All Forum Posts by: Bob Schulte

Hi Will,

Your portfolio dashboard idea sounds like a solid plan! But instead of spending 6–10 hours building it from scratch, you might want to check out Bryt Software.

It has built-in spreadsheet reports that track NOI, COC, and ROI, plus custom reporting options if you need to track any personalized metrics. And if you're stumped on recalling the exact mathematical functions for your payoff calculations, Bryt's Payoff Calculator can handle the math for you.

There are also other options like Stessa and DealCheck, both built for real estate investors. They offer automated financial reporting and dashboards that track cash flow, expenses, and ROI, so you don't have to update spreadsheets manually.

I hope this helps. If you end up building your own, I’d love to hear how it turns out!

As a private money lender, there are a couple of ways to handle the monthly subscription fee for your loan servicing software:

1. Deduct from Returns: You can deduct each investor's share of the fee directly from their monthly returns. It’s simple and ensures the cost is distributed fairly without adding extra steps for you.

2. Invoice Investors: Another option is to invoice investors for their portion of the fee separately. While it requires some extra coordination, it keeps their returns clean and operational costs transparent.

If the fee feels too high, consider loan servicing software with modular pricing. These options let you pay only for the features you need, which can help keep costs manageable.

Hope this helps!

I’ve seen plenty of private money lending stories go south, and it’s definitely a topic worth discussing. One of the biggest issues is probably borrower default—whether due to mismanagement, market downturns, or unforeseen circumstances, lenders can end up in long, costly recovery processes. Another common problem is poor due diligence—jumping into deals without verifying the borrower or collateral often leads to future regrets.

I’ve also seen over-leveraged borrowers cause trouble, prioritizing other creditors over private lenders. Then there’s fraud or misrepresentation, where borrowers inflate project values or provide false documentation. And lastly, market risks and mismanaged funds can also create major headaches, especially for those involved in lending groups. The list is pretty endless.

Have you run into any of these issues? I’d love to hear your experience and what you took away from it!

Private financing has many perks compared to traditional bank loans, especially if you're after speed and flexibility. For one, private money lenders are much quicker—I've seen deals close in just a few days, which is a lifesaver for time-sensitive projects like real estate flips or urgent business needs. Banks, on the other hand, can take weeks, if not months, to approve and fund a loan.

Another big plus is the flexibility in qualifications. Private lenders tend to focus more on the value of the asset or project rather than your credit score or financial history. That makes private financing a solid option for folks with non-traditional credit or complex financial situations that banks might shy away from.

Then there’s the tailored approach to loan terms. Private lenders often offer more creative solutions, like interest-only payments or custom timelines, which can be a game-changer if you’re working on a unique project. It’s a level of customization that’s hard to find with the rigid terms of traditional banks.

I’ve also noticed that private lenders are open to funding niche opportunities that banks might consider too risky. Think fix-and-flip properties or land development projects—things that don’t fit the cookie-cutter mold banks prefer. Add to that the fact that private financing typically involves way less bureaucracy, with reduced paperwork and fewer hoops to jump through. It just makes the whole process smoother and less stressful.

What’s your experience been like? Have you found similar advantages with private financing?

Hi Ben,

I am not a private lender but I have worked with a few. Typically, private lenders pay anywhere from $500 to $2,000 for loan documents, depending on the complexity of the deal and the attorney’s rates. This usually covers contracts, promissory notes, deeds of trust, and other necessary legal paperwork. Costs can be on the lower end if you use more standardized templates, while custom documents tailored to specific deals tend to fall on the higher end.

Location can also play a role, with attorneys in larger cities often charging more. It’s always good to shop around or even negotiate a flat fee if you plan on doing multiple deals.

Hey Andrew!
If you're getting back into the lending game for long-term hold investors, a realistic “ideal” loan might look like this:

Rates: Somewhere around 6-8% interest, depending on the risk profile of the borrower and the property.

LTV: 70-80% LTV is solid, especially if you're aiming for lower risk.

Term: 5-10 years works for LTR investors who want stability.

Fees: Reasonable origination fee (1-2%) is expected, but avoid nickel-and-diming borrowers with hidden fees.

Prepayment: A soft prepayment penalty could be fair if paid off in the first couple of years, but after that, no penalties.

Speed: Being able to close quickly (within a couple of weeks) would be a huge plus.

In short, give investors a competitive rate, decent terms, and flexibility on prepayment, and you’re golden.

Hey Donna!

While I’m not a hard money lender myself, I’ve worked with several clients in the space. From what I’ve seen, borrowers value clear and transparent terms, speed of funding, and flexibility. Hard money deals often need to close quickly, so being upfront about fees and offering tailored loan structures can really set a lender apart.

On the lender side, the biggest challenge seems to be managing the risks. My clients often stress the importance of thoroughly assessing property values and having a solid plan in place for handling potential defaults. That said, they also tell me that the rewards are worth it, with high returns and strong relationships with repeat borrowers being common outcomes.

So, if you're exploring hard money lending, I think focusing on transparency, speed, and offering flexible loan terms will go a long way. Just be sure to have a strong risk management strategy in place!

Hey John,

Great question! Both private money loans and hard money loans are popular alternative financing options, but they’re different in key ways.

Private money loans are like borrowing from friends or family, but on a bigger scale. You're dealing with individual investors or small groups. They often offer more flexible terms and customized interest rates and repayment schedules. Plus, having a personal connection can sometimes help you get better deals.

Hard money loans, on the other hand, are usually backed by “hard assets,” typically real estate. These loans come from professional private lenders, are more structured, and have higher interest rates (8% to 15%) with shorter terms (6 months to 3 years). They're a good option if you need quick funding and have a property with significant equity.

In my experience, private loans work best when you need flexibility and have a good relationship with the lender. But if you need fast cash and have a valuable property, hard money loans could be a better fit.

Have you had any experiences with either type of loan? I'd love to hear your thoughts!

Hey David! I'm not a lender myself, but I've come across Bryt Software a bunch of times. It seems popular with short-term lenders. It's an LMS that looks really user-friendly. It offers a central hub to keep all your contacts organized and also gives automated features. Plus, they customize their quotes, so you can get a plan that fits your specific needs, whether you're a small lender or a larger operation.

Hey @Carlo D.! I'm not a lender myself, but I've come across Bryt Software a bunch of times. It seems popular with short-term lenders. It's an LMS that looks really user-friendly. It offers a central hub to keep all your contacts organized and also gives automated features. Plus, they customize their quotes, so you can get a plan that fits your specific needs, whether you're a small lender or a larger operation.