Money, Money, Money! With Travis Wandell!
Travis Wandell – Travis started as a lender in the late 90’s, he has been around the lending block so to speak and found his home at Veristone as a hard money lender. Travis Is the director of business development at Veristone capital. Basically, he is the guy to go to when you are looking to fund a deal!! Listen in for some great nuggets about lending!
how de do’s :p
Joe – What is hard money, and how is it different from a conventional loan?
Travis – Hard money is secured by some kind of hard asset. A home, manufactured home, land, etc. A lot of people think hard money is for people who hard up for money, or a last option for lending.
Hard money is used for short term real estate investing. Get in a home, make improvements, and get out…we are for them.
Travis speaks on the creativity of hard money lending, using their own private funds, and helping people re-build after the crash.
“Investors don’t make properties worse, they make them better” – Travis Wandell
Julie – What type of deal is a standard transaction in the hard money world?
Travis – 2 types of deals that make up the brunt of what I do.
Acquisition/bridge – Money to help acquire the property. 20%-25% down payment and pay us off 6 months later. 1% interest per month charged
Acquisition + Rehab loan – money to help purchase the property + 100% of the rehab costs.
Julie – What happens when someone is living in the property?
Travis – So long as we have the loan on the property, it is for investors only so we couldn’t loan out on that property.
Part of the reason hard money is less regulated is because it’s for investment properties, and the terms are much less than traditional financing >12months.
Julie – What about someone’s credit report?
Travis – We do pull credit, but we do not approve according to credit, so a person can have a 400-credit score or a 801 credit score.
Credit Baller – A man/women that has acquired exceptionally high credit. 801’s and heartbreaks.
Julie – No dings on the credit matters?
Travis – Not an issue…unless you have a terrorist alert. No lending to terrorists!
Julie – What about fee’s, is there an application fee to get approved?
Travis – Nope, to get pre-approved for hard money you send me the application, your driver’s license, and your pre-approved! Plus, your part of Travis’s world that comes with benefits of 24/7 help with your deals! Awesome service!
Julie – Do we get a discount on catering, from your catering company?
Travis – Absolutely!
Julie – What’s the name of your Catering company?
Travis – Oldpress catering out of Woodinville. (This looks amazingly delicious!)
Julie – What about any other fee’s? Points, app fee, etc?
Travis – Veristone charges 2 different types of fees on all transactions
- Points for origination – Points can range, if loan is over 100k with SIC acquisition only it’s 2points. Acquisition + Rehab 3 points. But the riskier the deal the more we need to charge. Points cannot be financed + closing costs. Unless it’s an auction loan, we will finance those.
- Processing fee’s – $695 standard, unless your part of SIC then it’s $395!! whaaaa!? (That’s better saving than the total yearly cost of SIC)
Travis – With hard money lending the big thing that will tell you how much money you can receive is how much you have to play with.
Julie – Get that file set up so you can be prepared as soon as you have a deal that needs financing!
Travis – Pre-approval paper work is about 1/2 the paperwork, so getting that done will speed things up for you.
Julie – With the approval can you get a proof of funds letter for the offers people receive?
Travis – You really get access to everything I use. I’ve closed a deal with Veristone in 30 hours!!
Julie – Did you say Veristone Capital can be a source for getting deals?
Travis – Yes, the wholesalers that send me what they have we will send to our clients.
Julie – Do people call you when the deal is under contract to see if the numbers line up, or when the offer is complete, and they need money?
Travis – I have clients that do it either way. You can do it either way!
Julie – If someone is needing to understand how much time there going to need to close on a deal using Veristone?
Travis – I get this question a lot. There are two things that hold up a deal
- The customer/ Client
- Third parties. Title, escrow, insurance.
No one is ever waiting on Veristone, it depends how fast you can get the things done in order to get the deal complete. 2 weeks is plenty of time! But I can do a 7 -10 day as well.
Keep holidays in mind.
Julie – Anything on the checklist that is the number one thing?
Travis – Scope of work. You need to have a contractor in there to get that scope of work, this usually takes the longest.
Julie – Do you have a SOW template
Travis – We do! E-mail Travis if you would like a SOW overview sheet that must be turned in with nay deal.
Speaks on new software system that will keep records of all your SOWS and your deals so you can go back and look at all the deals you put together! Awesome new product.
Julie – What do you Forsee for 2018? New construction, fix flips, prehab’s, rehabs, etc.?
Travis – I think new construction is the edge of the curve that I’m seeing. A lot of people are sub dividing lots, but that process can take over a year.
- Speaks on working with private lenders and Veristone to complete a deal. but Veristone does need to be in first position on the lean.
Veristone will not finance a deal that we believe a client will not make any money on.
That’s why having a second set of eyes on these deals is crucial, and that’s what we do.
Julie – If an investor brings you a deal, do you offer up the title company to make sure the title report is looking good?
Travis – Any industry contacts I have, I let them use them. All my contacts are your contacts!
Joe – What do you see as the common mistakes investors make?
Investors are running before they walk. starting to do things they are unsure of. Start off by doing some simple flips and build a foundation for yourself.
Then spending entirely too much on a rehab.
“Sometimes good, is good enough” – Travis Wandell
The last thing that I see is people nit picking small fees from the beginning, not realizing how much they are going to need the relationships in this business, especially in the beginning.
Prove ya self!
Julie – this whole game is about relationships. It’s less about nickel and dimming than it is about the relationship.
“Committing to someone, and to that relationship that will benefit you the most in the long run”
– Julie Clark
Travis – If you’re a shopper, your going to spend so much time to save a nickel that you’re going ot miss out on so many deals.
Julie – When your starting out it’s going to cost more. Just like on your first deals I suggest you pair up on you deals.
It’s all about relationships in this business!!!
how can people find you Travis?
Travis Phone # – 425-250-6118
E-mail – [email protected]
Internet sight – www.veristonecapital.com
Thank you everyone for listening!