Flip Your Capital

05/15/2025

Flip Your Capital Weekly Zoom Meetup – Today!
5 PM PST | 6 PM MST | 7 PM CST | 8 PM EST
Can't make it? Message me for the replay link.

Link to the group is posted on the Flip Your Capital Facebook Group https://www.facebook.com/groups/flipyourcapital.

🚨 Today’s Topic:
📋 The 20 Questions I Use to Underwrite a Property
Learn how I evaluate if a deal is solid before a single dollar goes out.

📅 What’s Coming Over the Next 4 Weeks:
I’ll be breaking down what I call the CORE 4—my proven process for making profitable, lower-risk private money loans that generate monthly income.
Private Money Lending Training Series
✅ Today – May 15
Underwriting the Property – Is it a sound investment?
✅ Next Week – May 22
Underwriting the Borrower – Can they execute the plan?
✅ May 29
Processing and Closing the Loan – What are the documents I use and why are they airtight?
✅ June 5
Loan Servicing – How will you manage the loan after closing?

10/31/2024

Did you know that top financial advisors often won’t take clients with under $500,000 to invest? I knew this, but hadn’t experienced their “vetting process”—until now.

A month ago, I got an unexpected text inviting me to an “Informational Dinner” at The Keg in Chandler, AZ.

The pitch?

“Have you lost money in market downturns? Come learn how to find safety.” I was curious and had to check it out.

Here’s what I learned:
Their Target Client: Business owners with $500,000 to invest.

Their “Safe” Strategy: ETFs with a mix of U.S. Treasury bonds, investment-grade corporate bonds, and dividend-focused equities

Expected Return: 6-8% over 25 years; they claimed anyone promising more was misleading.

At the one-on-one meeting after I heard the offer I was direct and said “I regularly earn my investors 8-10% lending on my investment properties.” His response? “I can’t match that; 6% is what I like to target maybe 7%.” He ended the meeting—thanked me for coming, and I left.

My Takeaway:
Only 15% of U.S. households have $500,000 to invest.

The irony? Anyone can buy similar ETFs online without an advisor. Warren Buffett strongly advocates for investing in ETFs or index funds tied to the S&P 500 passively. Why do these folks pay the 1-2% to an advisor that gets paid if the investment is up or down?

All this proves one thing to me: safety or return “of” capital is often more important than return “on” capital.

But these ETF investments don’t guarantee returns, they aren’t collateralized with a hard assets, and don’t provide monthly cash flow.

To generate income, you’d need to “kill the golden goose” by selling off assets monthly.

What if....
You could achieve similar returns with monthly cash flow, backed by real estate as collateral, and with the flexibility to choose short- or long-term investments?

While there are no guarantees here either, a hard asset protects your investment—complete with a lender's title insurance policy securing your lien position and a hazard insurance policy safeguarding the property itself.

Over the past 18 months, I’m pleased to report that some of my capital investors are receiving steady monthly payments set to continue for years, while others are focused on growth and plan to reinvest as we refinance or flip some of the properties.

In full transparency, there were a few challenging moments along the way, but valuable lessons were learned, and I’m ready to move forward with my next round of properties for 2025.

So what’s my favorite asset class?
Affordable homes typically in the Southeast under $100K that need only quick repairs (not full rehabs), allowing me to seller-finance or joint venture with a local fix and flipper on an affordable home, creating immediate cash flow within a couple of months.

Sound interesting? Let’s talk!

10/02/2024

The data shows there is about $12 trillion in IRAs, with $3-4 trillion not actively invested, and around $7 trillion in 401(k)s, with $1-2 trillion sitting uninvested. Even though these funds aren’t being put to work, management fees are still being paid to the companies holding these funds each year.

So, why do people let this money sit? Here are some reasons:

-Low Balances: Many feel they don’t have enough to invest.
-Fear of Market Volatility: They’d rather do nothing than risk losing money.
-Lack of Knowledge: Some don’t know there are alternatives to traditional investments.
-Inertia and Procrastination: Reviewing investments is often not a priority.
-Waiting for the Right Time: They try to time the market instead of investing.
-Conservative Approach Near Retirement: Fear of making bad investments holds them back.

If you have money sitting in an IRA or 401(k), I frequently receive lending requests for small loans that could put your funds to work. For instance, on Monday, I spoke with an investor buying homes in the Midwest for $35K. He invests $5-7K in renovations for each home and then rents them to Section 8 tenants, netting about $1,000 per month from government payments. He currently owns eight homes and is looking to expand his portfolio.

I love deals like this because:

-We help provide affordable housing for those in need.
-The loan amounts are low.
-It’s easy to find investors with leftover funds for these small loans.
-The government pays the rents.
-The investor handles all the management.
-As lenders, we get paid every month for years to come.

If you have a small amount of money you’d like to put to work in a meaningful cause like affordable housing, reach out!

09/29/2024

I wanted to send this out before taking Sunday off.

$45K Loan - Rare Low Balance Co-Lending Opportunity
I’m funding this loan in my IRA—who's interested in participating?

This is a great small-balance loan, ideal for an IRA:

After-repair value (ARV): $127K to $135K (see attached comps)
Loan request: $45K (waiting on closing attorney fees for exact figures)
Loan term: 6 months with a 3-month extension option (for a fee)
Secured by a 1st mortgage with lender's title policy
Message me for details on the interest rate and points.

Background
The borrower is my contractor on three flips I’m working on in Fayetteville, NC. After dealing with three bad contractors, I’m glad to have found Troy. With 25 years of experience, he’s not only a skilled contractor but also a good, church-going family man.
He paid cash for the home and all the repairs—this loan will help provide liquidity for his business.
The home is about 90% complete and should be listed for sale within 30 days. I expect we’ll be out of this loan in under six months.

09/26/2024

I’ve been slow to share this, but here it is—my daughter Jessica’s first step into real estate!

A couple of weeks ago, we attended the "What Box?" Options Seminar in Tampa, FL, hosted by Bill and Kim Cook. The event had amazing content on using creative options to purchase real estate (mostly single-family homes).

I was attending and since Jessica had just graduated college and had more flexibility, I asked Bill if my ticket included a guest. I mentioned that Jessica was interested in real estate, and without hesitation, Bill generously invited her as a “non-paying guest” as a graduation gift.

Not only was her seat covered, but Bill made her a key part of the seminar, using her as an example throughout the two days to explain concepts and, of course, joke with her about real estate things she might not fully grasp yet. The content was incredibly unique and useful.

When we took a picture with Bill, I even got a surprise kiss on the cheek—definitely a "Bill thing"! Jessica mentioned wanting to do some real estate work with me, and Bill responded, “I don’t care about your dad and his deals—he’s had his day in the sun. I care about you and the deals you’ll do, passing this knowledge to the next generation.” What a powerful statement!

Jessica also had the chance to meet Laura Dressman, a 22-year-old college graduate with a net worth already exceeding $1M! Her dad, Bob, is a hard money lender, and he's trained her up—now she's off to the races, buying rentals and loaning money at 22. We’re planning to connect with Laura and her dad at ORIEA this October.

To top it all off, Jessica had several people offer to help fund her future deals. Huge thank you to Bill and Kim Cook for giving Jessica a glimpse into what’s possible! ( We even made it to Clearwater beach for the day...fun trip)

09/26/2024

I’m funding multiple projects and seeking Co-Lenders for ongoing opportunities. Learn how to “Flip Your Capital” passively while our crews handle the work.

Current Projects:

Section 8 Rentals (Midwest): $35K-$45K capital required, 5-year term, 9% interest

Fast Fix & Flips (NC & PA): $150K-$200K capital required, 6-8 months, 10% interest + 1/3 of profits

New Construction Homes (Show Low, AZ): $400K per home, 10% interest + 20% of profits. A credit union can fund 65% of the cost if you prefer to come in with the down payment.

Any amount of capital can be invested. You’ll partner in each property with a 1st lien mortgage note collateralized by the property.

Reach out if interested!

09/24/2024

Update: 18 Months of Working on 10 Deals—What’s Next?

Last week, I caught up with a friend who’s a hard money lender in Tampa. He asked what I’d been working on lately. I told him:

4 fix and flips
2 room rentals with 50% equity
2 subject-to-second mortgages with 50% equity
2 private loans totaling $250K

He asked, "How’s it going?" The truth is, nothing has gone as planned, His next question: "Who’s getting paid?"

I listed it out:

Home Depot
Contractors
Airlines
Marriott Hotels (2.5 months of hotel stays)
Car rentals
Fast food (Bojangles- yum!)
Lenders
Investors

He smiled and said, “I hope you’ve learned from these deals.” I told him, “I’ve learned a lot more than I wanted to” Then he hit me with, “You’re working too hard for the money you’re making.” No one likes to hear this, but it was the truth.

That’s when he asked a question that changed my perspective:
“Why are you the investor in these deals instead of the lender?”

I told him it was because I wanted cash flow that would outlast me. He responded, “Most people get this wrong. They think the investor is making the money, but the lender is the one making money with no work...he said, "The banks have proved this for 200 years...they have the tallest building downtown and branch locations all over town"

Then he asked, “How many loans have you brokered in your career?”
I said, “Maybe 2,000 since 1998.” He shook his head
then said he’s closed about 600 loans as the lender in the last 8 years—and has made $30M. Stunned by this comment, I did the quick math and asked, “How are you making $50K per loan?”

He broke it down for me:
-15% interest
-5 points upfront (each point is 1% of the loan amount)
-2 extra points if the loan goes past 6 months—80% of loans do
-50% of the profit on each flip...he only funds deals he shares in the profit. (You also have to remember he made most of his money while COVID was forcing home values up...he said every deal they did jumped by 50K in value by the time it was finished and sold)
-He reinvests his profits and makes a profit on his profit

His model is simple:
He raised money and paid his investors 10% interest out of the 15% he charged and the split all other profits with his co-lenders. After three years, he had $3M of his own money. He then returned all the investor capital and grew his $3M to $30M over the next 5 years. (Hard to believe, he showed me his Quickbooks P&L and the 100 loans on his books...unreal.)

I returned from NC and FL last Tuesday, and all I could think about was that conversation. The blunt truth: I’m exhausted. The constant trips to NC, calls, and texts from contractors needing more money and supplies, and even battling a lawsuit—it’s been non-stop. Yes, there’s profit, but nothing like what my hard money lender friend is making. Honestly, I’m too embarrassed to share all the headaches I’ve dealt with just to fix these deals. The good news is my investors are in solid loans that will pay them well for years to come.

I came home with a new focus.
I'm going to update my ebook "Flip Your Capital" to a real book www.FlipYourCapital.com Start speaking at RIA's - (Real Estate Investment Associations) and find Co-Lenders I can share these profits.

I've turned down probably 100 loans in the last 100 months. Since last Tuesday I have 4 loans on my desk that I’m working on funding—as the lender this time...and yes the terms are 15%, 5 points for 6 months, 2 points for a 90-day extension, and 50% of the profits. (Obviously, that is not how I sell it to the borrower...I just say happy to fund your deal if you are open to splitting the profits)

If you’re interested in growing your capital by becoming a co-lender with me and splitting the profits on each deal you invest in, reach out

A definitive guide on the secrets banks use to double their money fast and how you can do it too! You will learn how to earn double digit rates of return and get your retirement back on track.