Y2 Lending
About the Company
Y2 Lending LLC, founded by Eugene Nilus, focuses on private and hard money lending. The company offers products like Fix and Flip funding, 30-day GAP funding, transactional funding, and EMD funding. Established six months ago, Y2 Lending is already generating between $6,000 and $9,000 monthly by maintaining a high velocity of money movement. Eugene's approach emphasizes personalized financial solutions for real estate investors, making Y2 Lending a vital resource in the industry.
Idea Behind Company
Eugene's venture into real estate lending stemmed from his dissatisfaction with his tech job and a subsequent layoff in 2022. With a mortgage, two kids in private school, and other financial responsibilities, returning to the corporate world seemed unappealing. His initial interest in real estate developed through purchasing small multi-unit properties and joining a mastermind group focused on commercial multifamily apartments. A personal request from a real estate investor to borrow $100,000 introduced Eugene to private money lending, which he financed through a HELOC, marking the beginning of his lending journey.
Creating the Company
Eugene's first lending deal was a learning experience, involving borrowing $100,000 through a HELOC and lending it at a higher interest rate, yielding $850 monthly. Encouraged by this success, he continued networking within his real estate group and leveraged social media to attract more clients. Realizing the need for more capital to meet growing demand, Eugene officially formed Y2 Lending LLC. He educated himself on raising capital, attending conferences, creating content, and seeking investors. Despite initial setbacks, his persistence paid off, eventually partnering with a local investor and forming a multi-member LLC with four investors.
Launching the Business
Eugene's official business launch involved extensive networking, content creation, and attending conferences to gain visibility. His efforts to secure larger funding led to discussions with private equity firms and family offices, although initial attempts were unsuccessful. By producing TikTok-style videos and participating in real estate events, he gradually attracted more individual investors. Forming partnerships and attending specialized conferences further solidified his business model. Eugene's strategic networking and content marketing efforts have resulted in about $700K to $1 million in soft commitments, laying a strong foundation for future growth.
Earnings
Y2 Lending has been profitable from the start, with Eugene making close to $120,000 in gross sales and $90,000 in net proceeds over the past year. As he plans to scale, Eugene anticipates these numbers will evolve with more investors onboard. His ambitious goals include lending $10 million in 2023 and $100 million in 2024. Running lean operations, Eugene primarily uses Google Drive and Sheets for business management but plans to invest in more robust tools as the company grows. His involvement in local meetups and launching a podcast called "The Shift" further supports his mission to inspire and guide others in the real estate industry.
