A lot of people start by flipping houses and then evolve into something else. That’s our story today with Derek Dombeck, but you won’t believe what he’s into now. And it’s something we’ve never had on this show.
Derek Dombeck is a hard money lender in Green Bay Wisconsin. Before that he was a house flipper. Before that he worked in construction. But what he’s doing now, in addition to the hard money lending company is something we’ve not covered on this show before, but I’m going to let you hear it from him.
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Cynthia, Bend, Oregon, “Do you see the real estate market softening? If so, what’s going to happen to house flipping? And what will happen to your show?”
Sally, Wauwatosa, WI, “You have a bunch of courses. Which one do you recommend for someone just getting started? I have three months’ severance and need to hit the ground running.”
Quote of the Day
Over the past several years we’ve used a series of quotes from Mr. Rogers and Dr. Seuss. We are now using quotes from Michael Scott of The Office, played by Steve Carrell.
“I’m an early bird and I’m a night owl so I’m wise and I have worms.” – Michael Scott
Expected Air Date: Friday 10/21/2022
Guest: Derek Dombeck
Name of your company / organization: Best REI Funding
Provide all relevant links to your products, services, landing pages, etc. :
[0:00] A lot of people start by flipping houses and then evolve into something else. That’s our story today with Derek Dumbeck. But you won’t believe what he’s into now and it’s something we’ve never had on this show.
[0:29] That teaches you how to make money in real estate wherever you are, whatever your situation, there is an opportunity for you and now, here’s that flipping America guy, Roger Blankenship.
Thank you Kathy Curtis and hello America.
Derek Dumbeck is a hard money lender in Green Bay Wisconsin.
He worked in construction and before that he was in stock cars but what he’s doing now in addition to the hard money lending company is something we’ve never covered on this show before.
And I’m not gonna tell you I’m not gonna steal this thunder I’m gonna let you hear it from him because
So that’s coming up.
[1:16] Derek Dumback cool guys got some great stuff going on a mastermind program that you’re gonna wanna hear about and the especially if you wanna go to Mexico for Mastermind.
But first a little housekeeping how to reach us or on Facebook Facebook. Com slash flipping America media Twitter and Instagram at Flipping America and on YouTube YouTube. Com slash Flipping America.
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[2:49] It’s called the weekly wit stands for whatever it is.
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[3:41] Alright. Big shout out to our sponsor today. They’re flipping America Mastermind. If you want to learn this business, if you’re serious about it, then, I think that I have earned the right,
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We’ve got some questions from our listeners and I wanna deal with as many of them as we can on the show here and Sally if we don’t get to yours we will get to it on the show we have already answered you a course in person,
But I want everyone to hear the answer. Cynthia from Bend Oregon says, do you see the real estate market softening? If so, what’s going to happen to house slipping and what will happen to your show? I found that a little bit of music. Now, we,
But no one’s asked me before about the applications to the show. Alright, Cynthia, so yes, we do see the markets softening in fact if you just go back a few shows, you can listen to our entire
Market report for third quarter of 2022. It is softening. There’s no question about that. It’s not about to crash,
And there’s no need to worry but it’s so what’s gonna happen in house flipping? Listen, I I have a little saying that I say in some of my workshops.
About 6000 years ago they invented writing.
[5:01] They recorded the first flip of real estate in human history that’s sort of a joke but.
[5:08] Real estate investing has been around since pretty much the beginning of the recognition of property rights people in buying and selling land and improved lands and and
It may take another name but I doubt that at this point
I was flipping houses in two in the early 2000’s when it was an up market like we’ve had less over years I really made money in the down market of 2008 to 2012,
And I have demonstrated I can make money in an up market too so,
Nothing is going to happen the house flipping it’s gonna be around no matter what the market is there will be people coming and going in this business like every other entrepreneurial enterprise
And the fad may wear off and the TV shows may eventually go away although I don’t know they’ve they’ve survived longer than I thought they would.
But what’s gonna happen to my show? Well, we don’t have any plans to go anywhere because I, you know, we we cover more than just flipping houses on the show. We cover all aspects of real estate investing and I think that this show is at,
Permanent as I am.
[6:22] As long as there are real estate investing opportunities we’re gonna be here talking about them okay thank you I appreciate your concern I hope it was concerned hope you weren’t trying to,
Throw one in there Sally from Wauwatosa of Wisconsin says you have a bunch of courses
Which one do you recommend for someone just getting started I have 3 months severance and need to hit the ground running okay the course that I recommend for you is real estate investing quick start that’s available on the website
Go to flipping record. Net,
But I’m gonna tell you something. If you got 3 months servants, now I think that you could get going but listen, really? Jobs are easy to get. Go get another one for now. Really?
Here comes Derek.
[7:09] Yeah, I’m glad to have you here, man. Alright, we we got a lot to cover in just a few minutes but first of all, tell us a little bit about,
Best area I funding is open my lending hard money lending company,
And we got to a point where we had more capital available than we had deals,
And we didn’t want our investors to go somewhere else. So, through our network of other friends in the business that needed money and our relationships with our investors that had money,
We we became the the lender. So it’s it’s an arbitrage business.
That started out almost as a hobby and now is full time with 10 employees and and millions of dollars a month going out the door,
I like event and you’re probably the first interview guest I’ve ever had that use the word arbitrage in the sense. So, props to you, my friend.
I got it out,
Absolutely. When I say that, people look at me like, huh.
Hey especially wholesalers.
[8:37] Best REI funding.
[8:46] So we’re we’re based in Wisconsin and we we only loan in Wisconsin for two reasons,
First and foremost we also run a full time acquisition company so in the event that we do have a default,
And we have to take a property back it goes from the lending company into the acquisition and rehab company and we can get rid of it,
But we are still 100% privately funded with private individuals. We do not take on at this point any institutional money,
And we have investors from all over the country that are looking for a good safe return but the Midwest is is
Fairly stable. We don’t have the the huge run ups. We don’t have the huge drop offs. When we have market shifts. Yeah. And we can still buy cash flow here. So, lot of our investors like that security of of,
Us being in the Midwest. We’re in Wisconsin, are you?
It’s it’s required here or you get shunned and sent to Illinois or Minnesota so,
Well I I bought a property in Milwaukee so.
[9:56] Oh yeah I’m not,
Right now I’ve got one of our people is looking for some money in Kentucky,
Pretty good looking deal in Paducah and I just got a text from an oh on our people looking for some temporary money in Enterprise Alabama.
[10:21] I believe I’ve been through enterprise Alabama once it wasn’t a very quick drive was it? Pretty small town, isn’t it? Oh yeah, it’s a small town but right in the middle of the town square, they had the monument to the bowl weaver which is one of my favorite monuments ever,
They it’s a it’s an invasive pest that destroyed the cotton crops you know. Okay. In the late 1800’s it all throughout Southern Alabama,
And there’s a statue in the middle of the town square with this person holding up and it’s a.
Bronze bowl weavele and this the plaque that underneath that reads,
I I can’t quote it exactly but here we honor the bull weavele the harvenger of our great wealth,
What happened was the the bowl weevil destroyed the cotton crops,
And out of desperation one of the local farmers went over to Georgia and learned about peanut farming and they brought peanut farming to South Alabama and they made way more money than they ever did in Cotton.
[11:25] So I would say that we’re kind of in that same boat like the bow weavele was all the competition in house flipping and and,
We just decided to go into lending space less competition,
I think it’s good an hour of you.
Well so I didn’t ask you this before we got on the show but I’m currently writing a book specifically on how to create a Lentic company,
Start to finish a you know a through z taking an application through underwriting through you know servicing alone and and loaning paid off.
But to answer your question directly.
[12:15] It was trial and error at first and there wasn’t a source to go to to to get the straight answers of what do you do coming from a construction background and my business partner coming from an IT background,
Neither one of us was ever in the financial space or of banking or or anything like that. So,
It was really reaching out to our network talking to other people that had done it just like if you were first time house flipper or first time landlord right you gotta go find somebody else that’s done it,
You know mirror and match what they’ve done and tweak it along the way.
Many many years later we’ve got a lot of things perfected and there’s a lot of things that we are constantly gonna be adapting and adjusting
Especially with changing markets,
It’s the way I’ve done all of this. I sort of guess my way along and talk to people that know more than I do and then, you know, look at people who are very successful and try to.
Pick their brains or at least copy what they did, right? Right. So, how do you set your rates?
[13:28] Typically will stay a little bit below our our local competition,
We don’t consider the national hard money lenders competition.
They come and go they they’re certainly getting loans but they’re selling their paper off. And we may be at a higher interest rate.
But if you compare Apple’s apples on fees were,
But where we really strive is because we’ve been house flippers and we’ve got hundreds and hundreds of deals over the years. We do a lot of creative deals structuring.
Telling our clients.
On a daily basis we’re getting phone calls from clients for helping them deal structure we’re helping them find contractors if they’re having issues or you know just all those extra steps.
Honestly they’re mentored to a certain degree.
That human touch they’re not competition to us,
[14:47] Until we can maximize what we believe is our our cap of what we could do in state of Wisconsin and where about 30% there right now,
From where we are located we can be anywhere in the state of Wisconsin within two and a half hours.
When we go to a different state, you got different laws, you gotta find boots on the ground, you gotta find people that you can, you know, no like and trust, they’re gonna be on your team.
Again at this point.
Honestly we’d have to be probably over the 100 1 million dollars mark in in loan originations before we would consider moving into the next,
The next state.
[15:49] We feel like we can,
There is this this teeter totter this tipping of the scale right you either have too much capital and not enough borrowers or you have two main bars and not enough capital,
And it’s a constant game of tetras.
We know what we feel like we could get to but that includes raising more money. And then being able to deploy that amount of money and being able to handle the volume as far as our our staff is concerned.
And it doesn’t go in a nice even uphill climb. It’s right.
[16:33] Alright the the website is best REI funding. Com and I’m speaking with Derek Dombeck we’ve got to take a quick break we’ll be right back.
[16:50] Hey, are you ready to learn this business for real?
You wanna check out the flipping America mastermind,
Group coaching calls for life and monthly one on one calls for a full year,
And be a part of my flipping america family for life flipping America. Net forward slash.
We’re back I’ve got Derek Dumbeck with us here and best REI funding. Com Derek and his team loan money,
On real estate investment projects in the state of Wisconsin and I’m doing my best everybody I’m trying to talk him in to leave in the state and coming out and helping all of you out there across,
The fruited plain but so far I haven’t succeeded.
[17:49] I am betting when you were a kid dreaming about what you wanted to do when you grew up.
It probably didn’t include hard money lender but probably also didn’t include real estate investor what did you wanna be when you grew up.
I grew up racing stock cars.
You know, my myself and my dad and my brother and you know, our whole family, we’ve always worked with our hands.
But I bought my first piece of property not investment property but my first piece of property was my personal house when I was 21 years old,
And I took this little shack and turn it into a nice ranch style home.
By the time I was 25 I had a pheromone of equity and that’s when I I got the real estate bug,
You know. Yeah. All I knew was I could build sweat equity which meant I do a did a lot of things wrong.
Cuz I thought I had to do it all myself to save money. You know, stroke my own paintbrush, swing my own hammer type of stuff.
[18:53] Yeah. It helped me back for a long time.
Okay. Well, by the way, I’ve got my Wisconsin loyalty right here.
Stock car racing I know this is off the subject but I have a lot of crazy ideas and I have crazy,
Ideas on how to improve several sports that are that could be a little bit monotonous to watch and let’s face it.
Most people that are not huge fans characterize stock car racing is go fast turn left.
But here’s here’s my crazy idea that would make stock car racing appeal to the masses.
[19:37] Allow for all of the modern safety equipment to be installed in the cars but other than that,
The cars that you put on the track has to be available to the general public and whatever form.
Whatever engine suspension breaking wheels, tires, and so forth. So, it’s really a stock car.
[19:58] Because if you go to a Nascar event I mean you can watch them what they’ve got the template over there that they lay over all of the cars and every car they call it a Monty Carlo they call it a whatever tourist but it has the exact same body shape as every other car on the track,
They’re trying to make it even so it comes down to the minute adjustments the skills of the driver a little bit of luck I say.
Let him make whatever they want to and put it on the track,
Absolutely get back to the girl days when he used to run moonshine down near neck of the woods and you know.
The stock cars that in the stock car drivers from back those days were the real the real stock car drivers,
And I will tell you Roger it it’s changed since then when we got out of racing about 15 years ago,
When I raised it was all about money if you had.
[20:59] You didn’t even have necessarily BS talented of driver but if you had all the talent in the world and no money to put in a car you couldn’t prove it.
So now I’m I’m in deeply involved in the sport of bull riding as a bull owner,
I own the Bucking Bulls.
That started by sitting in a hot tub in Las Vegas drinking beer about 5 years ago
And so I currently own five bucking bulls one of them were taken in Las Vegas early November for the PBR finals and,
How much money you’ve won every time that you get on that animal.
They don’t give their jobs to throw you off and the other part of it is there’s no guaranteed contracts. If they don’t ride, they don’t make money.
Mm hmm. I like to see that.
Doesn’t hurt we drink a lot of whiskey and beer when we’re at these events too,
That is the most interesting side hustle anybody that’s ever come on this show and this is gonna be not like number 564,
That’s the most interesting one yet,
We just got a couple minutes left. Let me ask you, we’re gonna go to the random round table in my regular listeners. No. What we’re getting ready to do here. I’m trying to pull it up here. The random round table of questions for mister Derek Tombeck,
Best REI funding is best REI funding. Com make sure you go to Clean Look Insight and if you’re in the state of Wisconsin especially you need to hit these guys up for some money,
And when we’re offline I wanna talk to you about some other possibilities too but I don’t wanna put you on the spot.
[22:57] About that but I’m gonna put you on the spot here. Alright.
Question first question I wanna ask you already ask you what did you wanna be when you grew up next question if you could have dinner with anyone from history who would it be.
[23:11] Anyone from history.
[23:16] Hey that’s actually a tough question to answer because coming from construction background I never really I never really put anybody on a pedestal you know I never had.
[23:32] I wanna know I wanna know what was going through his head as as a founding father.
And the first president of the United States.
[23:40] Okay and I’ve I’ve I’ve put oh thought into that Roger so. That’s okay. Yeah,
If you go to enough these seminars on entrepreneurialism they’re gonna talk to you about creativity and passion what role does creativity play in your business.
[24:01] I love,
Doing things outside of the norm. I do not believe in a box.
I don’t believe in a box anything is possible if you are trying to accomplish a goal in doing it with more girls and ethics and helping people.
I’ll do as anything is creative as I can to get a deal done what there’s real estate or anything else alright let me ask you this,
Flat out are you passionate about the hard money business.
[24:36] I’m passionate about the fact that we get to take normal people and turn them into investors and give them much much better returns than they were getting before. And I’m also passionate that we get to go and work with people that don’t have access to money.
And it it does bring us joy I mean there’s a lot of our clients that.
Alright, one more question. Alright, no, I’m gonna ask you two more questions. How do you start each day versus how you wish you started each day.
[25:14] I usually read through my social media and my emails for 20 minutes.
Around how we want our personal lives to look. Awesome. We’re living it.
How do you find true wealth.
[25:42] It’s all about time I don’t I don’t care about money.
I was challenged a couple years ago because I was envious of a friend of mine who took a 30 day RV trip with his family and he said.
2021 we took a 5 week RV trip.
2023 it’s it might be 2 months.
[26:12] Money is money doesn’t matter to me.
[26:18] That’s a possibility if I can get it pulled to a crib in Ireland cuz that’s where my wife would wanna be.
There you go. No, that’s pretty.
Well, everyone, this is Derek Dombek’s website is best REI funding. Com. Does it right?
[26:44] Yes, sir. Best REI funding. Com and,
If you’re especially if you’re in Wisconsin and you have needs check em out but before we go tell us just a little bit about your mastermind because you mentioned to me the other day that you’re coming down south for some teaching or something,
Is advanced, you know, it’s not really for newer people. It’s it’s kinda taking you to the next level.
But it’s design in a way that we’re extremely proud of we we bring in non selling speakers they 5 day conference,
And we have lectures from nine until one each day.
We’ve got a 2 hour town hall session in the evenings and in all of his optional but the part I’m I’m very proud of it’s called the Generations of Wealth for Reason.
[27:48] We were handed this conference from our, you know, friends that ran it for years. We changed the name of it.
But we encourage people to bring their kids especially 10 and older. We don’t charge anything for their kids to be there. They can.
In sitting on as much or as little as they want,
But what it’s for is for them to build a network in their preteen and teen years.
[28:28] What’s the website for that conference?
And you know it’s go to website everything’s on there but it’s not a big event we we will cap it.
And I mean I would say 150 people maximum,
GOW Voyage. Com and I’ll have that in the show notes and,
For those of you that are watching, of course, you’re seeing it on screen right now. Alright, Derek, man is great. Great to meet you. Great to visit with you and let’s stay in touch. See how we might work with each other in the future, okay?
We’re using right now a series of quotes from Michael Scott of the office played by Steve Carroll and here’s your quote for today.
I’m an early bird and a night owl so I’m wise and i have worms.
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