The Private Lender Podcast

PLP – 139 Know The History Of Your Property With Title Insurance With Rachel Luna

When you buy a property, you want to be sure that it's free of any debt and lien. This is where title insurance comes in. You don't want to wake up one day, and your pool is torn down because it was built over a utility easement. Or the heir of the seller comes in and reclaims what is theirs. Title companies prevent these things from happening. Join your host, Keith Baker, and his guest, Rachel Luna, on the importance of title insurance. Rachel is the Agency Development Manager of Patriot Title. As The Texas Title Queen, she drops a ton of knowledge and discusses the parts of a title policy, what is covered, what is not covered, and why you need title insurance when you purchase a property. Learn the schedules of a title property and why title insurance is a must. If you're a lender, you better listen to this episode.---Know The History Of Your Property With Title Insurance With Rachel LunaThe Texas Title Queen Breaks It Down For Lender NationI would like to thank you for sharing your time with me. If you're looking for practical tips and advice on how to put the power of the banking system into your investment accounts, then you are in the right place. If you want to learn from my mistakes so that you can both avoid them and profit from them, then pull up a chair and pour yourself a drink, my friend, and take some notes because this show is for you. I'm dedicated to giving people, like you and me, the knowledge and confidence for successful and profitable private lending.In this episode, I sit down and talk with the Texas title queen, Rachel Luna from Patriot Title Company, who has graciously agreed to come on this episode and drop a ton of knowledge around the topic of title insurance, what it covers, what is not covered and where to find things in the policy. Before we get to the heart of this episode, first, a little bit of housekeeping, number one, I'm about to lose my voice. The kids had a soccer tournament. They won the first two games and lost in the third. However, it was exciting. It was a blood pressure event. It was a good tournament. I’m proud of the kids but I shot my voice. I threw it out. Rather than waiting, I figured, “I'm going to make everybody suffer with me.” That's the first bit of housekeeping.The second bit of housekeeping is, have you joined the Private Lender Podcast Facebook group? If you haven't, why the hell not? Simply search in Facebook Groups for Private Lender Podcast, click on Join. Answer a few questions to let me know that you are a private lender and not looking for deals or looking for money and not looking to boost up your groups, but going to help add value to the community. Answer those questions, I'll let you in and then let you get started. While you're at it, head on over to PrivateLenderAcademy.com and click on Apply Now to learn more about putting the power of the banking system into your investment accounts or get some one-on-one time with me, I can answer your questions and show you my mistakes. That's PrivateLenderAcademy.com/apply.The housekeeping is finished and now it's time to get to the heart of this episode. Our guest has been providing title insurance and escrow services for Houston area investors for about as long as I can remember. I caught up with Rachel Luna at the FlipCo Financial Meetup and was excited that she agreed to come on and talk about title insurance. For the simple reason, everyone, including me that says that you must have it, but very few people understand why you need it. I'm going to let Rachel answer that for you. I think you're going to enjoy this. She is dynamite. She is Miss Personality. She has a pistol, a load of fun, is very energetic, knowledgeable and smart. I'm going to let her get down to the brass tacks of this episode and let's get to the interview with Rachel Luna from Patriot Title.---Lender Nation, I want you to buckle up because we're going to have a fun conversation about a boring topic. Our guest is coming and is going to bring all the enthusiasm and the excitement into something that nobody or very few lenders even think about and that is title insurance, exceptions, exclusions and endorsements. Welcome to the show.Rachel Luna here from Patriot Title. It's going to be an amazing show with some amazing information with some boring topics.I can't thank you enough. You are the perfect person to come on and talk about this because you're going to bring life to it. You already have just started with this. Let's talk about you for a moment before we get into the doldrums and the coffee stuff. Tell us about you. How did you become the Rachel Luna?[bctt tweet="Title insurance is there to protect you from legalities that will forbid you from your goal." username=""]The Texas Title Queen, as they call me or The Title Queen. I started this business many years ago. I was passionate about it and being able to help people grow their business in real estate and help along the way people accomplished one of the biggest dreams and purchases of their life. If it's not investing, it's purchasing their home for the first time or transacting a sale. Being able to be the end part of that transaction at the title company, helping people protect their investments, but also be a part of their investment.I believe that as a title company and what we do is it's a very important piece of the whole puzzle. I love that being that piece and I love how every transaction is different. Every single day is different. Every client is different. This business has been nothing but learning and that's why I'm here. They call me the queen because I’ve self-educated, learned, evolved with this business and come out with solutions that can help all parties and all professionals in the real estate business in general, to help grow in their knowledge in real estate, but their knowledge and title and why it's so important. That's why we're here.We only met in person after the COVID thing, but I have seen you around in the Houston area for years helping investors and homeowners. In fact, Rachel has a new branch, so they're expanding. Is business good?Business is good. I'm expanding in Woodlands. This is going to be our Woodlands location. We're off of Sawdust over here and 45. We're in a conference and there's not much going on in here because we're setting up IT and getting phones implemented. We have a new conference room. We're getting this set up. There are computers over here on the floor. We're setting up stuff. It's a new shop, but it's all a process. I'm excited. I love opening up a new location to service and expand for our customers out there who need us in other areas of town.Congratulations. That's good news to hear. Let's start off with what is title insurance? I demand it as a lender. I always demand a lender policy. Explain why am I crazy?[caption id="attachment_3198" align="aligncenter" width="600"] Title Insurance: Title insurance exists to protect your investment. If you're someone purchasing a property, you want to know what is on that property. It protects you from many other different variables.[/caption] No, you're not crazy. You're being a smart man. I advise all to do the same. Title is protecting your investment. We do our due diligence from the sovereignty of a property. If you're a lender and giving money out to someone or if you're someone purchasing a property, you want to know what is on that property. Just because you see the person who signed the contract is the person that's registered in the CAD or the tax records and their name is on that. Let's use Harris County, Montgomery County, or Tarrant, it says, “XYZ person.” They're on the tax roll there and they're on the CAD and they signed the contract, it doesn't mean they're the only person that's entitled to that property or there are not any other issues.What it does is protect the consumer, the lender and all parties of the transaction because you don't know what exactly is going on with an individual, their personal finances or if they're filing for bankruptcy. There are so many variables I can go on and on why you need title insurance to protect yourself. Your money or investment or purchase could be in legality that will forbid you or not allow you going forward to sell the property, do a refinance cash out on that property because there might be some other encumbrances that prevent that in title that was not caught because there was no insurance and due diligence done prior to.It protects you because there are so many variables. In Texas, especially because it's a community property state as well. That's another wrench in there but there are so many variables of why a property can get. It could be an insurable, number one, but it could also be a bad investment when you thought it was a good investment. That's preventing bad investments. Why do you get titles? It’s to prevent a bad investment, is the bottom line.Texas being a community property state, that divorce may not be final. That spouse may have a legal right of 50% of that property or a son or daughter. The black sheep of the family could come back all of a sudden say, “That was granddaddy's house and I'm entitled to something from it.”“There's an interest that belongs to me. Where is it? Why didn't I get paid? Who sold this? Where's my money?” Go to the title company, but no. If you don't have title insurance, you're like, “You owe me money,” and then there could be the whole legality. That was what, at the end of the day, ended up being a bad investment that could have been prevented. At the end of the day, if you're asking me, why do you need title insurance? It’s to prevent you from making a bad investment.For one, I don't pay it. The borrower does. That's better, but it is a small price to pay to avoid letting your money be held hostage. Getting into that, we've got to clear up this title. It's going to take the lawyers a couple of years, “No. I only loaned it for six months.” I can foreclose all I want. It doesn't matter. I won't have clear title to that property if I have to foreclose. For me, it's avoiding holding your money hostage.You want to make money on your money, not have it tied up in legalities because of not being informed or not doing your due diligence. Not allowing a third party, like the title company to do the due diligence to protect your investment, to protect you so you can get your money to be in and out and move onto the next project, borrower or whatnot.That's the beauty. If there is something that's missed, that’s why there is title insurance. It’s to remedy the situation and make everybody whole.[bctt tweet="A property should be clear of debts and liens for the new consumer." username=""]That's why the title company does its job. In the case that there is, you're insured, protected and that's why the title companies have underwriters. That's why they're an insurance company. That's why you pay them to protect you and then fix the wrong. It gives you the mind.For everyone, a title company is no different than any other insurance company. They're going to be regulated by the state, whatever state they're in. They're going to have to follow the rules. They're probably going to have standard forms from that state that they use, at least to get started and then things change and go in all other areas. That's what we're going to go into all other areas. When my borrower finds a property and I agree to borrow, he opens the title. He begins the title search with Patriot Title and then we get a title commitment.That title commitment is going to talk about any exceptions that won't be covered in insurance. There are exceptions and also exclusions. Anyone who has an auto policy or a home owner's policy is going to know that certain things are going to be excluded. Radioactive waste coming from your garage would be excluded from a homeowner's policy, for example. When you get a title commitment, the title company had gone through, done their research and due diligence and said, “We can trace it all the way back to sovereignty,” which I like to say is when we stole it from Mexico or the Indians, either way, you want to look at it.Whenever we say, “We're putting a fence around this land and I'm calling it mine.” You go all the way back. You get a title commitment and there are certain things that the title won't cover. If somebody hasn't paid back taxes, for example, the title doesn't come in and step into that. As part of the closing process, the title company ensures that those taxes are paid or deferred, however, credit is given to the buyer. The bottom line is those taxes are going to be handled at closing such that exceptions will come into play. Before we got on the line, I had a bit of a thought about this.It's like, “The property is being conveyed clear of debts and liens for the new borrower.” The title company at closing will ensure and assure the lender and the new purchaser that the property that they're receiving is going to be free and clear of debt and lien and not to exclude taxes, HOA, any other underlining lien holders that might be on the title, or that might have any derogatory authority to foreclose that would affect the new owner. We make sure that all debts and liens are paid in full so the new borrower who's getting the property is receiving it with only their new lienholder or obviously as a free and clear investment to pay in cash. We do ensure that all debts are paid in full upon conveyance. Conveyance is transfer title.Conveyance means a transfer of title from one party to another or one person to another or entity. Another example is conveyance or the right of possession if the house is sold, and let's say there's a tenant or a renter in it. That new owner has to honor the lease that the tenant is under until the completion of that. However, if there's a problem with that title that is like, “It has nothing to do with the title of the property. That's the property.” That is an exception to anything as well.Tenants, anything with the physicality of the property in reference to being a landlord type of situation. Our insurance is only to protect the title, the actual debt in the lien, the conveyance of a predecessor-to-predecessor, owner to owner throughout the years, to make sure that every owner conveyed that property without any debt or lien or clouds in the title. A conveyance is a very clean and clear pass-through of the owner to owner throughout the years. We're here to ensure that no one from many years ago was going to come and have some right to your property that you purchased here many years later.We make sure that all of that is a clear conveyance of title throughout the years for you, the end buyer and owner, to have a good title. In reference to somebody living in the shack behind the house, we have nothing to do with it. That's something that's negotiated in the contract process. We are here to show the history, the debt and the ownership conveyance. The ownership lineage of title now in reference to who lives there and how or damage that’s contract stuff.You don't care about the use of the property. It's just the conveyance of the title.Also, the deb. That there's nothing there that's going to come back and the paperwork.Wells Fargo is not going to come back and say, “We're going to foreclose now. I don't care if you just bought it.” That's not going to happen.[caption id="attachment_3199" align="aligncenter" width="600"] Title Insurance: The person who signed the contract is the owner of the property. Someone who isn't the owner can't sell it, so look at schedule A to know who the owner is.[/caption] We made sure Wells Fargo got paid off in full. That's what we do. Some exclusions are he's talking about this vision, which would have been landlord stuff, but it would be some of the city stuff. Some of your exclusions to title would be city easements, some right of ways that the property might be backed up to a utility right away. Those are some of the things that are excluded in the title because of the fact that the utility districts and the counties have the right to do what they need to do for the community.If your property happens to fall in an easement, then that would be excluded from your title. We cannot ensure that the city won't come in on your property and dig up an easement or something to put new pipes or new fiber optics that might affect your property. That would be considered an exclusion. Those are usually on Schedule B. I’m discussing Schedules, A, B, C, and D.Let’s run through the schedules of a title policy.As we left off, you open the title, then we get the title back. The title commitment is ready from Patriot Title, and we send you out your title commitment. Your title commitment is ready. Here's a copy of the tax certificates, the preliminary taxes of what we've found. These are all our findings. This is what we do. This is our due diligence. The commitment I consider was like your Bible of what we do in due diligence. It's going to have everything on that commitment and the tax certs. This is what we're based on in our due diligence. This is all our research available now.Schedule A is going to show you basically who is purchasing it. That would probably be yourself or your client, who the lender is, who's lending the money. If they ask us to put it on that front Schedule A and what their loan is going to be for based on the contract that you provided us. At the very bottom, it's going to disclose who the vested owners are. Why that's so important is that it has to be the same person who signed the contract. Why?Because someone who signs a contract has to be an owner of the property, let’s say Gerald Jr. signed it, but it's Gerald Sr. who's the owner of the title. Gerald Jr. is not the owner. Gerald Sr. is, so Gerald Jr. should not be selling this property or doesn't have rights to sell that property as it states in the title at this point. There could be some variables that may be Gerald Sr. died and now he's an heir. We're going to a whole different spectrum of things.It's important that you look at Schedule A because it tells you who is the seller and if that person who sold it is the same person that signed your contract and/or is there someone else that's on the ownership as well as the person that's under contract?...

PLP – 138 Utilizing Real Estate Books For Lead Generation And Beating Competition With Max Keller

Writing a book can help you attract private money lenders and motivated sellers so you could win the marketing game in real estate. Today’s guest, Max Keller, proves that. Max Keller is a real estate investor, best-selling author, and business coach. In this episode, he joins Keith Baker to discuss utilizing books as a lead generation technique and how to get prospective sellers to trust you so you could stand out among competitors. He also shares the two ways to get deals through hunting and trapping. He explains how he gets deals through the use of different methods giving them a network of people. Tune into this episode so you could have the opportunity to build great relationships and make your business grow too!---Listen to the podcast here:Utilizing Real Estate Books For Lead Generation And Beating Competition With Max KellerMax Keller Utilizes Books To Get Sellers To Know, Like And Trust HimI want to thank you for sharing your time with me. If you're looking for practical tips and advice on how to put the power of the banking system into your investment accounts, then you are in the right place but if you want to learn from my mistakes so that you can one, avoid them and two, profit from them, pull up a chair and pour yourself a drink because this show is for you. This show is dedicated to giving people like you and me the knowledge and the confidence for successful and profitable private lending, the most passive form of real estate investment known to man.[caption id="attachment_3186" align="alignleft" width="200"] Home To Home: The Step By Step Senior Housing Guide[/caption]In this episode, I sit down and talk with Max Keller, who’s up in the North Texas area, the Dallas-Fort Worth Metroplex. Max is using a very unusual strategy for finding his deals and that is to use books to get his sellers to know, like and trust him. Before we dive into the heart of this episode, I got to do a little housekeeping and need to ask you, have you joined the show’s Facebook group? Why the hell not? Simply go to Facebook Groups and search for Private Lender Podcast.Answer a few quick questions so that I know you’re serious and can follow instructions and you will be let in. You’ll get to hobnob and mingle with private lenders from all over this great country of ours. We may be divided but it’s still a great country. If you want to get your private lending off the ground for possibly some opportunities to bounce a few ideas off of me or perhaps we could even go down the coaching road if you like, please go to PrivateLenderAcademy.com and click on Apply Now. It's time to get down to the brass tacks of this episode.Max Keller was recommended to me by someone I held dear in the podcast industry. Julie Houston, thank you. She has helped me out in ways, mindset, technical, process, things that I wouldn’t think of. She hasn’t charged me a dime for it. All of her advice has been for free, maybe a lunch or two here or there. Considering the value that I’ve received from Julie, I’m in the deficits. Julie, thank you. A big shout out to you. Thank you for introducing me to Max.This has been a game changer in many ways for me. Thinking about this helps expand the mindset into what’s out there. I’m babbling already. It’s best to get to the interview, let Max discuss and describe how he uses books and how he’s helping his students to get some solid leads, generating some nice leads for some nice property acquisition. Let’s go ahead and jump into the interview with Max Keller.--Lender Nation, I am pleased to have Max Keller on the show, who was formerly a teacher and now is a full-time real estate investor but more importantly, he can teach you how to write a book. Max, welcome to the show.It’s good to be here. Let’s go.You come highly recommended from a friend of mine. That gets to the door but the fact that you were a teacher, that's something I've always wanted to do. Hence with the Private Lender Academy, I'm finally coming to get to that point. My path is a little bit reversed from yours. Tell me what brought you to this moment here on the show. How'd you get to the world of real estate and books?[bctt tweet=" If you don't know what’s working, you can't duplicate it. " via="no"]I hear that phrase, “Overnight success, lifetime in the making.” That's the way it feels. Everything that I did build on itself. Before I was in real estate full-time, I was an Algebra teacher at a Title 1 school. I coached football, basketball and track. I taught algebra and I loved it. The only thing is I wanted to make more income. My goal was to take a more passive approach and get maybe 1 or 2 rentals a year. If I stayed on that pattern, then at the end of finishing up teaching and retiring, I'd have a nice little nest egg. Going in real estate, I started realizing that it's a great way to increase your active income and start doing more deals.I left my job years ago. The day after Memorial Day, I told my principal, “I wasn't coming back.” It was a tough decision but it's been great. I've flipped about 130 houses lately because of where the prices have been. We'd done mostly wholesaling but deals in Texas still cashflow, especially mobile homes and things like that. I've been doing investing. On the borrowing side, I did the normal progression. My first deal was a self-funded whole tale. I took it down with a line of credit. The houses were a lot cheaper than in 2015. I cleaned it up a little. I sold it. I made $15,000 and that was cool. I wanted to do it again.The next deal, I took it down with that same line of credit but then once I had another deal, I couldn't keep doing that. My credit was good. That helped. It's funny. My credit was so good because I never used it. It's like, “What a weird system?” It was fine. I went to a community credit bank like credit union kind of thing, local bank and that worked good. I did a couple of deals like that. I was running out and they wanted me to jump through a lot of hoops. I went hard money. I did hard money for my flip deals for a while. I got involved and started meeting some local private money lenders. I love working with them. It was fun. I got to show them my deals. Some of them had a lot of experience. Some of them didn't have very much at all.Being a teacher, which has the teacher mindset, I'd say, “Come and check out. Let's not rush. Come and see one of my properties over here in Hearst. I'm doing this one. Check it out. I've got one over here in Irving.” I explained to him how it worked. It was hard because I'm a people pleaser. I liked my hard money lender. It was expensive. It wasn't as much flexibility and I wanted to have more long-term stuff too. I knew private lenders were looking to find good people, good deals and make good rates of return.I started using books and things like that. That was a total unknown but I started using books as an education piece to attract more private money lenders and motivated sellers. The overall model of how I got here is I taught before I got in here and I still do. That's the best way to build relationships, help people and make the business grow. I'm glad that I still get to do that. It's fun.I'm glad to know that, one, you taught algebra. God bless you. What grades? I'm curious.It was the eighth if they were ahead and then ninth on grade. I had one group of kids that were two years behind. They should have been juniors. It depends on how you are as a student. Let's say it like this. When you go to teach and you go to the job fair, there's elementary, middle school and high school. The elementary line, there are 400 people in it. All these people who've been waiting their whole lives to be kindergarten teachers.You go to high school line. Those are people with a lot of experience. They love their subjects. In middle school, junior high, there's nobody. If you have middle school kids of your own or cousins, you'll know but I liked it. What I liked about working with kids is the same thing I like with the people that I work within real estate. I like working with people that tell the truth. Kids, believe it or not, they almost always tell the truth. I remember one time I went to class. My hair spiked up. I thought I was looking cool and on trend. The kids shut that down in three seconds like, “Mr. Keller, we can see all the way through to your scalp.” That's the way kids are.Adults aren't always like that. From my own experience, it's important that I get to know the people I'm working with. On the other side, your readers, it's super important that they understand what's a good deal and what's not a good deal before they invest in it. Are they getting in with the right person? There's a lot of sleek talking people. Adults aren't always truthful. We got to find who's telling the truth. Who's doing what they say they're doing before we invest in the deals. That's a piece of teaching that I bring we’ll never forget.To your point, I would say real estate investors are very persuasive and passionate people. I tell students do not fall in love with the investor's passion or enthusiasm for the project and be the one to tell them, no. Have your brands. This is where you lend. Don't be afraid to say no. I bought Tim Grover's new book. He coached Kobe and Jordan. I heard him on a podcast. There was a guy who was trying out for the NBA and Tim Grover told him, “You're not NBA material. You can play for a long time. You can make a lot of money but the NBA is not your game.” The guy was upset, offended by Tim's honesty.[caption id="attachment_3187" align="aligncenter" width="600"] Lead Generation Through Books: The traditional marketing methods are going to be obsolete because of Wall Street. They have a big appetite for single-family homes. They have a lot of data, technology, and resources. With that, they can pay more than most people are willing to pay.[/caption] Years later, he sees him at an all-star game. The guy's not playing in the NBA. He goes, “You're the only one who told me the truth.” Everyone else bolstered him up, “You can do it.” Tim was like, “You're not there.” I don't remember if it was a talent or a mindset thing but he could see. He’s like, “You're a great athlete but NBA is not for you. Go to Europe, you'll kill it.” He wasted his time. That honesty of youth with the children telling exactly how it is, I believe into following that. I have to ask this because we're coming out of the COVID situation. This is the middle of 2021. You spoke that you're wholesaling. You're up in the Dallas-Fort Worth area. How crazy is the market up there? Bidding wars, above ask, what are the metrics that are going on?For most people, that's the way it is. For us and for the deals that we do, it's not like that but it's because the way that we market is totally different. We started marketing very different back in 2017. For most people, it's tough. I got a call from a lady, Diana. It's another exclusive deal. We're getting a lot of exclusive deals but it's because the way that we're reaching out to people is so different. We're leading with value and education. Not that other people don't have that too. Most folks are marketing for deals.In my opinion, it’s totally wrong. The way that they're marketing for deals within a few more years is going to be totally obsolete. The traditional marketing methods are going to be obsolete. The reason is because Wall Street, big hedge funds, have a big appetite for single-family homes and in our neck of the woods. They're still cashflowing. They have a lot of data, technology, resources and can pay more than most people are willing to pay.It was by accident and it worked out good. A little context, back in 2017, I was on track to do about 30 deals for the year but I felt like every house I was going into is like what you're saying. I was interviewing for the deals and taking number. I remember going to this one house in Grand Prairie. There were literally twenty investors in the house. When you're doing deals like that, I call them a win lose.The homeowner wins because they get a price that they wouldn't have gotten 2 or 3 years ago but you lose because you're taking on the same amount of risk but you're not covering that risk. If you have a private lender on that deal and you're doing these skinny deals, their money has more risk. It's a real situation that's going on. How we've circumvented, it is two ways. One, I found a niche that I like to work with. I made a list of all the deals that I had done. I was up to about Deal Number 50 in 2017. I made a list of the deals. I put the criteria of the people I wanted to work with. For me, it was pretty simple. I want to make a good profit on a deal because it takes me about the same amount of time to flip a house and make 40 than it does to make 20. I was like, “I need to stick with the better deals.”[bctt tweet="Lead with value and education so people can trust you." via="no"]The other one is, I didn't want to work with people when I make an offer. They couldn’t resist. It was like a tug of war like, “No, my house isn't worth that much. What are you talking about?” I’m like, “I'm the expert. I do this all day.” This is what I'm talking about. I want to work with people who saw me more as their consultant and trusted advisor. I want to have fun. I didn't want to work with people that I had to go bail out of jail and they were yelling at me on the phone. All the things that went with my traditional motivated seller marketing.What happened for me were two things. One is when I looked through my deals, most of them didn't meet all three criteria but the ones that did were all seniors. I was like, “Seniors?” I started to peel back. I was like, “I want to work with more senior homeowners. What marketing is helping find those folks?” I found out that my traditional marketing wasn't where they were coming from. I was getting people by accident. They see us in the neighborhood. Their family members would call us.They would close a lot higher rate. I found they were like slow to trust. When they did trust you, they were very loyal. They wouldn't go behind your back for $100 or Redfin's going to give $2,000 more dollars. I was getting these deals and making an offer. Somebody else was $10,000 more and they were still taking my offer. I didn't know why. There are times in our business where things are working but we don't know why they're working. You don't know why you can't duplicate it.I was like, “I need to know why. I don't want to lock into stuff.” I called up one of the sellers and I asked him, “Remember me, Max Savior Home Buyers?” That's our home buying business. He's like, “Yeah.” I said, “You had a higher offer. Why don't you take that?” He said, “The reason is because we trusted you. You seem like you genuinely cared about our family and making the right decision. You were telling us about stuff that didn't even relate to you but it was good for us. Ultimately, that was more important than just the money.”That was the big a-ha moment number one. I started learning more about senior housing. My big a-ha number two, how we market is totally different and what makes it a lot easier to keep doing business in DFW. I was at an appointment with the adult child of a senior home owner. We bought their house. They said, “You've helped our family out a ton. You should write a book about this stuff.” I was like, “No. I'm a math teacher. I'm not an English teacher.” It's a big difference. Let's face it.I thought about it and I was like, “It's a good idea.” At the time, I was known in my area, my suburbs that I bought houses in as the guy who knew a lot about senior housing but I could be the guy who wrote the book on senior housing. I had a real unscientific approach. If anybody on here who’s trying to write content, do an eBook, write a book or write a blog, I've got a gift that I'm going to give you at the end that can help you do that and save a lot of time but I didn't have that at the time.I wrote down all the questions that the seniors were asking me, all the questions they should ask me, pros and cons of all the different options. I took care of my grandma growing up. If you look at my pictures of my birthday and stuff, it's my grandma, all of her friends and my friends too. I've always been around seniors. I liked working with them. I like kids and seniors. You got to have a lot of patients to be around both. I like kids because they tell the truth and they're hilarious. I love seniors because they're so wise. It's amazing, the greatest people.I wanted to do that more in my business. When I finished this book, it was done. I thought it was pretty good. I started giving it out to my prospects and friends. I printed out 100 copies. Every time somebody call our office, instead of saying, “We're going to come over to the house.” I say, “Have you gotten a copy of our book?” They're like, “Your book?” The other people buying houses don't have books.I said, “Yeah, I'll send you a copy of it. Chapter Three is all the ways to sell your house, pros and cons of each. It's a big decision. I don't want you to make a big mistake. Can you read Chapter Three before I come over?” They're like, “Yeah.” It did a couple of things. One is when we went over there, they read Chapter Three, but they read the other chapters too. They got to know us. They felt like we were credible and trusted because we put the time into it to write a book.What else was cool is most of the time, there was nobody else. Why would they call other people when they already have the person that wrote the book on the subject? That's how we get deals. We use a lot of different methods. We have a network of people all over, investors, agents and brokers that license our content. I'm buying right here in DFW. I'm not buying in Florida or Houston. We have people who use the books.We did the same thing on the private lending side. There's an education piece behind that. You're doing an amazing job coaching people up on that. We give people our book. It's been cool. I call it share and attract. We share what we're doing with people. We attract the people to us that want to work with us. It’s like hunting and trapping. Some people love hunting people down. They love the thrill or the chase. I never liked that. I never liked hard closing techniques. It felt unnatural. Trapping is where you set out the date. This is what the opportunity looks like. If they come to...

PLP-137 Is This The New Normal?

Is This The New Normal?Hello Private Lender nation and welcome to episode 137 of the Private Lender Podcast, I’m your host, Keith Baker and I’d like to thank you for sharing your time with me today.Love the show? Subscribe, rate, review, and share!Here’s How »If you’re looking for practical tips and advice on how to put the power of the banking system into your investment accounts, then you are in the right place.But do you want to learn from my mistakes so you can both avoid and profit from them? Well then pull up a chair and pour yourself a drink, my friend. Because this podcast is just for you, as I am dedicated to giving people just like you and me the knowledge and confidence for successful and profitable Private Lending.In today’s episode, I will bore you and discuss some very recent conversations I had while on a trip to San Francisco and the Bay Area, and I heard some interesting insights from some friends of the show. But before we get to the heart of the matter, first I need to do a little housekeeping.1 - Have you joined the Private Lender Podcast Facebook group? Well why not? Head over to the show notes for the link or simply search Facebook groups for the Private Lender Podcast.Private Lender Podcast Facebook Group2 – And, please head over to PrivateLenderAcademy.com and click on Apply Now to learn more about how to get your Private Lending off ground and for opportunities to receive coaching from me.Apply – Private Lender AcademyOK, the housekeeping is finished and now it’s time to get down to the brass tacks of today’s episode: Are we normal?I took a short trip and flew to San Francisco earlier in August and spent a few days catching up with some friends of the show as well as a few dear old friends who call the Bay Area home.And I caught an A’s game against the Rangers, so I’ve now ticked 3 Major League Ball parks off my bucket list.I’m glad I was able to take the trip before the government tries to lock us down again, which brings me to the question I have for you, dear listener:Are we in the new normal, or are we simply in a bubble in the housing market cycle?I won’t name any names yet as I haven’t’ asked whether I could mention names (you know, in case they are wrong) and I had the idea for today’s topic and wanted to get this episode recorded and distributed so here we go:One position I heard, especially in the case of the Austin, Texas market, is that we are in the new normal. Austin will mimic housing in the Bay Area historically speaking, which means high prices are here to stay (at least in the Austin area) and they will only continue to rise.Then, I heard the belief that we are long in the tooth for this market and a correction is coming – a very popular opinion that many investors share. Especially those investors who lived through 2008 and the mortgage crisis.In the case of the Houston area, I did a little reading and have found the following: Average house price up 14%1 month of inventory (6 months is considered a stable market)500,000 people move to TX every yearConstruction material shortage, lumber up 250%Days on Market are almost non-existentSo, which side are you on?Are we in the new normal with prices continuing to increase?Or is there a correction looming?Connect with me on social media and let me know:Private Lender Podcast FacebookKeith Baker on LinkedInOr email me: keith@privatelenderpodcast.com.OK. Here’s the deal, I don’t charge money for this show, but there is a cost and I would be extremely grateful if you would help drive awareness to the show, to get the word out by leaving me an honest rating and review over at iTunes, Google Podcast or whatever platform you are using to hear my voice.It doesn’t take that long and it’s a small price for the value I try to provide.That’s gonna do it for Episode 137 and just a few final thoughts:1 – Join the Private Lender Podcast Facebook Group2 – Remember to head over to http://privatelenderacademy.com/ for more information. And to be eligible for discounts and other pre-launch goodies like group coaching calls, then click on “Apply Now”So, as I sign off I’d like to say in addition to self-awareness and mindfulness, I wish you safe and prosperous Private Lending.I’ll catch you on the next episode.-kLove the show? Subscribe, rate, review, and share!Here’s How »Join the Private Lender Podcast community today:PrivateLenderPodcast.comPrivate Lender Podcast FacebookKeith Baker on LinkedInPrivate Lender Podcast TwitterPrivate Lender Podcast YouTube

PLP-136 George Salas On Getting Long-Lasting Revenue Through Short-Term Rentals

Most people flip houses, become a landlord, or purchase properties to get the most returns in real estate. But for George Salas, he found an incredible opportunity in short-term rentals, where a lot of people don't even consider. He joins Keith Baker to delve into how rent arbitrage increased his ROI significantly. He shares how he acquires his financing and puts together ample funding to keep the ball rolling. George also explains how he deepens relationships with the people that he trains, eventually building joint ventures.---George Salas On Getting Long-Lasting Revenue Through Short-Term RentalsLearn How Rent Arbitrage Can Increase Your ROIIf you're a regular reader to this show, then you know that I do my best to keep the topics of the interviews either strictly private lending-related or at least interesting from a different investment or personal perspective. The topic of the episode is no different as guest George Salas is flip and crushing it in the short-term rental space.I met him at a Mastermind in Key West and I'm happy that we connected. I got on the plane to fly to Key West. I did not want to go. It had extremely limiting beliefs and yet is one of the best things I've done. I love to know stories of innovators and how people pivot when times change or when they get bad, and given the recent COVID scamdemic and the current bubble and the retail housing market.It's a real disease. All that stuff is over 99% survival rate. It's a flipping scamdemic. We are in a bubble. I'm calling it. Greenspan said, "You can't see a bubble until you're beyond it or it's burst." I'm calling it a bubble. More than $50,000 above ask in the market is a bubble. You can bookmark this show and can come back to it and give me grief or cheer me on when I'm proven right.I couldn't think of a better time to introduce you to my guest and his business model. The best thing of all is that George Salas is crushing the short-term rental game right here in Houston, in H-Town, which makes my smile a little bit bigger. Let's go ahead and get down to the brass tacks of the show and straight to the interview with George Salas.---George, welcome to the show.Thank you very much, Keith. It is an absolute honor to be here.I'm looking forward to you to explain your business model. That is, you don't flip, landlord, own or finance but you do short-term rentals. I'm going to give you the floor. Tell us how you got into real estate, short-term rentals and the basic mechanics of your business.My journey started when I was six years old. I'm sitting in the living room of my parents' house. My mom and dad pulled my brother and me aside and said, "Guys, we need to talk to you. You're going to go to your grandma's. You're going to stay there for a little bit." This is from a city by the name of Lima in Peru, the capital. We moved to a small town.It was just my mom. It was an environment where I get to stand by my dad. We left that city into a small little town and then the town was 20,000 people. I didn't get to see my father for nine years but he came back again into my life. We were moving here to the US. I came when I was fifteen. I wouldn't get to say bye to him twice and it affected me my entire life until I realized that I didn't need to be better for my dad.I didn't need to be in a place I’m good enough because I felt I wasn't good enough. I felt that because my father was never a great provider. We moved here. All through my young 15, 18 to 20, I was a grocery stacker. I worked at Kmart. Then I got into the nightlife and I invested in a nightclub. I was in the nightlife for ten years. I was the number one top promoter in Houston for 7 or 8 years.[bctt tweet="Bad decisions aren't as bad if you learn from them. Turn everything around and make something completely drastic." username=""]All of a sudden, I had the opportunity to invest in a club. I had a bunch of money saved up. I did invest in the venue and then I ended up losing everything. Here I am in the city. I had invested $400,000 into a club that I didn't have control over. I didn't have knowledge about real estate. I lost every penny of it. I'm sitting in the living room of my apartment at the time and I don't know what to do with my life. I'm literally lost. My buddy Ben Franklin called me. We go to his property in Flint. We spent 3 to 4 hours there and something clicks in my head with all of this inspiration.That was a life life-changing phone call. I started training, taking courses, going to seminars. I went to a seminar in January of 2019. Four months later, I got my first flip. I did start flipping. I want it to be this real estate guy. I wanted to do a lot of deals and build an impact on real estate without knowing that you needed to have a lot of money to invest in real estate if you want to buy, fix and flip.You need $50,000, $60,000. For DLS, you do what we do. At the time, we didn't have the resources or knowledge to do it. I made $46,000 on my first flip in 2018. Then six months later, I figured out what wholesaling was. By the end of that year, I had brought $98,000 of wholesale fees and used that cash. This is from the $5,000 in my pocket keys.I use that cash to put into my first twenty rental arbitrage, Airbnb that had cashflowed me $2,500. It's little apartments, studios and I started with those. Since then, until now I've been able to build a six-figure business a month. Our short-term rental business does $150,000 a month. I've done 50 real estate deals in two and a half years.I've got an amazing network of friends like yourself and in the know of all of the real estate community here in Houston. I'm in the best time of my life. I'm happy, fulfilled, fulfilling my destiny. It all started with that phone call and making those bad decisions. Sometimes bad decisions aren't as bad if you can learn from them. If you can turn everything around and just make something completely drastic. Look for that thing that you're wanting to find, which was a success in real estate and then I reached out to short-term rentals. That's pretty much a breakdown.It's compelling because I find it funny that I had to go to Key West and meet you, even though we're right here in Houston. I've seen you come up on Facebook back in the good old days when we went to REIA meetings in person. I'll even throw John Jackson in there in Dallas. I'll include him. It is a very good supportive network.The event, it's the same as I. It makes all the difference when you have people that you feel have your back or going to shoot you straight on something. To your point, if you mess up and you have a loss, it's either have a win or a lesson. That's the way it is. As long as you own the loss, then it's a lesson and you keep moving forward. You get into the typical way. You've wholesaled. By wholesaling, you know how to analyze a deal and see where the spread is and the margin, “What's the rehab going to cost this stuff?”As we were talking in the pre-show, you're buying single-family residences, condos or studios. The SFR, the single-family concept but you run them not like your normal rental. If you get $300 cashflow positive a month, you're doing well. You're bringing the apartment cashflow syndication model and that's what the short-term rentals do. When you acquire, how are you financing? Are you using a bank or private money? What mechanisms and cash are you using to acquire your property?When acquiring, we have a few strategies. I'm going to talk about purchase strategy and non-purchase. We use a method called rental arbitrage keys. This method breaks down like this. You go to a landlord, rent the property and ask them to allow you to sublease it on short-term rental platforms for 3, 4, 5, 6 to 30 days.That's one method and it doesn't require you buying the property. Utilizing this big real estate. I'm talking about 3,000, 4,000, 5,000 square foot homes without having a buyer. If they bring in anywhere between 5, 7, 8, 10, we've got several houses doing $15,000 up a month. I'm talking about that method. What we've purchased, which we also do, I would say 60% of our portfolio is rental arbitrage, 20% is purchased direct and about 20% is purchased joint ventures.[caption id="attachment_3170" align="aligncenter" width="600"] Short-Term Rentals: Short-term rentals allow you to do a lot of deals and impact real estate without having to invest a huge amount of money.[/caption] We've got a few. We purchased via subject-to, partnerships, joint ventures and our corporate program. What we do for subject-to is we're taking over the payments, taxes, HOA fees and commitment with these wholesalers or landlords or sellers. We're taking the deed over to our property, and we're staging. For example, we have a property in Hawthorne, Texas, which launched in December of 2019 and it consistently brings in an average of $7,500. We just have a $50,000 reservation for 62 nights. Before what we did a little bit under $7,500 but it averages $7,500.Our mortgage is 60, 48 and that's PITI all in. We do our cleaning and everything. We're all in for about $2,500 max utilities, $400 or $500 cleaning supplies, $2,500, so that's an $800 or $900 on top of our mortgage. Anything above $2,500 is profit. That's what I meant. Do you have any questions about that one?It was different of words. I was going to ask when you say rental arbitrage is that you get a master lease on the property. You lease it from the landlord, sublet it nightly on the short-term VRBO or Airbnb model. The master lease might not be the right word but you lease the house, pay the monthly, you divvy it out and book it. That's a very clean model. I create financing but I like to keep the numbers simple. To me, that keeps it simple.This is how I started. I needed cashflow to build a business. I didn't have the money to buy it. Even though I got into purchases several and we own about ten, we did not have the capital to buy a bunch. That was just the method. We don't use master leases but a master lease would speak, in a sense, more of a triple net lease, a commercial lease. It's closer to that when you control everything you take of the maintenance.Master lease, you take care of everything. You're taking care of your maintenance and all of that thing. With houses which is our method now, we don't go off with apartments anymore because the houses are ten times more profit. I'm just being very conservative. We utilize these residential leases. We do 2, 3 to 7-year leases with initial terms of a minimum 2 to 3 and second terms where we create that option for us."We have to take care of your property. Let's do a six-year term but I'm going to come in and rent your property for three years.” In our next two years, let's figure out, what is it that you need for rent increase? Most people right now are getting the max ever the rent. Rents are up by 20% here. We negotiate that second term and the rent increases as low as possible. It's got to be favorable for both parties and we would just focus on these longer leases. Everybody makes fun.That's your rental arbitrage. When you purchase, you get them sub-to. That's smart. I assume you leave it as long as you can in that original name. Do you put it into a trust?When we purchase sub-to, we put them into a trust immediately and one of my LLC is the trustee LLC. Then I've got a separate LLC that is the beneficiary. Then we just leave it there. Not saying that you don't run into issues. This is a creative finance strategy. Sometimes if the wholesaler doesn't do a good job explaining all of the little points that you've got to touch, all the disclosures, sometimes we run into an issue that is very unlucky that the seller falls for bankruptcy.Then it complicates the whole entire transaction. We're figuring this out with one of our sub-tos, but if you do it the right way, the only problem is that you can call the note due if they wish to. Most of the time, 95%, 97%, maybe 90%, it doesn't happen.I've never had a seller file bankruptcy but I did have a tenant one time in my failed Baytown rental property. The judge gave him four months of rent-free living. The bankruptcy is going to probably get messy before it gets clean. I would like to know about how that turns out for you? I know that you like to partner with your students.[bctt tweet="Buying profits is one thing, but buying properties with someone you're teaching is another." username=""]You offer coaching strictly in the short-term rental arena. I liked the model because you bring them up and then you become business partners with them. You got to be careful. A lot of the wholesalers, the first three deals you got to split with me. Once you train these folks up and you go into a JV, what does that look like?What we're doing is we're internally launching and we've launched it already. Nothing is out in the known yet in the community. What we do is we train these folks which our students are real estate investors because our focus is helping real estate investors get to that six-figure short-term rental cashflow.Sometimes some of these real estate investors are busy with their wholesaling business, realtor business. They're busy with their subject to creative finance business fix and flip or landlord. They have a lot of properties. What we do is we give them the option. There's no, "You have to partner. We come and train you." If you have too much on your plate, we give that only the students that have been qualified.Meaning, you've got to have an X credit score, pre-qualify, X amount of funds to be able to do that, because if we launch and buy properties. Buying properties is one thing but buying properties with someone you're teaching and making sure you do this on a consistent basis than others because you ran out of money and that messes the whole entire thing up.We do the option and our methods are very precautionary. I've called it location process frequents. We party with them 50/50. We go out there, find the deal and rehab it. The studio will purchase it in their LLC or their name or whatever. We use the student's cash or credit. The students bring into cash or credit and they bring into private money.In a sense, we teach them every step of the deal as if they were doing it because we're doing it together as partners. We teach them as far as so, the students come to the property with us to do the analysis of making sure that the property's numbers are going to work. We meet there to assess the rehab with the contractor. Then we also take them there. We deal with the rehab and we're showing them exactly the back end, the front end how the entire properties have staged the sign.They're not doing it themselves. We're doing it together. My team is providing the labor, the steps. They're seeing all the steps. Everything is getting executed and they're learning. Most people learn what they do. They're doing with us. Then we turn around and refine the property and deed it over onto our partnership LLC or limited partnership. We all make money. Go home. We have the process in the back. They can do whatever they want and pick the same process and then just rinse and repeat.In an average ballpark deal, how much does a student need to bring in private money? With sub-to, it’s going to be less but if you're getting in, what was the average buy-in? If I was going to fund one of your students, how much and how long would it need to be out?The average buy-in depends on the property but we estimate with the down payment costs, as we buy correctly, which is always 75% to 80%, 82% because you can't find anything above that. We're closing with a property this first week of June and this one is pretty much at 78%. They're putting up $40,000, $50,000 on the down payment side of the short-term loan.On the refinance, if all things work out, our appraisals are coming back, so I'll find out. After figuring out and seeing all the comps we're estimating, you never know what the place was, though but the market is fairly high right now. We're estimating anywhere between 4 or 25 for this deal, maybe 4 or 50. We're going to be in cash out of pocket 30 to 40 max, maybe even less.[caption id="attachment_3171" align="aligncenter" width="600"] Short-Term Rentals: Through rent arbitrage, one can lease the house, pay the monthly, divvy the finances, and then book it.[/caption] That includes the short-term loan, the rehab loan and all that. They're going to be cash out of pocket. Then after that, they are all refinanced but they are all carry across, which some tax could roll a little bit above or beyond if things get complicated. All the refinance there are costs for staging. For example, this property is 5,000 square feet but it's going to bring in about $15,000 to $20,000 a month.We are estimating about $25,000 to $30,000 on the furnace sheets and about $5,000 to $7,500 on the labor, maybe a little lower. You're putting 3540 plus 3540. Maybe a miscellaneous, we estimate 80 to 100 per deal but then you turn around and bring back in an average after the 50/50 split on this deal, our projections for the partner on that 80 to 100 is $3,000 to $4,000. If you do the Math times twelve, that's about 48% annually over a period of five years, which is our term. That's about 200% to 250% of IRR.When you bring it into the refi, are you going with community banks that are providing your refinancing?It's going to be either your credit union, an investor loan or just a regular type of financing. One of those three, depending because 80% cash-out refi and we're at 80% on the refi LTV, then we're good.You're not going to Freddie or Fannie to refinance these. What it means is that if you go to a traditional bank, you're going to get a lot of flak trying to refinance. When I've been refinanced out of bridge loans or acquisition loans, it's never been with the bank I'm familiar with but in some credit union or a community bank and they'll take it all day long because it's backed by real estate and the big banks won't touch it. I was curious. You are getting biz mortgages to refi. Let me just run through the timeline. You buy it, rehab it, appraise it. You're refinancing the short-term money for 3 to 6 months before you refi it?Up to six.Do you have a five-year term on that?Five-year term after we refi. That's when we decide, "We're going to sell or not." The market should be up. There is going to be a certain small cost you're going to have to do in five years.I understand that you are considering trying to put some money together for a fund so that you can have an ample supply. This is not an

PLP-135 The Fifth cure to a Lean Account Balance

Hello Private Lender Nation!!!!If you’re looking for practical tips and advice on how to put the power of the banking system into your investment accounts, then you are in the right place.But do you want to learn from my mistakes so you can both avoid and profit from them? Well then pull up a chair and pour yourself a drink, my friend. Because this podcast is just for you, as I am dedicated to giving people just like you and me the knowledge and confidence for successful and profitable Private Lending.In today’s episode, we will continue with our monthly lesson from the book by George Clason's the Richest Man in Babylon. Today’s lesson is the 5th cure for a small account balance, which is simply: Make your house a profitable investment, or in other words, own your own home. but before we get to the heart of the matter, first I need to do a little housekeeping.1 - Have you joined the Private Lender Podcast Facebook group? Well why not? Head over to the show notes for the link or simply search Facebook groups for the Private Lender Podcast.Private Lender Podcast Facebook Group2 – And most important of all, the Private Lender Academy still needs some work before I introduce her to the world and therefore I’m departing from the original plan in hopes of getting the course to life. However, on August 17th at 7:30pm CST, I am holding a webinar/Facebook Live where I will begin to teach the principles of the academy. The purpose of the webinar is to get 10 committed people to opt-in to group coaching where I teach you everything I know about originating private loans.As a result of participating in the group coaching, you will help me refine the PLA and receive a free copy of the course once it is complete. I am looking for 10 students to form this focus group that will help refine the course over a 4-week period beginning in late August.So head over the www.PrivateLenderAcademy.com and click on Apply NowApply – Private Lender AcademyOK, the housekeeping is finished and now it’s time to get down to the brass tacks of today’s episode: the 5th cure for a lean account. And like so many lessons in life that we should heed, the principle is quite simple, but sometimes we humans seem to have trouble with the execution.Let’s get down to the brass tacks and listen to what Arkad tells his students:Make your house a profitable investment. A. K. A. - Own your Home"If a man sets aside none parts of his earnings upon which to live and enjoy life, and if any part of his nine parts can be turned into a profitable investment without detriment to his well-being, then so much fast will his treasures grow." So spoke Arkad to his class at their fifth lesson. "All too many of our men of Babylon do raise their families in unseemly quarters. They do pay to exacting landlords and liberal rents for rooms where their wives have not a spot to raise the blooms that gladden a woman's heart and their children have no place to play their games except in unclean alleys."No man's family can fully enjoy life unless they do have a plot of ground wherein children can play in the clean earth and where the wife may raise not only blossoms but good rich herbs to feed her family. "To a man's heart, it brings gladness to eat the figs from his own trees and the grapes of his own vines. To own your own home and to have it a place he is proud to care for, puts confidence in his heart and greater effort behind all his endeavors. Therefore, I recommend that every man own the roof that shelters him and his family. "Nor is it beyond the ability of any well-intentioned man to own his own home. Has not our great king so widely extended the walls of Babylon that within them much land is now unused and may be purchased at sums most reasonable? "Also, I say to you, my students, that the money lenders gladly consider the desires of men who seek homes and land for their families. Readily may one borrower to pay the brickmaker and the builder for such commendable purposes, if one can show a reasonable portion of the necessary sum which you yourself have provided for the purpose. "Then when the house is built, you can pay the moneylender with the same regularity as you did the landlord. Because each payment will reduce the amount you owe to the moneylender, a few years will satisfy his loan. "Then will your heart be glad because you will own in your own right a valuable piece of property and the only cost will be the king's taxes. "Also, will your wife go more often to the river to wash your robes, that each time she returns she may bring a goatskin of water to pour upon the growing things. "Thus come many blessings to the man who owns his own house. And greatly will it reduce his cost of living, making available more of his earnings for pleasures and the gratification of his desires. This, then, is the fifth cure for a lean purse. Here’s the deal, I don’t charge money for this show, but there is a cost and I would be extremely grateful if you would help drive awareness to the show, to get the word out by leaving me an honest rating and review over at iTunes, Google Podcast or whatever platform you are using to hear my voice.It doesn’t take that long and it’s a small price for the value I try to provide.That’s gonna do it for Episode 135 and just a few final thoughts:1 – Join the Private Lender Podcast Facebook Group2 - Head over the www.PrivateLenderAcademy.com and click on Apply NowApply – Private Lender Academyif you would like to be part of the group coaching focus group. As I sign off I’d like to say in addition to self-awareness and mindfulness, I wish you safe and prosperous Private Lending.I’ll catch you on the next episode.-k