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Study Hall: Real Estate Hard Money Loans & Asset Based Lending Explained · Earn Your Leisure

• 0:00
  Speaker 1: You're taking your money out. Be it not home equity loans, right,
• 0:03
  Speaker 1: you're taking money out.
• 0:04
  Speaker 2: No, it's the hard money, like not just the hard money.
• 0:08
  Speaker 3: So key words ASCID based slender, acid based lender.
• 0:12
  Speaker 2: Yes, it's income based.
• 0:13
  Speaker 3: Lenders will be like Wells Fargo, your Bank of America,
• 0:16
  Speaker 3: you know, your local bank. They're the income based. You know,
• 0:18
  Speaker 3: you go to them, they want to see the pill
• 0:19
  Speaker 3: credit score. They want to you know, they want to
• 0:21
  Speaker 3: see that you have a really good income taxes. You know,
• 0:23
  Speaker 3: they're actually making good money. Yourself, me, all of my
• 0:26
  Speaker 3: money comes from real estate. So when I go to
• 0:28
  Speaker 3: a bank, and you know, I still try it out
• 0:30
  Speaker 3: once in a while because they got a really good
• 0:32
  Speaker 3: interest right now alway getting that for the loans, because
• 0:33
  Speaker 3: it's like all they see is like, oh, they just
• 0:35
  Speaker 3: see all these expenses. Everything's coming from real estate. So
• 0:38
  Speaker 3: for them it's like, oh my god, it's like such
• 0:40
  Speaker 3: a high risk.
• 0:40
  Speaker 2: You know, we can't we can't rap with them.
• 0:42
  Speaker 3: But when you go to these ASCID based lender, they
• 0:44
  Speaker 3: don't see any of that. All they're seeing is like
• 0:45
  Speaker 3: what is the house, Like, this is the house right now?
• 0:47
  Speaker 2: What how much you think is worth? It's worth this much.
• 0:50
  Speaker 2: All right, this is how much run?
• 0:51
  Speaker 3: Now there's how much some collecting the rent, so it's
• 0:53
  Speaker 3: like all right, cool, yeah, you can give you the
• 0:54
  Speaker 3: loan on that.
• 0:55
  Speaker 1: So outside of hard money lenders, who else is the
• 0:57
  Speaker 1: asset based slender acid based slender the one I used
• 1:01
  Speaker 1: right now out they're called Visio.
• 1:02
  Speaker 2: So they're like they're like companies. Yeah, the companies the
• 1:05
  Speaker 2: nation wide nation wide no no, this is no. They're
• 1:09
  Speaker 2: nationwide legit bank companies. But they just work with investors.
• 1:13
  Speaker 2: What's the one that you use? Visual lengthing is the
• 1:16
  Speaker 2: one that I'm currently using right now. That's another thing too.
• 1:18
  Speaker 3: I mean, you got to keep these guys in rotation
• 1:19
  Speaker 3: because it's like the other lender that I used before,
• 1:22
  Speaker 3: they will give me seventy percent. Now this one gets
• 1:24
  Speaker 3: seventy five percent. That five percent that's a huge difference.
• 1:27
  Speaker 3: You know. It's if you're talking about three hundred thousand
• 1:30
  Speaker 3: dollar the house, that's fifteen thousand dollars.
• 1:32
  Speaker 2: What's the interest rate usually from that compared to like
• 1:34
  Speaker 2: a regular traditional thing, the traditional bank. My choice was
• 1:37
  Speaker 2: like five percent. These guys are choices like sixtion and
• 1:39
  Speaker 2: a half.
• 1:40
  Speaker 3: Yeah, and then it is a five year arm sor
• 1:43
  Speaker 3: after five years you have to either sell our house
• 1:45
  Speaker 3: and have to refive.
• 1:47
  Speaker 2: And we kind of spoke off camera, but we said
• 1:49
  Speaker 2: harm money. Anybody could be a hard money lender, right.
• 1:51
  Speaker 2: They do it individually, or you can team up with
• 1:53
  Speaker 2: a bunch of people exactly.
• 1:54
  Speaker 4: And I think one of the other things is that
• 1:56
  Speaker 4: the timeframe, right, the timeframe when they want their money
• 1:59
  Speaker 4: back is obviously a lot different. This is not a
• 2:00
  Speaker 4: thirty year thing, right, They want their money back in
• 2:03
  Speaker 4: like what are some of the timeframes.
• 2:04
  Speaker 3: Well, hard money lenders they want their money back ideally
• 2:06
  Speaker 3: like in one year.
• 2:07
  Speaker 2: They might give an extension for another six months or
• 2:09
  Speaker 2: another year. With these cash up.
• 2:11
  Speaker 3: Asset base lenders, they'll give you loans for a fixed
• 2:14
  Speaker 3: for five years. It's like the thirty year mortgage, but
• 2:18
  Speaker 3: basically is like an interest rate for five years, seven
• 2:20
  Speaker 3: years to ten years. But after you know, at one
• 2:22
  Speaker 3: point they want you to either you know, refive them
• 2:25
  Speaker 3: out sell the house, or you could go with the
• 2:27
  Speaker 3: thirty year program, but the interest rate's.
• 2:28
  Speaker 2: Gonna get higher. You might look at like an eight
• 2:30
  Speaker 2: and a half nine percent. So I'd rather just go
• 2:32
  Speaker 2: with the short terms.
• 2:33
  Speaker 3: I figured, you know, five years for me is like
• 2:34
  Speaker 3: a long time, and I'm constantly evolving in real estate.
• 2:38
  Speaker 3: So I figured, like, you know, get the lower interest
• 2:40
  Speaker 3: rate just to increase the cash flow, and then in
• 2:42
  Speaker 3: five years, I'll figure it out.
• 2:43
  Speaker 2: You know, what's the next So what do you usually
• 2:45
  Speaker 2: do in five years? What do you do? What's your
• 2:47
  Speaker 2: game plan?
• 2:48
  Speaker 3: But let's just say right now, I work with it
• 2:50
  Speaker 3: with my portfolio right now. Right now, I just started
• 2:53
  Speaker 3: building brand new construction houses. Those I'm not going to keep.
• 2:58
  Speaker 3: Had I done you construction a couple of years, I
• 3:00
  Speaker 3: definitely would have kept them. But my mindset right now
• 3:03
  Speaker 3: is to develop buildings. And I already have the land
• 3:05
  Speaker 3: to start developing buildings, but I feel like that's like
• 3:07
  Speaker 3: too far to reach for me right now.
• 3:09
  Speaker 2: Yeah, So what I'm gonna do.
• 3:10
  Speaker 3: I'm gonna up sunning about from ten to fifteen new construction,
• 3:13
  Speaker 3: sell those, get that money, and then start building the buildings.
• 3:17
  Speaker 2: So like in five years, I already have a couple
• 3:19
  Speaker 2: of buildings.
• 3:20
  Speaker 3: Once I start developing the buildings, Let's say, if I
• 3:22
  Speaker 3: develop a thirty in the building, I'm gonna start unloading
• 3:25
  Speaker 3: thirty units of these like small properties, like I don't
• 3:27
  Speaker 3: want to deal with like the headqu of these smaller
• 3:29
  Speaker 3: ones when I can have thirty tens in one section.
• 3:31
  Speaker 4: If this sounds like Monopoly, it is like I really
• 3:35
  Speaker 4: watched your vision board and like the last board is
• 3:38
  Speaker 4: like and when I get all these things, I'll have
• 3:40
  Speaker 4: my monopoly. So you're starting with the little greenhouses until
• 3:44
  Speaker 4: you can get the red building, right and once you
• 3:46
  Speaker 4: start doing.
• 3:46
  Speaker 1: That, three three greenhouses in one red hotel, that's hotel hotel.
• 3:51
  Speaker 1: If you understand me, now I'll see all the topics
• 3:53
  Speaker 1: stand monopoly, you can understand how to make money in
• 3:55
  Speaker 1: this world.
• 3:55
  Speaker 2: I'm gonna take this right now.
• 3:56
  Speaker 3: Like the way I play Monopoly as a kid, and
• 4:00
  Speaker 3: even now, that's the same way I approach real estate.
• 4:04
  Speaker 3: It's like my strategy when I play Monopoly is just
• 4:06
  Speaker 3: you know, obviously you got to go around go to
• 4:07
  Speaker 3: just collect money. But whenever I land on a piece
• 4:09
  Speaker 3: of property, I try to get that property. Like I
• 4:12
  Speaker 3: focus is just getting like the property, and then you know,
• 4:14
  Speaker 3: focus on getting like kind of like the like the houses.
• 4:16
  Speaker 3: It's kind of like that sort of what I've been doing.
• 4:18
  Speaker 3: It's like if I see a really good deal and
• 4:19
  Speaker 3: I land on it, I'm gonna try to get it.
• 4:22
  Speaker 2: You know, it's like nothn't.
• 4:23
  Speaker 3: Let it pass out. Now I own properties that are
• 4:26
  Speaker 3: kind of like next to each other. If you look
• 4:28
  Speaker 3: at a building anywhere you go and you really size
• 4:31
  Speaker 3: up the building, you realize, like, you.
• 4:32
  Speaker 2: Know what, it's not that big of a land.
• 4:34
  Speaker 3: It's just that a small piece of land. They just
• 4:36
  Speaker 3: they just went, you know, pretty high up and they
• 4:38
  Speaker 3: have all these hunits. So then the city is where
• 4:40
  Speaker 3: you're gonna find the buildings. You're not gonna find them
• 4:42
  Speaker 3: in the suburbs. So now if you basically it's sort
• 4:44
  Speaker 3: of just like monopoly, if you get you know, four properties,
• 4:46
  Speaker 3: and on those four properties like you proba building.
• 4:49
  Speaker 1: All right, So that least perfect segue into our next
• 4:53
  Speaker 1: segment where we're going to talk about your next level
• 4:55
  Speaker 1: of what you're doing, which you would just briefly talk about,
• 4:58
  Speaker 1: but we're going to go into details for to the
• 5:00
  Speaker 1: next level.
• 5:01
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  Speaker 5: An illegal alien from Guatemala charged with raping a child
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  Speaker 5: in Massachusetts. An MS thirteen gang member from Al Salvador
• 7:13
  Speaker 5: accused of murdering a Texas man of Venezuelan charged with
• 7:18
  Speaker 5: filming and selling child pornography in Michigan. These are just
• 7:22
  Speaker 5: some of the heinous migrant criminals caught because of President
• 7:25
  Speaker 5: Donald J. Trump's leadership. I'm Christy Noman, the United States
• 7:29
  Speaker 5: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 7:34
  Speaker 5: crossings are at the lowest levels ever recorded, and over
• 7:37
  Speaker 5: one hundred thousand illegal aliens have been arrested. If you
• 7:41
  Speaker 5: are here illegally, your next you will be fined nearly
• 7:45
  Speaker 5: one thousand dollars a day, imprisoned and deported. You will
• 7:49
  Speaker 5: never return. But if you register using our CBP home
• 7:52
  Speaker 5: app and leave now, you could be allowed to return legally.
• 7:56
  Speaker 5: Do what's right. Leave now. Under President Trump America's laws,
• 8:01
  Speaker 5: border and families will be protected.
• 8:04
  Speaker 4: Sponsored by the United States Department of Homeland Security.
• 8:07
  Speaker 2: Two players that was gonna play with some real money,
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• 8:15
  Speaker 1: But if anybody from that era, you remember they were
• 8:17
  Speaker 1: playing Monopoli with real money.
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  Speaker 2: But Finando's actually really.
• 8:21
  Speaker 3: Playing like it's not a rat, it's bigger than rat.
• 8:30
  Speaker 2: So all right, So now you talked about the blueprint as.
• 8:33
  Speaker 1: Far as to buy the homes and then to get
• 8:36
  Speaker 1: the money out of the homes and then buy another
• 8:40
  Speaker 1: home and kind of keep that's like bone what you're
• 8:42
  Speaker 1: saying that. See, all successful people have a plan, right,
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  Speaker 1: nobody just start. We had another guest on episode eleven,
• 8:49
  Speaker 1: shot Derek Falcon. He was a great episode on He's
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  Speaker 1: a restaurant own in Baltimore, and he spoke about you
• 8:55
  Speaker 1: have to have a vision right his he was like
• 8:57
  Speaker 1: whenever he goes into something, he thinks about like what
• 8:59
  Speaker 1: is his grain kids kind of inherit, Like you know,
• 9:01
  Speaker 1: that's like his play, like what's the grand kids going
• 9:03
  Speaker 1: to inherit?
• 9:04
  Speaker 2: Even though he doesn't even have kids yet, I don't
• 9:06
  Speaker 2: think so.
• 9:09
  Speaker 1: But so that's like you gotta always think three steps ahead.
• 9:12
  Speaker 1: So you already you're already playing three steps ahead.
• 9:14
  Speaker 2: Right. So you did the you're doing the real estate thing.
• 9:18
  Speaker 1: With the mixed unit well multi level homes and things
• 9:21
  Speaker 1: that nature most femly homes. But the next play is
• 9:24
  Speaker 1: a bigger play, right, so we want to talk about
• 9:27
  Speaker 1: that in this segment. So you told me over the
• 9:30
  Speaker 1: phone when we spoke, and I saw at the seminar
• 9:32
  Speaker 1: that now you're just buying plots of land right here.
• 9:35
  Speaker 2: Now you're a real estate developer. Can you talk about that?
• 9:41
  Speaker 3: Yeah, So a couple of months back, like I was
• 9:44
  Speaker 3: with with with Caesar, and so we went at a
• 9:45
  Speaker 3: political function and we're just you know, chopping, and he
• 9:49
  Speaker 3: shows me, you know, he's like, look like if he's
• 9:52
  Speaker 3: last day for sale, like you're interested? And I looked
• 9:54
  Speaker 3: at him, I saw the addresses. I was like, man,
• 9:57
  Speaker 3: I'm just garbage. He's like you posted two seconds.
• 10:01
  Speaker 4: Because when I say lots right, a lot of people
• 10:03
  Speaker 4: will think, oh, you're buying a parking lot.
• 10:05
  Speaker 2: No, so I think that that goes over like they
• 10:09
  Speaker 2: know he's buying your lives.
• 10:11
  Speaker 3: Basically that's where your properties, like the house is located exactly.
• 10:13
  Speaker 2: Okay, So he looks at them soil He's like, yeah,
• 10:16
  Speaker 2: fore the same thing. But as I'm looking.
• 10:18
  Speaker 3: Through, I saw there was one address that popped up
• 10:20
  Speaker 3: and it was two lots and it went next to
• 10:23
  Speaker 3: two properties that already owned that are right next to
• 10:25
  Speaker 3: each other. So I was like, oh, wait a minute.
• 10:28
  Speaker 3: I was been looking for that one. I was like this,
• 10:30
  Speaker 3: I was like, so I was like, yoh, let me
• 10:32
  Speaker 3: get that list. He send it over to me and
• 10:33
  Speaker 3: then reached out to the roltor. But I just one
• 10:35
  Speaker 3: of those two. I wasn't interested interested in the other ones.
• 10:38
  Speaker 2: Yeah.
• 10:38
  Speaker 3: So but the guy was like, nah, the seller he's
• 10:41
  Speaker 3: only willing to basically sell the whole everything together, Like
• 10:44
  Speaker 3: he's not gonna just make a picklech once you want.
• 10:47
  Speaker 3: So I still push for I was like, you know what,
• 10:48
  Speaker 3: then I'm about it. You know, I try to squeeze
• 10:50
  Speaker 3: in half of them. I like put some them.
• 10:52
  Speaker 2: Off for like half. He's like, nah, he wants, he wants.
• 10:54
  Speaker 2: You know, you gotta buy everything.
• 10:55
  Speaker 3: So I lowbolled them on everything, and just with the idea,
• 10:58
  Speaker 3: I said, you know what, I'm gonna buy everything. And
• 11:00
  Speaker 3: as soon as I buy the numbers that it gives
• 11:02
  Speaker 3: it to me at this price, I could just throw
• 11:04
  Speaker 3: it back up the market, just make a few dollars
• 11:06
  Speaker 3: on it.
• 11:07
  Speaker 2: So get into the process. I ended up going on
• 11:10
  Speaker 2: the contract. As I'm going on the contract, I'm started
• 11:12
  Speaker 2: doing more research.
• 11:13
  Speaker 3: I started researching brand new constructions, and I noticed that
• 11:17
  Speaker 3: they were selling for like three fifty three thirty three sixty,
• 11:23
  Speaker 3: And I realized that they are new constructions. But these
• 11:26
  Speaker 3: new constructions were built in two thousand and three. Now
• 11:30
  Speaker 3: these will be built in twenty eighteen. So I was
• 11:32
  Speaker 3: like waiting, that means that these have to be worth
• 11:34
  Speaker 3: a lot more than so at least three seventy five.
• 11:38
  Speaker 2: So I figured I so the key like no Number one,
• 11:42
  Speaker 2: you got to know where you can you sell something for.
• 11:44
  Speaker 2: So like I had three seventy five, So now how
• 11:46
  Speaker 2: much am I paying for these lasts? On average?
• 11:49
  Speaker 3: I was like paying like twenty five twenty five thousand,
• 11:52
  Speaker 3: how many left to jubay twenty two, twenty five thousand
• 11:56
  Speaker 3: a piece?
• 11:56
  Speaker 2: Twenty five thousand piece here? And there was like another
• 11:58
  Speaker 2: like a two family endre that they just kind of
• 11:59
  Speaker 2: like the will. So how do you? How do you?
• 12:02
  Speaker 1: How do you?
• 12:02
  Speaker 2: How do you? How do you buy lives? You buy
• 12:03
  Speaker 2: in cash? Can you get like a moan for that? Yeah?
• 12:07
  Speaker 2: That was like a message.
• 12:07
  Speaker 3: But I'm calling up like the hard money numbers that
• 12:09
  Speaker 3: I use, and they're like, we don't know what I'm making.
• 12:11
  Speaker 3: Last I was like, wait, okay, I just put up.
• 12:16
  Speaker 3: I just put up like twenty thousand dollars now refundable.
• 12:18
  Speaker 3: Sure you can't on me on this, Like now you
• 12:20
  Speaker 3: know what you gotta put up like fifty percent.
• 12:22
  Speaker 2: It's like I can't. I was like, no, that's too much.
• 12:24
  Speaker 3: And I started making phone becaus and I started explaining
• 12:26
  Speaker 3: to them, you know, I have the conversation.
• 12:27
  Speaker 2: I know how much business we've done. You know we
• 12:29
  Speaker 2: got you got some great content. If I close my mind,
• 12:33
  Speaker 2: what's all about relationship? You know some really good relationships. Man.
• 12:37
  Speaker 3: I'm a quiet guy, Like you know, I'm not like
• 12:38
  Speaker 3: a bit speaker, but you know, when it comes to
• 12:40
  Speaker 3: like you know, business and stuff and then get on
• 12:41
  Speaker 3: that phone.
• 12:42
  Speaker 2: It's like, you know, I started like I start transforming.
• 12:43
  Speaker 5: Man.
• 12:43
  Speaker 2: I'm like like Michael Jackson gets on stage. You know,
• 12:46
  Speaker 2: quiet do off stage, but on stage has the performance
• 12:49
  Speaker 2: showtimes so so long time shot. I convinced them to
• 12:52
  Speaker 2: loan me and uh and they were willing to do.
• 12:54
  Speaker 2: You know, the London was waiting to do twenty percent.
• 13:20
  Speaker 5: An illegal alien from Guatemala charged with raping a child
• 13:24
  Speaker 5: in Massachusetts. An MS thirteen gang member from Al Salvador
• 13:28
  Speaker 5: accused of murdering a Texas. Man of Venezuelan charged with
• 13:32
  Speaker 5: filming and selling child pornography in Michigan. These are just
• 13:36
  Speaker 5: some of the heinous migrant criminals caught because of President
• 13:40
  Speaker 5: Donald J. Trump's leadership. I'm Christy Noman, the United States
• 13:43
  Speaker 5: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 13:48
  Speaker 5: crossings are at the lowest levels ever recorded, and over
• 13:52
  Speaker 5: one hundred thousand illegal aliens have been arrested. If you
• 13:55
  Speaker 5: are here illegally, your next you will be fine nearly
• 13:59
  Speaker 5: one thousand dollars a day, imprisoned and deported, you will
• 14:03
  Speaker 5: never return. But if you register using our CBP home
• 14:07
  Speaker 5: app and leave now. You could be allowed to return legally.
• 14:11
  Speaker 5: Do what's right. Leave now. Under President Trump America's laws,
• 14:16
  Speaker 5: border and families will be protected.
• 14:18
  Speaker 4: Sponsored by the United States Department of Homeland Security,