Creative Real Estate Financing: Syndication, Passive Income, and Mortgage Funds

Creative Lending Options for Real Estate

"Creative real estate is anything where you're not putting 20% down with a 30 year mortgage found in the MLS." The truth is, you don't need to be a millionaire to turn real estate into a wealth-building tool.

Today, we're talking details on real estate financing - both for aspiring investors and those looking for alternative investment opportunities! Our guest is real estate investor and private money lender Kevin Amolsch.

With over $750 million in closed loans, Kevin has a wealth of experience to share on financing strategies for all types of properties. In this episode, you'll learn:

• Real Estate Investment Structures with Friends and Family: Different ways to structure real estate investments, including LLC formation, joint ventures, and profit-sharing strategies.

• Financing Residential vs. Commercial Properties: The challenges of financing residential properties with stricter down payment requirements. Learn how commercial loans offer more flexibility for investors.

• Syndication Deals: How investor funds are used for down payments in syndication deals, a way to pool resources for larger projects.

• Creative Real Estate Investing: Alternative financing methods like owner carry and lease options, needed especially in low-inventory markets.

• The Importance of Creative Financing: Why creative financing strategies are important for investors, especially in competitive markets.

Links:

Follow Kevin on YouTube - https://www.youtube.com/pinefinancial

Connect with Kevin on LinkedIn - https://www.linkedin.com/in/kevinamolsch/

Time Stamps

00:24 Guest Introduction: Kevin Amolsch

01:03 Understanding Creative Real Estate Investing

02:48 Financing Real Estate Deals

03:32 Passive Real Estate Investing Explained

05:43 Equity vs. Debt Investments

07:05 Challenges in the Current Real Estate Market

11:43 Syndication and Fund Management

17:16 Practical Tips for Real Estate Investors

27:04 Conclusion and Contact Information

• Transcript

  Introduction to the Podcast

  Welcome to me financial the podcast designed to inspire your financial life. Hello everyone. And welcome to the mean financial podcast. I am Michelle Moses, your host. And today we are going to be talking about creative real estate investing, and this is going to include passive real estate investing and real estate.

  lending funds.

  
  Meet Kevin A. Mulch: Real Estate Expert

  And to talk about this, I have Kevin A. Mulch, and he is a successful real estate investor and private money lender. He and his companies have closed over 2, 500 transactions as a buyer, seller, or a private money lender. He currently manages multiple mortgage funds with almost a billion in closed loans.

  So you have a little experience. Thank you for coming. Thank you so much for having me, Michelle, and you got my name right. You were so worried about it. Well, I just think it's a very respectful thing to do is get somebody's name right. So, uh, and you know, you never know. [00:01:00] And, and I'm happy to be here. Yeah.

  Thanks for coming.

  
  Understanding Creative Real Estate Investing

  Uh, so you obviously have a lot of experience with all of this, and as I was sharing before we got started, I'm excited to talk about this for my own personal reasons, right? And I know that a lot of people want to get into real estate investing. Uh, obviously because it tends to be the largest, uh, asset that people have in their portfolio.

  Uh, and it's fun and it's tangible, right? I mean, people understand real estate and they get it, the going up and down and the fixing up. And, uh, it, again, it's very tangible versus like the stocks and the bonds. Sometimes people don't understand those. Uh, so what, it, like, can you kind of explain all of the.

  I guess the creative real estate investing and, you know, what types of things that would include. Yeah, so creative real estate can mean a vast amount of things, right? So you think about real estate and we think about rental properties and [00:02:00] landlording or fix and flips, but the world of real estate is so much larger than that.

  Um, so it's hard to answer that question, Michelle, but I can tell you in general, the general answer would be the financing. So how are you going to, you find a property you want to buy. How are you going to fund that deal? Are you going to use some, some creative terms like owner carry or taking over loan payments, or maybe it's a long lease with an option to buy or an obligation to buy?

  Or is it other types of investing like you mentioned in the intro, maybe a passive investment where I don't, Oh, Maybe I'm a little bit more hands off, but I'm still involved in the transaction. So it's tough to answer that question because it can mean so many different things, but I would say creative real estate is anything not like you're 20 percent down 30 year mortgage found in the MLS.

  Right. Well, and I think you hit on it that that's where people get stopped is how do I finance this thing? Like we all have like really great ideas or look at this, you know, house on the corner. I would love to do something with it, but I [00:03:00] don't have enough money to do it because it takes hundreds of thousands of dollars.

  Uh, and when you talk to people that are very successful in real estate, they're like, well, I don't use my own money. I don't use my own money. But the, what I really want to answer on this podcast and what I really try to do is get to The nitty gritty, like where the tire meets the road and tell people exactly how these things are done.

  Because I think in online, we love to throw out all these terms about, you know, well, then you negotiate it and then you put it in the contract. But like, what is in the car, you know, like that kind of stuff.

  
  Passive Real Estate Investing Explained

  So let's start off with the first one of the passive real estate investing, because I'm very interested in what you have to say about this and what that is.

  Yeah, so this is super relevant right now because we are in a challenging market for real estate investors. Inventory is extremely low, making it harder to find projects. And when you have low inventory, Michelle, you have owner occupied buyers, like retail buyers [00:04:00] buying the wholesale stuff. So they're buying the foreclosures.

  They're buying the properties that need some rehab before they can move in, which is just driving up prices and making it hard for you and I to go out and find our deals. So obviously we want lots of inventory, lots to choose from. And then there's a clear separation between a wholesale price and retail price.

  So right now it's very difficult. So we have to get more creative to make money in this industry right now.

  
  Wholesale vs. Retail Pricing in Real Estate

  So what can you explain the difference between wholesale and retail price for the listeners? Yeah, so wholesale price. I mean, think about like a Walmart. So they're going to buy a widget, right? And so they pay one price and then they resell it to you in their store off the shelf for another price.

  So the wholesale price will Walmart. pays is much lower than the retail, what you pay you and I pay. So in real estate, you got to think about properties that you're going to be buying at the lowest prices. So maybe there's a foundation issue and no retail buyer wants to own it. Um, lots of times it's foreclosures, um, or other financial [00:05:00] distress.

  So you might see bankruptcies or tired landlords because tenants are wrecking the property. Those types of properties are what I would consider a wholesale. Okay. All right. Uh, and so how do people get into passive real estate investing? Like, how does that work? Yeah. So that's where I was going with this is, is because it's so difficult to find projects right now, what we're seeing is more and more investors coming in on the passive side.

  And there's a lot of opportunities here. So there's really two ways to passively invest in real estate. And when I say passive, I'm not talking about owning a rental property, because anyone who owns rental property, no, that's not passive. So passive is truly like, You're on the beach sipping your cocktail and the money just keeps on coming in.

  You don't do anything, right? So there's two ways to do it.

  
  Equity vs. Debt Investment

  You could be an equity investor or a debt investor. So on the equity side, think about your, um, your large apartments, your commercial projects where there's a sponsor or a managing member, and then you have other investors join you on your team, but they're just, [00:06:00] they're just providing the money and that's it.

  So the advantage is to, um, Investing in somebody else's project as equity is you're part of the owner. So you get the tax benefits, you get the appreciation. If there's cashflow, you get the cashflow. The downside is. You're one of the owners. So if there's a, if there is a downside, you're going to participate in that as well.

  So I can tell you, I'm in five different syndication deals right now, and only two are performing as planned because the environment's changed. And so syndication deals means there is a large pool of investors, correct? It could be a large or small pool. Um, a syndication just means bringing people together to accomplish a common goal.

  So if you're buying an apartment building, a lot of apartment syndications are happening, right? So if you want to buy a hundred unit apartment building and you can't afford it, maybe you bring in four investors for a million bucks a piece. And then you have 4 million bucks that you can use for a down payment.

  And then you manage it. Those four investors are on the sideline, right? taking the checks. Okay. So that would be a syndication. Okay.

  
  Navigating Real Estate Syndications

  But one of the [00:07:00] problems with the syndication model or an equity investment is you participate in the downside, as I mentioned. So there's capital calls. If, if the project needs more money and there isn't any money, well, where do you think the manager is going to go to get the money, right?

  They go to the owners of the property, which would be you. Um, so that's, that's definitely a downside and it's happening. right now.

  
  The Role of Property Managers

  So are the managers mostly people that are hired or do they normally have, uh, are they normally invested in the deal too? Oh, that's a great question. So there could be, it could be anything, right?

  We're creative. We can be doing anything we want. So very often it's structured where the manager has very little or even no money into the transaction at all, but they're just managing the LLC or the partnership or the group, I guess is a good way to describe that. Now they might hire outside management.

  So you can't, it's hard to manage a hundred unit building by yourself, right? So you might hire a property management company to help fill those up and do the remodels and all of that. But when we're [00:08:00] talking management of a syndication, usually we're talking about internal. Okay. All right. Uh, and so the passive is really, you're giving your money and you're just participating in a business, which that's kind of like the investments that I do, uh, that are in hotels or, you know, self storage or something like that.

  You're, you are a limited partner and the general partner is then the one that is So in these passive and what you're talking about data, the investors don't have any say in what color the walls are, or if the apartment buildings are going to be sold. Correct? Typically not. Okay. It's not always that way, but typically not.

  Okay. All right. Uh, we can get real into detail here, but I'm thinking about this. So I want to mention it. So, you know, you could have, additional tax benefits if you're actively involved. So maybe the manager says, Hey, let's vote on the color of the paint. So everyone's actively involved. I'm doing air quotes here.

  If you're listening and not watching. So it's, if you, [00:09:00] so now you've, you actively made a decision. So now you're active. So now you could be considered maybe a real estate professional for tax. And there's a lot of tax benefits with that. So I'm not a CPA. I'm not trying to get too far off track here, but I'm trying to answer your question that sometimes Passive investors.

  can take an active role, but not really active, I guess is the best way to describe that. Well, and I think that's what people are wanting right now, because they do know how much work it is to have a house or an Airbnb, you know, just to have assets in general.

  
  Challenges in Real Estate Investing

  And so if they've got cash, they would like to invest in something, get the depreciation from it, uh, but also just have their money work for them.

  And so that might be an easy way for them to be able to do that, uh, with minimal work, I guess. That's what I'm totally agree. Okay. It's just, it's just important to understand that you don't have control. Your money is going to be locked up. You can't just pull it out. And there could be a capital call, which means you would have to inject more capital or you'd be penalized, right?

  There's typically a penalty [00:10:00] built into the agreements. If you, if you get asked for more money and don't participate. Okay. So just be aware of all of that. Um, the other, the other one I mentioned was debt. So a debt investment is. It's way safer in my opinion, but you don't have the big upside, right? You're not going to participate in the, and to clarify, debt is your lender.

  Yeah. You are like the mortgager of the house. You're like the bank, right? So you get paid first and we, what we do is always be in a first position. So we're super secure. I like the debt side of real estate a lot because I'm not trying to hit those home runs. I just want the nice consistency. I want some stability.

  You're not getting that in other investments right now with all the turmoil and and volatility in the markets. So if you're looking for something with monthly reoccurring income, but you're willing to give up maybe the high potential and the tax benefits of depreciation, A passive debt investment might be well, and you [00:11:00] are the bank on that.

  And so if something were to go wrong, then you could just foreclose on the property and you're on the property. So it is extremely secure. The problem that I am seeing, and this is, I mean, just like hard money lending, right? I mean, that's kind of what we're talking about here when you're doing that. Is that some houses are getting so expensive in certain areas that like, say here in Phoenix, you can't really do that because it's going to tie up so much money, uh, of putting 000 into one house, uh, versus, uh, what I'm seeing is a lot of hard money lending is going over to Oklahoma and Alabama and all these other where people can buy a house for 100, You know, people are wanting to fix and flip them and all that kind of stuff.

  Is that a true statement? I think so, but what we might be missing here is you could syndicate debt also. Okay. So if you have a 500, 000 loan, that's what's needed to do the project. You could bring in five people, 100, 000 each and all participate. So we call those fractionalized notes. Okay. Obviously the [00:12:00] downsize to a fractionalized note is who's in charge.

  So if there's a default, then someone's got to manage that, right? So that's why we're seeing, um, We're seeing more and more debt funds pop up. Yeah. This would be, this would be like a, it's all registered with the securities and exchange commission. And it's a, it's a fund that you invest in. And the only thing it does is make loans to other investors.

  Um, I love those a lot because they're very diversified. Yeah. I think there's a default. Yeah. There's a default. The money keeps coming in. Right. And then you have a set designated manager. So if there is problems, you know, exactly who's going to fix it. So I like debt funds. Yeah. Yeah. No, I think that's a great idea.

  Okay. Uh, and then what are some, and so that would be kind of what I mentioned at the beginning, a real estate lending fund, right? Because you're, you're basically putting your money into this fund.

  
  The Importance of Trust in Real Estate Funds

  And I find with that, you really do need to trust the manager, right? Because you guys are the ones that are approving or denying the applications for these fix and flips or long term, none of them are [00:13:00] long term, right?

  Because then you'd have to be designated as a bank. Okay. Is that right? Exactly. And then the big, the, the one that I get the most Michelle is, well, how do I know you're not going to run off with the money to Mexico or whatever, right? So the, the thing about real estate and most of your listeners probably know this, but this is the most transparent asset in the world.

  I mean, everything gets recorded at the counties. the ownership and who owns the loan. So the debt gets recorded also. So you can literally just call up the county and say, who owns this and how much is the debt and who owns the debt. And it's, so it's very transparent. So it's not like, it's not like the stock funds.

  Absolutely. It's just so hard to see where the money is going. Yeah. You can definitely track the money in these funds. Yeah. Whereas I, and I deal with a lot with alternative investments and I say the same thing. I mean, some of these people go out and they want to build a, and I use this example a lot, but in our, uh, You know, an RV park, or they're wanting to build a building, you know, down at 69th and Oak or whatever it is.

  And you don't know that they couldn't run away with it. I [00:14:00] mean, you know, they could put together this very sophisticated deal, and then you invest in it. And then yes, they're gone. So when you are doing these deals, and that is why we have, you know, register with the SEC, and we have all this oversight is so that people Can't invest with some sort of trust, um, with people because it could happen, right?

  I mean, because what you're putting your money in is belief in this person, uh, because it is kind of a side thing versus investing in a stock at the stock market or a mutual fund like at Vanguard that you already know. Uh, and the reason that those are easy to invest in is because we have the SEC, you know, we have all this oversight, whereas we're kind of all going, you know, to another way because we want another way to invest.

  So yeah, all of that's true. There's two things. I should mention this because you can have private funds and public funds, most syndications. So that could happen in a syndication to the Ponzi type thing that we're talking about. So it's not limited to mortgage or debt funds. Oh, absolutely. And most, [00:15:00] most funds that you'll see in this industry are all what we call a Reg D, which is a private fund.

  There's no, there's no, um, real oversight. And a lot of times there's not even financials required for the government reporting. So what you might want to look for is what we call a Reg A fund, which is definitely public. And it allows for non accredited investors to invest in it and the sponsor can advertise, but there's twice a year reporting financials, audited financials.

  There's all of those checks and balances you would get with any type of public company. So for my listeners, I have done episodes about alternative investments. And so when I talk about accredited investors, they make over 200, 000 or half a million dollars in net worth without your home. And, uh, what we call regulation D.

  Private placements. That's what he's talking about. Um, and so some of those are for accredited investors, but over the last few years, they have opened up a whole new section for, I should say, [00:16:00] just regular people. Uh, and that is where we call what we call regulation A in our industry. And I really like them because it has opened up.

  You know, people, normal people do want to diversify outside the stock market and getting them into some real estate and I'm really glad that reggae is around, um, so that they can get into it. It's just not as popular yet. I think that it still has some massaging. Well, it's very expensive. Yeah. And it's, you have to have all the attorneys.

  You got to have the, so we have three different. CPAs, right? Mm-Hmm. We have our bookkeeping firm that helps us with all of our books, and we have to go through a third party auditor. And then we have our tax prep CPAs, so we have three CPAs for, for this fund. So it's, it's just expensive. Yeah. It's a lot of work and it's, it's hard to stay compliant, so people are not doing it.

  Yeah. Well, and it, I mean, when you have all those expenses, then it really eats into the return, so then you have to determine a. We, you know, people have to determine whether it's worth it. So I think it's awesome that you have a reg A cause I [00:17:00] haven't heard of a lot of people having them. So, yeah. So honestly, thank you for having them.

  Cause I think people who would love to invest in a reg a, they're just really hard to find. So, okay. So let's go over some other, what are some other like setups that you see when people are buying houses?

  
  Setting Up Real Estate Investment Groups

  Like, can we just talk about like if someone on Joe Schmo on the street, And they had friends and how would they go and buy this house and invest in it?

  Yeah, so let's I know this is going to go public. So i'm just going to share this I'm, not an attorney right and definitely check with your securities attorney whenever you start pooling money together What I will say what i've seen is people that are a small group and only friends and or family, they're not necessarily doing all the steps that the SEC would like.

  So you're not seeing the registrations and the notifications, the different things that you would have to hire an attorney for. They're simply putting together an LLC or a joint venture, and they're just coming together and they're spelling out all the terms on the document, and then they're doing the transaction.

  So I guess to help [00:18:00] answer the question, what I'm seeing people do is just start an LLC where there's a manager, managing member. And whoever else wants to get involved, take their little piece of ownership. And then you could structure that a thousand, maybe more different ways. What's very common is a preferred return.

  So the preferred return just simply means the investor, the passive investor or limited partner, same, same thing. They would get paid a return first and then the manager would make their money, right? So you'd like, we typically like to see preferred returns in these types of investments so that we know we're hitting at least a certain amount or we're hoping for at least a certain amount and then incense the manager to go out and do a good job.

  So very common. Preferred return and then some type of split on whatever profits above that return are. Um, that's, that's the most common way I see it. So are they financing the whole thing or are they just putting together funds for the down payment? It depends on, on the residential side. Financing is actually harder to get [00:19:00] than on the commercial side.

  So if you're looking at a Fannie Mae loan, for example, that's the best debt you could get by the way. So you want to max out your Fannie and Freddie, your conventional loans, um, 30 year fixed low interest rates, right? So you want to do as many of those as you can, but eventually they stop you. So you have to be able to figure out how else can I, can I do this now on the residential side, the conventional Fannie Freddie.

  They want the equity to be your equity. If you're signing on that loan, you need to show that you injected that capital into the project. So if you're bringing in private investors, one or two things are going to happen. Either you're going to get denied for the loan, or they're going to require that the investor signed on that debt also, um, in the commercial world, that's not the case, they don't really care where the, the equity came from, as long as there's equity, there's an equity injection.

  And so you see a lot of syndication deals on the commercial side, because I could bring in your money, Michelle, and then I could sign on the loan and then your money will count as my down payment requirement. Okay, so it's not the same as, you know, when you're qualifying for a house and they're like, where did you get this gift and it has to age so much in your [00:20:00] bank account and all that.

  Yeah, yeah. People understand that because they've gone through it. Right. A lot. I'm guessing your listeners are mostly residential investors. So. I wanted to just explain that difference. Sometimes commercial is just a little easier to operate in. It's, it's more creative. It's more flexible than residential, but on, to answer your question about how you would see it done on a residential property, yeah, it's really is both ways.

  If you want to pay all cash, you could absolutely raise the cash from private investors and do that. Um, and maybe even right now you can get a great deal because the interest rates are so high on the, on the loans. If you go out and get a loan, you're paying seven or 8 percent right now. So maybe it's a better way to go, but I would still say it's more common to bring in some bank debt.

  Okay to bring in bank debt for if you're doing a residential house. Yeah, either bank or conventional. Okay, and do you feel like everybody that comes to you that you can always find? I mean, most of the time you can always find a way to do the deal. Um, or is [00:21:00] it like 73? Oh, it's getting tougher. Really? It's tough right now.

  And here I'm trying to be as transparent as I can with you, but it's tougher right now because we have such a high demand for our loans and our money because banks aren't financing. I mean, we're like record low. If you look at the credit availability index from the Mortgage Bankers Association, you will see it's like at a record low over the past couple of decades.

  So credit is tight right now. So with banks pencils down, where are the investors going to go get their money? They're going to people like me. Yeah. And so we just have a lot of demand. So it gets to a point where I can't fund everything. So I have to turn down certain loans. And if I, if I have to get too creative to get a deal done, it just doesn't make business sense to do that.

  Right. But if there's, is there always a way to finance a deal? The answer to that question is yes. You just might need to bring in some, some help. Okay. All right. And I think that gives people hope. And, and that's what I've found, I think with anything, like if you, no matter what you want to do, it's always [00:22:00] figureoutable, you know, you just have to be able to make enough phone calls and, you know, partner with enough people and, and all of that.

  And that's what I'm kind of finding. And it's really interesting that, To me, how, so we had COVID and then all of the savings went up, right? And everybody had all this cash savings and, um, now credit is tight and people still have some of this cash that I would say people with money still have all this cash savings.

  And so they're looking for a way to return. And then this is what's happening is that people are kind of going over into the private credit market. And so I just find it fascinating of what's happening. And, um, and I don't think it's bad or good or anything. It's just, you know, the way of the world. Uh, so I.

  And I, I love how people figure out how to do deals and how passionate people get about real estate. I just think that not everybody can be in real estate. Otherwise it would be kind of, it would be crazy, you know, it would be out of reach for everyone. Um, but for the people that love it and are good at [00:23:00] it, then I think it's a, it's a great investment.

  I, I say this a lot, but it's, it's the only investment I know that's going to guarantee wealth. I mean, it really will guarantee wealth, but you have to have a long horizon because there's going to be some ups and downs. Um, but if you're in it for the longterm and you're passionate about it, you're going to get rich.

  I mean, there's just no question about it, but look, it's not just because it's guaranteed to get you rich. Doesn't mean it's going to be easy. Yeah, it's not a lot of people. A lot of people come into the industry thinking, look, there's a low barrier of entry, right? We just talked about Michelle. We just talked about how you can buy properties with no money down.

  You don't need money to go out and buy real estate. We know that. So that means it's a low barrier of entry. So a lot of people come in, but when they realize, well, I actually have to work, I have to find that seller that's willing to carry the note for me. I have to find these partners. Well, I don't want to put in that effort.

  So then the exit, right? So it's a lot of turnover. Yeah. Well, and do you find that really, that there's a lot of turnover and that people get in and that it's. So it's like, I've been doing this for over 20 years [00:24:00] now, and it's like, amazing, I go to a networking meeting and, and you were seeing the same people and then, and then the whole room turns over and now it's different.

  Oh, yeah, you don't see that in Phoenix or? No, I don't know. I guess I just don't. I mean, I don't know a ton of real estate investors, but I guess I just. Thought that the people that loved it, they love it and they're doing it. And, uh, that's not it. It hasn't been my world, right? And so I, it, I don't know. And so I'm surprised that it is turnover.

  So people are surprised. They think it'll be like HGTV and then it's not exactly. Exactly. They watch TV and they're like, this, this looks fun. I get to design and, and it's going to be easy. And then they realize, well, no, I actually have to work. And, and it's a lot of work. Yeah, it's a lot of work. I mean, there's a lot of little details that go into, you know, like the door jams and.

  Just all the little things lining up and, uh, passing code. Uh, so I did a house and knocked out some walls and did all this stuff and yeah, just the code and coming in and the things that you had to [00:25:00] install with the water and the sewage. And I mean, it was. Yeah, it was a lot, but that's why people passively invest, right?

  Right. Yeah. That's not a lot of work. You just need, you just need the money. Yeah. Yeah. But I love managing the contractors and doing all that. I think that's fun. And I, but I mean, as long as it's my investment, I don't think I'd want to do it like all the time, but, uh, it's, it's a good time when you have a vision and you see it come to fruition.

  Uh, but I am surprised because I guess I'm just not like that. Like I did it and, uh, have been more energized by it. So to hear that people get out of it, Um, that is surprising, I guess, just because it's not my world. What do you think about, like, you hear tenant horror stories, I'm sure you've heard these on your podcasts, but you get a good tenant horror story, that could push you out.

  And what do you mean, like, oh, you mean like, yes, how bad, yeah, I don't want to manage people. No, I've, I've had, uh, one tenant and they were amazing, but now that I hear. How people do squatting and just all kinds of stuff. There was a guy down the, who, [00:26:00] um, owned a house down the street and a guy like moved into his house while it was, he was trying to get it rented and he had to physically like remove him from the house.

  Like he had, he had, uh, barred himself in and all that or blockaded himself in the house. And it was like a really drama in the front yard. Yeah. I mean, just crazy stuff, right? That's a, that's a good one. I haven't experienced, I've had a, I've had a contractor move into one of my houses once, but that wasn't actually that big of a deal.

  Well, but they have squatters rights. And so that's what then they're trying to pull is this whole squatters rights thing. And I don't know all of the ins and outs of all of it. But then once I knew, yeah, what he was going through, I was like, Oh boy. So, yeah, I think once you get to know into all the nuances of your local codes Again, the tenant's rights and, and those types of things.

  Uh, and I have had a, uh, project or a, a, uh, what am I project or not a, a, uh, manager, a, you know, property manager. Property manager. I've had a property manager on the show and his [00:27:00] stories were, yeah. So there are some, I imagine, crazy things that can happen. Yeah.

  
  Conclusion and Final Thoughts

  Uh, well, I really appreciate you being on the show.

  I love talking about creative ways to. Get things done and creative ways for people to use their money because you never know what's gonna light somebody up. So, um, you know, I think if somebody is, was, you know, interested in what you're doing and that you have funds that people can invest in, uh, Oh, you know what, before we wrap up, can you tell me a little bit about the mortgage funds?

  Is it, is it the same thing where you doing a syndication and then you are giving out mortgages? Yeah, exactly. We are the Reg A, the public fund. Um, it's very, very simple. So we bring in money from private investors. We, um, we promise an 8 percent return. So it's a note. So it's a promissory note and you get, you get 8 percent and it's paid out every single month.

  So regardless of if the borrowers are paying or not, the 8 percent goes out. Um, so that's very simple. And then we just use that to make, yeah. loans on like fix and flips and you [00:28:00] develop like small new development infill type projects. Okay. Um, so that's, it's really simple. Um, pine financial group. com to get more information on that fund.

  Okay. Um, but yeah, I guess I, I don't know if that answered your question. Yeah, no, it totally answers my question. No, it's not complicated. And that totally answers my question. And then, uh, you guys will have, uh, his information, pine financial groups, information in the show notes, all the ways that you can get, uh, Uh, contact with him.

  And then are you, I know you're in Denver, but do you do loans all over the place? I mean, it doesn't matter. State is not specific. So we bring in capital from passive investors from all over the nation because it's the public fund. Now that when we lend it out, we are somewhat limited because look, there there's risk in lending.

  So we've got to be very careful, right? I mean, there's lots of different. things we do to be safe. But one of them is we're geographically focused. So we know we have people on the ground that could help us if there is a problem. So we're in four markets on the residential side, Colorado, Minnesota, Washington DC, and Wisconsin.

  I know it's kind of [00:29:00] That's how everybody is. Everybody's random all over the United States. Yeah. Okay. On the commercial side, we feel much safer in those loans for a variety of reasons. So we go outside of those lending areas on the commercial, but we're a lower loan to value. Okay. All right. Uh, well, yeah.

  And I was asking more so if people wanted to invest with you, they would just go to your website and find out some more information. And then I'm sure they could call and talk through things too. Okay. All right. Cool. Well, thank you so much for being on. I appreciate it. It's been really nice talking with you and, uh, thank you for listening, everybody.

  I hope that this, uh, help bring some clarity to how real estate investing happens on the day to day. And let me know if you have any questions.

Disclaimer: The information provided in this podcast is for general informational purposes only and should not be construed as professional financial advice. Always consult with a qualified financial advisor or professional before making any financial decisions. The hosts and guests of this podcast are not responsible for any actions taken based on the information presented.