Proven Results: How Liquid Lending Has Returned $4.5M to Investors
Investing often feels like a balancing act between risk and reward. Yet, for investors with Liquid Lending Solutions, this is a reality. The company has successfully paid out over $4.5 million in distributions to its investors.
So, how does a hard money lender generate such consistent returns for its partners? It comes down to a strategic approach that benefits both the real estate investors who borrow the funds and the capital partners who provide them. Owen Dashner and Collin Schwartz from Liquid Lending sit down and explain how.
How Do Investor Returns Work?
When you invest with a company like Liquid Lending, your money doesn't sit in an account. It's pooled with other funds to provide short-term loans to real estate investors. These borrowers use the capital for projects like fix-and-flips or acquiring rental properties.
The interest and fees paid by these borrowers generate revenue that is then distributed back to the capital partners. It’s a symbiotic relationship: borrowers get the fast funding they need to seize opportunities, and investors earn passive income from the interest generated.
A Look at Liquid Lending's Financial Impact
Liquid Lending Solutions has paid out over $4.5 million in distributions to investors. This has been achieved across more than 550 loans, totaling over $100 million in lending, all without ever missing a payment to an investor. The key to this success lies in a few core principles:
Diversification: Instead of tying an investor’s capital to a single property, funds are spread across a portfolio of over 80 active loans. This "mutual fund" approach minimizes risk.
Expert Underwriting: The team at Liquid Lending is comprised of seasoned real estate investors themselves, so they know how to vet a deal and a borrower.
Short-Term Loans: The focus on short-term loans, typically six-month notes, provides agility and mitigates the risks associated with long-term market fluctuations.
What's a Typical Investor Return?
With Liquid Lending, investors typically see annual returns ranging from 8% to 10%, depending on their investment amount. This consistent income stream is what the team refers to as "mailbox money," which is predictable passive income that arrives without the hands-on hassles of property management.
How is this rate determined? It's based on the interest rates charged to borrowers. Hard money loans have higher rates than traditional bank loans to account for the speed, convenience, and higher risk involved. This margin allows Liquid Lending to offer attractive, secured returns to its capital partners.
When evaluating any investment, it’s important to look for:
A Proven Track Record: Does the company have a history of consistent payments?
Security: Is your investment secured by tangible assets, like real estate?
Transparency: Does the company clearly explain how it generates returns and mitigates risk?
The Advantage of Short-Term Loans
Liquid Lending's focus on short-term, high-yielding loans is a cornerstone of its strategy. For real estate investors, these loans provide the speed necessary to compete with cash buyers and scale their operations. For capital partners, this model offers significant benefits.
The short duration of the loans means capital is not locked up for years. This creates a nimble investment vehicle that can adapt to changing market conditions. It provides a high-yielding debt instrument that offers both strong returns and a degree of security that is hard to find elsewhere.
Build Wealth Through Proven Strategy
The $4.5 million we've returned to investors represents trust, consistency, and a successful partnership model. Liquid Lending has created a powerful engine for generating reliable passive income for its investors. It’s a clear demonstration of how a well-managed, asset-backed lending strategy can deliver powerful and proven results.
