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Mike Hapke: Real estate is the best way to increase net worth

Mike Hapke: Real estate is the best way to increase net worth

Date Posted: November 9, 2016

By: Advanced Capital Corp.

Key Points

  • [0:29] How did you get into the business?
  • [1:49] What area of real estate do you specialize in as a company?
  • [2:47] There is a common misconception of the products and services being niche’d into a particular market.
  • [3:00] Tell us about some examples of those who would benefit from private lending.
  • [4:00] Paying premiums allowed further flexibility.
  • [4:31] Private lending can create opportunities and provide flexibility.
  • [5:24] What does a private borrower look like?
  • [6:14] Clients often need more flexibility.
  • [6:24] Expand on one-to-one lending, syndicated mortgages, and mortgage investment corps.
  • [6:48] We provide the best quality of deals, especially in light of the new mortgage rule changes.
  • [7:21] I am prepared for risks in one-to-one lending.
  • [7:44] Remember, there is a rate-to-risk.
  • [8:11] What is the typical rate of return?
  • [8:59] What are some examples of situations which would require your services?
  • [9:51] We ensure the deals are beneficial for all parties.
  • [11:03] In one-to-one, clients typically look at a 10-15% rate on a second mortgage.
  • [11:42] The market is supply-and-demand.
  • [12:05] What are the benefits of these short-term deals?
  • [13:02] Be aware of the new refinancing restrictions. Talk with your lender or broker.
  • [13:54] Be sure to have an exit strategy.
  • [14:15] What effect have you seen on the market of the new mortgage changes?
  • [16:59] These are the cheapest rates in history.
  • [17:22] Real estate is the number one factor of increased net worth.
  • [18:40] How can people best take advantage of using a private lender?
  • [19:55] Some past restrictions have been relieved in recent years, opening up opportunities.
  • [20:41] Work with a lender to invest money in a way it can grow.
  • [22:00] What is the best business advice you’ve ever received?
  • [22:42] Investing in real estate gives you credibility and experience within the market.
  • [22:28] Understand your market.