WEBVTT 1 00:00:00.120 --> 00:00:02.879 For thirty five years, Cindy Stumpo has been a female 2 00:00:02.879 --> 00:00:06.400 home builder with a passion for design, a mastery of detail, 3 00:00:06.480 --> 00:00:09.320 and a commitment to her crack. With daughter Samantha Stumpo 4 00:00:09.439 --> 00:00:10.320 by her side. 5 00:00:10.039 --> 00:00:11.640 I don't need the whole family on a date with me. 6 00:00:11.800 --> 00:00:13.439 That's a good note. It's godymn weird. 7 00:00:13.560 --> 00:00:13.800 See. 8 00:00:13.800 --> 00:00:17.519 Stumpo Development is the only second generation female construction company 9 00:00:17.559 --> 00:00:18.160 in the country. 10 00:00:18.280 --> 00:00:19.960 You're crazy, You're a wacko. 11 00:00:19.839 --> 00:00:22.320 You're insane. 12 00:00:22.320 --> 00:00:23.719 I mean, it just doesn't end together. 13 00:00:23.879 --> 00:00:27.480 Cindy and Samantha welcome guests to explore the world of construction, 14 00:00:27.760 --> 00:00:30.239 real estate, development, design and more. 15 00:00:30.480 --> 00:00:31.039 Unpredictable. 16 00:00:31.160 --> 00:00:32.679 Every time I think I know what you want, you 17 00:00:32.799 --> 00:00:33.359 just switch it out. 18 00:00:33.439 --> 00:00:34.960 But that's what makes your houses. 19 00:00:34.640 --> 00:00:37.399 All your day. Discuss anything that happens between the roof 20 00:00:37.439 --> 00:00:40.320 and the foundation. Nothing is off limits. You truly do 21 00:00:40.399 --> 00:00:42.560 care about everybody. She can yell at chicken screen, but 22 00:00:42.600 --> 00:00:44.840 when you get her alone, she's the best person on 23 00:00:44.880 --> 00:00:54.640 the planet. Cindy Stumpo is tough as nails. 24 00:00:52.079 --> 00:00:54.880 And welcome to Cidy Stumpo Toughest Nails on w Z 25 00:00:55.000 --> 00:00:57.560 News Radio ten thirty. Our guests tonight are. 26 00:00:57.560 --> 00:01:01.079 Lena Grillo, Sean, Kelly Rand, Tyler Angelina, what do you do? 27 00:01:01.359 --> 00:01:03.679 I'm a closet designer for a clause is by Design 28 00:01:03.759 --> 00:01:04.239 in Boston. 29 00:01:05.680 --> 00:01:06.439 I'm Tyler Wender. 30 00:01:06.480 --> 00:01:08.480 I'm a developer and on a real estate brokerage out 31 00:01:08.480 --> 00:01:09.120 here in Boston. 32 00:01:09.280 --> 00:01:11.959 Okay, and missus my pians. 33 00:01:11.840 --> 00:01:15.959 Come on, John Kelly Wren, the already advisors, so private 34 00:01:16.000 --> 00:01:16.799 lender in Boston. 35 00:01:17.239 --> 00:01:21.040 Okay. So just a little short history. Just everybody give 36 00:01:21.120 --> 00:01:22.760 what they do. We understand what lean it does, we 37 00:01:22.840 --> 00:01:26.239 understand what I do. What makes you so good at 38 00:01:26.239 --> 00:01:28.079 hard money lending? Just give me a little bit? 39 00:01:28.239 --> 00:01:29.599 Call it private lending, private credit? 40 00:01:29.640 --> 00:01:30.799 What if you want to call it? Wait, what's the 41 00:01:30.879 --> 00:01:32.760 proper you call it? Anything you want to call it. 42 00:01:32.840 --> 00:01:34.599 Let's talk about you know why we do it? How 43 00:01:34.640 --> 00:01:36.319 do we get into it? And you know we've been 44 00:01:36.319 --> 00:01:36.760 doing it now? 45 00:01:37.280 --> 00:01:38.640 First of all, I want to know your proper name, 46 00:01:39.359 --> 00:01:42.400 John Kelly w Rean. No, I don't. What do I 47 00:01:42.480 --> 00:01:45.560 get that? Are you guys still considered hard money lending? 48 00:01:45.599 --> 00:01:49.920 Guys London guys? Oh what lending lending? I don't lending. 49 00:01:50.079 --> 00:01:52.079 I don't think of myself as a hard money lender. 50 00:01:52.159 --> 00:01:54.640 I think of us you know, Oh, you're just trying 51 00:01:54.680 --> 00:01:56.560 to put a more professional name over your heads. 52 00:01:57.040 --> 00:01:59.760 No, but I think it's something different. Right, I'm running 53 00:02:00.000 --> 00:02:01.879 a private credit fund. I think of hard money lending 54 00:02:02.200 --> 00:02:03.680 is a very old school. 55 00:02:04.280 --> 00:02:07.760 No way I'm doing it hard money lending. Guys, we're 56 00:02:07.799 --> 00:02:09.599 definitely gangsters back in the days. 57 00:02:09.639 --> 00:02:10.560 Not a gangster. 58 00:02:10.639 --> 00:02:13.199 Okay, So let's go where it started. It was street money. 59 00:02:13.240 --> 00:02:14.840 But and this isn't street. 60 00:02:15.520 --> 00:02:19.439 Street money to hard money lending. And now you're. 61 00:02:20.400 --> 00:02:23.400 Call it private credit, private credit, well, private credit on 62 00:02:23.439 --> 00:02:26.400 the side, from the investors side, from the borrower side, 63 00:02:26.400 --> 00:02:27.199 it's private lending. 64 00:02:27.199 --> 00:02:28.879 What do you call it? What would tyler? What do 65 00:02:28.919 --> 00:02:29.199 you call it? 66 00:02:29.199 --> 00:02:30.159 You guys are still hard money. 67 00:02:30.319 --> 00:02:31.680 It was a client private lending. 68 00:02:31.680 --> 00:02:33.639 If I'm going to go do a cosmetic fix and flip, 69 00:02:33.639 --> 00:02:35.800 I'm gonna go get hard money for a five six 70 00:02:35.840 --> 00:02:38.520 month loan. Yeah, the industry is private lending. It's it's 71 00:02:38.560 --> 00:02:39.199 non bank lender. 72 00:02:39.240 --> 00:02:41.000 I mean, it's that like stock broke, as they went 73 00:02:41.039 --> 00:02:44.159 from stockbrokers to financial advisors to wealth advisors. 74 00:02:44.439 --> 00:02:45.199 What is Blackstone? 75 00:02:45.280 --> 00:02:48.759 Blackstone runs, you know, a private credit fund that lends 76 00:02:48.800 --> 00:02:52.199 to other private credit funds, and they're you wouldn't hard money. 77 00:02:52.400 --> 00:02:53.840 You don't call them a hard money lender, right? 78 00:02:54.000 --> 00:02:54.199 Right? 79 00:02:54.520 --> 00:02:56.240 Why why don't you call them a hard money lender. 80 00:02:56.319 --> 00:02:58.280 It's a senior loan on a piece of property and 81 00:02:58.280 --> 00:02:58.919 it's non bank. 82 00:02:58.960 --> 00:02:59.560 What's the difference? 83 00:02:59.599 --> 00:03:01.800 Good point taken right, And that's what we are. We're 84 00:03:01.840 --> 00:03:04.240 seeing your loan on a property non bank. 85 00:03:04.319 --> 00:03:05.520 Are you ever going to get to that level? 86 00:03:06.000 --> 00:03:08.520 Yeah? You will, yeah, maybe in a blackstone, but I 87 00:03:08.520 --> 00:03:09.840 think we're gonna we'll hit a billion. 88 00:03:10.080 --> 00:03:12.120 You'll hit a billion, ye, So goals to hit a 89 00:03:12.120 --> 00:03:12.759 billion buy. 90 00:03:13.280 --> 00:03:16.120 It's probably about ten years, ten years. 91 00:03:16.199 --> 00:03:19.520 Oh yeah, yeah, y'll be dead. Ten years sounds like 92 00:03:19.560 --> 00:03:21.639 a long time away. No for me, it sounds like 93 00:03:21.680 --> 00:03:24.080 a very short time a way. For you guys, that's 94 00:03:24.080 --> 00:03:25.560 when you should be coming to your project. 95 00:03:25.560 --> 00:03:27.280 And I think we're that's not actually true. 96 00:03:27.319 --> 00:03:30.039 You howled in forty five, Oh yeah, fifty five, Yeah, 97 00:03:30.039 --> 00:03:32.039 forty five to fifty five, great years. Thirty five to 98 00:03:32.080 --> 00:03:34.039 fifty five, those are the years. Those are your twenty 99 00:03:34.039 --> 00:03:36.000 best years of making money. I keep telling people that 100 00:03:36.319 --> 00:03:38.280 unless you just came up with something that's really great 101 00:03:38.319 --> 00:03:40.280 and it's it's sold. 102 00:03:40.400 --> 00:03:41.879 And so I think when people talk about you know, 103 00:03:41.879 --> 00:03:44.159 it's talk about old school hard money lending, which is 104 00:03:44.199 --> 00:03:46.800 kind of like an individual or several individuals lending to 105 00:03:46.840 --> 00:03:48.960 where we are now and a lot of the lenders 106 00:03:49.000 --> 00:03:51.159 in the industry, it's almost up the morning train. 107 00:03:51.240 --> 00:03:52.560 You a kick camp onod not that I'm trying to. 108 00:03:52.599 --> 00:03:54.560 You want one? I know you do, Okay, I'll throw 109 00:03:54.639 --> 00:03:56.280 you on. Here you go. We're throwing kick camp buzz 110 00:03:56.800 --> 00:04:01.599 in the studio. What is this one? White chocolate? I 111 00:04:01.639 --> 00:04:02.560 only like milk chocolate. 112 00:04:03.680 --> 00:04:05.159 Anybody could kick cut barcels. 113 00:04:05.159 --> 00:04:08.439 Now do you want white chocolate? All right, listen, bankers 114 00:04:08.479 --> 00:04:10.639 can't be choosing. I meant white chocolate. Go ahead, I'm sorry. 115 00:04:10.800 --> 00:04:12.479 So it's not really go ahead. 116 00:04:12.240 --> 00:04:13.800 But it's institutionalized. 117 00:04:14.639 --> 00:04:16.879 So now you know, if you look at private lending 118 00:04:16.959 --> 00:04:19.639 and what people are surprised to find is some of 119 00:04:19.879 --> 00:04:21.879 you know, what youth used to think of hard money lenders, 120 00:04:22.079 --> 00:04:26.959 You may find that KKR or Blackstone or JP Morgan 121 00:04:27.519 --> 00:04:28.279 is behind. 122 00:04:28.040 --> 00:04:33.519 Those White chocolate really sucks, It sucks horrible. No, it 123 00:04:33.519 --> 00:04:36.959 really doesn't like milk chocolate. Okay, go ahead, I'm just 124 00:04:37.160 --> 00:04:38.680 I'm just taking off. 125 00:04:39.079 --> 00:04:39.319 Yeah. 126 00:04:39.519 --> 00:04:41.959 No, But so it's gotten a lot more I would 127 00:04:42.000 --> 00:04:44.800 say institutional in terms of who your investors are, and 128 00:04:44.839 --> 00:04:46.680 then the firms that are doing it, they're actually going 129 00:04:46.720 --> 00:04:48.879 a lot of these loans if you're talking about your 130 00:04:48.920 --> 00:04:51.439 your standard fix and flip loans, not necessarily the bridge 131 00:04:51.439 --> 00:04:55.000 loans and the true ground up construction loans, non bank loans, 132 00:04:55.160 --> 00:04:58.160 but they're they're in funds, they're they're being securitized the 133 00:04:58.199 --> 00:05:01.160 same way you securitize residential mortgage. It's much more sophisticated 134 00:05:01.240 --> 00:05:05.319 industry than it was twenty years ago. And that's why 135 00:05:05.519 --> 00:05:07.600 Wall Street saw an opportunity. There's a lot of money 136 00:05:07.639 --> 00:05:09.879 in it, very high yield, how do they get into it? 137 00:05:09.959 --> 00:05:12.480 So and that's where the industry is going. 138 00:05:12.480 --> 00:05:16.240 So how long did people look at hard money? Guys, though, 139 00:05:17.199 --> 00:05:18.839 since you've been in it still look at it like 140 00:05:18.920 --> 00:05:22.040 a street thing. When you first got in, it was 141 00:05:22.079 --> 00:05:23.399 a street over on that one. 142 00:05:23.600 --> 00:05:26.839 Yeah, I mean we started in twenty seventeen. You know, 143 00:05:27.079 --> 00:05:30.480 our partners, we have a business partner on it in 144 00:05:30.560 --> 00:05:32.399 my firm. They've been doing it for a bit longer. 145 00:05:32.399 --> 00:05:35.759 And I think when they started early on how it 146 00:05:35.800 --> 00:05:38.519 was having that several years before that, So I think they. 147 00:05:38.399 --> 00:05:40.319 Were oneenty seventeen Street was off that. 148 00:05:40.720 --> 00:05:42.920 It's still in but it's not you know, I think 149 00:05:42.920 --> 00:05:45.279 it was fading away. So you still have and you 150 00:05:45.319 --> 00:05:46.639 still have a lot of guys out there. You know, 151 00:05:46.680 --> 00:05:49.399 there's probably one hundred lenders in Massachusetts, right, and then 152 00:05:49.399 --> 00:05:51.199 you've got very few kind of that. You know, you 153 00:05:51.279 --> 00:05:53.240 have a top ten that are probably a little bit 154 00:05:53.279 --> 00:05:55.639 more institutional, and you kind of have everybody else. And 155 00:05:55.639 --> 00:05:57.879 you see some of the old school guys, kind of 156 00:05:57.879 --> 00:06:00.279 people shying away from them, right, they're not lending to 157 00:06:00.759 --> 00:06:01.480 so you hard. 158 00:06:02.040 --> 00:06:03.399 I'm sorry, I don't want to disrespect you. 159 00:06:03.439 --> 00:06:04.800 Ye, no, call what you want to call it. 160 00:06:05.000 --> 00:06:09.120 So you private lenders pay every month, okay, don't network 161 00:06:09.160 --> 00:06:12.360 with other private lenders outside the state. That's just so 162 00:06:12.480 --> 00:06:14.959 well to me. So just to hear where the markets are, 163 00:06:15.439 --> 00:06:17.399 where the economy is going throughout the country. 164 00:06:17.600 --> 00:06:19.920 I mean, I know, you know, I know quite a 165 00:06:19.920 --> 00:06:21.800 few that are out of the state. We speak to 166 00:06:22.120 --> 00:06:24.920 other lenders in New York, other lenders. I speak to 167 00:06:24.959 --> 00:06:27.720 other letters in the North area, in the Northeast. I 168 00:06:27.720 --> 00:06:29.759 speak to groups in Miami. I speak to groups in 169 00:06:29.800 --> 00:06:32.399 the West Coast. You know, we have the chat. I 170 00:06:32.439 --> 00:06:35.959 also speak quite a bit with so what a lot 171 00:06:35.959 --> 00:06:39.199 of lenders actually don't hold the loan. So a lot 172 00:06:39.240 --> 00:06:41.240 of lenders out there, you'll be surprised to find that 173 00:06:41.680 --> 00:06:43.319 you do a loan. And just like somebody does a 174 00:06:43.319 --> 00:06:45.199 home mortgage and they get a home mortgage from whatever 175 00:06:45.279 --> 00:06:47.279 local bank, and all of a sudden, US Bank is 176 00:06:47.319 --> 00:06:50.199 sending them a mortgage statement. They're going, wait a second, 177 00:06:50.199 --> 00:06:51.879 I thought I got it from Village Bank, and all 178 00:06:51.920 --> 00:06:53.839 of a sudden, I'm getting a statement because their loan 179 00:06:53.959 --> 00:06:56.439 was sold. And so the same way, a lot of 180 00:06:56.480 --> 00:06:59.480 private lenders that are lending, they don't actually have the 181 00:06:59.519 --> 00:07:01.560 capital make the loan, and they sell the loan. And 182 00:07:01.600 --> 00:07:04.199 so then there's these large firms that are buying one 183 00:07:04.240 --> 00:07:07.319 hundred million plus of loans around the country per year 184 00:07:07.800 --> 00:07:10.759 at or per month, and so they're multi billion dollar firms. 185 00:07:10.920 --> 00:07:12.759 And so those guys that get on the phone with. 186 00:07:12.759 --> 00:07:17.199 The mortgage for call you guys mortgage less residential guys. 187 00:07:17.319 --> 00:07:19.879 We don't deal with anything that's owner occupant. And so 188 00:07:20.160 --> 00:07:23.120 there's a very fine line if you're dealing with owner occupants, 189 00:07:23.160 --> 00:07:24.480 that's completely different industry. 190 00:07:24.519 --> 00:07:25.519 Well, I think you can't even touch it. 191 00:07:25.600 --> 00:07:27.279 You can't touch it. No, I wouldn't touch it because that. 192 00:07:27.360 --> 00:07:29.759 Guy called me that need to borrow money and said, sendey, 193 00:07:29.759 --> 00:07:31.519 I'll put my house up. I said, dude, I can't. 194 00:07:31.920 --> 00:07:34.720 I can't lean your private property that's long gone. 195 00:07:35.279 --> 00:07:36.639 And you don't want to do that, right and I 196 00:07:36.639 --> 00:07:38.519 don't want to do that. And it's just almost like 197 00:07:38.560 --> 00:07:40.199 a you know, it's not stuff we want to be 198 00:07:40.319 --> 00:07:40.759 involved with. 199 00:07:40.759 --> 00:07:46.560 The hey bing you there is being still there. So 200 00:07:46.720 --> 00:07:49.160 do you send out to hard money guys? Do you 201 00:07:49.160 --> 00:07:51.399 prefer hard money guys business? And you're up in your 202 00:07:51.439 --> 00:07:54.160 area in New Jersey, absolutely. 203 00:07:53.720 --> 00:07:55.079 Cindy Harmony guys. 204 00:07:55.399 --> 00:07:58.720 They've become an essential part of Lindy lending all the 205 00:07:58.759 --> 00:07:59.160 way around. 206 00:07:59.199 --> 00:08:00.360 I mean, if you're in a real state. 207 00:08:00.279 --> 00:08:02.959 Industry, if you're truly in every facet of the roal 208 00:08:03.040 --> 00:08:05.959 estate industry, you can't get by without having hard money 209 00:08:05.959 --> 00:08:07.079 people and your rolodex. 210 00:08:08.120 --> 00:08:10.600 So he is and he's a mortgage broker, so he 211 00:08:10.720 --> 00:08:12.480 is using guys like you, and it's just yeah, and. 212 00:08:12.720 --> 00:08:15.720 And some guys do calls. We're not dealing with homeowners, 213 00:08:15.800 --> 00:08:17.959 We're dealing with developers. And so if I get a call, 214 00:08:18.120 --> 00:08:21.079 it's more there's some mortgage brokers that deal with both 215 00:08:21.160 --> 00:08:24.319 with homeowners and were there typically what I'm dealing with 216 00:08:24.519 --> 00:08:27.160 because our projects are a little bit larger, are dealing 217 00:08:27.199 --> 00:08:29.920 with professionals. They're more like commercial mortgage brokers as opposed 218 00:08:29.959 --> 00:08:31.639 to resident and you too, Jonathan. 219 00:08:33.440 --> 00:08:37.240 Yeah, absolutely, Sindy commercial mortgage brokers. 220 00:08:37.440 --> 00:08:39.000 We do commercial mortgage lending. 221 00:08:38.759 --> 00:08:41.960 As well, so you know, but you know, these hard 222 00:08:41.960 --> 00:08:44.919 money guys, once again, you got to look at they 223 00:08:45.240 --> 00:08:48.679 have more of a risk appetite, appetite for risk. Then 224 00:08:49.000 --> 00:08:51.799 let's say, are traditional of a bank, you know banks, 225 00:08:51.840 --> 00:08:55.000 they have, they lend to everything, they do credit cards, 226 00:08:55.039 --> 00:08:57.279 they do auto loans, they do everything. So their risk 227 00:08:57.320 --> 00:09:00.919 advertise is just very, very small for any particular products. 228 00:09:01.000 --> 00:09:03.000 Whereas if you do a deal with a hard money 229 00:09:03.000 --> 00:09:06.200 guy that specializes in a certain thing, whether it's churches 230 00:09:06.279 --> 00:09:09.360 or gas stations or a multifamily or whatever, their risk 231 00:09:09.399 --> 00:09:13.279 advertising can be much larger than See how. 232 00:09:13.360 --> 00:09:15.399 That thought, don't go, don't go, just all that thought. 233 00:09:15.480 --> 00:09:18.080 This is Sidney Stumbo Toughest Nails on WBZ News Radio 234 00:09:18.120 --> 00:09:18.440 ten thirty. 235 00:09:18.480 --> 00:09:21.120 Would be right back, sponsored by Floor and Decorp, National 236 00:09:21.159 --> 00:09:22.399 Lumber and Village Back. 237 00:09:34.159 --> 00:09:43.039 Good and welcome back to Sidney Stumpo Toughest Nails on 238 00:09:43.159 --> 00:09:46.039 WBZ News Radio ten thirty. And we are here with. 239 00:09:46.360 --> 00:09:49.360 Lena Grello, Sean Kelly, Rand, Tyler Winder. 240 00:09:49.600 --> 00:09:52.639 Okay, now now that we all know who's here being 241 00:09:52.759 --> 00:09:57.000 you still there, absolutely, Cindy and Bing. We're bringing you 242 00:09:57.039 --> 00:09:57.720 in from where. 243 00:09:59.120 --> 00:09:59.960 I'm I'm an injury. 244 00:10:00.720 --> 00:10:05.559 No no, no, okay, but we're bringing you in from where. 245 00:10:06.519 --> 00:10:11.480 Oh I sorry. Chatter supposed to uh chattersppostal the io. 246 00:10:11.879 --> 00:10:14.279 It is a great application and we get to speak 247 00:10:14.320 --> 00:10:16.879 to real people in real time, like Cindy stumble Brand 248 00:10:16.919 --> 00:10:20.039 called on the many others uh chatters. Social the io 249 00:10:20.200 --> 00:10:24.000 allows you to just interact with people and have great conversations. 250 00:10:24.039 --> 00:10:27.480 Absolutely so his screen savings. See so these people are 251 00:10:27.639 --> 00:10:31.679 listening right now to you people right Well, we couldn't 252 00:10:31.679 --> 00:10:35.360 do that before. Was just radio, got it? Okay, So 253 00:10:35.759 --> 00:10:40.039 everybody downloads social audio? Was it again? Chat of social audio, 254 00:10:40.919 --> 00:10:43.120 and I'll send you invitations to get right in. Okay. 255 00:10:44.440 --> 00:10:46.600 And this way when you're we can have our own 256 00:10:46.679 --> 00:10:49.840 rooms doing things of this nature and teach other people 257 00:10:50.080 --> 00:10:53.039 instead of just coming into the studio radio. It's pretty 258 00:10:53.039 --> 00:10:58.360 pretty amazing. But on Twitter you never used that any 259 00:10:58.360 --> 00:11:01.559 of that. See Boston doesn't know about this, guys, they 260 00:11:01.559 --> 00:11:04.080 don't know Clubhouse. They don't know, Twitter, we don't have 261 00:11:04.200 --> 00:11:08.840 this plane flying around Massachusetts going joint clubhouse. Join Twitter audio. 262 00:11:08.919 --> 00:11:11.600 They don't know what. Everything's just the nightclub here, oh, 263 00:11:11.639 --> 00:11:14.480 new restaurant. No, no, no, they don't know what. It's crazy. 264 00:11:14.600 --> 00:11:18.039 It's such a on tap market up here. It's scary. Okay, 265 00:11:18.080 --> 00:11:21.320 where were we, Jonathan? You were talking, weren't you? 266 00:11:21.559 --> 00:11:22.039 Yeah? 267 00:11:22.279 --> 00:11:25.960 I was just saying that that these hard money lenders, 268 00:11:25.960 --> 00:11:30.360 private money lenders, they've become essential to the industry, you know. 269 00:11:30.440 --> 00:11:34.480 And and as the major players are the banks, the 270 00:11:34.519 --> 00:11:35.720 traditional banks are seeing this. 271 00:11:36.799 --> 00:11:38.440 They want a piece of it. They definitely want to 272 00:11:38.519 --> 00:11:39.000 end on it. 273 00:11:39.480 --> 00:11:41.559 But once again, without if it wasn't for them, and 274 00:11:41.600 --> 00:11:44.519 they're I guess their appetite for our risk. 275 00:11:45.200 --> 00:11:47.279 A lot of the projects that you guys are seeing 276 00:11:47.360 --> 00:11:47.960 happening won't. 277 00:11:47.960 --> 00:11:50.799 It wouldn't happen without private money lenders. 278 00:11:51.720 --> 00:11:54.399 It's crazy because I've never used one. Is that crazy? 279 00:11:54.399 --> 00:11:56.279 And thirty eight is well, I think the other side 280 00:11:56.279 --> 00:11:57.240 of it is because. 281 00:11:56.960 --> 00:11:59.960 Again my brain went to gangster that if you didn't 282 00:12:00.039 --> 00:12:02.639 hey it, your legs and i'ms are gonnat not my 283 00:12:02.720 --> 00:12:04.759 legs and i'ms are gonna get broken because that would 284 00:12:04.759 --> 00:12:07.559 never happen. But that's what I thought back in the day, right, 285 00:12:07.639 --> 00:12:08.960 like why are you going to those guys? 286 00:12:09.039 --> 00:12:11.039 No, to Seoun's point is it's just so much more 287 00:12:11.080 --> 00:12:13.559 sophisticated than it was. But it's it's not just you 288 00:12:13.919 --> 00:12:15.039 can't necessarily look at the. 289 00:12:14.960 --> 00:12:18.279 Hard Moe, not every guy, Nie and Marios. 290 00:12:17.799 --> 00:12:20.679 Oh exactly, thumb nurth end, We're all still there. But 291 00:12:22.120 --> 00:12:23.759 you can't necessarily just look at the hard money of 292 00:12:23.759 --> 00:12:26.279 the private lending just as a twelve percent interest in 293 00:12:26.360 --> 00:12:30.039 two points. It's the creativity with everything. It's the how 294 00:12:30.120 --> 00:12:32.679 quick can you close? And I would look at everything 295 00:12:32.720 --> 00:12:35.039 as a developer, as a as a strictly cash on 296 00:12:35.080 --> 00:12:38.159 cash ROI standpoint, if I'm bringing the say five or 297 00:12:38.240 --> 00:12:41.480 ten percent less to go buy a project, that's money 298 00:12:41.480 --> 00:12:44.039 I'm keeping in my pocket. My profit's going to go 299 00:12:44.080 --> 00:12:45.840 down at the end because I am paying an extra 300 00:12:46.399 --> 00:12:49.120 three points of interest in one point up front. But 301 00:12:49.240 --> 00:12:52.399 that extra four percent is not it's it's worth it 302 00:12:52.440 --> 00:12:54.159 every day of the week because I'm bringing ten percent 303 00:12:54.240 --> 00:12:56.600 less on cash. So look at the hard money the 304 00:12:56.600 --> 00:12:59.840 private lending is the creativity that you can get in 305 00:12:59.879 --> 00:13:02.000 a job to maximize what you're trying to do with 306 00:13:02.039 --> 00:13:02.600 your business. 307 00:13:02.919 --> 00:13:05.000 But I also say, I mean just talk about you know, 308 00:13:05.039 --> 00:13:07.639 guy League Tyler on it that is not out there 309 00:13:07.679 --> 00:13:10.879 going through MLS to buy a property. Right, he's finding something, 310 00:13:10.919 --> 00:13:13.240 he's calling around, He's calling me and going, hey, I 311 00:13:13.240 --> 00:13:15.000 got something that's out there. 312 00:13:15.159 --> 00:13:17.519 So most of your deals you're finding off market is 313 00:13:17.519 --> 00:13:18.000 that we're. 314 00:13:17.840 --> 00:13:20.600 Doing probably seventy percent, right, So you're. 315 00:13:20.279 --> 00:13:21.799 Still counting on procus to bring your deal. 316 00:13:22.440 --> 00:13:24.639 So sure, there's always going to be the broker relationships 317 00:13:24.679 --> 00:13:25.840 you are, you always going to have to have it. 318 00:13:26.440 --> 00:13:29.000 But he's not calling me up and saying, hey, I've 319 00:13:29.039 --> 00:13:31.559 got this thing. Look up this listing on MLS. It's 320 00:13:31.759 --> 00:13:33.399 listed for a million dollars. On buying it for a 321 00:13:33.399 --> 00:13:35.799 million dollars, he's coming to me going, hey, look at 322 00:13:35.799 --> 00:13:38.399 this one typically be sold for a million dollars. 323 00:13:38.720 --> 00:13:39.279 I've got it. 324 00:13:39.320 --> 00:13:41.360 I got to close in ten days though, because I 325 00:13:41.360 --> 00:13:44.559 got it under for seven fifty and so, but I 326 00:13:44.600 --> 00:13:46.679 can't get it for seven to fifty unless. 327 00:13:46.360 --> 00:13:49.600 I can close in ten days. And so what we're finding. 328 00:13:49.360 --> 00:13:51.720 You find that people give up two fifty to close 329 00:13:51.720 --> 00:13:53.120 a deal right away. Huh. 330 00:13:53.399 --> 00:13:57.360 Now it's there's a different settiment out that. 331 00:13:57.360 --> 00:13:58.440 Was definitely prior. 332 00:13:58.480 --> 00:14:00.799 And there's so much equity out there in these properties, 333 00:14:00.799 --> 00:14:02.840 so you're not really seeing that, are you seeing? 334 00:14:02.960 --> 00:14:04.600 Just because I think the end user's got a lot 335 00:14:04.600 --> 00:14:07.480 of a lot brighter in the last five six years. 336 00:14:07.279 --> 00:14:09.159 They have, And it's easy to get brighter when you're 337 00:14:09.159 --> 00:14:11.720 sitting on you know, a twelve percent increase of your 338 00:14:11.879 --> 00:14:14.080 your home's value over the last two years, like, oh, 339 00:14:14.120 --> 00:14:15.879 I have this much more cash in my pocket. I'm 340 00:14:15.879 --> 00:14:17.799 a little bit more sophisticated. Look at what my house 341 00:14:17.879 --> 00:14:20.799 value just did since I've been here. I mean, I mean, 342 00:14:20.799 --> 00:14:21.840 look away, someone, how. 343 00:14:21.759 --> 00:14:24.000 Of that is brokeers going in and blowing smoke up 344 00:14:24.000 --> 00:14:26.320 there behinds two. I'll pull you a million. I'll pull 345 00:14:26.360 --> 00:14:28.120 you a million. Two, I'll pull you a million. Three. 346 00:14:28.440 --> 00:14:30.360 Then they put the thought in the head and then 347 00:14:30.360 --> 00:14:33.000 the reality number start coming at nine, nine to twenty five, 348 00:14:33.039 --> 00:14:34.159 and then they have to swallow that. 349 00:14:34.360 --> 00:14:36.759 Not everybody, I mean a lot of it is. You know, 350 00:14:36.799 --> 00:14:40.919 somebody's buying something at auction. You've got thirty days to close, right, 351 00:14:41.080 --> 00:14:44.000 and a bank doesn't always meet that timeline. And so 352 00:14:44.039 --> 00:14:47.759 if you want to buy something at auction or sight unseen, 353 00:14:48.159 --> 00:14:50.440 you've got to get a private lender, right, Or if 354 00:14:50.440 --> 00:14:52.519 you're buying something and then you just look at it. 355 00:14:52.600 --> 00:14:55.279 Let's say you're buying a project of a developer that's 356 00:14:55.480 --> 00:14:58.600 halfway through. No bank wants to touch it. Halfway through. 357 00:14:58.720 --> 00:15:00.759 I might look at it and if I it's halfway through, 358 00:15:00.799 --> 00:15:02.120 and I know the problem. 359 00:15:02.000 --> 00:15:03.879 We know the story, right. I had to take over 360 00:15:03.919 --> 00:15:06.799 a job for a hard money guy in Rhode Island 361 00:15:06.879 --> 00:15:09.039 in Newton. He called me up. He said, then I 362 00:15:09.080 --> 00:15:11.759 need you, like, who are you? I mean you need me? 363 00:15:11.759 --> 00:15:14.000 Who are you? Told me? The problem, I said, buddy, 364 00:15:15.120 --> 00:15:18.519 touching touching that job is everything's coming down the studs. 365 00:15:18.960 --> 00:15:20.720 If I don't bring down to the studs, I'm not 366 00:15:20.759 --> 00:15:24.120 touching that job. Well, partyage, I don't care I partyage. 367 00:15:24.120 --> 00:15:27.799 You see, plumbing, electrical is done. I'm not touching that job. 368 00:15:27.879 --> 00:15:29.799 My name goes on it. So if you want me 369 00:15:29.840 --> 00:15:32.759 to bail you out, I'll bail you out. Here's what 370 00:15:32.799 --> 00:15:35.200 I didn't understand. Now Samantha ends up making him money. 371 00:15:35.399 --> 00:15:38.000 He made money off it. What I didn't understand, Maybe 372 00:15:38.000 --> 00:15:40.080 you can explain to me. I said to him, just 373 00:15:40.120 --> 00:15:42.879 bring it up to auction and sold as is, and 374 00:15:42.919 --> 00:15:45.360 there'll be some follow that comes along that's a handing 375 00:15:45.399 --> 00:15:48.039 man type guy and will buy it for you know, 376 00:15:48.120 --> 00:15:50.360 help his kids fix it and get in to the 377 00:15:50.360 --> 00:15:52.759 finish line. He said, we can't take the hit on 378 00:15:52.759 --> 00:15:54.759 the books right now. What do you mean by that? 379 00:15:54.879 --> 00:15:57.039 I can't take the hit all my books right now. 380 00:15:57.480 --> 00:16:00.000 Was he because had money, guy out of Rhode Island 381 00:16:00.759 --> 00:16:02.480 and a good sized company by the way. 382 00:16:03.039 --> 00:16:03.919 Yeah, they're probably. 383 00:16:03.919 --> 00:16:06.840 I mean the issue is is if they auction it off, 384 00:16:06.879 --> 00:16:08.320 they may have been upside down right. 385 00:16:08.360 --> 00:16:10.559 I think that was the set for a batim. I 386 00:16:10.679 --> 00:16:13.159 can't take a hit on my books right now. I said, dude, 387 00:16:13.200 --> 00:16:14.399 I don't think you're going to take a hit on 388 00:16:14.480 --> 00:16:16.799 your books. I think you'll get out clean and you'll 389 00:16:16.799 --> 00:16:20.080 make yourself a few hundred thousand covering all your expenses. 390 00:16:20.120 --> 00:16:22.960 The guy hadn't paid interest in the year, blah blah blah, 391 00:16:23.080 --> 00:16:24.919 even though I do. It had to go pour a 392 00:16:24.960 --> 00:16:28.320 new foundation, take out the old slab. The guy had 393 00:16:28.360 --> 00:16:31.600 no stone on the slab. The thing was thinking it 394 00:16:31.720 --> 00:16:34.679 was a nightmare. But we made it all perfect for 395 00:16:34.799 --> 00:16:37.559 him and he's still made money. But the remark was, 396 00:16:38.519 --> 00:16:40.759 I can't take a hit on my books right now. 397 00:16:41.240 --> 00:16:44.159 What did that mean? I didn't ask him. I didn't. 398 00:16:44.200 --> 00:16:45.399 I mean, I think of what he's saying is he's 399 00:16:45.399 --> 00:16:46.360 just going to take a loss. 400 00:16:46.559 --> 00:16:49.039 Okay, I get that, But why I couldn't You couldn't 401 00:16:49.039 --> 00:16:51.159