The Private Lender Podcast

Show Notes Coming Soon

Because of COVID-19, those in the real estate industry had to pivot in a huge way to survive and find ways to thrive with the ongoing deurbanization. Keith Baker explores how people in this sector hone their strategies, particularly in private lending, by sitting with Kayla Wojcik. She explains their work at FlipCo Financial, a team of forward-thinking individuals in the real estate investing sector focused on bringing a better financing product to the Houston market and soon nationally. She dives deep into the type of loans they offer, why they don't charge appraisal fees, what a typical bridge loan looks like, and their most common borrowers. Kayla also shares their strategy when it comes to bread and butter houses, which experienced a huge decrease in February.

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I'd like to thank you for sharing your time with me. If you're looking for practical tips and advice on private lending and how to keep your money safe, then you are in the right place. If you want to learn from my mistakes so that you can both avoid and profit from them, pull up a chair and pour yourself a drink because this show is for you. This show is dedicated to giving people like you and I the knowledge and the confidence to participate in the most passive form of real estate investing known to man, private lending. If you're looking for a shortcut to begin private lending, then head over to the PrivateLenderPodcast.com/Ink to learn how you can put your money to work for you by investing in real estate backed loans right here in the Houston area with my friend, Paul Lamnatos over at Blink Lending. Make sure to join the show's Facebook Group in order to connect with other private lenders and to be part of the ever-growing community.

I'm excited to get to the interview with our guest, Kayla Wojcik, who's the Founder and Director of Sales and Operations at FlipCo Financial, which opened their doors and started lending in November 2020. FlipCo is a team of forward-thinking individuals in the single-family real estate investing sector focused on bringing a better financing product to the Houston market and nationally. What makes FlipCo private lender a little different is they were funded and started with one person's capital who wanted to put it to work or a handful of it. It was a private capital that was put to work just like me. The Angel investor that started it had a lot more money to get started with first and was smart enough to hire Kayla to run the business for him. Let's get down to the brass tacks of the show and listen to the interview with Kayla Wojcik as she discusses her lending criteria.

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I'm honored to have Kayla Wojcik from FlipCo Financial. Welcome, Kayla.

Thanks for having me.

Thanks for coming on. You have an interesting story and background that I'm a fan of. You're in Houston area providing flips and money for investments. Let's start back, not the very beginning but how did you get into the real estate space. Tell us a little bit about yourself.

A little towards the background around eighteen years old, I worked for an attorney. He wanted to get into the tax foreclosure market. He

Greetings from the laughingstock of the professional sports world – Houston, TX. And welcome to episode 121 of the Private Lender Podcast, I’m your host, Keith Baker and I’d like to thank you for sharing your time with me today. 

If you’re looking for practical tips and advice on Private Lending and how to keep your money safe, then you are in the right place. But if you want to learn from my mistakes so you can both avoid and profit from them, well then pull up a chair and pour yourself a stiff drink my friend, because this podcast is just for you!

The PLP is dedicated to giving people just like you and me the knowledge and confidence to participate in the most passive form of real estate investing known to man: Private Lending.

And if you are looking for a shortcut to begin Private Lending then head over to PrivateLenderPodcast.com/ink to learn how you can put your money to work for you by investing in private and hard money loans around Houston.

Also, make sure to join the Private Lender Podcast Facebook group to connect with other private lenders and be a part of the community.

Are you ready to get down to the brass tacks of today’s episode? – Cuz I know I am!

Today’s topic is about lending to an entity instead of a person, and what you need to do in order to protect your money. So let’s dive in, shall we??!!

A retail loan to an individual

           Retail bank (as well as SDIRA custodian) will require the borrower’s name, address, contact info, driver’s license, and social security number.

In the case of a loan or mortgage, the borrower’s social security number is important for 2 reasons:

1. allows the lender to perform a credit report to help underwrite the loan
2. allows the lender to report the borrower to credit bureaus in case of default or delinquency. This is how banks can keep some of the borrower’s skin in the game with a conventional or FHA mortgage – especially in a low or no money down scenario.

The same principles apply to Private Lending. While I don’t actually pull a credit report for a borrower, I require the same info as the bank, especially the social security number. If my borrower defaults, I can seek legal remedies against them with their social security number in civil court. And I can put a bruise on their credit report if I decide it is worth it to pay the money.

Now let’s look at what happens when Fraudulent House Flippers, LLC applies for a loan at the bank:

First off, besides requiring 20% of the purchase price at the closing table for an investment property purchase, they want to see the formation documents for the entity and who are the members and managers, and the LLC’s EIN or federal tax ID number, bank statements, etc.

They also require a personal guarantee, unless your LLC has a substantial amount of money deposited with said bank.

Why would they require a personal guarantee for a business loan? That’s a good question. But a better question is why should every Private Lender require a personal guarantee when lending to an entity such as an LLC?

I’ll walk you through the answer because it can ruin your day.

Let’s say I loan 100k to Fraudulent House Flippers, LLC to purchase and renovate a property. For three months I am paid as agreed, but in month 4 Fraudulent House Flippers LLC stops paying their note, and after the loan goes into default, let’s assume two things happen:

           1 – I foreclose on the property – a hassle I don’t want but have accepted the risk

2 – Fraudulent House Flippers, LLC dissolves the entity and now you...

The Second Law of Wealth

Hello Lender nation and welcome to episode 120 of the Private Lender Podcast! I’m your host, Keith Baker and I’d like to thank you for sharing your time with me today. 

If you’re looking for practical tips and advice on Private Lending and how to keep your money safe, then you are in the right place. But if you want to learn from my mistakes so you can both avoid and profit from them, well then pull up a chair and pour yourself a drink my friend, because this podcast is just for you!

In today’s episode, we continue the lessons taken from the book The Richest Man in Babylon: the second law of Gold. These are old-world principles that have remained relevant and true through the centuries, no matter the currency, and no matter the politics.

But before we dive into the Second Law of Gold, I need to perform a little housekeeping:

           Private Lender Podcast Facebook group CLICK HERE

2 – Are you interested in doing your own Private Lending but feel like you need a little help to get you through your first handful of loans?

Then head over to PLP.com/INK and learn how you can get started in lending with my friend Paul over at Ink lending and fund their loans on properties right here in the Houston area, in one of the most lender-friendly states in this great country of ours! That’s right, Paul Lamnatos and his team vet the deals, underwrite the loan, and put your money to work for you. They even service the loan on your behalf - that’s about as passive as you can get.

CLICK HERE or on the image below to learn more!!

“Let’s get down to the Brass Tacks”

In the book, the RMiB, there are 7 cures for a lean purse, and 5 laws of Gold and today we will discuss the 2nd law of gold, which is simply: 

Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.

“Gold, indeed, is a willing worker. It is ever eager to multiply when opportunity presents itself. To every man who has a store of gold set aside, opportunity comes for its most profitable use. As the years pass, it multiplies itself in surprising fashion.”

There is an old cliché that says: “work hard for your money, but then make your money work harder for you”.

I like to think along the lines of the flocks in the field or even raising children. There is usually a great deal of labor to bring your savings to life (see what I did there?) and to give your money the ability to multiply and bring more savings into the world and into your account. 

Or your savings are like widgets or little robots that make money and produce more robots to make you money – but you have to oversee all of this.  This goes back to you taking control of you money, your finances, your future, your family legacy.

Don’t let complacency creep up on you, and never trust your money is working for you – you must verify that it is working hard for you.

You are shepherd of your money – a steward if you like

You are the CEO of your money – act like it!!

Work hard for your money but make your money work harder for you!

Teach this mantra to your children. Teach them how to raise their wealth, and the position of their...