F*ck Big Banks: How This Man is Flipping the Lending System | Tim Herriage

I get goosebumps as I say this every time because I tell the team we make millionaires.

You know, when I got out of the Marine Corps, I wanted to be a cop.

I was going to be a cop, then a state trooper, then a Texas Ranger.

I feel like you would have killed that also.

I would have, but I would not be flying around the way I fly around.

That's right. That's no doubt.

But, I mean, that's what I wanted to do.

I found real estate. I got in it as a project manager.
Then I was an acquisitions guy for a home investors franchise. Then I partnered up with my partners.
Then I met my wife and then we went out on it together. And we have, you know, the Ed Milet book, the one, we have changed the course of our family with this business.
Yeah. And the fact that we get to help others do it, it makes me so happy.
And that's why we will loan to a first time investor, just like they're an experienced investor. The science of flipping family.
Fuck the big banks. Decentralized financing.
These are mottos that my next guest lives by. This man is a very dear friend of mine, but over 10 years ago years ago he brought wall street to main street and now he's reversing the whole system he helped build and bringing back that money into main street tim harridge is here with turnus what's up dude dude just glad to be here yeah this is gonna be fun so you are your mottos i call them like trigger words but fuck big banking right decentral finance decentralizing finance this is now to be fun.
So you are, your mottos, I call them like trigger words, but fuck big banking, right? Decentral finance, decentralizing finance. This is now your new mission, but you're the motherfucker that basically went out and started the whole thing.
Yeah, I'm trying to undo the problem I created. Yeah.
I mean, yeah, I get it. You know, it's part of my lesson in life has been everyone gets their money from somewhere.
And during the Great Recession, I was an active flipper and money dried up for investors. So 10 years ago, 11 years ago, I partnered with Blackstone to start a company called B2R Finance, which became Finance of America, which we took public in 2021.
And in that 11 year period, now investors don't realize. So in 08, 09, there was no Wall Street money for flippers.
Now, almost 95% of the money flippers use comes from Wall Street. Yeah.
You know, Kiavi and some of the big guys. I mean, it's all securitization.
It's all Wall Street money. And the problem is it's slow.
It's hard to predict. Dude, it's brutal to use.
They ding your credit every other week.

They, you know, appraisals take two months. And all of a sudden, you know, now an appraisal is like $900.
I don't even know how that works. That's right.
But no, I mean, we just, it started off with the concept of if I can, because I buy houses, you know, I've bought a couple thousand. if I can buy a house with pictures and comps,

why can't I make a loan on a house with pictures and comps that's right and that was kind of the entire beginning of the company and here we are 13 months later and it's working it's been fun a little background on that guys uh about 13 maybe 15 months ago uh him and i have a cocktails, jump on a private jet headed to Dallas, I believe. And he says, Colby, I need you to poke holes into this business model.
He said, tell me why this doesn't work. That's right.
Tell me why this doesn't work. And I couldn't, I couldn't think of one.
I mean, I literally was like, okay, the challenge would be is, you know, you have a rookie investor, but to your point, if you are the one running this and running the ship and you're willing to buy on pictures and comps, why can't you lend? And I'm like, bro, if you have that much confidence and there's no reason this doesn't work. And to your point, you know, I'm very still active after 18 years.
You're still active. You are still buying deals.
I called you the other day and you're like, dude, I might want to buy this damn thing, right? Like you're not, you're not a lender in the way that we think of Kiavi or we think of some of these bigger, again, institutional funds. You are on the streets, in the trenches, teaching and not just teaching, but like creating an opportunity for us, your client to be a part of something really special at Ternus.
Well, I'm like so many of the people listening to this. I mean, my wife and I still actively buy, flip, keep rentals.
She still loves short-term rentals, midterm rentals. And we just really know what it's like to be on the other side of the closing table.
And I say to my team all the time, I'm like, never forget the people behind the paper because it's easy. You know, you, you get up in your office and you're looking at the paper and you start making these decisions and you forget about the realtor, the title agent, the investor, the contractors, their acquisitions, people, their dispo people, like all the people counting on us, you know, in, in a hundred loans, we were kind of just guessing.
We probably impact two or 3,000 families between all the contractors and the supply people and the realtors and the title agents and the insurance people. And I mean, there's just a lot of people that real estate influences.
So kind of that's one of our mantras is don't forget the people behind the paper. Now, out of the gates, people are like, all right, what's the company? So let's hit it out of the head.
Ternus. And where can people go find, fill out applications? I mean, obviously, Ternus is the name of the company, but what's the easiest way for them to start the process of getting in your world? So it's kind of a funny origin story.
I don't even know if I'd come up with it yet when you and I were flying back from Austin, the name. I was reading Simon Sinek's book, Start With Why, for the second time.
And it talked about kind of everything's in threes, everything's in threes. And I thought, okay, if I want this product to sell itself from the inside out, the product has to align with the customer's kind of core reasons.
And I kind of worked on it. And I would imagine the 100 hundred thousand people that listen to this, the three things they'll all have in common is number one, they want to make money.
Number two, they want to make passive income or cashflow, say it different, whatever. Um, and then number three, they want to build a legacy or long-term wealth for their family.
Yeah. And that's really like the three most common denominators of everyone that ever gets in this business.
And anyway, that bounced around my head, bounced around my head. And I started looking for like threefold.com.
Like really just trying to align with the three core pillars that, and I wasn't available. Some other dude had it.
And then I was playing with it. So I got on chat GPT and I'm like, what's Latin for threefold? Give me a bunch of different variations.
And Ternus is actually Latin for threefold. So I go to, you know, GoDaddy.
I'm going to buy Ternus.com. Yeah.
Wasn't available. Hire the domain broker.
Cause I, now I'm sold on it. Like I, and I'm like you, like once I decide I'm going to do something, like you're going, yeah, I'm done.
I offer them three grand. They say no.
I offer like six grand. They said no.
I offer like eight grand. They said no.
I'm like, man, maybe I need to find a different name. Like, cause I don't even have a company yet.
Right. Like, um, but about a week later, the guy calls the domain broker says, give me 15 K and you can have it this week.
So broker me i grab the amex i pay for it my wife gets a text from amex your husband just spent fifteen thousand dollars at go daddy she calls me like what the fuck are you doing man like i'm like it's that new business idea she goes tim you know it's like but it's an idea so the answer is they can go to turnernus.com. I wanted a short URL that meant something.

Yeah.

And not about capital, not about finance, because that's not what we do.

Yeah.

So Ternus.com, they can get all the information.

But yeah, so Ternus is Latin for threefold because by our existence, the customer can do loans with us and make money on flips. They can buy rental property with us and build passive income and cash flow.
And then now they can actually have shared ownership in the company, which allows them to help me direct the future of finance for real estate investment. So this gives me shivers a little bit because I'm one of those people that have now ownership in Ternus.
And for all of you out there, you too can have ownership. This isn't just because he's my buddy.
Like quite literally, if you go to turnus.com, there's opportunities for anybody listening to this, watching this on Instagram to be an owner and have shares of Ternus. And I think that's cool for here's the big takeaway for me.
I'm out of control when it to the lending space i'm not the lender i can present you the deal and give you the comps and you can say yes or you can say no but i have no skin like i'm not in any level of control and i can't help you become a better lender to me by the way not you the kiavis of the world i can't help them become better lenders you are flipping that and saying colby specifically, but then the rest of you make me the best lender that could possibly be lending to you for all purposes, whether it's flipping long-term rentals, short-term, make me the best by giving me the feed act and having ownership in the company. Yeah.
So the crazy thing is, man, I get excited about this still, even though like I've been dreaming of it for over two years now. And we just now launched the crowdfunding raise that allows us to let the everyday investor own part of it.
So I got fed up a little bit. There's a ton of debt funds out there like DLP and all these other groups.
I mean, you can invest in their debt fund if you're an accredited investor. And then the

problem is you only own the loans they give to that fund. And if that fund goes belly up,

they can walk away and just form a new fund. Or they can use that fund to get where they're going

and then get rid of the fund and you have no upside, no continued interest in it.

So I was looking at it, I was like, okay, I've never done a crowdfunding before. I was like,

how can I make it where it's available to everyone? Even my customers just getting started. How can I make it available to everyone and not just Wall Street? Like I've made a lot of money with Wall Street.
Yeah. And it would be really easy to go raise 5 million from Wall Street.
I mean, I had a guy at the conference I'm down here for on Tuesday offer me $20 million worth of buying loans. We don't need money.
The entire vision is to make, so with the crowdfunding, you don't have to be accredited. I mean, you can put it on a credit card and buy shares in Ternus and it's Ternus Incorporated.
It's like the real company, right? I mean. It's the company that owns all the sub companies.

We're starting an insurance company, a servicing company. We will raise some debt funds because I've got some rich buddies that would love to drop a million bucks in and make a 10% cashflow type yield.
But for now, before I did any of that, I had to make sure it was available to the masses. Like, like I would rather have a thousand shareholders own a thousand shares than three institutions own 10% of my company and get to tell me what to do.
That's right. As many, you know, I'm constantly on the move, juggling multiple businesses, traveling and ensuring I get my morning workouts in.
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Well, this is why it's like, so you are one of my bigger lenders. And so all you who want to know where I borrow money from, you're looking at him right now, Ternus.
And so I'm not a loan officer. Yeah.
You don't want me working on your loan. My team.
that's right yeah the company the company but i'll tell you as a company you guys are some of the fastest easygoing most flexible i mean we have a couple deals right now that like

kiaVI would not have been ideal. Right.
Or I'm using KIAVI because they're known as probably one of the largest. Well, they're my target.
Right. And so but if you keep that level of flexibility, you keep that level of like.
You know, being adjustable and fluid, depending upon the asset, the borrower, the whatever, you will have more clients you will ever know that you will beat Kyavi because they are so stringent. They are so by the book.
They are so New York Wall Street money. They have a box.
If it's not in the box, even an inch, it doesn't fly with them. And you have made my life and all of your borrowers.
And I know you have a hundred something loans current. Like it's easy to work with you.
It is just as easy to work with you as it is to give, Hey, here's the property. Here's comps.
Here's pictures. Let's buy it.
And in seven days we have money type of idea. Well, and don't forget, you put it on Instagram last year.
We have a really small package. It was like the best worst compliment ever.
It's like Tim harris has a small package it's great i'm like thanks i think i guess right but by doing we don't have to securitize our loans yeah so i just have to make sure that if you don't pay me i can foreclose so my loans can be more simple and straightforward much more like a traditional hard money and And it's great like that because I already have capital partners like we will give you millions of dollars, but you're going to need to pull credit. I said, no, I don't.
I don't because my partners, Bill and Tom and I have enough money to not need Wall Street's money. But I also don't because I now have shareholders that understand that the credit, frankly, is your liquidity, the money you have in the bank.
Do you have the money to get the project started? Because I'm going to loan you all the rehab and to pay the interest. That's it.
That's your credit. And the asset is the collateral.
And having bought thousands of houses, I'm still just an asset guy. I was talking to my mentor, Jeff Tennyson.
He took Lima One from like $100 million a year to $3 billion a year. He's my CEO coach.
And I was like, we haven't brought this yesterday down here in Miami. And he was like, dude, you've got to make sure you don't lose that as you grow the company.
That's right. Like you have to keep it.
It's asset-based lending. Yeah.
It's not true to asset-based lending. And that's the difference right now, right? Like that's why I would tell everybody to go to turnist.com because if you're buying any level of asset, fix and flip, long-term hold shirt, like it is the asset.
They underwrite the asset for the asset's best potential and you lend on it if it has good potential. Well, and it's also important, and this is probably a good part to talk about, we really live, eat, breathe, and sleep our core values.
And I'm a Marine, so kind of dumb. Sometimes we need acronyms to figure shit out.
So our core values is stars. Speed, transparency, accountability, respect, and service.
And when I talk to my team about it, I've been on the other side of the table so many times, time kills deals. And if I yank you around or don't give you an answer quickly, even if the answer is no, I'm doing you a disservice.
And transparency, so many times lenders will collect that app or let you order that appraisal, and they know it's going to be hard to get done. I would rather say, dude, you need to keep looking for money, and we'll do our best to figure it out.
But, like, this is not a yes. It's a no.
Yeah. But there may be something there.
Let us go look at it. But for now, keep looking.
It's funny, 13, 14 months into it it we get so many people that just love our transparency because they're they're like they'll call you back hey real quick can you tell me if this one will work for you because we already told them no twice but they know that they can get a no from us so quick that they might as well bring us every deal and we'll just quickly tell them yes or no yeah and if and the other thing is is we say yes, funny story, your second loan you did with us. You text me on a Monday morning, nice and early.
You're on the East Coast. I'm in Central Time.
You get up at like 4 a.m. So then I think I woke up to your text at like 6 and it's like, heritage, what the fuck? Because we were supposed to close that day and apparently somewhere downstream

there was a problem uh what it was was our capital partners uh we have different pools of money that we pull from and one of the partners that was going to fund that loan was like wait a second if we fund this loan for colby it'll put us where he is over 10 percent of the money we have outstanding with you. And that's a violation of your warehouse line.
And I was like, well, shit, why didn't we catch that? Well, we didn't catch it because it was the first time it had happened. That was in April of last year.
We'd only been originating loans for two months, right? Like he hadn't had time to get to that point. But I quickly said, Hey, we fucked up.
Give me a minute. Let me figure it out.
We had to pull from our own cash to get the deal funded. Yep.
But part of that is, you know, we don't retrade people and we're going to, we're going to do what we say. We're going to hold ourselves accountable.
You have stuck to that and I will vouch for you. You have stuck to that for every deal we've done.
The ones that you say, Colby, I don't love i i see the numbers i don't love it you've stuck by me when you were right and i was not and i was like bro but look at these numbers and right and sometimes you get like oh shit the numbers did make sense but you didn't do x y and z which made it not make sense but you've stuck by me that whole one terrible deal we're talking about like you do what you say you're gonna do you kind of

wish i hadn't funded it now oh yeah i do because i wouldn't have been able to get it and i would have given up on it but i say all that is just to give you the kudos that this is who your company is is who you are is what you stand by and so that star's acronym is true for you that's speed transparency and accountability the next is respect and i talk a lot about this it's an internal core value and an external core value. I mean, and it's not this woke bullshit.
It's actually like something I super believe in. You know, you're going to get up every morning.
You're going to respect yourself. You're going to show up manic, you know, with, you're going to be shaved and your shirt's tucked in.
And that's just how we do it at Ternus. You're you know answer the phone politely you're gonna treat your teammates with respect you're not gonna allow a shitty deal into the pipeline that our then our ops team has to clean up um you're gonna respect that when justin colby buys a house there's a realtor title agent and you know oftentimes in this business a little old lady that ends up at the the title company on Friday and all everything she's ever owned is in a U-Haul.
And if we don't close, it's like the most disrespectful thing you can do in the world. And we've all gotten those calls from the little old lady.
It's a metaphor, but it actually happens. And then the last is service.
And when I say service, I get goosebumps as I say this every time, because I tell the the team we make millionaires. And, you know, when I got out of the Marine Corps, I wanted to be a cop.
I was going to be a cop, then a state trooper, then a Texas Ranger. I feel like you would have killed that also.
I would have, but I would not be flying around the way I fly around. That's right.
That's no doubt. But, I, that's what I wanted to do.
And I found real estate. I got in it as a project manager.
Then I was an acquisitions guy for a home investors franchise. Then I partnered up with my partners.
Then I met my wife and then we went out on it together. And we have, you know, the Ed Milet book, The One, we have changed the course of our family with this business.
And the fact that we get to help others do it, it makes me so happy. And that's why we will loan to a first-time investor just like they're an experienced investor.
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Visit qualityskip.com now. You know, guys, so it's funny.
I want you guys, you guys have heard me say this a bunch of times here on this podcast, but I just genuinely believe it. Tim and I have gotten increasingly close over the last three years or so because of boardroom mastermind, which is just an incredible room.
I believe it's the best in the industry. But there was a time probably 12 years, 10 years ago that Tim didn't know me.
I didn't know Tim, but I was invited to a Dallas meetup, Ria, whatever we want to call what you guys were running at running at the time right and there's this guy in a suit with no tie and you had a thousand people in the room was it the rei expo or yeah the biggest one of those was 1800 people right and you're up there and i don't know who tim harridge is but everyone's like dude the guy who runs this thing is he's the man there yeah you never told me this i'm telling you now you now. So you're in a suit, no tie.
You're up there. You're kind of giving your thing.
And I forget what you're talking about, but you had a slide deck, the whole thing. And I intentionally sat in the back because I was invited by one of my private clients who lived in Dallas.
So I would fly to my private clients once a month. I would work with them.
So we lined it up to go to this because one of the points I always make to everyone for the over a decade is the more hands you shake, the more money you make. And I said, you need to get intentional with going to every damn meetup.
I don't care if there's 10 people in the room or if there's a thousand at this Dallas expo, get in the room. And so I went with them.
Now I intentionally sat in the back because I wanted to kind of see what you guys were doing as, as a speaker myself, but it was an incredible point of like, you need to get in these rooms. You need to meet people.
You need to shake hands. Cause a decade later, here we are you on my podcast.
You didn't know this story I'm telling you, but this is a very real reason that you always want to put yourself out there because you never know when that paycheck comes, right? My first mentor in real estate said, take every meeting, even if it doesn't lead to a paycheck in your pocket right now, you never know where that meeting takes you in a decade. And it's just true because we've done a lot of deals now together.
We're now business partners together with Ternus. Like it's just a cool transition to see everyone needs to go follow Tim.
First of all, go to his social media page. He's putting a lot of effort in right now, so I'm watching it.
But go check out Ternus, but then connect with him, right? He's a real guy. He really does deals.
He's very active. And I just wanted people to hear that because it truly is.
I've made more money from people, knowing people, relationship capital than I've ever made from

direct mail, PPC, Facebook ads, et cetera. So two points on that.
Uh, one, the REI Expo started out as just, I'd, I'd been a home investors franchisee for a long time and I missed the annual convention because I just missed getting in the room with people. And this is like really pre-Facebookbook and message boards and instagram and there was just no real way to connect other than being in a room with someone back then yeah and so i started the expo as it was supposed to be just a dallas trade show and a couple people showed up they're like man you need to take this national i was like no and we had 200 the first year we had second year.
Then I agreed to take it national. We went to Baltimore, Chicago, and LA.
And by the time we got through our fourth year, we had 1800 people at the Gaylord in Dallas for our kind of January event. And man, through that, I got invited to speak at the five-star conference.
And the five-star conference, if you don't know, is a big default servicing mortgage REO conference in Dallas. And the conference organizer happened to sit in the room and he was like, hey, we would love you to come share the path of the individual investor with these corporate finance executives and all that.
I've got the picture still. I almost didn't go.
I was fish out of water. Felt like the audience was going to see right through me.
I'm just a pretender. Yeah, yeah, yeah.
I'm not a college graduate. And how am I going to talk to these Fannie Mae, Freddie Mac executives? And I have the picture.
I'm in my closet. I've got my suit and tie on.
And I'll grab my Marine Corps challenge coin. And I'm just like, you made it.
I'm like, you made the commitment. I meant to bring that coin.
I have mine. Don't worry.
Uh, I was like, you made the commitment. You will go.
I spoke afterwards, got a line of people to talk to me. One of them is this billionaire from England.
He was the founder of invitation homes. You know, the company that is the largest home owner in the world.
Uh,'s a British man, and he actually has already bought shares in Ternus. Nice.
I will buy this money for luck. Tim, good job.
But he's in line, and he's like, so we're working on a project, and we need your help. And I'm like, okay, who is we? And he pulls out his card, chairman and founder of Invitation Homes.
And you're like, got it. Yeah.
The next day I'm in his Dallas office. The next week they fly me to New York.
I'm at the Blackstone headquarters and these 20 foot mahogany walls on the 50 something floor, looking at Central Park, same building as the NFL. Rich like mahogany.
Yeah, man. Like, And you talk about, I didn't belong in that room yeah yeah and i sit down at the head of the table nick uh is his name he positions me and i'm like his puppet that day and they bring in all these analysts 20 something people sitting around the table he's okay tell him this like because he had memorized my speech and he knew exactly how I was going to help him sell the B2R idea to Blackstone.
And I'm like, okay, enough of that. Now tell him this.
And then like, okay, enough of that. Tell him this.
10 minutes into the meeting, the senior managing director guy that has like a $20 billion authority. He's like, okay, good to meet you, man.
Got to bounce. He gets up leaves.
I'm like, that's weird. I just got here.
Yeah. You flew me up, you know? And then, you know, 10 minutes later, the next senior guy, okay, man, good to meet you.
I got to bounce. All right.
I must be tanking this. 10 minutes later, Nick's like, okay, that'll do.
Let's go, Tim. And he walks me to the elevator.
I'm thinking like, maybe we'll grab lunch, talk. Elevator's closing.
He's like, okay, be in touch. And he stays on the floor and I'm going down.
I get in the car, go back to the airport, call my wife. I'm like, I'm done.
She's like, well, what did you do wrong? I don't know. Right.
A couple months later, I'm the managing director of a multi-billion dollar company. And I learned all this institutional stuff.
And I mean, I've got an office in Manhattan and apartment and it's just these rooms. When you're really there for a non-transactional purpose, if you're really just there to expand your universe and add value to people, you are one phone call.
Yeah. One handshake away from changing the entire trajectory of your life of your family i mean even my partners tom and bill at turnus we started hanging out two years ago at boardroom and we just became friends yeah so much that one night in tampa last year we're dragging back in from the casino at 4 30 in the morning and here goes casey quinn and all the hard charges out for their morning run yeah it's just like you're passing in the lobby like oh good luck buddy uh see you in a couple hours um but i didn't i never knew we'd be partners yeah i just knew we were friends and then my original founding partners uh charlie and uh, internists, I wanted to take the company in this direction of the crowdfunding.
They felt like it was too risky. We parted very amicably.
They still buy most of our loans from us. Um, they wanted to be more of a loan buyer.
I wanted to be more of an originator and crowd funder. So it worked out perfect.
Yep. Well, I made the offer to Charlie.
We're at lunch in October. And I in october i'm like hey you know what if what if i just gave you all your money back and you know he's like we take it i was like oh i thought my wife afterwards like yeah we got to come up with a couple million bucks um a couple text messages yeah tom and bill are like dude we're in we'll do the whole thing.
Next thing you know, we buy them out and it's just me, Tom and Bill, but it's a friendship that turned into business because it was never intended to be business. It wasn't transactional.
So you can get in these rooms and do it wrong. If you're walking around only thinking about what can I get from you? What's in it for me? What's in it for me? Ken talks a lot about that, right? So I tell the time every conversation that is not an enlightened person so when you talk to Tim Harridge he's a very enlightened he's not thinking what's in it for me 99% of the human race will be thinking what am I going to get out of Tim Harridge what am I going to get it out of Justin Colby right and that's how people think and it's in's kind of natural human condition at this point.

But if you go into it, even if you might be thinking it and you actually say, okay, how can I genuinely start a relationship, build a relationship with no agenda?

The agenda becomes clear down the road.

And this is why I talk a lot about giving yourself runway.

If you give yourself enough runway, Tim didn't know me 10 years ago.

I didn't know Tim.

I saw him speaking at his own event. I was forcing my client to go kind of engage in what we're talking about now um 10 years later we become very close friends now we are business partners you are my main lender and all these different synergistic you're a shareholder internist i'm a shareholder internist which is so fun to say right well i to interrupt because that is so much the idea behind Ternus.
Yeah. I do not need the money I'm going to get from the crowdfunding.
As a matter of fact, we have this thing called the Founders Club for this round of investors where they get 500 bucks off of any loan they do. So if the minimum investment's $1,000 and you do two loans, you got shares for nothing.

Essentially, yes.

I mean, literally dollar for dollar, yes. The value in this offering is going to become twofold.
One, obviously, now you have these ambassadors that are shareholders throughout the nation telling people about Ternus. But two, when we have the annual share shareholder meeting we want a community of people to tell us what we're doing wrong i don't want a community people to blow smoke up my ass or tell me that we need to focus on southwest airlines made the world's worst mistake this week um it isn't weak yeah Yeah.
Bags no longer fly free. Oof.
And now they are reorganizing their workforce in the airports. And a CEO, when explaining it on the news, he led with the word profit.
Not ideal. And the minute, if you've ever read Jim Collins' Good to Great.
That's right. The minute you start talking about profit first versus how do I serve my customer? How do I get better? What am I doing wrong? It means you're going in the wrong direction.
I would almost guarantee you Southwest Airlines out of business the next 10 years and merge with someone else. Wow.
Because now it's all about profit. And if it's all about profit and shareholder value at that point.
It's commoditized, right? And you're not actually caring about the people. And what they did so well for so long was they cared about the people.
They became very inexpensive flights with great value adds that were quick, cheap, fast flights. I used to fly them, living on the West Coast, I'd fly them all the time.
Yeah. From Dallas to Phoenix, Phoenix to Vegas, Vegas to LA.
Like, all the time. But now they're more expensive than American.
Flights are ridiculous. That's another.
I looked at a flight today to go to Tampa. $400 each way.
Not first class. Just like to Tampa.
It's a 40-minute flight. You might as well get an Uber and just work from the back and get to skip a...

You think I'm not considering it? Yeah. I'm legit

like, why don't I take a Brightline, which is a train

down here. It's a three hour to Orlando, an hour

Uber to Tampa. I'm just working the whole

time. I'm on the phone.
I can

actually use it versus the plan. Anyway, sorry.
We're

digressing, people. This is what happens with the engine.

That's the fun part

about this share offering.

It is not about

the $5 million that we're going to raise.

It is not about the valuation

Thank you. So that's the fun part about this share offering is it is not about the $5 million that we're going to raise.

It is not about the valuation that we attach to the offering. It's not about the perks.
The reason I wanted people like Bill and Tom to be my partners and not Wall Street is they get it. Tom has built a very large, almost 1,000-unit portfolio in Yuma, Arizona by himself, scrappy, over the last 15 years.
Bill and his family turned being dairy farmers into one of the most impressive business operations I've ever seen in my life. The amount that they sell bull semen for is just crazy.
I can't even say what they call that business uh the point is they buy commercial properties they buy that they're scrappy i want to be surrounded by people that get what it's like to be belly to belly at a closing table yeah not the wall street elite that only care about how can we make more profit off of each person that walks in the door. So because I don't want people to get lost on this, can you explain terms for Ternus? Just because people are like, well, dude, what does a normal loan look like? Yeah, so on our fixed flip, it's 100% financing up to 70 LTV.
Rewind that. 100% financing up to 70% of LTV of end value.
Of ARV. Yeah yeah of your ARV um it doesn't matter if you've done 10 deals or zero deals uh we charge 12 interest and we charge 2 origination and we have a $2,000 closing fee if you're in the founders club that fee is reduced to 1500 um if somebody calls and says you're not not competitive, I say, great.
Call someone else. Oftentimes they call us back because that someone else wants an appraisal and a credit score and, you know, a proctology exam and all that.
And for us, send us pictures, send us your bank statements. Would you like to close tomorrow? Yeah.
Staties. Now, if your pictures are just the exterior picture and the back picture and there's no inside pictures, we're going to have to ask for some more pictures, right? I mean, and we'll send you a link and you can do all that.
And probably the thing I'm most proud of, Justin, is we pay draws in 24 hours. It's fast.
And having been the flipper that Friday payroll sneaks up on you, it's hard. It's hard out there.
And you need to pay your people quickly because we ask people to work kind of on the cheap and fast. And so you need to pay them.
And so I'm really happy with our draw process. You fill out some form online and we text you a link.
And you can even text that link. I think you guys do it.
You text it to your general contractor down in San Antonio. They run over to the house, they take pictures.
It tells me that they were actually at the house on that date. And it gets emailed to my draw inspector in house, which is actually my brother, which is another superpower we have right now that we're trying to, you as we get to scale we have to figure out my brother jamin is uh he's probably bought 800 900 houses for me that i made every decision based off of what he told me yeah so to have him kind of in that draw department and on the front end diligence side helpful.
We're looking at hiring some other people, maybe some people that were, if you're out there, say you were an acquisitions manager somewhere, uh, and volume slowed down, we want to talk to them. If they worked at an open door Zillow, we want to talk to them, uh, because we've got to make sure we're staffed with asset guys and gals, right? People that really understand real estate.
I can figure the rest out with finance people. I just need to make sure we're making good loans on good houses in good neighborhoods.
Yeah. It's, guys, first of all, 100% lending is incredible.
Buy it right. Like, understand how to comp the property.
Understand what the actual ARV is. Just buy it right and they're going to give you a hundred percent of the money you need um they do it very fast yesterday you text me you said you need to be able to cut the check by today yeah you said hey you got to solve for this thing that my team meets literally my general manager replies hey that's on the deal and then you're like great i can't send the wire until you guys give us a thing that wire will hit today and literally you brought it up yesterday so we're talking about one day and we have i brought it up last night last night right and so that's one of the reasons justin that we're selling shares is i am insanely obsessed with technology yeah we are implementing machine learning into everything we do from even sizing or reconfiguring loan offers.
So if you're a new person and you're buying a heavy rehab and you've never done a deal and you're borrowing money from your dad to get it done, we will do that loan. No doubt.
But you're going to prepay six months of interest and we may lower your loan to 65%. Yep.
Well, we've now, for six months, we've been building and testing this automatic little robot that takes in those data points and says, and we'll give the customer a quicker answer to those, what we call exceptions. Yeah.
Right. If you're just buying a normal 322 brick house that needs paint and carpet and you have money in the bank, like- Here's the money.
Super easy. Yep.
We've got to be able to say yes to some other things. Yeah.
And we're using AI and machine learning to do it. One thing that I'm super excited about is we download all call transcripts every night and we load it into the machine learning engine.
I love that. And then my IT guy, my VP of technology has figured out a way to wait towards our top producing salespeople in those call transcripts to, because we want to, we're designing a chat bot that basically can underwrite your deals online and answer your questions.
But we want to wait towards the guy or gal that's actually getting stuff closed, not the maybe dipshit that's going to get fired. That's right.
We're using VAs for a lot of stuff. So we're just like the customer.
I mean, it's like VAs and this and that, but we're downloading their inbox every day. Like what questions are they getting asked? How are they being answered? Are there common threads? Does it point to a part in your process that needs to be fixed? If 80% of the customers ask the same question, you've got a massive problem on the front end.
Massive is not massive, but for me, it's massive because again, my core values, speed and transparency. I need to be able to tell you everything as fast as possible so you can make an educated decision for your business and your family.
So part of this fundraise, if they go to invest.turnis.com, it breaks down the use of proceeds. We're going to spend $2.5 million on funding loans.
And there's like, I don't know, half a million. You have to reference the thing on just pure technology development.
We're trying to, so fun to build something on new technology and not be stuck on old technology. So that's another reason that we decided to raise the capital when we did is to improve in every way we can as fast as possible.
Guys, if you aren't getting the gist here, Ternus is the company. Tim Harridge is the man.
There's opportunities not just to get loans that are relatively fair market, right? Like may not be the total cheapest, but is the easiest, the fastest coming from a true operator, yourself, your wife. Like guys, I don't know how else to sell what I'm saying right now.
Besides, if you're following watching this you got to trust that turnus is the company that i use and if it's good enough for me it's damn sure good enough for you right and all investments involve risk uh i've had some really good friends in the industry call like hey what do you think the projected return is i'm like i can't say that yeah like you should if you can't afford this you should just expect you shouldn't do it yeah and you should expect that you have to I think the minimum investment is like a thousand bucks. Like you should, if you can't afford this, you should just expect, you shouldn't do it.
Yeah. And you should expect that the minimum investment's like a thousand bucks.
Uh, if you can't afford to lose that thousand dollars, don't buy, don't invest. Yeah.
Uh, but if you want to be supportive of a company that is insanely obsessed in the customer experience, uh, you should definitely check us out. Yeah.
I think everyone understands who always wins in every transaction the lender the lender the bank right i mean and you and i were just talking about this off camera i i don't want to go be a bank but if i can just cut a check to turn us and own shares and be your partner in that i'm effectively getting the win I want without having to go build what you are building. And that's what everyone wants.
They don't want to do the work. They don't want to have the labor.
They want the baby. And I just want the damn baby, Tim.
And so if you guys are out there, I don't want that. I mean, either.
But if you don't want the labor of like building a lending business and knowing that that's a great space, because it is, right? And getting 10, 12, 15 percent and great. But if you don't want the labor of doing what Tim has to do, then take a strategy like me, like be an investor, right? Get shares because now I can just have the baby with the payoff and not have to go through the labor.
Well, Google has an it says no one knows everything and everyone knows something and probably the most thing the thing i'm most excited about is the first shareholder meeting that's going to be in september where we bring together you know we do it somewhere really cool yeah i already got it planned uh you know you bring together 500 a thousand people that have all invested in the successful outcome of something. And the board and I are just super excited about bringing them together and hearing them and doing little focus groups, doing surveys.
I don't want to just have people invest. I want people to hold us

accountable and be a part of the next evolution of financing for investors. Like I said, 10 years ago, these DSCR loans, we, B2R Finance, I ran the sales and marketing team there.
we originated the first ever DSCR loan almost 10 years ago. It was in April.
It may have been March, actually. It may have been exactly 10 years ago.
Until that, it was only DSCR portfolio at B2R. And I went to the board at Blackstone.
I said, look, 89% of the people that call us, even though our website straight up says, don't call unless you have five freaking houses. 89% of the people that call say, I only have one.
Can you help me? I can't get money anywhere. And so Blackstone's like, fine, you can do $10 million worth of single asset loans.
Uh, I'm a nerd. I'm a finance nerd now, uh, in the securitizations, it's still called the SLP, which means, which we came up with on the fly.
It means single loan product. There you go.
Because we had the entrepreneurial loan product, which was the five-house portfolio. And I had to call it something for the sales team.
I was like, Brendan, what are we going to call it? He's my VP of sales at the time. He goes, SLP.
I was like, there you go. It's still called that in the securitization documents.
It's kind of funny. But yeah, man, Brian Partridge, who you've met uh was kind of our number one sales guy b2r back then he sold the first couple dozen of them and we sold out in like three days and you're like oh that's something yeah and so we do dscr as well long-term rental loans that is not a turnless product yet um that is just a it's a since those have to be sold to insurance companies or hedge funds or whatever, because nobody has money to tie up for 30 years like that, that's still conforming to kind of the pain of normal.
You know, you got to have credit and appraisal and all that, but you know, we're closing them in two weeks and that's kind of unheard of, but we're doing that because my because my team is just, I mean, the reason speed is the first letter in stars and not the last is not only does time kill deals, but time will get you deals. So like today is the 20th of March.
No way most lenders could close a DSCR by March 31st. No way.
No way. We could.
How? Because we would be really transparent with you up front. We'd say, listen, we can do it.
I need all of your bank statements today. I need your insurance today.
I need you to pay for the appraisal today. And you need to make call and follow up with the appraiser tomorrow and make sure the report is done tomorrow.
Tomorrow's a Friday. Then I'd have it in by Monday and I'd have full seven days.
Once I have the appraisal, the credit report, the lease, the bank statements, I can get you into underwriting. Underwriting can clear in 48 hours.
It can be done. The problem is most of our customers, we areized that's and slow because we like to bitch about the lenders not bitch about ourselves that's hard about us yesterday and i'm saying we because i'm one of them that i like i mean i bitch about lenders too that's right uh so yeah i mean we are radically obsessed with changing the way business is done and eventually we'll have our own dscr product uh i mean i see a world where we can do a dscr product without credit i mean have we done dscr through you yet i think i think we have one yeah i don't know any i didn't force you to do in seven days it's probably the point is it's not ideal but we close them in two weeks all the time it's um guys i want to see you guys watching this and listening to this at the sharehold meeting in September.
That's what I want. Because I want you and me to be able to help this man create a product that is needed in this space.
Because it doesn't exist. What you've done at Ternus and what you're building and the direction you're going with your thesis is a product that doesn't currently exist.
That makes my life, your life investor and your guys life as an investor way easier faster and smoother so my encouragement find turnus go to the website but also i want you guys to to join me in helping this man on the journeys on and we can do that as shareholders that's how we make an actual dent in how lending is done moving forward.

We'll take it back. And so I appreciate you joining me too today.
And we have a long journey,

but it's going to be fun. Man, I appreciate you having me.
Yeah, man. All right.
If this was

pretty cool and you think there's two people that need to know more about Ternus, hard money lending,

the space we're in, or just need money, then make sure you share this with those two friends

and we'll see you on the next episode. Peace.