Mark Gagner

It really is based on how successful the project was.

So if it was a bigger project that had a larger net profit, then generally I'm writing him a bigger check.

But quite frankly, it's subjective.

I don't have a specific formula.

It's just a function of outsourcing it to them.

I don't have the bandwidth to do it myself.

I mean, I suppose I could hire somebody to do that.

Yeah, the financing is a combination of hard money loans, private money loans, and then some of my own cash.

A hard money loan is a professional organization that is lending money to non-owner occupied properties at relatively high interest rates and points.

If you were to compare that to somebody just going out and buying a house with a 30 year mortgage.

Well, in California, it's become really competitive.

So the rates have come way down.

But in general, I would say the interest rates are about in the range of eight to 10% here.

In the hard money, in hard money.

Yeah, that's what I'm saying for hard money, eight to 10% and anywhere from, you know, two to three points.

You're correct, yes.

Yeah.

So I'm actually to, to, to acquire the property, I'm not putting any cash into it, but I'm putting some of the cash into the rehab budget as well as the as well as the carrying costs.

So I'm probably got maybe 10 to 15% of my own money into the total deal.

Private money.