Welcome to Real Estate Investing Today brought to you by hard money loans arizona. My name is Ryan Wright and thanks for joining me. Today I want to talk to you about the principle of leverage and hard money.
Leverage and hard money, basically the use of hard money is all about leverage. People that want to use hard money want to leverage their time,
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Basically when it comes down to it, if you are talking about a wrench or you are talking about a lever sorts or whatever the case may be, if there is enough leverage on it it is really easy to turn that very very tight screw if you have got a handle that is long enough so it does not have to take a whole lot of effort on you part utilizing the force of leverage,
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We have a client I want to talk to you about who has enough money that he can pay cash or properties.But the problem is that they only have cash pay for one property.So they have a decision to make. Do I want to fix and flip one or two properties a year or do I want to split up those resources, use a hard money lender and be able to do more properties at a given time. And they frankly are using their money as money for rehabs, using money for down payments or any differences what hard money company is able to lend and what they are wanting or what their purchase price is so utilizing the resources they have combine with resources of other people and they are able to obtain great leverage, which allows them to fix and flip more properties about three times what they are able to do and they are able to gain an extreme advantage over any body else being able to do that many properties and the income that is generated is much more substantial because of their use of leverage.
So many sophisticated real estate investors talk about OPM, other peoples money basically how to use other peoples money to make success and that is one of the things that I like about arizona hard money loans. They offer 100 financing for buying the property at a level that they can lend. Now lots of times it turns out that they are only able to lend for example 70,000 and may you are buying the property for 80,000,
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www.uggbootssaleukcheap.net,000 in the cost of my rehab and then I can move forward and successful transaction utilizing some body elses money and that enables you to do another property as well. So with very limited or in sometimes no resources available you are able to utilize leverage and the principle of other peoples money so that you can obtain financing.
We have clients that do this on a frequent basis. They are very successful.Even clients have enough money to pay cash for properties they will utilize our funds because mainly they want their funds for a cash auction as have cash in 24 hours, which obviously Do Hard Money cannot facilitate cash flows in 24 hours and so it is good to have cash available and that is why they utilize Hard Money Loans Arizonas money when they are doing things so they can have open resources, they can have other possibilities, they can make them successful.
