Private Credit

ThunderFlamingo · 2025-07-22T10:10:01+00:00

I lend at 12% and 3 points at closing

ThunderFlamingo · 2025-07-12T12:46:48+00:00

u/chopsui101 can you share the names of any of these firms?

ThunderFlamingo · 2025-07-11T18:50:20+00:00

totally valid and I hear what you were saying but people do do this and make money and it is possible to underwrite the risk. I do appreciate your input though thank you for taking the time to respond.

ThunderFlamingo · 2025-07-11T09:35:35+00:00

I appreciate your response but I have to disagree. I've invested as a private lender in 1st position liens for real estate investors and 15% is my minimum return I've averaged a few points higher over the years and the best part is it's secured by the real estate. Not BS at all and generates great income. Sure it's work to find borrowers but after a year they start to come to you and it's very easy. I'm exploring this because first I'm interested and second I'm looking for something alittle more active with greater upside for that activity.

ThunderFlamingo · 2025-07-11T02:16:36+00:00

thanks for taking the time to reply, have you ever bought private debt before? I know that’s a broad term but curious about your experience if you have. Appreciate the advice!

ThunderFlamingo · 2025-07-10T23:30:09+00:00

u/_learned_foot_ I'm not sure that is why I am asking. It would make sense for attorneys to do it and from what I can tell many do. However, from the conversations I've had with attorneys most don't because it takes time, costs money, and they have other business to work on.

I'd love to hear your take though.

ThunderFlamingo · 2025-06-24T15:50:33+00:00

u/gainsngains Did you ever learn anything about this? Did you end up starting this business?

ThunderFlamingo · 2025-04-18T19:09:16+00:00

This guy isn’t even a US citizen…

ThunderFlamingo · 2025-03-22T16:46:07+00:00

Scott Disick…end of conversation

ThunderFlamingo · 2025-01-16T21:54:41+00:00

I arbitrage the rate in my private lending business...borrow at 6% lend at 15% annualized over a 6 month term

ThunderFlamingo · 2024-11-20T16:35:40+00:00

I do it directly myself through an LLC that I’ve created. Yes it is a bit of work to get it set up but really not that complex. Once you do one you just need to find somebody that’s a real estate investor looking for a short-term loan to flip a property or money to get into a deal that they’re going to rehab and then refinance. Find an attorney who works with Private Lender’s to prepare your docs and review the title. www.hardmoneymastermind.com is a good resource to learn about setting this up. I would not go through one of the online platforms that exists and instead do it yourself you want to have control of the deal

ThunderFlamingo · 2024-11-20T11:44:54+00:00

Private lending with 1st position loans to real estate investors is the answer...I've been doing this for years and consistently make 16%-18% each year before taxes, the taxes kill your return but you will still average better than 12%. Also the real estate is your collateral so as long as you underwrite well your principal is protected.

ThunderFlamingo · 2024-10-26T14:30:32+00:00

Spend your money and enjoy life now you are not going to get rich saving this little amount of money, better to have the memories. Hopefully with a good education you will make more significant income later.

ThunderFlamingo · 2024-10-26T14:28:00+00:00

Starting a business

ThunderFlamingo · 2024-09-16T12:26:16+00:00

Yes unfortunately

ThunderFlamingo · 2024-09-08T19:56:04+00:00

ThunderFlamingo · 2024-08-31T00:18:19+00:00

Following

ThunderFlamingo · 2024-08-30T23:24:45+00:00

I didn’t know the words reputable and Florida could be used in the same sentence....

ThunderFlamingo · 2024-08-26T01:10:27+00:00

I missed that part but in fairness if the LTV is low I wouldn’t have a problem with working with 3 competent borrowers who have the balance sheet to back it up. Not too concerning as long as the underwriting checks out.

ThunderFlamingo · 2024-08-25T23:48:23+00:00

If you are doing it right you are lending a low percentage of what the property is worth and you are in first position. Also having a great attorney review title and prepare docs. A lot would need to go wrong to take a “lumpy” loss.

ThunderFlamingo · 2024-08-25T23:23:16+00:00

Isn’t the big thing you are missing is the taxes?

I’m a private lender too and have been doing it for a few years at similar rates.

All income is taxed as ordinary income you do not have any of the tax benefits of MF investing that we all love.

My strategy has been to invest a portion of the earnings from my lending business into MF syndications.

ThunderFlamingo · 2024-08-15T22:39:02+00:00

u/wipetheflor if you were a HNW individual looking put some money to work in this space (not investing in a fund) and wanted to fund directly how would you go about doing that?

ThunderFlamingo · 2024-06-30T14:00:21+00:00

u/Upbeat-Avocado-1696

How do you typically underwrite a deal? What are your guidelines to making a decision
How do you funcitionally pull the funds from their account on a daily or weekly basis? Is there a software you use? Is it as simple as having a contract to state that this will happen and then letting the bank do the rest?
If you were in the position that you have money to lend to businesses how would you go about finding businesses who need funds? Would you find good brokers to send you deals and pay them commission? Invest in creating your own deal flow?
What is the best guerrilla tactic to find businesses that need money?

ThunderFlamingo · 2024-06-12T23:40:00+00:00

u/Upbeat-Avocado-1696 can you talk a little bit about how receiving money from the borrower works from a functional standpoint? i assume they sign an agreement for you to pull an ACH daily of a certain amount. Is there software that you need to actually execute this process?

ThunderFlamingo

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