How $10k Cost Me $70,000
At Hard Money Bankers we provide exceptional access to capital to fund your real estate deals. But there are times when additional resources are necessary. As part of our monthly webinar series, this month weâll share a very powerful supplemental funding source that will definitely propel the success of your Real Estate business.
On one of my first projects I planned to flip a property on a nice block in South Philadelphia. The resale value of the house was nearly $200,000. I contracted the property for $50,000, and Iâd budgeted $47,000 for repairs. It really was a great deal.
I took my deal to one of the local hard money lenders. They were all too happy to do the deal. It was a home run. But their approval came with two strings attached:
- I needed to pay all closing costs out of pocket at closing.
- All construction funds were escrowed until the work was complete.
Looking back, I now know that these are standard provisions of most hard money loans. But at the time I had very little interaction with hard money lenders. Iâd never even heard of HMB (Remember this was one of my first deals).
These two provisions were a problem for me. They looked a whole lot more like chains attached than strings. I was recovering from a business failure with debt piled to my eyeballs. The combined income for my wife and I was barely enough to cover our bills. I barely had a pot to . . . well you get the idea.
The point is, I found a deal that would clear (even with some major new-by screw-ups) over $70,000. A mere $10,000 separated me from getting some serious financial breathing room.
I never did find that $10,000 to do the deal. Instead I wholesaled the property and made some quick money to keep going. But I often wonder how much my success could have accelerated if Iâd had access to some short term capital.
Thatâs why when the I came across Jeremy Zigmanâs business credit program, I thought it deserved a second look. The HMB Team spent some time researching the program and checking out the system. It turns out that an HMB associate (who also runs a local REI) is currently working with Jeremy. The name of the program is âHow to Get $200k – $500k of Business Credit.â
Jeremy has discovered a way to obtain valuable business credit lines. When he was getting started, he ran into some of the same hurtles I encountered. Namely, lack of accessible capital. Jeremy found a back door to the banking system and was able to set up credit lines that helped his Real Estate business explode.
Weâll be holding free webinars where Jeremy will explain how he does what he does. More importantly, heâll show you how you can use the same steps to get your own access to the money and credit you need, when you need it.
The webinar is scheduled for next Thursday, June 14. You can click here to register for the event.
I had the opportunity to talk with Jeremy the other day. Iâm excited to see the inside workings of his program. Whether youâre a new investor or have countless deals under your belt, donât let a temporary cash flow crunch stand in the way of your success.
Meet me at the webinar next Thursday.