5. The Challenges of Real Estate Investing and Hard Money Lending

Find A Way with Matt Lavinder

About the Guest:

In this episode, we are joined by Derik Young, a seasoned professional within the real estate investment financing space. Currently affiliated with Vontiv, a financial technology startup, Derik works as a lending advisor, helping hundreds of investors monthly navigate the complexities of real estate lending. Hailing from Pittsburgh, Pennsylvania, with an educational background in Ohio, Derik brings a wealth of experience from different regions in the U.S., including the East Coast, Midwest, and the West Coast where he now resides in Southern California.

Episode Summary:

In an engaging conversation covering the dynamic world of real estate financing, host Matt Lavinder welcomes Derik Young to discuss the nuances of real estate investment lending and the critical role lenders like Vontiv play in the real estate ecosystem.

Derik offers an insightful look into how Vontiv operates not just as a lender, but as a key partner for investors looking to grow and stabilize their portfolios. He sheds light on the various financial products and services, such as short-term value-add loans and long-term debt service coverage ratio loans, crafted specifically to meet investors' unique needs. The episode dives into the qualities and strategies that make a successful real estate investor and discusses how financial technology companies like Vontiv are revolutionizing the way investors finance their projects.

Key Takeaways:

• Derik Young's background and his transition from insurance to real estate investment lending highlight the diversity and multi-regional expertise in the real estate industry.
• Vontive profiles as a tech-forward startup focusing on solving the fragmented nature of investment real estate lending, aiming to become a reliable financial partner for investors.
• Discussion on how different loan products are designed to cater to various investor strategies and the importance of understanding the math and risks involved in property renovation.
• The importance of qualities such as proactivity, problem-solving, and resilience in successful real estate investing is emphasized.
• Challenges in scaling real estate investment operations and the necessity of forming strategic partnerships to create competitive advantages and handle larger projects.

Notable Quotes:

• "We're trying to play the long game and be a long term partner with them [investors].” – Derik Young
• "Real estate is unique because you can use other people's money to fund it." – Matt Lavinder
• "Problems come up, you can't complain about them… let's figure out how to get them done together." – Derik Young
• "You can't do anything big by yourself." – Matt Lavinder
• "Good teachers, tend to have a deep empathy because they can see it from a student's perspective, which is really valuable for teaching." – Matt Lavinder

Don't miss out on the full breadth of insights and experiences shared in this episode. Tune in to the podcast to understand the fascinating world of real estate investment lending with Derik Young and stay updated for more invaluable discussions about the real estate market and investment strategies.