{"id":1387,"date":"2007-07-06T12:07:59","date_gmt":"2007-07-06T19:07:59","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=1387"},"modified":"2007-07-05T07:52:47","modified_gmt":"2007-07-05T14:52:47","slug":"hard-money-buy-at-eight-sell-at-twelve-repeat","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1387\/hard-money-buy-at-eight-sell-at-twelve-repeat\/","title":{"rendered":"HARD MONEY: Buy at Eight. Sell at Twelve. Repeat."},"content":{"rendered":"

Imagine a business with a 50% markup. No employees, no warehouses, some liability, and you can do it from the comfort of your own home. I’m not trying to introduce you to the hottest multi-level marketing craze nor am I trying to convince you to open a franchise.<\/p>\n

I want to talk to you about becoming a buyer and seller of money. Mortgage money. I’m talking about the private mortgage marketplace.
\nLet me start off by showing you how to get the money you need. If you own a home with a bunch of equity (and many of you do), you have a lousy investment<\/strong>. Robert Ashby, President of Solid Rock Mortgage in Florida, tells us that home equity earns you nothing and may actually shrink<\/a> over the next 6 months to 6 years (depending when your local market turns around). If your boss left a bunch of inventory in the warehouse and it was in danger of losing value, he’d be looking for another job in a few years. Turn that “dead” inventory into money producing inventory by borrowing against your home equity. You can do that for about 8%<\/a> in today’s marketplace.<\/p>\n

Disclaimer:<\/strong> The private mortgage as an investment, aka “trust deed” or asset-based lending<\/em> (READ: hard money) is a very specialized market. I talked about this marketplace in<\/em> Life As A Legal Loan Shark<\/a>. I try to refer would be trust deed investors to the<\/em> basics of trust deed investing<\/a> and ultimately send them to the<\/em> California Department of Real Estate explanation<\/a>.<\/p>\n

Now that we have the appropriate disclaimer out of the way, let’s talk about how you make money. Let’s secure you a HELOC for $225,000. We’re going to leave $25,000 in what Jeff Brown refers to as the Sominex account<\/a>. Subprime borrowers are not always the best at paying the loans back in a timely manner so we want to have access to 10-12 months worth of payments in reserves. That way you can weather a storm.<\/p>\n

Now, we’re going to have you Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Imagine a business with a 50% markup. No employees, no warehouses, some liability, and you can do it from the comfort of your own home. I’m not trying to introduce you to the hottest multi-level marketing craze nor am I trying to convince you to open a franchise. I want to talk to you about […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-1387","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1297,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1297\/ask-the-audience-what-does-the-cmps-designation-mean-to-you\/","url_meta":{"origin":1387,"position":0},"title":"Ask the Audience: What does the CMPS designation mean to you?","author":"Brian Brady","date":"April 12, 2007","format":false,"excerpt":"I've been wondering about this Certified Mortgage Planning Specialist ( CMPS ) designation some of us loan hacks are displaying now. I remember hearing Barry Habib discuss \"strategic equity management\" back in 2002. I thought , \"It's about time! \" when he discussed that strategy. I had a securities brokerage\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":15383,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/15383\/lower-va-funding-fees-as-of-november-18-2011-attract-year-end-veteran-buyers\/","url_meta":{"origin":1387,"position":1},"title":"Lower VA funding fees, as of November 18, 2011, attract year-end veteran buyers","author":"Brian Brady","date":"November 22, 2011","format":false,"excerpt":"N.B:\u00a0 On the day before I published this, HR 674 passed, reverting the funding fee amounts to the \"old\" levels.\u00a0 It was updated in VA Circular 26-11-19, published November 22, 2011.\u00a0 The \"new\" lower funding fee schedule was in effect for three days, from Nov 18-21.\u00a0 Sorry for the confusion.\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5161,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5161\/mortgage-market-week-in-review-13\/","url_meta":{"origin":1387,"position":2},"title":"Mortgage Market Week in Review","author":"Tom Vanderwell","date":"October 24, 2008","format":false,"excerpt":"Here we are on Friday again.\u00a0 That means that it\u2019s time to try to summarize what\u2019s going on in the mortgage and finance world.\u00a0\u00a0 I\u2019m going to talk about a couple of main things:\u00a0 the economic fundamentals, some earnings reports\u00a0and the \u201cmargin calls\u201d that are going on in the equity\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9331,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9331\/is-activerain-selling-loan-officers-an-exlusive-opportunity-or-just-selling-their-real-estate-agents-out\/","url_meta":{"origin":1387,"position":3},"title":"Is ActiveRain Selling Loan Officers An Exclusive Opportunity, Or Just Selling Their Real Estate Agents Out?","author":"Mark Madsen","date":"July 29, 2009","format":false,"excerpt":"I've received a few emails and calls from my loan officers this week about some new exclusive opportunity that Activerain.com is pitching to the mortgage industry. Apparently, Active Rain is cold calling mortgage professionals who have an AR blogging history and offering them an \"extremely rare opportunity\" to pay $299\u2026","rel":"","context":"In "Dirty Laundry"","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"active_rain_making_money_off_the_backs_of_loan_officers_by_using_agents_as_a_carrot","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2009\/07\/active_rain_making_money_off_the_backs_of_loan_officers_by_using_agents_as_a_carrot.png?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1407,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1407\/interview-with-robert-ashby-cmps\/","url_meta":{"origin":1387,"position":4},"title":"Interview With Robert Ashby, CMPS","author":"Brian Brady","date":"May 14, 2007","format":false,"excerpt":"I interviewed Robert Ashby, a Certified Mortgage Planning Specialist, in this 15 minute podcast. Robert's background is also in securities sales so he and I have much in common. Robert was the first CMPS in Florida and is President of Solid Rock Mortgage Corporation. He runs a site called Mortgage\u2026","rel":"","context":"In "Interview"","block_context":{"text":"Interview","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/interview\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":12916,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/12916\/master-seller-financing-to-beat-the-mortgage-market-freeze-of-2011\/","url_meta":{"origin":1387,"position":5},"title":"Master Seller-Financing To Beat The Mortgage Market Freeze of 2011","author":"Brian Brady","date":"August 17, 2010","format":false,"excerpt":"I'm not so sure I want to play hockey against Bryant Tutas.\u00a0 He thinks like Wayne Gretsky. I cautioned about the coming mortgage freeze and asked what agents might do to prepare for it.\u00a0 I'm a mortgage guy so I think in terms of institutional financing.\u00a0 I completely forgot about\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1387","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=1387"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1387\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=1387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=1387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=1387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}