MFREE 106 Trailer # 3 with Brandon Rickman: “Do You Know the 3 Ways Smart Investors Fund Their Deals?”

Aloha, It’s Shelon "Hutch" Hutchinson here! If you’re enjoying 'The Multifamily Real Estate Experiment' podcast, please like, comment, and share our episodes to help us reach and inspire more people. Thank you for your support!

Most people think there's only one way to fund a deal: go to the bank and pray they like your tax returns.

But that’s just one bucket.

In this episode, we unpack three types of lending that every real estate investor (and honestly, every entrepreneur) should understand—because it's not just about the rates... it's about control, relationships, and how fast you can move.

💡 You'll hear how institutional, hard money, and private lending differ—and why private capital built on trust might be the most underrated superpower in business.

This isn't just a real estate conversation. It's a lesson in leadership, credibility, and resourcefulness. Because when the banks say no, how do you still say yes to opportunity?

👉 Which lending path matches your mindset?

#LeadershipInBusiness #PassiveIncomeTalk #RealEstateStrategy

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Episode Transcript

Brandon Rickman (00:00):
So I kind of put, lending into three major

(00:02):
buckets, right?
When I first started in realestate, I thought of there was
only one bucket, and that wasinstitutional lending, which is,
using a bank.
But what I found, especiallywhen I was doing new
construction and building newhouses, that.
They require a lot of paperwork.
they want all your W2s.
They wanna see what your incomefor the last couple of years has
been, and then they'll only loanyou a percentage of the money.

(00:23):
So institutional bank or brokersis the first bucket, usually a
lower interest rate, much moredifficult to get.
The second bucket that you askedabout, we call hard money
lending.
I call hard money lending, whichis a pretty common term in the
real estate space.
But hard money lenders arelarger companies that pool money
from other investors, and thenthey loan it out to other

(00:45):
flippers, other real estateinvestors.
And so it's much easier to get,they don't require all the, tax
records and documentation andall that much easier to get, but
they interest rate is higher.
And then the third bucket, whichI'll cover quickly, we call
private loans.
And some people say, well,what's the difference in private
loans and hard money loans forthe way we break it down?
Private lending is from people,uh, friends and family that know

(01:07):
me, they know my business, theytrust me.
That's the easiest type offinancing in my opinion,
because.
I can negotiate the rate, I cannegotiate the terms, I can
negotiate the payback.
but those lenders also havelimited funds.
Hard money is a little moredifficult than private lending,
but they have much bigger poolsof money to loan out.