Q&A with Bill Lodge, President, KingsofCapital.com
A Conversation About the Economy, Lending and the Real Estate Industry
Bill Lodge is the CEO and Founder of KingsofCapital.com, a nationwide lending platform he started in 2016. The company is a provider of hard money and private money lending solutions for real estate investors nationwide. Led by Bill, the team includes underwriters, loan officers, and customer service representatives, all dedicated to helping real estate investors succeed in their real estate investments and providing exceptional service to their clients.
REI INK sat down with Bill to discuss his journey in the real estate investment and lending industries and to get his thoughts on the current state of the economy and what may lie ahead in 2024.
Bill, can you give a quick overview of your professional journey?
I got started in real estate when I was 22 years old. I spent $2000 on a Carleton Sheets course in 1997 and it collected dust for two years before I really looked at it. In 1999, I bought my first property using my own cash, credit cards and cash advances, thinking I could immediately do a refinance on the property. Every bank told me I could not refinance for 12 months. I was shocked. I finally found a small local bank to work with that could refinance for me.
After a few years in the business and taking loans, I decided to change my career to lending. I worked at JP Morgan for five years from 2003-2008 until our division was let go due to the economy crash of 2008. However, at that time, I was only 31 years old and already owned 53 rentals. So, after JP Morgan, I took off a few years and was presented with the opportunity of wholesaling with Webuyhouses.com. We were quickly averaging 13-17 deals every month.
Then, in 2015, something strange happened to me. I had a dream about Kings of Capital and something in me said “go for it.” I woke up and searched the domain name and it was already taken. I managed to get in contact with the owner and made an offer he did not refuse. Before I knew it, we negotiated the Facebook, Instagram, Twitter and Domain accounts, and here we are today.
How about your company, KingsofCapital.com?
I started KingsofCapital.com in 2016 after my visionary dream. In a nutshell, KingsofCapital.com is a commercial mortgage lending company providing borrowers with a one-stop national lending platform capable of sourcing all types of Non-Conforming Loans for real estate investors. We lend on SFR, condos, 2-4 units, 5-unit multi-family, mixed-use, office, retail, warehouse, light industrial, daycare and automotive. However, we specialize in the BRRRR method which is a real estate investment strategy that involves buying a distressed property, fixing it up, renting it out, and then refinancing it to get cash to fund further investments. This allows our clients to grow their portfolios and achieve financial stability.
Interestingly, in the early 2000s, I didn’t even know that there were specific processes and strategies for real estate investment, like the BRRRR strategy. I took that strategy and translated it into baseball terms. For example, a perfect BRRRR is 50% ROI (Home Run); 40% ROI (Triple); and 60% ROI (Grand Slam). However, it’s the singles, doubles, triples that win the game.
Another axiom is “Wait for the universe to send you a fastball instead of a curveball.” Anybody can hit a fastball, but not everyone can hit a curve. This translates to analyzing a deal to determine if it is good or bad. If presented with a bad deal or a curveball, wait for the good deal, a fastball. This is what we teach people.
What is the company’s formula for success?
We are successful, but more importantly, we make sure our customers are more successful. Last year we loaned out $42 million and we did that all by word of mouth. Last month alone we loaned about $4.5 million. We teach people, for free, how to make money in real estate and then hopefully they will come to us to borrow money. People come to me for money, but I’m really a problem solver. Our goal is to help people day-to-day, and we want to be a resource for them and not just another line item. Every day I ask myself, “how can I add more value and charge less.”
What are your thoughts on the current economy?
Obviously, I’m watching the economy very closely. It is all about the unemployment numbers, and those numbers will dictate the 2024 economy, as well. The bottom line is, as long as a person’s income is sufficient to support their debt, everything will be fine. Currently, I am seeing a ton of Airbnb regulations that are starting to crash the Airbnb market because they won’t be able to support their debt.
Thoughts about 2024?
Next year will be dependent on the unemployment numbers. I do see more foreclosures in 2024, but that will help with the inventory issues. When inventory increases, that is great news for our investors. Next year we will see an increase in build-to-rent products. Look at it this way; why buy a fixer-upper for say $150,000-$200,000, and then put in $50,000 in rehab costs, when you can buy a brand-new house for less? Builders can manage their costs and produce a cheaper house than an old one.
Do you have some parting thoughts or advice?
I have three pieces of advice: Number One — Just do it. There is never a perfect time to start. Number Two — Divorce your story and marry the truth. Number Three — Follow the axiom, “You can make money or excuses, but you can’t make both.”
As far as parting thoughts go, my wife is a psychologist, and I learned so much from her. Find a purpose in life. Help other people find a purpose in life. Be a free-thinker. Remember that your direction determines your destination. Know your value. Have balance in your life — work, personal, spiritual, and physical. Very simple mantras to live by.
KingsofCapital.com offers a variety of loan products to meet the needs of real estate investors, including hard money loans, short-term loans, bridge loans, and soft money loans. With over 10,000 satisfied borrowers, they are a trusted lender in helping real estate investors achieve their goals. Visit www.kingsofcapital.com/or call 267-630-2875 for more information.
