I hope Lili realizes the value of the information she's giving us! Talk about gem's 💎!!! Man I feel rich!!!! Thanks Lili!!! Much more success to you! 💯
If you think hard money is expensive . . . . I just paid $4,000 up front fees, appraisal, origination, and so forth, for a $56,000 equity loan. It was a 15 year fixed at 3.25% but it took 40 days to close. I have plenty of income and a good credit rating. There are always costs associated with borrowing.
Lili you have no idea how helpful you are! Getting nervous about dealing with hard $ lenders and making an offer on 1st investment property! Can't wait to watch more of your videos!! Girl 💪
Great video Lili. Hard money loans are a great way for first timers. They are almost the only way to get a loan for people who don't have great credit or proof of income when starting out. How do they lend money that way? Well the contract basically states if you default on the loan they take the property form you. Also fix and flip loans are done as a commercial loan which is different from your traditional 15-30 year mortgage loans. To give an example of a hard money lender I use in my area they have 3 tiered options. 1st is 10% down at 11.5% interest with 2.5 points on the origination fee, 2nd is full purchase price lending at 11.5% with 3.5 points origination fee, 3rd is full purchase price lending plus the rehab funds at 11.5% with 4.5 points origination fee. And all 3 of these loans have a flat rate of $850.00 for document fees. Keep in mind these are fix and flip loans only. Hope this helps someone looking to make the leap to get started!
Finally got a seller that agreed with deal and got a buyer. Sent pof and got the contract from realtor. Thanks Lili 👍👍 hopefully everything goes smoothly
I use Longhorn Investment out of Texas, and I'm in Alabama. They lend 75% of Arv, which doesn't require me to come out of pocket too much. They turn around in 3-5 business days. I love them. But please be sure to vet your lenders. Some are scammers and some charge crazy junk fees, others will mess up your closing over craziness. I had this happen a couple of times when I used this company out of Detroit from bigger pockets. Lili, I emailed you in regards to promo. Did you get it? I know you've probably been busy. It's the one from Fab Foundations
@@Jaronimo-dg5ne hey there. Once you've gotten your deal under contract, It's super simple. Just google them for their number and call them up to ask if they fund in your state. If they do, they'll talk you through everything that you'll need to have and do. You'll need to have 15k left in reserves after putting your dp in. That comes in handy when it comes time for repairs. It is a buffer to cover anything that goes over budget. And believe me, you'll use it, because something is always going over budget, (my current overages are the roof and kitchen cabinets that went up unexpectedly). They won't pull your credit until you're fully pre-qualified and ready to go. I don't know what credit score they require. If I had to guess, I'd say 620 like most other companies.
This was so helpful. Thank you so much!I am currently in the process of closing my first hard money deal, we are approved! This video actually help me understand why this does not feel as emotional as I thought it would be which was scaring me. Now, I understand!
Thanks for doing this video. I have a property that I’ve been speaking to the owner directly on. She is willing to sell it. I scared to death of hard money loans. I’m ready to take the leap into my dream journey of REI. Thank you so much for doing this. ❤
The breakdown of the associated fees is so helpful! I spoke with a few HMLs on my area so I will try to run the numbers on a potential (BRRRR) deal I found. I’m all about equity and buy and holds! Thank you!
This is a good video. They lender will never lend if it wasnt a good deal. So thats how you know. You really have to know what your doing with hard money!
We are in the middle of our hard money lender process so far been interesting and we are learning a lot in the process. Hope to close on the house in 2 weeks and get started on renovation in a hot area in our town. Your videos have helped a ton and look forward on testing your new calculator
@KimComplete had we got the house then the market started rising right before we finished renovations. We had a bad agent that talk my partner into a price way to high and we've been sitting on the house forever. Research your selling agents before signing any paperwork and be steadfast with your opening price . If we had we would've sold it already instead of dropping thousands on holding cost
Quick question. How long did the hml process take you? Because im trying to buy a deal but they need proof of funds to even show the house. So im scared that someone will beat me to it
Listening to the lender made it easier to understand stand. I recently flipped a house that I got burned on. Still made money but the personal lender took 1/2 of the profit plus 8% interest of the money to do the project then is charging Me for the cost of his tax guy. I know I should have made a lot more since I do all the rehab. I didn't think his practices were even legal but I signed a contract with some clever yet shady additions he added. I'm trying not to get ripped off again on the next project. Thank you
Hard money is great but you better account for renovation delays. I did a conventional loan and a HELOC for my down payment- but the weather is delaying replacing the roof which is delaying me renting 2 of the 3 units. I closed in October, so I’d be in trouble just because of the weather. Of course all this was missed on the inspection. Smh but I could consider hard money for my next deal now that I have more knowledge.
Thank you ! This is really informative. This video has been eye opener for me. I am glad I chose Hard Money Lending in Dallas County From First Nation Finance LLC. I really trust them.
I love your videos! I watch them daily. As a new wholesaler / investor (who is currently in school to get my real estate license), I find your videos so helpful!
Hi Lili, My daughter, who is 23, wants to start REI. She suffers from anxiety and depression and is in the medical field, but looking to get out and be her own boss. We live in CA about an hour away from Steph Curry (go Warriors). We've just started watching your videos and noticed your Disney shirts. My daughter is a HUGE Disney fan. She would love to walk in your shadow and see how it's done. I think you guys would be great friends as well! Keep up the great work!
I love watching your content. You really do an amazing job breaking it down. I would really enjoy seeing how your commercial rental journey is going. Anyways… keep the content coming!
I have been watching a ton of videos with the hopes of getting a “Firm understanding” understanding of Hard money lending & the process. Thank you so much for going more in-depth on HML and explore the process in greater detail than any other video that I have seen! Thank you 🙏🏽 🤜🏽🤛🏾💕💕💕. This was fire 🔥🔥🔥🔥🔥🔥 KEEP UP TGE GREAT WORK!! 🔥🔥🔥 I’m sharing this with friends and family who want to break into RE Investing 🙏🏾
Thanks for breaking that down. I spoke to a hard money lender and they said they require the investor to put 10 percent of the purchase price down. I never thought of your explanation being the reason why.
I have watched SEVERAL videos on this same subject and FINALLY get it! The way you explain everything is sooooo clear especially for us beginners. Thank you! Do you have videos on how to spot a good deal?
One thing that was not mentioned or asked was personal credit. Some of the hard money lenders want you to have a certain credit score along with a good deal.
If it's a commercial loan which all fix and flip loans are, they will almost never do the traditional credit check because of how the loan is structured. The lender puts a first position lien on the property. That gives them all the protection they need in case the borrower tries to scam them or defaults on the loan payment. Plus if the loan has a rehab fund it is structured in disbursement payments to protect the lender as well.
My understanding is that it will help you to have an entity in first time flipping as a way to protect your personal assets from being sued. Buy insurance on each flip.
Skip the %40 to Uncle Sam. Take that money and roll into a 1031 like exchange and defer those taxes. Put it into the next property or cash out refinance and pay zero in taxes. Roll it into the next property and rent
Your awesome lili! I know I’m a newbie but I know I’m on the right track with wholesaling because my spirit guides name is “lili” too spelt exactly the same as yours, I have known this for years to me it’s another sign to follow this path
Lili, I am in the final stages of my first flip, and I have a private money lender who tells me to establish a proposal. Do I propose 6% interest, ??% of purchase, and ??% of rehab? I don’t want to seem too greedy, or set myself up for failure.
before even considering a hard money loan. You better make sure you have a reliable construction crew who is detailed about estimates. most hardmoney lenders will give you draws as renovation progresses and will have someone come out to check the completion under what was outlined for that draw.
You are amazing! I've been a part of WREIN for the last week. It is super inspirational and a great overview of investing strategies, but it is a bit vague on some concepts. You have given me a clearer insight to hard money! You too are super inspirational! Thank You!
Hi Lili, I have to say, I was incredibly frustrated when I stumbled upon your TH-cam and Instagram content. I had a plan to create some valuable content, but you ruined my plans. It’s not what you think. I was looking for examples of people who downplay the benefits of hard money and label everyone in the industry as predators. Instead, I stumbled across your video. You have a great delivery and quality content. I have some cred when it comes to giving shout-outs - I’ve been in the hard money industry for over 20 years, my clients have funded thousands of loans, and I’ve serviced over 100,000 hard money loans. I have done little to no marketing since I started; if you don't mind, I'll steal a few pointers from you. Cheers, Drew
Lili young superstar, I’ve got to say “thank you” for all your help you’ve given me thru your videos. I never comment on videos, but U are an exception to my rule. Keep’em coming please. 😊
I love the video You taught me alot But a heads up to put the property on the mls without a realtor just use a flat fee service to do so Just give a realtor 1-3% to bring the buyer thats all Save alot more profit
I've been looking for a video that goes over how HM works in a simplified way. You did great at explaining everything with visuals and numbers. The only question i have that I may have missed is- how are the HMLs paid back? In the example you used a $90k loan. How is that $90k paid back to the HML?
HML’s are paid back when you sell the property. They take payment for the amount they loaned to you and the rest after you’ve paid the listing agent their commission will be your profit.
You mentioned that $6,300 is what it will cost to pay back the Hard Money Lender. Does that mean you would to pay $6,300 for 3 months or the $6,300 is that flat dollar amount you will give back to the lender?
@@Liliinvests I would love a video on the columns on your spreadsheet when putting together a list of potential properties. What matters what doesn't. Someone sent me their working file and it seemed like overkill. Everything from the projections on rent, costs, cap rates, days on market down to things I didn't feel were even relevant. When does some one cross the line from diligence to paranoia and inaction?
I started flipping houses in California in 2000 and I used hard money lenders at 12% interest and then they didn't ask you to put money in they put the points in you supposed to pay and that's how they got paid extra points and fees like she said and now they want you to have skin in the game, meaning you borrow $200,000 they want you to come in with about $30,000 back then they would cover everything,
How can we find a private or hard money lender that will fund a flip with extensive rehab cost. The lender I am working with wants me to do nonextreme rehabs less than the purchase price but f the home and wants me to pay out of pocket? By the way, you are the best on TH-cam so far. ❤🎉
FYI - I think your calculation was wrong when you mentioned at $100000 subtract the HML fees or $6300 and the Holding Fees of $1500 should be around $92,200 and not $98,500. Time at 12:42
Can someone get a hard money loan to buy a home ? Or house hack? As their first property and investment property? Or can someone just get the loan to buy a home and later down the line turn into an investment property?
Great video, the first person to make it all make sense imo! You mentioned you have a document that you use to present to the lenders after you find a deal, do you have it for purchase. I would like to use something as such myself. Thanks!
WAIT, did i miss something? Lili says $100k less $6300 interest less $1500 holding costs.....then she says we're at $98,500. Shouldn't we be at $92,200 less realtor fees and taxes? Did I miss something?
Start your LLC now. Some hard money lenders only lend to LLCs and you want to be ready. I put a property under contract in my name, then had to start my LLC and explain to the seller that I needed to resubmit the contact in the name of my LLC. Fortunately I was buying from investors, so they understood. But a layperson may have been suspicious. Also, if you want a business bank loan for any reason (not a mortgage), they require your LLC to be 2 years old.
I have a question that may sound silly. But instead of your profit in this example being 51K, wouldn’t it only be 41K since you spent $10,000 as a down payment? I’m analyzing a deal right now and I wanna make around 50 K profit. But if I subtract the hefty down payment the profit is only 30 K.
![The Perfect BRRRR Deal [$63,369.76 Check at Closing!]](http://i.ytimg.com/vi/f_UBu_GQnbI/mqdefault.jpg)
![The Perfect BRRRR Deal [$63,369.76 Check at Closing!]](/img/tr.png)
*I MEANT 519% ROI NOT $519,000*
See the 4 other types of loans I use to renovate houses: [th-cam.com/video/Ta-MHQ2dOqo/w-d-xo.html]
Guessed as much.
is actually a 19% ROI, which is still very high for that quick turn around
She a beast would love to learn from you
100,000-6,300-1,500=98,500?
I hope Lili realizes the value of the information she's giving us! Talk about gem's 💎!!! Man I feel rich!!!! Thanks Lili!!! Much more success to you! 💯
If you think hard money is expensive . . . . I just paid $4,000 up front fees, appraisal, origination, and so forth, for a $56,000 equity loan. It was a 15 year fixed at 3.25% but it took 40 days to close. I have plenty of income and a good credit rating. There are always costs associated with borrowing.
Early February i closed on a 100% LTV HELOC 2nd, for $43.5k. No closing costs, 1 week closing with an 8% 30 yr fixed with a 2 yr draw.
@@RichRotorheadare you new investor though?
@@tishacroom7056 not an investor
Lili you have no idea how helpful you are! Getting nervous about dealing with hard $ lenders and making an offer on 1st investment property! Can't wait to watch more of your videos!! Girl 💪
Great video Lili. Hard money loans are a great way for first timers. They are almost the only way to get a loan for people who don't have great credit or proof of income when starting out. How do they lend money that way? Well the contract basically states if you default on the loan they take the property form you. Also fix and flip loans are done as a commercial loan which is different from your traditional 15-30 year mortgage loans. To give an example of a hard money lender I use in my area they have 3 tiered options. 1st is 10% down at 11.5% interest with 2.5 points on the origination fee, 2nd is full purchase price lending at 11.5% with 3.5 points origination fee, 3rd is full purchase price lending plus the rehab funds at 11.5% with 4.5 points origination fee. And all 3 of these loans have a flat rate of $850.00 for document fees. Keep in mind these are fix and flip loans only. Hope this helps someone looking to make the leap to get started!
Who is your lender and do they lend in TX?
@@monie5041 They are only working in Washington but I'm sure there are plenty of hard money lenders like them down in Texas.
@@bmaclaps Washington state or Washington D.C. ❓
@@MikeJones-tx6iu don't be so fast Mike, too fast is reckless, and recklessness can get you burnt.. permanently. Slow and steady wins the race
@mikeJones that’s true not only for this career but in general In life great advice..
Finally got a seller that agreed with deal and got a buyer. Sent pof and got the contract from realtor. Thanks Lili 👍👍 hopefully everything goes smoothly
Stop the cap
@@batatasol8540you mad
There's such value in this. I pray for my daughter to meet motivated people like you
I use Longhorn Investment out of Texas, and I'm in Alabama. They lend 75% of Arv, which doesn't require me to come out of pocket too much. They turn around in 3-5 business days. I love them. But please be sure to vet your lenders. Some are scammers and some charge crazy junk fees, others will mess up your closing over craziness. I had this happen a couple of times when I used this company out of Detroit from bigger pockets.
Lili, I emailed you in regards to promo. Did you get it? I know you've probably been busy. It's the one from Fab Foundations
I’m seeking to buy in Texas and I’m California. I’m wondering if hard money will be my best bet.
@@ysl9936 Absolutely. Probably the cheapest in the long run as well.
Hey I would like to talk with you ab how you went ab getting that done.
@@Jaronimo-dg5ne hey there. Once you've gotten your deal under contract, It's super simple. Just google them for their number and call them up to ask if they fund in your state. If they do, they'll talk you through everything that you'll need to have and do. You'll need to have 15k left in reserves after putting your dp in. That comes in handy when it comes time for repairs. It is a buffer to cover anything that goes over budget. And believe me, you'll use it, because something is always going over budget, (my current overages are the roof and kitchen cabinets that went up unexpectedly). They won't pull your credit until you're fully pre-qualified and ready to go. I don't know what credit score they require. If I had to guess, I'd say 620 like most other companies.
Do you do any deals in Jefferson County or Shelby?
Thank you so much for this info! I’ve been so scared of using a hard money lender but this is definitely helping me to get over that. 😊❤️
This was so helpful. Thank you so much!I am currently in the process of closing my first hard money deal, we are approved! This video actually help me understand why this does not feel as emotional as I thought it would be which was scaring me. Now, I understand!
Thanks for doing this video. I have a property that I’ve been speaking to the owner directly on. She is willing to sell it. I scared to death of hard money loans. I’m ready to take the leap into my dream journey of REI. Thank you so much for doing this. ❤
Glad to hear that! Goodluck! Thanks for watching 🙏🏽
Love these videos! Super helpful! I've purchased 40+ homes and I still learn something with each video. THANKS
dam can you purchase one for me? 😂
Good job Scott
Another banger of a video which will help people get over the hump of approaching a hard money lender. Thanks Lili!
This was the most informative video of hard money lending I have found to date. Your presentation and breakdown were excellent. I appreciate you!
The breakdown of the associated fees is so helpful! I spoke with a few HMLs on my area so I will try to run the numbers on a potential (BRRRR) deal I found. I’m all about equity and buy and holds! Thank you!
I couldn’t keep my eyes off Jacks hair! 😂 it moves!
Awesome video. Straight to the point, great communication skills, and very knowlegeable guest.
Excellent breakdown of the different lenders and process.
I’m ready now! Thanks a million Lili!💎💎💎
This is a good video. They lender will never lend if it wasnt a good deal. So thats how you know. You really have to know what your doing with hard money!
We are in the middle of our hard money lender process so far been interesting and we are learning a lot in the process. Hope to close on the house in 2 weeks and get started on renovation in a hot area in our town. Your videos have helped a ton and look forward on testing your new calculator
Any update? 👀
@KimComplete had we got the house then the market started rising right before we finished renovations. We had a bad agent that talk my partner into a price way to high and we've been sitting on the house forever. Research your selling agents before signing any paperwork and be steadfast with your opening price . If we had we would've sold it already instead of dropping thousands on holding cost
Quick question. How long did the hml process take you? Because im trying to buy a deal but they need proof of funds to even show the house. So im scared that someone will beat me to it
@chiKno619 it was a process took about 2-3 weeks but once they had everything it was quick
@@GhostDog54 can I ask what did they ask?
THANK YOU FOR THIS BREAKDOWN!! I’ve been looking for Hard Money Lending 101 and you just delivered. I cannot wait to dive into your other content.🙏🏼
Listening to the lender made it easier to understand stand. I recently flipped a house that I got burned on. Still made money but the personal lender took 1/2 of the profit plus 8% interest of the money to do the project then is charging Me for the cost of his tax guy.
I know I should have made a lot more since I do all the rehab. I didn't think his practices were even legal but I signed a contract with some clever yet shady additions he added.
I'm trying not to get ripped off again on the next project.
Thank you
Hard money is great but you better account for renovation delays. I did a conventional loan and a HELOC for my down payment- but the weather is delaying replacing the roof which is delaying me renting 2 of the 3 units. I closed in October, so I’d be in trouble just because of the weather. Of course all this was missed on the inspection. Smh but I could consider hard money for my next deal now that I have more knowledge.
Thank you ! This is really informative. This video has been eye opener for me. I am glad I chose Hard Money Lending in Dallas County From First Nation Finance LLC. I really trust them.
I love your videos! I watch them daily. As a new wholesaler / investor (who is currently in school to get my real estate license), I find your videos so helpful!
Hi Lili,
My daughter, who is 23, wants to start REI. She suffers from anxiety and depression and is in the medical field, but looking to get out and be her own boss. We live in CA about an hour away from Steph Curry (go Warriors). We've just started watching your videos and noticed your Disney shirts. My daughter is a HUGE Disney fan. She would love to walk in your shadow and see how it's done. I think you guys would be great friends as well! Keep up the great work!
I love watching your content. You really do an amazing job breaking it down. I would really enjoy seeing how your commercial rental journey is going. Anyways… keep the content coming!
you are the greatest person who explained it amazingly. Thank you!
Glad it was helpful! Thanks!
You have the best content on youtube kickin bigger pockets ass. keep it up your seriously killing it and helping raise others up with you.
I have been watching a ton of videos with the hopes of getting a “Firm understanding” understanding of Hard money lending & the process. Thank you so much for going more in-depth on HML and explore the process in greater detail than any other video that I have seen! Thank you 🙏🏽 🤜🏽🤛🏾💕💕💕. This was fire 🔥🔥🔥🔥🔥🔥 KEEP UP TGE GREAT WORK!! 🔥🔥🔥 I’m sharing this with friends and family who want to break into RE Investing 🙏🏾
Thanks for breaking that down. I spoke to a hard money lender and they said they require the investor to put 10 percent of the purchase price down. I never thought of your explanation being the reason why.
Thank you Lili for constantly giving the value 🙌🏽🙌🏽 This was enlightening and got my gears turning hard this morning!!
I have watched SEVERAL videos on this same subject and FINALLY get it! The way you explain everything is sooooo clear especially for us beginners. Thank you!
Do you have videos on how to spot a good deal?
Great info to help calm the fears of us newbies 😁! I'm considering HELOC-ing my primary home to be my own private/hard money lendor.
I thought about that too. It's a big risk but you know what they say...high risk, high reward! 😳
I thought about it as well, but I did read where you should only do it if you know you can pay it RIGHT BACK
One thing that was not mentioned or asked was personal credit. Some of the hard money lenders want you to have a certain credit score along with a good deal.
I said every lender is different. Call and ask!
If it's a commercial loan which all fix and flip loans are, they will almost never do the traditional credit check because of how the loan is structured. The lender puts a first position lien on the property. That gives them all the protection they need in case the borrower tries to scam them or defaults on the loan payment. Plus if the loan has a rehab fund it is structured in disbursement payments to protect the lender as well.
My understanding is that it will help you to have an entity in first time flipping as a way to protect your personal assets from being sued. Buy insurance on each flip.
Absolutely need an llc. You have to have insurance anyway to do a hml.
More value in the first 5 minutes than some videos on HML that I spent 20+ mins watching 🔥
Skip the %40 to Uncle Sam. Take that money and roll into a 1031 like exchange and defer those taxes. Put it into the next property or cash out refinance and pay zero in taxes. Roll it into the next property and rent
Golden nuggets!!! Put some money down too. The principal is be smart with your debt management!
These videos really coming together for me. So I appreciate you
Thank you for all the work you put in for this!
Your awesome lili! I know I’m a newbie but I know I’m on the right track with wholesaling because my spirit guides name is “lili” too spelt exactly the same as yours, I have known this for years to me it’s another sign to follow this path
Your presentations are amazing you are an excellent TH-camr ( I noticed 😉)
Lili, I am in the final stages of my first flip, and I have a private money lender who tells me to establish a proposal.
Do I propose 6% interest, ??% of purchase, and ??% of rehab?
I don’t want to seem too greedy, or set myself up for failure.
before even considering a hard money loan. You better make sure you have a reliable construction crew who is detailed about estimates. most hardmoney lenders will give you draws as renovation progresses and will have someone come out to check the completion under what was outlined for that draw.
You put out such valuable content. Thank you!
You’re so good at this, thank you!
200000-50000-50000=100000-6300-1500=92,200. Math ain’t matching. 😂 I do appreciate all the info though very informative!
You are amazing! I've been a part of WREIN for the last week. It is super inspirational and a great overview of investing strategies, but it is a bit vague on some concepts. You have given me a clearer insight to hard money! You too are super inspirational! Thank You!
The math in the end was a bit messed up. But still essentially understandable
Hi Lili,
I have to say, I was incredibly frustrated when I stumbled upon your TH-cam and Instagram content. I had a plan to create some valuable content, but you ruined my plans.
It’s not what you think.
I was looking for examples of people who downplay the benefits of hard money and label everyone in the industry as predators.
Instead, I stumbled across your video. You have a great delivery and quality content.
I have some cred when it comes to giving shout-outs - I’ve been in the hard money industry for over 20 years, my clients have funded thousands of loans, and I’ve serviced over 100,000 hard money loans.
I have done little to no marketing since I started; if you don't mind, I'll steal a few pointers from you.
Cheers, Drew
Well in this case, I’m glad to disappoint!
Thanks for stopping by the channel and best of luck in your journey as well :)
No money for down payment. I guess wholesaling is my option for now. Thanks for the info.
Lili young superstar, I’ve got to say “thank you” for all your help you’ve given me thru your videos. I never comment on videos, but U are an exception to my rule. Keep’em coming please. 😊
You make great content but THIS ONE!!!!!…….. Perfect! Thank you!
Question for beginner* - Once you find a property how do you figure out the full renovation cost.
This channel is gold. Thanks Lili for sharing the knowledge
Glad you think so! Thanks for watching
Illinois hard money lenders???! Shout em out
This video was amazing!! Thank you sooo much!
I love the video
You taught me alot
But a heads up to put the property on the mls without a realtor just use a flat fee service to do so
Just give a realtor 1-3% to bring the buyer thats all
Save alot more profit
Very informative and pertinent 💯 Purple and blue lighting is really cool.
GOD bless and thank you for sharing 👍🏾
Hey Lili. Awesome video. Great info 👍
Question? Did you forget to subtract the $6300 interest/points?
I've been looking for a video that goes over how HM works in a simplified way. You did great at explaining everything with visuals and numbers. The only question i have that I may have missed is- how are the HMLs paid back? In the example you used a $90k loan. How is that $90k paid back to the HML?
HML’s are paid back when you sell the property. They take payment for the amount they loaned to you and the rest after you’ve paid the listing agent their commission will be your profit.
You mentioned that $6,300 is what it will cost to pay back the Hard Money Lender.
Does that mean you would to pay $6,300 for 3 months or the $6,300 is that flat dollar amount you will give back to the lender?
Great video. All the info I needed in one place explained by someone who knows how to communicate.
Glad it was helpful! Stay tuned for more!
@@Liliinvests I would love a video on the columns on your spreadsheet when putting together a list of potential properties. What matters what doesn't. Someone sent me their working file and it seemed like overkill. Everything from the projections on rent, costs, cap rates, days on market down to things I didn't feel were even relevant.
When does some one cross the line from diligence to paranoia and inaction?
Always good stuff here! Love the content.
I started flipping houses in California in 2000 and I used hard money lenders at 12% interest and then they didn't ask you to put money in they put the points in you supposed to pay and that's how they got paid extra points and fees like she said and now they want you to have skin in the game, meaning you borrow $200,000 they want you to come in with about $30,000 back then they would cover everything,
How can we find a private or hard money lender that will fund a flip with extensive rehab cost. The lender I am working with wants me to do nonextreme rehabs less than the purchase price but f the home and wants me to pay out of pocket? By the way, you are the best on TH-cam so far. ❤🎉
This video is one of a kind. You are spot on
This video is so informative a clear and to the point I love it thank you
You are an amazing human !! Thank you for the information 🙌🏼
I can’t wait till this drop!!!! Definitely going to hit!!
How did you learn to edit your video the way you do?
BTW kudos to you. Love watching all your videos. Stay being awesome 👌 👏 👍😍
Looking forward to seeing this one!
Awesome video, great and informative. Keep up the great work!!!🤙🙏🔥🔥
This was great. I really benefited off this video. Thanks Lili.
Great content very informative 💵💲🤑Thank you so much Lili always bringing top of the line content on your channel!! Gracias 🙏
You are so welcome!
I don't know why I'm watching this,but I know it's good.300!
Super valuable information and helped settle my fears of hard money
Glad it was helpful!
Just subscribed again, great content,keep it up ,I can listen to you forever.
Much appreciated!
Thx for breaking this down in an straightforward manner...🤗
Lili, will a hard money lender allow you to do a cash-out REFI instead of outright selling the property?? Thanks!
You can do what you want as long as you pay them back
Loved loved this video 😍 Such great content!
Thank you! Fantastic video! Keep soaring!
FYI - I think your calculation was wrong when you mentioned at $100000 subtract the HML fees or $6300 and the Holding Fees of $1500 should be around $92,200 and not $98,500. Time at 12:42
Amazing confidence building information 💯
Can someone get a hard money loan to buy a home ? Or house hack? As their first property and investment property? Or can someone just get the loan to buy a home and later down the line turn into an investment property?
Its a high interest loan to be paid back in a short time to take advantage of cash deals.
This channel is sooooo good! Thanks @Lili Thompson! 🤙
Great Info.Thee best one I have seen.
Wow, thanks!
This is soooo good!! Nice video!
Very informative video! Thanks for the great info Lili. 👍🏾👍🏾
Hi
Great video, the first person to make it all make sense imo! You mentioned you have a document that you use to present to the lenders after you find a deal, do you have it for purchase. I would like to use something as such myself. Thanks!
WAIT, did i miss something? Lili says $100k less $6300 interest less $1500 holding costs.....then she says we're at $98,500. Shouldn't we be at $92,200 less realtor fees and taxes? Did I miss something?
She made multiple mistakes, ROI is a percentage idk wtf shes talking about but people make mistakes
Hey Lili, I love all your presentations! Elaborate and educational! Have you established LLC? If yes When is a good time to establish LLC?
Start your LLC now. Some hard money lenders only lend to LLCs and you want to be ready. I put a property under contract in my name, then had to start my LLC and explain to the seller that I needed to resubmit the contact in the name of my LLC. Fortunately I was buying from investors, so they understood. But a layperson may have been suspicious.
Also, if you want a business bank loan for any reason (not a mortgage), they require your LLC to be 2 years old.
One topic i never see covered is the closing costs and how they are paid.
Sometimes they’re covered in the loan and sometimes you pay out of pocket; just depends
interest and holding cost $7,800, 100,000-7,800=92,200, how did you get 98,500? or am i doing it wrong?
Proud of u baby
Amazingly informative video thank you !
Win, win situation.👍😉
You need 10k down, but dont you need another 20k or so down for repair capital before the first draw and inbetween draws?
Depends on the lender. Some give the first rehab draw at closing
@@Liliinvests really, i did not know that, "thanks" any suggestions would be helpful,
I have a question that may sound silly. But instead of your profit in this example being 51K, wouldn’t it only be 41K since you spent $10,000 as a down payment? I’m analyzing a deal right now and I wanna make around 50 K profit. But if I subtract the hefty down payment the profit is only 30 K.