My hard money cash flow rental empire business plan?
My awesome hard money rental property empire.
Ok, first things first, I have nearly no savings, no verifiable income, but lots of heart :mrgreen:
My idea is that I would find a property, oh let's say it is asking for $40,000 and to move a tenant in requires $15,000. ARV would fetch a fantastic $85,0000.
So I go to a hard money lender and I need uh, [trying to remember this deal off top of my head] $40,000, plus $15,000 = $55,000 [yes i have to do math as i go] the LTV would be 65% [right?]
I rehab it up, trying to do some of the repairs myself [that's like a really big joke, at this point] but come in right at $15,000 as projected. I move a tenant in. Then I waddle over to the real bank and I somehow show them the tenant, rental agreement and they pay off the hard money loan, and pray to god I somehow walk out with some money as well.
Rinse / repeat?
Someone said, I'd fail on 2 instances:
1. hard money lender would never lend me [ a noobie ] anything, except a phone to call someone that cares
2. the bank wouldn't care if donald trump were renting from me, because I have no proof I exist... financially speaker.
They did suggest however, that I might snatch a Vegas investor and parade him in front of the hard money lender and promise them, he's the one doing everything. But, that still doesn't cover the bank.