Core Principles: Deterministic by Default Agentic by Exception

Systems stands for: - S - Save - Y - Your - S - Self - T - Time - E - Energy - M - Money - S - Stress You should have SYSTEMS for everything.

How to do hard money loans safely & for profit Avoiding disaster 101👇 I’ve done 100s of HMLs & this is my tasty approach 1. Never lend on something you don’t wanna own 2. See rule #1 3. 65% ARV (after repair value) less repairs is the formula, you come up with ARV, no one else! After repairs you’re usually buying at $.50 on the dollar 4. Get a deposit to get you to 65% add points if you wish 5. Don’t lend, buy and give the borrower an option to buy it back for your profit Why? Foreclosure is a cost in time and money. If you are on title already you don’t have to foreclose 6. I like a single payment balloon note at the end. Accounting is an expense if you take monthly payments that eats into your time & profit. Balloon it instead. 7. Having the interest rate go up every month ensures a motivated borrower, that you typically don’t have to frequently check on progress (this is the best part), and a high velocity of money for you (the 2nd best part) 8. Borrowers deposit is paid 1st, next your money to buy, then draws for improvements. Draws should be broken up into smaller pieces for safety. The next draw doesn’t go out until you’ve got video confirmation that the work has been done (I mean, who’s got time to go back to the property several times😂) 9. If it goes sideways you’re already in title. If you can underwrite at 65% then the deal just changed from a loan to a pretty darn good purchase If this was helpful to you please book market & share it If this convinced you that you want to invest in HMLs (because mine are safer than other peoples) but don’t want to do the heavy lifting my DM‘s are always open