We discuss some of the great opportunities that real estate investors and business owners have right now to borrow money. Even with COVID-19, there are still options such as the Real Estate Line of Credit. Dan explains how it works and some of the requirements using the equity already in your cash flowing properties to be able to borrow more money against the assets you already own. Dan talks about the line of credit, how he pulls it off and where is it derived from and it is derived from the assets where the lender will give 90% of the loan to the real estate investor whether you’re fixing or purchasing, then the investor will come up with the 10%. If the investor doesn’t have the 10%, then they have private funds to raise the funds and they could use that for the deal as well.
To listen to Dan Mansour’s Alchemist Nation Real Estate Podcast: #53 Dan Mansour Discusses Money Lending As A Business
I further ask him if that is for new deals or for refinancing and what could be the interest on something like that. He says that the interest rate is going to be competitive on levered right now, so it could be 7 to 12%. There are a couple of different factors for example if you have good credit scores, you’ll have a lower rate, and its revolving line where you could use it in multiple deals at the same time.
We also talk about products he was put out there and how many closed deals using them, his closing rate, and how is he getting his deals to close while other guys can’t. He says that getting his investors deals and loans closed with all other products and that product has been available though he decided to put it in his book of services. He further states that it has been around not a new program, so it’s just basically another loan part most people don’t know about.
I also wanted to know from Dan is what is the finding that a lot of his investors have shifted for requirements. He says that pretty much full doc and whoever is still in the game, they have gone to full doc because they want to see more down payment and higher credit scores. He narrates how that part has been busy for him, just marketing and getting investors, as well as business owners, the profile that needs to get funding.
I also ask if Dan has tools to help business owners improve them and those categories and help them move forward. He says one of the key components is the credit repair which he says that he has one of the best credit repair programs out there which are done within two months at most. He says that one of the key things is able to do is remove the late without removing the whole trade line. If the history of the tradeline is 3 years or more, you are actually hurting your scores and ability to get lending by removing the whole tradeline than just late off the tradeline.
Dan offers 3 pieces of advice to younger entrepreneurs getting into real estate if he is to go back to 20-year-old Dan.
1) – Don’t do analysis paralysis, learn, and do it as you’re doing it.
2) – Understand that money is there.
3) – Build quality relationships with people in the trade whether it is lenders, Attorneys, contractors, and the like.
To listen to more Alchemist Nation podcasts, visit
https://anchor.fm/gualter-amarelo
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To get in touch with Dan, visit https://www.atlasgroupconsulting.com/ or Text/Call 800-840-0603
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To listen to Dan Mansour’s Alchemist Nation Real Estate Podcast on Anchor: #53 Dan Mansour Discusses Money Lending As A Business
