Private/Hard Money Software

[Sean Rowan]

Hi all! Over the last few year, I've been building a small RE fund outside of my day job (I'm a software engineer) and recently have been exploring private lending. I've brokered a few deals, and I was pretty surprised how painful the back and forth was between the lender and borrower. Is there any software out there that makes this process easier? I'm curious what other pain points exist in the space. Would love to hear any insight from folks here. Thanks!

[Doug Smith]

There has always been a disconnect because of the term "banker". I came from retail/commercial banking, so I am a "banker" that made loans at commercial banks. If you work for a Wall Street firm, the term "banker" refers to an "Investment Banker". Bankers like me have formal credit backgrounds and really understand lending, but I admit, I stink at raising capital. Investment Bankers are great at raising capital, but typically don't have formal credit background. What usually happens is that Investment Bankers raise the capital, then they try to underwrite the loans. Often times, they feel confident in doing so, but it can bite them in the behind. Success in the lending world comes when you can marry a banker like me...the lending expert...with the investment banker, the capital-raise expert. Then you've got something. Most of the hard money lenders today are great at the investment banking part, but they've left out the actual lending experience. It's always been my experience that this is the big disconnect and, if we could all simply own up to our weaknesses, embrace our strengths, and find complimentary players, the lending process goes much, much better. Perhaps that's not answering your question, but that's my "insight" from a 35 years "lending banker" perspective.