Hard Money Loan Production:
2020: $250K
2021: $1 MM
2022: $2.6 MM
2023: $6 MM
Chasing $12 MM in loan production in 2024
Could be our first 7-figure Revenue Year
Hard Money Lending
Overhead:
- Google Suite
- Real Estate Meetups
- Lunches
Product:
Take your cash from your 401K or IRA and put it into a self-directed account.
Lend it out to fix and flip rehabbers at 3 points and 13% for 6 months.
Earn 19% on your money after-tax.
Hard money lending.
As long as you have enough money for the first loan and a list of note investors, you can originate and sell notes until your pockets are green.
I like balconies for my tenants. They seem to like it because they are able to throw all of their items over th balcony which saves them time when vacating my property.
Win. Win.
Atomic Habits
Combine these principles & systems with what you value and you'll make meaningful traction in that area.
Because of it, I:
- Learned to play guitar
- Found my partner
- Went from $100,000 per year in sales (at my job) to $100,000 per month in sales.
Covid
👇
Increased Demand x Printing LOTs of Money x Low Interest Rates x Wartime
👇
Increased Raw Material Costs
👇
Increased Supply Chain Constraints ($5K - $30K)
👇
Increased Container Costs
👇
Inflation
There are other lines to be drawn, but this is one.
After 7 years of relationships (3 different partners) I concluded this:
How To Find the Right Partner (Mental Model):
1. Physical Attraction
2. Shared Values
3. Similar Long-Term Goals
4. Lifestyle Compatibility
Here’s how you do it.
Invest $2.5 million through a regional bank.
Have them give you a loan against your portfolio at -2% WSJ Prime which would equal 6.25%.
Get 50% LTV for a loan amount of $1.25 million.
Write hard money loans at 3 points and 12% interest for 12 months.