Cash Flow Based Financing For Your Short/Long Term Rental: Properties, Co-Host & Arbitrage Business with Derrick Barker - Episode #213

Derrick's story started like many investors but took a very unconventional route creating a very unconventional real estate financing company. Derrick started flipping units out of state with other people’s money with his partners who were also college friends at Harvard based out of Boston. They did this all out of state, hitting the ground running. The other people’s money that they used came from levering the money of their Harvard network to invest in Atlanta. They began scaling their portfolio with quadruplexes, condos, and flipping those too. After graduating and experiencing the Wall Street experience at Goldman Sachs as a trader, Derrick was taken aback by the speed at which these corporations are able to get access to capital. While he continue to scale his real estate portfolio, he and his partners took on the opportunity of getting quicker financing for real estate deals. Derrick as co-founder of Nectar took on the challenge of helping investors get fast, flexible, non-debt financing that they need to scale their rental portfolio — without raising equity. Nectar wants to address the amount of time it takes to get financing for real estate across the board: whether it be for a flip, multifamily, long-term rental, or short-term rental without needing to give up equity with partners and/or paying the highest rates to get access to capital quickly. There was an opportunity to make a change in the way the real estate industry gets financing. Derrick speaks from experience as he and his wife Brittany who he also met at Harvard built a $400 million real estate portfolio. Nectar believes that real estate entrepreneurs deserve to keep their upside and Nectar can help them do this by simply looking at your net cash flow as long-term investor, multifamily, short-term rental investor, and even as a property management owner – the cashflow that your portfolio generates is used as a multiple that Nectar can use to calculate a cash advance to buy your next deal or even furnish & redesign your existing short term rentals. The opportunities on how you used your cash advance are up to you. Step into the lab with Derrick to see how his unconventional journey as an entrepreneur and real estate investor can help you with unconventional financing that most investors next door are not using without giving up any equity. HIGHLIGHTS OF THE EPISODE: 22:19 How Derrick Got Into Short-Term Rentals 24:49 How Derrick’s Business Transitioned 30:13 Who Nectar Is Built For KEEPING IT REAL: 04:07 Introduction 10:29 Why Nectar Started 16:02 Affordable Considerations When Buying Properties 16:30 Kinds of Properties Derrick Was Buying 20:10 The Power of Networking 27:45 The Opportunity to Value Add 36:07 The Basis for the Amount of Financing 40:12 What Makes Nectar a Better “Tool”? 43:16 Opportunity to Arbitrage 45:08 Traditional Lending 48:16 The Limit on Money Usage 52:03 Closing NOTABLE QUOTE (KEY LESSONS): 51:44 “...Doing things small is gonna be hard, and doing things big is gonna be hard. So, just be okay with the journey…” – Derrick Barker CONNECT WITH THE GUEST Website: https://www.usenectar.com/ LinkedIn: https://www.linkedin.com/in/derrick-barker-3b1590a/ #moneylending #valueadd #financing