Hey Steve, love the video and all the content you're releasing on this channel! As a former hard money lender turned home builder, I will add that most fix and flip loans today will fund 80-90% of the purchase price, 100% of the rehab budget and with the current interest rate environment, rates are at around 10.5-12% interest and 1-3 points depending on the experience level of the borrower. Hard money lenders can also do new construction loans and DSCR loans for refis and rentals.
Thanks for the update on the current structure , there is no excuse why folks can't get out there and start in real estate . I hope everyone is reading your comment !!!
@@MichaelBarnes-d3k You need to take two parallel roads when you’re in real estate. The way you’re making money right now to pay your current bills needs to be one road. The point of flipping homes or building homes and selling them is to make extra chunk of money that you don’t need. This is a difference between active income and passive income. Do you want to take those chunks of money and eventually put it into some income producing property so you eventually replace yourcurrent active income job. You have to take two parallel roads in the beginning.
Hey Steve, love the video and all the content you're releasing on this channel!
As a former hard money lender turned home builder, I will add that most fix and flip loans today will fund 80-90% of the purchase price, 100% of the rehab budget and with the current interest rate environment, rates are at around 10.5-12% interest and 1-3 points depending on the experience level of the borrower. Hard money lenders can also do new construction loans and DSCR loans for refis and rentals.
Thanks for the update on the current structure , there is no excuse why folks can't get out there and start in real estate . I hope everyone is reading your comment !!!
could you go into more detail on how you are covering living expenses during projects when you are waiting on the profit in the end?
@@MichaelBarnes-d3k You need to take two parallel roads when you’re in real estate. The way you’re making money right now to pay your current bills needs to be one road. The point of flipping homes or building homes and selling them is to make extra chunk of money that you don’t need. This is a difference between active income and passive income. Do you want to take those chunks of money and eventually put it into some income producing property so you eventually replace yourcurrent active income job. You have to take two parallel roads in the beginning.
My biggest obstacle!! This is a great breakdown! I didn’t know this existed.
Read comment above, great snap shot of todays rates and structure ! Better than when I started .
Are there unique tax challenges with hard money lending?
Not that I know of but check with your with your accountant. There will be a large interest write off for sure.
Sent you a DM on TikTok
don't think I got it buddy