Actually, I became aware of investing in private loans back in 2010. I was in the military, going through some very intensive training. I would attend a local real estate investment club, listen to the speakers and gleen information on how I would start my real estate investing career. I was initially focused on either wholesaling or on Fix & Flips, why? Because you never hear of any other method to invest in real estate. Well, one evening after the event there was a private lender who stood up at the back of the room and said, 'Whichever of you real estate investors need money for your fix and flip or your RE projects, let's talk, I'm a private lender.' So I and more than half the room stood in line waiting in line to get a chance to discuss our deal with him. When it was my turn I approached, introduced myself, and explained I was in the US Army, training to become a Green Beret, and how I was going to crush the real estate investment space just like I was crushing my military career. He smiled and kindly said that he would not loan me money even if I was the last person on earth! LOL, well not that bad, but he did point out that there were three keys everyone needed to become successful in whatever they were searching to do, Knowledge, Time, and Experience. He pointed out that because I did not have the time I could not focus on gaining the knowledge, and because I did not have the time nor the knowledge it would be near impossible for me to gain the experience, especially for my line of work. He stated I simply represented too much risk for him and his capital, and that when I had more experience to come back and speak with him. I was offended, to say the least, but I thought about what he said and I came around to agreeing. Several months went by and whenever I was available I would attend and quickly grab a quick conversation with him. After a few months, he asked me a question that would change the direction of my entire outlook on RE Investing. He asked

I often am asked have I ever had a loan go bad. That would be an understatement! One of my mentors once told me he would not invest in any investment unless the sponsor had previously lost $1M or more. I thought that was absurd, but I can now see why that metric is so important. Maybe the $1M is a little crazy, but definitely vetting your potential partners and sponsors to see how much they have lost, and how they handled that obstacle is critical in discovering how they will handle the 'Fire' in the future. As a Special Forces operator, one of our biggest 'tests' was a test under fire. You were never really seen as one of the 'Team Guys' until you had proven your metal while under fire. It says a lot about the individuals' character, tenacity, and grit. When you have $100K's on the line in investments with a sponsor or a partner, you want to know that they have the experience and the character to quickly and immediately act when things start to go south. It is inevitable that in the life of a real estate investor's journey they will hit some insurmountable obstacles. how they handle that and how they choose to overcome that obstacle says volumes about them and their personal ethics. I am proud to say I have walked through some pretty fierce 'fires' both in the military as well the investment side, and I'm still paving pathways for capital investors and continuing to perfect my craft and hone our company's unique 'Turn-Key Private Lending Solution'

During the past 8 yrs I have loaned out more than $20M in private loans, secured to over 120+ properties;
My investors earn an incredible rate of return for a completely hands-off and risk mitigated investment;
I've completed the AAPL (American Association of Private Lenders) Fund Management Certification in 2016;
I have maintained less than a 3% default rate in an industry that normally sees a 5 - 7% default rate.

Being able to face my capital investors after making a very poor investment decision, maintain control of the situation, and see it through to completion. Communication is critical, and the first sign of trouble is when a partner or sponsor begins to miss communication windows. I am honored to say that I maintained my ethics and courage in the face of a seemingly insurmountable obstacle and I was able to rally my capital investors to push through and see a project to completion.

Capital investors have several hurdles that face them when deciding to invest in real estate-backed mortgages. Liquidity, Diversification. Liquidity issues can become apparent in two ways; They have too much lazy capital and not enough loans to invest in, OR they have a loan opportunity but not enough capital (Examples can be provided). The other issue is diversification and this also becomes apparent in two ways; Not enough diversity, such as all their allocated loan investing capital is invested into one loan, OR they invest into many really small loans. This typically means they are in second position (way high risk) or they are collateralizing properties that they would not visit themselves at night which raises a different type of risk altogether. Blue Bay Capital has created a unique opportunity for our capital investors to overcome both these hurdles, Liquidity and Diversification, through our proprietary 'Turn-Key Private lending Solution'.