Ep #3 Real Estate Investment Tips from a Direct Lender

Introduction
Announcement
00:13
Ready to get the inside scoop on equity funding? Tune in to TDJ Equity Funding Insiders podcast for an in-depth look at what it takes to access financial capital and maximize your investments here from experienced professionals, including bankers, underwriters, loan officers and industry experts, as they share their unfiltered stories and valuable lessons on securing funds. 

Jacquelyn Jackson
Host
00:47
TDJ Equity Funding Insiders podcast. Welcome to our podcast today, and I am Jacqueline Jackson, your host. Today we are going to be talking about real estate investing funding. So we are looking at those that want to purchase or get into real estate investing. You want to purchase houses, or you want to rehab, or you want to get some as cash flows. Either way, you will like to have some money or at least know how to go about that money. So today, co-hosts, we have a special guest, which is Chris Cardenas, and he is a loan officer from Connecticut that works with private lending, a direct lender that can help us. So let's dive in to the wisdom and knowledge that Chris has for us today. Welcome, chris, to our show. 

Chris Cardenas
Co-host
01:32
Hi Jackie, how are you doing? Thanks for having me today. 

Jacquelyn Jackson
Host
01:34
Okay, can you start off and let us know a little bit about your experience with your industry and what you guys actually do? 

Chris Cardenas
Co-host
01:44
Yeah, so as a private money lender, we specialize in funding real estate transactions, one of them for units, fix and flip, or more commonly known as short term, and also for the long term products for stabilized properties that are turnkey ready and are ready to be rented. So that's our bread and butter, those two right there. We also do dive into some ground up, also some multi units along with the short term, but our bread and butter, as you can tell from maybe the rest of the market, one of fours, are kind of what a lot of people love getting into. 

Jacquelyn Jackson
Host
02:28
Which is a great point that we need to make sure that our listeners are aware that when you do commercial real estate, which is buildings, strip malls and those types are different from real estate investing from just the single family home or the duplex or the fourplex or whatever. That's something that they have to notice different. So that's what we're talking about today. So, please understand, what we talk on is mainly dealing with that. So, with that in mind, what I want to ask start off with some questions that some of our listeners and clients have asked us to ask you, and one of them was being that what is the most important factor for borrows when considering funding options? What do you think is the most important factor they need to consider, and why? 

Chris Cardenas
Co-host
03:13
That's a good question and I think it's probably one of the most important questions because when we look at the type of funding that they're getting on the short term versus the long term, right. So let's say, on a fix and flip we're going to look at loan to values, are you getting a really high leverage up front? Right? The good side about that is when you get high leverages up front, you don't have to bring that much of a down payment, right. And then on top of that you also have a little more cash in your pocket. You know. When you're looking at rehab and the property, right. And then when you move into the long term, it's kind of the same scenario looking at getting the higher leverages but the rate there is going to be really something important when it comes to finalizing the deal structures between those two, right. 

04:09
So for short term, the leverages, you know what's the highest you can get right. Kind of not that. To me, rates are rates. On short term, you're paying interest only on most of those terms. On the long term, the rate is important because you're locking in at a 30 year escrow mortgage just most private money lenders escrow, you know. So your rate there and your interest is going to be important on choosing, so depending on the product, I think, more than anything, you know choosing wisely and doing your homework between lenders, because there's 15 lenders, 30 lenders. You got to really choose which one fits your budget better, right. 

Jacquelyn Jackson
Host
04:54
Okay, exactly, and I can understand that that's happening. So when we talk about the fix and flip which, you're discussing that and then we're going to talk about the long term. So in fix and flip, you said something about the leverage. If your leverage is better, then you can get some better numbers. So what do you mean when you say that, when they need to have their leverage and that property better, what are they looking at? What are you looking at? 

Chris Cardenas
Co-host
05:15
So what I'm looking at right is, let's say, for a new investor, right. Let's say you have different lenders that are willing to take on you. Investors said, with whatever guidelines, they have to give you funding right. So for us, if you bring in your investor, the terms are going to be between 70 to 80%. So you're either bringing around 20% up to 30% down payment. Right. Let's say you find a lender that says you know what? I'll give you a lending for 15%, but your rates are going to be 15%, right. So you really got to look at the pros and cons of the options that you're being given To me. For the new investors, they should be looking at 25%. You're new in the game, you got to get some skin in the game as well, and your exit strategy whether it's to refire or sell, it's going to be a little more secure because you put down 25%, so that equity is there and when you go cash out you're going to have that available. 

Jacquelyn Jackson
Host
06:22
And see, I think that's a good point because, as loanbrokers and you know too as well, we've had these discussions. We would have someone come and they say, well, hey, you're, you're, linda, you're only can give me why I have to put 30% down. But I got a guy to sell. I got to do is put 10%, but then, like you said, when we looked at that interest rate, his interest rate was actually about four or five points higher Than what was offered. 

06:42
For probably you guys are who we had, so we understand how important it is and I think, as new investors, or even investors that's just bidding it for a minute they really need to look at everything. Like you said to all the leverage. So you got to look at the long to value they will to give you. You got to look at the interest rate and something you said also we'll go into, when you talk about long term, how important the interest rate is. Like I have to tell people Temporarily if you do it a long term, a short term, it's gonna be higher than if you do a rental long term for its interest rate. So that's the thing with that. So definitely explain to us when it go to a long term. What do we need to look at when we are doing a long term? Let's go detail in that. 

Chris Cardenas
Co-host
07:22
Yeah. So what's the properties ready for? It's you know, most important Face, which is cash flowing. Looking at the rates, looking at where you're looking at where your portfolio of properties is, that is gonna be important because a lot of times, the Season investors, the ones that have been in the game 10, 15 years, that have 10, 15 properties, they don't really care about rates. Right, they really don't. Why? Because they have 15 cash flowing properties. So if they miss out on one that they're buying you and they're paying like 80 bucks extra in interest, it's nothing to them, right? A lot of these real estate season investors, they know what it is. 

08:10
But for a new investor that's starting out, you're trying to start your portfolio, you're starting out, let's say, with a property that's worth a hundred grand. Right, a 7% rate, a six and a half percent rate, that could be $80 difference. You can say what's 80 bucks? Sure, what's 80 buck different is basically, after 12 months, that's about nine hundred sixty dollars, if my math is correct. And let's say your payment is $800. That's all payment, right there. And as you're trying to build up, right, because eventually You're gonna want to build more properties, you're gonna want to get more. So eventually, the numbers when you're starting, really do add up it. 

08:50
I sometimes take, take the analogy and tell people hey, look, when you go to a gas pump and you see 350, right, but then you go down the street and you're getting 310, right, if you put in, you know, a full tank, 15, 15 gallons. You know you do the math, it adds up. You know it could be a whole gallon less or it could be a whole gallon more. So Determining the starting phase for the new investors is important and in my opinion I know a lot of people are gonna say, hey, rates don't matter to me getting a good Stabilized rate when you're starting out is important because once you, once you get going, once you have five properties, six properties yeah, don't worry about the rate I got. I got five, five good properties with decent rates, cash flowing, so everything just kind of adds up you. 

Jacquelyn Jackson
Host
09:42
Right, exactly, and I agree with that from a loan broker, and we also tell him too as well. Chris and we've talked about it is that you, like you said when you mentioned budget, let's say that's part of leverage too. You can't take advice from everybody. Like you said, season, people have a different agenda of what they're looking for and you know, a lot of times you get the one start now and they like well, I want to be. You know, it doesn't matter to me as much, but it does. 

10:04
If this is your only house you have and the first one you were doing, you have to understand if something happened and that construction site go a little longer, you're going to be paying longer for that, and that's what. Where he already has some money somewhere reserved where he can deal with that. So we have to be careful of who we get advice for him. That's why we have this podcast, so people can understand. You're talking to the direct lenders. There's nobody talking out there, trunk sitting on the corner. You're talking to a lender that deals with that every day and you know what you're looking at. Now, when we talked about budget, talk to them about budget. How do they figure out what budget works for them. That's something they need to understand how that works. 

Chris Cardenas
Co-host
10:42
Now budget wise for like buying for flips. Which kind of budget do you want me to elaborate on? 

Jacquelyn Jackson
Host
10:47
Let's go with budget wise as far as investing and putting down, cause, as you know, so many people here that I can get this properly with no money down. How many times we've heard that? So my thing would be, you know, I'm like, wow, it's on. And don't get me wrong, I'm not saying people are not doing it, but for the massive of us that's doing real estate investing, you're going to have to come with something down to have it. So I guess what I'm saying is more like the budget. If you say 20,000, let's say a thousand dollars, a $100,000 for a house, and if you're saying you're required, jackie, to put 30,000 down or 30%, if I don't have 30,000 in the bank, you know, plus closing, then I don't have a budget for that $100,000 house. So how do that's what we're saying. So we say budget has important to realize and what do you think that's rated on is for what down payment they have to do. What are you all looking at to determine how much they have to put down? 

Chris Cardenas
Co-host
11:44
So right now, our guidelines are more focused on credit, right? So back when, in the height of COVID, rates were so cheap I mean rates were so low that you know we were lending at like 660 credit people were getting like a 4.5%, but the floor rate was 3.49, right, 3.75. But now, when I'm looking at how we do think we focus more on credit, right, and a lot of people sometimes say why are you guys looking at my credit? Well, we have to, because when you don't have a tenant in there, the person who has to pay the property is you. That's right. Not like the property is just going to send us a check or something, right, so we have to look at how you pay your dues, you know. 

12:36
So, when I look at individuals or when I get scenarios and we obviously have our size or our estimate, that tells us okay, this is a $100,000 house, they got to bring $35,000, right, as a loan officer, when the size tells me $35,000, that's the minimum, I want to see at least a 15% cushion there, right. So, like for your example, right, a hundred grand, right, you got to bring a down payment, somebody doesn't. You know they want to bring 30%, but they don't have it, you know. So it just kind of depends on the scenario, but I always want to see a little cushion above the minimum right Because, worst case scenario, a pipe breaks, worst case scenario, something happens. 

13:22
Worst case scenario, you know, after we close there's a big leak with the sewer or something, and that's $30,000 and you got to get it fixed, and you know. So where's the cushion? You have to be ready and prepared for any even properties that are stabilized that you, that individuals buy, they hey, they've been renovated, great, cool. But something can always go wrong, and I always tell people you got to prepare for the worst more often than the good right. 

Jacquelyn Jackson
Host
13:52
Right. 

Chris Cardenas
Co-host
13:53
Because when you only just prepare for the good and then, by the boom, my pipes froze, that's $20,000. I only have 10, and my 10 upstairs is you know, he's out of water Like it can be a situation that can put you. I wouldn't say in like a tricky, but it's like, okay, I'm tight on cash flow because I didn't have the money to begin with but they gave me the deal right. Instead of I got the deal, I had the money, but I had extra money as well. It can all be like so many different scenarios, so many different situations. But as a loan officer, that's what I look for. I look for the extra cushion. Are you prepared for anything? 

Jacquelyn Jackson
Host
14:32
Exactly, and most of them the lender is a loan broker. They look for that and that's something you all always say to us, because you want to see if they got that reserve. That's basically what you're looking for in real estate investing. So a lot of people, like I said again, we talk about the insights because you and I both deal with it, but the people that come to us, or definitely to come to me, is that they're not understanding yeah, just 30% down and then you got closing costs. They would like to see you know, about three months, six months of you actually haven't been able to make the note. You know those are things. 

15:03
So if you're getting in it, you have other people to tell different stories that, oh, I didn't pay that, I didn't do this, I didn't do that and, be honest, you don't know what they did until you actually see the settlement statement to see what was all done. So what we have to do is basically just take for you know, to understand with this and with your talking on that you got to have part of your budget is not just your down payment but incidentals, and also what you need to have is that reserve, because anything can happen that you did not know about if you get in this real estate game and getting funding, so that I definitely agree. So that's definitely a good answer for us. So let's go on to some more that we'd like to ask you about, which is, when it comes to funding opportunities that you've seen, what has been especially successful for boroughs in real estate. What type of funding short term deferred, I mean what do you think that's really been successful for them? That you saw as pretty good? 

Chris Cardenas
Co-host
15:59
I well, I've got a mix of investors that had some focus on just short term right by a property stabilize it, sell it. I've also got a good mix that they don't want to deal with fixing property. They just want to buy a property that's stabilized, that's got rehab, they want to get a tenant. That's all they want. But more than anything, I feel like the best approach right now would be short term right, because as you give funding for it, it also gives you the experience to manage a project, to manage the property and, in my opinion, when you're able to do the rehab portion right after funding, you get it all through. Basically, you're ready to manage that property with a tenant. Right, because basically you already got the hardest part done. Now it's just like okay, now I just got. I got to get a good tenant in there. You got to do your due diligence, you got to run credit background, you know collect security deposits. 

17:03
So short term to me is the way to go right, because you know the ins and out of the property. You were there for the, for the, for the project from. Hey, I know exactly when these pipes were changed. Do not tell me there's a problem because I was there. Do not tell me something's wrong with the roof, because we changed the roof three months ago, right? So funding short term to me is the best way to not only get your foot in the game but also get that management experience. I think the most important thing that comes with that is relationship building, and it starts with getting funding. 

Jacquelyn Jackson
Host
17:46
With that lender. 

Chris Cardenas
Co-host
17:47
Having a, having a good relation, not also, let's say, with a lender, but then after that you need a GC. Are you going to do the work yourself? Are you licensed for electrical work? Are you licensed for this? Do you know how to pull permits? So now it's like relationship building on an overall basis to get this project done right. And the short term funding gets you started, which is kind of ironic because a lot of people just think it's rehab. It's like, oh yeah, I'm going to put 30,000 in and you know I'm going to make a killing. I'm going to make 30 grand when I sell it. Okay, cool. But you don't see the overall aspect of what you're doing, what you're managing. And it all starts with getting short term funding for a property Right to start off and, like you said, it takes that team. 

Jacquelyn Jackson
Host
18:38
You have to develop the proper team. You know, like you said, lenders and contractors and those types and subs to work with you electricians and plumbers so we have to have that team kind of build up, you know, to work with us when we go on into that, because it is a business deal and you have the funds that are available. But you also want to make sure you complete that project. How many projects have you had and we know of that have started but didn't finish? You see what I'm saying. 

Chris Cardenas
Co-host
19:07
So it happens so far yeah, so far I've closed since I started. Just a little background. I was, I've been nine years in the financial sector, but for the first six years I was in wealth management and then I moved over to real estate. So since I've started about three years ago I've done about 175 transactions and so far zero. Oh, that's good, they've all finished. They've all finished. 

19:35
If somebody was late on the payment I got on them. I'm like hey man, I need you to make this payment right away. Hey, what happened? Listen to that. You're short on money, you know. All right, let me. Let me talk to my service and department. But more than anything, when I get involved post closing, most loan officers here or I would say overall, like once, once the deal closes, it goes into servicing. But to me it's like okay, I originated that loan, I want to make sure that the status of it and kind of, and I also want to make sure that everything is going well. So sometimes I'll do calls I know there's a little rambling, I'll do cover hey man, how's rehab going? And then they'll tell me I'm a little behind. I'll tell you one of my projects or one of the loans I originated down in Tampa Last year I originated, april. 

20:23
Good deal it was almost it was $496,000. It was a single family with an ADU and it's about three miles away from the beach. My bar was gonna make a killing on it. The numbers came back good, but what happened? Two tornadoes, two tornadoes, two hurricanes came by. I forgot the name of them. So many hurricanes go to Florida I can't keep track. Permits the city pulling permits. It was a disaster. 

20:53
After that she went to like three GCs because she's a New York real estate investor that says, okay, I don't want to be in New York, I don't want the cold anymore, so I'm gonna go down to Florida and this is the property I'm gonna start with, so she doesn't have to. Her team from New York is not the same team down in Tampa. So it's about those relationships, is about managing the project and more than anything I want to. I want to make sure that things are moving fairly and if I'm able to get involved with servicing and be like hey man, let's, let's push for this extension, I don't want this loan going into default. Right, as a loan officer, they do keep track of us here. 

21:33
And what loans going to default? Obviously, sometimes we can't keep, we can't control everything, right. Sometimes individuals don't have the funds or don't have the capacity, or they gave up or they sold the property's asses, and I can do about that right. But to the point of the extra liquidity, most of I would say 85% of my loans, if the estimate tells me, bring me 50, I have a borrower that's bringing 6570 to liquidity, so that always helps in the long run, right. 

22:10
Right and when I see, when I see my deals, and a good percentage of them are in good terms, that that makes me comfortable. Because my borrowers Not all of them, I would say, listen to me, but maybe some take a little bit of detail when I talk to them, right? 

22:27
a lot of times the more seasoned investors In one ear out the other, you know, kind of the newer ones, they kind of. You know, listen to me a little more. But I take pride in making sure that my deals Making to the finish line. And I've had some deals where customers halfway hey, I can't, I couldn't finish, I sold the property. Okay, you didn't go into default. That's all I want to hear. You know. Loans paid off, we're good. 

Jacquelyn Jackson
Host
22:55
So basically, like I said, like any business, you have your pros and cons. It is just basically the best if you are just prepared for most and, like you, we work on that relationship too. So we've actually hear a lot of stories of what people go to because we deal with contractors directly, a lot you know, and and we hear the stories of how jobs are folding and what's happened just because, like you said, one you didn't look at your budget. You take, you didn't take in consideration of what could go on. So that's something that all investors need to be sure that they pay attention to that part and make sure that they do that as well. So I think that's something that's really good that you talked about and I appreciate you bringing that forth. So what I want to ask you also I know we've mentioned it some of the times when we talked about some top funding tips that you've given and you mentioned Getting with other investors in your market. So tell me about why that's a good tip and why you think people should do that. 

Chris Cardenas
Co-host
23:50
I I said that before because I'm a strong believer that you got a. You got a pick at every, at the, at the more seasoned investors brain, right? So if you're starting out, you want to see what the season investor or what the individual or what the Next in the, the individual next to you, is doing, right. So let's say, down in Dallas, you're starting out, you're like okay, how do I start, what do I do? You know they got conventions, they got conferences. But once you build relationships and you're able to see what others are doing in your market, you can make your own plan. And when I say make your own plan, you're not gonna just try to copy a through z from one investor. No, you want to take a from them, you want to take b from them, you want to match it to where you're comfortable Delegating what you want to do, right. So whether it's flipping, whether it's buying real real estate land, whether it's buying long-term hold, what do you want to do? What are you comfortable doing? And you have to take a look at the market around you and see how things are doing. You know, am I in in? You know I, sometimes I'll get scenarios from a new investors. Hey, I want to do this. I want a 300 grand project. I'm like, take it easy, how about we tone it down? Give me something around 150. What kind of budget are you looking at? Do you have this? Do you have that? Are you in a renters market? 

25:24
A lot of people don't, don't, don't, don't know that some cities are more renters markets than others. So when I say this, I I mean okay, when you flip and you sell and an investor comes, there's a high probability that they're gonna get that place rented it faster when it's in a renters city, right. So like, for example, I'm here in Connecticut, hartford, connecticut, this is not a big renters area. But when you go down to the metro areas Boston, New York, philly, we got up here, we got Pittsburgh, portland, maine, all these cities they're more renters market. So people are able to, let's say, they lose a tenant, they might, they might only wait three weeks, four weeks, before getting a new one in, right, right. 

26:13
So you have to see, kind of, what the market is, what you're doing, what you want to get into short term, long term, you know, do you want to just wholesale? Do you want to buy vacant land and see if somebody wants to buy it from you because they want to do ground up. Make a plan for you where you're comfortable and where you feel that you're yourself and that you're not trying to just copy a through Z from this very successful investor. I always I see stories online, I see stories Anywhere that say, hey man, you know I did this and I'm making a million bucks. Great work for you. It's not gonna work for everybody, so you got to be comfortable in your own, in your own plan, doing what you do, and Look around your market. See what you're doing, see what, see what's gonna work for for you, see what didn't work for them. 

27:06
Right a big detail to take from investors is what didn't work out for them right. Did they lose on a property? What happened? What weren't? Weren't they prepared for? What was their solution to it? Because a lot of times, a lot of people, they'll tell you your success story. They'll tell you their success stories, right? I want to hear when you messed up. I want to hear when things went bad right. 

27:35
I want to hear under that how you Got out of that, because, hey, if you like Kobe Bryant, if, if, if he got, you know, if he went up for a layup but he didn't make it, he was coming right back down again to and dunk on you. So it's what went bad. How'd you fix? And you know, kind of moving on from that situation. Right, I think the best scenarios or the best investors learned the hard way, so it's good to pick their brain. So, oh, you did this and it didn't work. Let me stay away from that you know. 

Jacquelyn Jackson
Host
28:13
Exactly, and that's just take that time and just meeting them. I tell our investors to you know, network is what you want to do. Also, when it comes to experience something I've noticed as well and you know it too if you want to get into new construction and you've never had a new construction deal which means your name on the LLC that's on the settlement paper, not the fact that you actually did the work, but you're actually a partner in that that experience is needed. That's why I tell them, you know, get with other contractors or get with other people that have already done that, and be a part of their team. To start off, it may be a little bit A minority partner. 

28:50
Right, exactly, and that's a great way to start to get in. So that is really good. On those relationships, that if you don't have the experience like you said, get with some investors that have it, and a lot of investors don't mind working with you to get started on something, especially, like you said, being a minority, you know, and then I help you where you can put that down as your experience. So it's a way to do it. Yeah, but we want to get out and see what's out there and get into that networking and learning from people, learning from your lenders. 

29:20
You know so much with Google and I think you and I had talked about that Google and we talked about YouTube, or was that one of my other lenders? We talked about that YouTube. If you're a visual person, he said go to YouTube, but you can visual, you can see the visual part of how to do things. If you are a person that likes to read, go to Google and they can send you to all kind of topics and stuff. So to help us out there for you. But you also have lenders and brokers like you and I that can actually guide you for your Pacific deal that you have. So, with that saying is there anything else you think that investors, even starting out, need to be aware of? That's going on now. 

Chris Cardenas
Co-host
30:00
So we're seeing a big trend of lenders that close shop and new lenders coming in offering certain types of products that look or hear or, on paper, look amazing. So I was doing two refis that got originated last year. They were down in, I think, tampa or Jacksonville, for I can't remember, but it was in Florida and I was reading through their payoff and it was a product, a short term product, deferred interest, so a lot of, obviously, if you don't, if the folks don't know what. The third is this meaning you're not paying interest. It's getting accrued and you're going to pay it at your exit, whether you're refining or you're selling the property. 

Jacquelyn Jackson
Host
30:47
Basically like a balloon payment, something like. 

Chris Cardenas
Co-host
30:51
Yeah, essentially I mean all short term deals are balloon payments. But the fact that you have a monthly interest payment is a lot different than having it deferred at your exit, right? So I was doing these two refis and I look at the payoffs and I just tell the bar I'm like hey, who told you this was a good product? Who? 

Introduction
Announcement
31:16
sold you this. 

Chris Cardenas
Co-host
31:17
Why didn't they explain it to you? And he was like, hey, man, the guy you know sold it. He said you're not going to have a payment until I sell or I refile. I was like, okay, did he mention the deferred interest? Because every loan product is going to have an interest portion, right, whether you pay a fraud, whether you pay a monthly whether you pay at the end lenders are all. 

31:40
That's how lenders make their money on short term mortgages and the values didn't come in for the properties. Their payoffs were extremely high. I think one of them was like 30,000 deferred interest, the other one was like 18, so that I think it was close to 50 for both of them and I said look, your appraisal values didn't come in where they should. You're going to have to come to money at closing. You should sell these properties. I'm sure there's a big investor that'll buy it from you. I think it was Jacksonville, florida. Big renters, big investors down there. They'll pick that up. Don't ever get into a product like that. So my suggestion on funding is do your due diligence, do your homework. Don't just go into any loan product. It can cost you money Right, and when it costs you money, when you're starting off, I'm emphasizing a lot of new investors because I see so many new young investors. I mean, I'm 30. I think I'm a little seasoned myself and they're so excited to get into the game. But when it's time to dribble the basketball and go through drills, they see how hard it is. A lot of people leave. A lot of people leave. I had a few buddies. They wanted to be realtors. 

33:03
During the peak of COVID, everybody was selling. They were selling houses left and right over here, like you know, like it was a McDonald's cheeseburger, everybody could sell. The market went down, rates went up. Houses are on the market for more than 30 days now. A lot of people got out the game. Exactly it just happened. So for these, so for new individuals, even don't get into just any product. Read what you're going into. Make sure you understand, make sure you ask questions, like when somebody comes to me they're like Chris, what is this? I might be annoyed if I have to answer it more than two, three times, but I will make sure they know this is what you're getting into Exactly. 

33:51
There's no, there's no terms and feet. There's no, I'm not hiding anything, we're not doing anything. Fitchy, over here I did a, a Refi cash out deal on a on my borrower down in Pennsylvania and he and I did an estimate for him. I'm like look, these are going to be your estimated cash proceeds. This is what I estimate. But obviously I'm not estimating title, I'm not estimating taxes, so just be aware it might be less. Yeah, it was like $6,000 us, because I guess Pennsylvania is just tax tax county they they tax a lot. So his cash proceeds went from what I estimated 116 to 109, but I let him know this might be different. 

34:30
This is just an estimate and I'm always up front with everybody on the products that they want to buy from us and at the end of the day, when I see individuals excited about getting higher leverages or about this or about that, I just want to make sure they understand what they're getting themselves into. You know, because it's important to me that your first project or whatever you get into in the real estate, is successful. You know, a successful project, whether it be a fail flip, whether it be a long term, whether it be wholesaling, whether it be buy a mix use. I always want to see success because that gives you the experience and that keeps you in the game. You know, a lot of people just give up. I hate seeing people give up, you know I. 

35:23
I remember I did this flip when I started out about 2 and a half years ago and the individual did the flip got paid. They're like you know, I didn't like it, I had some issues with it, I'm out. But I was like you know, why don't you look for people? Why don't you ask for help? He just tried to do everything by himself and it was. You know. Hey, I mean, he sold the property, didn't go into default. But always ask, you know, ask questions, you know, from anywhere, from your lender, your broker. Don't get into just any products. 

35:58
Right, that's to me a lot more serious Questions when they're not, when they're not sure about anything. 

Jacquelyn Jackson
Host
36:04
Right, and that's what it is. Well, I tell you we're going to wrap this up because definitely you're brought some insight to us about the real estate invest in lending. We do appreciate you on what you gave to us today. We look forward to you hopefully coming back sometime later to be a part of our podcast. So we want to thank them, and also to our listeners. We want to thank you guys for tuning in. We ask that you stay tuned with us for all our sessions and sign up for it, subscribe to it and you all. Thanks again, and you all have a nice day and take care. 

Introduction
Announcement
36:36
We hope you enjoyed this episode of TDJ equity funding insiders podcast. If you'd like to be a guest or get in touch with us, please visit our website at TDJ equity LLCnet forward slash podcast or email us at podcast at TDJ equity funding insidersnet. Until next time, take care.