 major growth/hard money (by Nicole [PA]) Nov 17, 2017 11:36 AM
 major growth/hard money (by S i d [MO]) Nov 17, 2017 1:31 PM
major growth/hard money (by Ken [NY]) Nov 17, 2017 1:55 PM
major growth/hard money (by S i d [MO]) Nov 17, 2017 2:38 PM
major growth/hard money (by Tom [FL]) Nov 17, 2017 3:52 PM
major growth/hard money (by BRAD 20,000 [IN]) Nov 17, 2017 10:59 PM
major growth/hard money (by Deanna [TX]) Nov 18, 2017 8:14 AM
major growth/hard money (by Ray-N-Pa [PA]) Nov 23, 2017 1:19 PM
major growth/hard money (by Ray-N-Pa [PA]) Nov 23, 2017 1:21 PM
major growth/hard money (by Nicole [PA]) Posted on: Nov 17, 2017 11:36 AM
Message:
have been thinking about Sid's major growth post. I still don't get why an investor would do this. hard money here goes at 11% plus minimum of 2 points. payable within a year or so dependent on the project.
how much is hard money in other areas? --72.95.xx.xxx |
major growth/hard money (by S i d [MO]) Posted on: Nov 17, 2017 1:31 PM
Message:
To be clear, I am not going to be borrowing from anyone, least of all hard-money lenders. Rates are too high and points up front too expensive for anyone other than a short-term flipper or someone who plans to refinance quickly. Plus...you know my feelings on debt. (wink) No need to rehash.
I'm talking to folks in their 50s-60s who do not have enough expertise in evaluating deals to be hard-money lenders, but they dislike the stock market's volatility, prefer tangible assets to back their investments, and who are sick of piddly 2% bank "jumbo" CDs they can't take a penny from for 5 years without a penalty. My plan gives them a steady 10-11% ROI in cash paid out per year, plus I have them bought out in less than 10 years.
It's surprising who all is out there when you start asking around. Hard-money isn't the only kid in town. --173.19.xx.xxx |
major growth/hard money (by Ken [NY]) Posted on: Nov 17, 2017 1:55 PM
Message:
Hard money in my area is about 15% and 5 points,what Sid is talking about is referred to more as private money,someone who can lend it but doesn't really know much about it until they are approached by someone who needs it --72.231.xxx.xxx |
major growth/hard money (by S i d [MO]) Posted on: Nov 17, 2017 2:38 PM
Message:
"is referred to more as private money,someone who can lend it but doesn't really know much about it "
Correct generally, except no lending is involved in what I'm doing.
I know it's hard for folks who are used to borrowing money as the default method for purchasing real estate to think it is possible to do these kinds of deals and "get ahead" without it. But I've been doing it solo now since 2008, and my foundation is built. Getting ready to scale it up and take some folks along for the ride and the profits. All cash purchasing produce stellar discounts, no one can argue. I'm just cutting out the middle man (lender) and going straight to the folks with money and offering them ownership and a nice cash ROI instead of a Note.
I had folks say you can't buy a house for 30%-40% under market. Then I went and did it...14 times in past 3 years! Now folks don't believe I can buy an apartment complex for 20%-30% below market that hits the 2% rule. Heh, watch me. ;-) --173.19.xx.xxx |
major growth/hard money (by Tom [FL]) Posted on: Nov 17, 2017 3:52 PM
Message:
2008 the worst real estate crash created more financial requirements in the real estate market. Especially the Dodd/Frank legislation. The hoops and requirements these banks made you go through were crazy. The Hard Money and Private Money lenders are a better tool for the real estate investor; especially landlords and flippers. Sid you are one of the investors that has made private money work extremely well for you. --99.56.xx.xx |
major growth/hard money (by BRAD 20,000 [IN]) Posted on: Nov 17, 2017 10:59 PM
Message:
I loan out at $500 origination fee and a flat 10% for max 6 months - that's 10% if you borrow it for 1 day or 180 days. Works well for flippers.
Bible says to be the lender, not the borrower.
BRAD
--68.51.xx.xxx |
major growth/hard money (by Deanna [TX]) Posted on: Nov 18, 2017 8:14 AM
Message:
If we want to be Biblical, it technically says not to lend out at interest to your countrymen. :) And we all know the answer to "who's our neighbor?" And later on it takes it a step further and talks about giving without expecting anything back. There's nothing wrong with lending if we want to lend-- "money is like manure; it's not worth a thing unless it's spread around encouraging young things to grow!" --but we've got to keep our scholarship standards up around here and not scramble our philosophies. ;P
--96.46.xxx.xx |
major growth/hard money (by Ray-N-Pa [PA]) Posted on: Nov 23, 2017 1:19 PM
Message:
It is better to give than to pay back --24.101.xxx.xxx |
major growth/hard money (by Ray-N-Pa [PA]) Posted on: Nov 23, 2017 1:21 PM
Message:
I can get it at about 8% but they will charge 6 points. It is so much cheaper to just get a LOC and use that --24.101.xxx.xxx |
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