The advantages and tricks of large Hard money loans

[Harry Wilson]

Hi there everyone, I have started working with some businessmen that are in several industries, Real estate being one of the areas they are big in. I had the opportunity in the UK to take out a 80k mortgage in England when I was 18 with 10k down payment but I put it off as I didn't like being tied to a loan for 30 years.

Now I am 22 and I live in NYC and I want to work my way up to large apartment buildings, I live in a huge complex where there are about 10 buildings, each containing roughly 80 units, everyday I do the math in my head and it motivates me how much money there is to be made from the monthly rents of 800apts which are around $1700 a month each that's  1,360,000 a month. I cant even imagine what that would be like, (if it was one person that owns).

Now the people I am working with take out lines of credit from a network of extremely wealthy people they know, buy huge apartment complexes and somehow make money and pay back the hard money loan. I have read 2 or 3 real estate books but it all confuses me at the moment, but I want to learn to do what they do and get an idea of what they are talking about.

for example someone will recommend deals to them that look good, they then turn around and contact the wealthy network to see if anyone is interested, if good they then the get a hard money loan to buy the complex for 12k...... but now how does this work, How do they make the money back to pay the hard money lenders within the time frame, I would understand a loan as they could just pay it off with the rental income, but how do you do this with hard money?

 can you get a hard money loan and then get a loan against the complex without telling them that the mortgage is to pay the hard money off?

Any replies are appreciated, I understand that this might sound dumb but I had to ask someone and this seems like the perfect place, Also as a side note if anyone has any experiences with complexes and hard money please share your story with us.