In this episode, we explore the world of real estate investing with a focus on hard money lending and opportunistic fund strategies. Our guest shares their journey into the industry, insights on structuring a debt fund through a Series LLC, and strategies for buying defaulting loans and turning them into profitable opportunities. We discuss key investment criteria across asset classes like office spaces and retail centers, the synergy between debt and equity offerings, and the dynamics of successful business partnerships. Packed with practical advice for new investors and seasoned professionals, this episode offers a comprehensive look at creating value in real estate through innovative strategies and informed decision-making.

Introduction to Bigger Pockets and Real Estate Journey (00:02:11)

Don Konipol explained that Bigger Pockets, founded nearly 20 years ago, is a platform for real estate investors to share ideas and network. He shared his journey from banking in Switzerland to becoming a real estate broker in Houston in 1978, starting his investment career in 1981.

Evolution into Hard Money Lending (00:06:33)

Don described how he pioneered hard money lending by wrapping mortgage notes in 1981, following Jimmy Napier's 'Invest in Debt' book. He formalized his business in 2001 and currently manages a series LLC fund that allows investors to choose specific notes.

Fund Structure and Investment Strategy (00:08:11)

Don detailed his fund's structure, where each note is in a separate series LLC. Investors are grouped in tranches of 10, with 24-hour decision windows. He emphasized that Mitch and he personally invest 10-15% of each offering.

Loan Types and Terms (00:20:00)

Don explained that they focus on commercial loans, with terms of 12-24 months and interest rates of 12-13.5%. They work with various asset classes, including office spaces, retail centers, and specialty deals like marinas.

Risk Management and Default Rates (00:27:20)

Don shared that their default rate is 6.7%, with most defaults being short-term. He discussed their approach to managing risk through conservative loan-to-value ratios and careful asset selection.

COVID-19 Impact and Recovery (00:31:47)

Don described how they managed through COVID-19, including working with borrowers and their experience with retail properties purchased just before the lockdown.

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Please join Attorney Kim Lisa Taylor and co-Host Krisha Young as they interview Devana Came and Reid Stadelman. Our guests will tell us how they have created sober living facilities that provide both a community benefit and rental income. This is part of our Beyond Multi-family series, where we introduce our audience to alternative asset classes that they can turn into profitable business models (or you can just invest with our guests).

Introduction to Sober Living Housing and Personal Motivations (00:00:02)

Krisha Young introduced the podcast and guests Devana Came and Reid Stadelman. Devana shared her personal connection to addiction through family experiences and her motivation to create better sober living environments after seeing inadequate facilities.

Operational Structure and Community Living (00:04:13)

Devana explained how sober living houses function as mutually supportive environments, with residents typically coming directly from rehab facilities. She described management practices, including meeting attendance requirements and house cleaning responsibilities.

Neighborhood Relations and Legal Considerations (00:09:32)

The guests discussed their experiences with neighborhood relations, including dealing with pushback from neighbors and legal protections under the Federal Fair Housing Disabilities Act. They emphasized the importance of being good neighbors and maintaining property standards.

Financial Aspects and Investment Considerations (00:38:07)

Devana and Reid discussed the financial aspects of operating sober living facilities, including potential income levels ranging from $850 to $3,500 per bed depending on location. They emphasized the importance of maintaining quality while achieving profitability.

Future Plans and Expansion (01:01:38)

The guests shared their current operations of four houses with 71 beds, soon expanding to 76 beds. They also discussed plans to add residential assisted living to their portfolio to help with elderly care.

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In this episode, we explore the evolving landscape of capital raising in the commercial real estate industry. Is traditional syndication still a viable method, or are investors gravitating toward new strategies? Join our expert panel as they discuss emerging trends, innovative funding approaches, and the role of technology in reshaping how deals are structured. Whether you're a seasoned investor or just curious about the state of real estate financing, this episode offers valuable insights and actionable takeaways.

In this episode of the RAISE Capital Legally podcast, hosts Krisha Young and attorney Kim Lisa Taylor interviewed Adrian Fajardo from Cashflow Portal to discuss the evolving landscape of capital raising in commercial real estate. Adrian, a senior account executive at Cashflow Portal, shared insights about the changing methods of capital raising, particularly in relation to syndication. He noted that while syndication is not dead, it has become more competitive, leading investors to explore alternative methods such as blind pool funds and series LLCs.

Introduction to the Podcast and Guests (00:00:02)

Krisha Young introduced the Raise Capital Legally podcast, co-hosting with attorney Kim Lisa Taylor. They welcomed Adrian Fajardo from Cashflow Portal to discuss capital raising trends in commercial real estate.

Overview of Cashflow Portal and Adrian's Role (00:03:47)

Adrian Fajardo introduced himself as the senior account executive for Cashflow Portal, managing $10 billion of equity across multiple asset classes. He explained his role in sales, marketing, and client support, emphasizing the platform's evolution and commitment to continuous improvement.

Discussion on Syndication and Capital Raising Methods (00:06:42)

Adrian discussed the changing landscape of syndication, explaining that while the method is still used, competition has increased. He emphasized that syndication is just one tool among many, with emerging alternatives like blind pool funds and customizable series LLCs gaining popularity.

Technology's Role in Capital Raising (00:17:10)

Adrian explained how technology platforms like Cashflow Portal enhance the investment process, providing security and efficiency. He emphasized the importance of creating a secure, user-friendly experience for both investors and operators.

Emerging Trends in Asset Classes (00:21:44)

The discussion covered various asset classes gaining popularity, including development projects, flex-use buildings, assisted living, and alternative investments like oil and gas. Adrian noted significant growth in oil and gas investments, particularly at industry events.

Legal Considerations and Compliance (00:45:43)

Kim Lisa Taylor provided insights on securities law compliance, discussing 506B and 506C offerings. She emphasized the importance of establishing pre-existing relationships with investors and maintaining proper documentation.

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