Lending Other People’s Money with Kenny Wright

December 1, 2021 melissa Real Estate Comments Off on Lending Other People’s Money with Kenny Wright

Lending Other People’s Money with Kenny Wright

Today, we’re going to touch on money lending in the real estate world. Specifically, we’re talking about how Kenny Wright does it himself! If you’re trying to find another avenue to take your business, this is the right article to read.

Are you trying to find another avenue to take your business? Perhaps you feel like real estate is the right direction, but not the goal.

The points below are from the seventeenth episode of the Real Estate JAM, where Kenny talks about how he got into real estate investing and lending, what getting a franchise is like, “relationship-based lending”, and what his numbers look like. If you want the full experience, tune in to the full episode on YouTube, Spotify, or Apple Podcasts!

Kenny did start with real estate. It was the right direction, but the industry was more of a springboard to another field rather than an end goal. When things didn’t work for him with fix and flip’s, he focused more on the lending side of things. So, let’s get started!


 

Private Money Loans Vs. Hard Money Loans

Before we continue, we need to address a couple of things. First, what is lending? What are hard money loans? How about private money loans?

Hard money loans are acquired through assets, like real estate properties. Lenders use the value of the asset to determine how much the loan would be (including the rates). Think banks – but they’re not the only ones who lend hard money.

Private money, on the other hand, can be seen as money that friends and family lend. Organizations could do the same, of course. If hard money uses assets to determine the rates and amount of a loan, with private money, it’s pretty much whatever the two parties agree on. Why would people and organizations lend money like that? Well, if their money could make more money by investing in real estate (or other business ventures), why not?

And if you’re wondering, Kenny does both kinds of lending.

 

How Do You Find People?

If you think you’ll need some money to follow Kenny’s steps, you don’t – maybe just a few dollars for some coffee. Believe it or not, he has done ZERO marketing for his lending endeavors. As mentioned earlier, real estate was the springboard for this venture. He used his network to his advantage! He says that most of the lending he’s done is “relationship-based”. Whenever he goes to his mastermind’s events, he just talks to people until they learn what he’s doing.

And you already know what people in real estate need, right? They need money for those deals! Everything started with private money first. He had a friend that took up his offer of making more out of his money, and things started trickling down. All his business so far has been through word-of-mouth.

And the best part is, with word-of-mouth comes a good quality of clients. If you have a great client, the one they refer to you is likely as good as them too! Kenny’s never had someone go on a foreclosure or totally bail on him. Sure, sometimes, little issues could come up from time to time (like a pandemic seizing up resources), and missed payments do happen, but they do pay things back the next month.

In short, if you want to start lending, you can start now with the people you know. If you think there aren’t enough people you know, start building your network!

 

Want to learn more? You can listen to the full episode on YouTube, Spotify, or Apple Podcasts!

 

Outline of the Episode:

  • [01:37] Kenny’s adventures in the construction industry, real estate world, and hard money lending realm.
  • [06:20] The benefits of going for a franchise versus getting deals locally on your own.
  • [09:36] A deeper dive into how Kenny does hard money and private money lending.
  • [14:06] The benefit of “relationship-based” lending.
  • [18:12] Kenny’s criteria to the deals he’s getting. What do his numbers look like?

 

About Kenny Wright:

I am the owner of several companies. My first bread & butter is my Construction company specializing in the custom home & light commercial market.

I started investing in Real Estate in 2008, buying my first piece of raw land & in 2012 with my first rental. Since then, I have wholesaled, bought, fixed, flipped SFR properties in the DFW area. I started Wright Boys Investments for lending out Hard Money for people looking to do the same.

Longhorn Notes is strictly for purchasing performing and non-performing mortgage deeds, helping people get back on track with their payments, and reselling the performing notes.

 

Resources:

 

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