Wednesday, February 24, 2010

$900k 2nd loan and $1.5 million 1st loan

Understanding how to structure deals is VERY important. Here is one thing to consider.
If you are getting more than one hard money loan, the ratio between the 1st and 2nd loans is very important to hard money lenders.
They generally like to see no more than a 3:1 ratio between the 1st and 2nd loans.
This means that the 1st loan MUST be 3 times or less than the 2nd loan.
This ratio varies among lenders, and can sometimes be 2:1.
To structure good loans, keep in very close to 1:1 or 2:1.
However, don't ask the lenders "what are your standard ratios"?
They will have NO IDEA what you are saying. You simply use this secret strategy in structuring the loans for them.

Hint: Remember the story I mentioned in our last email about the deal I made. Well I used 2 lenders and structured the loans $900k 2nd loan and $1.5 million 1st loan.
They did the loan. If I had not known that, I would have lost the deal!

Once again, the POWER of KNOWLEDGE!

This is further discussed in our eBook "Secrets To Working with Hard Money Lenders to Build Your Real Estate Empire".

That's it for now, speak to you in 7 days...

Good Investing,

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