Raul: What up, guys. Raul here. Capital Rise Investments. Coming to you live with a little bit of hints and tips and knowledge and whatever you want to make of this. Okay. I’m going to talk today about disadvantages of using hard money of private lenders. This is kind of contrary. I did a video of become hard money lender. When you’re the lender, if you have your paperwork right and you’re analyzing right, you’re good. Right? It’s more the buyer that has to be more on their toes.
Number one, buyers always pay the lenders, man. Always pay your lenders. You don’t want anything to be foreclosed on you. You don’t want people calling you coming after you and your cars and your little cat, man. Save the cat, man. The cat, they depend on you, man. You don’t want the lender come seeing your cat to make some money. Anyway.
What I’m trying to get at here is some disadvantages are don’t hold the property too long. I know sometimes it’s hard, sometimes you try to get rid of it in three months and it takes six and seven. I get it, but really focus on the sale. All right? If you have the 10, 11, 12% loan, that’s a big payment every month. Right? I like to put a timeline. All right, if I don’t sell it in five months, I might get a month to month renter in there or get creative with the property. Okay.
The moral of the story is really focus on your sale, on your exit strategy. Refinance the house through a bank if you have good credit. You can do those things. Right? That’s really important. Okay.
Another thing. Make sure that your payments are on automatic deposit, or you have an assistant, or you have a calendar thing. Make the payments, guys. Please. That’s so important, man. You want money. Right? You want money for your houses? You want higher [LTDs 00:02:02]. You want it to be at 70, 80, 90, 100% eventually. Pay the guys on time when they ask you and deliver more. Maybe in a month, even if they don’t ask you, send them pictures. Hey, cool, look at the rehab man. I’m almost done. Hey, I just got a contract full price. I’m so excited. I’ll pay you soon. Give them little updates, man. Little updates, man. They’re going to give you more money.
Some of the disadvantages are you have a high monthly payment, you got to make sure you pay and it comes out of your account when you’re not making any money. That’s a little disadvantage, and if you hold the property too long it can eat up a lot of your profits so focus a lot on the sale. Those are the main things. But some exit strategies are month to month rent, refinance the house, Airbnb. I don’t know. Get a little creative. But, yeah guys, I hope you like the video and click on the calendar link if you want to talk to me for whatever reason. Subscribe somewhere. It’s important for YouTube algorithms or whatever Google tells you to do. I’ll see you guys soon. Thank you. Namaste.