Investing in Hard Money Loans and Full-Time Operators
Pascal Wagner talks with Matt Faircloth about starting with hard money loans and choosing operators who work on their deals full time.
In this interview
Matt Faircloth explains why an operator with deals of his own also invests as an LP in other people’s, and how a sponsor’s fees and profit share should line up with when investors get paid. He describes why he invests for cash flow, what a hard money loan gives a lender and what it gives up, and when a debt fund may suit someone with less time. He shares how he chooses operators: people his friends already invest with, businesses with their own teams, and sponsors who focus on one thing. He closes with what to check before a first deal, and why a distribution paid soon after a value-add purchase deserves a question.
Chapters
- How Matt Faircloth started investing
- How a sponsor gets paid, and when
- Cash flow and hard money loans
- How he chooses operators and funds
- What his first loan taught him
- When a loan goes wrong
- What to check before a first deal
- Fees and early distributions in value-add deals
The picture is YouTube’s poster for this episode. Published April 11, 2023 by Pascal Wagner, founder of DealStack. DealStack does not rate or recommend firms. DeRosa Group does not pay DealStack, so this page is not a paid placement.
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