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I want to ask you about asset base lending and hard money loans. So, I know there's two different things. I had never heard of asset base lending so far. Nando told us about it.

But hard money loans I heard about, but a lot of people are not really familiar with hard money loans. They think the only way to get money to buy real estate is just to go to chase bank and you know, but hard money is completely different. So can y'all talk about like hard money? Like what is that and yeah, how does that work out?

Before you do that, I want to say like the one thing I would say everybody that's watching is to ask questions. Don't be ashamed to ask questions. I asked Caesar all types of questions today. My attorney sent me something about a car accident.

I sent it to Caesar. I was like, Caesar, what is that? And he's hitting me back with like envy. That's not for you. It's the wrong name. I bet you sent it by the road. But I hit the season about everything. So when I was purchasing my house, I purchased a house in a new jersey and the house is person that bought it for me paid 12.88 million for it. Right. I bought it for five five.

One thing about Caesar is he always says, you never want to put that much money down. I don't care what you're doing. You want to put as little as possible because you use that money for other things. But you know during COVID with if you trying to buy a house that's jumbo loans, what they call it over a million dollars, they want you to put 25 to 30% down.

And Caesar was like, you're not putting that down right now. Season me and Caesar argue like we're married couple. That's my brother like for real like bro, like argue hang up on each other.

And he was like, no, you have enough assets where you ain't got to put that much down. You use your assets. And we he was able to get me alone. We were able to figure out why only have to put 10% down.

Now you think about it, $5.5 million a property only having to put $550,000. But I'm using my assets as collateral to get that loan. That's unheard of.

You know what I mean, but we're able to do it because I have those assets and I have those properties. So those are some of the things that you have to ask because I would have never known I was going to put 25 30% down him. What I did, I used that that other 10% and bought another property and bought some more properties and bought some stock at the time and use that money to make money.

I also bought a car, but.

Yeah, so a good tool to use is probably financing right a lot of times when I first started for example, I have horrible my credit was shot right I had a 520 credit score.

But I was able to get some capital together and I got a hard money loan. A hard money loan is not really based on you as an individual is pretty much based on the asset on the property.

So if a property has equity, they'll do that deal meaning if you look at a property and it's worth 300,000 and you want to buy for 300,000 harmony, then it's not going to do that deal.

But if the property is worth 210 and you got it for 300,000, then a harmony lender would do that deal. A harmony lender is not based on conventional guidelines is private money.

It's more of a relationship based business. So it works a little different than you go into chase or any other bank and trying to get alone.

I like hard money because I could close quickly is the same thing ask cash right now, harmony when I first started it was different right which sometimes it pisses me off because back then I had to put 20 25% down right across the board on a harmony loan.

Then when I finally build a relationship with my lender and I pay them off a million, millions of dollars and loans, they said that you know what you only got to put 10% down I was like yes right.

And then every single lender started giving out the same program 10% down like you bastards didn't work for it.

That's how you changed again.

So you know that it was pretty crazy back then but now pretty much you know you could get 10% down across the board when it's usually you put you get 90% loans of value off the purchase right and 100% of the rehab or the construction dollars is based on draws right meaning you always have to have a couple dollars in your pocket right so just to break it down very simple.

So you want to buy a property is $200,000 right you're going to put 10% down plus usually a hard money then the charges two points right so right there let's say you're in 25k your down payment and your points and whatever your attorney's going to charge you so that's 25,000.

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