WEBVTT - Study Hall: REAL ESTATE FINANCING 0:00:00.040 --> 0:00:03.600 An illegal alien from Guatemala charged with raping a child 0:00:03.680 --> 0:00:07.480 in Massachusetts. An MS thirteen gang member from Al Salvador 0:00:07.720 --> 0:00:11.840 accused of murdering a Texas man of Venezuelan charged with 0:00:11.920 --> 0:00:15.840 filming and selling child pornography in Michigan. These are just 0:00:15.920 --> 0:00:19.680 some of the heinous migrant criminals caught because of President 0:00:19.720 --> 0:00:23.320 Donald J. Trump's leadership. I'm Christy nom the United States 0:00:23.320 --> 0:00:28.120 Secretary of Homeland Security. Under President Trump, attempted illegal border 0:00:28.160 --> 0:00:31.680 crossings are at the lowest levels ever recorded, and over 0:00:31.760 --> 0:00:34.960 one hundred thousand illegal aliens have been arrested. If you 0:00:35.040 --> 0:00:38.920 are here illegally, your next you will be fined nearly 0:00:39.000 --> 0:00:43.000 one thousand dollars a day, imprisoned, and deported. You will 0:00:43.040 --> 0:00:46.680 never return. But if you register using our CBP home 0:00:46.720 --> 0:00:50.120 app and leave now, you could be allowed to return legally. 0:00:50.479 --> 0:00:55.240 Do what's right. Leave now. Under President Trump, America's laws, 0:00:55.400 --> 0:00:57.840 border and families will be protected. 0:00:57.920 --> 0:01:00.279 Sponsored by the United States Department of Homeland Security. Get 0:01:00.320 --> 0:01:01.920 into the investor loan programs right. 0:01:01.960 --> 0:01:05.399 So, COVID nineteen came, a lot of things changed with 0:01:05.560 --> 0:01:08.559 the underwriting guidelines. But I'm here to tell you guys, 0:01:08.600 --> 0:01:11.679 a lot of programs are opening back up. So we're 0:01:11.680 --> 0:01:16.600 going to talk about tonight conventional financing using traditional Fannie MAE, 0:01:16.640 --> 0:01:20.720 Freddie MAC, income based financing to buy your first property 0:01:20.840 --> 0:01:23.399 or your tenth property. Hard money loans, We're going to 0:01:23.440 --> 0:01:25.319 talk about that. There's been a lot of changes, but 0:01:25.400 --> 0:01:27.920 a lot of hard money private lenders are opening back 0:01:28.000 --> 0:01:31.399 up again. I had conversations with several of them over 0:01:31.440 --> 0:01:35.000 the past week. Programs are coming back, Flexibility is coming back, 0:01:35.040 --> 0:01:37.840 So we're going to go through you know what I found, 0:01:38.400 --> 0:01:42.360 and asset based lending my favorite, right, income based loans, 0:01:43.040 --> 0:01:45.240 your exit strategy to get out of a hard money 0:01:45.240 --> 0:01:48.760 loan if you're doing a buy fix and then you 0:01:48.800 --> 0:01:51.200 want to hold it a long time. So that's the 0:01:51.240 --> 0:01:53.720 great thing that I want to report to you guys, 0:01:53.720 --> 0:01:56.960 that asset based loans are really coming back to full swing. 0:01:57.120 --> 0:01:58.960 So I'm gonna break these programs down for you. So 0:01:59.000 --> 0:02:02.080 conventional finance minimum six to eighty credit score. So I'm 0:02:02.160 --> 0:02:03.600 just going to give you guys kind of like the 0:02:03.640 --> 0:02:06.080 ABC's what you need to qualify. 0:02:05.720 --> 0:02:07.680 For, and then we go through Q and A. I'm 0:02:07.680 --> 0:02:09.120 pretty sure you guys are going to have a lot 0:02:09.120 --> 0:02:10.680 of questions about this stuff. 0:02:10.639 --> 0:02:13.520 So minimum crick six to eighty credit score. It's a 0:02:13.600 --> 0:02:17.080 full documentation loan, meaning it's income base. 0:02:17.560 --> 0:02:17.720 Right. 0:02:17.960 --> 0:02:21.280 W two's taxi turns paced up, just like you're gonna 0:02:21.320 --> 0:02:22.960 buy your primary residents. 0:02:23.240 --> 0:02:23.400 Right. 0:02:23.400 --> 0:02:26.639 Your minimum down payment is fifteen to twenty five percent 0:02:26.639 --> 0:02:29.640 of the purchase price. Now a single family or a 0:02:29.680 --> 0:02:32.320 condo investment property, you can put down as little as 0:02:32.320 --> 0:02:37.840 fifteen percent. Multifamilies, duplex, triplex squads twenty five percent down payment. 0:02:37.880 --> 0:02:39.200 No if ansbuch about it. 0:02:39.760 --> 0:02:43.760 Maximum sellers concession is three percent. Sellers concession guys is 0:02:43.760 --> 0:02:47.120 when the seller agrees to pay a portion of your 0:02:47.160 --> 0:02:50.040 closing cost. So one hundred thousand dollars sales price a 0:02:50.120 --> 0:02:52.600 three percent concession three thousand. 0:02:52.360 --> 0:02:54.760 Dollars that the seller is going to pay. 0:02:55.160 --> 0:02:58.040 One to four family properties like I said, Fanny may 0:02:58.000 --> 0:03:00.640 approve condos. The max loan amount is based off the 0:03:00.680 --> 0:03:04.360 Fandy mad loan limits. Single families are five hundred and 0:03:04.400 --> 0:03:07.400 ten thousand. If you live in high cost areas like 0:03:07.760 --> 0:03:12.400 New York Cali areas like that, single family goes up 0:03:12.440 --> 0:03:14.520 to seven sixty five, and you can go up to 0:03:14.560 --> 0:03:18.800 one point four million dollars with a four family property. 0:03:19.000 --> 0:03:19.359 All right. 0:03:19.520 --> 0:03:24.200 Rehab money is available for conventional investment properties. Only one 0:03:24.639 --> 0:03:29.760 family properties are allowed currently under the Fanny Made Homestyle program. 0:03:29.840 --> 0:03:31.079 That program right now, you. 0:03:31.040 --> 0:03:34.320 Need about a six sixty credit score to start off 0:03:34.360 --> 0:03:38.240 with that. Six to twelve months of reserves are required 0:03:38.560 --> 0:03:42.040 for each property owned. Now, this is one of the 0:03:42.040 --> 0:03:46.520 big things with conventional loans, the reserve requirement. Fanny Main 0:03:46.520 --> 0:03:48.400 and Freddie Mack will allow you to have up to 0:03:48.520 --> 0:03:52.760 ten finance properties, but for each finance property, you need 0:03:52.800 --> 0:03:55.240 to have six to twelve months of reserves. 0:03:54.760 --> 0:03:55.760 For each property. 0:03:55.760 --> 0:03:58.920 It could be in a retirement plan liquid but you 0:03:59.000 --> 0:04:02.760 have to document right. And this is where conventional financing 0:04:02.760 --> 0:04:05.640 gets a little bit tricky because some investors are just 0:04:05.760 --> 0:04:08.880 they just don't have that type of reserves handy. But 0:04:09.040 --> 0:04:11.240 one of the main reasons why you guys would want 0:04:11.280 --> 0:04:14.440 to go with conventional financing is because of the interest rates. 0:04:14.480 --> 0:04:18.120 The interest rates are going to be really cheap. I 0:04:18.120 --> 0:04:20.400 mean right now we're locking in people in the. 0:04:20.320 --> 0:04:23.479 Low four percent range on thirty year fixed mortgages even 0:04:23.520 --> 0:04:30.080 had a couple coming and the hot threes for investment properties, multifamilies, 0:04:30.320 --> 0:04:33.960 refinances and purchases. So that's one of the main reasons 0:04:34.000 --> 0:04:36.640 why you would go with a Fannie May of Freddie 0:04:36.680 --> 0:04:40.040 Mac conventional financing, because you really want to take take 0:04:40.800 --> 0:04:45.080 that cheap money that's available. Now, your LLC can be 0:04:45.120 --> 0:04:48.159 invested in the deed post closing if you are one 0:04:48.200 --> 0:04:50.720 hundred percent owner of that LLC and you're the owner 0:04:50.760 --> 0:04:53.640 of the property, but the mortgage will be in your 0:04:53.640 --> 0:04:56.320 personal name. Okay, you cannot get a mortgage in your 0:04:56.520 --> 0:05:02.279 LLC with conventional financing. So conventional finance, and again many 0:05:02.400 --> 0:05:05.240 many of clients of Minds have used this to buy 0:05:05.600 --> 0:05:10.040 Airbnb properties single families that they want to rehab and 0:05:10.160 --> 0:05:12.920 and rent them out long term because. 0:05:12.680 --> 0:05:14.000 It's the money. It's just so cheap. 0:05:14.760 --> 0:05:20.200 But if you don't again, income base W two's tax returns, 0:05:20.240 --> 0:05:23.200 pay stubs, that's the documents that we need to. 0:05:23.200 --> 0:05:24.200 See rental income. 0:05:24.279 --> 0:05:28.560 We can help use to help you qualify if you 0:05:28.680 --> 0:05:31.480 have a history of collecting rental income. 0:05:31.200 --> 0:05:32.280 On your tax returns. 0:05:33.160 --> 0:05:35.720 So those are the kind of the basics of the 0:05:35.720 --> 0:05:41.080 conventional program. All right, so let's let's move on. We're 0:05:41.120 --> 0:05:45.560 going through this. Okay, guys, good, all right, all right, 0:05:45.600 --> 0:05:48.960 So hard money loans, right, So, hard money loans favorite 0:05:49.000 --> 0:05:53.159 of most investors, especially if you're going to do a. 0:05:53.160 --> 0:05:53.920 Fix and flip. 0:05:54.839 --> 0:05:57.680 You want to buy forll closed property that's a multi failure, 0:05:57.720 --> 0:05:59.279 but you want to hold it in a long run. 0:05:59.520 --> 0:06:01.880 You want to go the hard money route. This is 0:06:01.920 --> 0:06:04.560 the way to get the quickest, cheapest, fastest money. 0:06:04.680 --> 0:06:08.040 If you're buying at an auction, if you're buying, you know, 0:06:08.320 --> 0:06:11.279 one of those properties, if they say all cash, typically 0:06:11.360 --> 0:06:15.679 hard money is allowed. So you have very flexible times 0:06:15.680 --> 0:06:17.680 with this out Let me get back to conventional real 0:06:17.760 --> 0:06:18.599 quick closing time. 0:06:18.720 --> 0:06:21.039 Closing time with conventional loans are going to be. 0:06:21.040 --> 0:06:24.440 Around thirty to sixty days, just depending on the lender also, 0:06:24.480 --> 0:06:29.000 and that's very important if you're in a competitive bidding 0:06:29.000 --> 0:06:31.400 more on a property, you need to be able to 0:06:31.400 --> 0:06:35.240 close fast. So that's a con with conventional loans for investors. 0:06:35.920 --> 0:06:36.960 Just want to throw that out there. 0:06:37.000 --> 0:06:40.119 Closing time with hard money typically around two weeks. 0:06:40.120 --> 0:06:41.880 Some guys say they can do it in ten days, 0:06:41.880 --> 0:06:45.000 but I'll tell yourself, just prepare for two weeks closing. 0:06:45.480 --> 0:06:51.040 There's no income verification, so unlike traditional fanny made loans, 0:06:51.080 --> 0:06:53.560 you don't need W two's pay stuffs, TAXI terms, you 0:06:53.560 --> 0:06:56.719 don't need any of that information. The property is in 0:06:56.760 --> 0:07:00.240 your LLC's name, you will personally guarantee it. But it's 0:07:00.279 --> 0:07:04.080 probably ninety five percent of the hard money private lenders 0:07:04.120 --> 0:07:06.880 out there, they will take a look at your credit score. 0:07:06.920 --> 0:07:09.480 That's why they need a minimum six twenty to six sixty. 0:07:09.800 --> 0:07:11.680 This depends on who you're going to. Some people are 0:07:11.680 --> 0:07:13.680 still as six twenty. Some people want the highest score. 0:07:13.720 --> 0:07:16.920 It just all depends on what you're talking to. But 0:07:18.080 --> 0:07:21.280 you don't need no income documentation, all right. Minimum down 0:07:21.280 --> 0:07:24.520 payment dependent on experience, will be anywhere right now from 0:07:24.560 --> 0:07:28.960 fifteen to thirty percent if you have if you have 0:07:29.040 --> 0:07:31.760 a lot of experience, you can probably get the higher financing. 0:07:32.360 --> 0:07:34.800 But if you don't have experience, if your first time 0:07:34.880 --> 0:07:37.600 and right now, you can expect to put down twenty 0:07:37.640 --> 0:07:40.120 to thirty percent down payment. 0:07:40.680 --> 0:07:41.720 One hundred percent. 0:07:41.480 --> 0:07:45.000 Rehab court is available out of sixty five percent ARV. 0:07:45.480 --> 0:07:48.920 All right, pre COVID, you have some very aggressive lenders 0:07:48.920 --> 0:07:49.440 out there that. 0:07:49.400 --> 0:07:51.080 Will do you just explain? Can you just explain what 0:07:51.320 --> 0:07:51.760 ARV is? 0:07:52.400 --> 0:07:57.000 So after renovated value, okay, after rented value. Renovated value 0:07:57.040 --> 0:07:57.760 is your ARV. 0:07:57.920 --> 0:08:02.160 So it's basically the comps right, that's basically what you 0:08:02.240 --> 0:08:04.360 have to look at when you're going into any type 0:08:04.360 --> 0:08:07.440 of rehab situation. So easy numbers, right, how you figure 0:08:07.440 --> 0:08:11.920 out sixty five percent ARV. So you got one hundred 0:08:12.120 --> 0:08:16.480 fifty thousand dollars acquisition price, fifteen thousand dollars in repairs 0:08:16.480 --> 0:08:22.160 at sixty five sixty five thousand total between rehab and acquisition, 0:08:22.960 --> 0:08:25.760 the helmet will be worth one hundred thousand per the comps. 0:08:25.760 --> 0:08:29.320 The comps are comparable sales, typically within a one mile 0:08:29.440 --> 0:08:34.240 radius of the property sold within the past six months, 0:08:34.720 --> 0:08:36.719 depending on the area. If it's not enough sales, the 0:08:36.840 --> 0:08:40.440 praiser can go further out in time or in distance. 0:08:41.000 --> 0:08:44.200 They just have to notate that. But that's pretty much 0:08:44.240 --> 0:08:45.960 what you want to look for is the comps, and 0:08:46.040 --> 0:08:48.000 that's going to determine. So in that situation is one 0:08:48.080 --> 0:08:51.640 hundred thousand dollars comps, it will sell one hundred k. 0:08:51.840 --> 0:08:54.320 So your ARV in that situation is sixty five percent. 0:08:54.760 --> 0:08:57.040 Man, Man, what kind of interest rates are we looking at? 0:08:57.040 --> 0:08:57.800 Fo hard money? 0:08:58.120 --> 0:08:59.880 So boom, there we go. 0:09:00.000 --> 0:09:03.480 Oh, interest rates are going to be somewhere in that 0:09:03.679 --> 0:09:08.480 right now, nine to fifteen percent range, depending on who 0:09:08.559 --> 0:09:14.120 you talk to, your relationships, new or season investor. You know, 0:09:14.440 --> 0:09:17.960 the guys who've been out here consistently doing numbers, they're 0:09:18.000 --> 0:09:20.959 still getting that nine to ten percent with the more 0:09:21.000 --> 0:09:21.760 favorable terms. 0:09:21.840 --> 0:09:24.599 Right now, the people who are new are getting. 0:09:24.360 --> 0:09:27.960 The thirteen to fourteen percents and the twenty five to 0:09:27.960 --> 0:09:29.160 thirty percent down payment. 0:09:29.920 --> 0:09:33.400 So it's this all depends on where you are in life. 0:09:33.600 --> 0:09:34.920 But again a lot. 0:09:34.880 --> 0:09:37.280 Of them are starting to As America starting to reopen, 0:09:37.360 --> 0:09:40.480 construction starting, people are starting to loosen that up. So 0:09:40.960 --> 0:09:45.720 from what I'm hearing, by mid summer beginning August somewhere 0:09:45.720 --> 0:09:49.160 around there, this should the requirements for down payment should 0:09:49.240 --> 0:09:51.800 go back up if things keep moving the way they're 0:09:51.800 --> 0:09:56.400 going right now, godre all right, So one four family 0:09:56.440 --> 0:09:59.599 investment properties only. You can't buy your primary residents and 0:09:59.600 --> 0:10:03.520 get a hard money loan. It's only investment properties. Some 0:10:03.559 --> 0:10:06.080 hard money lenders are requiring reserves anywhere from three. 0:10:05.920 --> 0:10:06.680 To six months. 0:10:06.760 --> 0:10:09.040 But again, depending on your relationships and who you are, 0:10:09.440 --> 0:10:10.880 you probably don't need no reserves. 0:10:10.960 --> 0:10:13.320 And that's one good thing, not to not to cut 0:10:13.360 --> 0:10:15.240 you offrom that, but not to cut you off. 0:10:15.280 --> 0:10:22.360 But I'm gonna cut you off. But that's yeah, we 0:10:22.400 --> 0:10:22.680 did a. 0:10:22.679 --> 0:10:25.160 Hard money class on Eyo University because a lot of 0:10:25.160 --> 0:10:27.600 people act all the time like you know, who should 0:10:27.640 --> 0:10:29.880 I contact about hard money and stuff like that. It's 0:10:29.880 --> 0:10:32.160 a variety of different people, but it's all about relationships. 0:10:32.160 --> 0:10:33.640 So that's one of the things that we try to 0:10:33.960 --> 0:10:36.800 provide at Eyo University. Also is that you know, you 0:10:36.840 --> 0:10:39.280 have direct access city people. So I believe the gentlemen 0:10:39.320 --> 0:10:42.480 that did the classes he works with DJMV and Cason 0:10:42.880 --> 0:10:44.439 absolutely absolutely. 0:10:44.559 --> 0:10:47.960 Kevin. Kevin a great guy. We can you know, he's 0:10:48.000 --> 0:10:50.040 the go to for the team. I work a lot 0:10:50.040 --> 0:10:50.440 with him. 0:10:50.679 --> 0:10:54.240 He closes a lot of deals for everybody, so yeah, 0:10:54.400 --> 0:10:56.120 he's that guy we use and he. 0:10:56.360 --> 0:10:59.079 Gave everybody his contact and all that, right. 0:10:59.240 --> 0:11:01.840 Absolutely at A lot of the people have been in 0:11:01.880 --> 0:11:06.880 touch with Kevin getting deals done, so he's he's made 0:11:06.880 --> 0:11:13.120 it suff available for eyl University members all right. All right, 0:11:13.640 --> 0:11:16.040 So three to six months are reserves depending on the 0:11:16.120 --> 0:11:20.760 lender closing your LLC. Name only experience is preferred, but 0:11:20.840 --> 0:11:26.200 it's not required, all right, Licensed contractors required. Some lenders 0:11:26.240 --> 0:11:28.679 don't care if you have a licensed contractor or not. 0:11:29.040 --> 0:11:33.720 Just all depends on the lender. Twelve month terms, particularly 0:11:33.720 --> 0:11:36.040 for hard money so you got to have your exit strategies. 0:11:36.080 --> 0:11:37.760 You got to know how you get rid of that property. 0:11:37.800 --> 0:11:40.160 For your newcomers. You don't want to get full closed on. 0:11:40.880 --> 0:11:43.640 You can get extensions depending on who you're talking to, 0:11:43.880 --> 0:11:47.840 anywhere from three months to six months for an extensions 0:11:47.920 --> 0:11:49.440 is going to come out of feed. It's probably going 0:11:49.520 --> 0:11:52.440 to be very expensive. And like I said earlier, TROIT 0:11:52.559 --> 0:11:55.040 interest rates on hard money loans right now ranging between 0:11:55.120 --> 0:11:57.839 nine and fifteen percent and with the points is two 0:11:57.880 --> 0:12:00.680 to four points. Now points is a one percent of 0:12:00.720 --> 0:12:04.920 your loan amount. So if it's one hundred thousand dollars loan, 0:12:05.240 --> 0:12:07.480 you're looking at two points. That's two grand. 0:12:07.920 --> 0:12:08.079 Right. 0:12:08.200 --> 0:12:10.079 The smaller the loan, the more points you're going to 0:12:10.120 --> 0:12:13.720 be charged, the least amount of experience, The more points 0:12:13.720 --> 0:12:16.400 you're going to get charged, the more experienced, the cheaper 0:12:16.440 --> 0:12:17.960 the rate, the cheaper the cost. 0:12:18.640 --> 0:12:20.599 All the terms usually just twelve months or have we 0:12:20.640 --> 0:12:22.760 seen them extended past twelve, like twelve to eighteen? 0:12:23.160 --> 0:12:26.280 Yeah, you've seen them extend up to eighteen. 0:12:26.520 --> 0:12:28.200 You know, there's a lot of lenders that had to 0:12:28.200 --> 0:12:32.040 do four bearans because some investors just couldn't work right 0:12:32.800 --> 0:12:35.280 during COVID. So you know, a lot of that is 0:12:35.320 --> 0:12:38.400 now starting to reopen up again, so extensions might be 0:12:38.440 --> 0:12:41.000 a little bit more generous in the next couple of months. 0:12:41.040 --> 0:12:43.839 But I know a lot of people had to hold 0:12:44.240 --> 0:12:47.040 a lot of notes because of the four barances and everything. 0:12:49.880 --> 0:12:52.120 That you got something on your screen that says the 0:12:52.200 --> 0:12:54.200 recording has been stopped. I mean, it's all good. We 0:12:54.200 --> 0:12:56.920 can still hear you answer you. But yeah, there's like 0:12:56.960 --> 0:13:00.480 some letters on your screen that says, man, we. 0:13:00.559 --> 0:13:05.760 Got my camera trying to Teddy Riley mean, all right, 0:13:05.800 --> 0:13:06.640 so we're gonna keep going. 0:13:07.840 --> 0:13:09.520 Yeah, you're good, keep going. Yeah. 0:13:09.600 --> 0:13:11.920 Yeah, So all right, so we got that's what the 0:13:11.920 --> 0:13:13.560 hard money? We got any questions while I'm doing this 0:13:13.600 --> 0:13:14.040 real quick? 0:13:14.320 --> 0:13:14.800 Yeah we do? 0:13:14.880 --> 0:13:17.839 Actually, yeah, take take one two. 0:13:18.320 --> 0:13:20.360 Well, you got your hosting it, so you gotta put jamal. 0:13:20.400 --> 0:13:22.000 Jamal is trying to ask question as his hand raise. 0:13:22.360 --> 0:13:30.120 Go ahead and take control real quick, all right, gotcha, Jamal, 0:13:30.160 --> 0:13:32.559 we're coming to you. Mute yourself. You've been unmuted. 0:13:35.800 --> 0:13:37.640 On Matt. Yeah, what's going on? 0:13:37.880 --> 0:13:38.320 The quick? 0:13:38.400 --> 0:13:42.960 Question about your experience or was it experience with hard 0:13:43.000 --> 0:13:46.240 money or your experience with uh, you know, rehabbing homes? 0:13:47.200 --> 0:13:49.880 Can you break that down a little bit both, right, 0:13:50.000 --> 0:13:52.319 So mainly didn't want to look for your experience with 0:13:52.440 --> 0:13:52.959 hard money. 0:13:52.960 --> 0:13:53.840 But if you have. 0:13:54.200 --> 0:13:59.959 Investment properties, they will count that also just to pay 0:14:00.160 --> 0:14:00.960 on how many property. 0:14:00.960 --> 0:14:04.200 It just depends on how many properties you are. Okay, 0:14:05.520 --> 0:14:08.559 but what about flipped in the past. Was it in 0:14:08.600 --> 0:14:11.160 the past twenty four months? Yeah? 0:14:11.520 --> 0:14:13.960 Yeah, that's fine. So they'll go back on your resumes. 0:14:13.960 --> 0:14:16.720 So when you're when you guys are applying with lenders, 0:14:16.720 --> 0:14:19.360 they're going to ask you how many transactions you completed. 0:14:20.000 --> 0:14:22.320 Most want to see twenty four months, some will go 0:14:22.400 --> 0:14:24.120 twelve months. But for the most part, if you got 0:14:24.160 --> 0:14:25.200 experience even three. 0:14:25.040 --> 0:14:27.440 Years ago, disclose it. Right. 0:14:27.480 --> 0:14:29.880 The more experience you have, even if it's spread out 0:14:29.920 --> 0:14:33.240 over ten years, Let's say if you did five flips 0:14:33.560 --> 0:14:35.960 or seven flips in the last ten years, like, you 0:14:36.080 --> 0:14:41.120 still have experience, right, Okay, thank you. 0:14:41.240 --> 0:14:43.080 I appreciate you. I appreciate that. 0:14:43.360 --> 0:14:43.960 No problem. 0:14:44.680 --> 0:14:45.200 Yeah, we met. 0:14:45.240 --> 0:14:46.640 I got a couple so I'm gonna go to a 0:14:46.640 --> 0:14:48.760 few months that go. Yeah, yeah, go ahead, all right, 0:14:48.800 --> 0:14:49.600 Patrice be coming to you. 0:14:49.640 --> 0:14:50.880 I meet yourself. You've been unmuted. 0:14:54.120 --> 0:14:56.920 Hi, I had a question outside of flip properties, what 0:14:56.960 --> 0:14:57.640 other benefits. 0:14:57.680 --> 0:15:03.200 Would people use hard money for to flip properties? That's it. 0:15:04.440 --> 0:15:06.800 That's the only Like it's like a hammer, right, What 0:15:06.840 --> 0:15:08.880 else are you gonna use a hammer for just a 0:15:09.000 --> 0:15:11.480 driller nail or hit somebody in the head. 0:15:11.520 --> 0:15:13.960 But like you know what I'm saying. 0:15:13.960 --> 0:15:17.480 But like, hard money is a tool, right, that's the 0:15:17.520 --> 0:15:20.120 main purpose of the tools to flip a house or 0:15:20.160 --> 0:15:23.560 get a house to rehabit. It's short term solution. It's 0:15:23.960 --> 0:15:24.680 quick funding. 0:15:26.640 --> 0:15:28.760 Okay, So not read somebody I see somebody else post 0:15:28.800 --> 0:15:30.240 it to not rehabit holds. 0:15:31.000 --> 0:15:33.480 Yeah, you can rehabit holds. So you can use it 0:15:33.520 --> 0:15:35.960 to rehab the property. You can flip the property, or 0:15:36.000 --> 0:15:37.720 you can hold the property. And that's why you need 0:15:37.760 --> 0:15:40.840 to refinance out of it and get yourself into an 0:15:40.840 --> 0:15:42.760 asset based loan, which I'm a covered. 0:15:42.760 --> 0:15:43.800 Right after I get this camera. 0:15:43.880 --> 0:15:46.160 Right, So you want to refine mat Just from my 0:15:46.320 --> 0:15:49.960 understanding from talking to the guys that really do hard 0:15:50.000 --> 0:15:52.080 money a lot, the reason why you don't want to 0:15:52.120 --> 0:15:55.560 stay in the hard money long long term is because 0:15:55.640 --> 0:15:57.960 the interest rates is so much higher, right. 0:15:58.720 --> 0:16:01.240 Yeah, absolutely, I mean interest rates are much higher. You 0:16:01.240 --> 0:16:05.360 got none to fifteen percent. It's interestingly you know that 0:16:05.360 --> 0:16:07.360 can get expensive depending on your loan amount. 0:16:07.760 --> 0:16:10.320 Right that carrying corust can add up. So you want 0:16:10.320 --> 0:16:10.840 to get out of it. 0:16:10.880 --> 0:16:12.600 And it's only a twelve month term, it's going to 0:16:12.680 --> 0:16:16.160 balloon on you, so you you have to go. Hard 0:16:16.200 --> 0:16:19.120 money is all about getting in and getting out, whether 0:16:19.160 --> 0:16:21.680 you're flipping it or whether you're going to buy and hold. 0:16:21.800 --> 0:16:24.520 You need if you're going to a buide hold or 0:16:24.600 --> 0:16:27.520 rehab and then hold, you need to know your asset lender. 0:16:27.760 --> 0:16:29.360 You need to know who's going to be the person 0:16:29.360 --> 0:16:31.120 that's going to refinance you out of it. You need 0:16:31.160 --> 0:16:33.760 to know their qualifications. You already have to have that 0:16:33.840 --> 0:16:36.160 lined up, so it's a seamless transition. 0:16:36.320 --> 0:16:37.320 You don't get jammed up. 0:16:38.040 --> 0:16:40.120 Man, when you're looking for a hard money lender. Are 0:16:40.120 --> 0:16:43.239 you looking for somebody that is in a close proximity, 0:16:43.360 --> 0:16:45.400 like somebody that's local or can we do this anyway 0:16:45.440 --> 0:16:46.200 in the United States? 0:16:46.280 --> 0:16:49.280 Man, I don't care if they're in Hawaii. You know 0:16:49.360 --> 0:16:52.840 they're able to fund fund perfect. 0:16:52.880 --> 0:16:55.480 Patrice. We appreciate you, thank you, thank you, thank you, 0:16:56.120 --> 0:17:00.800 thank you. Morgan. We coming to you. I mute yourself. 0:17:00.840 --> 0:17:03.840 You've been unmuted. What's going on? 0:17:03.880 --> 0:17:04.200 With fellas. 0:17:04.240 --> 0:17:07.600 How y'all doing. How you I'm all right. 0:17:07.840 --> 0:17:10.879 I had a quick question about you, I said earlier. 0:17:10.880 --> 0:17:13.080 I think it was in a conventional loan for the 0:17:13.480 --> 0:17:17.080 rehab money for the single families. I just wanted to know, 0:17:17.680 --> 0:17:21.440 is there also opportunities to get money or different incentives 0:17:21.480 --> 0:17:25.040 if you get that single family and the opportunity zone. 0:17:27.240 --> 0:17:29.560 If you get the single family and the opportunity zone 0:17:29.600 --> 0:17:32.359 for investment property, you can use family made home style. 0:17:34.720 --> 0:17:37.160 It's not like you get like extra money just because 0:17:37.200 --> 0:17:37.840 it's in the oz. 0:17:38.520 --> 0:17:38.879 I mean that. 0:17:41.000 --> 0:17:43.200 This episode is brought to you by P and C Bank. 0:17:43.600 --> 0:17:46.359 A lot of people think podcasts about work are boring, 0:17:46.600 --> 0:17:50.440 and sure they definitely can be. But understanding of professionals 0:17:50.520 --> 0:17:53.760 routine shows us how they achieve their success little by little, 0:17:54.160 --> 0:17:57.760 day after day. 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