Most investors will tell you hard money is "too expensive" and avoid using it altogether. I don't see it that way. They view hard money as a 1-dimensional service, just borrowing expensive money! There is so much more to hard money lenders than that...They usually give 60-65% LTV, which gives you opportunities to create a win-win transaction for all parties if you structure the deal right. Structure the Deal- 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. Build a Relationship- Build a relationship with a hard money lender. They get access to deals that few of us know about. You see, they are the ones that get called when someone is in distress. However, many times they cannot fund them. Guess who they might be willing to call about the deal - YOU - if you have built a relationship. Hard Money Lender- A hard money lender is a loan broker who specializes in placing private funds into loans. Typically, a hard money lender is an individual with a small staff that performs this service. There are larger companies that operate as hard money lenders as well. The hard money lender has a database of private lenders, individuals with money to lend (or invest). Most of these individuals are retired people who use their IRAs or lines of credit to invest. " If we are in want, we can just ask." Dream Big! Kindest Regards, Levi Preston Asset Acquisition International 845 249 5408 levitravel@nycmail.com www.linkedin.com/in/levipreston www.realestateinvestor.com/levipreston http://levipreston.myplaxo.com

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