Unveiling Real Estate Investment Strategies with Tim Herriage
Wake Up to Wealth
Deep Dive
Why is a track record important in real estate investing?
A track record is crucial because it demonstrates reliability and consistency, which cannot be bought. It’s a key factor in gaining trust from investors and partners, as it shows past success and ability to navigate challenges.
What is Tim Herriage's background in real estate?
Tim started in real estate over 20 years ago after leaving the Marine Corps. He began as a project manager for a house flipper, then moved into acquisitions and eventually owned a HomeVestors franchise. He has since been involved in various aspects of real estate, including multifamily, commercial, and lending, culminating in his current role as Founder and President of Ternus.
What is the best time to buy an investment property according to Tim Herriage?
The best time to buy an investment property is always yesterday, with today being the next best option. Waiting until tomorrow can mean missing out on opportunities.
Why did Tim Herriage shift his focus to the lending side of real estate?
Tim’s interest in lending began in 2003 when he partnered with a hard money lender. He discovered the profitability of owner financing and the power of debt as a tool for wealth accumulation, which became a significant part of his business strategy.
What is the concept of owner financing in real estate?
Owner financing involves selling a property with terms, such as a down payment and monthly payments at a set interest rate. This allows the seller to double their profit by leveraging the financing, as opposed to a traditional cash sale.
How does owner financing contribute to wealth accumulation?
Owner financing provides a steady income stream with high returns, often 10-12%, which can be more lucrative than traditional rental properties. It also allows for the asset to be paid off faster, providing a lump sum for reinvestment.
What are the challenges of owner financing?
The main challenge is that it’s a declining income stream, as the principal and interest payments decrease over time. To offset this, Tim recommends a mix of rental properties and owner financing to balance steady asset growth with high income.
How can owner finance notes be liquidated?
Owner finance notes can be used as collateral for lines of credit, sold in part or in full, or used to generate liquidity by selling future payment streams. This makes them highly liquid and a powerful tool for recycling capital.
What lessons from the Marine Corps has Tim Herriage applied to his business?
The most important lessons are adaptability and teamwork. Tim emphasizes the need to be flexible in changing markets and the value of a cohesive, results-oriented team.
What is Tim Herriage's vision for Ternus?
Ternus aims to be the people’s lender by focusing on speed, transparency, and dependability. Tim wants to disrupt the lending industry by prioritizing customer needs over Wall Street demands and using asset-based lending decisions rather than credit scores.
What does waking up to wealth mean to Tim Herriage?
Waking up to wealth means having a steady income stream that ensures you’re broke on the last day of the month but extremely rich on the first day, without needing to actively work for it.
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