Denver Investment Real Estate

Denver Investment Real Estate


#525: Why Debt Funds Should Be in Every Investor's Arsenal

September 03, 2024

Join host Chris Lopez as he explores the world of debt funds with Justin and Matt, founders of Dynamo Capital. These innovative investors are reshaping real estate finance in Wichita, Kansas – a market that offers surprising opportunities for yield-seeking Denver investors.


In this eye-opening episode, you’ll learn:



  • How Midwest rental yields are dramatically outpacing Denver’s compressed margins, offering a lifeline for cash flow-focused investors
  • Why Wichita is being called “Des Moines 20 years ago” and what that means for early movers
  • The surprising truth about foreclosure rates in debt funds (hint: it’s lower than you might think!)

Justin and Matt break down their unique approach to debt fund management, revealing how they achieve consistent double-digit yields where traditional investing struggles. You’ll hear how they balance the rigidity of conventional lending with the speed of hard money, funding deals in as little as three business days.


Discover how their debt fund:



  • Generated an impressive 82% average loan-to-cost ratio in 2023
  • Maintains an average 63% loan-to-value across their portfolio
  • Provides opportunities in a market where investors are acquiring cash-flowing properties for as little as $55,000

Whether you’re a seasoned Denver investor looking to diversify or a newcomer seeking better returns, this episode is packed with actionable insights. Explore how debt funds are opening doors in markets where rising interest rates have shuttered traditional opportunities.


Don’t miss this chance to expand your real estate horizons and learn how to be the bank in today’s evolving landscape. Tune in now to discover strategies that could transform your investing approach!



https://youtu.be/vPd4waAmS58

Timestamps

(02:02) The Basics of Debt Funds and Benefits


(06:16) Wichita vs Denver Real Estate Market


(12:03) Investing in the BRRR Strategy with a Debt Fund


(20:35) Background of Dynamo Capital


(25:54) Loan Products Offered by Debt Funds


(27:36) Defaults, Foreclosures, and Managing Risk


Links to Podcast

Interested in learning more about Dynamo and the funds they offer? Schedule a call with our team here.


Who is Dynamo

Dynamo Capital, founded in 2023, is a debt fund specializing in residential real estate lending in Wichita, Kansas. Offering fix-and-flip, construction, and long-term financing, they leverage technology and experience to give investors an edge in the lucrative fix-and-flip market. Dynamo balances traditional lending rigidity with hard money speed, typically lending up to 75% of a property’s after-repair value. Their personalized approach and strategic underwriting aim to provide flexible, accessible financing for real estate investors, enhancing clients’ portfolios with agility and expertise.


Disclaimer: This podcast provides educational and informational content only. It does not constitute personalized financial, legal, or tax advice.