Scott: I’m excited to be here and even more excited to have our special guest, a self-proclaimed crazy person and a buddy of mine that I’ve known for years. He does an amazing job and a self-proclaimed project starter and entrepreneur, our good buddy Tim Herriage, the host of the rocking podcast, Business and BBQ. You can check it on iTunes. This guy is one of the best real estate minds in the country and he’s got his hand in the pulse. He’s always looking to do something, always looking to leverage his position and take advantage of what’s going on in the market. We’re excited to have you. For those that don’t know who you are because we’ve got quite an audience across the country of our Note Nation out there, share who you are, a little bit about your background and why it’s important to read this episode.
Tim: Thanks for having me on. To start off, I’m 40 years old. The gray hair is mainly because of my children and the stress I put myself through. I went to the Marine Corps out of high school because I come from a family that didn’t have the money or the resources to send me to college. After a few years in the Marine Corps and a lot of accelerated maturity, I got tired of making $1,810 a month and an extra $150 when we went to combat. I fell into life insurance sales straight out of the Marine Corps. I’ll never forget the first week that I got a $6,000 check because it was addicting because for the first time, my direct effort and accomplishments influenced my direct compensation. I’d never let someone else tell me what I was worth again. I put my resume out. I found a job as a construction manager for a house flipper. I did that for a year then got recruited by another house flipper then I went out on my own. I met my wife then we were the largest home investors franchise in the nation when the great recession happened. I lost millions of dollars in 2008 and 2009. I made some great decisions. I made some bad decisions. I fought our way out of that and 2010 on the way out of the recession, we started the REI Expo. That’s how you and I met. I built that to be the largest national trade show there was. I sold that off to the folks over at Think Realty. They’re doing a great job with it.
I met Blackstone through that and started B2R Finance and did $1 billion worth of loans and my W-2 was one of those things out of a movie. I quit one day because I was bored and tired of running someone else’s company. That’s a whole story in itself how I started to immediately start thinking like a W-2 person of salary and bonus after a year of that role. I started the 2020 REI Group. I made a ton of great decisions with a multiple of bad decisions and entrepreneurial decision after decision. I tried things, it didn’t work. I started a lending company that’s been sold. That was a good transaction. I started a fund management company. We’re shutting that down because I am not a good manager of other people’s money because I don’t like to answer questions, not even to my wife much less some investor that I’m making money for.
We started an insurance company. The insurance company is going well. We’re in some talks to sell that. I built a bunch of owner finance mortgages. I sold those because I had reached that ten-year curve where I’d sucked all the interest out and there were banks that would pay par for them. We were all about that. I got a bunch of rent houses. I flip houses. I wholesale houses. I used to do all those events and you start to identify yourself as the business. After doing all of this, I’m trying to recreate myself as an entrepreneur because that’s what I am. I’m definitely not a lender yet I’ve made more money in lending than anything else. I’m a real estate investor but that’s more of what I want to retire with one day. It’s not what I get up in the morning and I’m excited about. There’s nothing exciting about leaving my house, driving 45 minutes to sit with some old lady smoking in her living room. It’s only to either annoy her or get the house at such a price where I know I could have paid her more. It’s not on my deathbed, I’m not going to say, “I wish I’d bought more houses.”
I’m trying to focus more these days on having more of what I want which is eating a lot of barbecues and kicking it with my family. I’m in the home office. In 2018, I had 9,000 square feet on the 11th floor of a Dallas office tower. I’ll never forget the day I walked in. It was before Christmas of 2017. I looked around and I didn’t want to be there and neither did anyone that worked for me. I decided, I said, “Why am I doing this? I sold everything. I shut down the things that weren’t worth selling. I’m excited about podcasting because I feel like I have a lot of experience, good and bad, that I can share with people. It’s fun to create something that you think is going to be helpful to someone.