them some percentage of that, of that, that deal.
[00:32:45] Billy: Right. You got to get creative. I don't want you to over your day. You got to get creative. You can't just gloss over that man, because a lot of people think if I can't get a second, I don't know what the hell I'm gonna do. Start an LLC with them. Like you said, give them something, make them become a member.
[00:33:00] Now, if they become, if they're on the LLC, is your company going to force them the equity partner to sign on the first mortgage note?
[00:33:09] Byron: No, the old, now we only require anybody that owns at least 50% to have to, that they have to sign.
[00:33:16] Billy: Awesome. That's good to know. Yeah. There's a lot of newbies out there. They don't realize it.
[00:33:20] Byron: Yeah. You know, and a lot of it, you know, and, and without, that's not necessarily my job well, you know, we can kind of guide them and their legal stuff. So I don't like to give legal advice, but it all has to do with your operating agreement. You know, how you draft that up, how you give up the furnished percentages, you can write up an opportunity.
[00:33:35] Saying that this person is authorized to encumber our LLC up to X amount of dollars. As long as you have those, some of those clauses written in it opens up and it gives you some creativity to work.
[00:33:46] Billy: I love it. So let's go into this deal. Let's say somebody is coming in first time. A renovator they have some money to put into the deal.
[00:33:53] What do you look for besides the cash down 10, 15, 20%. What else do you look for in them? And.
[00:34:00] Byron: We're not necessarily that we're not diving into their income and their financials. We do look at their credit report, mainly just a, it's an OFAC thing. And we're looking for credibility. We're looking at that.
[00:34:10] They are a good payer, right? That's one of the things we're not looking for. Crazy credit scores, mid six hundreds is usually all we're looking for some decent. It pretty much. Yeah. We're looking for their budgets. Right? How realistic are their budgets in, in rehab? Right. Do they know what they're getting into?
[00:34:26] Who they're partnered up with? I'm always asking them if, if it's, I always ask them for a resume, you know, if it's the individual and if they don't have never done one before their contractor contractors resume, what have they done? What projects, what we're looking for as a lender is your ability to manage a budget, the ability to stay on time, to manage that budgets.
[00:34:44] They under cost and the timeframe. Right. Those are the key because as a lender, the worst we see is, you know, we let somebody borrow whatever amount of dollars it is. They're out of money and the project is nowhere near being done. And now they're coming to us for more money.
[00:35:02] Do you,
[00:35:02] Billy: how often does that happen
[00:35:03] Byron: for us?
[00:35:04] Not that often, because we'll take a lot of steps ahead of time to cut that off of the past. Right? So when somebody is presenting a deal to me, I have, you know, we have some people on our team that are pretty much contractors that can go through the budget and say, these numbers are off and there's no way you're going to fix foundation for five grand.
[00:35:22] Oh, there's no way you can do this for that amount of dollars, you know, dollars. And we tear that apart a little. And we scrutinize them a little bit more aid to make sure they've done their homework and they know what they're talking about and they're confident in their numbers. And sometimes they can come back and they say, no, I can, because this is how I've done it before.
[00:35:37] And let me show you some examples of this. Yup. Right. And, and so that's our job to be able to mitigate that risk a for our protection and protecting our money. But if you, as an investor too, we, I think to them is always like, I want to see you succeed because I want you to come back to me for your second, third, fourth, 15th.
[00:35:55] Right. And if we forge that great relationship, I know I can trust you and believe me down the road on your 10, 15, I'm not going to scrutinize your numbers as much, because I know that you know what you're doing.
[00:36:04] Billy: It's important though. I mean, you're, you have to own the right. These files and scrutinize the numbers, especially somebody that's brand new because they just don't know what they don't know.
[00:36:13] Byron: Yes. The last part is I was looking at is I think, and sorry to cut you off, but we're always looking for, is there exit strategy. Yeah. Are they realistic and a, are they going to hold it to rent, you know, as a rental number going to cover their mortgage payment or are they going to refinance are they going to sell it?
[00:36:27] What's that market doing a lot of young, new investors. They have these ideas of grandur and the here hear the great stories. I'm going to sell this for $200,000 more and this and that. And then you, and then you go and they're just chasing the market down and chasing the market. Yeah, and it never happens.
[00:36:42] I have a funny story about that, but we do a lot of very high end stuff as well. Here in California, we do stuff in Hollywood Hills. We do some in Beverly Hills and we do stuff in Malibu. These big numbers, you know, we did properties that are worth 45, $50 million. They're coming to us for a 20, $25 million loan.
[00:37:00] To finish, develop this project or to take out or whatever the case is. Right. We can do a lot of that as well. You know, we had this one case where this guy said, you know, this property is worth 45 million. We said, look, maybe it is right there. That's your exit is 45. And I get it. We feel more comfortable at about three.
[00:37:17] Right. You know, and that's a big spread, you know? And he's like never, never, never, never. He goes, I, you know, if I had to sell it for 32 is I'll just keep the house and I'll burn it to the ground. Like he just was his whole mess. Right. We walk away, respectfully walk away from the deal. And I said, look, you know, it's not for us then.
[00:37:32] You know, we, because on deals like that, it's, you know, we set some parameters where look, if within six months it hasn't sold, you have to lower the price of what we told you. It's going to sell because we need it. Right. And he wouldn't accept those terms. So I guarantee that's exactly what I was going to get to.
[00:37:48] I tracked that deal. He ended up selling for a million dollars less than what I told him. The property was worth.
[00:37:53] Billy: My God made it to the beat and he took it.
[00:37:56] Byron: He still made money. Still made money, still made a ton of money. He built. Right. Good. Yeah. He, he bought this. A brand new construction in Hollywood Hills.
[00:38:04] He bought it for like six and a half million bulldozed it, but yes, and put about $15 million into it. I mean, it's a beautiful, beautiful home. I mean, literally beautiful home, 20,000 square feet, overlooking Hollywood. new construction. And. Yes. Yeah.
[00:38:23] Billy: That's elephant Titus. in the testicals right there.
[00:38:26] Byron: That's LA that's the LA real estate market for you.
[00:38:28] It's crazy. We get, we get that often where yeah, it's like, look, he's buying it for the land. It's funny that investor, the view is there. It's so important that he paid his neighbor who happens to have a tree that was kind of grown over and obstructing his view a little bit. He paid his neighbor. I think it was 500,000.
[00:38:48] For an easement, just so that tree would be cut down and would never take off any of his view.
[00:38:54] Billy: Wow. Smart. Yes. Smart. I mean, if you got the number on the back end, he's smart, but $500. That name it must've been like, this is my day.
[00:39:05] Byron: Yeah, no, we, we did some interesting stuff. No, it's, it's an interesting market, you know, like I said, you know, our, our thing is always trying to cater the investor is it's catered your needs and really trying to build that relationship and build that partnership where it's, how can we use.
[00:39:18] That long-term success. Right? We want to see you succeed. We want to see you, you know, make money. Right. We want to see, I mean, I get excited when my investors are showing me checks. I'm like, I made, you know, exit all amount of dollars on this transaction. That's what gets me out of bed because I knew it was a part of that.
[00:39:32] Right. We were able to help facilitate that and help you get onto the next one.
[00:39:35] Billy: I'm going to ask you a question. I, you know, I hate to ask you to, but I have to about racing. Normal deal, regular Milt, you know, middle America, $300,000 purchase rehab, 85, 90% all in what's your rate and fees in a deal like that.
[00:39:48] Typical
[00:39:50] Byron: on deals like that on the fix and flip stuff. We're usually in the low to mid sixes on
[00:39:56] Billy: . Yes, that's good, man. That's good. We're having rates right now. We're at seven and a quarter with three of our lenders, we have a couple of lines with, so in the six's is fan.
[00:40:06] Byron: Yeah. But that's also, that's, you know, got something with some experience that, you know, kind of, we know first timer, we're probably high sevens, high sevens to even eight sometimes.
[00:40:17] Right. And every deal we're always looking at it. There's always, probably two points into every deal. Typical underwriting kind of processing.
[00:40:24] Billy: The renovation costs no interest on the renovation cost until they do a drawdown. That's correct. And what's that process like? How difficult or easy is it dealing with your company to get the drawer pull down for the rehab where they have
[00:40:37] Byron: usually pretty easy.
[00:40:37] One of the things that we always ask you for is know part of our due diligence upfront is we're asking you for an estimated draw schedule. So we're asking you to create that draw schedule for us. We want to know when you need that money for buy and we'll create that process around.
[00:40:50] Billy: Good good stuff.
[00:40:51] And what's the name of the company you own right now?
[00:40:54] Byron: JSS financial.
[00:40:55] Billy: And where could they find you online?
[00:40:57] Byron: Online? They can find us at www dot JSS, financial.net on Facebook, Instagram at JSS financial. You can find me personally at the casual executive that's Facebook, Instagram, all, all of the above.
[00:41:11] Billy: You are the casual executive for sure. Listen, you have been a pleasure to interview. We're going to talk well flying. I'm going to definitely hit you up. Multiple different unique deals. You know, the drug rehab, the senior living, the townhouse building that we're doing. So I, you know, I could definitely leverage you for one or all of the three that we have that were going on because they're just unique, quirky, little things that regular investors just don't understand.
[00:41:34] Byron: Oh no, I definitely appreciate it. You know, that, that's what we're here for. We'd like to do, like, I would say we like to do the deals that a lot of people shy away from.
[00:41:40] Billy: I love it brotha. Anything you want to end with. I didn't even want to leave.
[00:41:44] Byron: Just a, you know, that daily motivation, just that, you know, we can all succeed.
[00:41:48] It's all about our, how much we want it, how much fire we have in ourselves to go after it. Right. Whether it's in real estate, whether it's in lending, whether it's whatever aspect of life, just get after.
[00:41:57] Billy: Im going to end with that. Just get after it. You've been real bro. Appreciate having you on Byron. Thank you so much.
[00:42:05] Byron: Thank you. I appreciate the time .