The question that Zack Childress poses on every podcast is how do real estate investors build real wealth and freedom without access to millions of dollars in capital? His mission is to help you find the answer.
Zack breaks down this episode into the 2 types of lenders you need to talk to: traditional (banks) and asset-based (hard money) lenders.
When you call a local bank, be prepared to talk the bank’s language. Just ask for what you need, then clarify what you hear. Every bank has different loan programs, so call several.
Once you get a positive answer about financing, make an appointment to meet the banker. You’ll both benefit by establishing rapport early.
When you contact asset-based lenders, be quick and concise. Don’t ask them if they lend on certain types of deals. That’s what they do all day long.
Start by telling them the type of properties/deals you are looking to fund and that you want to establish that funding is available before you find a deal. Ask if it’s possible to set up an account now.
Hard money comes with a pretty high interest rate, definitely more than banks. So what you do is buy and repair with the hard money, then go to the local bank to refinance the ongoing mortgage.
Buy, renovate, rent, refinance, repeat… the ‘brrrr’ method. It’s what experienced investors do.
Watch or listen to this episode more than once. And share it with other investors.
And please, pick up the phone and act on it because “courage is created by facing your fears on a daily basis.” Practice calling lenders and overcome that fear.
Watch and learn…
Listen and enjoy:
- With banks, ask about loan programs.
- Banks use term loan to value (not ARV).
- Hard money lenders use loan to ARV
- Ask about interest, extensions, fees
Mentioned in this episode:
- Reach Zack by phone: 707.247.4248
- Follow Zack on Facebook: Zack Childress on Facebook
- Zack’s free book: My First Deal Playbook