Brandon’s fund bought a multifamily complex with a simple plan to increase occupancy, add value, then sell. ​ But then came the underperformance, insurance cost increases, and the interest rate hikes that blew the projections. ​ And we’re hearing lots of opinions about Brandon’s investing style but I want to focus on the investors, the limited partners (LPs), on these deals. ​ One investor, Tyler Wehrung, made a Youtube video about his investment dropping to zero. ​ He said he trusted Brandon and he invested based on the PERSON. ​ And THAT is the mistake most LPs and private money lenders make. ​ They see a seasoned investor, a public figure, a track record, and they fund the name NOT the deal. ​ ​ Hard money and DSCR lenders don't work that way for a reason. ​ They look at both: - The investor — history, credibility, execution - The deal — exit strategies, comparables, cap rates ​ They get the full picture before a single dollar moves. ​ That second layer is what too many passive investors skip entirely. And it’s what is being glossed over in this debacle. ​ ​ I'm not the one with $75K in a fund but I have lent money into deals that didn't go the way I expected. ​ And when I looked back at why- I hadn't done enough due diligence on the investor or on how my investment was actually secured. ​ I trusted the person and skipped the homework on the deal itself. ​ ​ Here's what changes this- ​ We can remind ourselves that *nothing* is guaranteed and investing comes with risk, and that you can be frustrated at how a deal turned out *and* take responsibility for what you didn't verify before you wired the money. ​ ​ Before your next deal ask for the exit strategy in writing. ​ Ask how your investment is secured. ​ Ask what happens if the projections miss. ​ Those aren't rude questions but are the due diligence you owe yourself. ​ And you are not a victim if you skipped the homework.

Your delays did. You have a balloon coming due. Or a seller who was tough to negotiate with. But here's what I've watched happen on more deals than I can count: The lender doesn't miss the deadline. The borrower does. My team will ask for documents upfront and then we get: - Bank statements sitting unsent for 4 days - A GC who can't find his license - A HUD that took a week to track down And just like that, 7-14 days GONE. And when the appraisal comes in low with no time left to contest it, you come to the closing table with more money out of pocket. Because the loan amount dropped. But the purchase price didn't. That's not the lender's fault. Because we don't control the timeline. You do. We go as fast as you give us what we need. I'm not saying this to point fingers. I just want to be part of your team — not the person you're frustrated with at the finish line. We know exactly what we need to get this done by your deadline. That's why you're working with us. I know you're juggling more than just this deal. And the seller isn't easy to deal with. And the timeline isn't either. But know that the biggest step to hit that deadline will come from you.

A lot of people think once they hand over their paperwork to a lender, their job is done. It's not. ​ Closing a deal is teamwork. Your job doesn't stop at the documents. ​ Here's what to watch for: 👉 Did the terms change from what you agreed to at the start? ​ 👉 Does anything in the closing docs look different? ​ 👉 Did anyone warn you about changes, or did they surprise you at the table? ​ **Four steps to stay on top of it:** 1. 1️⃣ Make a Google Drive folder for your Chris Deal 2. 2️⃣ Save your term sheet 3. 3️⃣ Ask along the way: "Are the terms still the same?" 4. 4️⃣ Read your closing docs before you sign ​ A borrower of mine signed for an adjustable rate loan WITHOUT KNOWING IT until they were sitting at the title company on closing day. ​ We caught it and fixed it in time, but that's not always how it goes. ​ Four steps, maybe 10 minutes total. ​ And most investors skip all of them. ​ Don't. be. that. investor.

I've been a little stubborn the past week and have promised myself not to post unless I can get this AI cross poster working. Suffice to say, we GOT A WORKING FIRST DRAFT!

I had a borrower come to me last week with a flip that wouldn't move. ​ $50K into rehab. Priced at $700K. Dropped it to $650K trying to get traction. ​ Meanwhile, he's bleeding hard money fees every month with no exit in sight. ​ He decided to refinance and keep the property as a rental to stop the bleeding. ​ Most flippers assume refinancing is straightforward once the rehab is done — especially if the appraisal comes in strong. ​ So they drop the price, wait for the right buyer, and plan to refi if it doesn't sell. ​ ☝️ What they DON’T know is that price drop just became the number their lender has to work with. ​ If your property is listed — or was listed in the last 6 months — a DSCR lender cannot use appraised value. They use the lowest list price on record. ​ So his math changed fast. ​ Property appraised at $700K. Loan at 75% LTV. He wanted $525K out. ​ But the lender had to base the loan on that $650K price drop. His actual loan came in at $487,500. ​ That's $37K less than he was counting on. ​ The fix: don’t drop and delist before you apply. ​ 👉 Most lenders need 6 months off market before they can ignore the list price history and go back to appraised value. ​ Know this before you cut the price. ​ If you're sitting on a flip that isn't moving and you're thinking about refinancing out, get off market first. ​ THEN start the conversation with your lender. ​ Timing this wrong is an expensive lesson. Hopefully this saves someone from learning it the hard way.