Interview Transcript

Brant: All right. So, I think we are live and recording. Kathleen, thank you for coming on. I really appreciate you taking the time to share your experiences as a private mortgage lender.

Kathleen: I’m glad to be here with you.

Brant: Well, let’s just talk about it. Share with people who are viewing this how you got started becoming a private lender.

Kathleen: Well, my case might be a little unusual. First, a little background. My husband passed away almost four years ago, coming up in January. He left me with an IRA, and it wasn’t doing too well. It was stagnant, and I thought, “This is not good.” And then the fees on top of it with the institution were very high. I thought, “This isn’t going anywhere, and I’ve got to make it last.”

So, I ended up sharing that story with my good friends who you personally know, and they’ve been doing business with you for what, twenty plus years. I told them the stock market wasn’t treating me real well with this investment. So, they said, “Well, if you’d like us to share, we’ll share our story,” which they did, and it got me interested.

So, I bought your book, got out of the stock market, opened a self-directed IRA, and here I am.

Brant: I remember that from a few years ago, but it’s been a while since I heard that. And I need to commend you too for taking action because there is so much money, literally billions of dollars, sitting in self-directed IRAs. People don’t have it deployed. A lot of them have it invested in the stock market, things go bad, people pull out, and then they don’t do anything else with it. It just sits there collecting fees.

So kudos to you for taking action, seeking out other ways, and doing something about it. I think you made the best choice.

Kathleen: I did too.

Brant: So, tell people, looking back, what were your earlier experiences? I know you had a mentor to help and guide you along the way, which I think everyone should try to do, find someone to help and look over their shoulders rather than just dealing with the borrower. Talk about those early experiences, because it may have still been a little scary.

Kathleen: It was. But I knew I wanted to do this. That was the first thing I needed to say. I didn’t know what to expect. So, the first time around, my mentor shared with me what to look for in the paperwork. That’s what I was most concerned about, the paperwork.

She said, “It’s not scary,” and walked me through what to look for. Once she did that, and I did that a few times, she started cutting me loose to do it on my own.

You have a great team of people. It didn’t matter how silly a question seemed in my eyes. Everybody was helpful and still is today. Anything I need, I get a quick response. And that includes you.

Brant: Thank you. It’s so important, right? It’s so important to have someone looking over your shoulder to protect your interests, someone who’s not the borrower.

I’m a trustworthy guy, people invest with me, but even then, it’s still best to validate things. I can’t tell you how many horror stories I’ve heard of lenders investing with someone they trusted. And it’s not always that borrowers are doing anything wrong; sometimes they’re just inexperienced.

When you’ve got a new lender and a new investor, that’s a bad combination because there’s just not enough experience there. So, I encourage everyone, new or experienced, if you’re a lender, have someone look over your side of things just to make sure. It’s always the best thing to do.

People watching might say, “Well, I don’t know who to call.” A real estate attorney or a title company attorney can absolutely help you make sure everything is on the up and up.

Brant: So, that was a great start. We’ve done, I don’t know how many loans since then, several.

Kathleen: I think right now I currently have about nine with you.

Brant: You have nine right now? Okay, so you’ve done a good amount of business. Tell me, compared to the stock market, what do you like about this?

Kathleen: I sleep better at night, for one thing. The stock market kept me on a roller-coaster ride, and at my age, I don’t need that. I just need comfort and peace. This has provided it for me. I’m so thankful to be where I am today with you.

Brant: I love that. I talk about this a lot when I teach other investors how to raise money and do deals. To me, it’s not just about the return and the safety, it’s also about the story.

Does it make you feel better that, rather than your money being in some random stock on Wall Street, it’s going into real properties here in our own backyard?

Kathleen: Yes, it does. Because when I used to meet with my financial advisor, he would always tell me, “I’ve got control over this. I’ll make sure everything’s okay.” That wasn’t good enough for me because I had the numbers and the figures to look at, and after COVID hit, it was a big struggle.

We never really got back, and that was scary for me. When I found this, I thought, I’ve got to try it. It’s been the best thing I’ve ever done, financially and emotionally. I don’t have those fears and worries anymore. It’s such a comfort.

Brant: I love that. Peace of mind is something you can’t put a value on.

Kathleen: No, you can’t.

Brant: For those watching who are maybe in a similar situation, they’ve got money in the stock market or funds just sitting idle, what advice would you give them?

Kathleen: I’d tell them to take a look at it. Let me share this, there was one thing that really hit home with me when I was reading your book. I think it was in your opening forward or introduction. There was a quote at the top about baby boomers thinking the stock market was the safe haven to grow their money and have a great retirement. That’s just not the case, and that’s me they were talking about.

So, I think exploring and learning about private lending would be great for anybody. I can tell them personally it’s been great for me. I’m a widow, and I don’t worry about money anymore. That’s a big comfort.

Brant: You can’t put a value on peace of mind.

Kathleen: No, you can’t.

Brant: Absolutely. Well, Kathleen, thank you so much for coming on and sharing your experience. I think this will be incredibly helpful and valuable for people watching, especially those just getting started.

Kathleen: Thank you, Brant.

Brant: All right. You did great, you’re a pro.

 

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