Flip and Danny Robison explain three ways to lend money through their reopened private lending program: short-term loans secured by property liens, a three-year debt fund with about 30 days left to invest, or quarterly-paid master notes. Most programs require a $50,000 minimum.
Questions this video answers
12 months or less (12-month term typical).
$50,000 (typical minimum).
Three years (lockup).
About 30 days left to raise into the current debt fund.
October 10 (launched about two weeks prior to episode).
Hey everybody. Flip and Danny here, founders of the Freedom Real Estate Group family of companies. And welcome to another episode of a.
Podcast which is called Freedom through Passive Income.
That's right. And welcome to another episode. And this episode is called Become a Private Lender.
That's right. So we are opening up opportunities for more investors to become a private money lender. We have had this closed. This program has been closed for quite a while. Why? Because we created the debt fund. We told everybody about the debt fund and why we're using it. It's easier for us. It makes more money for our private money lenders. So it was a win across the board. We closed our private money lending program when that opportunity happened. The debt fund is also expiring. I think we have about 30 more days that we can raise into that particular fund and we have to create a new fund to raise more. So you've got two things that we want to talk to you about and explain what it means. Number one, private money lending. That program is now open. That is where you can lend on a real estate deal. You are secured by the note and mortgage. You are the bank. And best part, and what most people like about it is that it's short term. It's 12 months or less. You're going to have a 12 month term, but it's very likely we're going to buy rehab and sell the deal before that 12 month term is up. So it keeps your money fairly liquid. And that's like the thing that everybody raves about is I, I don't want to lock my money up for this much time. And not everybody, I say we have two pools of investors. The investors who want to keep their money liquid, the investors who want to just set it and forget it. And then we have investors who want to do both. But really it's two pools, they are divided between. So for those of you who want to keep your money liquid and you want that short term private money lending option open again. It's open. So here's your admonishment to become a private money lender with us and test it out and see, see what you think. All of our private money lenders, they would do their first deal and then be like, hey, that was fun, let's do that again.
Let's do that again.
Exactly. So we want to invite you to do the exact same thing.
And their first lien position on the property.
Yes, first lien position. So you are the bank. I can't remember if I said that.
Or not, but you said that. But sometimes People say, am I first lien or what am I? Yes.
Yeah, yeah, yeah. Good call. So first lien position, that means there's no other liens before you. It means if anything happens to the deal, you get your money first. If you're in second lien position, it means you have to wait for the first lien to get paid off before the second lien gets paid. Now, some of our lenders don't mind being in second position because we never go above a certain loan to value of a property. So we keep all of our investors in a very good position in terms of the equity that they have or the loans that they have based on the equity in the property. And those who have smaller amounts than $50,000, they just like the ability to be able to lend and they don't mind being in second lien. So that's something you can certainly talk to the team about if you're interested. If you don't have 50,000 DOL is typically the minimum to be a private money lender or get into the debt fund. If you have less than that, talk to the team about second lien position, what it means, what our LTV looks like, ask all the questions, that makes you comfortable. But we have a lot of lenders that do say, hey, I've got $10,000, can I just be a second lien to help with rehab or something like that. And we are absolutely willing to put your money to work in that scenario. So feel free to talk to us about that. So that's one thing. And then the debt fund, so that is 30 more days, that's when you're going to actually up for three years. You're going to lock your money going for three years. And that's the set it and forget it type thing. So you're going to get similar interest rates as the private money lender. But now instead of going in and out of deals, in and out of deals where people like that, if they're liquid now you get to put your money in and it works for you 24, seven for three straight years. So that's the debt fund again, 30 days left of raising money for that one. So if you're interested, talk to the team about that. And, and then master notes, we open and close these as we see fit. These are loans to our company that are used for deals that are used for business where we're growing or doing something like that. These are, you have all of the funds put into a separate bank account that is your funds at all times. So that we always know where it's at and what it's doing. You can call anytime and ask us where it's at and what it's doing. And then you're paid quarterly every single quarter. It's a very good interest rate. If that is something you're interested in talking to the team about, definitely talk to them as well. So those are all private money lending options. So if you're interested in getting returns, depending on your goals, whether it's long term, set it and forget it. Whether you want to have like, be a part of the business in terms of your lending capabilities and get a higher interest rate as a result, or if you want to be a private money lender on specific deals where you're in first lien position secured by note and mortgage and you have more liquidity, all of those options are there. We are opening them all up and closing one in 30 days just because of the nature of the fund. Every fund has. It has a liquidity dead date where you can't raise any money for it anymore. And the reason that we're opening these up, I forgot to tell you at the very beginning, is we started TV ads.
Yep.
So you want to tell them about the TV ads?
Yeah. So, and this has been something we wanted to do for a long time. And then we actually knew a guy that he started them, I think it was about a year ago. And he said, you know, he gave it great rave reviews. And so we just finally jumped in and the TV ads went out what, a week and a half ago?
Two weeks ago, October 10th, they launched.
Yeah. So just two weeks ago now. And the phone just started ringing.
Yep.
Just. It was almost instantaneous.
Yes.
And so it's leading us into new marketing directions. But that's, that's the key. And because of it, it's all said, and there's where we didn't think we had deals, as many deals coming in now. We've got a number of deals coming in.
Yes.
And so it's very. A good, bad thing to have.
Yes, yes. Tons and tons of deals. And we're like, oh, okay, let's open up our private money lending options again. This is a fantastic market. So for the people like us who know how to navigate a market like this, we are taking advantage of opportunities as they show themselves. Sometimes you have to change your marketing technique. Sometimes you have to lower your offers. Hello. That's what we're doing. Sometimes you have to come up with creative financing solutions for the sellers, depending on the house and the situation. So those are things that we know how to do very, very well. And so our company is positioning its to go ahead and take advantage of the market situation where people are fearful and they're not investing as much. And we are growing and we're going to buy the right deals and we're going to continue providing a return for our team and our companies and providing our investors a return as well so that we can keep growing through these times in which we are grateful that we know how to navigate.
That's right.
Yeah.
Well, excellent. Well, again, make sure you get in touch with us for these opportunities because like she said, one of them is closing in 30 days. And just because we have deals coming in doesn't mean that we're gonna take everybody.
Yes.
So make sure you get ahold of us and let us know. But make sure you're checking out our website as well. FreedomCapitalInvestments.com and join the investor club because of all the other things that we've got going on that we didn't even touch on on this episode.
That's right.
So make sure you're checking that out, making sure you're talking to C.J. and Ben. Make sure you're checking out all of our social medias. And also we end every episode with.
Invest Smart, Live Happy.
Bye, everybody. Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on the show are not guaranteed. All investment strategies have the potential for profit and loss.
