In this episode of the Freedom Chasers Podcast, Jeff Newhard, a seasoned real estate professional, shares his expertise and experiences in the real estate industry. Jeff has been in the business for over 30 years and has a wealth of knowledge to offer, especially when it comes to starting a real estate fund.
First and foremost, Jeff emphasizes the importance of finding the right attorney to guide you through the process of starting a SEC-regulated fund. He explains that these specialized attorneys can range from $10,000 to $75,000 depending on their expertise and the services they provide. Jeff recommends interviewing several attorneys to find the best fit for your specific needs.
Jeff's focus is on the fix and flip market, where he provides short-term loans to motivated borrowers, with a low default rate. His private lending business is SEC-regulated, and he is able to market his fund using a 506 C fund. This allows him to work with accredited investors and offer an investment opportunity with a 7% return on investment. Jeff's team handles the entire lending process, from initial evaluation to the draw process, and they even offer support to new investors through joint ventures.
Jeff Newhard also touches on some of the challenges faced in the real estate industry, including working with tenants and navigating the complexities of different cities. He highlights that a passive approach is recommended for real estate investments, as they are slow and steady and don't require a lot of work. Jeff's first year in accounting for his real estate fund is projected to return between 18-19% before expenses, with a 7% pref return for investors and a 2% management fee.
When it comes to starting a real estate fund, Jeff stresses the importance of having real estate experience and a strong understanding of finances and business accounting. He also mentions that taking gains from crypto investments as soon as possible is recommended, as the market can be unpredictable and subject to rapid changes.
In conclusion, Jeff is focused on growing his business and helping others make money. His goal is not to reach a specific dollar amount, but to grow steadily and provide a valuable service to his clients. He believes that helping people succeed is more important than just making money and wants to see his borrowers reinvest in his fund by buying notes. The note-buying market has remained stable and Jeff is part of a small group of fund managers who work together to create 20 to 30 notes a month. They believe that their approach of keeping things steady and consistent has not been affected by changes in the market.
Don’t forget to reach out to Jeff Newhard
Linkedin: linkedin.com/in/jeff-newhard-51592b32
Email: jeff@newiecoprivatecapital.com
Phone: (816) 721-9869
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