Aug. 20, 2025
From Sidelines to Success: Kanani shares her experiences becoming a Private Money Lender
Money shouldn't be what holds you back from flipping houses. That's the powerful message at the heart of this enlightening conversation between Blaire, a Flip Sisters coach, and Kanani, a successful private money lender within the community. When most people think of private lenders, they imagine wealthy investors with millions at their disposal. Kanani shatters this misconception, revealing how she transformed approximately $300,000 in retirement funds from previous employers into a self-di...
Money shouldn't be what holds you back from flipping houses. That's the powerful message at the heart of this enlightening conversation between Blaire, a Flip Sisters coach, and Kanani, a successful private money lender within the community.
When most people think of private lenders, they imagine wealthy investors with millions at their disposal. Kanani shatters this misconception, revealing how she transformed approximately $300,000 in retirement funds from previous employers into a self-directed IRA specifically for real estate investing. Without touching her family's day-to-day finances or disrupting her fulfilling career, she's funded six house flips across four different states, creating win-win scenarios for both herself and the flippers she partners with.
The conversation takes us through Kanani's journey from retirement account consolidation to her first lending experience during the hectic holiday season. With refreshing honesty, she shares the initial uncertainties, documentation challenges, and relationship-building process that eventually led to multiple successful investments. Particularly illuminating is her explanation of cross-collateralization and how she secures her investments against physical property—a key advantage real estate offers over more speculative investments.
What makes this episode especially valuable is the dual perspective it offers. For those hesitant about house flipping due to financial constraints, it showcases how private money lending makes deals possible. For those with retirement funds seeking better returns than traditional investments, it demonstrates how to put that "monopoly money" to work years before retirement age. The returns? Typically 10-14%, substantially outperforming standard retirement accounts.
Perhaps most powerful is Kanani's candid reflection on investing in herself despite initial skepticism from her spouse. "I wanted to invest in ME," she explains, highlighting how her real estate education has benefited not just her financial future but created opportunities to teach her children about wealth-building while providing tangible benefits for extended family.
Ready to explore how private money lending could transform your house flipping journey or investment strategy? This episode provides the roadmap and inspiration to take that crucial first step.
GOODIES
1. THE book on women flipping houses is here! Click here to grab the digital download of my new book for just $4.99! Just as everything else we do is different, so is FLIPPED: Lessons and Stories of Women Flipping Houses and Facing Their Fears.
2. Sick of sitting on the sideline watching other people do the thing you want to be doing? Are you FINALLY ready to do what it takes to flip your first house and want incredible step-by-step training and support to get you there faster? Click here to see if we may be a fit to work together.
3. Follow That Flip! Follow this 8-part video series as we flip a house!
4. Our goal is to inspire 1,000 new women each month and we've been achieving it with help from loyal listeners like you! If you are getting value out of this podcast will you kindly leave us a rating and review and help us spread our message?
5. Are you a real estate agent tired of chasing the same potential clients as everyone else? Sick of the roller coaster commission? Get the REI Agent Pro Certification! Click here for info and to join the waitlist.
The Flipsisters
Leaving people and places better than we find them.
00:01 - Introducing House Flipping with OPM
02:05 - Meet Kanani: Private Lender Journey
05:23 - Self-Directed IRAs for Real Estate
11:36 - The PML Experience Across States
17:44 - First Deal: Navigating Uncharted Waters
24:37 - Knowledge Is Power for Lenders
29:26 - Investing in Yourself First
WEBVTT
00:00:01.381 --> 00:00:17.411
You're listening to the Flip Houses Like a Girl podcast, where we educate, empower and celebrate everyday women who are facing their fears, juggling family and business, embracing their awesomeness and wholeheartedly chasing their dream of flipping houses.
00:00:17.411 --> 00:00:27.667
Each episode delivers honest-to-goodness tools, tips and strategies you can implement today to get closer to your first or next successful house flip.
00:00:32.560 --> 00:00:36.551
Hi, I'm Blair, one of the coaches here with the Flip Sisters.
00:00:36.551 --> 00:00:40.490
I've been flipping houses for six years and I've done 30 flips.
00:00:40.490 --> 00:00:54.482
My favorite part of flipping houses is transforming a space from something that's maybe gross and disgusting into something that's clean, safe and beautiful for a new person or family to move into and love.
00:00:54.482 --> 00:01:02.750
And I love coaching other house flippers because it's such an honor to be part of someone's transformation where they go from.
00:01:02.750 --> 00:01:03.713
I can't do it.
00:01:03.713 --> 00:01:10.153
I don't know how to flipping houses and then totally transforming their lives and the lives of their families.
00:01:10.153 --> 00:01:17.489
One of the biggest objections that we get to starting house flipping from ladies is money.
00:01:17.489 --> 00:01:19.394
I totally get it.
00:01:19.394 --> 00:01:24.850
When I first started, I didn't have any money myself, but I learned to use other people's money.
00:01:24.850 --> 00:01:31.932
That is one of the key areas we talk about here at Flip Sisters how to use other people's money.
00:01:31.932 --> 00:01:41.784
There are a few ways to do that, but today we're going to focus on using PMLs, which stands for private money lenders.
00:01:41.784 --> 00:01:49.063
This could be anyone someone in your family, someone in your community or even yourself.
00:01:49.063 --> 00:01:52.430
You can do this with your 401k or your IRA.
00:01:52.430 --> 00:01:55.555
Don't let no money hold you back.
00:01:56.221 --> 00:02:01.793
In this episode, I talk with Kanani, who is a private lender in the Flip Sisters community.
00:02:01.793 --> 00:02:05.891
You never know, she might just be funding your first flip.
00:02:05.891 --> 00:02:12.425
We'll just kind of get started a little bit.
00:02:12.425 --> 00:02:15.753
So everybody that's listening, this is Kanani.
00:02:15.753 --> 00:02:25.038
She is one of our Flip Sisters and she has been with us for a wonderful amount of time and she just has a beautiful presence and a beautiful light and is so kind and of time.
00:02:25.038 --> 00:02:34.383
And she just has a beautiful presence and a beautiful light and is so kind and very helpful and she has recently taken on private lending to some of the sisters in our group.
00:02:34.383 --> 00:02:44.189
So we thought we'd sit down with her today and just kind of discuss that process and what does that mean, and you know how did it work and all of that.
00:02:44.189 --> 00:02:46.174
So thank you so much for joining us.
00:02:46.174 --> 00:02:48.967
Kanani, can you tell us a little bit about yourself?
00:02:49.909 --> 00:02:50.230
Sure.
00:02:50.230 --> 00:02:56.693
So I joined Flip Sisters in October 2023.
00:02:56.693 --> 00:03:04.210
So I've been doing this for I don't know a year and a half-ish more almost two years, and I work full time.
00:03:04.210 --> 00:03:08.289
I, you know, I love my day job-ish more almost two years and I work full-time I, you know I love my day job, I do it, it's my career.
00:03:08.289 --> 00:03:13.766
I'm not planning on, you know, retiring from that, but I had.
00:03:14.849 --> 00:03:49.013
Recently, I had moved my money and my a lot of my retirement accounts into a self-directed retirement account, and I wanted to because I'd heard like, oh, I can invest in other places, and so, for my previous employers, I had a chunk of money that I thought I could do real estate with, and so that was what drew me to the program, because I wanted to learn how to do it instead of sort of sitting on the sidelines and just dreaming about it, because, definitely, I have been looking at real estate for a long time.
00:03:49.013 --> 00:03:59.655
I do have some rental properties that I had prior to joining the program, but you know it was my mom's property as her trustee.
00:03:59.655 --> 00:04:00.603
I've taken care of that.
00:04:00.603 --> 00:04:01.727
That's in Oregon.
00:04:01.947 --> 00:04:10.830
And then I have a property which I wouldn't really say I mean it's a rental, but my in-laws rent it, so it's more to help them.
00:04:10.830 --> 00:04:12.961
It doesn't make me any money, but it is.
00:04:12.961 --> 00:04:17.295
You know it's a good way to have my investment.
00:04:17.295 --> 00:04:25.132
I mean, it will grow and eventually, you know, and when they pass we will sell it or maybe keep it, who knows, depending on what the market looks like.
00:04:25.132 --> 00:04:28.189
But it was just a way to have some things.
00:04:28.189 --> 00:04:29.504
But I always thought we could do more.
00:04:30.120 --> 00:04:56.889
I want to stop, if that's okay with you, for a quick second, and just point out, like kind of what I heard with the rental that you're I think it's your you said you're in-law stand and like what a neat way to like help and support family but also keep the wealth in your family Because in essence they're you know, they're going to pay rent to someone and so the cool thing is is they're paying rent to you, which helps pay the mortgage and then that house is going to appreciate over time.
00:04:56.889 --> 00:05:03.012
I love to hear stories like that, where the money stays in the family in the community, like that.
00:05:03.012 --> 00:05:09.507
I think you know a lot of people don't realize that it can be done so hyperlocal, so that's really cool.
00:05:09.507 --> 00:05:14.444
And then with your self-directed IRA, how was that process for you?
00:05:14.444 --> 00:05:20.923
Did it feel like super overwhelming or was it just kind of like you know you found one and then decided to move your money over?
00:05:20.923 --> 00:05:23.387
Can you tell us a little bit more about that process?
00:05:24.447 --> 00:05:39.293
Yeah, so I had about $300,000 from previous employers that were you know just whatever mutual funds or target date things, and it was easy in the sense I didn't have to think about it.
00:05:39.293 --> 00:05:45.937
But I was trying to consolidate because I had several from employers, I did keep some.
00:05:45.937 --> 00:05:58.069
I mean, my current employer is I'm still using their plan and one of my first employers I still have the funds in their plan because it's doing so well and I sort of trust it.
00:05:58.069 --> 00:06:03.187
But the other ones that were sort of in between, you know, there were three companies.
00:06:03.187 --> 00:06:05.480
I'm like I don't want to have to think about all of those.
00:06:05.480 --> 00:06:08.973
So it was a matter of consolidation and it was.
00:06:09.194 --> 00:06:10.740
I don't even know how I even learned about it.
00:06:10.740 --> 00:06:17.824
I think I was just I think I might've been had a Facebook ad or something, and I was just like, oh wow, this sounds cool.
00:06:17.824 --> 00:06:22.069
And I started just watching a bunch of YouTube videos to see what it was all about.
00:06:22.069 --> 00:06:30.463
And then I then I got, you know, I got a Facebook ad for Flip Sisters and I'm like, hey, maybe I can do both, and so I did.
00:06:32.670 --> 00:06:32.911
Nice.
00:06:32.911 --> 00:06:35.048
Yeah, I always tell people it's kind of interesting.
00:06:35.048 --> 00:06:45.427
I hear stories like that a lot where you start thinking about it and I know everyone's kind of jokes about you know Siri or Echo is always listening and all the devices are listening.
00:06:45.427 --> 00:06:51.112
But I think there is a little bit of divine intervention in some of that where our ad kind of lands.
00:06:51.112 --> 00:07:00.771
But yeah, I had similar situations and I hear that a lot where people are like you know, it's very rare in this day and age for someone to be at the same job for 30 years.
00:07:00.771 --> 00:07:06.401
You know they may stay 10, 15, you know, and then they roll on to a different career or different position.
00:07:06.401 --> 00:07:10.009
So they may have several IRAs out there with companies.
00:07:10.009 --> 00:07:13.646
And I'm with you, I like simple, I like it all in one place.
00:07:13.646 --> 00:07:23.367
But I also like that you left some of it in your current employer, because I do believe diversification is important as well.
00:07:23.367 --> 00:07:27.514
Awesome, so thank you for sharing that portion with me.
00:07:28.180 --> 00:07:36.105
So we'll kind of scroll down a little bit in our thought process here and get jump into the meat of being a PML.
00:07:36.105 --> 00:07:38.112
I will say I'll go, I'll circle back.
00:07:38.112 --> 00:07:49.468
Like one of the things you said that I also find really important is, I think a lot of people believe that you can't do both work a job and be a real estate investor and I love that you do both.
00:07:49.468 --> 00:07:55.812
And we have lots of ladies who are out there who are very successful, who are working a nine to five and they're just like you.
00:07:55.812 --> 00:08:08.507
They love their job, they love their career, they love their work, family, you know and they're able to do this on the side and get, you know, some either funds back from lending or they're able to do this on the side and get some either funds back from lending or they're flipping and getting that little pop of cash.
00:08:08.507 --> 00:08:10.192
So I think that's awesome.
00:08:10.192 --> 00:08:22.572
And, just for anyone that's listening, I think about 98% of the ladies who join our program come in with a full-time job and many of them are able to or want to keep them into real estate on the side.
00:08:22.572 --> 00:08:24.507
So that's really cool to mention.
00:08:25.319 --> 00:08:36.351
And one of the things starting out with that, as we kind of go down talking about being a private lender, is I think there's a misconception out there about what a private lender is.
00:08:36.351 --> 00:08:42.562
A lot of times when I ask people you know well, who do you think a private lender is, you know they're telling me they think it's.
00:08:42.562 --> 00:08:53.947
You know, some person on a yacht somewhere that has millions and billions of dollars they don't really think of, like the person next door, their aunt, their uncle, someone with a retirement account.
00:08:53.947 --> 00:08:56.052
I think that one gets overlooked a lot.
00:08:56.052 --> 00:09:00.110
So you know, just going to delve into your personal life just a little bit.
00:09:00.110 --> 00:09:03.720
But like would you consider yourself a super rich millionaire?
00:09:03.759 --> 00:09:05.940
But like would you consider yourself a super rich millionaire?
00:09:05.940 --> 00:09:08.869
No, not at all, not, yeah, not remotely.
00:09:08.869 --> 00:09:27.950
But, you know, having this pot of money that I otherwise can't touch until I'm of retirement age, which is still a few years away, and I mean honestly, it kind of feels like monopoly money because it's not real or tangible at the moment.
00:09:27.950 --> 00:09:34.996
My husband, you know, was very skeptical and he's just like I don't know about this, you know that's, you know any of it.
00:09:34.996 --> 00:09:38.845
He's just like very, very skeptical and I said, but look, this is money that I can't touch.
00:09:38.845 --> 00:09:46.207
For another, at the time, 12, let's see, 13 years at the time, it's less now that I'll be able to touch it.
00:09:46.207 --> 00:09:48.504
So, like, why not let it do something?
00:09:48.504 --> 00:09:59.873
And why not, you know, have my, my goal of, you know, being able to do real estate and it's not affecting my credit or affecting our day-to-day bills.
00:09:59.873 --> 00:10:21.331
And and that was really important for myself, because I'm not a huge risk taker, I don't think and for my husband and therefore our marriage, because he's just like you know what if it doesn't work out, what if you don't get paid back, and and all this stuff, and like it wasn't going to be taking away from our day-to-day, right now livelihood.
00:10:21.331 --> 00:10:26.919
So I'm always thinking about, like, the future and how it will affect our future.
00:10:26.919 --> 00:10:36.322
And then that's, you know, that way it seems safe, or much safer, so I put $300,000 into the self-directed IRA.
00:10:36.884 --> 00:10:40.395
I did end up after joining Flip Sisters.
00:10:40.395 --> 00:10:42.605
I had spent a long time looking to flip a house.
00:10:42.605 --> 00:10:52.881
I must have made I don't know, 20, 30 offers, and it's a really competitive market up here in Connecticut and I and I just wasn't able to land anything.
00:10:52.881 --> 00:10:58.095
And so what I ended up doing was I ended up getting a rental.
00:10:58.095 --> 00:11:06.793
It was already done, it had just been renovated, it already had a great tenant in there and it was sort of easy and close by.
00:11:06.793 --> 00:11:14.523
And I ended up using some of those funds to purchase that property, which I have as a rental now, and the rest I'm using.
00:11:14.724 --> 00:11:18.572
As for private money, lending as a PML.
00:11:18.572 --> 00:11:21.268
So that left me at the purchase of that one.
00:11:21.268 --> 00:11:28.105
I bought cash just from the self-directed and it left me with about $170,000 to invest.
00:11:28.105 --> 00:11:30.169
I've used that money.
00:11:30.169 --> 00:11:35.220
Now I just invested in my sixth PML opportunity last week.
00:11:35.220 --> 00:11:38.705
Wow, yeah, the first one was in.
00:11:38.705 --> 00:11:44.133
It was between Christmas and New Year's 2023 to 2024.
00:11:44.133 --> 00:11:49.422
And that particular flip sister I've done three projects with her.
00:11:49.422 --> 00:11:50.907
She's still on her.
00:11:50.907 --> 00:11:56.625
The third one is still that hasn't been repaid back, but the first two have, and those you know.
00:11:56.666 --> 00:12:10.447
So all of my PMLs have all been out of state and that was, and where, at least from my vantage point, it was like, oh wow, I wish I could be there to do that, because it seemed like it was a lot easier.
00:12:10.447 --> 00:12:24.504
And perhaps that was you know, nothing's ever easy but you know, they were able to get deals and so to see, I was sort of living vicariously through other people as they were doing their flips and successfully flipping, and I was.
00:12:24.504 --> 00:12:29.807
You know, I'm just on the side, sort of cheering them on, and that's what I felt like my job was.
00:12:29.807 --> 00:12:49.160
The other three PMLs that I have going on so one was in Oregon and that closed Two last year, in the fall of last year, in the fall of last year.
00:12:49.181 --> 00:12:49.883
That was actually my second PML.
00:12:49.883 --> 00:12:53.490
And then I have another one in the Seattle area, washington State, and that should hit the market this week.
00:12:53.490 --> 00:12:59.211
There's been some bumps along the way, but last I heard that that should go on the market this week.
00:12:59.211 --> 00:13:02.625
And then the new one that I just started is in Texas.
00:13:02.625 --> 00:13:06.375
So four different states.
00:13:09.240 --> 00:13:10.403
So that's amazing.
00:13:10.403 --> 00:13:32.692
Yeah, like some of the things that you pointed out that I just kind of want to review because I think that they are awesome, one of the things that I love about the real estate investing space is the fact that you can I'll use the vanilla ice phrase you can get in where you fit in, and I feel like I can use that because, if you didn't know, he flips houses as well.
00:13:32.692 --> 00:13:35.645
But yeah, like, so there are different ways.
00:13:35.645 --> 00:13:36.969
You know you can flip houses.
00:13:36.969 --> 00:13:38.172
You can have rentals.
00:13:38.700 --> 00:13:56.845
The PML is very interesting to me because you've said something that a lot of my PMLs say that they're interested in flipping but they maybe don't have the time or the knowledge or they have other things going on in their life and they can't do like the actual work of it.
00:13:56.845 --> 00:13:59.490
So it's a very good way for them to.
00:13:59.490 --> 00:14:04.187
You know, they've said the same thing like live vicariously through me, look at the pictures.
00:14:04.187 --> 00:14:08.682
They're huge supporters and you know they're getting great returns.
00:14:08.682 --> 00:14:16.918
As you mentioned, when your money is in your IRA until you retire, as you mentioned, when your money is in your IRA until you retire, you can't touch it.
00:14:16.918 --> 00:14:21.580
It's you know.
00:14:21.580 --> 00:14:22.602
You can't pull it out, you can't use it.
00:14:22.623 --> 00:14:42.471
And so I'm finding that a lot of PMLs are turning to investing in real estate One because it's a tangible asset, right Like you can actually, like my PMLs can go at, like the local ones, and they can physically look at the house, they can touch it, unlike other things like the stock market or different investments, where it's based off speculation and they can't go, you know, grab whatever it is they're investing in.
00:14:43.140 --> 00:14:52.208
And a lot of times, like I know my personal, I have a retirement fund, I have an advisor and their returns are closer to, like a good year is 8%.
00:14:52.208 --> 00:15:05.409
You know that they promise they try to go higher, but it's not always a guarantee and I find, as investments in real estate we're offering like 10 to 14, sometimes more, for a smaller amount or a shorter amount of time.
00:15:05.409 --> 00:15:14.518
So the returns on a tangible asset are better in most cases and it's again something you can go and touch.
00:15:14.518 --> 00:15:25.160
So that feels like a good sense of security and I think it's neat that you've invested in all these different states too, so it's like you know, you've technically helped flip a house in multiple states.
00:15:25.160 --> 00:15:26.423
That's really cool.
00:15:27.405 --> 00:15:29.370
Yeah, no, I, it is cool, I've.
00:15:29.370 --> 00:15:35.442
It's exciting when I, you know when they'll, you know, send me a message and they'll show me a picture or something.
00:15:35.442 --> 00:15:38.600
I'm like, oh, we just did this and we just did that and it's great.
00:15:38.600 --> 00:15:56.645
And I think the real reason why I enjoy it and I sort of trust the process gosh, that's such a phrase that's used so much I trust the process because they've had, because we've had, the same training and we talk the same language.
00:15:56.645 --> 00:16:04.668
So if I, you know, if, if I'm going through their numbers and I'm like, well, I don't really understand this and you know how did you get to that?
00:16:04.668 --> 00:16:08.970
And I'll even, you know, I'll even see like one the.
00:16:09.070 --> 00:16:11.182
You know we're looking at the, the DA.
00:16:11.182 --> 00:16:17.375
You know we're analyzing the numbers and so forth, like I don't think you counted that twice and you need this year.
00:16:17.375 --> 00:16:19.422
And like you don't actually need that much money.
00:16:19.422 --> 00:16:34.971
You know you need like $50,000 less because you're you know she was taking into account a down payment, which was already taken into account with her loan, and and so I think that it feels more comfortable because we can talk the same language and we have the tools, the same tools.
00:16:34.971 --> 00:16:50.375
So it's easier for me to kind of read the information, read the data and then, you know, make a decision.
00:16:50.980 --> 00:16:55.022
And there have been so many more projects that I would have liked to have supported.
00:16:55.022 --> 00:16:58.187
But you know I'm all tapped out at this moment.
00:16:58.187 --> 00:17:17.623
I'll have to wait till you know one of them closes, or two, you know a couple of them close, but it is, yeah, it's, it's good to have a few projects going because it does sort of diversify the risk and you know, if one of the projects needs more time, then it's okay.
00:17:17.623 --> 00:17:19.006
Like I'm okay with that.
00:17:19.006 --> 00:17:23.682
I'm not counting on that to fund something else immediately.
00:17:23.682 --> 00:17:27.271
Again, I've kind of got this now 12 year timeline.
00:17:29.661 --> 00:17:30.744
Yeah, that's awesome.
00:17:30.744 --> 00:17:48.851
So, if it's okay, let's get a little nitpicky or into the weeds or details about the first deal that you invested in and that process, because I find a lot of times I love that you used the phrase earlier in our conversation about sitting on the sidelines and that you wanted to get in the game, because I find that a lot.
00:17:48.851 --> 00:17:56.294
You know people will go and they'll do the research and they'll get the training, but for some reason they just they never get on the field and play.
00:17:56.294 --> 00:18:14.988
So I feel like that first one, or that first experience is so important and I'd love to talk about, like you know kind of what was, if you can tell me just a little bit about that first deal and you know how it came across your desk and what did you guys look at or talk about and what ultimately made you go.
00:18:14.988 --> 00:18:15.568
You know what?
00:18:15.568 --> 00:18:18.574
Yes, this is the one we're going to do this.
00:18:19.819 --> 00:18:25.471
Yeah, so the first deal was in St Louis and it was.
00:18:25.471 --> 00:18:29.403
I mean, it was pretty straightforward, like the numbers looked good.
00:18:29.403 --> 00:18:30.165
It was.
00:18:30.165 --> 00:18:32.352
You know there was some work but not too much.
00:18:32.352 --> 00:18:37.103
Good it was, you know, there was some work but not too much.
00:18:37.103 --> 00:18:37.943
And six month timeline, like everything.
00:18:37.943 --> 00:18:38.425
Like it looked great.
00:18:38.425 --> 00:18:42.053
The tricky part of that one was we were birthed both first timers.
00:18:42.053 --> 00:18:46.444
We joined at similar times.
00:18:46.444 --> 00:18:53.686
I want to say she joined maybe a month after I did and she so you know, she was looking, I don't even remember how much.
00:18:53.686 --> 00:18:55.383
Maybe it was like $30,000.
00:18:55.383 --> 00:19:07.101
It wasn't a huge, a huge amount of money and she was trying to close, like she had like less than a week to sort of pull money together and it was all around Christmas time.
00:19:07.101 --> 00:19:10.184
Oh gosh, no stress there.
00:19:10.184 --> 00:19:17.154
So you know, like she like lawyers and people were on vacation, like things were closed.
00:19:17.675 --> 00:19:22.431
Yes, and a lot of attorney's offices that closed, like from Thanksgiving to Christmas Right.
00:19:23.279 --> 00:19:33.794
It's like oh come back and so you know, and so she didn't really have, she didn't have a lawyer set up and she was trying to find a lawyer.
00:19:33.794 --> 00:19:38.240
But again she started in November and like, with all the holidays and everything, like it was just hard to find.
00:19:38.240 --> 00:19:42.432
But she got this deal, she was in contract, right.
00:19:42.432 --> 00:19:45.861
So, um, and then I didn't know what I was doing.
00:19:45.861 --> 00:19:56.316
So I had, you know, I downloaded the template for the um, the promissory note, and we changed all the relevant numbers and changed Texas to Missouri.
00:19:56.316 --> 00:20:04.323
And I called my lawyer up here in Connecticut and I was like, I just got to pick your brain, does this look crazy?
00:20:04.323 --> 00:20:04.884
Or whatever.
00:20:04.884 --> 00:20:05.886
And he looked at it.
00:20:05.886 --> 00:20:07.980
He's like he goes, I'm not a lawyer in Missouri.
00:20:07.980 --> 00:20:10.087
He's like, so you have to take this with a grain of salt.
00:20:10.087 --> 00:20:15.490
He's like you are not protecting yourself, you are not being protected, you don't have a deed of trust or a mortgage or whatever.
00:20:15.590 --> 00:20:20.909
And I didn't know that wasn't the same thing as just the promissory note.
00:20:20.909 --> 00:20:23.253
And so I was like what is that?
00:20:23.253 --> 00:20:24.682
And I don't know how to do it.
00:20:24.682 --> 00:20:28.566
And so the woman that I uh lent to, she didn't know.
00:20:28.566 --> 00:20:33.250
And so we were, you know, on legalzoomcom or whatever.
00:20:33.250 --> 00:20:34.333
You know, we were on LegalZoomcom or whatever.
00:20:34.333 --> 00:20:42.770
We were just on all the online things because she could not get a lawyer on the phone, and if she couldn't get one on the phone in Missouri then certainly I wasn't going to be able to get one on the phone.
00:20:43.279 --> 00:20:52.488
So we downloaded some forms online and we filled it out and she submitted it.
00:20:52.488 --> 00:20:54.169
It was perhaps foolish, but we did it pretty blindly.
00:20:54.169 --> 00:20:55.210
We filled it out and she submitted it.
00:20:55.210 --> 00:21:01.035
It was perhaps foolish, but we did it pretty blindly, but we filled out the paperwork just fine.
00:21:01.035 --> 00:21:12.762
I was able to transfer the funds to her, she went down to the courthouse and recorded it and, you know, within six months I was paid back, she was able to flip the house and so.
00:21:12.782 --> 00:21:32.147
So that at least gave me a lot of sort of a breath of a sigh of relief because, because it worked out, she was very upfront and again she we were, you know, we started at the same time and she was definitely a numbers person, like I think her day job is as, like, an accountant or something like that.
00:21:32.147 --> 00:21:34.153
If it's not, she plays a good one.
00:21:34.153 --> 00:21:41.932
So she was, you know, she was very on top of her numbers and keeping track of her expenses and so forth.
00:21:41.932 --> 00:21:44.930
So I was happy with that.
00:21:44.930 --> 00:21:52.771
But that was like the first kind of jumping in and it made the rest of them easier to dive into.
00:21:52.771 --> 00:22:05.224
But it was scary that first time, cause I didn't know, right, I didn't know we neither of us knew, really knew, and we were up against the clock to get it closed before the end of the year.
00:22:06.227 --> 00:22:16.602
Yeah, so definitely talk about like trial by fire there, but I love the tenacity that, like you both had, and I think that definitely speaks to relationships.
00:22:16.602 --> 00:22:28.932
I tell a lot of people that this business, it's relationships, right, it's a PML, it's you know, somebody that needs the money to do the flip and you guys work together.
00:22:28.932 --> 00:22:38.609
And I tell a lot of people like it's teamwork, like there is a team effort, which I think is really neat in this space, that you guys are both working together to obtain the same goal.
00:22:38.609 --> 00:22:42.788
Granted, you get different outcomes at the end, but it's a win-win.
00:22:42.788 --> 00:22:43.711
You're both happy.
00:22:43.711 --> 00:22:45.467
So that is really neat.
00:22:45.519 --> 00:22:55.117
And you brought up some great points, too, about one of the reasons that I do find a lot of lenders prefer to lend in real estate is that they have that security.
00:22:55.117 --> 00:22:57.825
So they're not just signing a promissory note.
00:22:57.825 --> 00:23:01.452
Usually they're tied to the property as like a deed or a mortgage.
00:23:01.452 --> 00:23:08.553
So just what that means is that that person cannot go sell that house without paying you back.
00:23:08.553 --> 00:23:35.383
So that's a really nice sense of security there that they can't just run off with your money, go to Cancun, sell the house, make more money and never pay back, Right, so that's really neat have now been her PML two, two other times.
00:23:35.403 --> 00:23:36.164
right, she's on her third one.
00:23:36.164 --> 00:23:38.671
So I have a good relationship with her, like I trust her and and she's very transparent.
00:23:38.671 --> 00:23:41.962
You know in what she's doing and how her flips are going.
00:23:42.805 --> 00:23:49.705
For this last one that I did, she needed the money for the down payment, and so she did.
00:23:49.705 --> 00:23:54.659
She needed the money upfront rather than at escrow, you know, through a title company, and you know we're always like you know, rather than at escrow.
00:23:54.659 --> 00:23:58.548
You know through a title company and you know we're always like you know, don't ever send.
00:23:58.548 --> 00:24:05.549
You know, right, you can send it to the, you send it to title and let's do that, and you know it's all held and it's all accounted for and so forth.
00:24:05.549 --> 00:24:32.587
But she needed it for the down payment and so we were trying to figure out like what is what would be the best way to do that, and we actually came up with a um, or she came up with a good alternative because she had another property that she has as a rental that was free flip sisters, so the money is actually lent on that home uh-huh, that's what we call cross collateralcollateralization.
00:24:32.949 --> 00:24:34.411
Yes, very good.
00:24:34.411 --> 00:24:35.333
Yeah, that's awesome.
00:24:35.333 --> 00:24:35.773
I love that.
00:24:35.773 --> 00:24:36.762
And that's what?
00:24:36.762 --> 00:24:45.711
Again, with the real estate investing space, one of the things that I really enjoy is like how creative you can be and I'm like it's perfectly legal.
00:24:45.711 --> 00:24:57.521
Everything we do, you know, I always tell people I'm like you know a lawyer's not going to do all this paperwork and risk their livelihood, right, like they're not going to do something scrupulous just for your you know couple hundred dollar fee here.
00:24:57.521 --> 00:24:59.930
You know not be able to take care of their family.
00:24:59.930 --> 00:25:03.089
So everything we do is perfectly within the law.
00:25:03.089 --> 00:25:05.501
And so, yeah, that's neat, I love that.
00:25:05.501 --> 00:25:11.826
You guys kind of game plan that and found an alternative that also secured your funds to real estate.
00:25:11.826 --> 00:25:12.549
That's amazing.
00:25:14.099 --> 00:25:14.180
Yeah.
00:25:14.180 --> 00:25:23.288
So we were able to do that and I was able to transfer the funds to her prior to closing and actually I think she officially closed yesterday.
00:25:23.288 --> 00:25:24.726
The funds were transferred last week.
00:25:24.726 --> 00:25:32.880
With the holiday in there it was it should have closed earlier, but there was a bank holiday, a federal holiday.
00:25:32.880 --> 00:25:35.403
It should have closed earlier, but there was a, you know, a bank holiday, a federal holiday.
00:25:35.403 --> 00:25:46.415
So that made me feel a lot better because, you know, I didn't know her, I didn't, I didn't have a relationship with her, whereas with this other, this other flip sister, we did.
00:25:46.415 --> 00:25:52.106
So like I would feel less sort of like what do you mean?
00:00:01.381 --> 00:00:17.411
00:00:17.411 --> 00:00:27.667
00:00:32.560 --> 00:00:36.551
00:00:36.551 --> 00:00:40.490
00:00:40.490 --> 00:00:54.482
00:00:54.482 --> 00:01:02.750
00:01:02.750 --> 00:01:03.713
00:01:03.713 --> 00:01:10.153
00:01:10.153 --> 00:01:17.489
00:01:17.489 --> 00:01:19.394
00:01:19.394 --> 00:01:24.850
00:01:24.850 --> 00:01:31.932
00:01:31.932 --> 00:01:41.784
00:01:41.784 --> 00:01:49.063
00:01:49.063 --> 00:01:52.430
00:01:52.430 --> 00:01:55.555
00:01:56.221 --> 00:02:01.793
00:02:01.793 --> 00:02:05.891
00:02:05.891 --> 00:02:12.425
00:02:12.425 --> 00:02:15.753
00:02:15.753 --> 00:02:25.038
00:02:25.038 --> 00:02:34.383
00:02:34.383 --> 00:02:44.189
00:02:44.189 --> 00:02:46.174
00:02:46.174 --> 00:02:48.967
00:02:49.909 --> 00:02:50.230
00:02:50.230 --> 00:02:56.693
00:02:56.693 --> 00:03:04.210
00:03:04.210 --> 00:03:08.289
00:03:08.289 --> 00:03:13.766
00:03:14.849 --> 00:03:49.013
00:03:49.013 --> 00:03:59.655
00:03:59.655 --> 00:04:00.603
00:04:00.603 --> 00:04:01.727
00:04:01.947 --> 00:04:10.830
00:04:10.830 --> 00:04:12.961
00:04:12.961 --> 00:04:17.295
00:04:17.295 --> 00:04:25.132
00:04:25.132 --> 00:04:28.189
00:04:28.189 --> 00:04:29.504
00:04:30.120 --> 00:04:56.889
00:04:56.889 --> 00:05:03.012
00:05:03.012 --> 00:05:09.507
00:05:09.507 --> 00:05:14.444
00:05:14.444 --> 00:05:20.923
00:05:20.923 --> 00:05:23.387
00:05:24.447 --> 00:05:39.293
00:05:39.293 --> 00:05:45.937
00:05:45.937 --> 00:05:58.069
00:05:58.069 --> 00:06:03.187
00:06:03.187 --> 00:06:05.480
00:06:05.480 --> 00:06:08.973
00:06:09.194 --> 00:06:10.740
00:06:10.740 --> 00:06:17.824
00:06:17.824 --> 00:06:22.069
00:06:22.069 --> 00:06:30.463
00:06:32.670 --> 00:06:32.911
00:06:32.911 --> 00:06:35.048
00:06:35.048 --> 00:06:45.427
00:06:45.427 --> 00:06:51.112
00:06:51.112 --> 00:07:00.771
00:07:00.771 --> 00:07:06.401
00:07:06.401 --> 00:07:10.009
00:07:10.009 --> 00:07:13.646
00:07:13.646 --> 00:07:23.367
00:07:23.367 --> 00:07:27.514
00:07:28.180 --> 00:07:36.105
00:07:36.105 --> 00:07:38.112
00:07:38.112 --> 00:07:49.468
00:07:49.468 --> 00:07:55.812
00:07:55.812 --> 00:08:08.507
00:08:08.507 --> 00:08:10.192
00:08:10.192 --> 00:08:22.572
00:08:22.572 --> 00:08:24.507
00:08:25.319 --> 00:08:36.351
00:08:36.351 --> 00:08:42.562
00:08:42.562 --> 00:08:53.947
00:08:53.947 --> 00:08:56.052
00:08:56.052 --> 00:09:00.110
00:09:00.110 --> 00:09:03.720
00:09:03.759 --> 00:09:05.940
00:09:05.940 --> 00:09:08.869
00:09:08.869 --> 00:09:27.950
00:09:27.950 --> 00:09:34.996
00:09:34.996 --> 00:09:38.845
00:09:38.845 --> 00:09:46.207
00:09:46.207 --> 00:09:48.504
00:09:48.504 --> 00:09:59.873
00:09:59.873 --> 00:10:21.331
00:10:21.331 --> 00:10:26.919
00:10:26.919 --> 00:10:36.322
00:10:36.884 --> 00:10:40.395
00:10:40.395 --> 00:10:42.605
00:10:42.605 --> 00:10:52.881
00:10:52.881 --> 00:10:58.095
00:10:58.095 --> 00:11:06.793
00:11:06.793 --> 00:11:14.523
00:11:14.724 --> 00:11:18.572
00:11:18.572 --> 00:11:21.268
00:11:21.268 --> 00:11:28.105
00:11:28.105 --> 00:11:30.169
00:11:30.169 --> 00:11:35.220
00:11:35.220 --> 00:11:38.705
00:11:38.705 --> 00:11:44.133
00:11:44.133 --> 00:11:49.422
00:11:49.422 --> 00:11:50.907
00:11:50.907 --> 00:11:56.625
00:11:56.666 --> 00:12:10.447
00:12:10.447 --> 00:12:24.504
00:12:24.504 --> 00:12:29.807
00:12:29.807 --> 00:12:49.160
00:12:49.181 --> 00:12:49.883
00:12:49.883 --> 00:12:53.490
00:12:53.490 --> 00:12:59.211
00:12:59.211 --> 00:13:02.625
00:13:02.625 --> 00:13:06.375
00:13:09.240 --> 00:13:10.403
00:13:10.403 --> 00:13:32.692
00:13:32.692 --> 00:13:35.645
00:13:35.645 --> 00:13:36.969
00:13:36.969 --> 00:13:38.172
00:13:38.700 --> 00:13:56.845
00:13:56.845 --> 00:13:59.490
00:13:59.490 --> 00:14:04.187
00:14:04.187 --> 00:14:08.682
00:14:08.682 --> 00:14:16.918
00:14:16.918 --> 00:14:21.580
00:14:21.580 --> 00:14:22.602
00:14:22.623 --> 00:14:42.471
00:14:43.140 --> 00:14:52.208
00:14:52.208 --> 00:15:05.409
00:15:05.409 --> 00:15:14.518
00:15:14.518 --> 00:15:25.160
00:15:25.160 --> 00:15:26.423
00:15:27.405 --> 00:15:29.370
00:15:29.370 --> 00:15:35.442
00:15:35.442 --> 00:15:38.600
00:15:38.600 --> 00:15:56.645
00:15:56.645 --> 00:16:04.668
00:16:04.668 --> 00:16:08.970
00:16:09.070 --> 00:16:11.182
00:16:11.182 --> 00:16:17.375
00:16:17.375 --> 00:16:19.422
00:16:19.422 --> 00:16:34.971
00:16:34.971 --> 00:16:50.375
00:16:50.980 --> 00:16:55.022
00:16:55.022 --> 00:16:58.187
00:16:58.187 --> 00:17:17.623
00:17:17.623 --> 00:17:19.006
00:17:19.006 --> 00:17:23.682
00:17:23.682 --> 00:17:27.271
00:17:29.661 --> 00:17:30.744
00:17:30.744 --> 00:17:48.851
00:17:48.851 --> 00:17:56.294
00:17:56.294 --> 00:18:14.988
00:18:14.988 --> 00:18:15.568
00:18:15.568 --> 00:18:18.574
00:18:19.819 --> 00:18:25.471
00:18:25.471 --> 00:18:29.403
00:18:29.403 --> 00:18:30.165
00:18:30.165 --> 00:18:32.352
00:18:32.352 --> 00:18:37.103
00:18:37.103 --> 00:18:37.943
00:18:37.943 --> 00:18:38.425
00:18:38.425 --> 00:18:42.053
00:18:42.053 --> 00:18:46.444
00:18:46.444 --> 00:18:53.686
00:18:53.686 --> 00:18:55.383
00:18:55.383 --> 00:19:07.101
00:19:07.101 --> 00:19:10.184
00:19:10.184 --> 00:19:17.154
00:19:17.675 --> 00:19:22.431
00:19:23.279 --> 00:19:33.794
00:19:33.794 --> 00:19:38.240
00:19:38.240 --> 00:19:42.432
00:19:42.432 --> 00:19:45.861
00:19:45.861 --> 00:19:56.316
00:19:56.316 --> 00:20:04.323
00:20:04.323 --> 00:20:04.884
00:20:04.884 --> 00:20:05.886
00:20:05.886 --> 00:20:07.980
00:20:07.980 --> 00:20:10.087
00:20:10.087 --> 00:20:15.490
00:20:15.590 --> 00:20:20.909
00:20:20.909 --> 00:20:23.253
00:20:23.253 --> 00:20:24.682
00:20:24.682 --> 00:20:28.566
00:20:28.566 --> 00:20:33.250
00:20:33.250 --> 00:20:34.333
00:20:34.333 --> 00:20:42.770
00:20:43.279 --> 00:20:52.488
00:20:52.488 --> 00:20:54.169
00:20:54.169 --> 00:20:55.210
00:20:55.210 --> 00:21:01.035
00:21:01.035 --> 00:21:12.762
00:21:12.782 --> 00:21:32.147
00:21:32.147 --> 00:21:34.153
00:21:34.153 --> 00:21:41.932
00:21:41.932 --> 00:21:44.930
00:21:44.930 --> 00:21:52.771
00:21:52.771 --> 00:22:05.224
00:22:06.227 --> 00:22:16.602
00:22:16.602 --> 00:22:28.932
00:22:28.932 --> 00:22:38.609
00:22:38.609 --> 00:22:42.788
00:22:42.788 --> 00:22:43.711
00:22:43.711 --> 00:22:45.467
00:22:45.519 --> 00:22:55.117
00:22:55.117 --> 00:22:57.825
00:22:57.825 --> 00:23:01.452
00:23:01.452 --> 00:23:08.553
00:23:08.553 --> 00:23:35.383
00:23:35.403 --> 00:23:36.164
00:23:36.164 --> 00:23:38.671
00:23:38.671 --> 00:23:41.962
00:23:42.805 --> 00:23:49.705
00:23:49.705 --> 00:23:54.659
00:23:54.659 --> 00:23:58.548
00:23:58.548 --> 00:24:05.549
00:24:05.549 --> 00:24:32.587
00:24:32.949 --> 00:24:34.411
00:24:34.411 --> 00:24:35.333
00:24:35.333 --> 00:24:35.773
00:24:35.773 --> 00:24:36.762
00:24:36.762 --> 00:24:45.711
00:24:45.711 --> 00:24:57.521
00:24:57.521 --> 00:24:59.930
00:24:59.930 --> 00:25:03.089
00:25:03.089 --> 00:25:05.501
00:25:05.501 --> 00:25:11.826
00:25:11.826 --> 00:25:12.549
00:25:14.099 --> 00:25:14.180
00:25:14.180 --> 00:25:23.288
00:25:23.288 --> 00:25:24.726
00:25:24.726 --> 00:25:32.880
00:25:32.880 --> 00:25:35.403
00:25:35.403 --> 00:25:46.415
00:25:46.415 --> 00:25:52.106