Tips for Financing Your Real Estate Investments: Fix and Flip Funding

Interested in finance from an early age, Wasah Malik chose to start his own financial firm after University. His clientele ranges from individuals to small and medium sized businesses. He caters to their financing needs through a wide range of vehicles, including but not limited to business loans/lines of credit and mortgages.

In this episode we discuss what it takes to be a good lender in the real estate investing world. We discuss different loan types for new and experienced flippers as well as DSCR loans.

// DON’T FORGET TO REACH OUT TO WASAH MALIK

Website: https://aldridgewealth.com
Phone: (630) 965-5048
Email: Washa@aldridgewealth.com

// QUOTES

“There’s no giving up, there's no not working hard, it’s just not not an option.”

“If all these lenders want to hire my services as an underwriter, I should be lending money on my own because I can”

“You know how it is. You tell everybody you have an idea and everybody will say “You can’t do it”. You can’t let that stop you. Just because you didn’t want to do it doesn’t mean that I cannot do it. You just have to keep plugging away and if you have the right strategies you can get there”

“ I feel like when you don't respect your own time, how will you manage anything?”

“The whole point of making money is to become free from all of these stresses. You can do whatever you want, whatever you want, that's the idea.”

“You don't need to know every answer to every problem as long as you know who to call if you don't know the answer” -Tim

“Before you launch anything you have to do product development. You have to make sure that the product makes sense for the market. You need to define if there is a need for it.”

“The very first thing a lender looks at in a deal is where are the gaps here. Where can things go wrong? How can I cover this if things do go wrong? That is the very first question we ask.”

“If you are rich you want more money. If you are poor you need money.“

// CONCEPTS

•Wasah Started off as a mortgage broker. He started his own fund with 10 million dollars at the age of 28.
• Wasah is focused on getting the underwriting part of his business assigned to staff so he can focus on the big picture and work on growing his business.
• His favorite part of the job is that he loves meeting people. He does a lot of speaking engagement and he loves talking with business owners and finding ways to support them.
• Wasah is a walking talking billboard. If he goes to the grocery store he talks to everybody he can. It’s a great conversation starter. Do you need any money?
• If you are a well experienced investor they can do 100% financing and 100% financing on the repairs as well.
• Alldridge wealth will loan money to people that have little to no experience.
• They lend on the long term suitability of the property itself and that is it. Debt service ratio has to be 1.1 at least and we will look at your credit score.
• Debt service ratio is easy to calculate. You take the monthly rental amount and you divide it by your expenses. Property expenses will be the mortgage payment, property taxes, and insurance.
• Wasah plans his day in 15 minute periods. He believes if you are not early you are late. There are only 24 hours in a day. You have to sleep, you have to eat, you have to do your routine. If you only have 8-10 hours to work you better be efficient with your time.
• You have to be real about your vision. I know we get emotionally attached to our ideas sometimes. You need to be able to identify when something is not working. It is important to take a step back every month or two and make sure everything is working.

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// TIME STAMPS ⏲

0:00 - Introduction.
0:38 - Craziest Real Estate story or experience!
7:57 - Real Estate Expectation vs. Reality.
9:45 - What was your mindset you had to cause you to change business paths?
12:00 - What do you do as a lender and how do you do it?
12:59 - How did you know what types of loans you would do?
14:44 - How did you come to a reasonable amount of risk that you’d take?
17:15 - Do you enjoy some problems in your job?
19:49 - What kind of marketing or networking strategies do you use?
22:27 - How did Matt and Tim get into Real Estate?
28:17 - How do you help inexperienced people who fix and flip?
29:45 - Long term rental financing.
35:03 - What tip, tool, or strategy was most effective in your life?
41:01 - Who was your favorite mentor?
43:06 - Matt, Tim, and Wasah are cooking and talking about hobbies!
48:30 - What are you building now?
54:29 - How to get a hold of Wasah!
55:41 - ENDING

// TAGS

fix and flip leads wholesale leads hard money lending process hard money lenders flipping houses