Hard money....how much liquid cash do they require.?

[James Mudd]

...how much cash on hand are hard money lenders requiring, to do business with you..?

[Jay Hinrichs]

@Onan Dumas

Oh back in the day when we made loans based on equity and even at that taking money out at closings.. investors would need NO money and get money at closing.

Well that did NOT work so well for us HML's so ergo you need to have some real cash for most lenders to play.

If your willing to do JV type deals you can get 100% if your qualified and experienced. For me I do everything from 80% of purchase and you do rehab. To I fund the whole marry ann.. just depends on where it is how much and how experienced the operator is and track record..

Its tough for someone with no track record no cash to get going.. contrary to what you will hear in the Guru seminars.. Not saying you can't pull it off but not the norm.

I flash back to one of my bizz partners in Honolulu they build High rises. They worked for Charlie Panko ( national builder of highrises) and wanted to go out on their own.. Well they had no bonding ability.. Well as province would have it they got a contract to build a big condo highrise for a Japanese firm.. the Japanese firm was paying cash 50 mil.. And did not know or realize what a bond was.. Based on that they were the winning bid built the building made 7 million and the rest is history they then had track record so they could get bonded ..

So in small ways if someone can get with just one vendor investor that you can get a deal done it can lead to experience and doing other deals.

This company US Pacific builders we did a few developments in ORegon and some timber deals. they ended up making a killing building resorts in Vietnam ...