What Investors Need to Know About Loans For Buying Property

25 Oct
What Investors Need to Know About Loans For Buying Property

What Investors Need to Know About Loans For Buying Property

Can you use a line of credit to cover the down payment for an investment property? In my interview with Property Insurance Agent Aaron Trevino, I cover the scenarios where this is possible. I also cover the types of loans available for real estate investors and the red flags to keep an eye out when working with a hard money lender. For tips on how to succeed in real estate investing, join Aaron’s Facebook Group The Real Estate Investment Network.

Transcription

Aaron Trevino:

What’s going on everybody? Welcome back to our Texas Real Estate and Construction Channel. I am here in Houston and we have Chris Delon from Seattle, Washington. How you doing today, Chris?

Kris de Leon:

Pretty good. How about yourself, Aaron? Thanks for having you over.

Aaron Trevino:

Absolutely. I, I’m doing well. I enjoyed connecting with you. I enjoyed our conversation leading up to this and it’s a pleasure to have you on the show today.

Kris de Leon:

Yeah, definitely. And I’m excited to be here.

Aaron Trevino:

Absolutely all. So Chris is very experienced on the lending part of the business. People that I’ve been talking to, not only down here in Houston, other parts of the state but just really in general. I think there’s a lot of people that are interested. Obviously the brokerage part is nice, that’s kind of the glitz and the glamor, but oftentimes people forget about the money that that’s supplied and made those projects happen. So today we’re bringing Chris on, he’s gonna share a bit about his experience with lending from the business loan side, the real estate investing side. And I think it’s gonna be a real great show,

Kris de Leon:

<affirmative>. Yeah, definitely. I’m excited to talk about this topic with your audience.

Aaron Trevino:

Sure thing, Chris. So I guess we spoke about how we’re gonna talk about lending, but for those of us who aren’t too familiar with, would you introduce yourself please?

Kris de Leon:

Sure. I can give you a little bit of background. So my name is Chris Delion. I’m from Seattle. I’m a funding consultant and I’m the founder and owner of Velocity Lending Solutions. We’re a brokerage that provides funding to both small business owners and real estate investors as well.

Aaron Trevino:

Okay. Absolutely.

Kris de Leon:

Yeah,

Aaron Trevino:

It’s definitely needed. It just kind of seems like there, there’s so many people looking to break it into the industry and there’s a lot of neat financing things that maybe someone for starting out wouldn’t know. And I’m curious about your background as well, maybe growing up, did you always anticipate being in this line of work or how did you get into this part of the business?

Kris de Leon:

Oh, not at all. A lot of business owners, I fell into the lending space by accident. I knew as a kid I wanted to be an entrepreneur. I was always the type that would start new projects run for different leadership and organizations. So I knew at the core I was entrepreneur. So a couple, several years ago, I did have, after I left my day job, I did have own a previous business and at that time I had to learn how to get access to capital. Cuz at that time I didn’t have money I didn’t know where to get funds so I worked on my credit and then I started building up credit lines. And these credit lines often came at a 0% interest and they had the travel rewards and travel perks. So I was able to rack up a lot of miles. And then on Facebook I started posting, Oh, I got this free travel, this free upgrade on first class on an airline.

And then people started asking me questions about how I did it. So I talked to them about opening up credit lines and getting capital for my business. And a lot of them were business owners. So that’s how I got into this lending space. But to back up a little bit right before the pandemic, a friend had introduced me to a coaching program on how to build a business loan brokerage. And I’d had no idea there was such a thing as a business loan broker. I thought brokerages were just for mortgages. I didn’t know that there was a brokerage for business loans. So I went ahead and I signed up for that course and then I learned everything I needed to do to start a lending business. So yeah, that’s how I got into the space. It was by accident. It was never my dream to <laugh> go out and start a lending business. But yeah, actually I enjoy talking about finance and helping business owners get the capital they need in order to grow their business expand hire people by equipment and so forth.

Aaron Trevino:

Absolutely. Chris and I love those sorts of stories where you just fall into it or just like you said, you get into it by accident. And I think it’s interesting because it kind of offers a different perspective versus someone that’s they’ve known their entire life. So I find that so neat how you’re able to play both sides of the business loan and also catering to real estate investors,

Kris de Leon:

<affirmative>. Yeah, definitely. And then how I got into real estate, again, that’s my accident because I knew nothing about real estate when I started as a loan broker. But when one of the things we learned in generating leads was doing Facebook advertising. So I was pretty much advertising and targeting startup businesses in the earlier parts of my loan brokerage business. And I started getting a leads from real estate investors who were asking if I do fix and flip loans. And at that time I had no idea what a fix and flip is. What an ltv, what an arv. So I remember I was really intimidated because I didn’t know any of that terminology. But hey I just started seeing this pattern of leads coming in, wanting to do fix and flip loans. So I decided to reach out to people in my business loan broker network to see who does real estate funding.

And then I partnered with a couple of other brokers who do primarily real estate loans for fix and clips. So once I partnered with them, that’s when I started learning about hard money lending dscr loans, alternative lending as well. So it opened up a whole new world and I didn’t realize how big this whole real estate investing market is. It’s huge. So I decided to learn about it learn about what real estate investor’s goals are the types of real estate investing available and the types of funding available as well. So that’s how I got into the space. And then once I started getting more comfortable with real estate financing, then I started branching off on my own to add real estate loans to my portfolio and work with direct lenders themselves to get my investors at capital to buy their investment properties.

Aaron Trevino:

Absolutely. And kind of named a few of the products there that you talked about the fix and flip product, maybe dscr. And I’m curious as well, it can seem very daunting maybe for the first time you’re about to do your first deal <affirmative> or maybe you’re just an investor and you have a deal that you’ve never really seen before and you need a loan for it. How should a person’s start educating themselves to know that they’re in a good position to get these sorts of loans?

Kris de Leon:

<affirmative>? Yeah, definitely. I would always recommend, especially when starting a new venture, is always find a mentor who’s experience in this space that you can learn from. So that way you’re getting guidance throughout the whole process. So that would be the first thing. And then the second thing we do have financing through our lenders. For first time investors, the main thing they’ll look at is a credit score of six 80 or higher. So that would be the next thing. And then the other thing lenders look for is your liquidity. So just making sure you have enough cash reserves to cover your down payment closing fees and having enough in reserves to cover your first few months of interest only payments. So that’s what I would recommend to someone who’s starting off their real estate investing career is making sure they have a mentor that can guide them through the process and help them analyze deals, whether it’s worth pursuing or not, and getting to their credit score above a six 80. And then just having enough liquidity to cover the down payment fees and interest only payments. And a good benchmark is about, we have an idea how much loan you wanna take out. You wanna have about 30% of that amount in cash reserves.

Aaron Trevino:

Absolutely. Now that, that’s definitely a good rule of thumb. And I’m curious as well, is that a lot of times you see it on the internet, maybe investors are talking about it and they’ll ask something about, do you have 100% financing? Could you kind of explain maybe what they’re talking about there and if most lenders would even offer that?

Kris de Leon:

Yeah, so basically with 100% financing that’s basically the lever. The lender is covering the entire purchase price and the rehab in most cases, there are hard many lenders that will fund up to 80 to 90% of the purchase price and up to a hundred percent of the rehab. There are lenders out there, some legitimate ones, A lot of them can be scabs. But there are a couple of legitimate lenders. One lender I would work with in particular that can cover a hundred percent of the purchase price. But there are some caveats. So first of all, the maximum loan they can fund is 70% of the after repair value. So if the total loan loan costs where you’re adding the purchase price and the rehab is under 70% of arv, then that’s the situation where they can do a hundred percent financing. But keep in mind again, that there’s a stringent requirements because it is a higher risk loan for the lender, the interest rates tend to be higher as well as the origination points.

And then the loan term is usually pretty short. I would say with the one lender I work with, they do six month terms. So if you are gonna take this a hundred percent loan, you better make sure that you can exit meaning that you sell the property, you completed the renovations and you sell the property or refinance it into a longer term in under six months. Cuz otherwise you’re stuck with the balloon payment. There’s a risk of going into default if you don’t pay that loan back within six months. There are some options to extend it, but they come also with high fees. So that’s something to consider when you’re hearing that a hundred percent financing. But there’s other things that you can consider as well because again, this hundred percent financing is riskier, is risky to the lenders. So they would have to make it up another way with in terms of a higher fee or higher interest or shorter terms.

Aaron Trevino:

Sure. No, that’s great insight there as well. And one thing that you touched on there was also the terms. So maybe one minor concern or issue an investor could have would say, Hey Chris, I’m doing a rehab, it’s gonna take me three months. Why do you have me on a 12 note? Could you maybe explain why an investor, even though they have a short rehab, they would maybe have a long term note.

Kris de Leon:

A longer term is just to be on the safer side, especially if you’re a newer investors. Cuz some might say who’ve never done rehab before and then they would have a contractor tell them it’s three months. But in reality there’s a lot of delays and unforeseen circumstances that can pop up, that can push it beyond the three months. So I’ve heard a lot of investors say, Oh initially I thought it was gonna take three months, but I couldn’t finish rehab until month seven and then I couldn’t sell the property until month 10 or I just changed my mind. I decided I wanna keep it as a rental so I need to refinance. And the refinancing process can take at least four weeks, so that adds another month. So it is the buffer, but if you are an experienced investor and you’ve done 20 fixing flips under your belt in the last three years, then in that case, yeah, go for the six months if you wanna have either the hundred percent financing or a lower down payment on closing.

Aaron Trevino:

And that’s some great insight there. I had to ask because it always kind of seems like that’s a concern. It doesn’t make sense the time periods, but no, that’s the next explanation.

Kris de Leon:

Yeah. Another thing is the loan term could be 12 months, but most hard money lenders do a no prepayment penalty. So if you end up paying selling the property in six months, you don’t have to pay for months seven to 12.

Aaron Trevino:

Absolutely. Absolutely. No, and that’s definitely nice too. I know that that’s lender to lender. Some lenders will have the team <affirmative> seeing that others might not

Kris de Leon:

<affirmative>. Correct.

Aaron Trevino:

And that’s some great insight there. And I’m curious as well, what do you think is one of the most important things when you’re working with a lender? What to look for? What makes a good lender to a real estate investor?

Kris de Leon:

Yeah, definitely is how fast they communicate with you, how fast they can get back to you in terms of your questions. Also being very clear with the requirements disclosing all fees up front those are important things to consider. Also making sure that the lender especially the one that’s funding your deal, has good reviews or they’ve been recommended by somebody in your network. Cause even for me as a broker, I still have to vet my lenders to make sure that I feel comfortable introducing their services to my clients. So I follow the same process where I would ask around for recommendations. I look for their online reviews and so forth. So yeah, I do my same due diligence that I recommend an investor do as well when they’re working with a hard money lender.

Aaron Trevino:

And I guess the reason I ask that I always find it interesting and curious is, I think this is maybe a few months ago was on Facebook. I was maybe in a real estate group and there was someone saying, Hey, there’s some fly by night guy who claims he’s lending money. And it ended up being some sort of scam. So I know people can be on guard about that as well.

Kris de Leon:

<affirmative>. Yeah. And the big red flag I always tell people is if they ask for upfront fees, run and away from them. Cause they’re most likely gonna scam you. Fees are supposed to be paid upon closing. And usually if you need to pay something before closing, it’s to a third party appraiser. But other than that the fees are paid the are closing. And typically the hard money lender would pay the title company and then you pay your down payment to the title company. So it’s not like you’re sending your own personal funds to this lender so they can’t scam you. And then I always tell my clients that, Hey, I don’t even get paid until you get your money. So <laugh>, there’s no risk. There is more on me <laugh> that the deal doesn’t go through <laugh>.

Aaron Trevino:

Yeah, and I find that interesting as well is that a lot of times maybe people have a negative connotation or a negative viewpoint of lending, they kind of see maybe the lender is an enemy, but in a sense, you know, guys are in the same boat and when you have success and as an investor, they’re gonna have success as your lender.

Kris de Leon:

Yeah, exactly. So it works both ways. And of course the lender has to do their due diligence and the borrower as well to make sure they fit all of the lending parameters that are given. So yeah, it works both ways. But yeah, I can get it. That’s one of the biggest hurdles I have to overcome when I approach people. They automatically have their guard up thinking that I’m a scammer <laugh>. So it takes a while to build that relationship with people <laugh>. So.

Aaron Trevino:

Sure, of course. And I can relate to that a bit because my background’s actually in the construction lending side of the business, <affirmative>, I guess I’m familiar with that about why the points interest do I need these sorts of documents. But there’s always a reason behind it and it’s to ensure that the deal goes through and is good for all parties involved.

Kris de Leon:

<affirmative> and I get that a lot too, especially from newer investors are like, Why do I need to pay to get money? But first of all, there’s a whole, there’s payroll, these lenders have to pay their team for processing. There’s other costs of doing business as well, <laugh>. So sometimes you have to remind them. That’s why there’s an origination fee as well because it’s not free to do all of that underwriting <laugh>.

Aaron Trevino:

Yeah, and I always alluded to that as well, hey, it costs money to keep the lights on so

Kris de Leon:

Mm-hmm <affirmative>. Exactly. The lenders gotta pay their bills too, so that’s why there’s a fee <laugh>.

Aaron Trevino:

Yeah, absolutely. And I know that you explained a bit about the services you offer, a bit about the fix and flip the business loans. Could you maybe talk also about what makes real estate professionals want to work with you in particular as opposed to maybe other lenders?

Kris de Leon:

Yeah, definitely. When I work with real estate and real estate professionals, I spend time understanding what their goals are and what’s important to them when funding the deal. Cuz I don’t just send them quotes randomly, I actually customize it. So for I’ll give you an example. For example, like a lender, I have a borrower that they know they’re gonna finish renovations in two months and sell it by month six then I know this lender can do a hundred percent financing at this rate and this is gonna be your cash that you need to bring to the table upon closing. Whereas if I have another borrower that’s gonna take more than six months to do it, I wouldn’t recommend this a hundred percent lender. I’d recommend another lender that has a lower interest rate. It may require a higher down payment but at least this one can do it in 12 months and it’s an interest only, no prepayment penalty.

So when they work with me, they tell me exactly what’s important, whether they want less cash out of pocket but don’t mind paying a higher interest or some don’t mind paying a lower interest because they need the loan term for 12 months, but willing to make a slightly higher down payment to get the deal done. Other real estate investors are like, I don’t care about the interest rate. I need to close in seven a week. So I know a lender in my network that can do it in seven business days, sometimes as fast as five. But I don’t tell them or promise anything. So I know exactly which lender to go to based on what’s important to them. Because if they were to do this on their own, it’s gonna take a lot of time vetting all the lenders and knowing all the different lending criteria. And to be frank, they’re better off spending time finding deals and generating leads instead of vetting all of the different vendors, which I already can do for them. So that’s one value that I bring to my real estate investors is that I can present to them a custom funding offer based on what’s important to them and their current situation.

Aaron Trevino:

No, and that’s a great distinction as well, is it to a point maybe, sure you can shop the market but if you’re working with someone like yourself as an investor, you don’t want to have to go through every lender with a fine tooth comb, maybe have someone with that expertise that can help along the way

Kris de Leon:

<affirmative>. Exactly. Cuz their time should be spent on making money <laugh>.

Aaron Trevino:

Yeah, absolutely. And that’s definitely well said there. And one thing I’m curious about as well, ipo, I was talking to a colleague in Dallas maybe a few weeks ago and he was talking to me about how, I forgot exactly what he was saying, but it was an issue with showing a lender that he had experience. So I guess a bit of background on him, <affirmative> he’s had experiences kind of being part of I guess a joint venture or a JV agreement with a more senior investor. But I guess on paper he wasn’t there was something, I guess on paper they weren’t part of the same entity or it was something along those lines to where he couldn’t show a lender that he was part of a transaction. So on paper it looked like he was a complete rookie and his pricing that. So could you maybe explain how an investor who wants to do more deals, maybe they wanna flip, maybe they want to build and develop later on. How can they build that rapport with a lender to be able to get more favorable pricing in the future?

Kris de Leon:

Yeah, definitely. So when they’re considering experience, what lenders look at is were you an owner, did you own at least 20% shares of the LLC that was on the title? If not, unfortunately they’re not gonna count it as experience. Even though you’ve helped a senior advisor on the deal or you were mentored by someone, they’re not gonna count that as experience. What they can do is if they wanna be the main person running the deal, they can find a partner who does have experience and then give that partner at least 20% ownership of your llc. So that way you can count the partner’s experience as well so that way you can get better rates in terms so you, you’ll get the rates for an experienced LLC as opposed to a new investor. And that also works the same way with credit. Let’s say you’re a new investor, you don’t have the six 80 credit score but you have a partner that does, you can bring them into the llc, have them at least the 20% shareholder that many lenders would consider in order to leverage their credit to get you better terms. So that’s the way to go about it. Unfortunately, there’s no magic solution if you have zero experience even though you’ve done a lot of deals in the past you still have to have your name on the, or at least prove that you were a shareholder of the LLC that held the title of that property to count as experience.

Aaron Trevino:

Absolutely. What well said about that 20%. And I’m curious as well, could you maybe talk a bit about, I know we kind of touched on it before, but maybe something surprising about this industry, maybe some of the most surprising things that you’ve seen in the lending business?

Kris de Leon:

Yeah, I remembered when I was first starting off when I was advertising on Facebook, I would speak with a business owner gathered their documents and one of the documents I gather is their bank statements and then when I submit them to underwriting they would come back as fraud as altered bank statements. So I was surprised business owners would think they can get away with alternating, maybe I was a bit naive at the time cuz I was still new in the business, but it just surprised me how business owners can think they can alter their bank statements and get away with it. Especially with sophisticated technology nowadays, <laugh>. So that’s the one thing I had to <laugh> surprised me big time, like business owners are altering other bank statements,

Aaron Trevino:

<laugh>, and I guess the big message is if y’all listening out there, don’t try it. Yeah, it’s not gonna work.

Kris de Leon:

Don’t even try. Don’t be dishonest cuz you will get caught eventually <laugh>. So

Aaron Trevino:

That’s pretty funny. And I’m curious as well, I know we talked a bit about the real estate investing side and a lot of those people who are flipping homes or building, they’re developing, whether it be in the state of Texas, Washington, across the state, wherever they’re also business owners. Could you talk a bit about leveraging your business with those business loans?

Kris de Leon:

Yeah, definitely. So I get a lot of visits. So a lot of the real estate investors that have businesses they would need capital to buy equipment to invest in marketing, higher payroll. So I would help them secure access to those funding options. So for example I have a construction company in Texas I recently funded. So I help them get a business line of credit and because they needed to use the line of credit to hire some contractor or subcontractors and have capital to pay them. So basically the way the business funding works is our two most popular options are the working capital and business line of credit. The working capital, you get a lump sum up front versus a line of credit, you get approved for a certain credit limit and you can draw upon that credit line at any time and have the funds deposited into your business checking account. So basically the amount that a business would normally qualify for is between 10 to 15% of their annual gross sales or roughly their average monthly revenue. So for example, if a business is making a million dollars a year, they can expect their approval amount to be around a hundred to 150,000.

Aaron Trevino:

Sure, definitely. Well said. Is it a lot of times, again, you don’t really think about the financing aspect of it at times, you know, see this big beautiful home, a lot of times you just look at the big beautiful home, you don’t think about the money that was behind that to make it happen.

Kris de Leon:

<affirmative>. Exactly. And then sometimes I have real estate investors that ask if they can use their line of credit to cover the down payment. And I said it depends. So this is another example of working with me because I know which lenders are okay. Cause lar, a lot of hard money lenders do not allow you to use borrowed funds for the down payment. I do have a lender that will okay with that, but they only fund in certain states. So that’s something I can advise my client, Hey, what state are you buying your property? And oh, North Carolina, Oh I have a lender that’s okay with it to use the bar, use your business line of credit to cover the down payment. But if you’re to do it in a state like Florida, unfortunately I don’t have an option for that where I have a lender that’s okay with the borrowed funds. So it really depends as well what you’re using the money for. And this is why working with someone like me, I can advise them on, oh yeah, we have a lender that’s okay with this. So go ahead use your line of credit to cover the down payment.

Aaron Trevino:

Sure, absolutely. And maybe someone’s a bit new to this, maybe they have some cash on hand, they’re looking to start that construction company or start that business. Could you describe what a line of credit is in this context?

Kris de Leon:

So a business line of credit is basically you get approved for a credit a certain credit limit. So let’s say that the lender approves you for a business line of credit with up to for a hundred thousand dollars. So at any time you can withdraw from that line of credit. So let’s say example, I need 50,000 to buy equipment so I can draw 50,000 from that line of credit, have that 50,000 deposited into my business checking account, which I can then use to purchase that equipment and I still have a 50 K leftover that I can use for other expenses. So let’s say I need to hire staff and I need to pay them 20,000, so I have 50,000 left from that line of credit, I draw 20,000 from it. Now I still have $30,000 left that I can use and I would have to pay back that other 70,000 in order to replenish that line of credit.

Aaron Trevino:

Absolutely, that definitely makes a lot of sense. And that was a great example you offered about working with that construction company here in Texas, right?

Kris de Leon:

<affirmative>? Yes. That we were able to get them funding for that, their project.

Aaron Trevino:

Absolutely, no, very good. And I’m curious as well, could you also explain a bit about I that a lot of it is to keep the lights on, but maybe some of the other fees that are also involved in a real estate transaction, maybe taxes or insurance or other sorts of fees that people would have to pay at closing or how would that work?

Kris de Leon:

Yeah, so it depends upon the lender. So if you’re getting one of the longer 30 year fixed loans, a lot of lenders would have what’s called an impound account. So what they would do is they would ask you to escrow your taxes and interest for up to a year that they hold onto that. So that’s something that you may have to pay. So let’s say your taxes and insurance is $2,000 over 12 months, then you would have to escrow that 2000 and then your taxes and interests are paid from that account. So that’s something that sometimes surprises a lot of borrowers that they have to put that into escrow. But right now it’s required by a lot of our lenders. Other fees that they typically pay, there’s a legal fee lenders call it by different names. Some call it closing costs and then they would just put one, a line item, closing cost and then one amount which covers everything. And then I have other lenders that itemize every single thing. So I have documentation fee legal fee, closing fee. The only time fee that might not be listed that most likely won’t be listed on that when you get a funding quote from the lender is the appraisal fee. And that varies, but typically you expect it to be around a few hundred dollars as well and that’s the one that you would have to pay to the third party directly.

Aaron Trevino:

Sure, sure. That makes sense. I guess it sounds like the appraisal will be paid separately or paid to the third party you said, right? Yeah,

Kris de Leon:

Correct. Yeah. So on the other thing, the big thing that everyone gets everyone is the origination fee as well. And on average it can be anywhere between two to four points, or at least from what I’m seeing from the lenders. So if your loan is a hundred thousand, then you’re expect the origination to be two to 4,000 but that’s not paid out of pocket. That should be deducted from your loan proceeds.

Aaron Trevino:

Okay. Absolutely. And I’m curious, I guess given that I work in the industry as well, more so on the insurance side, <affirmative>, but another line item would be insurance. Do you find that a lot of your clients will bring their own in insurance into the mix or is it more of the lender will suggest an insurance person or how would that work? On the insurance side?

Kris de Leon:

Yeah, that one I’m not quite sure on the insurance cuz usually the lender would provide, they would, when we’re generating a pricing on the loan for our clients, we ask our clients what the homeowner’s association insurance costs. And in some states they would ask for flood insurance. Flood insurance is another one that gets asked for. Yeah. So typically when we’re doing a pricing in addition to the monthly income, we ask for income on the taxes, the homeowner’s insurance, and then if there’s a homeowner’s association fee and a flood insurance fee and then that gets calculated into the debt service coverage ratio ratio.

Aaron Trevino:

Absolutely. Now well said, and I had to ask because one of my friends yesterday, he’s looking to build <affirmative> in a smaller town north of Houston and he was telling me that because of the insurance costs he’s gonna have to go back to the drawing board and see how he can make this deal work. Oh,

Kris de Leon:

Okay. Yeah. Oh okay. Interesting. Yeah. Interesting to know. But yeah, the insurance gets factored in into the pricing of your loan.

Aaron Trevino:

Sure thing, Chris. Well is there anything you haven’t said that you’d really just like to hit home for us?

Kris de Leon:

Not that I can think of. Just feel free to reach out if you have any questions or anything I can cover or I missed. But yeah, that would be the important points. I think I covered a lot of the tip I wanted to give over to your real estate investor audience. Hopefully that was enough some good information, <laugh>.

Aaron Trevino:

Yeah, no, I definitely think so. Mean, you know, went into some great detail talking about a bit about the different ratios and the appraised value and of course how much liquidity you you’d need to bring down, you said around 30% or so, right?

Kris de Leon:

Yeah, I would recommend, yeah, especially if you’re a new investor having 30% liquidity of whatev whatever the loan amount you’re gonna take out. Cause that just makes the lenders feel more comfortable that you have enough to cover down payments, fees and interest only payments as well.

Aaron Trevino:

Okay, very good. Chris I appreciate the insight. I’ve learned a lot about you, about your background, how you got into the business, and then a bit about you know, kind of giving some tips to maybe first time investors or veteran investors who are looking to refine their process as well. Maybe I’m somewhere in Texas, I’m in Washington, I’m in another part of the country. I wanna reach out and connect with you. Where can we find you?

Kris de Leon:

Yeah, definitely the easiest ways to go into my personal website, it’s chris deleon.com. K R I S D E L E O n.com. And then it will have links to my other social media channels as well as to my company Velocity Lending Solutions. And you can inquire about funding as well through that link.

Aaron Trevino:

Okay, very Chris. Very good. Chris, I know I mentioned it before, but it’s been great to get to know you a little bit and get to know the explanation you gave about the different financing terms and I think that it’ll really serve people well and I appreciate you coming on the show tonight.

Kris de Leon:

Yeah, you’re welcome. Thank you so much. I enjoyed our conversation.

Aaron Trevino:

Have a good one.

Kris de Leon:

Thanks.

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