EP 100: Next-Level Real Estate Financing with Edward Brown
Learn about alternatives to the traditional mortgage loan in this episode, featuring real estate expert Edward Brown. As one of the few licensed professionals in California specializing in owner-occupied consumer bridge loans, Edward unveils the secrets behind the funds they offer that fuel these loans. Learn how these funds operate, with loans sold to big institutions, creating a constant revolving process and enticing investment opportunities.
But it doesn't stop there! Edward also shares the amazing benefits of investing in their funds. Park your money temporarily in a non-FDIC-insured account and experience a higher return on investment. What's more, enjoy the added advantage of these funds qualifying for the Qualified Business Income Deduction (QBID), providing a valuable tax advantage compared to traditional investments. Join us as we deep dive into this fascinating world of real estate loan alternatives and witness Edward Brown's tremendous growth and success in the industry.
💥💥 Remember, this is your MBA. Have a notepad handy, and get ready to take some 📝 notes!
Key Points from This Episode:
Introduction to Edward Brown.
Edward specializes in the owner-occupied consumer bridge loan.
Only a few in California are licensed for owner-occupied consumer bridge loans.
The main funding for these loans comes from a fund called the Freedom Fund. The loans are sold to big institutions in batches every two to three weeks.
The minimum investment amount for the fund is $250,000, and the company offers interest rates ranging from 7% to 9%, depending on the investment amount.
Requests for redemption can be processed swiftly, allowing investors to exit the investment and avoid paying interest rates if they no longer wish to participate.
Their company has garnered trust and interest from potential investors through its newsletter and social media presence, leading to substantial investments.
The demand for the company's loans was so significant that their Freedom Fund expanded beyond its initial purpose and quickly grew to around $45 million within just three to four years.
Their funds are not risk-free but very mitigated.
Edward does not anticipate a real estate crash due to ongoing population growth and housing demand.
Tweetables:
“There are a lot of hard money lenders out there, but there aren't too many who are even licensed to do these owner-occupied consumer loans.” –Edward Brown
“We are busier than ever. Because a lot of mortgage companies have downsized, there's been such little refinance market with the interest rates going up. There's a smaller pool of money out there. So we get a lot of referrals from banks, mortgage brokers, realtors, etc.” –Edward Brown
“Rates will stay somewhat high for a while but I don't think we're going to have a real estate crash." –Edward Brown
Resources
Pacific Private Money, Inc. website
About Edward Brown
For over 20 years Edward Brown was CEO of a $40 million alternative lending company based in Marin County. Today he assists Pacific Private Money with capital raising and investor presentations. Edward is also the host of two radio shows —The Best of Investing with Mark Hanf and Sports Econ 101, a national sports and business show. Edward earned his B.S. in Accounting and M.S in Taxation from Golden Gate University, and has held licenses and certifications including Real Estate Salesperson, Insurance License, Series 7 Securities License, Tax Preparation License, and Certified Fund Specialist.
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The education we provide is sponsored by Lehigh Valley Fund. The fund earns returns through real estate investing and pays inventors an average 10% return with a 12 - 18% target*
Click here to book Fund Manager Tejas Gosai.
Contact Jerna Bentilanon to schedule a visit to our offices or a tour of one of our properties: j.b@lvpefund.com, 610-230-7777
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