In our current economic climate, it’s becoming harder to secure capital. Especially in the real estate sector, runaway inflation and increased interest rates have driven a wedge between buyers and traditional bankers. However, one company is solving this issue with a savvy solution.
Private Money Club (PMC) is an all-new way to invest and borrow in the real estate market. It is essentially an intuitive forum and community where private lenders are matched up with real estate entrepreneurs across the country. Also, its networking model is based on a very interesting app type.
Making Your Match at The Private Money Club
PMC’s founder, Chris Naugle, has a bit of experience in the industry. With a history of flipping houses and his own HGTV show, Risky Builders, Chris has been through the real estate wringer. Therefore, he had a couple of goals in mind when creating PMC. First, he wanted to give more control and clout to lenders and borrowers. He also wanted to make it super easy for these entities to connect. This is where he got creative.
“After flipping homes with my wife,” Naugle said, “we had a lot of real estate. I sold off a lot of those investments and decided I wanted to switch gears. I wanted to go from borrowing money to being the bank and lending money.”
This is when it really clicked for Chris, but he realized it wasn’t as easy as he thought to find good borrowers. He began educating people on how to be good borrowers and lenders.
“Then it dawned on me one day,” Naugle said. “I thought, this is a lot like the dating sites that I used way back in the day. There are people out there who need money and there are people out there who have money, but there was no community to connect the two.”
This is how Chris’s matchmaking service Private Money Club was formed and it could not have come at a better time. With our current economic climate, the prospect of private lending is looking a lot more appealing.
“In recessionary periods like these, institutional lenders have been known to pull back on the reins,” he said. “When Wall Street fails everybody, private lending becomes everyone’s flavor.”
Insight on Private Money Club From Institutional Lenders
Kathleen Hayes is a Senior Loan Officer at CrossCountry Mortgage. She’s been in the business for a long time and offers many lending options for unusual buyers. To Kathleen, traditional private money lending really only factors into the investor world and should be avoided by owner-occupied buying.
“Private money lending is an option for the client who has a large down payment but zero income or credit issues,” says Kathleen. “Hard money usually only lends to those purchasing investment property. They are not compliant, so they stay away from owner-occupied locations.”
This is perhaps where PMC has the opportunity to shine. With a range of investors, borrowers, and lenders all looking for the perfect match, this club might have the ability to make connections that would otherwise never realize their compatibility.
By turning traditional private money lending into an intuitive connection platform, PMC could open avenues for niche buyers and new investment opportunities.
From the Private Money Club Lender Perspective
Theresa Tess is a Private Money Club lender. And while she has a background in finance, this new platform has helped her grow her knowledge and investment potential.
“I am learning new ways to manage my money,” says Theresa. “[PMC] has allowed me to redefine my future and begin to create a retirement from the W-2 world.”
The education she’s gained from this community has even impacted her existing financial goals and career objectives.
“This team put together an educational system that will provide you with more than you would ever need,” says Theresa. “I have used the materials and coaching to change the direction of my life.”
For both lenders and those looking to invest, Private Money Club provides a multitude of benefits. In these tough economic times, innovations like these are exactly what the world needs.
