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Scholars Corner: What You Need to Know About Hard Money Loans · Earn Your Leisure

• 0:00
  Speaker 1: Your hard money, guys, is going to be what's going
• 0:01
  Speaker 1: to get you through if a flip's going to take
• 0:04
  Speaker 1: you four months? Okay, how much is my rehab? How
• 0:09
  Speaker 1: much is my house? What kind of loan do I need?
• 0:12
  Speaker 1: Let me get in out of this thing? Okay? Fast
• 0:15
  Speaker 1: approval process doesn't take them all. I've seen them on
• 0:19
  Speaker 1: the rinted deal and on the phone. Doesn't take them long.
• 0:22
  Speaker 1: Less strings of credit requirements. They don't really check your credit.
• 0:25
  Speaker 1: I've never really had one look at my credit at all.
• 0:27
  Speaker 1: Now they don't know you your credit is who preferred
• 0:29
  Speaker 1: you seriously because how did you find this person? And
• 0:34
  Speaker 1: you'll find people that throw money at you all the time.
• 0:37
  Speaker 1: I'm a commercial lender. I don't advertise it. I don't
• 0:39
  Speaker 1: put it out there. I never will until unless your client.
• 0:43
  Speaker 1: But there are people who have access to that, but
• 0:45
  Speaker 1: deal with somebody who's in the business already can be
• 0:48
  Speaker 1: used for properties that don't qualify for traditional mortgage instead.
• 0:51
  Speaker 1: It's true, but now attending and investments is where we're at.
• 0:56
  Speaker 1: The cons their higher interest rate loans and fees and
• 0:58
  Speaker 1: traditional mortgage is yes, don't be surprised if it's ten,
• 1:01
  Speaker 1: twelve percent, fifteen percent for ninety days. I'm not tripping
• 1:06
  Speaker 1: on that at all. I need the money. I'm in,
• 1:09
  Speaker 1: I'm out. I'm okay because what I'm going to replace
• 1:12
  Speaker 1: it with pays them off, and I'm fine with that.
• 1:15
  Speaker 1: Chart to repayment terms often less than three months, three years,
• 1:19
  Speaker 1: Sorry they are. You don't have hard money for long.
• 1:23
  Speaker 1: You don't want to be that's too high interest rate
• 1:25
  Speaker 1: to pay for too long. Require larger down payment, often
• 1:29
  Speaker 1: thirty percent. There sometimes your heart. Them in private money
• 1:34
  Speaker 1: pay for each other and the and the deals, what
• 1:37
  Speaker 1: they're investing in. I'm having money, having money and private money,
• 1:43
  Speaker 1: private money, private money. Let's go into private money. Let
• 1:48
  Speaker 1: me see where we at with the private money. Let's see.
• 2:00
  Speaker 1: I don't think I have had private money up here.
• 2:03
  Speaker 1: Let me go private money from here. That's the one
• 2:06
  Speaker 1: that didn't have private money. More flexible lining pres here
• 2:12
  Speaker 1: than traditional mortgage is Yes, fast approval process. Yes, may
• 2:17
  Speaker 1: offer lower interest rates than hard money, and they do. Okay,
• 2:21
  Speaker 1: they're coming from a private person. It may be from
• 2:26
  Speaker 1: it may be a situation where it could even be
• 2:28
  Speaker 1: a smaller institution. Okay, traditional FHA be of a credit union.
• 2:35
  Speaker 1: That's your traditional private money. If you can't get anywhere else,
• 2:39
  Speaker 1: and you're trying to bridge yourself for a year. It's possible.
• 2:43
  Speaker 1: But on the investment side, I use private money and
• 2:45
  Speaker 1: hard money together for my flips, and I think that's
• 2:47
  Speaker 1: the best route to go. Higher interest and fees and
• 2:50
  Speaker 1: traditional Yes, may require a log of down payment. Yes,
• 2:54
  Speaker 1: may require a personal raship with the lender. Of course,
• 2:57
  Speaker 1: of course, you just can't pull these guys out of
• 2:59
  Speaker 1: the air, or should you want to? Okay, nor should
• 3:02
  Speaker 1: you want to? Everybody doing go so far? I know
• 3:06
  Speaker 1: I'm covering a lot of stuff. I don't want to
• 3:08
  Speaker 1: insult anyone's intelligence either. I know some of y'all based
• 3:11
  Speaker 1: on the comments that would in the chat before and
• 3:14
  Speaker 1: study all some of y'all gurus already. So y'all might
• 3:17
  Speaker 1: be a need to be a teacher assistant because I
• 3:19
  Speaker 1: saw y'all your debt covered ratio questions. So everybody goes
• 3:24
  Speaker 1: so far. I don't want to lose nobody, Okay, all right?
• 3:27
  Speaker 1: That I hate that. I don't like asking questions with you.
• 3:30
  Speaker 1: I'm just making it so, y'all good. All right, let's
• 3:32
  Speaker 1: see private boom seller finance. I'm trying not to be
• 3:40
  Speaker 1: How can I say this, I don't want to swear
• 3:44
  Speaker 1: one way or the other, but seller finance, I'm gonna
• 3:47
  Speaker 1: drop a small diamond, y'all. If you understand how to
• 3:50
  Speaker 1: use the financing in real estate, you can understand how
• 3:54
  Speaker 1: to use the same financing to buy a business as well.
• 3:58
  Speaker 1: It's not that different at all. And when you get
• 4:02
  Speaker 1: those two together, listen to me, you can be the
• 4:04
  Speaker 1: true investor. Trust and believe me. Seller financing biased. Yeah
• 4:09
  Speaker 1: you know, I'm trying not to be, all right, So
• 4:11
  Speaker 1: seller financing may be easier to qualify for than traditional markets.
• 4:14
  Speaker 1: You're dealing with the seller. You're dealing with the homeowner
• 4:18
  Speaker 1: if they're not trying to get their money right now,
• 4:20
  Speaker 1: and they can take a note from you and they
• 4:22
  Speaker 1: can trust you, they're fine. Most effectsable repayment terms and
• 4:25
  Speaker 1: interest rates can be a good option for properties that
• 4:29
  Speaker 1: do not qualify for traditional financing.
• 4:33
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• 6:23
  Speaker 3: An illegal alien from Guatemala charged with raping a child
• 6:27
  Speaker 3: in Massachusetts. An MS thirteen gang member from El Salvador
• 6:31
  Speaker 3: accused of murdering a Texas man of Venezuelan charged with
• 6:35
  Speaker 3: filming and selling child pornography in Michigan. These are just
• 6:39
  Speaker 3: some of the heinous migrant criminals caught because of President
• 6:43
  Speaker 3: Donald J. Trump's leadership. I'm Christy Nohm, the United States
• 6:46
  Speaker 3: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 6:51
  Speaker 3: crossings are at the lowest levels ever recorded, and over
• 6:55
  Speaker 3: one hundred thousand illegal aliens have been arrested. If you
• 6:58
  Speaker 3: were here illegally, your next you will be fine nearly
• 7:02
  Speaker 3: one thousand dollars a day. Imprisoned and deported, you will
• 7:06
  Speaker 3: never return. But if you register using our CBP home
• 7:10
  Speaker 3: app and leave now, you could be allowed to return
• 7:13
  Speaker 3: legally do what's right. Leave now. Under President Trump, America's laws,
• 7:19
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• 7:22
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• 7:24
  Speaker 1: Now you're like, well, what properties, coach don't apply for
• 7:27
  Speaker 1: general financing? Like how that work? Why would that be
• 7:31
  Speaker 1: a situation? Well, there are some homes that five homes
• 7:37
  Speaker 1: that can be hard to mortgage. Now y'all need to know.
• 7:40
  Speaker 1: This is not a part of the class course work.
• 7:42
  Speaker 1: But I'm like, you know what they need to know.
• 7:44
  Speaker 1: Please have an idea, So please put this link in chat.
• 7:48
  Speaker 1: You need to know what homes could fall into a
• 7:52
  Speaker 1: bad situation. An overbuild house. Some new investors lose their
• 7:57
  Speaker 1: pants because they go this route too fast. Is the
• 8:00
  Speaker 1: prettiest house on the block? Is the biggest house on
• 8:02
  Speaker 1: the block? I want that? But hold on. Remember with
• 8:06
  Speaker 1: last class, and for those of y'all who the first
• 8:08
  Speaker 1: time here, that's something called a CMA, a comparative market analysis.
• 8:14
  Speaker 1: You're gonna pull the top three to five homes that's
• 8:17
  Speaker 1: sold in that area. If I'm looking at a four bedroom,
• 8:21
  Speaker 1: two bath, two harger rides x square footage, Jada YadA,
• 8:26
  Speaker 1: and I want to see what that house should A
• 8:28
  Speaker 1: praise for should sell for I'm gonna pull your realtor
• 8:31
  Speaker 1: will pull the CMA and see, Okay, according to this
• 8:36
  Speaker 1: you three hundred thousand, but this house got so many
• 8:38
  Speaker 1: more features. The owner one's four hundred thousand. Now, bro,
• 8:42
  Speaker 1: you ain't getting that much money. I don't care how
• 8:44
  Speaker 1: much you put into it. So sometimes you can overvalue
• 8:47
  Speaker 1: your house by putting too much into it. Now that's
• 8:50
  Speaker 1: your forever home, do you think? Do you think? Because
• 8:54
  Speaker 1: you could affect somebody's comps. But any smart realtor will
• 8:56
  Speaker 1: pull you out anyway. But be careful not to get
• 8:59
  Speaker 1: caught up indep homes. Okay, unpermitted work. That's why you
• 9:04
  Speaker 1: need a good crew. You got to pull your trade
• 9:07
  Speaker 1: permits to make sure that the work is done. You
• 9:10
  Speaker 1: don't have code violations. Now, as an investor, I mentioned
• 9:14
  Speaker 1: this last week. See this little term here that says
• 9:16
  Speaker 1: code violations. I'm going to my county clerk office and
• 9:20
  Speaker 1: I'm pulling my code violations. You can do this now.
• 9:25
  Speaker 1: All the code violations is a list of them, and
• 9:28
  Speaker 1: the best ones when they got code violations and they moved.
• 9:32
  Speaker 1: It's another class, but it's a good way to find
• 9:34
  Speaker 1: investment properties. The code violations. Now I'm working kitchen or
• 9:39
  Speaker 1: other major problems in the house. You're not gonna get
• 9:41
  Speaker 1: along because it won't pass inspections, it won't get it
• 9:43
  Speaker 1: won't be able to get along. Okay, I lost my
• 9:48
  Speaker 1: skin and I mentioned this before a house I flipped.
• 9:52
  Speaker 1: We didn't look at the piping. They came in with
• 9:54
  Speaker 1: a three D thing, checked underground and pipes was leaking.
• 9:56
  Speaker 1: The old pipes, so we have to redo the pipe
• 9:59
  Speaker 1: before we close. And I didn't get a chance to.
• 10:01
  Speaker 1: I I just broke ethan. Okay, so that happened to you.
• 10:06
  Speaker 1: Flip too often. If a thirty property is okay with
• 10:11
  Speaker 1: most banks, banks know you go make your money, then
• 10:13
  Speaker 1: I stupid. But if this thing has been flipped over
• 10:16
  Speaker 1: and over and over and too many times recently, and
• 10:19
  Speaker 1: they can do a title search and they will and
• 10:21
  Speaker 1: they can tell chain the title if it's been flipped
• 10:24
  Speaker 1: too often, now they won't touch it. So you have
• 10:27
  Speaker 1: to know this. That's why I get your team realtor
• 10:31
  Speaker 1: trade GC Title company. Is your is like that ace
• 10:37
  Speaker 1: and a hole Because if I see a property, I'm like,
• 10:39
  Speaker 1: you know, hey, do a title search on this. I
• 10:41
  Speaker 1: like it, But check this out for me. I got
• 10:43
  Speaker 1: my man software, so I can go in and pay
• 10:45
  Speaker 1: a couple of bucks and run a title search myself.
• 10:48
  Speaker 1: When you do that, then you hit them up again
• 10:50
  Speaker 1: and say, hey, I found this. Can you verify this
• 10:52
  Speaker 1: from the boom over' good mother in law homes. This
• 10:56
  Speaker 1: is becoming more prevalent, though I'm not sure where in
• 10:58
  Speaker 1: the country y'all at. That's a thing called ADUs accessory
• 11:01
  Speaker 1: dwelling units. They're becoming more prevalent, and zoning is allowing
• 11:06
  Speaker 1: this more California big time. So adu's check Q zoning
• 11:13
  Speaker 1: understand where this is at. Because if you can put
• 11:15
  Speaker 1: an ADU on listen, I like the little houses. Let
• 11:20
  Speaker 1: me get the house, let me get the lot. And
• 11:23
  Speaker 1: especially if you know how to build on these lots.
• 11:25
  Speaker 1: You know, like a fifty by one hundred lot is
• 11:27
  Speaker 1: like a standards small lot. Write that down fifty x
• 11:31
  Speaker 1: one hundred, fifty by one hundred a lot. You can
• 11:33
  Speaker 1: build a two story situation. You're good. So if I'm
• 11:36
  Speaker 1: looking at something that's got a little pie shaped lot,
• 11:39
  Speaker 1: I can put something on the back. I'm gonna do
• 11:41
  Speaker 1: it again another way to make investments. But these are
• 11:44
  Speaker 1: the five things that can call you or the slides
• 11:49
  Speaker 1: a way that you cannot get a mortgage. You don't
• 11:51
  Speaker 1: want to get into these deals and not build to
• 11:54
  Speaker 1: get a mortgage on it.
• 11:55
  Speaker 3: An illegal alien from Guatemala charged with raping a child
• 11:59
  Speaker 3: in Massachuset. An MS thirteen gang member from Al Salvador
• 12:03
  Speaker 3: accused of murdering a Texas man of Venezuelan charged with
• 12:07
  Speaker 3: filming and selling child pornography in Michigan. These are just
• 12:11
  Speaker 3: some of the heinous migrant criminals caught because of President
• 12:15
  Speaker 3: Donald J. Trump's leadership. I'm Christy nom the United States
• 12:18
  Speaker 3: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 12:23
  Speaker 3: crossings are at the lowest levels ever recorded, and over
• 12:27
  Speaker 3: one hundred thousand illegal aliens have been arrested. If you
• 12:30
  Speaker 3: are here illegally, your next you will be fine nearly
• 12:34
  Speaker 3: one thousand dollars a day, imprisoned and deported, you will
• 12:38
  Speaker 3: never return. But if you register using our CBP home
• 12:42
  Speaker 3: app and leave now, you could be allowed to return legally.
• 12:46
  Speaker 3: Do what's right. Leave now. Under President Trump, America's laws,
• 12:51
  Speaker 3: border and families will be protected.
• 12:53
  Speaker 1: Sponsored by the United States Department of Homeland Security,