How To Find Private Money For Real Estate | Real Estate Investor | Investing | EP. 24

Hey, everybody. Flip and Danny here, co founders of the Freedom Real Estate Group. Again, I have the shirt on. Family of companies.

All right, so this is vlog number 24. And today we are going to be talking about high yield cash flow with private lending. Now, this is really my cup of tea, so I should have probably given you some questions that get back in here giving you some questions to actually ask me. But we're just going to give you a brief overview of what private lending is. And actually, I'll have you started about your acquisitions, because I make jokes on my private lending calls all the time about the push pull between you and I. So why don't we start that?

Yeah, so we started raising private money, and then all of a sudden, we have this big pool of money. And so then everyone's yelling at me, we need more deals, because we've got all this money. So then I go out and, I mean, it's not just me, it's the whole team. So I don't want to make it seem like it's me. I just do what we do. No. So the acquisitions team goes out and gets deals, and then all of a sudden we get all these deals, and we're like, excuse me, we need private money. So it's constantly going back and forth and. And then just when I think I'm like, I've built up the pipeline. We got like, 20 or 30 deals coming in, and all I hear is, we need more deals. So it's a constant push and pull.

Yes. And actually, we're in the poll range for me, because you guys have so many deals that Tiffany, my transaction coordinator, she's the one that actually manages all the private money lenders, and she sends out the deals and she customizes it exactly for you. So we don't, like, blast out a deal and say, first come, first service. Hey, Flip says he's got $200,000 he's interested in starting in two weeks. And so she'll look at our pipeline. She'll send it out and say, hey, Flip. And this is the only one that he's going to see it, but he's the only one getting it. So he's got 24 hours to essentially respond. So we've got a deal right now. I think it's in Cincinnati, where it's one of our bigger deals, about $300,000. And she's like, danny, you need to go raise more private money. I was like, dang it, it's my turn. So I thought, what a perfect opportunity to do a quick Blog about it so we can start teaching you what it is. So private money lending is essentially working with people like yourself who have funds and you want to get good returns because what are you getting with your money right now? Where is it? What is the rate of return that you're getting? Because if it's sitting in the bank, you ain't getting jacked squat with inflation. So what, what you do is you essentially work with us and you become the bank. So if you went to and bought a house and you got a mortgage with bank of America, Wells Fargo, whatever, they're the bank, right? They hold the mortgage. It's exactly the same thing when you're working with us. So Flip finds a deal. Flip sends it over and says, tiffany, I've got this deal on a contract. Tiffany goes and finds a lender. You send you a funding packet with all the information, the comps, the pictures, financials, everything that you want to possibly know. Would you like to fund this deal? She'll say, here's the rv, here's, you know, the amount that we need here. We're going to close, we're going to close the date, we're going to close. And. And then she answers any questions that you have about the deal and then you go, yes, I'd love to, because I'm going to get a good interest rate. Right. We pay anywhere from 6 to 12% returns on our private money lending. This is backed by a note mortgage. So I don't usually talk returns because many times things are SEC regulated. This is backed by a note mortgage. You are the bank on one deal. One lender first lien position, totally different ballgame. So 6 to 12% is the returns. It really depends on your availability of funds. So $50,000 is the minimum in order to start lending with us. And that doesn't mean that we buy deals that are $50,000. It means that you might put in 50 and we're going to put in 20 because maybe the entire deal needed $70,000 between the purchase and the rehab. So we just balance it off and it allows people to come in with a smaller amount of money in order to just test us out, you know? Right. This is a new relationship. I always talk about the fact that private money lending is trust based. And yes, you have a note and mortgage. Yes, you can foreclose on us if we default. No, we've never defaulted. We've got an expert panel video that we did with a title company attorney, our CPA and cfo, a private lender. That's Been working with us for years and a self directed IRA specialist. We were very transparent, gave names, numbers, emails, everything. We said, hey, vet us. We've never defaulted on a loan. In fact, we've lost money on deals. Our private lender never lost money on the deal. And in fact that's the number one thing when I'm talking to people on the phone, they go, you know what I love the most about what you said is that you lost money, but I didn't. I'm in. So it's just a great way for you to get better returns. Work with a company like ours who does a volume number of deals because we are going to make mistakes. It's reality. And when I'm on the phone with people, I'm just like, don't think that we're not human. We are. It's real estate. And we're going to find something in a wall and go, whoops, that's crazy. But that's the nature of real estate. But if you're doing 10 deals a month and you win on nine and you lose money on one, it's okay. And the relationships that we have with our private lenders are the most important relationships because how did we grow this fast? Relationships because of these relationships with private money lenders and the people who want to win with us. So you're winning by getting higher returns, we're winning by doing more deals because we have these win win relationships. So that's kind of a quick recap. Do you think I missed anything?

Do you need to have like be special to be able to do private money?

No, not at all. That's actually a good question because a lot of people say, I didn't know I could get into real estate with only this amount of money. I didn't know I could use my self directed IRA. I didn't know I could use my 401k. I didn't know I could use many different tools in order to be a private lender. I didn't know I didn't have to be accredited. You don't have to be accredited to be a private lender. So anybody can do this and it's one small step and easy way to get in the game, man. You're not even on these calls and you asked a good question.

It happens every so often.

All right, is there anything else before we go?

I think that's it.

Okay, so that was our short blog for today. I hope that was a quick intro. If you have more questions, if you want to learn more about private money, lending. CJ is now my counterpart. Mark knows about it, too. Packer knows about it, Flip knows about it. There's a lot of people within our company that know about private lending and the program as a whole that you can talk to. But you're likely going to get on the phone with CJ because he is now taking over a lot of my calls so we can do things like this, events, vlogs, podcasts, you know, stuff like that. So ask him any questions that you want. And then Tiffany is the one who will take great care you once you're in her hands, she will send you deals and make sure we're keeping your money working for you as much as we can so we can get you good returns. Thank you so much for joining us for Today's vlog.

Number 24.

And we always like to end with Invest Smart, live happy. Bye, everybody. Bye.