Key Takeaways:
- Hard money lending can be a good alternative investment for earning higher returns than traditional banks, especially as banks become more restrictive. Private lenders like Urban Gate Capital can close loans faster.
- Urban Gate Capital has funded over 300 loans totaling over $33 million by structuring an evergreen debt fund to efficiently raise and deploy capital.
- They emphasize conservative underwriting by ensuring loans are secured and they can recover principal if needed. Foreclosures have been rare.
- Hard money can help bridge gaps for commercial deals like Peerless Mill when traditional financing falls through. Terms like interest-only can make cash flow work better.
- Finding quality operators is important, as most issues have come from operator performance, not property issues.
The Commercial Real Estate Investor Podcast