Invest Like a Pro in Oklahoma With Josh Heintz

In this episode of The Same Day Podcast, Joshua Heintz teams up with Yoni Schmidt for an in-depth masterclass on investing in Oklahoma real estate. They break down top-performing neighborhoods in Tulsa and Oklahoma City, explain the benefits of DSCR loans over traditional lending, and outline how to structure investments for asset protection. Yoni also shares practical advice on using LLCs and local insights to scale a rental portfolio.

Invest Like a Pro in Oklahoma

Josh Heintz is the Vice President of Strategic Partnerships at LendingOne, a private lending company specializing in providing financing solutions for real estate investors. With extensive experience in the real estate and financial sectors, Josh focuses on developing innovative lending products that cater to the unique needs of investors, including fix-to-rent loans, portfolio loans, and interest-only options. He works closely with clients to create tailored strategies, helping them scale their portfolios and achieve long-term investment goals.

Yonatan (Yoni) Schmidt is the Regional Vice President of Sales and Marketing at Keyrenter Property Management, which has offices in Tulsa, Oklahoma City, Wichita, and Arkansas. After working as a financial analyst at a private equity firm, he founded Tulsa Property Lad to offer clients a better way to buy, sell, manage, and invest in real estate. Yoni provides comprehensive Oklahoma real estate services and listings, supported by first-class customer service.

Here’s a glimpse of what you’ll learn:

• [3:31] Yoni Schmidt introduces Keyrenter PMC and its property management presence in Oklahoma
• [6:55] Why hyper-local expertise is essential for navigating Oklahoma’s unique real estate markets
• [8:23] Reasons Yoni avoids using other people’s money and the importance of calculated investing
• [12:33] Challenges of working with banks and the need for strong financial documentation
• [16:25] How forming an LLC protects real estate investors from liability and personal risk
• [17:55] Keyrenter’s service of setting up LLCs and acting as registered agents for clients
• [35:05] Key investment metrics Yoni uses to evaluate opportunities in Oklahoma City
• [41:38] Why Tulsa is ideal for long-term buy and hold while Oklahoma City offers core-plus stability
• [44:07] Overview of Tulsa’s rental market, including low vacancy rates and rent growth trends
• [47:48] Investment potential in East Tulsa, including blue-collar renters and Class B/C housing stock

In this episode…

Many investors overlook Oklahoma when scouting for their next property, focusing instead on flashier markets. But behind the modest headlines, Oklahoma offers strong returns, low competition, and unique growth potential. What makes this state such a compelling place for serious real estate investors?

According to Yoni Schmidt, a seasoned investor and property management expert with deep market knowledge in Tulsa and Oklahoma City, the key lies in Oklahoma’s unmatched balance of affordability, stability, and steady appreciation. He highlights that Oklahoma City is ideal for core-plus investments, while Tulsa offers enhanced yield opportunities for long-term buy-and-hold strategies. With low unemployment, rising rents, and high occupancy rates, investors can achieve solid returns with lower risk. He also emphasizes the importance of local expertise, especially in markets with rapidly shifting neighborhood dynamics, where a few streets can mean the difference between success and regret.

Resources mentioned in this episode:

• Yonatan Schmidt on LinkedIn
• Mat Zalk on LinkedIn
• Keyrenter Property Management
• Keyrenter Property Management in Tulsa | Oklahoma City | Arkansas
• Keyrenter Property Management email address: [email protected]
• Joshua Heintz on LinkedIn
• LendingOne
• Scott Wolf on LinkedIn
• George Kaiser Family Foundation

Quotable Moments

• “Our core focus is to help our clients build wealth by removing the headache of property management.”
• “Oklahoma is a hidden gem. I would say that many people overlook, and it’s easy to overlook.”
• “I’ve seen major lawsuits, six-figure lawsuits, you know, that have been filed against homeowners and landlords.”
• “Edmond itself is the highest household incomes in Oklahoma City…there is a great appreciation play here.”
• “Tulsa has been a long-term buy-and-hold market, and I think it still holds true today.”

Action Steps

1. Form an LLC for your investment properties: LLCs protect personal assets from liability and add professional credibility when financing deals.
2. Leverage DSCR loans instead of DTI-based financing: Focusing on property income over personal income makes it easier to scale your portfolio.
3. Invest in undervalued Oklahoma submarkets: Markets like East Tulsa and Midwest City offer strong cash flow potential with relatively low entry costs.
4. Work with a local property management expert: On-the-ground knowledge helps avoid risky neighborhoods and improves tenant retention and ROI.
5. Use interest-only loan products strategically: This increases early cash flow and flexibility, especially when targeting appreciation in developing or high-demand areas.

Sponsor for this episode…

Keyrenter Property Management:

This episode is brought to you by Keyrenter Property Management.

Keyrenter Property Management is a full-service property management company that helps clients buy, renovate, and operate real estate assets.

The team helps clients build wealth while taking the headache out of property management.

That’s why, no matter what rental you have — single-family homes, condos, townhomes, or apartments — they can give you the management solutions you need.

To learn more about their services, go to https://keyrenterpmc.com/ or send them an email at [email protected].

Episode Transcript

Intro: 00:05

Welcome to The Same Day Podcast, where we discuss driving incremental business growth and other topics related to real estate, property management and entrepreneurship. Now to the show at hand.

Joshua Heintz 00:20

All right. Well, we are extremely excited to be here with Yoni Schmidt. Yoni, thank you so much for joining me today on this, what we hope to be a fantastic webinar. How are you doing this this afternoon?

Yoni Schmidt 00:38

Doing well. Thanks, Josh, for having us and helping us put this together.

Joshua Heintz 00:42

Yeah, absolutely. Really, really excited to share this with all of your the contacts that you have. I know people are really excited about learning more about the Oklahoma market. And so we’re going to, you know, really address Oklahoma City and Tulsa today. But we’re probably going to hit on some other things that people are going to find really, really interesting.

And so super excited to get going. So we’re going to go ahead and get started. For all of you that are tuning in live or for you, those of you who may be watching on a recording later, we really think this is going to be a tremendous masterclass in how to invest like a pro in the Oklahoma market, so we’re going to go ahead and get started. Again, thank you for coming. If you’ve got any questions you know go ahead and drop them in the chat.

If we have an opportunity we certainly love to to answer those. And then today what we’re going to walk through is a couple of things. One, we’re going to review the types of lenders who is out there financing residential investment properties. Right. Who who is who is out there funding SFR deals.

We’re going to talk about a little bit about who LendingOne is. We’re going to reintroduce. Most of you are very familiar with Keyrenter, but we’re going to reintroduce Keyrenter. We’re going to talk about why some investors choose to put their properties into an entity name, versus keeping them in their own personal name. Talk about the difference between DTI and DSR loans.

We’re going to look at different investment strategies. Or what is your avatar as an investor and what type of profile you might have. And then we’re going to talk about a few loan products that LendingOne offers that if that would be of interest to you. And then we’ll end with a Q&A session. So first and foremost, want to just real briefly as as a co-host here talk a little about LendingOne.

So LendingOne is a direct private lender. We’ve been in business for this. This sheets actually a tiny bit out of date. We’ve been in business for a little bit over ten years. We’ve done thousands of loans.

We’ve got about 150 person team that’s scattered across the eastern seaboard. We’re headquartered in Boca Raton, Florida, but we have offices in Charlotte, North Carolina and New York City. But we are a nationwide lender, so pretty much anywhere where you have an investment property, we’d love to be able to help out. We do a ton of originations to both new and repeat investors. And so we’ll we’ll continue to talk a little bit more about our services as we move along.

But my name is Josh Heinz I’m the Vice President of Partnerships with LendingOne. Had the distinct honor to be able to be hosting this webinar, this informational webinar. We hope you get a lot of value out of with my good friend Yoni. And so, Yoni, I’m going to let you take it away and reintroduce people to Keyrenter. So tell us, what do you guys have going on over at Keyrenter and what have you been up to and how can you help your clients?

Yoni Schmidt 03:31

Yeah. Thanks, Josh, for kicking it over to me. Keyrenter PMC is really a part of the larger franchise of Keyrenter. As you may, you may know a larger national brand that operates in about 86 offices. We currently hold five of those markets, but today we’re only going to be discussing two, Tulsa and Oklahoma City.

And we are. We’ve been in business for roughly seven years. We’re also a team of about 110 employees, many of them boots on the ground, and many of them are also remote team members that handle a lot of the admin work. Proudly serving. As you can see, roughly 1400 owners and managing just about 3000 doors.

With with that team. Yeah. We serve you know we have offices in Oklahoma City in Film Row in Tulsa near Cherry Street offering services, as you can see, to both accidental and institutional investors serving local clients out of states and globally as well. If you have any questions, you know we’re here to help with any and all of your property management solutions. Our core focus is to help our clients build wealth by removing the headache of property management.

We are, you know, your same day property management solution tend to get back to people within 24 business hours, if not sooner. Of course, in case of emergency, a lot sooner. And, you know, our our core focus and our and our the three things I’d say that make us unique are the fact that we leverage technology in ways that other property management companies may not. We are hyper responsive and overly communicative, and we are ROI focused. We understand these are investments.

That’s why we partner with, you know, great lenders like Josh and LendingOne. And we understand that, you know, this needs to ultimately work for you.

Joshua Heintz 05:25

Yeah. And one of the things that I love about being able to do this together, Yoni, is, you know, you guys help people from all over the place. And a lot of people, when they think about their property manager, they’re thinking about just simply deferring a responsibility. But it’s so much more than that. It’s about, you know, you have a team of 100 people that are hyper focused on the markets that you operate in.

And so, you know, you as the subject matter expert for any investment property in Oklahoma, I think is one of the cool things that we’re going to be able to highlight today about, you know, what are the what are the secrets, right? What are the neighborhoods, what are the areas you really need to be focused on? And how do you invest in Oklahoma? Because I can tell you as a nationwide lender that lends in Oklahoma and in Florida and in Tennessee and in Texas and in Colorado, I can tell you, every market is unique. Every market is a living, breathing, dynamic organism.

And having somebody like the Keyrenter team that are those boots on the ground that are hyper fixated on that every single day, are going to give greater insight than if you’re just googling, you know, from home, what should I be doing and where should I be going? Where should I be investing in? I think that’s one of the really cool things about what you guys offer, because it’s way more than just being a service provider. It’s also being the market expert to help facilitate the growth of your investors towards their goals.

Yoni Schmidt 06:55

Yep, and Oklahoma is a hidden gem. I would say that many people overlook, and it’s easy to overlook because it’s not, as you know, sexy or shiny as investing in Florida or, you know, California or even in areas like Texas. But there is a lot of opportunity in Oklahoma, and I’m excited to dig in and explain and showcase why investing in Oklahoma is such a great idea.

Joshua Heintz 07:20

Absolutely love that. All right, so let’s get into talking a little bit about who it is that funds residential investment loans. And so you’re not just a property manager. You’re a long term investor yourself. And you have a really unique viewpoint into what this means for investors.

But the most average way is, hey, if you’ve got a stack of cash sitting in the bank that you’re needing to do something with, I mean, look, money markets are great. They can give you a little bit of money, but you want to put those savings to to better, worse. This is probably where a lot of people start to begin their investment journey as they say, okay, well, I’ve got a few dollars laying around. I got a little honey hole, you know, stored. So why don’t I put that to work?

And so a lot of people start there. And then some people, for better or for worse, also jump into the friends and family camp. Now, Yoni, I don’t know about you, but Thanksgiving dinners can be a little bit weird if you’ve got a lot of money laid out with a family member across the the turkey from you.

Yoni Schmidt 08:23

Yep, yep, I don’t. I personally have sacrificed growth myself to avoid using OPM other people’s money, and I have generally tried to, you know, leverage my own money. I’m okay losing my own money and risking it. You know, I don’t want to be sitting across from, you know, a sibling, a parent, a cousin or someone at Thanksgiving dinner and tell them that I’ve lost their money. That would be very, very embarrassing.

So, you know, I have sacrificed growth, but I’ve seen people do it and it’s, you know, they can be very successful in it. You just have to do it in a diligent, calculated and, and you know, very well thought through way.

Joshua Heintz 09:09

Yeah. Absolutely. And and so as we all you know what you’ll hear Yoni and I say throughout this is you need as an investor, you need multiple tools in your tool belt. And if this is a tool that works for your tool belt, all the merrier. That’s fantastic.

We’re just going through the different options. So the other one is probably the more traditionally understood local banks. And so for the purpose of this conversation, when we discuss local banks, what we’re referring to are both your community bank. So Mainstreet Bank down the road that everybody knows too, that’s local to your community, maybe has a couple of branches. We’re also talking about the Wells Fargo’s of the world, the Chase banks of the world, your credit unions.

So when we talk about banks, we’re really talking about any type of depository institution where you can go and open a check in a checking account or a savings account. Any type of bank like that is what we’re referring to as a bank. And they’ve been around for the longest time. Their tried and true. And we’ll get into where they provide a lot of value here in just a moment.

And then the last group are that fall in the specialized lending camp. And so when we talk about specialized lenders for the purpose of this conversation, again, what we’re really referring to are three different groups. Group number one is what’s considered like real hard money. So when you hear the term hard money, people have varying definitions of that. But what we’re talking about is typically going to be a high net worth individual that’s in your area that’s very local to, you know.

One, two, three Main Street down the road. They know exactly where that property is. They know what it’s worth. They know why you want to buy it, how you’re going to get it fixed up. They’re hyper local.

Then you also have the second are small family offices. So this may be somebody who is aggregated funds from their friends and family. And they may have a pool of ten, 20, $30 million that they’re looking to put to work. These are typically on short term basis. They want to fund things like fix and flips because they can get in and out of that really easily.

So individuals small family offices and then the last are what are what LendingOne falls in the camp of which are referred to as direct private lenders. These are larger institutions that usually have a much broader scale than just being locally fixated on something. Typically, you’re going to have more a more diverse group of products that they can offer to To their clients. And so what does all this look like? Right?

When you have all of these different options, you’re opened up then to looking at the difference between a bank, a hard money person or a private lender. And so, you know, we look at these couple of different groups of categories, things like speed of funding. How quick can you get your money. What’s the rate going to look like? How much paperwork are you going to be tied up in.

Do these people actually focus on investors, and do they require an entity for you to close? And so there are a couple of different ways. First up is banks. And you only look forever. Banks have been the go to for people going and getting into lending.

But look we know that they’re going to be premium when it comes to favorable interest rate, but the rest of it kind of falls a little bit flat sometimes.

Yoni Schmidt 12:33

Yeah, I mean, banks do require a lot of, you know, paperwork and information. One of my least favorite things to do is put together the personal financial statement, which I know almost every lender is going to end up asking for at least once a year, right? So that’s why it’s best to always also have a great CPA who has your books in order so that you can just, you know, act in there in an email and say, please send them my, you know, tax returns for this year. Having your team in place is extremely important. You know, that’s when you know you need your property manager to send over a cash flow statement or a rent roll, right.

To to continue the relationship with the bank so that you can or or your private lender, of course, so that you can continue to grow and, you know, leverage your resources and continue to buy. Yeah. As far as like requiring an entity, there’s of course a risk there not having an entity. Some of my properties are in an entity, some are not. I’m more exposed on those that are not in an entity, and I’m less exposed on those that aren’t aren’t an entity.

But it also means that, you know, there’s a little bit more work on the ones that are in an entity, and I have to follow those rules and guidelines and regulations to ensure that, you know, no one can truly come in and pierce that corporate veil. Yeah. So yeah. Good. Good.

Slide here.

Joshua Heintz 13:49

Yeah. And those banks, you know, they are they’re notorious for if you bring up. Hey, I’d love to close this thing in the name of my entity. A lot of times you’re going to get a little bit of pushback. So some of the values that you see in banks are typically going to be at the end of the day, the reason people go to banks is one because of familiarity.

They know the process. When they walk into a bank, they know what that’s going to look like, and they’re typically going to have good interest rates. Then you got on the other side, you’ve got your hard money guys who are, again, those local high net worth individuals or family offices, and they’re going to be able to get you that money really, really quick. I mean, effectively, they’ve just got to know that in the event of a default, they’re going to be able to retain that property. And so they’re going to put paperwork together for that.

They don’t need to see a lot of different paperwork to get that thing started. They’re going to be very focused on investors. Now for them, typically you’re going to pay a little bit more. And so you know because look there’s always this balance right. You’re going to the the pain that you take on for dealing with the bank.

The value is you get the favorable interest rates. But on the other side of that, if you’re going with somebody on the hard money side, you’re probably going to forego those favorable rates or the lower cost, but you’re going to get that money really, really fast. And if you need it and they’re going to be look, if you’re you might can have a 550 credit score and somebody with a hard money is going to come in and say, hey, that’s okay. We can work something out where other options are not really so much going to be there, and then not to paint such a rosy picture that private lenders solve all of these problems. But we do like to say that we’re a good bridge between the world of banks and hard money, because we can also fund transactions very quickly.

We typically have. And we’ll look here in just a second how our interest rates typically stack up versus other entities, you know, limited paperwork for us very much. So obviously focus on investors. Now, one of the things that is unique to us that you can see here is do we do require somebody to close in the name of an entity. And so when people think about that, oftentimes they get a little bit of pause and they think, okay, well, why would I ever put my property into an entity?

And, you know, we just talked about it a little bit, but what are the different reasons? I mean, the first is and I think probably the most intuitive. And before we go on to this, I would like to say neither you or I are. This is not legal advice. This is we are not, you know, tax attorneys or consultants.

This is for educational purposes only based on our opinion. But we do this every day. You see what can go wrong with a, you know, with a property. And so the number one thing that people should really consider when they’re thinking about putting their property into an entity is liability protection. No.

Yoni Schmidt 16:25

Yeah, definitely. I mean, I’ve seen major lawsuits, six figure lawsuits, you know, that have have been filed against homeowners and landlords for whatever reason. I mean, one of them most recent that can come to mind is tenant fell through a deck and, you know, had to have some some surgery and, you know, a lot of medical expenses related to that. And, you know, that’s a big risk for a landlord. So having that in having your property in an LLC, which thankfully this owner did have, it protects you, the landlord and the investor from them being able to come after you personally.

And they can only come after, you know, the assets that are in the entity which is which is, you know, a good, a good way to protect yourself. Again, there are certain things that you have to do. You have to keep annual meetings and minutes and, you know, make sure that, you know, you’re you’re you’re registered and you’re in good standing and you’re doing all the things that you need to do as an owner of an LLC. Right. Because if not, then it will be very easy to pierce the corporate veil and ultimately get to you personally and sue you personally.

So again, we’re not attorneys. I’m not an attorney. I have no legal background or experience, very little unlimited. So, you know, talk to an attorney. But that would be one of the main reasons is liability protection.

Joshua Heintz 17:48

Yeah. And the good thing is you can set these things up quick. And I know you can reach out to you. You can connect them with an attorney. They can get that done in moments.

Yoni Schmidt 17:55

We can even do it for our clients. We can be the registered agent for our clients and all of our markets. We can start the entity. We have blanket very, very, very good operating agreements that we’re happy to share for free with any owner who needs to open an entity in Oklahoma and Arkansas and Kansas and Missouri. We’ll do that for you.

And, you know, we’ll of course, you know, there is a fee for it. It’s it’s not free, but it’s what it costs, right? So if the state charges you $100 to open an entity, we will charge you $100 dollars to open that entity. We’re not going to dress it up like an attorney or a CPA would with, you know, thousands of extra dollars. And I’ve done this time and time and time again.

Joshua Heintz 18:38

And I love that. That’s fantastic. So yeah, definitely reach out to Yoni. They can take care of you. Love to hear that.

So the next reason is probably look, at the end of the day, people pay property managers for a number of things, but a big part of that is they want anonymity, right? And so LLCs can also provide that additional layer because look, I mean, if your property is out there in a simple Google search to find that it’s in, you know, Josh Hines’s name, how easy is that then to go to a skip tracing website and find my address and my phone number. And so putting that property in an LLC will provide an extra layer of anonymity between you and your tenant that may be in that property. And just like Yoni was mentioning, you know, the separation of personal and business finances is both beneficial for the purpose of your end of year accounting, right? I mean, when you can hand that stuff over to your accountant and it’s not mixed and blended with all of your personal bank statements, there’s a lot of value in that.

But you also want to make sure, as you mentioned before, you start co-mingling those funds and then you know that piercing of the corporate veil is a very simple case for a good litigator to to run through.

Yoni Schmidt 19:48

Yeah, that’s an excellent point. If you deposit those rents into your own personal checking, it could be a lot easier for them to pierce that corporate veil.

Joshua Heintz 19:59

Yeah, 100%. And then the last thing is this is going to qualify you for a business purpose lender. Like what LendingOne does. So one of the things that is unique about LendingOne as as we mentioned earlier with banks. Banks will typically not want to close a loan in the name of an entity.

Conversely, LendingOne will only close a loan in the name of an entity. Now, we do ask for a personal guarantor on every loan, but that loan is not closed in your name, and so you don’t have to have your property in an existing entity to close with LendingOne, it just has to close in an entity by the time you get to the closing table. So that can be developed. And so, you know, a lot of people look at this and they think, okay, that that sounds cool, but why would I even care about that? So we’ll talk just a little bit about the difference between typical conventional loan that you would usually get versus a loan.

And so the most common loan that people typically get when they go to a bank is a debt to income ratio loan or a DTI loan. And so what they’re doing here is they’re using your gross monthly income to determine how much money you can afford, because these types of loans that you probably got on your primary home are being underwritten based on your personal ability to repay that loan. But a lot of people aren’t familiar with, though, is this dscr loan? DSR stands for Debt Service Coverage ratio, and this is very simply looking at the properties ability or the entities ability that owns that property and their ability to use the income that property generates to pay its own obligations. And so the math is really simple.

If you’re looking at a DTI loan, they’re going to take your total gross monthly income. And they’re going to divide it by the total amount of debt that you have to come up with your ratio. Most banks are going to cap that ratio at around 50%. DSR, on the other hand, is a very simple, simple calculation. We’re simply taking your rent and we’re dividing it by your pity.

If you’re not familiar with pity, that stands for principal interest, taxes and insurance. Some of the things that we do not factor in to your debt service coverage ratio are your property management fees. We don’t factor in things like the cost of maintenance, the cost of vacancies. This is very simply, if you rent a property, can that rent cover the debt obligation. So for a DTI loan they’re going to want to see your W2.

They’re going to want to see your tax returns. They’re going to they’re going to obviously put the loan in your name. It’s going to be reported on your credit. And you got to make sure that you stay under that DTI threshold. Whereas with a loan with a company like LendingOne, we don’t care about your personal income.

Because again, you got to think about this. We’re underwriting this property based on the property’s ability to repay you personally. Look, you know, you and I both know the average investor is typically you know, sometimes they can be cash poor, but asset rich, W2 poor, but property rich, right. And so that if you go to a traditional lender, they’re not geared to consider those things where for us, we’re not going to ask for your tax return because it doesn’t really matter. We’re not going to ask for W2 because it doesn’t really matter.

We’re going to put this loan in the name of an entity, and unless you default on it, we’re not going to report it on your credit, which opens up your personal credit to go and do other things that you want to do in your personal life. And so if you’re curious about what that ratio is, we’re looking at a minimum one times coverage ratio. So for simple numbers. If you’re going to get 1500 to $2000 in rent, if the principal interest taxes insurance do not exceed 1500 to $2000, as long as that’s 1 to 1. So 2000 rent 2000 and pity that is a one times coverage ratio.

As long as it meets that as a minimum criteria, we’ll typically fund that. And as we talk to people, they hear this and they’re thinking, okay, I can put a property in my entity’s name. It doesn’t report on my tax return. You’re using the property to underwrite it. Like this has got to be crazy expensive.

The truth is it’s usually not. So to take a look at what that looks like, you can see at this these charts here, the change in the spread over time versus a traditional mortgage. So if you were to go to your local bank, you can see here that this ebbs and flows. There are times where we’re a little bit pricier. There are times where we’re a little bit cheaper.

There are times where we might be quite a bit pricier, and there’s times where we could be quite a bit cheaper. So it ebbs and flows. But you can see right now the difference is, is virtually negligible for what we can do now. And so we’ll take a minute and look at just real briefly, some real world examples of our loan products. We’re going to take a an example.

So this is we’re going to take an average of a $300,000 purchase price. We’re going to presume a 20% down payment. Now we’re using the 1% rule, which God knows everybody would love to have. Now it’s not really familiar, but we’re just using this just for illustration purposes and these purposes and for these illustrations, we’re not going to include taxes or insurance. But to give you an idea, if you were to go to a conventional lender today, you’re probably looking at a principal and interest payment or an interest payment somewhere in the 6.86% range, closing time on an investment specific loan is going to average anywhere between 45 and 60 days, usually through a conventional lender.

Origination fees may not be stated on the front end, they may be baked into your interest rates, but those fees are going to be somewhere between 1 and 3 points. And you can see here what that cash flow would look like. Now if we were to take a LendingOne year loan. You can see there we’re about 13 basis points higher on the principal and interest. Our closing time on average is around 21 days.

Our origination fees are going to be a little bit less between 1.25 and 1.75 points. That’s based on your experience as an investor. And you can see there the actual cash difference is about $20 per month. And then there’s something unique. Yoni, one of the things that we’ve heard a lot from our investors nationwide and that everybody’s familiar with, is with the rise in asset prices and the rise in interest rates, it’s a little bit tougher getting things to cash flow.

And one of the unique capabilities that we have as a as a private lender is we have the ability to go out and create unique loan products. And one of those unique loan products is our it’s a 30 year fixed rate DSR loan, but the first ten years is interest only. And so for people that are looking at investment properties and they think, man, you know, I love that property, I know it’s going to appreciate over time, but I just can’t quite make the numbers pencil. Now this would be an example apples to apples of how that particular product make it increased cash flow. So you can see here on the interest side for an interest only loan the interest rate’s going to be a little bit higher certainly.

But you can see there the way that it’s going to boost your cash flow. And this could be the difference in somebody choosing to buy an investment property and then choosing not to. And so the value in this and the reason that we created this product is because the average investor is either going to refinance or sell their investment property every 5 to 7 years. And so if this is an opportunity or if this can be a product to help get somebody into a position, in a market, in a property they want to be in. Obviously, rates are not ideal right now, but rates look, it’s the nature of history over the last 75 years in the United States is rates are going to go up and down.

If you see an investment property that you can get into, and you’ve got a product that you can use that will buy you ten years to allow that property to cash flow, put money in your pocket while you can experience that appreciation, then at some point in the future when rates come down, you can refinance that, pull some of that equity through that appreciation out while you’ve been cash flowing. That could be the best of both worlds. Yoni. And I know you talk to investors every day that are trying to figure out how do we make things pencil. And so this could be it’s not going to be a great fit for everybody, but it could be an option for people who are just right on the threshold and are looking for cash flow over everything else.

Yoni Schmidt 28:04

Yeah, I love this loan product for properties that are in highly appreciating areas like you mentioned, you’re going to step into that equity once you go to refinance and, you know, for for people who can, can bite the bullet and hold on. You may not want to take the equity out if you can, if you can hold on, or if you need the cash to redeploy into other assets and, you know, continue to leverage to grow your portfolio. This is a great way to do it. The you know, when I look at this loan in my mind, I’m thinking, you know, man, I I’d love to get like ten of these together, you know, after the first five years. Right.

There’s no prepayment penalty with LendingOne after the first five years. And then, you know, you cluster all of them together and you put them on, you know, a different type of loan product that isn’t necessarily IO. And you’re stepping into all this equity. So I would highly recommend this loan product for people who want to continue to grow right now and tough economic and, you know, in a tough economic environment and when interest rates are a little bit higher.

Joshua Heintz 29:14

Yeah for sure. And you know as we know. So a couple points. The couple points I would make one. Thank you for mentioning that on the.

So all of our loans do come with a standard five year prepayment penalty. You can we do have three year prepayment options. We also have no prepayment options. There’s a slight adjustment to the rate when that happens. But yeah absolutely.

That’s why we kind of peg it at about five years. Most people are looking to either refi or pull a little bit of cash out, sell whatever it may be. So huge opportunity there in the way that this loan product works. Just so you know, is this is a fixed rate. So even though the first ten years is interest only, what happens is if you were to just say, you know what, I’m just going to keep it as is and let it run its entire course.

The first ten years are going to be interest only, and then it’s going to amortize over the back 20 years, but you’re going to keep that same fixed rate. So worst case scenario, we see a Europe type interest rate situation pop up and then, you know, if rates are 14%, you know, ten years down the road, you can still hold on to this same rate and let it amortize over the back 20 years of that. So definitely an option. This is kind of just what we wanted to show is there are options that are out there. And so you know what what we really want to talk about today though are what’s happening in the Oklahoma markets and what these investors need to know about what they’re getting into.

And so we’re going to go ahead and key it off with or kick it off with Oklahoma City. Right. Everybody’s familiar with Oklahoma City. You’ve got plenty of investors that are already in that market. But you know a couple of things that we want to run through is, you know, what do people need to know.

And, you know, strong market fundamentals are obviously always going to be the first thing that investors should consider when they’re looking at a new market.

Yoni Schmidt 31:04

Yeah, I mean, I love Oklahoma City. I used to live in Oklahoma City. Went to school in Norman at the University of Oklahoma. You know, we have the Oklahoma Thunder, of course. And the theme, I’d say of Oklahoma City is growth.

It’s a growth and stability market, right. There’s great. You know, the population I think is actually a little higher now than a million. It’s probably closer to like 1.4 million in 2025 so far. You know, we’ve added roughly 18,000 new jobs, driven primarily by aerospace, by biotech logistics.

You know, around Tinker Air Force Base, the Amazon fulfillment facilities, great yields and, you know, rising rents, of course, that are, you know, continuing to steadily rise. And it’s the slow and steady that wins the race. It’s not the, you know, massive market volatility and fluctuations that I’m sure you’re used to in in Boca and, you know, South Florida area. But you know I think in Oklahoma it’s the slow and steady that ultimately wins the race. So I love Oklahoma City.

I think it’s a great market to invest in. You know, there is some there is an affordability mode right now in Oklahoma City with average apartment rents, for example, running around $1,000 a month. And that is less than 40% below the the US mean. Right. So it’s leaving a lot of good headroom for, you know, rent growth in the coming years.

Joshua Heintz 32:35

Yeah. No I love that. You got population moving up. You know rents are on the right trajectory which a lot of markets cannot say. And one of the cool things too is when you look at like the, the, you know, some of the, the fundamentals that really matter.

Unemployment obviously you see the 2020 spike everybody that’s nationwide. But then you see the regularity I mean sub 4% across the board over the last number of years population just I mean, I mean, that’s about as linear of a trajectory as you could possibly get. I mean, the population is increasing over time. And that is just as an investor, you certainly don’t want to be looking at certain markets that are obviously the inverse of this in certain communities on the West Coast. I mean, I just saw where, you know, in Portland, one of the largest office complexes, like they can’t they don’t know what to do with it, you know, and because people are just not there anymore, they’re moving out.

And so obviously Oklahoma City being on the right side of that. So what are some other things that people should be thinking about?

Yoni Schmidt 33:39

Yeah, I mean, what are some other things. Of course, you know, in terms of key investment metrics and even before that, you know, talking a little bit about the unemployment, which is directly correlated and the population growth are both directly correlated to low occupancy and supply. Right. So or low vacancy and supply. So your occupancy rates are roughly 90 to 93% in Oklahoma City.

And, you know, there’s limited supply, which is, you know, making landlords taper off concessions and, you know, keep rents really steady. If you’re focused on the Oklahoma City markets, you should be seeing cap rates anywhere between 6 and 9% and leverage 12.5% price to rent ratio.

Joshua Heintz 34:26

That’s incredible. That’s absolutely incredible. And then obviously we’ve kind of spoken a little bit to the economic stability. But you know jobs right. Jobs matter.

Job growth matters. The economy. I mean, look, it’s it’s the linchpin. It’s the fundamental the most fundamental metric that we could possibly consider. And so as we’re thinking about Oklahoma City, let’s let’s kind of carve out some areas.

A lot of people from out of town, they’re from out of state, they’re from out of the country. And so this is Oklahoma City, Oklahoma, right. If you’ve never looked at it on a map, this is what you’re looking at. So let’s kind of let’s let’s key out some areas. So tell me a little bit about the village.

Why should investors be paying attention to this area?

Yoni Schmidt 35:05

Yeah I mean the village is a great area. I just actually listed a house in, in this area maybe two days ago, and I got a contract on it this morning in my inbox, and I should date this May 22nd, 2025, 48 hours later. We got a great offer on this property. You know, just one liner for the village. You know, it’s close to Whole Foods and, you know, it’s near like Nichols Hills, as you can see on the map, solid B+ renters easy value add.

You know, for cosmetics if you can find properties that are under market value.

Joshua Heintz 35:42

Love that. And then we’ll look kind of a little bit northeast in Edmond. So tell me, Edmond Arcadia. What what’s new in those areas?

Yoni Schmidt 35:50

Edmond is great. Arcadia is awesome. I mean, you’re going to find a lot of the, you know, Thunder players kind of living in that area. That’s a little west of Edmond. It’s in the Gaillardia neighborhood.

Arcadia is also a very, very high end area. Edmond itself is the highest household incomes in Oklahoma City. So, you know, there is a great appreciation play here that you can use the I o products that we’ve mentioned earlier today, class A basically, you know, it’s a Phoenix suburb basically. So great area to be in. Edmond can can can produce great rentals.

A lot of people want to be in that area. There are good schools in that area and in those zip codes. So definitely don’t overlook Edmond. It’s one of my favorite markets. One of my good friends also lives in Edmond.

Joshua Heintz 36:41

So fantastic. Very cool. And then more so going south of the city.

Yoni Schmidt 36:46

More. Yeah. So more is, I’d say maybe ten, 15 minutes away from Norman, which is just directly south, which is where the University of Oklahoma is very large campus, you know. We have ou football sports and Norman is just a huge thing. You know, more generally was rebuilt post the 2013 tornado, which I was there at the time.

Actually I was in Guatemala, but I was living in Norman at the time. You know, Moore’s great reliable cashflow, school driven for, you know, long tenures. So Moore is a good place to be in. And, you know, a lot of people want to be in that school district specifically. So, you know, they’ll be looking for homes and Moore to rent.

Joshua Heintz 37:32

So do you get with Moore. Do you get a little bit of diversification between a bedroom community to the the Oklahoma City proper, plus a little bit of a bedroom community to Norman, as well as being kind of its own good school district. So you get some diversity there.

Yoni Schmidt 37:49

You know, you, I would say the only real bedroom community in the greater Oklahoma region or Oklahoma City region is is probably more west past Yukon towards El Reno. I would say more is still very, very stable even even Edmond and you know, other areas like Midwest City and Spencer could be great, great places to invest your money. So I don’t necessarily think that, you know, Norman, despite it being a college town, is strictly a bedroom community because a lot of people like Norman just as a little town. I mean, in fact, Norman is one of my favorite towns in, in Oklahoma. And obviously I’m biased.

I went to school there in college, and I had great memories and built wonderful relationships while I was at the University of Oklahoma. But there are still there are still people who want to live in Norman full time.

Joshua Heintz 38:47

I love that. Fantastic. Well, this is the kind of insights that you don’t get unless you’re with a market expert. So we’ll cap out Oklahoma City by talking a little bit about Midwest City. So, well, what’s unique about Midwest City when you look at it compared to these other markets that we just highlighted?

Yoni Schmidt 39:01

Yeah. So one thing to consider in Midwest City, you know, military clauses of course, matter. You want to take that into consideration because you are in very near proximity to Tinker Air Force Base, which is in Midwest City. So, you know, you have to take that into consideration. If you’re investing in Midwest City, you’re probably looking at about 8 to 9% cap rates.

But, you know, one other thing, one other area on this map that we didn’t really mention and I don’t want to overlook, is the Yukon area. And I know we haven’t really like pinned into it, but Yukon is also a wonderful area. Yeah. Right there to invest in a lot of great inventory by, you know, Ross Coleman, D.R. Horton, which, you know, we know Warren Buffett put $700 million into last year, a lot of great inventory coming up in Yukon. And, you know, you can still buy homes that are sub $300,000.

And you know, that’s that’s not something that you see every day. You know, in, in in today’s real estate environment nationally. Right. $300,000 doesn’t buy you much. But in Oklahoma City and in Tulsa in general, in Oklahoma, it could buy you a brand new home.

Joshua Heintz 40:13

That’s fantastic. I love that. So great. Look at some of these. What are there any other things that we should be considering when it comes to Oklahoma City before we move on, any other thoughts about Oklahoma City?

The the, the listeners should be paying attention to?

Yoni Schmidt 40:29

Yeah, maybe an operational nugget, you know, for people who are investing in Oklahoma City, you know, when it comes to, say, evictions, for example, right. The timeline for evictions and in the Oklahoma County in Oklahoma City is anywhere between 3 to 5 weeks, which to an investor is important. It’s a market that does not have any rent control. And it’s a free market, a true free market, which is also very important when you know you’re coming in and you’re putting your money, you want to know that you know, your upside may not be capped because of, you know, government regulations or whatnot. So that’s definitely something to consider.

You know, when you’re investing in Oklahoma City.

Joshua Heintz 41:12

Love that man. Great great great insight. So so now let’s kind of take our attention and let’s turn it towards Tulsa right. The other major market there. And so little bit different here.

Right. So we’re going to talk more about you know demographic trends. Yeah. And you know what exactly does does that look like as compared between Tulsa and Oklahoma City. What are the major differences that you think of.

Yoni Schmidt 41:38

Yeah. You know I think Oklahoma City is like your call it your core plus sleeve, where you have lower beta with diversified employers and steadier absorption, whereas Tulsa is your enhanced yield sleeve with, you know, higher gross returns. But, you know, you have to underwrite, you know, for supply surges in, in heavier and and also heavier CapEx in like C minus stock areas. So Tulsa specifically, I’d say the theme and this is what I’m personally doing in Tulsa is long term buy and hold. You know, ever since my grandfather was investing in real estate, I guess it was like from the early call it 1970s, you know, I wasn’t born yet.

But ever since then, Tulsa has been a long term buy and hold market. And I think, you know, it still holds true today. And I’ve seen people who have been buying real estate in the early 2000, you know, make a tremendous amount of return on on their investment. So yeah, like you’re showing here Strong demographic. I think we may have flipped these from the population, and I may have made a mistake here by sending you that, because Oklahoma City is like closer to the 1.4, and Tulsa is nudging towards just over a million in, in, in population in the metro with.

Yeah, also very low unemployment in in 4.3%. So yeah, steady growth in the metro. And it’s boosted by, you know remote employers that remote employees who are coming here through, you know, the George Kaiser Family Foundation Tulsa remote program, which they give you $10,000 just to move to Tulsa. If you have a remote job that is not within Oklahoma, that the employer is not within Oklahoma, and also tech companies that are now coming to Tulsa because of Atento capital, you know, Michael Bosch, grid X, these are venture capital firms. There’s Aaron Sloan from the engine room who, you know, created Golden Gloves VR, which is an awesome, awesome, awesome, you know, boxing virtual reality game that you can find on the, you know, Facebook meta, you know, headset.

So some things to consider.

Joshua Heintz 43:58

That’s that’s incredible man I love that. So what housing dynamics. What does this look like.

Yoni Schmidt 44:07

Rising rents. Yeah. So you know really low vacancy rates of roughly 8%. Rising rates of, you know, roughly 4% quarter over quarter with, you know, you know, occupancy at like 93% in the Tulsa market, you know, fast, fast turnaround time in terms of leasing, there is a little bit of a front loaded pipeline right now. So, you know, you want to prudently model 50 to 75 Bips on extra vacancy through 2025 when you’re underwriting your deals in the Tulsa market.

Definitely strategic opportunities and, you know, leverage growth in tech and logistics sectors. So we see that every day there’s get wit and which is a wonderful company and a lot of job growth here in Tulsa. Yeah. And I would definitely focus on areas with rent multipliers that are under 1010 x.

Joshua Heintz 45:04

Love that. So just like we did with Oklahoma City, we’re going to take a little bit of a closer look into the Tulsa market. And so let’s look at a couple of unique markets. Why don’t you tell us a little bit about what’s happening in these zip codes.

Yoni Schmidt 45:18

Yeah I mean you got that’s kind of like the 74 105 is Midtown. You know, there are areas there that you want to be careful with. You definitely want to get with experts and, you know, local people on the ground because there are pockets of good and there are pockets of ugly and very, very bad. So, you know, you just want to be careful and make sure that you’re putting your money in the right places in terms of 74114. You know, you have the Gathering Place, which is George Kaiser and the George Kaiser Family Foundation put about $500 million into this park.

That one number one best park in the United States. It is phenomenal. I mean, they have rebuilt the entire Riverwalk miles and miles and miles of River walk. That that is just gorgeous. And I love taking my bike out there.

And the Gathering Place is just an enormous park. That’s awesome and a great place to, you know, visit, walk around, work, open up your laptop. There’s a, you know, there are spaces that you can sit and hang out, coffee shops and restaurants and a whole bunch of things. So when we’re looking at, you know, Midtown, that’s a hard place to invest in. Unless you can find stuff that is below market value, you want to look at value add.

You want to consider appreciation and stability in that market. You know, these are mostly 1950s types of homes, very walkable. And, you know, if if you can find something and buy it under market rate, you know, some cosmetic work can yield a great appreciation, great appreciation, and very high rents that are beyond $2,000 a month in terms of the the gathering place. And in that area, the more east you’re going, the, you know, the the lower your rents are going to be. But, you know, everything is kind of like flocking towards the river and towards Midtown and towards Riverside and Brookside.

Those are the areas that, you know, a lot of people want to be in, and it’s tough to invest in those areas. It’s just hard to find good, good, good inventory there.

Joshua Heintz 47:28

Yeah. Well, and that’s why having, you know, a partner like you that that has their ear to the ground and knows where to go because look like you mentioned good areas, bad areas. But the difference? A lot of time can be just a couple of streets apart. And having that that specific market knowledge to know where those streets are.

Is of little importance.

Yoni Schmidt 47:48

So I will say sorry if anyone if anyone’s looking for an off market opportunity. My friend Sophia is selling a house on 34th right near the river. There you go. That’s for 105 zip code. I believe it is.

And it’s a great flip. So you can do a fix and flip loan with you, Josh. Or it’d be a great primary and, you know, it’s it’s currently being sold for. Well, I shouldn’t say because I don’t really know, but it’s an off market opportunity. If anyone’s interested, reach out.

You’re going to mention jinx.

Joshua Heintz 48:23

Yeah.

Yoni Schmidt 48:24

Jinx. Great market to be in. You know, the one word I would focus on with jinx is appreciation. You’ve got riverfront retail, you’ve got new expressway, 5 to 7 year old Yea, hold on on you know. Properties and jinks.

Excellent school district. Everyone’s flocking to that area to put their their kids in in the in the Jinks School district.

Joshua Heintz 48:48

Love that. And then East Tulsa. What’s different about east. So you got east and midtown I mean what what’s the primary difference? They look somewhat close in proximity.

Gathering place to the Meadows. So what’s the difference between the two?

Yoni Schmidt 49:02

Yeah, a little bit about East Tulsa. Great place to invest your money. A lot of new stock in that area in East Tulsa. You know, you you definitely can find you know, Ross Coleman’s that are renting for anywhere between 14 to $1800 a month. East Tulsa is more of your blue collar workers who blue collar demographic, you know, hard working folks who are, you know, great people and, you know, they they pay their rent and, you know, they may want to buy a house in the future themselves, so that area is very safe, I would say.

I love buying in East Tulsa. I hold some properties in East Tulsa. And I would not shy away from this area.

Joshua Heintz 49:47

What are these? Classy, you would say? On average.

Yoni Schmidt 49:50

I’d say, you know, it’s tosses a lot of pockets. So you gotta really focus on on the neighborhoods and on the street. But I would say you can find classy, you can find class B and maybe even some, you know, in this 74134 area zip code. You could even find a minus.

Joshua Heintz 50:09

Okay. Very interesting. And then the last within kind of the Tulsa metro looking at Broken Arrow.

Yoni Schmidt 50:17

Yeah I love Broken Arrow. It’s just out there on Tuesday showing four houses to a client who’s moving from Austin, which has become the, in their words, a frothy market that they can no longer live in. And, you know, they bought their house in 2015 and they’ve like seen insane appreciation on it. And they’re saying, oh my goodness, we can come to Broken Arrow or Owasso or Jenks and Tulsa and, you know, be closer to family and buy basically like a little mega McMansion, let’s call it. On, you know, a half an acre.

An acre. Broken arrow is a wonderful, wonderful, won wonderful market to invest in. A lot of new stock in Broken Arrow. Of course, the closer you are to the Rose district that you can see here on the map, the, you know, the the I’d say the better. It really also depends on the type of lifestyle that you’re looking at.

Rose district is, you know, the main street downtown of Broken Arrow, where people want to be near at least me for my kind of like lifestyle. But then people who want to be in a more rural area can go farther south towards the Coweta area. But really great, great, great places. It’s a great southern suburb of Tulsa that you know. My one word for it would be growth.

And, you know, there’s, you know, top schools, low churn, great retention in terms of tenants renewing their leases. And it’s ideal for a good little borough. If you’re trying to, you know, invest in Broken Arrow. What’s not pictured here are a couple areas that I’ll mention. Of course there’s Bixby, which is kind of like the in between Broken Arrow and Jinx, which I didn’t mention.

And then if you go if you go north on 160, on 169, you would hit Owasso, which is also a wonderful market to invest in. And then where you see Gilcrease Hills on the map there, that, that just below that, just south of that is actually where, where I put, you know, my money and I play in that area that’s just like near north downtown. Downtown is that little cluster like right where it says Tulsa. That is your inner dispersal loop, that whole kind of square that’s bound by the highways. And within it is the central business district of Tulsa, Oklahoma.

And, you know, if you can invest in any area that is in and around downtown, you know, again, got to be careful of those pockets, pockets of good pockets of bad. And, you know, you you could get great appreciation, great return on putting my money in Emerson Heights right now and working a deal with a builder and trying to buy a house, which will come with a lot of land. And, you know, hopefully they’re about 50% done with the house that I want to buy. And, you know, I’m pestering them, you know, every week, every couple of weeks to try and get a contract on it.

Joshua Heintz 53:20

Love that. So and wrapping up, Tulsa, are there any kind of final points that you’d like to make just about the market in general.

Yoni Schmidt 53:29

Yeah. Tulsa as well. You know, eviction evictions run about 21 to 25 days. You know, but the dockets get, you know, backed up around the holidays. So, you know, you have to plan for an extra month of vacancy in winter.

You know, that’s kind of what I would say about about Tulsa is, you know, great market to invest in and great eviction, great eviction timeline for investors, which, you know, it’s important. No, no rent control of course, in Tulsa as well. And you know there’s a lot of growth happening in Tulsa. So the strategy long term buy and hold.

Joshua Heintz 54:08

I love that. And it sounds like you know between both Oklahoma City and Tulsa I mean you’ve got anything that you’re looking for. If you’re looking for class A if you’re looking for class B, C if you want to find flips, if you want to do some appreciation, some burst. I mean, it sounds like you got a little bit of everything. And so that speaks a lot to, you know, the different types of investors that we see.

And so typically investors will usually follow different types of avatars at different points and times of their investment career. And so we’ll kind of look at a couple of those now. And how if you fit within one of these avatars, how lending 1st May have a product that could help you grow as an investor. And so that first bucket that we would put an investor in is the rehab specialist. These are people, you know, we’re talking about that they love fix and flips.

They want to get their money in and out as quickly as possible. And if you fall within this camp and you’re interested in finding a lender that can help you with that, we would certainly love to help out. So we do have a fix and flip loan product. We interchangeably use fix and flip loan and bridge loan. These are short term loans, typically between 12 and 24 months.

The reason you may want to do this is look, you know, use somebody else’s money. If you’ve got $100,000 in available capital, instead of dumping that all into one project, you can use that money and spread it across multiple projects. Now we can close really, really quickly on these. And so the cool thing is, is we will loan if you find a fix and flip product. So let’s say that you find property for $100,000 that you can go in.

That clearly needs a lot of love. It’s $100,000 to purchase, it’s $100,000 to renovate. And you hope that that after repair value say, say, 275 $300,000, then we will loan up to 90% of the $100,000 to purchase that property. So we’ll loan up to 90,000 of the $100,000 to buy that property. But then we’ll loan you the entire $100,000 that you need to rehab it.

And what’s cool about that is we’re going to take that $100,000. We’re going to put it in an escrow account. These are interest only loans. There’s no prepayment penalty on this. So you get in and out as quickly as you want.

But we’re not going to charge you any interest on those funds that you’re using to renovate the property until you start to draw them down to pay for the renovations that you’re doing. We can go anywhere between 100,000 and $5 million on the loan amount, and we can close these really, really quickly. The next avatar, people that look, if you’re watching this and if you’re using Yoni and Keren or as you should be, then you’re you’re going to fall into this avatar of the long holder. You’re you’re probably buying and holding these for either the purpose of building long term wealth or for a little bit of hedge against, you know, the government wanting to take as much of your money as possible through the tax benefits of real estate investing. And if you’re that type of investor, we also have a product for that.

This is that that DSR loan. We compared it earlier to the DTI loan. This is the 30 year DSR loans. And again some of the advantages to that is we’re using the property’s income, not your personal income. There’s no limit.

So with the bank once you hit ten you can’t use a bank anymore. And so with us you can buy five, ten, 100, 1000. No, no difference with us. Now we have a lot of different flexible options with that. So for these, if it’s a new purchase or if it’s a rate and term refinance, we can go up to 80% leverage on that property.

Or if you’re wanting to pull cash out of an existing property, we can go up to 75% loan to value on those cash out. These are all 30 year fixed rate. We do have arms available. There’s just not really valuable in this particular economic environment. They’re either the same interest rate or a little bit more expensive.

Now for the just reasons of what’s happening in the market. As we mentioned earlier, we do have interest only options. Now, one of the cool things about us is that we only have a three month seasoning requirement, meaning that if you’ve gone in, you’ve fixed something up yourself and you’ve looked to put some value into it. We only need three months to be able to turn around and appraised that off of its existing comp. We can also provide deferred purchases or delayed purchases, so you might want to go.

You need to buy something in cash really, really quick. But if you turn around and come to us, we can do what’s called a delayed purchase and then pull that money, help you out, you know, get your own money back out of that and then finance it for you. And then, as we mentioned before, no income or no income or W-2 or tax return checks on that. You may be a capital cyclist. This is somebody who’s using the Burr strategy, as Yoni was mentioning.

There’s a lot of opportunity to find properties in and around both Oklahoma City and Tulsa to provide some additional value. And these people are wanting to continue. Look, the Burr strategy has been the tried and true method for a long time for many, many investors. And if you fit into that camp, we’ve got a loan for you as well. So the difference between this this is really two loans.

It is a fix and flip or a bridge loan. And then it’s a 30 year fixed rate loan that we kind of marry into one product. We give you reduced origination fees on switching from the bridge loan into a permanent loan. So it’s basically you can kind of think of it like a buy one, get one half off in terms of the fees that are associated with. But then again, you’ve got things like an appraisal, right?

Everybody’s got to pay for an appraisal. Appraisal might run you 500 bucks. Well, if you do the appraisal on the fix and flip, we don’t need to turn around and copy your appraisal on the Or. We don’t need to turn around and charge you for an appraisal on the back end. We’re going to comp that for you so you don’t have to pay for an appraisal to get it flipped, and for an appraisal to get it rehabbed.

We’re going to go ahead. And so we provide extra values like that little bit of a discount to the interest rate. Same thing with this. The idea is to get in and out of these really quickly. We can get this.

We can get the initial purchase to closing in as little as ten days. Typically these are nine month loans. And then we can go up to 75% of the new property value of the back end on the RV side. And then the next thing that I’m really excited to talk about is the avatar of the asset collector. So this is the investor who has been aggregating properties over a long period of time.

And if you’re doing that, you’re probably looking to scale. You’ve started to see some cash flow, you’re starting to look at your retirement, or maybe you’re using this to to be your primary strategy to to build wealth in the short term and in the long term. And if that is your avatar, then Yoni and I have a treat for you today. And so we can use this the way that a lot of these portfolio loans are used are either naturally in a new purchase or in a cash out refi. But if you’re somebody who is thinking about purchasing a portfolio, Yoni actually has some contacts that we have reached out to, and we’re going to share that with you here in just a moment.

The advantage to the portfolio loans is you can close multiple loans in one property. So anywhere between it’s got to be a minimum of three properties or a maximum of 20 properties. You’re going to get a discounted origination on these properties. And the cool thing is, as we talked about, you need a one times coverage ratio for any loan. With a portfolio loan, you can use your entire portfolio of properties.

Because what we’re looking to see is what are the total rents that you’re going to get across ten, 12, 15, 20 properties. And then what are the principal interest taxes and insurance. So what that means is that you can have 1 or 2 properties that technically underperform, so long as the portfolio at large performs at least a one times coverage ratio. And then this is one origination process, one loan, one payment, the the ease of use. I mean, if you’ve got 15 properties and you’re having to keep up with 15 different loans, that can be a little bit of a headache.

So we can provide that same terms as the regular DSLR we can do. You know we can. We have arms. All of these comes in 30 year fixed rate loans. We do have the same interest only.

So if you wanted to to put your portfolio in something that just cash flows you’re certainly welcome to do that. Same thing on terms of the leverage. So we go up to 80% on a new purchase or a rate and term refi. We’ll do go up to 75% on a cash out refi. So if you’ve aggregated ten, 12, 15 properties over the last seven, eight, nine, ten years that have variable degrees of equity variable interest rates on them, you can package all of those into one loan, do a cash out refi, pull money out of the entire portfolio to help you grow or move faster.

Use that money for whatever you wish to do. Same thing. No income or employment verification. So now on to the good stuff. So we’ve gone and you have gone and through a special offering have aggregated a couple of different properties into a potential portfolio.

So we’re going to sit here, Broken Arrow, which we were just talking about one of those areas. And then more so we’re going to before we get into the financial side of this, tell us a little bit about these properties.

Yoni Schmidt 1:03:25

Yeah. So thanks Josh for teeing this up. But you know these are three houses all owned by one investor who is looking to take their capital and deploy it into other opportunities that they currently have. One in Owasso which again, great market I love Owasso. It’s been growing.

You know it has great stability. Also good school districts, a good school district and such as more as well in Oklahoma City. And of course that one house in Broken Arrow. At the moment we are working on a on a sorry, not a renewal, but a make ready and a to rent out the Broken Arrow house that is currently vacant. Both of the other two houses, Owosso and Moore, are currently occupied.

And so this is an opportunity for someone to come in and, like I mentioned, get into both of these markets at the same time. Like I said, Oklahoma City is going to be your core plus sleeve, and Tulsa is going to be your your high yield sleeve. And, you know, I think these are three great assets that could potentially, you know, make great, great, great investments for long term buy and hold and appreciation purposes.

Joshua Heintz 1:04:41

Yeah. And look, there’s not a lot of opportunities that you’re going to have as an investor to get a what will soon be a fully stabilized portfolio in a market where, you know, the manager is going to manage in both markets for I mean, it’s just it’s an incredible opportunity. So let’s take a little bit of a look at the numbers. So the the numbers themselves, we’re looking at a purchase price of 6.45. Now this is a special purchase price right.

Yoni Schmidt 1:05:07

Yeah. Yeah. So this is the portfolio price basically, that we’re only offering to people who are tuning in and listening to this webinar now, or as the recording, as we put it on our YouTube channel. So please mention this. If you add up, you can go on Zillow and look at these prices right now.

And if you add up those prices, it will come out to a little more than that.

Joshua Heintz 1:05:30

645 yeah. Fantastic. And then as we mentioned earlier, we’ll go up to 80% leverage on a portfolio new purchase. So you would need a down payment of about $129,000. Interest rates today are obviously so this is as of today.

So again we do want to time stamp this. This is May 22nd. Everybody out there is aware of what’s happening in the interest rate environment. So interest rates could continue to go up. So this may be a good opportunity to take advantage.

Or if you wanted to wait you know maybe to see if interest rates are a little bit more favorable. But this is the opportunity as it sits today. These property types are all single family and the combined rents between all three properties are right at $4,700. So here’s the breakdown of the actual numbers. So your principal and interest under that 30 year fixed rate portfolio loan would be 3489.

Your combined property taxes would be 533. And your combined homeowner’s insurance would be 282 for a total payment of 4304, which gives you a total debt service coverage ratio of 1.09, which again, is going to be plenty for us to be able to originate on that loan. Now you can leverage up so you can put more money down is obviously going to boost your cash flow. You can go in and just so you know, the way that it works with LendingOne for all of our interest rates, our rates are determined by a matrix of the personal guarantors Fico score and the leverage. So as leverage goes down, meaning you put more money down, your rate’s going to come down as your Fico score, your credit gets worse.

Rates are going to go up. So it’s a dynamic field. But if you were to come in, if you’ve got good credit and you wanted to put, you know, 25% down or 30% down or 35% down, that rate’s going to go down, down, down, down, down. Debt service coverage ratio is going to go up, up, up. And it’s going to make that property cash flow a little bit better.

Any any thoughts before we move into the last couple little bits.

Yoni Schmidt 1:07:27

Yeah I should mention the the I just looked it up. The Broken Arrow house, 520 West Roanoke Street in Broken Arrow is actually renting for 1650 now, so that rent should be 4850 rather than 4700. So, you know, your debt service coverage ratio, of course, will go up with a little bit more rent. And, you know, it’s very interesting to see how sensitive it is that cash on cash is to, you know, small increases or decreases in the in the rent amount. So just something to consider as you’re underwriting this and, you know, looking at this investment as an opportunity.

Joshua Heintz 1:08:07

Yeah. No, I love that. And so we’ll do a real quick phone math.

Yoni Schmidt 1:08:12

Back of the napkin. Yeah.

Joshua Heintz 1:08:14

Napkin. So we’ll go in. And then that would increase your debt service coverage ratio to yeah 1.13. So putting yeah. So that makes that look even more attractive.

Even with rates where they are today. And that’s what’s cool about this is what we’re trying to show is hey there’s opportunities out there. And so you know this is not only going to cash flow a little bit, but you’re also taking advantage of these amazing markets that Yoni was just talking about and how they’re going to appreciate over time. So certainly opportunity here. Love that you can provide this type of a portfolio for your investors.

Yoni. And I would imagine somebody will certainly be taking advantage of this. So excited to see what happens with that. And then the last thing.

Yoni Schmidt 1:08:57

That last question on that is these aren’t on the I o loan product, right?

Joshua Heintz 1:09:02

No, this is this is the standard loan product. So cash flow would be significantly improved if you were to go I o on. Yeah. Yeah. Great.

Great point, great point. So definitely reach out to Yoni if you have any interest. I’d imagine this property is going to to move fast I’m sure. Probably even clip out just this segment, maybe to share in some other areas to show how how advantageous this could be. And then the last thing that I wanted to address in terms of the the opportunities that we have, is if you’re buying infill lots in any of these markets within Oklahoma City or Tulsa, we can help you out.

These are very similar to our bridge loans. So these are typically 12 to 18 month loans. This is ground up new construction. So we don’t we don’t fund the horizontal. So we’re not going to be able to fund the dirt.

But once you’re ready to go vertical with it we can jump in and fund all of that. Reach out to us. We do these nationwide all day, every day. So if you got any interest, please let us know. And then just kind of recap, you know, if you’re interested reasons you may choose LendingOne.

We’re an extremely stable source of capital. So I mentioned before, you know, the average family office that may have 20 million, $30 million available at any given point in time when that’s out and then you come to a loan, if they can’t recapture that money, sometimes you might get hung up with a hard money person or with a smaller lender. We have got a massive, massive capital stack at our back. We have never had an issue with funding any loans. That’s never going to be an issue on our side.

I’ve been doing this nationwide again, like I said, for over ten years, and we’ve got a dedicated group of people that work with just investors all day, every day that we’d certainly love to help you out. And then if any of this of all of this sounds interesting to you, if you just want to chop it up and talk real estate, this is yoni’s information. I know that he would love to speak with you. I mean, obviously an expert in all things Oklahoma real estate and investing, Having been an investor himself, he could probably. I’m sure he’d be happy to help you.

You know, if you’re considering if you should be investing in this market versus another market. Yoni is going to be your guy to talk to. And then on LendingOne side, one of the one of one of the things that we’ve done with Keyrenter is we have we’ve separated out a dedicated loan officer for you. There’s no need to call in. Talk to the LendingOne hotline.

We’ve got great agents everywhere helping people with determine what type of loans best for them. But for you, we’ve got an individual. Scott Wolf is his name. He’s been with us for a long time, been in the industry for a long time, originated many, many, many loans across the country. And if any of the products that we have talked about today, if that portfolio is of interest to you in purchasing, that if you have a property that might be in need of a refi, if you’re looking to purchase a new property, want to do ground up new construction, reach out to Scott.

His information is there on the screen. He is your dedicated loan officer, loan advisor because of your relationship with Keyrenter. So when you reach out, just tell them that you heard about us through Yoni and he will certainly take great care of you. So Yoni, what are some parting thoughts that you have for us? Or some final words of advice before we jump off today?

Yoni Schmidt 1:12:18

You know I would say don’t. Don’t overlook Oklahoma as a place to put your money. If you’re from out of state and you don’t know the market, you know, come to Oklahoma, come visit us here. We’ll take you around. We’ll show you our offices.

You can meet with our team. We’re happy to, you know, show you, show you homes in person virtually. And, you know, we work with all sorts of investors. And, you know, we can help buyers and sellers, investors, you know, from all over the world invest in real estate in Tulsa and Oklahoma City are both phenomenal markets to be in today. Tons of growth and potential to to, you know, grow your portfolio, stable markets you know low unemployment and, you know, high occupancy.

That’s what I want to hear when I’m investing in real estate.

Joshua Heintz 1:13:11

Yeah, absolutely. Well, Yoni, thank you so much for your time. I really enjoyed doing this. I think everybody that’s listening has got a ton of value out of this. And this is really a deep dive into, you know, the two primary markets there in Oklahoma.

If you have any questions, feel free to reach out. Yoni, myself or Scott, we’d love to connect with you. We certainly appreciate you joining and hope everybody has a wonderful morning, afternoon, or evening wherever you happen to be listening. Thanks so much.

Yoni Schmidt 1:13:39

Thank you so much, Josh.

Outro 1:13:44

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