In the intricate world of real estate investing, assembling the right set of relationships can often be the difference between success and failure. Jay Conner, also known as the Private Money Authority, guides us through the essentials of raising private money. In a recent episode of the “Raising Private Money” podcast, Jay spoke with Kevin Amolsch, a seasoned hard money lender who’s facilitated more than $160 million in capital. This insightful episode sheds light on why having a diversified financial base is crucial and how quick financing options can save lucrative deals.
Meet Kevin Amolsch
Kevin Amolsch is a veteran in the real estate lending space with an impressive track record that includes over 2,200 transactions and the management of multiple mortgage funds amounting to more than $750 million in closed loans. He’s also a prolific author, having penned books such as “45 Day Investor” and “Fund Your Flip.” Kevin’s journey started on Wall Street as a mortgage bond analyst before diving deep into real estate financing.
The Need for Different Financial Relationships
Jay Conner opens the discussion by stressing the importance of having various financial relationships in place. While private money from individual real estate lenders can be abundant, there are times it might run short. During such periods, having a relationship with a hard money lender like Kevin can be a game-changer. Quick financing options can rescue deals that require immediate closings, thereby generating opportunities that might otherwise be missed.
From Wall Street to Real Estate Financing
Kevin shares that his primary entry into real estate occurred at a young age during his college years. Lacking both money and credit, he had to depend on creativity to acquire properties. “The creativity is what is so special about real estate as an industry,” Kevin remarks. Over the years, he found his passion lay in financing and structuring deals rather than just buying and selling properties.
From Good Deals to Great Financing
Kevin’s journey into the financing side began in earnest in 2006, just before the real estate market crash. Instead of being deterred, he saw the crash as an opportunity to raise capital and focus on the lending side. Today, his company, Pine Financial Group, specializes in short-term, value-add, bridge loans for real estate investors.
The Importance of Speed in Real Estate Transactions
Case Study: The Fast Closing Advantage
Jay illustrates the importance of flexibility and speed by recounting a recent transaction—a beachfront condominium in Atlantic Beach, North Carolina. Despite higher offers on the table, Jay secured the deal because he could close in seven days. “[…] I bought that property for only $425,000, selling it for $595,000,” Jay says, highlighting that the ability to offer fast closings can be the key to obtaining high-value properties.
Pine Financial Group: Setting Standards in Real Estate Lending
A Client-Centered Approach
One of the distinguishing features of Pine Financial Group is its client-centered approach. Kevin emphasizes, “We are in this for relationships and to help our clients succeed.” This methodology means focusing on supporting clients from the pre-approval stage through to the final loan payoff. Such a service model ensures that both parties benefit from repeated, successful transactions.
Flexible and Nimble
Another competitive edge of Pine Financial is its flexibility and intimate knowledge of the real estate market, given Kevin and his team’s extensive experience as investors themselves. “I’m not in the loan to own business. I’m in the loan to have a lot of loan businesses,” Kevin succinctly puts it.
Navigating the Lending Landscape
Pre-Approval Process
Jay and Kevin discuss the pre-approval process, which is crucial for making confident offers. Pine Financial provides general loan commitment letters without intricate details like property addresses or amounts. This enables investors to make multiple offers without the need for new commitment letters each time.
Underwriting Simplified
The underwriting process at Pine Financial is straightforward—requiring just a one-year tax return, one bank statement, and some disclosures. This simplicity ensures that even newer investors don’t feel overwhelmed.
Why Invest in Pine Financial Group?
Passive Investment Opportunities
If you believe in real estate but wish to avoid the hands-on challenges of managing properties, investing in Pine Financial’s funds can be an excellent option. These funds provide the stability and predictability of debt investments while offering impressive returns. Kevin outlines two distinct funds, one for non-accredited investors with a $10,000 minimum and another for accredited investors with a $100,000 minimum.
10 Lessons Discussed in this Episode:
- Importance of Fast Closings
Learn why the ability to close real estate deals quickly is crucial for securing profitable investments, especially in competitive markets.
- Creative Deal Structures
Discover creative ways to structure real estate deals to maximize returns, especially when you’re limited on funds and credit.
- Preapproval Benefits
Understand the importance of getting preapproved for loans, which can significantly strengthen your offers and increase your chances of success.
- Short-Term Value Add
Explore the merits of short-term, value-add investment strategies like fix and flips and BRRR, which can yield quick and substantial profits.
- Working With Hard Money
Gain insights into how hard money lenders can offer quick and flexible financing solutions, crucial for fast-moving real estate opportunities.
- Reliable Underwriting Process
Learn the streamlined steps involved in getting preapproved and securing funding from a hard money lender, ensuring a smooth transaction.
- Risk Mitigation Tips
Find out how focusing on building strong relationships and ensuring the return of capital are key strategies for safeguarding your real estate investments.
- Geography-Based Lending
Discover the benefits of working with lenders who specialize in specific geographic areas, allowing for closer asset management and reduced risks.
- Leveraging Market Conditions
Understand how to adapt your investment strategy to current market conditions, such as low inventory, to find and capitalize on opportunities.
- Passive Investment Solutions
Explore various passive investment options in real estate that offer stable and predictable returns without the active management hassles.
Fun facts that were revealed in the episode:
- Kevin Amolsch has successfully raised an impressive $160 million in capital for his hard money fund, showcasing his expertise and dedication in real estate financing.
- Jay Conner shared a fascinating deal where he quickly closed on an oceanfront condominium in Atlantic Beach, North Carolina, purchasing it for $425,000, doing minimal rehab, and listing it for $595,000, demonstrating the importance of fast closings in real estate.
- Pine Financial Group, Kevin’s company, operates in Colorado, Minnesota, Washington DC, and Wisconsin, emphasizing their geographically focused lending strategy to mitigate risks and manage assets effectively.
Timestamps:
00:01 – Raising Private Money With Jay Conner
04:54 – Property listing, quick close, high profit margin.
06:21 – Private funding from 47 individuals for real estate.
10:37 – Denver neighborhoods have limited space, prompting creativity.
14:29 – Niche strategy reduces construction time, increasing remodel size.
18:34 – Supportive guidance to get preapproved for loans.
21:26 – Questioning source of money for investment deals.
23:21 – Connect with Kevin Amolsch – https://www.PineFinancialGroup.com
24:48 – Last on capital stack, offers stability and diversification.
26:21 – Raise private money by focusing on relationships.
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Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $67,000 per deal.
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How Kevin Amolsch Raised $160 Million in Private Money for His Real Estate Business
Jay Conner [00:00:01]:
Welcome to another amazing episode of Raising Private Money. I’m Jay Conner, your host, also known as the Private Money Authority. And this is the show where we talk about how to raise money for your real estate deals without ever having to ask for money. Well, my guest today has actually raised $130,000,000 for his hard money fund. And yes, believe it or not, my special guest today is a hard money lender. Why in the world would I have a hard money lender on the Raising Private Money Show? Well, here’s the reason. You need to have as many relationships in place as you can, so if by chance you’re running short on Private Money from your individual real estate lenders, then you need a relationship where you can go get the money very, very quickly. Well, my guest after college, spent 2 years working with Wall Street as a mortgage bond analyst before leaving to work in real estate financing for investors like you full-time.
Jay Conner [00:01:05]:
Well, up to date, he has closed over 2,200 transactions as a buyer a seller, or as a hard money lender. Now, he currently manages multiple mortgage funds with more than $750,000,000 in closed loans. In addition to that, he has spent 2 decades as a real estate investor himself and 16 years in real estate lending. In addition, he is the author of 2 books, 45 Day Investor, and his most recent book that just got published hot off the press is Fund Your Flip. He’s also a frequent speaker, and he’s been quoted in all kinds of publications such as the Las Vegas Review-Journal, the Denver Post, Yahoo Real Estate, and many others. Also included in that list is Forbes. In just a moment, you’re going to meet my very special guest, Kevin Amolch, right after this.
Narrator [00:02:04]:
If you’re a real estate investor and are wondering how to raise and leverage Private Money to make more profit on every deal, then you’re in the right place. On raising Private Money, we’ll speak with new and seasoned investors to dissect their deals and extract the best tips and strategies to help you get the money because the money comes first. Now here’s your host, Jay Conner.
Jay Conner [00:02:32]:
Well, welcome to the show, Kevin. So excited to have you.
Kevin Amolsch [00:02:36]:
Jay, what an intro. Thank you so much for having me on here. I’m super excited to have this interview with you.
Jay Conner [00:02:41]:
Absolutely. Well, I’m excited to have this interview with you because I and all my listeners want you to show me the money. Let’s do it. So, you’ve been real estate investing a long time, just like me, but you decided to focus and specialize now for over 16 years in lending for real estate investors. Why did you decide to focus on this area?
Kevin Amolsch [00:03:11]:
Yeah. I started investing in real estate at a super young age and through the process, I didn’t have money. I didn’t have credit. Really, I was in college. So, through that process, I learned that creativity is what is so special about real estate as an industry. And being able to, you know, acquire properties with little or none of your own money. But the thing about that, Jay, is when you are negotiating your deals, you’re making your offers even down to the words you choose to use when you’re in someone’s living room. It has everything to do with the financing.
Kevin Amolsch [00:03:42]:
How you fund the project is the structure of the deal. And I love deal structures. I like to like to hunt and put deals together. So I just started focusing on the financing side of real estate. Started raising Private Money in 2016. If you could in 2006. I’m sorry. 2006, right before the crash.
Kevin Amolsch [00:04:00]:
That’s when I got started if you could believe it. And I just fell in love with that side of the business. So here we are now, 4 funds. And I know you mentioned 130,000,000. It’s actually a bit old, that bio. We’re over $160,000,000 in, capital right now.
Jay Conner [00:04:15]:
That’s wonderful. Well, you mentioned being able to close quickly and being able to move quickly. There’s a saying I picked up from a friend of mine years ago, and that is, you can’t make money in 1st gear. You can’t make money and, you know, and you’re not moving fast. For example, I just bought an oceanfront condominium here in Atlantic Beach, North Carolina. Closed on it just 2, 3 weeks ago. The the, after repaired value, which we’re putting on the market right now this week. In fact, we went on the market yesterday.
Jay Conner [00:04:54]:
Anyway, we’re listing that property for $595,000 I only had to do 11,000 in, rehab interior paint. That wasn’t even a rehab. And, listen, Kevin, I bought that property for only 425,000, selling it for 5.95, hardly had to touch it. But there’s only one reason why I was able to get that deal, and that’s because I made an offer that I could close in 7 days. He had higher offers, but it was going to take them, you know, 30 days or more to close, and he had 2 big motivations. It was an inherited property, and in addition to that, it was going to the courthouse steps in a foreclosure sale in, like, 10 days, from the time we spoke to him. So we closed the deal in 7 days. And so that’s a big point right there that you just made.
Jay Conner [00:05:49]:
You gotta be able to offer fast closings if, you know, or you’re gonna miss out on a lot of deals.
Kevin Amolsch [00:05:56]:
Totally. I could not agree more. And you’ve sounded like you came in with cash. Maybe it was Private Money, which we’re gonna talk a lot about today. But there are lots of different ways you could structure deals that close fast. So closing in 7 days sounds intimidating, especially to a newer investor. But look, it’s real. I mean, that is a real thing.
Kevin Amolsch [00:06:16]:
You can close in 7 days. Yes. When even when you’re new. Yes. Even if it’s your very first deal.
Jay Conner [00:06:21]:
Yeah. It actually was Private Money from an individual. So I’ve got 47 human beings and individuals that are funding our real estate deals. And, some of my best friends in the world, like yourself are hard money lenders. You know, they’ve got them, their fund as well that they loan out. So, yes, I’m glad you made the point, fast. So let’s dig into your fund. It’s called the Pine Financial Group.
Jay Conner [00:06:54]:
And, so at Pine Financial Group, first of all, what type of website, by the way, is https://www.PineFinancialGroup.com. Right. Pine like a pine tree. By the way, I live here in Eastern North Carolina, and we have got pine trees. How did you come up with the name of your company, Pine Financial Group?
Kevin Amolsch [00:07:15]:
Maybe we should expand there. So we have pine trees in Colorado also. Maybe not quite as big or green as what you experienced, but we have we have, Colorado pine trees. And so I wanted something that was special to me. Like, I’m a native of Colorado. I grew up here. Love this state. So I wanted something that somewhat resembled the state.
Kevin Amolsch [00:07:36]:
But here’s what’s funny, Jay. It’s not just that because I could do mile high or I could do mountain rocky mountain something. Right? But I wanted to find something that I could get a domain for, and Pine Financial Group was available. So that’s the name of the company.
Jay Conner [00:07:52]:
Well, in a word, you sort of had the back end of that name. Right? So, what type of lending, or loans does Pine Financial Group do?
Kevin Amolsch [00:08:01]:
Yeah. So we’re we are a short-term value bridge lender. So you use the term hard money. I absolutely agree. It is a hard money lender. You know, there are organizations out there trying to change that term a little bit, but you and I agree we’ve been doing this a long time, Jay. It’s it’s hard money. So think about your fix and flips or your BRRR strategies.
Kevin Amolsch [00:08:22]:
We could talk about what that is if your listener doesn’t know. But anytime you’re gonna add value to a project and then either resell it or refinance and pay off the loan, we are interested in those types of, deals. Like your condo deal. Right? You just add a little bit to it and then it adds value. Right?
Jay Conner [00:08:38]:
Absolutely. I, we did $11,000 I mean, it it looked good, but it didn’t look great. But now it looks great. And, you know, so we, we closed on it, purchased it less than a month ago and it goes active this Friday. It’s probably going to be under contract, this coming weekend. So probably gonna be in and out of this $600,000 condo in less than 90 days.
Kevin Amolsch [00:09:07]:
Yeah. I mean, that is the perfect in-and-out type of transaction. We don’t typically see those, Jay. To be honest with you, we’re seeing much larger
Jay Conner [00:09:15]:
I typically don’t see that.
Kevin Amolsch [00:09:16]:
Yeah. Yeah. Exactly. Okay. But we’re looking at, like, adding a sweeter, you know, popping a top or some, like, major value add. And especially in a market like we’re in now with low inventory, it’s pretty much across the country. Right? It’s hard to find projects. It’s it’s, there’s just not a lot to choose from, which creates a little bit of a challenge for fix and flippers.
Kevin Amolsch [00:09:39]:
So we’re seeing you’re paying full price when you buy it, especially if it’s MLS. Right? I believe that. But you could still fix and flip and make a ton of money. You just gotta figure out where to add the value.
Jay Conner [00:09:51]:
True. Now, did I hear you just say pop a top?
Kevin Amolsch [00:09:56]:
Is that what you’re not you don’t call it that in North Carolina.
Jay Conner [00:09:59]:
I don’t even I don’t even know what pop a top means. It looks like, you know, popping a soda pop
Kevin Amolsch [00:10:04]:
top. Yeah. You’re you’re popping the top of the roof. Right? And you’re going to build a second story on an existing home.
Jay Conner [00:10:11]:
I’ve never popped a I’ve never popped a top in my life.
Kevin Amolsch [00:10:16]:
Oh, that’s hilarious. Yeah. That’s what we call them here in Denver.
Jay Conner [00:10:21]:
So, in fact, I don’t even know anybody who’s popped to the top, and I’ve done over 500 single-family rehabs myself. So maybe we should take a look at popping a top. You know, what kind of property what kind of property would you want to pop a top for?
Kevin Amolsch [00:10:37]:
So if you’re looking at so in some of the older neighborhoods in Denver, it’s probably similar for where you’re at. But you have these little five 55 100 square foot lots, and they just stack them in. Right? It’s like a grid. So it’s very difficult to add square footage unless you’re finishing a basement or you’re going up. So zone for 2 stories, we’re seeing a lot of people add a second story because you can’t go out the back, which would be obviously much, much cheaper. But if there’s not enough room, not enough space on that project, you either have to go up or sometimes we’ll see them dig basements out to create an actual legitimate basement they could finish. So those are 2 of the strategy strategies we’re seeing when there’s not enough land or not enough space to add, an an addition.
Jay Conner [00:11:23]:
Okay. That makes sense. I understand. So as far as the length of notes, so so your your your your box or your criteria, more or less, that your companies interested in funding are properties that the real estate investor is going to make, better, add value to it, and it’s gonna be short term. So, like, for instance, myself, our, you know, I do so many deals and, and I’ve got, I’ve got our own crews. I do business with general contractors more than one of them, but our average deal so I’m going to tell you our average deal in length of time and see how it sort of marries up with Pine with Pine Financial Group. So I’ll buy a house at Neachman Innovations, and it may sit there for 3 months before we even start the work, because we’re like backlogged. I got my general contractors backed up.
Jay Conner [00:12:22]:
The crews are backed up. It might be 3 months before it even starts. And then the average renovation project in my area here. I mean, our median price is 350,000. It’s not California, you know. But our average renovation is on the low end. On the low end, well, the 11,000, that’s an anomaly. That’s the that’s the really low end.
Jay Conner [00:12:45]:
Don’t don’t even count that. The average low end is gonna be these days at least 30 or $40,000 on the low end. High-end typically is gonna max out around 70, maybe $80,000. So on average, it’s going to take around figures about 3 months for us to do a renovation. So it sat there for 3 months. The renovation has taken 3 months. Now I got it for 6 months. Might be 7 months.
Jay Conner [00:13:18]:
Now we go into the multiple listing service. We have no inventory here in our area. I mean, if you’ve got it priced right, and you put it in the multiple listing service, you’re gonna be under contract in less than a week. If you’re not under contract in less than a week, you’re overpriced. Right. Or you shouldn’t have bought it in the location it’s in or whatever. So let’s say we go into a contract. Well, the typical closing is going to be 45 days.
Jay Conner [00:13:44]:
So now I’m like in it 8 and a half months cash out. So typically we’re going to be in and out, even if it sits there for 3 months without touching it, within 9 months or less. So for these value loans that you’re talking about, what’s the length of the note typically?
Kevin Amolsch [00:14:04]:
That’s a good question. I love how you describe that to me and walk me through the timeline. So our loan is 9 months. I’ve been doing 9 months since day 1. I started Pine Financial in 2008. I know I mentioned I was raising money in 2006, but I didn’t actually start this company until o eight. And from day 1, we would do a 9-month loan. Now back then, Jay, the hard money lenders would only go 6 months because they wanted extension fees and they wanted all of this.
Kevin Amolsch [00:14:29]:
We carved out a little niche with that simple strategy to extend to 9 months out of the gate. Now we don’t see properties sitting for 3 months before any construction started. That’s not normal here. It’s usually, you know, within a week or 2, we’re already seeing the demo crew go in. So our average loan payoff is 5 and a half months, something like that. Now we’re do we’re seeing much bigger rehab. So an $80,000 remodel is probably closer to average than on the high end. We’ll see $100,120,000 remodel projects regularly.
Jay Conner [00:15:05]:
Yeah. Well, I did one last year, or was it this year? Doesn’t matter. I did one, and, I mean, it was it was the house that just kept on taking. It didn’t give.
Kevin Amolsch [00:15:19]:
The money remember that movie?
Jay Conner [00:15:21]:
Yeah. Just kept on taking. And so and, of course, I’ve never had a renovation project come in on budget ever.
Kevin Amolsch [00:15:28]:
Of course not.
Jay Conner [00:15:29]:
Ever. They never come in on budget. Right. You might get close. You might get close. But, anyway, so this renovation project started out at around 150,000 Wow. Renovation project, which was pretty big. And, after much chagrin, I don’t know if y’all talk about chagrin up in Colorado or not, but anyway, after much, sweat and tears, we finally finished that renovation project, at $180,000 But the good news is we bought it right.
Jay Conner [00:16:05]:
Thank goodness. We bought it right, and we still made over $100,000 in profit. But we should have made a lot more money than that. So the length of your note since day 1 has been 9 months. Mhmm. What makes Pine Financial Group different for not your investors that are investing in your fund? We’ll talk about that. But what makes it different for the borrower, the rehabber, that they want to come to Pine Financial Group instead of XYZ, Hard Money Lender?
Kevin Amolsch [00:16:39]:
Yeah. I mean, we’re client-focused. This is very different than a lot of the industry. We are in this for relationships and to help our clients succeed. In fact, our slogan is We work together so you succeed. If our clients are not successful, we’re not. Right? So I’m not on a loan to own a business. I’m in the loan to have a lot of loan businesses.
Kevin Amolsch [00:16:57]:
So if you can make money on your project, you’ll come back. Right? So that’s really the focus. And that’s similar on our private investor side. Like, I get the best job in the world, Jay, because I get to help private passive investors make a lot of money. I get to help fix and flippers make a lot of money. I get to make money doing that. It’s really a win win win. So I’d say what makes us different is we’re highly focused on client success, and we’re small, nimble, and we’re investors ourselves.
Jay Conner [00:17:25]:
Yeah. Well, at the end of the day, that’s pretty much what it comes down to when you’re a service provider. And that is how well you take care of your customers. That’s right. Right? You know, fast funding, fast answers. What does your underwriting process look like? So for example, let’s say, and when I say what’s it looks like, I’m not talking about what is your underwriting criteria. That’s not my question. What I’m asking is, let’s say Jay Conner has got a deal under contract.
Jay Conner [00:17:56]:
Let’s back up. Let’s say Jay Conner does not know you. And Jay Conner has reached out to Pine Financial Group. And I wanna be one of your customers.
Jay Conner [00:18:08]:
I want to experience your amazing customer service journey experience. What is the how does a, how does, how does a Jay Conner, how does an individual that wants to be a borrower of Pine Financial Group, what does the application process look like? How are how are they set up? Is it a line of credit? Is everything one-off? What does that look like?
Kevin Amolsch [00:18:34]:
Good question. So the first thing I’m gonna do when I hear you say that is I’m gonna put my arm around you, Jay, and we’re gonna walk on this path together. Right? We’re a team here. But the real answer to your question is we want you to get preapproved first because look. When you’re out there making offers, sitting and sending in contracts or LOIs, you wanna know that you have the money behind you. And it’s totally free, so it’d be silly not to. So it would be to get a preapproval, and then we could send you loan commitment letters. Now our loan commitment letters may be a little bit different than some of the others you’ve seen and it’s very general and simple.
Kevin Amolsch [00:19:07]:
So it doesn’t have a property address. It doesn’t have a loan amount. It doesn’t have any of that. And the reason we do it that way is because we know it might take you 30 offers, maybe more, to get one high-quality project. Right? So I want you to be able to make offer over you know, offer, offer, offer over and over and over again without coming back and requesting new commitment letters each and every time. So it just makes it simple for both of us. Now once you get a project under contract, then you that’s when we really start working together. Right? So you’d send in the contract, send in your scope of work, which is basically just a breakdown of your plan and your budget, and then we would get the process started.
Kevin Amolsch [00:19:43]:
We do the valuation from there. We start collecting all of our underwriting documents. Sounds like you don’t want me to go into too much detail there, but it’s really simple. 1-year tax return, one bank statement, and some disclosures are pretty much what it is. And then we just work together all the way up until the closing date. Heck, we work together after the closing date. Need some advice, need a little support, we’re always here.
Jay Conner [00:20:05]:
There you go. Wonderful. And so you got the preapproval. And and by the way, you just said something very interesting, And I’ll tell you why it’s interesting. So you just said, you know, I don’t want you out there, you know, making offers and you don’t have the money lined up. So let’s let’s, digress for a second. You know what drives me crazy, Kevin? I mean, it drives me absolutely crazy. I want to throw up.
Jay Conner [00:20:30]:
I think you probably know what I’m getting ready to say.
Kevin Amolsch [00:20:32]:
Wait to hear it, but I think I know. Yes.
Jay Conner [00:20:35]:
Drives me stupid crazy. These educators on the platform around the country are, you know, teaching real estate investors, mostly newbies, mostly newbies. And here’s what they say, quote, unquote, oh, just get the deal under contract. The money will show up.
Jay Conner [00:21:00]:
Have you ever heard that, Kevin?
Kevin Amolsch [00:21:02]:
Oh my gosh. I hear this all the time, Jay, you and I are definitely gonna agree on this one. It drives me absolutely crazy. Now is it possible to go find the money and line it up after you’re under contract? Sure. Absolutely. It’s possible. Is it possible that you won’t find the money? Yeah. That’s possible also.
Kevin Amolsch [00:21:18]:
So I agree. I think you should have at least some idea of where the money is going to come from before you’re making offers.
Jay Conner [00:21:26]:
Well, and the sad thing is, these same people, they’ll say, oh, if the if it’s a good deal, the money follows the good deals. The money follows the good deals. And, and, and I want to say, where is the money going to come from? Is it just like going to sort of rain out of clouds or something, you know? And I was I had, I was a guest on a podcast, not too long ago, and the host and I were having this very same conversation that you and I are having. And I said, why do they say that? Why? Why do they why do they say that? And he says, Jay, I can tell you why they say that. I said, why? He says, because they’re selling a course on how to get deals under contract and how to find deals, and they’re not gonna teach them where the money comes from. So they say, just get the deal under contract. So, you know, we agree on this, Kevin. The worst time in the world to be looking for money to find your deal is when you need it for a deal.
Kevin Amolsch [00:22:26]:
Yep. This reminds me of you’ve seen the movie or read the book The Secret, Jay, I’m sure?
Jay Conner [00:22:32]:
Oh, absolutely.
Kevin Amolsch [00:22:33]:
Okay. So I absolutely love that concept, and I love that movie, and I love that book, and, all of those things because I think it’s real. I really do believe in the law of attraction. And the one thing that that book is missing is that you have to actually do something. I mean, you could you could, do all the affirmations in the world, but if you don’t take at least some action, that goal is not gonna just appear. So I love the secret, and you have to take action.
Jay Conner [00:23:02]:
Yes. Well, speaking of taking action, let’s give our listeners some action. And that is, how can they connect with Kevin, you, Amos, and your team and find out about getting pre-approved with Pine Financial Group?
Kevin Amolsch [00:23:20]:
Yeah. I’m glad you’re saying that. I should say this. We are on the lending side, because there’s a risk in real estate lending, and we are pretty focused geographically. So we’re in Colorado, Minnesota, Washington DC, and Wisconsin. So those are our 4 markets. I just wanna be very clear on that. We bring in private capital from investors from all over the country.
Kevin Amolsch [00:23:39]:
But if we’re talking about loaning it out, we’re geographically focused so that we could really keep our eye on the asset. To get to answer your question and get a hold of me, the best way is, the website. It’s pinefinancialgroup.com. Again, it’s pinefinancialgroup.com.
Jay Conner [00:23:53]:
And then on the other side of your business, you can’t lend it out until you’ve got your investors that have invested in the fund that you and your team are managing. And so let’s speak to that group of people for a couple of minutes. Who would want to invest in your fund and why would they want to invest in your fund?
Kevin Amolsch [00:24:16]:
Yeah. Look. If you believe in real estate as an asset class, a good, you know, piece to your portfolio, but you don’t want the tenants and the toilets and the tantrums from tenants or contractors, it might be a good idea to look at some passive type of investments. Now if you’re looking at passive real estate investments, there are really 2. You could go debt or equity. Now equity is those syndications that we hear about. A lot of the Private Money people raising Private Money are investing it, grouping it together, and investing it into a deal. So that would be a syndication which can be fantastic, just a little bit riskier.
Kevin Amolsch [00:24:48]:
It’s the lowest on the capital stack. It’s the last the last to get paid back. Now if you’re going on the debt side, first-position loans get paid back before anybody else with the exception of super liens like HOAs and taxes. But the debt side is much safer, much more stable, much more predictable. So that’s what we do and it’s, I forget I forget the question exactly here, Jay. But who would we want to do who would we be targeting here? Anybody who wants a passive investment that has some stability and likes real estate as an asset class. So this is a great way to diversify and get stability into a portfolio.
Jay Conner [00:25:26]:
Perfect. And is there a minimum amount for them to invest?
Kevin Amolsch [00:25:30]:
Yeah. So that’s a good question because we have 2 funds right now. 1 of them is getting our final approval with the SEC. So once that is approved, that’s gonna be open to nonaccredited investors. So that’s very different than what you hear other lenders doing. Now we’re going through a much more rigorous process to be able to do that. There’s audited financials, lots of reporting to the government, all of those things. But that’s really cool if you wanna get involved and you’re not yet accredited, and that’s a $10,000 minimum to answer your question.
Kevin Amolsch [00:25:59]:
The other one does pay a slightly higher return because we’re sharing in the profits. You have to be accredited for that one, and it’s a $100,000 minimum. Alright. Thanks. More information at https://www.PineFinancialGroup.com. And then I’m happy to talk to you too.
Jay Conner [00:26:14]:
Awesome. Well, Kevin, thank you so much for joining us here on the show. Any final thoughts or advice you’d like to share? Yeah.
Kevin Amolsch [00:26:21]:
I thought we’re gonna get a little bit more into the Private Money side because I’ve been able to have some success raising that. But this so this will be I would say this. If you’re out there trying to raise Private Money, it is possible. Okay? When you’re gonna focus on that and your your investor pitches, if you wanna call it that, or you’re sitting down, make sure that it’s not really a sales process. You’re trying to build a relationship here. So focus on the relationship before they ask for money. And 2, when you are talking about the money, it’s return, return of capital, not return on capital. K? Investors wanna make sure that you’re gonna keep their money safe.
Jay Conner [00:27:02]:
Excellent advice, Kevin. Thank you so much for joining me, Kevin. God bless you.
Kevin Amolsch [00:27:06]:
Yeah. Thanks so much for having me on the phone or on the phone on the podcast. I had a great time, Jay. Thank you so much.
Jay Conner [00:27:13]:
You got it. But there you have it. Another amazing episode of Raising Private Money. So glad you decided to join us. Be sure not to miss out on upcoming episodes because we always have fantastic guests. If you happen to be watching on YouTube, be sure to subscribe and re-click that bell so you get notified. And if you’re listening on iTunes or any of your other favorite platforms for podcasts, be sure to follow so you don’t miss out. I look forward to seeing you right here on the next episode of Raising Private Money with Jay Conner.
Narrator [00:27:52]:
Are you feeling inspired by the knowledge you gained in this episode? Then head over to https://www.JayConner.com/MoneyGuide. That’s https://www.JayConner.com/MoneyGuide, and download your free guide that shares seven reasons why Private Money will skyrocket your real estate business right now. Again, that’s https://www.JayConner.com/MoneyGuide to get your free guide. We’ll see you next time on Raising Private Money with Jay Conner.
