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Building Strong Lending Relationships with Julie Anne Peterson · The Academy Presents podcast

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  Did you know that 90 % of the world's millionaires
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  invest in real estate? Well, I'm Angel with the
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  Academy Presents Real Estate Investing Rocks,
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  and I'm here to help you if you want to go for
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  your piece of that pie. Are you new? Are you
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  new to this and you just don't know where to
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  start? It's okay. Are you someone that has invested,
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  but you feel stuck, you feel like you've lost
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  momentum, you don't know where to really head
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  from here? Are you a seasoned real estate investor
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  who is doing great but maybe you just want to
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  hone a few skills here and there? This is the
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  place for you. The Academy Presents Real Estate
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  industry experts so that you can save time, avoid
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  costly mistakes, and begin living the life you've
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  dreamed of all through real estate investing.
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  You're already taking the first step. just by
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  joining us here today. Hey guys it's Angel with
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  the Academy Presents Real Estate Investing Rock
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  Spring Summit and I am so glad you're here. This
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  has been amazing you know these are my favorite
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  six days of the year there's three in the spring
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  and three in the fall and absolutely my favorite
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  days and I'm super excited to have Miss Julianne
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  Peterson here because we're going to talk about
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  the debt side of things which That is your biggest
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  partner. You can think forming a GP team, oh,
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  it's super duper important, and it is. But your
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  other biggest partner is your lender, because
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  they're going to carry the majority of the ownership
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  of your property anyway. So you're going to have
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  to include them and make sure that you're meeting
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  all of their requirements. You want to have a
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  really awesome loan broker with you that can
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  help you understand the process and help you
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  understand everything and can deal with you when
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  you're crying and breaking down and losing your
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  mind. I may have experience with this and so
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  might Julie Ann Peterson. A little bit just a
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  little bit, but you know I'm going to I'm going
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  to turn it over to you and that you give us a
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  little bit of your background and then we can
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  get going. Sure, thank you so much for inviting
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  me to. spend some time with you and your audience
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  here. I've been with Old Capital for about five
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  years now, and I've got 30 years of real estate
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  transaction experience. I was an owner operator
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  in this single world, single... Boy, I'm not
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  doing this too well. I hope you can cut this,
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  right? Are you going to cut this? Hear something
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  out, you know, in the residential world? Yes,
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  in the residential world. And did that for a
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  very long time, but I could not scale. You know,
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  I got to 20 units, 20 unit building, and I kept
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  trying to wear the cape. I can do this myself.
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  So hard. And I said, well, I can do this myself.
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  And everybody says, you know, the lenders were
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  saying, you know, go away. And so when I got
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  into this space as a mortgage broker, I said,
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  I am not gonna say that to my clients. I am going
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  to say, how can I help you? And so when I got
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  rid of all of my single family, my multis, my
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  20 unit buildings, I said, I'm going to say,
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  what can we do as a partnership to help you,
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  educate you, work alongside you, right? And that's
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  what I really do with all of my clients. So I'm
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  glad that when we found ourselves in a pickle
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  on your first deal, we were able to help you
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  find the right partners, the right product. Because
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  that's really what it is. It's finding out, what
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  is your business plan? Who are the people on
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  the team? And how can we find it? And where it
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  is? Where are you buying? Right? So not every
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  transaction is the same. Not every deal is the
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  same. And what is, how can we work together on
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  that? So. Absolutely. You know, I've, I've never
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  discounted my network. I've always believed very
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  strongly in those relationships and our first
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  deal was hard. So you've always heard the law
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  of the first deal. If you don't learn an absolute
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  crap ton on your first deal. You have done it
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  wrong. You should be learning from the beginning
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  to the end. Right. And it was it was hard. And
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  I was scared and we had to rebuild a couple of
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  different teams. And it was it was insane. It
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  was really, really insane. And I was reaching
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  out to my network and I went through so many
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  phone calls. Jason and I were like five phone
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  calls. We'll have somebody else to help us out.
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  No, it wasn't five. It wasn't 10. It wasn't even
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  15. It was called 16. And it was Agustin de Pentes.
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  And I will love him forever and ever and ever,
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  because he was the one that helped us. And he
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  said, OK. I was like, what's going on? Like,
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  I don't know. I'm losing my mind. He's like,
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  hey, do you want me to call Julianne and figure
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  out what's going on? I'm like, please. And so
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  with our permission, he called, found out what
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  was going on. He's like, look, this is OK. We're
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  going to fix this. that day by the end of the
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  day we had a loan product and we'd been working
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  for gosh what was it four weeks trying to find
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  a loan product and we couldn't find anything
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  that would work because at that point in time
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  agency debt was out of reach and it was the end
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  of the year and we were trying to close before
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  the end of the year and holy night I mean we
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  wound up closing December 17th but it was Man,
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  it was hard. So if you're out there and you're
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  like, I can't find a deal. I can't get this closed.
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  I can't do this. I can't do that. You're in the
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  same boat as everybody else. This is not easy.
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  If this was easy, everybody would be doing it.
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  Well, you know, we had a lot of things going
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  on. We were at the end of the year, right? We
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  were in COVID. So you had two things that were
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  really, really hard that were against you, right?
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  It was your first deal. That was tough. And,
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  you know, the the financials at Christmas are
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  really are hard because people make some decisions
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  that they're not going to want to pay their bills
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  in that last month. And we also we want to see
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  what the financials look like. So it can be challenging.
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  I mean, if I were to say, hey, when is the worst
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  time to close? It is that last month. What is
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  so challenging? Learn. We did it twice. Do we
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  do it? But I would tell you that those two transactions
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  were completely different. And, okay, your first
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  transaction is always the most challenging, but
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  you cannot, you can go to any education program.
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  And I completely recommend everybody get some
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  education in this, right? Find you a coach, get
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  you a coach now, today. You can't learn some
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  of this unless you're in a deal. This is not
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  in the books. So you have to go through it. So
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  some of that stuff is just stuff you have to
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  go through. And your transactions from the first
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  to the second, it was night and day. We went
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  from a bridge loan and you're rolling in your
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  rehab, you were learning completely different.
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  how that transaction is done to going into a
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  bank loan. Local lending can be very challenging.
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  We were going into a smaller, it's a small market,
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  and boy, you guys were a completely different
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  team. Even though it was the same team, you were
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  a completely different team. and it was a true
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  pleasure. I thought it wasn't a true pleasure
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  at the first, but it was amazing. I can't tell
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  you how you guys grew. Talk to me again on that
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  first team. Well, that's okay. We all, you all
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  learned. Yeah, no, and it was, it was, so on
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  the first deal, we used all of our extensions.
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  I begged for another one. We paid for like a
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  weekend. We paid $10 ,000 for a weekend more.
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  to be able to try and raise what we needed to
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  raise to get the deal done. It was rough. It
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  was we were under contract for five or six months
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  and the second one like we didn't even ask for
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  an extension on. You know the great thing is
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  you know we talk about partners and so clearly
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  you had built a relationship with the broker.
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  So that's number one. You talk about the relationship
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  with the mortgage broker is being your biggest
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  partner. But you didn't, yes, that's great and
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  wonderful, but your number one partner in this
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  that set the tone for you as a team was the broker
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  himself. John opened the door for you. Hey, we
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  have a very good relationships with many, many
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  of the brokers. And he called me up and said,
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  I want to give this team an opportunity. I really
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  like them. I really like them. I want to I want
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  this to work. And so if there's somebody in the
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  audience that is unsure about that relationship,
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  that is a key here. He made this all possible.
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  Well, and it was no, absolutely. And it was really
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  funny because we kind of lucked out. So the first
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  so Jason still had a W to we went to go and walk
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  this property. And I took the Jeep, Jason took
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  his truck, and John McGregor comes out, and he's
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  like, well, whose Jeep is this? I'm like, well,
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  ours? Because there's only so many cars in the
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  visitor spots, right? He's like, oh, do you like
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  to get dirty? And I was like, I like to off -road.
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  But it was really cool, because it turns out
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  he did, too. And you're gonna hear from lots
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  of people that are very experienced in the space
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  are gonna say, take your broker out to dinner,
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  take your broker out to drinks, take your broker
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  out to do this, do this. We went off -roading
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  with a broker and it was a lot of fun. And he
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  might've had to rescue me out of a couple of
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  different places because I got stuck when I was
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  driving. Jason did not get as stuck as I did.
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  Do not tell him that I said that. I might've
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  had to be rescue strapped out of a few different
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  places and it might've been John that helped
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  us do that. But it was, it was really cool because
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  that day we spent an entire day with him and
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  he got to know us. We got to know him. I even
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  met some people there that own dollar generals
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  and are looking to own more of them. And so I
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  connected them with John. John connected them
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  with another guy in his office. That is a triple
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  net guy that in particular does dollar generals.
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  And John was like, how do you meet these people?
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  I'm like, cause I talked to everybody. But it's,
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  it's, it's those relationships and building them.
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  And it's, it's not superficial. Lots of people
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  smile and say, hi, and you've got that superficial
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  kind of relationship. And what I really focused
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  on is what I call a more than a handshake relationship.
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  I 100 % believe that if I was in a room with
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  tons of people and John McGregor was there, he's
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  going to come over and say hi to me. And if not,
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  I'm going to go walk over to him and ask him
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  why the hell he didn't come over to say hi to
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  me. But that's the kind of relationship we have
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  because we spent time, me, him, Jason and his
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  friend. We all spent time together out on some
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  trails for an entire day where we had to help
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  one another. Jason, at one point we had the Jeep
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  and we were pulling his fender off of his wheel
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  because it had dug into his wheel. And there's
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  those kind of relationships that you build because
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  If we hadn't been there to help him, he wouldn't
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  have been able to go home. That's right. So it
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  was it was a really cool place to learn and be
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  around one another because we got to be friends
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  on a different level because we rescued each
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  other out on the trails. Right, right, right.
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  And, you know, the fact is that we also had a
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  relationship. We we actually had this the seller
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  that was our loan on the seller's property. and
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  we had the relationship with John McGregor as
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  the broker. So it would make sense for us to
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  continue the relationship. So that's, again,
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  yes, your lender, your broker is key to the relationship.
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  You wanna make sure that you have those strong
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  connection with us, right? We can help you in
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  so many ways, not just by providing the debt,
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  but also these relationships. So I would encourage
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  you to keep that, make those relationships. Again,
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  you want to have a relationship with someone
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  that you know, like and trust in every part of
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  this.