When it comes to successful real estate investing, knowledge is one of the most precious commodities. You can have millions of dollars in the bank, but if you don’t know how to allocate that capital to produce optimal returns or lack the requisite professional network to complete investment projects on budget and on time, your business simply won’t be sustainable.
Cue: BiggerPockets. Josh Dorkin founded BiggerPockets in 2004 with the mission to create a place where investors could learn, network, market and make deals in a safe online environment. This comprehensive online platform has something to offer investors of all experience levels and portfolio sizes. With a diverse community of over two million, BiggerPockets features tools, content and networking applications that help real estate investors mitigate risk, access invaluable tips, locate ideal business partners, close lucrative transactions and discover flexible financing options to meet their specific needs—all in an effort to make real estate investing less intimidating and remove roadblocks so that investors can achieve true financial freedom.
BiggerPockets has since evolved into the largest community of real estate investors in the United States. As the community has grown, so has the demand for services to help their users.
Over 60% of BiggerPockets users have said that they need help finding a lender in the next 3 months. But many people do not know how to find a great lender. This led BiggerPockets to launch their Hard Money Lending Marketplace, connecting the over 2 million active monthly users with the 150 hard money lenders active on BiggerPockets.
We had the pleasure of speaking to Joseph Coleman, Lending Relationship Manager at BiggerPockets, to learn more about the company’s dynamic and innovative approach to bridging the gap between investors and lenders so that they can help their investors fund more deals.
The BiggerPockets Formula: Information + Connection = Success
The real genius behind BiggerPockets’ success to date is its vibrant community of fellow investors that enables people to learn in a safe environment and discover what types of investment strategies are most effective. The amount of information needed to stay competitive in such a fast-paced industry can be overwhelming—even for the most seasoned investors. Understandably, people have a ton of questions as they plan their next investment move. What strategies are most profitable? How does the most successful investor in my niche market sector enhance profitability? What’s the best funding option for this type of property asset? BiggerPockets allows investors to tap into its immense network of experienced professionals to gain useful insights they can implement themselves.
“BiggerPockets’ true value is that it allows people to see what their peers are doing,” explains Joseph. “You can see the lenders that other investors are using and engage with BiggerPockets in a social way – whether that is asking the pros for references, checking lender reviews, or reading articles on our site. This interactive component of the BiggerPockets platform is the key to providing investors with actionable data that can help them make informed, research-backed decisions with confidence, eliminating the typical doubt and apprehension that all-too-often clouds investors’ judgment.”
BiggerPockets Lenders Concierge: Actionable Information Fuels Productivity
Nothing happens in the real estate investment space without capital. Fortunately, there is a vast network of vetted lenders capable of crafting viable financing options for projects of all shapes and sizes. So why do most investors say that funding deals is one of the biggest roadblocks to getting their projects up and running? According to Joseph, it’s a lack of awareness of the resources available to them—a knowledge gap that BiggerPockets is actively working to bridge. “People looking to launch or expand their real estate investment efforts need education about what lending options are best for them,” Joseph says. “We provide the information and resources to help them narrow down the type of financing that fits their goals. In 2022, we took this a step further by launching our investor phone concierge service, where we match investors with lenders and agents based on their goals.” BiggerPockets’ Investor Phone Concierge service is currently only available to Bootcamp students but after much success they are considering launching this service to all Pro Members on BiggerPockets.
The real estate industry is in a constant state of flux—now more than ever – as the national market continues to adjust and rebound as a result of COVID-19. Changing market dynamics require new lending strategies and a proactive mindset from investors to sustain profit margins and prepare for future developments, something that Joseph is confident makes BiggerPockets’ new lenders concierge service a particularly valuable tool as new trends emerge. “The majority of investors require more education on the variety of available financing options; the big gap that prohibits them from completing deals is a simple lack of awareness. The financial products have changed significantly in just the last 2 years,” he notes. “It is a very dynamic industry and investors need to adapt in order to complete deals in such a competitive environment. BiggerPockets cuts the learning curve for investors and directly links them with the trusted resources they need for deal flow.”
So, what’s next for the BiggerPockets Lending Marketplace? They plan to build on the success of their Hard Money Lending directory by launching their conventional lending directory in late 2022 and are building partnerships right now to enable their success. With the strong support of their members, they believe that they are well positioned to become not only the largest real estate community but also the largest real estate marketplace for bridging the gap to help investors find agents, lenders, and more and ultimately empower investors to achieve financial freedom. Anyone can sign up for a free BiggerPockets account to find lenders and search our lending directory. For direct inquiries, contact the team at firstname.lastname@example.org.