WEBVTT 1 00:00:01.720 --> 00:00:06.440 Welcome to Mortgage Talk with Mark Hairston, the program that not only talks about 2 00:00:06.480 --> 00:00:10.599 mortgages, taxes, and interest rates, but Mark and his guest talk real 3 00:00:10.679 --> 00:00:14.839 estate trends and your home. He also answers your mortgage questions to help you 4 00:00:14.919 --> 00:00:20.600 make the right financing or refinancing decisions. Now here's Mark Hairston. Happy day, 5 00:00:20.640 --> 00:00:29.399 everybody, and welcome back to this week's station of Mortgage Talk. I 6 00:00:29.440 --> 00:00:34.560 am your host, Mark Hairston, and I'm really really excited about today's today's 7 00:00:34.759 --> 00:00:39.439 show because, as I've mentioned in the past, I really do this show 8 00:00:40.000 --> 00:00:43.079 primarily to learn, you know, so I bring on speakers that I can 9 00:00:43.159 --> 00:00:47.280 learn from as well, and we want to share information to the marketplace that 10 00:00:47.320 --> 00:00:52.079 can help you make very good decisions around your investments, particularly in real estate. 11 00:00:52.799 --> 00:00:57.600 And today I've got a couple of guys who work in a field of 12 00:00:57.719 --> 00:01:02.079 lending that I don't. We're both in the same space of lending, but 13 00:01:02.119 --> 00:01:07.599 I'm more traditional in the mortgage space of doing residential mortgages, and these guys 14 00:01:07.599 --> 00:01:11.519 are in a different area called hard money or private lending. And I wanted 15 00:01:11.560 --> 00:01:19.280 to douce Ray Walter and Curtis Simpson, who Ray owns Capstone Funding and Curtis 16 00:01:19.319 --> 00:01:22.159 is sort of his right hand man, his chief lending officer, and I'm 17 00:01:22.159 --> 00:01:23.519 just really excited to hear what their story is. A matter of fact, 18 00:01:23.959 --> 00:01:27.760 I'm pretty sure we're gonna do this more than once because there's so much meat 19 00:01:27.799 --> 00:01:32.239 on this bone to choose. So give me Ray. I want you to 20 00:01:32.400 --> 00:01:36.640 kind of both of you actually spent a little time a few minutes here whatnot, 21 00:01:37.000 --> 00:01:41.120 introducing yourself and your experience in this world. Sure, so Ray Walter 22 00:01:41.239 --> 00:01:42.760 with Capstone, and thank you Mark for having us on the show today. 23 00:01:42.799 --> 00:01:47.519 We appreciate it. And So I've been in the lending business its nineteen ninety 24 00:01:47.519 --> 00:01:51.400 eight. I grew up in Orange County, California, moved to austin ninety 25 00:01:51.439 --> 00:01:56.000 eight. Started with Countrywide Homelands, I remember those, Yeah, started in 26 00:01:56.040 --> 00:02:01.000 wholesale, yes, definitely, And and so I was there for about three 27 00:02:01.079 --> 00:02:05.400 years and two thousand and one. So from nineteen nine two thousand and one 28 00:02:05.439 --> 00:02:07.360 is when I launched out and I opened up my actually I got my loan 29 00:02:07.400 --> 00:02:14.280 officer's license and eventually opened up my own conventional mortgage lending company. It was 30 00:02:14.319 --> 00:02:17.240 just, you know, did conventional loans. I FH loans and I do 31 00:02:17.400 --> 00:02:21.879 today that like you do today. That's correct, yes, And about two 32 00:02:21.879 --> 00:02:24.919 thousand and five, if I remember correctly, I started seeing this need for 33 00:02:25.000 --> 00:02:29.159 private lending. I always heard about it. I didn't really understand a whole 34 00:02:29.199 --> 00:02:32.240 lot about that, but I just I researched out that industry and I wanted 35 00:02:32.240 --> 00:02:35.759 to understood out here. I am as a loan officer, I'm already doing 36 00:02:35.759 --> 00:02:38.840 conventional loans here, what is this private lending? How do you fund private 37 00:02:38.879 --> 00:02:40.759 loans? How do you what is hard money lending? So I learned everything 38 00:02:40.800 --> 00:02:45.199 I could, and I just scoured the internet and I even ordered you know, 39 00:02:46.719 --> 00:02:50.639 classes that you can this is that. This is actually a DVD if 40 00:02:50.639 --> 00:02:54.680 you could believe that before it was on YouTube. And I learned everything I 41 00:02:54.680 --> 00:03:00.439 could, and I was fascinated with that industry and what hard money lending, 42 00:03:00.520 --> 00:03:05.960 private lending also known as bridge lending, what it's really it's gap financing, 43 00:03:06.280 --> 00:03:08.879 and that's why they also called bridge lending. And I started seeing this need 44 00:03:09.000 --> 00:03:14.000 for for individuals, let's say, for renovation properties, for example, because 45 00:03:14.000 --> 00:03:17.800 that's the most common asset that people understand on the conventional side. Single family 46 00:03:17.879 --> 00:03:22.919 primarily primarily single family, that's correct, and if and if and I'm not 47 00:03:22.919 --> 00:03:25.599 sure how much it's changed in the conventional lending world because I haven't been in 48 00:03:25.639 --> 00:03:30.039 that uh you know, it's certainly not recently. But at that time I 49 00:03:30.080 --> 00:03:34.520 couldn't find good financing available for someone who wanted to rehab loan. And I 50 00:03:34.520 --> 00:03:37.159 would work with roles to agents and occasion, I think get a lot of 51 00:03:37.159 --> 00:03:39.919 them, but I just was fascinated with that need. And what I realized 52 00:03:40.000 --> 00:03:44.120 is that there are individuals that would buy a property that was you know, 53 00:03:44.159 --> 00:03:46.960 needed maybe you know, twenty five fifty thousand dollars or renovation, and there 54 00:03:47.039 --> 00:03:52.240 really wasn't a good program there, especially on the conventional side, for someone 55 00:03:52.280 --> 00:03:55.719 to get financing for investors for investors only investors, not let's be clear about 56 00:03:55.800 --> 00:04:00.560 that. Yes, that's correct, Yeah, for only for investors. And 57 00:04:00.560 --> 00:04:04.759 and so that's what really propelled me into the hard money lending industry. And 58 00:04:04.879 --> 00:04:08.960 I started a little bit with my own capital, and then I worked with 59 00:04:09.000 --> 00:04:14.360 some of our family money and clients, and it just organically grew in fifteen 60 00:04:14.439 --> 00:04:17.120 or plus years, right because in two twelve is when I when I launched 61 00:04:17.160 --> 00:04:21.920 Capstone, primarily only as a hard money lending company, and I ended up 62 00:04:23.000 --> 00:04:28.360 leaving the conventional lending industry went completely. That's correct, And tell us about 63 00:04:28.360 --> 00:04:33.879 your background. So Ray and I met early two thousands through some ministry things, 64 00:04:33.920 --> 00:04:41.600 and and I ended up actually becoming what is now Capstone's largest bar work. 65 00:04:41.759 --> 00:04:45.120 Okay, you're a client one time. Yeah, I was doing luxury 66 00:04:45.199 --> 00:04:54.639 flips from everywhere from Ocean Drive and Corpus to Santonio and the Dominion Wow wow, 67 00:04:55.319 --> 00:04:59.720 gated communities, Kenya Lake and even here in Austin. Okay, So 68 00:05:00.879 --> 00:05:04.120 we've been friends for a number of years. Done done quite a bit. 69 00:05:04.199 --> 00:05:08.720 I actually come out of the I was part of the tech boom. I 70 00:05:08.759 --> 00:05:13.680 was working for a technology company. From there, I rolled out a venture 71 00:05:13.720 --> 00:05:16.600 capital firm. Okay, tell you've been in Austin. I've been in Austin. 72 00:05:16.680 --> 00:05:21.319 I came in eighty six. Wow. Wow. Uh played football ut 73 00:05:21.720 --> 00:05:29.199 wow, and got a degree and never left. So I play football, 74 00:05:29.199 --> 00:05:33.199 but yeah, yes, I still go to games, you know. So 75 00:05:34.199 --> 00:05:40.480 anyway, I guess two thousand and seventeen, I had kind of been consulting. 76 00:05:41.079 --> 00:05:45.199 I have my own capitol company that I do development deals with and such, 77 00:05:45.920 --> 00:05:50.120 and I started consulting and I actually in two twenty twelve, I actually 78 00:05:50.120 --> 00:05:55.920 wrote the business plan four Capstone awesome, So our wells in two thousand and 79 00:05:55.920 --> 00:06:00.079 twelve, yeah wow when he started so uh he or Garret started growing it 80 00:06:00.240 --> 00:06:05.959 for the next five years and then twenty seventeen it was just kind of meant 81 00:06:05.959 --> 00:06:11.360 to be. Yeah, that's fantastic and came together and start working. We'll 82 00:06:11.399 --> 00:06:14.560 tell us a little bit about the typical profile of your clients. I know 83 00:06:14.639 --> 00:06:18.480 you all do a variety of types of loans in different industries, if you 84 00:06:18.480 --> 00:06:21.319 will. You know, you talked about a winery as an example. Okay, 85 00:06:21.360 --> 00:06:25.639 that you that you you all funded. But what's your day to day 86 00:06:25.680 --> 00:06:30.279 sort of typical client or is there one? So? Yeah, our our 87 00:06:30.319 --> 00:06:35.040 bread and butter is single family, residential, new construction, new construction. 88 00:06:35.120 --> 00:06:40.759 Yeah, working with builders, working with builders. And funny enough, we 89 00:06:40.759 --> 00:06:44.120 we actually don't really call it hard money anymore, at least as far as 90 00:06:44.120 --> 00:06:47.879 for Capstone. Yeah, hard money does have a little bit of a stigma 91 00:06:48.000 --> 00:06:51.680 from the fix and Flip days and there were a lot of foreclosures then oh 92 00:06:51.720 --> 00:06:57.040 eight happened kind of got lumped into the subprime you know, just right, 93 00:06:57.639 --> 00:07:06.120 But I will tell you I have profile our clients and our average client as 94 00:07:06.319 --> 00:07:14.519 upper seven hundred stores. Yeah, but they are looking for something. Ray 95 00:07:14.560 --> 00:07:19.360 taught me a long time ago. Hard money or private lending is about ease, 96 00:07:19.560 --> 00:07:24.639 convenience, and speed of capital. You can fund quickly. We can 97 00:07:24.639 --> 00:07:29.399 fund quickly. There's no red tape. And as long as the asset is 98 00:07:29.439 --> 00:07:32.839 good and the LTV is good, which will pretty much walk up to the 99 00:07:32.879 --> 00:07:39.240 seventy percent line on LTV, Okay, then that's about it. Yeah, 100 00:07:39.279 --> 00:07:44.800 I mean, yeah, well we we depending on the asset class. So 101 00:07:44.839 --> 00:07:47.120 it's commercial, we're going to be you know, maybe fifty up to sixty, 102 00:07:47.639 --> 00:07:54.399 multi family same but for residential, Yeah, seventy percent LTV is just 103 00:07:55.040 --> 00:07:58.560 I will tell you this. If a deal doesn't meet the seventy percent LTV, 104 00:07:58.759 --> 00:08:01.120 when you consider the purchase in the budget, it's not a good deal. 105 00:08:01.439 --> 00:08:07.240 And all a lot of times we save uh some of our builders and 106 00:08:07.120 --> 00:08:09.040 yeah, this is not a good deal. You should not be done. 107 00:08:09.079 --> 00:08:11.639 Your margins are too slam You got it? Got it? Yeah? I 108 00:08:11.639 --> 00:08:16.240 think I mentioned too that on the seventy percent that is based on after repaired 109 00:08:16.319 --> 00:08:20.600 value. That's that's the key. So in other words, the seventy percent 110 00:08:20.639 --> 00:08:22.759 after repaired value. Take, for example, if it's a rehab loan or 111 00:08:22.839 --> 00:08:28.639 new construction, that can still be up to ninety percent of the total cost. 112 00:08:28.959 --> 00:08:31.159 Right, So the best thing to do if there's someone who's interested in 113 00:08:31.200 --> 00:08:35.960 getting a private loan is to call us and we can run the numbers, 114 00:08:35.240 --> 00:08:39.120 you know, run the numbers for them, because the seventy percent is it's 115 00:08:39.159 --> 00:08:43.320 a little deceiving it. It's actually much higher than you realize when you look 116 00:08:43.360 --> 00:08:46.840 at just the cost of the loan. Okay, So, but builders are 117 00:08:46.879 --> 00:08:50.279 a big target market for that because of the ease of finance. Is that 118 00:08:50.320 --> 00:08:52.720 correct? That's correct. They don't have to go through so much red tape 119 00:08:52.720 --> 00:08:54.559 to get a line of credit, that's right. And banks have really tightened 120 00:08:54.600 --> 00:08:58.000 up. The banks really tightened up. And one of the things we always 121 00:08:58.039 --> 00:09:01.559 tell builders really and client, we're more expensive than a bank. We're more 122 00:09:01.600 --> 00:09:07.159 expensive obviously than a conventional one that that a conventional officer can get, but 123 00:09:07.240 --> 00:09:09.480 we're still cheaper than a partner. And that's the key. So we're in 124 00:09:09.519 --> 00:09:15.039 between a partner that might want fifty percent of the profit on a transaction, 125 00:09:15.679 --> 00:09:18.320 and and in between bank financy and capstones. Right in the middle of that. 126 00:09:18.399 --> 00:09:20.000 So it's like going to a convenience store to get a gown on milk. 127 00:09:20.000 --> 00:09:22.759 You'll pay more than going to H G B. But you don't want 128 00:09:22.840 --> 00:09:26.960 quicker, and you don't wait, and you don't got to walk so far. 129 00:09:26.759 --> 00:09:31.000 That's that's a good analogy I'm looking at it. That's the way I'm 130 00:09:31.000 --> 00:09:35.759 saying that analogy. Well, I like the Ray basically said it, but 131 00:09:37.240 --> 00:09:45.039 the the you want to say the phrase that you say, which is hard 132 00:09:45.039 --> 00:09:48.240 money or private lending is the cheapest equity partner you'll ever have. Okay, 133 00:09:48.399 --> 00:09:54.720 right, so that's why we get high level and totally most of our guys 134 00:09:54.720 --> 00:09:58.080 are bankable. A oh yeah, okay, okay. The reason I ask 135 00:09:58.120 --> 00:10:03.639 you and we talked about the frustration, at least in my experiences as a 136 00:10:03.679 --> 00:10:07.240 traditional what we call agency lender selling loans of the secondary market to Fannie Mae 137 00:10:07.440 --> 00:10:11.000 or Freddie Mac. You know, there's a lot of red tape, and 138 00:10:11.120 --> 00:10:13.600 you know, to close a loans usually around thirty days. Sometimes it's faster, 139 00:10:13.720 --> 00:10:16.200 but you know, there's a lot of documentation and stuff like that. 140 00:10:16.639 --> 00:10:20.240 So you guys, like you say, have a you all fill in the 141 00:10:20.279 --> 00:10:24.159 gap that's right between somebody who may not be able to qualify traditionally for whatever 142 00:10:24.200 --> 00:10:28.759 reason, but has a good, good asset and maybe good credit, and 143 00:10:28.799 --> 00:10:33.480 you guys can his asset base. Yeah. Yeah, So so you mentioned 144 00:10:33.480 --> 00:10:39.320 builders, custom builders, I assume yes, well most, I mean we 145 00:10:39.360 --> 00:10:43.159 do some spec, you do some spec Okay, okay, but what other 146 00:10:43.799 --> 00:10:48.440 type of primary clients would you also serve? Talk a little bit more about 147 00:10:48.440 --> 00:10:54.960 your your client base. So I would say bread and butter. Probably seventy 148 00:10:54.960 --> 00:11:01.000 percent of what we do is that new construction, mainly here Austin, Central 149 00:11:01.039 --> 00:11:05.480 Texas. Well, we do all of Texas. We've actually even lended outside 150 00:11:05.480 --> 00:11:09.519 of Texas. In fact, I was the borrower who piloted that program. 151 00:11:09.559 --> 00:11:15.200 I did six poems Seattle to Florida, got it. But yeah, the 152 00:11:15.200 --> 00:11:20.480 the primary place that we focus on right now, and this is by my 153 00:11:20.600 --> 00:11:26.320 own stamp or design, like I e. I don't let us go outside 154 00:11:26.360 --> 00:11:31.080 of that as we are solely in Texas. And even a bigger, more 155 00:11:31.440 --> 00:11:39.399 micro focus is the Austin to San Antonio corridor and then the forty six corridor 156 00:11:41.080 --> 00:11:46.200 saging all the way over to Bernie got through New Bronfels. So that's that's 157 00:11:46.360 --> 00:11:50.200 central Texas with the top edge of South Texas is primary. But we do, 158 00:11:50.519 --> 00:11:54.879 we do. We actually do a few things in Corpus and a little 159 00:11:54.919 --> 00:11:58.799 bit in Houston, not as much anymore, And then we loved Dallas for 160 00:12:00.200 --> 00:12:03.039 two Now we've seen, at least in my experience, we've seen a fairly 161 00:12:03.200 --> 00:12:07.320 big shift in the residential world. I want to focus on that for just 162 00:12:07.399 --> 00:12:09.720 a second. That's been my world. You know, as far as values 163 00:12:09.720 --> 00:12:15.200 in Austin, what are y'all seeing? Are you seeing? Let me put 164 00:12:15.200 --> 00:12:18.039 it this way. I've had some friends of mine who have gotten in some 165 00:12:18.120 --> 00:12:22.440 trouble, you know, in the fix and flip in the last year because 166 00:12:22.440 --> 00:12:24.879 they bought it wrong, right basic our timing was wrong, if you will, 167 00:12:26.720 --> 00:12:31.799 And they're they're challenged right now with with equity positions and selling properties and 168 00:12:33.039 --> 00:12:35.879 even leasing properties on some level. You know, what are y'all seeing as 169 00:12:35.919 --> 00:12:39.879 as as Austin goes, as far as values, are y'all bullish here? 170 00:12:39.960 --> 00:12:45.000 Still? I seem you are, well, yeah, we're we're highly bullish. 171 00:12:46.399 --> 00:12:50.679 But if you knew how to navigate this ten percent adjustment, which the 172 00:12:50.720 --> 00:12:58.559 numbers just came out last week and the past year year over year to the 173 00:12:58.600 --> 00:13:05.360 month of July was a ten percent reduction and value. Yeah, and then 174 00:13:05.399 --> 00:13:09.960 the last year in the last year. Yeah, So for us, we're 175 00:13:09.000 --> 00:13:13.519 still and that's not too bad. We're still yeah, we're still within that 176 00:13:13.679 --> 00:13:18.480 range that that we're okay from an asset standpoint, But we did when we 177 00:13:18.480 --> 00:13:24.679 were coming into COVID and the supply chains were affected, demand just shot through 178 00:13:24.679 --> 00:13:33.039 the roof. Everybody from the Left Coast and other areas moving here. They 179 00:13:33.519 --> 00:13:37.519 just absolutely the demand. I think there was one hundred and sixty five people 180 00:13:37.559 --> 00:13:41.840 a day coming to Austin. And do you know the stats on that today 181 00:13:41.879 --> 00:13:45.240 as far as people coming into town. Yeah, I mean we're not too 182 00:13:45.240 --> 00:13:50.360 far below that really from those about it was last month sometime, okay, 183 00:13:50.039 --> 00:13:54.399 so I'm thinking we're in one hundred quote me on that, but just curious. 184 00:13:54.519 --> 00:14:00.039 Yeah, it's still still really healthy. Yeah. I mentioned too on 185 00:14:00.360 --> 00:14:05.960 rehabs. Rehabs probably what would you say, curtis less than less than five 186 00:14:07.000 --> 00:14:11.679 percent, So less than five percent of our portfolio. It's exception transactions and 187 00:14:11.720 --> 00:14:15.159 there there's a couple of reasons for that. Number One, the margins on 188 00:14:15.200 --> 00:14:18.679 fix and flip transactions are much thinner than the margins on new construction, and 189 00:14:18.720 --> 00:14:22.639 the budgets are bigger surprise. Budgets are bigger surprises. They always say, 190 00:14:22.639 --> 00:14:24.919 you never know what's behind the walls, right, and and so that's been 191 00:14:24.919 --> 00:14:28.679 our experience. So we're not And Curtis has done both. He's done fix 192 00:14:28.759 --> 00:14:31.120 and flip, he's done new construction, he's done development, and and so 193 00:14:31.159 --> 00:14:37.159 the margins are always better on new construction, and that's why we favor new 194 00:14:37.159 --> 00:14:41.440 construction or renovations that. Fortunately we haven't had a lot of our borrowers get 195 00:14:41.480 --> 00:14:43.559 in trouble with that, with that price change that we've had over the last 196 00:14:43.559 --> 00:14:46.759 twelve thats because of that. That makes sense, That makes sense, and 197 00:14:46.799 --> 00:14:52.039 they're they're also liquid enough to write it out right. The builders. The 198 00:14:52.080 --> 00:14:54.679 builders, yeah, yeah, because they've done well with us few years. 199 00:14:54.000 --> 00:14:58.080 Tell us some tell us our viewers a little bit about some success stories. 200 00:14:58.320 --> 00:15:01.639 Maybe a client that y'all worked with in the past. It worked out for 201 00:15:01.679 --> 00:15:05.639 everybody, you know, including y'all. Sell if you have any suggestions around 202 00:15:05.679 --> 00:15:11.000 that. I think there's one primarily that we would discuss. And I don't 203 00:15:11.000 --> 00:15:15.360 think he'll care if I mentioned his name. Is his name, Peter Piveto 204 00:15:16.399 --> 00:15:22.559 he worked for the top custom luxury builder here in Austin. He ran their 205 00:15:22.600 --> 00:15:28.159 cruise for about seven years and in fact, his boss of that company used 206 00:15:28.159 --> 00:15:31.080 to work for is now it just become our new client. Awesome. He 207 00:15:31.200 --> 00:15:33.200 was literally the custom builder of the year in Austin, Wow, for the 208 00:15:33.279 --> 00:15:41.399 last two years. Awesome gossip. But Peter started off as an I don't 209 00:15:41.399 --> 00:15:45.480 know if you know what condo regimes are, yeah, okay, in one 210 00:15:45.759 --> 00:15:50.159 Okay. So when that became the thing and East Austin started going through that 211 00:15:50.240 --> 00:15:56.399 process and it was like automatic. He started off with a little fix and 212 00:15:56.399 --> 00:16:00.840 flip on the front property and then built new construction on the bad back sign 213 00:16:00.279 --> 00:16:04.080 and what was approximately that was twenty seventeen. Okay, it was a first 214 00:16:04.080 --> 00:16:10.120 deal I did in Capstown, got it, And that was the first deal 215 00:16:10.159 --> 00:16:15.759 he did on his own. Now he's building four multi multimillion dollar homes in 216 00:16:15.879 --> 00:16:22.000 Terrytown, Wow, and probably has seven or eight other developments going, including 217 00:16:22.039 --> 00:16:29.519 small subdivisions of eighteen units down to other kind of more median type. That's 218 00:16:29.559 --> 00:16:33.159 awesome conn the last six years. In the last six years, and he's 219 00:16:33.200 --> 00:16:37.919 gone from a guy who needed investors around him to not needing them. Is 220 00:16:37.919 --> 00:16:41.200 he's still a client, he's still a client of Yes, so he's doing 221 00:16:41.200 --> 00:16:44.440 some big stuff. Yeah, that's it, right, And just just to 222 00:16:44.519 --> 00:16:48.120 tag in on that, with hard money lending bridge lending, it helps people 223 00:16:48.200 --> 00:16:52.639 like that get started where we where we do be gives chief secuity partner you're 224 00:16:52.639 --> 00:16:56.919 going to have, like you said earlier, and and so we're willing as 225 00:16:56.919 --> 00:16:59.759 a hard money lender, we're willing to take that risk that a bank may 226 00:16:59.799 --> 00:17:03.960 not take because we're still asset based. So so Peter had great experience, 227 00:17:04.160 --> 00:17:08.039 right, great person to work with, right, And there's any representstive a 228 00:17:08.079 --> 00:17:11.920 lot of barbers that way, he'll come back for more, and he'll come 229 00:17:11.960 --> 00:17:15.160 back for more. And so it happens. What we really love about our 230 00:17:15.200 --> 00:17:18.519 business and I would see that sometimes on the conventional side, but we really 231 00:17:18.519 --> 00:17:21.920 love about hard money lending is a lot of our clients to become clients for 232 00:17:21.960 --> 00:17:26.119 life. Sure, And we might do three, four or five six transactions 233 00:17:26.160 --> 00:17:27.720 you know, a year. In some cases it's been how big they are. 234 00:17:29.440 --> 00:17:32.240 We'll do a lot, we'll do multiple transactions and they'll come back and 235 00:17:32.319 --> 00:17:34.799 we'll do another loan for them, right, And it's it's usually similar terms. 236 00:17:34.839 --> 00:17:37.640 But what they really appreciate is that they can give us a call and 237 00:17:37.680 --> 00:17:41.599 say, hey, I've got another one right and and we just we bring 238 00:17:41.599 --> 00:17:45.519 them through that next process. So we do operate very much like an equity 239 00:17:45.519 --> 00:17:48.640 partner a lot of ways, but we're still lending as if we were a 240 00:17:48.680 --> 00:17:52.200 bank. Yeah, so it speaking of the equity partner, do you ever 241 00:17:52.279 --> 00:17:56.599 do true equity partner with people? Typically we don't. The loan structure that 242 00:17:56.640 --> 00:18:02.119 we have gives them the equity that they we easily prefer to just stay in 243 00:18:02.160 --> 00:18:04.960 the lending business, and that is something that Capstone's going to be looking into 244 00:18:06.000 --> 00:18:08.319 in the near future. We're not there yet, but but right now, 245 00:18:08.319 --> 00:18:11.160 with the structure that we have, it's it's it operates as if we are 246 00:18:11.200 --> 00:18:15.519 an equity partner. Okay, we're just establishing a second fund that that will 247 00:18:15.559 --> 00:18:18.279 be part of it. It's already up and running. But we're just not 248 00:18:18.960 --> 00:18:23.079 moving there quick. You're not investing any any of that money in not quite, 249 00:18:23.119 --> 00:18:26.559 We're still lending it. Okay, good good, good, Before up, 250 00:18:27.039 --> 00:18:30.799 before I forget, let's let's make sure what people know how to get 251 00:18:30.799 --> 00:18:33.920 a hole of y'all. Okay, if they're wanting no more information. This 252 00:18:33.000 --> 00:18:37.200 is just a snapshot, this little radio show. So tell us your number, 253 00:18:37.279 --> 00:18:41.440 your email address or whatever. Your website Okay, it's Capstone Lending dot 254 00:18:41.480 --> 00:18:47.000 com. Okay, and my email address. Easy, it's Curtis c R 255 00:18:47.079 --> 00:18:49.160 T I s at Capstone Lending dot com. Got it, got it? 256 00:18:49.400 --> 00:18:55.119 And Ray knows this. I mean, my my builders are texting me their 257 00:18:55.200 --> 00:18:59.839 Longhorn games and we're going back and forth about things like that, and in 258 00:19:00.039 --> 00:19:00.400 the middle of it, it's like, oh, by the way, I 259 00:19:00.440 --> 00:19:06.480 got a deal coming to them Monday, so my personal I'll give them my 260 00:19:06.519 --> 00:19:11.519 personal cell phone five one two six five six one four three three okay. 261 00:19:11.079 --> 00:19:18.920 And to get around any unintended firewalls, text me, yeah there. You 262 00:19:18.240 --> 00:19:22.880 much easier than getting hold of me through phone call because you might get my 263 00:19:22.920 --> 00:19:26.039 spam robot killer. Yeah, I got it, got it. Didn't I 264 00:19:26.039 --> 00:19:30.079 didn't know about the robot killer, but I need one of those. You 265 00:19:30.079 --> 00:19:33.440 know, it works really well. There's a way for them to leave a 266 00:19:33.519 --> 00:19:36.000 message and say who it is, and I can kind of screen it, 267 00:19:36.119 --> 00:19:38.319 right, but otherwise texts the way to go. It seems like that is 268 00:19:38.359 --> 00:19:44.720 a preferred method of communication these days for sure, you know, so and 269 00:19:44.759 --> 00:19:48.079 so, speaking of your clients who come back for more, let's assume that 270 00:19:48.640 --> 00:19:52.319 these builders come back. How how fast can you fund a deal generally speaking 271 00:19:52.079 --> 00:19:56.680 typically anywhere? It depends on and depends on the transaction and how you know, 272 00:19:56.680 --> 00:20:00.119 if they've got their documents together, because it could be anywhere from a 273 00:20:00.160 --> 00:20:02.799 week to four weeks on the average. When didn't you say, Curtis, 274 00:20:02.960 --> 00:20:04.960 Yeah, that's that's an average. I mean, look, we've we've funded 275 00:20:06.000 --> 00:20:10.839 an eight million dollars deal in like forty eight hours because the guy who's gonna 276 00:20:10.880 --> 00:20:15.039 lose his property to a nefarious loan own kind of lender. Uh huh, 277 00:20:17.200 --> 00:20:23.000 and we knew him and trusted him, and uh I did the personal My 278 00:20:23.200 --> 00:20:26.599 my expertise is in value. Yeah, so I did the thing, so 279 00:20:26.880 --> 00:20:30.400 we can do that. It's not our preference, sure, right, I 280 00:20:30.519 --> 00:20:37.039 understand. I'm just curious and relative to commercial properties, can you share a 281 00:20:37.079 --> 00:20:40.920 little bit what what y'all do in that space, you know, like apartments 282 00:20:40.960 --> 00:20:44.799 to work in that warehouse or anything like that. We're we're we're we're kind 283 00:20:44.839 --> 00:20:47.599 of getting close to that. But right now what we're doing is typically land 284 00:20:47.799 --> 00:20:51.400 that's going to be a future apartment complex, okay. And so we'll get 285 00:20:51.440 --> 00:20:53.640 developers, commercial developers that will come to us, they'll purchase to land because 286 00:20:53.640 --> 00:20:56.759 they need to purchase it. Maybe quickly. They'll come to a company like 287 00:20:56.839 --> 00:21:00.920 Capstone to get what's called the bridge loan, and they'll they'll acquire the property, 288 00:21:02.200 --> 00:21:03.960 might do some horizontal development on it, and then eventually they'll end up 289 00:21:03.960 --> 00:21:07.880 getting financing. No, there's hut financing out there for for apartments that that 290 00:21:08.039 --> 00:21:11.200 you know would be hard for anybody to compete with. Okay. So typically 291 00:21:11.240 --> 00:21:15.039 it's not on the vertical construction, but it's on the horizontal development of what 292 00:21:15.839 --> 00:21:22.119 might be either a subdivision or it might be or BTR or multi family. 293 00:21:22.799 --> 00:21:26.920 Yeah, and BTRs for those and the build the rent. So that's that's 294 00:21:26.960 --> 00:21:30.960 a huge, huge movement right now. I'll see in the single family world. 295 00:21:30.200 --> 00:21:33.880 Yeah, yeah, we'll see how long it last. But those who 296 00:21:33.960 --> 00:21:38.599 are able to from a from a portfolio standpoint, hold onto that and get 297 00:21:38.680 --> 00:21:45.599 there. You're seeing a lot of institutions more more than the clients we serve. 298 00:21:45.079 --> 00:21:51.319 Yeah, but our guys are preparing and entitling the land for those guys. 299 00:21:51.759 --> 00:21:53.279 Okay, I've got to do on New Bronfels. It's doing that all 300 00:21:53.319 --> 00:21:59.920 right now. Okay, So all right, and you you interchange the words 301 00:22:00.160 --> 00:22:03.200 hard money to private lending to bridge loans. Is that correct? Yes? 302 00:22:03.440 --> 00:22:07.160 Okay, because it's I didn't know that. I thought there was a separate 303 00:22:07.200 --> 00:22:08.839 thing, to be honest with you, Okay, but when you speak about 304 00:22:08.920 --> 00:22:12.680 bridge loans to me, that's a that's a sort of a temporary situation. 305 00:22:12.880 --> 00:22:15.039 You want to roll out of those pretty fast, don't you. We do. 306 00:22:15.200 --> 00:22:18.519 So most of our loans are anywhere from you know, twelve months to 307 00:22:18.640 --> 00:22:22.480 thirty six months, probably more twelve months or less in most cases, unless 308 00:22:22.559 --> 00:22:26.519 a new construction we're looking at, probably would you say, yeah, okay, 309 00:22:26.759 --> 00:22:30.559 yes, and y'all fund it from the ground up? Yeah we do. 310 00:22:30.799 --> 00:22:33.680 Yeah. I always say from trees to keys. I like that. 311 00:22:34.200 --> 00:22:41.079 I like that. I like that. So what else can y'all share in 312 00:22:41.160 --> 00:22:44.519 your world? I'm gonna let you guys run with it. Well, another 313 00:22:44.559 --> 00:22:47.039 thing I would mention too. So we talked a little bit about what type 314 00:22:47.079 --> 00:22:49.599 of transactions we fund new construction. We'll do commercial development, We'll do commercial 315 00:22:49.680 --> 00:22:52.440 land. You know, we have ratios that we like to look at. 316 00:22:52.519 --> 00:22:55.200 So we don't like to do a lot of land, right, so we 317 00:22:55.319 --> 00:22:57.759 have to we have to kind of watch those percentages. But we'll do We'll 318 00:22:57.799 --> 00:23:00.960 do commercial office. That's not a real popular asset right now, but we'll 319 00:23:02.000 --> 00:23:04.200 look at that if it's a low loan to loan to value and the barber's 320 00:23:04.240 --> 00:23:08.839 got liquidity. Another thing that we've done too is cash out refinances, and 321 00:23:08.960 --> 00:23:12.960 that's where we've done a lot of those lately. And they're not necessarily come 322 00:23:14.079 --> 00:23:17.119 to us for obviously a better interest rate, but they're coming to us because 323 00:23:17.160 --> 00:23:19.680 they need some cash. So if they're sitting on a commercial building and they 324 00:23:19.799 --> 00:23:22.839 own it free and clear, or they have a small first lean balance on 325 00:23:22.920 --> 00:23:26.240 it, and they'll come to someone like Capstone to say, hey, I 326 00:23:26.319 --> 00:23:30.839 need to get an extra hundred thousand on this particular property that I own to 327 00:23:30.359 --> 00:23:33.599 reinvest it back into the business. Right. So that's the other thing we 328 00:23:33.920 --> 00:23:37.359 have. Another one, we've had some other ones in the past, I 329 00:23:37.400 --> 00:23:41.200 should say, where there's been they're buying out errors and the property, you 330 00:23:41.279 --> 00:23:44.720 know, buying out the brother and the sister and you know, and then 331 00:23:45.119 --> 00:23:48.279 one of the siblings wants to keep it, and so they're buying them out, 332 00:23:48.359 --> 00:23:51.559 And usually what happens is they'll usually go to a bank first and the 333 00:23:51.599 --> 00:23:52.960 bank says, well, we want to see some seasoning, right, and 334 00:23:53.079 --> 00:23:56.640 so come back to us in twelve months. So they'll come to Capstone, 335 00:23:56.000 --> 00:23:59.799 they'll get the seasoning, they'll get the track record. Then they'll go back 336 00:23:59.799 --> 00:24:02.079 to the bank a lot easier loaned to do when they go back. That's 337 00:24:02.160 --> 00:24:06.279 right, Well, you do residential too. We'll do residential as long as 338 00:24:06.279 --> 00:24:08.880 it's not unoccupied. So all we can do has to be invested homes, 339 00:24:10.160 --> 00:24:12.319 forget about that. It has to be investments. So in that example, 340 00:24:12.400 --> 00:24:17.559 that would be like an investment property right that they may have inherited and and 341 00:24:17.640 --> 00:24:18.759 they need to buy buy. Okay, it will be like a line of 342 00:24:18.799 --> 00:24:22.039 credit almost it would be, but we would actually just do it as alone. 343 00:24:22.279 --> 00:24:26.359 So we would just cash them out and we're okay with cash outs as 344 00:24:26.400 --> 00:24:30.079 long as it fits our LTV loan to value parameters. Is there anybody in 345 00:24:30.119 --> 00:24:33.839 the world doing your sort of business with unoccupied properties or no? Is that 346 00:24:34.400 --> 00:24:38.000 I don't think they're in Texas. They're not in Texas. Yeah, it's 347 00:24:38.079 --> 00:24:42.160 really hard. If they are, they're doing it creatively, and okay, 348 00:24:42.279 --> 00:24:45.720 not announcing it because there's a lot of people who come to me that I 349 00:24:45.839 --> 00:24:48.440 can't help. Yeah, we get a lot of we get a lot of 350 00:24:48.480 --> 00:24:52.599 mortgage brokers calling us and hey, got this owner occupied yep, that just 351 00:24:52.680 --> 00:24:56.240 can't do it. Yeah, understanding, strangeful. Those are the quickest phone 352 00:24:56.240 --> 00:25:02.559 calls we get. Yeah, like and and and like, and I wish 353 00:25:02.599 --> 00:25:04.400 we could help them out. It's just you've got the Texas homestead laws and 354 00:25:04.440 --> 00:25:07.119 it gets real ugly, and it gets real hard for hardy to do that, 355 00:25:07.559 --> 00:25:10.640 you know, and in traditionally, like I do. You know, 356 00:25:10.799 --> 00:25:12.759 our rates are pushing seven a half percent right now. You know that's a 357 00:25:12.920 --> 00:25:21.279 qualified borrower. You're hitting on something that we are getting people like the top 358 00:25:21.880 --> 00:25:26.960 builder I spoke up earlier. Yeah, he's totally bankable. Yeah, the 359 00:25:27.119 --> 00:25:33.880 interest rates are are literally bringing those people to us because they'd rather pay a 360 00:25:33.960 --> 00:25:37.240 couple more points. Absolutely, absolutely, Well, this is just we're just 361 00:25:37.440 --> 00:25:41.359 kind of scratching the surface right now. You know. I mean, I'm 362 00:25:41.440 --> 00:25:44.440 here, like I said beginning, I'm here to learn too, because I 363 00:25:44.720 --> 00:25:47.000 want to know more about what you do and how to participate in that, 364 00:25:47.200 --> 00:25:51.200 whether it be the fund or my personal investments. You know, so i'd 365 00:25:51.279 --> 00:25:55.240 like to have you guys back again, you know, and more. We've 366 00:25:55.240 --> 00:25:56.720 got a lot of questions here. We've covered maybe about a third of them 367 00:25:56.880 --> 00:26:00.880 at most, you know, so we're gonna wrap it up today, guys, 368 00:26:00.000 --> 00:26:04.240 and again we will appreciate y'all listen in to Mortgage Talk, where every 369 00:26:04.279 --> 00:26:10.359 week we come in here with some some knowledgeable people to share what's going on 370 00:26:10.440 --> 00:26:14.839 in the world to help help you guys make better decisions around your investment. 371 00:26:14.960 --> 00:26:18.079 So until then, thanks again, guys, thank you, thank you, 372 00:26:18.279 --> 00:26:22.440 Thank you. Mark Well, this has been Mortgage Talk with Mark Hairston. 373 00:26:22.720 --> 00:26:30.240 Mark is a mortgage advocate with Texas Mortgage Source LLC, offering personalized mortgage solutions, 374 00:26:30.480 --> 00:26:34.319 vast customized quotes, great rates, and service with integrity. Contact Mark 375 00:26:34.440 --> 00:26:40.759 at Mark Hairston dot com Mark Hairston dot com. You can call our text 376 00:26:40.839 --> 00:26:45.720 Mark at five one two seven eight nine sixty nine sixty seven. That's five 377 00:26:45.799 --> 00:26:49.440 one two seven eight nine sixty nine sixty seven and come back next week for 378 00:26:49.599 --> 00:26:51.960 more mortgage Talk.