Get It Right with Guest Merrill Chandler and Co-host Robert Orfino

TRE 29 | Becoming Fundable To Lenders


Are you ‘f’ able? Merrill Chandler is back with more credit sense as he talks with Jason Bible and Rob Orfino about credit scores, prepping LLCs, and setting financial goal dates to help you become fundable. Getting it right with your lenders, Merrill changes the conversation from good-credit-bad-credit to fundable by showing what lenders are really looking for. Together, Merrill, Jason, and Rob get down to the significance of gross revenue and tax returns among lenders, and give great tips on fitting the lender guidelines. Turn into a professional borrower by watching this great episode!

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Get It Right with Guest Merrill Chandler and Co-host Robert Orfino

This Is What Lenders Are Looking For

I’m making everybody jealous at my house because I have got a tan that’s almost darker than everybody. It’s great.

How were the waves down there? Was there more beach than we’ve typically seen?

Since the last time you went down, there were a lot of beaches but it still churned up from all that storm.

Will I be able to drive my car onto the beach there and get down to the public cycles? The last time, the water was all the way up.

That was in the middle of that storm. You could drive all over. It’s awesome. If you go way out at Mile Eight, there’s nobody out there. I went strolling around the beach there and then I had lunch. I got met with our keys and everything else. I got the keys. It’s a cool little beach house. I had this epiphany. I’m sitting there on the beach. I did a ton of Facebook Lives. We’ll put them all in the YouTube Channel at some point. One of the things that’s so much fun is you’ve got a couple of choices here in real estate investing. You can go and look at the stinky houses. They’re full of fleas and cat pee. It’s the “smell of money.” I had some smell of money and it smelled like the beach. That was so much better. I’m standing there. I’m like, “You’ve got a choice here. You can go hang out in stinky houses or you could be three blocks from the beach.”

I had a conversation with my agent. She said, “I probably got two more coming your way on top of the other two that we talked about.” Here’s the other thing I’m figuring out too. All these beach communities and we were in the hunting grounds, it’s a referral network. You are not flying in from Vegas or you’re not going to be the big Florida real estate investor, “I’m going to go take over Corpus Christi.” It is not a good old boy’s network but they want to keep these things in the family. “We want to keep this local. Are you going to be a good steward of this house?” We knew the family who lived there for 30 years. It is going to be beautiful.

I’ll tell you what we’re going to do at one of them. We’re going to do a turnkey Airbnb with owner-financing. We’re going to set it up. We’re going to get it running. We’re going to set up a little pro forma. We’ll have the numbers and we’ll hold the note and we’ll do owner financing on it. You just need to bring 50% or 60% down and then you’ll be under our management company.

50%, 60% down probably brings in $2,000 or $3,000 a month.

You’ll be 20%, 30%, 40% cash-on-cash.

I’m sitting there and it was so much fun. I got there and jump out of the truck. We had to do a bunch of photos for insurance. I got all the pictures to the insurance company. I’m sitting screened in porch and it was 95 degrees outside. It felt cool to me but I think it’s all the training I’ve been doing lately. I’m sitting there and I’m like, “This is so much better. It’s such a better way to invest.”

Do you like Surfside better than Cashmere Gardens?

Cashmere Gardens is going to pay for some Lamborghini eventually. It is going to make us a lot of money.

Lenders look at the top line, your gross revenue. They do not give a hoot about the bottom line on your taxes or your financials. Click To Tweet

These are Jeep houses. You want to get the Jeep that folds down at the open top.

Going back to these little beach houses, I walked down to the beach and it’s only a two-minute walk. It’s just three blocks. I walked down the beach and then I was like, “Let me explain to you the business model here. The business model is pick up twenty doors of duplexes, triplexes, quads and then pick up somewhere between three and five Airbnbs. When all that’s paid off, you ought to be somewhere between $20,000 and $45,000 a month net, all paid off, free and clear real estate. You don’t have to kill yourself with, “I’ve got to get 1,000 doors.”

“I’ve got to be just like Brad. He’s got 12,000.”

“I need 12,000 apartment doors.” I’m like, “No, you don’t. You need ten duplexes and five Airbnbs.” That’s it.

Because if you need more than that, you need a therapist because there’s something wrong. I’m a pretty positive guy. I’m going to do little tweaks here. There are tons of people doing real estate and it doesn’t bother me if you have a radio show or a YouTube show or doing Facebook Live. All that is fine because I’m 50-something years old and I can look at a 30-something and I can hear the words and see the actions and say, “This guy lives in fear. I don’t care what he’s driving. This guy is surrounded by fear. Give me five minutes and I’ll have him crying like a little girl.” Because I can see you’ve got real problems in your life and you’re covering them up with this Facebook fantasy. None of that stuff bothers me. I can do that but when people are like, “They only want to get to ten doors and we want to get your 20 to 30.” I’m like, “This is all you need. You don’t need to have this crazy world out there.

I’m friends with lots of gurus. I consider them real friends. If I had a problem, I could call and get free advice without getting put on the clock for the coaching hour. They’re good guys and women, but I don’t need to hear about the 1,500 things in here and the hundred you’re doing over there. At some point you, the reader or you the Facebook person watching us on Facebook or YouTube, you must understand that these people are compensating for something wrong in their lives. There are three things: health, wealth and relationships. People who dive all into wealth are neglecting the other two. I clearly have got a little health issue and I’m working on it every single day. It’s not out of my spectrum. That’s a fantasy world out there. We want our audience, the 200 people that are going to come along with us to become millionaires, we’re going to do it while we’re doing it because that’s the best time to learn. We want you to have an understanding that ten free and clear doors and five Airbnbs is a fantastic life. You don’t need the big numbers, the Lamborghini and the Venice trips. You don’t need that stuff.

You can totally have that $40,000 a month.

At $40,000 a month, you’re good. It’s all good. I know you’re twenty-something years old and you’re running through a crappy house in Irvington, New Jersey which is pretty bad. You’re running through Irvington, New Jersey with your Facebook telling everyone how great it is. I know that’s not great because I won’t do work there.

I responded to a post in one of the private groups that I’m involved in. I’ve put a video in there and this guy said, “I need to work on my five because I’m grossing right now and the wholesale fee is $43,000 a month.” All I did is I posted in there and I said, “I’ve been there and done that. I sold that company. Get out of that as fast as possible.” I’m waiting for all the responses like, “This guy is killing it.” I’m like, “No, you’re not. You’ve got all your overhead and you’re paying 50% at least.” If he’s doing it to that level, he’s probably paying close to $65,000 for taxes, self-employment tax, all that other stuff. You’re not killing it, trust me.

There’s a guy out there and he’s like, “I bought it at $80,000. The ARV is $600,000. I’m going to wholesales. I’m going to flip it.” I’m like, “You’re going to get crushed on taxes.” There’s not a $200,000 spread on that. $120,000 is disappearing overnight.

Rich Driggs sends me a text during the show and he had this chart. He said, “Margins on flips are being crushed.” He sent me the data. It was from Axiom and he said, “I think it’s some of the wholesale fees.” I said, “I don’t think that’s it. It’s the market slowing down.” You had all these bad wholesalers who had this crazy appreciation that bought it $0.85 on the dollar and got bailed out eight months later at $0.75 on the dollar. Their profit came from appreciation because the flip took six to twelve months. I said, “That’s all slowing down. It’s all stopping.”

We’re not going to teach you how to build a real estate empire. We did it already and I don’t want it. We’re at the point where we want our friends, our co-millionaires joining us at the beach. Whether it’s a beach in Texas, Florida, Jersey or California, we want you to come along with us on that journey. That’s who we are and we don’t care about all the others. You can rip us off, you can mock us, you could do all that stuff. I can tell you, you’re not our competition. We know who our competitors are in the world that we live in and you’re not them. We’re totally okay with you taking our stuff and not giving us credit or knocking us down. It’s okay because you’re not my competition. I know who our competition is. I know what we’re building.

TRE 29 | Becoming Fundable To Lenders
Becoming Fundable To Lenders: There are three important things in life – health, wealth and relationships. People who dive all into wealth are neglecting the other two.


It is funny to go through our Facebook feed and go, “We did that a month ago.”

That’s the last little bit for me. It’s all going to be happy times for the rest of the show but I’m saying, I know who the competition is and it isn’t you. We have Merrill Chandler from CreditSense. We have a huge event coming up and let’s get right to it. There are nine seats left. You can no longer register online. You will not be allowed to pay at the door. I’m going to give you my number then Merrill’s going to give you an email address. My number is (281) 401-9008. Text me immediately with your email address if you want to get invited. Merrill, there’s another email.

It’s, this is first in time, first in line. It may be full by the time the segments over on the show. If your name is there, we will contact you and register you by hand because the automated system is shut down. We’re going by the time slot that he gets the texts.

The phone number is (281) 401-9008. Let’s make sure you register because there are only nine seats left. You will not be allowed to walk and pay at the door. That is not happening.

We’re going to have that announcement running in a loop out in the lobby.

Merrill, we got to speak to Ethan on your team and it was interesting. I know that Kathryn and I are very close. We met and had that first review after having a little bit of the layout but we’re close. Our credit scores are eking up. We have a pay-down schedule and then we told the world. We started a number of LLCs in the last few months and they were all funded off by my credit card and Jason’s credit.

Our utilization went through the roof. There are certain things that make us unfundable. Remember, we’re changing the conversation from good credit, bad credit to fundable, not fundable. It’s good credit but you push those utilizations.

We pay on time. We’ve got great credit history

You’ve got great assets by being able to do that. There is a way to leverage your personal, which we’re going to be learning about.

We had our conversation and we have a little 90-day plan and we’re doing it. We’ve already started it. Credit card payments to do, we paid on time, we paid exactly how much you told us to pay. We’re taking care of that. We don’t use the credit card until the reporting is done. It’s another little hack you’re going to learn.

You’re going to love this stuff.

It’s great stuff. The video you sent out, the prep on the LLC was beautiful. I watched that and I know everyone in our Facebook group was like, “Have you watched it yet?” I’m like, “I’ve watched it. It’s great.” We’re moving along that trail. We’re doing exactly what you are telling us to do. We had a great conversation with Ethan about, “I’ve got three places we want you to land in your 90 to 180-day journey. We think this is going to be $100,000 unsecured, $200,000 unsecured, 10% of your business transactions unsecured.”

There are two things we're always looking for as real estate investors - deals and money. Click To Tweet

You are all terrified and be like, “I don’t want to do my tax returns,” because your job as an American citizen is to pay low taxes. Lenders look at the top line, your gross revenue. They do not give a hoot about the bottom line on your taxes or your financials. They want to know what your gross revenues are and they will lend 10% to 15% of your gross revenues. If that’s $300,000 because you got four multifamilies, you’re in, that’s $30,000. You do that with ten different banks for $30,000 starting on these what we call trophy lines. $300,000 right there, write a check and do a deal. Your faithful audiences who are already registered, we’re going to have a blast.

I can’t wait because we know we have a lot of serious people coming. I can’t wait for those people to realize they are 90 days away from a couple of hundred thousand dollars. We’re looking for that.

Let’s put it this way. The other teacher says, “Are you “F”able?”

The “F”able is for funding

Fundability will be your new favorite F word.

I love this kind of marketing. It’s like the same stuff Scott Carson does and it’s on the edge. Part of marketing is pattern recognition and breaking patterns. When people hear that they’re like, “What’s going on here? What are you talking about?”

If I’m anything, I’m a disruptor. My job is to upset the applecart because lenders and borrowers have this adversarial relationship. It’s BS and it doesn’t have to be. If we, first of all, know the lender guidelines, fit the lender guidelines, they will fund us hand over fist because they only make money when they lend, but we’ve got to know what we’re doing.

I love this dating scenario because it’s a great analogy. It’s like how do we look good for the ones that we want to attract? Bankers are out there. Everybody wants to get some money. Everybody wants some money. Bankers are like, “Who are the ones that are going to work best with us and we can make the most amount of money with the least amount of risks?”

Think of the lenders are supermodels and you can date a supermodel.

I’ll also let our lenders know that once you have a $250,000 line of credit, Jason and I have a $250,000 line of credit, we don’t need second loans anymore. We’ve got to six on the board. They’re gone. We’ll be able to stroke a check for those. If you’re interested in lending, there’s a smaller window here than you think.

Imagine this where you’ve got first is a 5.5% to 6% interest with a local bank. It’s 20% down and then you’re pulling your credit line from another bank, which is unsecured at 6% to 7%. Your total cost of capital is 5.5%, 6% and 100% funded. It’s free money. I won’t get into the math, anything under 7% is free money.

We want to ask people to come on that journey because that’s how I make a millionaire. We have Merrill Chandler here from CreditSense. We’re going to be doing a bootcamp with him. It’s exciting, text me at (281) 401-9008 and I’ll text you the email address back or you could go ahead and email directly to It’s $97 for the weekend or $197 plus $29. You have two choices, either $97 and then when we talk about it at that boot camp, you realized you might want to stay on the subscription or $497 so you can work directly with Merrill and there’s a $29 re-occurring so you get into his Facebook groups and his live feeds, all that stuff. It is worth it. Trust me, pay the $497 plus the $29 a month. That’s the model to go after. If it’s a stretch and sometimes in my life, $497 has been a stretch. I get it, pay the $97.

TRE 29 | Becoming Fundable To Lenders
Becoming Fundable To Lenders: Lenders and borrowers have this adversarial relationship. It’s BS and it doesn’t have to be.


Come once and then if you want to upgrade, we’ll allow you to do that out there. I do have a money-back guarantee that says at the end of the first day, if your hair is not blown back with fundability awesomeness, then ask me for a refund, I’ll give it back to you but you don’t get to go to the second day.

We do twenty minutes on the phone with your team and we’re like, “It’s the best money we’ve ever spent.”

It’s me and my team but seriously, this is no joke. This is some great stuff.

There are two things we’re always looking for as real estate investors: deals and money. That’s never ever going to change. We laid out the example and maybe we’ll break that down even a little further of buying long-term cashflowing appreciating properties at 6%. This bootcamp is absolutely critical in getting that type of money.

I can’t teach in two days everything that I’ve learned and gathered from all the FICO conferences I’ve been to. What I can do is teach you how to stop stepping on the funding landmines. The things that are blowing you up. You’re walking into a lender with your credit application saying, “Please don’t lend to me,” right on the application. You might as well write it in big red letters, “Please don’t lend to me, but pull an inquiry anyway.”

“Go ahead and hurt my credit. I know you’re not going to lend to me.”

It doesn’t have to be this way. You can’t win a game unless you know the rules. I was on the plane and we’re circling Dallas because they wouldn’t let us land. It was insane. I was like, “What constitutes a professional?” A professional is somebody who doesn’t know high school ballers know how to play the game. What makes you a pro? What does make you NBA Champion? It is not just knowing the rules but mastering that game. Literally, being the best of the best. The whole point of the fundability bootcamp is how to become a professional borrower like NBA level compared to streetball.

Merrill, that’s a good point. This is a little bit of mindset shift where you go, “I go to the bank and they figured out and give me some money.” There’s a difference between a professional borrower and an amateur, just like there’s a difference between a professional rehabber and an amateur or someone who rents out their beach house versus someone who runs an Airbnb business. There’s a very big difference there. That big difference is profitability when you get down to it. Do you run a profitable enterprise? You can continue to borrow and get rejected, run around and do all these different strategies or you can start these bank relationships so you can work with your hard money lender and borrow more and build a real business.

I was on the phone with one of my Valley clients. I get involved in my Valley clients and their whole fundability process. I call up this Atlanta branch of Fifth Third Bank and have this conversation. I’m vetting the bank with my client on the phone that I’m his business manager and helping build the relationship. Knowing the questions to ask, this lender was like, “We can do that. We go to $100,000 unsecured, is that okay?”

I will tell you and Rob had this experience because we’ve been trained how to do this. It’s very different when you are vetting the supermodels. When you’re vetting them, they’re like, “This guy is different.” Rob is sitting there vetting this bank, we give these banks a hard time. We know what’s going on but someone blurts out, “Nobody talks to these guys like this. Who are you? What is going on?”

We got the funding game. When we start vetting and we’re not nagging them. We’re not dissing the supermodel bank. We’re saying, “I know what I want. I don’t know if you’re it.”

“Let’s have this discussion before you see everything else before I spend a lot of time with you. Let’s figure this out.”

You can't win a game unless you know the rules and master the game. Click To Tweet

They’ll ask you a few preliminary questions like, “Do you report to my personal report?” No, I don’t like you anymore.

We found a lender when we asked that question. He’s like, “No, we only do softballs.” I’m like, “You just moved up the list.” You’re right up there.

You’ve got to ask the right questions. What’s fascinating is as a professional borrower, when you start asking the right questions, the other professionals recognize your skill.

They totally do. They will give you props for, “Nobody asked me these questions,” when you’re vetting them.

We have the property conclave happening at our office. You may want to stop by.

I checked in on that Mercedes 300 SL. I’m hoping somebody bought it for me. It went for $1.2 million. We can use an unsecured line of credit to go buy a 300 SL.

It’s a depreciating asset but even in our fundability plans for our clients, we have what are called vanity purchases or lifestyle purchases. Depending on who I’m talking to on the phone and how big their ego is, I call it vanity purchases. Otherwise, it’s a lifestyle purchase.

A lot of people also have this thought that there are certain things that are the kiss of death like BK, divorce or something like that. It’s like, “I’m done. I can never get it again,” but that’s not the case.

We’re changing this conversation from good credit, bad credit to fundable, not fundable. You could have a flawless payment history and not be fundable. You could have a derogatory account and be fundable. I can’t say that if you got a bankruptcy a few years ago, you’re going to walk in and pull a $95,000 line of credit out of the gate. If you build the relationship, there’s this crossover point that says the relationship grows as your score and profile improves. We call it the velocity of credit. At that crossover point, you will get funded. Fundability, you just got to know what they’re looking at. I’m writing my book. I am finishing editing Are you “F”able? and one of the things that I did a deep dive on was the process of creating that when you’re crossing the fundability thresholds, you can watch lenders like popcorn. It’s like, “Hold it, you’re viable,” and you start seeing. We’ve had people who have bankruptcies and late payments or collections, things that we haven’t been able to legally remove from their credit profile but it doesn’t matter. Lenders want to lend but they want to lend to a sure thing.

I cannot come up with a better analogy. It’s that first date in high school and they’re like, “This guy’s got nothing going.” On the first date, “What’s going on here?” All of a sudden, “This guy must have something going on if she’s going out with him. What’s happening here?”

To shift the metaphor, when there’s fundability in the waters, the lender sharks are going to start circling, “I want a piece of this.”

There’s something here that someone has found value by reference.

TRE 29 | Becoming Fundable To Lenders
Becoming Fundable To Lenders: As a professional borrower, when you start asking the right questions, the other professionals recognize your skill.


You’re getting kissed in the dating metaphor. The second you are perceived as fundable, I imagine thousands and thousands of lenders out there looking for professional borrowers that they can trust. One of my clients was being buried in money because they have a $680,000 single credit line for a property acquisition line. It was crazy. Plus $90,000 unsecured deal, the old stuff.

We’re not talking about the letters you get in the mail that says, “Jason, you are preapproved for $50,000.” People are getting that in the mail and they’re thinking, “I must have a good profile.”

We’re going to be talking about that entire process, how you run. If you get an application or an offer of credit, either personal or business, there are codes in there. They’re saying, “Here’s your activation code. Activate your account now.” Run, those are indicators that tell lenders you’re susceptible. I’m going to even tell our audience how to raise your credit profile value by getting off the mailing list that sends those events. Lenders don’t want somebody coming in after them being offered more credit. After you’ve given them $20,000 credit card or they’ve given you $20,000 credit card.

There’s another analogy to this too. As we’re buying more multifamily and the single-family assets and some of these small markets, once you close, you’ve got the ability to perform. People start calling you like how many pocket listings we’ve gotten, from wholesalers and from agents that are like, “These guys are the real deal.” That’s literally what happens. It’s like the second deal’s done and we’ve got another one for you.

We have a big event here with CreditSense. Merrill Chandler’s back in town. Remember, you can’t show up and expect to get in. We’ve got to register here. There’s a little bit of homework we need you to do.

You’ve got to get your FICO credit scores. There are 28 FICO credit scores and we’re doing a deep dive on those.

It’s or (281) 401-9008. I will go ahead and text you back the information.

This is not a seminar where you’re going to sit there and drool on yourself and wait for the pitch for the $997 package. This is a bootcamp. This is training. You’re doing stuff in real-time.

This is a workshop. We call it bootcamp because that’s what people in the industry responded to, but it’s a fundability workshop and there are five documents. We have all this great stuff. Let me assuage everybody for any fears they have that this is just a pitch event. Here’s the close. We have coaching packages. If this is right for you, do it. If it doesn’t feel good, don’t do it because you will suck as a client. There’s the close. That’s it. You heard the whole everything else besides what I spoke to you, everything else is 100% about building long-term fundability and stop stepping on the funding landmines.

If you want any of this information, it’s (281) 401-9008. See you at the bootcamp.


Important Links:

About Merrill Chandler

TRE 29 | Becoming Fundable To LendersMerrill Chandler, the CEO and Chief Strategist at, has been an influential player in the credit restoration industry for over 21 years and has co-founded numerous successful credit restoration firms around the country, including Lexington Law. Unsatisfied with the results of credit repair alone, Merrill has used his extensive knowledge of credit reporting and credit profiling to single-handedly invent and dominate the credit profile optimization marketplace.

Since 1997, Merrill and his staff of advisors have assisted real estate investors, business owners, entrepreneurs, and savvy consumers nation-wide to create FUNDABLE Tier 1, and even 800+ credit profiles. Today, CreditSense’s credit profile optimization process has no equal, especially for clients who want to leverage their financial reputations towards wealth and prosperity.

Through superior client relations, Merrill and his team have maintained an A+ Better Business Bureau rating for over 21 years.

Merrill is a compelling and knowledgeable keynote speaker and has addressed real estate investment conferences and businesses forums around the country where he has delivered his popular credit-empowerment forum, “Insider Secrets to an 800+ Credit Score.” Adventurous and passionate, he is an extreme sports enthusiast and enjoys traveling all over the world.

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