Increase Your Bonding Capacity

I'm going to show you how to buy more properties faster, and I'm going to keep this one pretty brief for you. Let's get straight to the point:

YOU'RE BEING LIED TO.

Every guru, every podcast, every 'expert' tells you the same thing: 'You're one deal away.' 'You just need to find better deals.' 'You need deals with bigger margins.'

I'm here to tell you that focusing on "better deals" is the single worst way to scale your business.

It's a strong opinion, I know. But it's the truth. And the reason you might feel stuck, the reason you feel like you're on a hamster wheel, is because you're focused on the wrong metric.

The Secret Formula

In case we've never met, I'll give you the mercifully short, mandatory, self-aggrandizing introduction. My name is Ryan Hart.

I started working in construction management over fifteen years ago and specialize in real estate financing. I have degrees in both Architecture and Construction Planning from the University of Southern California (USC).

The majority of my clients are in businesses like yours, which I would define as active operators: real estate investors, contractors, and business owners who need access to cash to run their business.

And one thing I've learned is this: the business of real estate, when you strip away all the jargon, is really simple. It just has two steps:

1. You find a deal.
2. You fund a deal.

That's it. That's the entire system for growing. Everything else, like the rehab and the renters, is just fulfillment of the deal you already funded.

And if we're honest, the real money, the real velocity, is made in Step 2. You can find 100 deals, but if you can't fund them, you don't have a business.

And this is where everyone goes wrong when trying to grow their portfolio.

So here's the billion-dollar question:

If we all know "funding the deal" is the real bottleneck... Why is 99% of the advice out there about "finding good deals"?

That is the trap. That is the big lie that keeps investors stuck. And that's what I'm here to talk about.

The "Why" (The Math)

Let's do some simple math. (These numbers are for educational purposes only, by the way. Not a guarantee of results.)

You have Investor A, we'll call him 'The Coyote.'

He spends months hunting for that one 'perfect' deal. He finds it. A 30% margin deal. He's all-in for $300k, he's going to make $90,000 in profit. Amazing, right?

Then you have Investor B, we'll call her 'The Road Runner.'

She's not looking for 'perfect.' She's looking for 'good.' She finds a good deal. A 20% margin. All-in for $300k, she's going to make $60,000 in profit.

'The Coyote' laughs at her. 'I'm making $30k more than you!'

But here's the catch...

Because 'The Coyote' is using old, slow financing like a Hard Money Lender (HML), it takes him 9 months to find, fund, rehab, and refi that one deal.

Total profit in 9 months: $90,000.

'The Road Runner,' on the other hand, has a system for fast, cheap capital. She can find, fund, rehab, and refi her 'good' deal in 3 months.

So in that same 9-month period... She does three deals.

Total profit in 9 months: $60,000 x 3 = $180,000.

Who won? It's not even close.

You don't win by getting the best deal. You win by recycling your cash the most times.

The Real Bottleneck (The Pain)

So, if it's so simple... if it's just "Find a deal" and "Fund a deal"... why is it so damn hard?

It's because we're all running into the same four roadblocks in that second step.

Roadblock #1: Your capital is too slow. You find a 'cash only, 10-day close' deal, but your lender takes 20 days. The deal is gone.

Roadblock #2: Your capital is too expensive. You're paying 14% interest and 3 points, and it's just eating your margins alive.

Roadblock #3: Your capital is too controlling. This is the rehab draw nightmare. You're fighting an inspector for 10 days just to get your own money back, and your project stops.

Roadblock #4: You 'don't have enough' capital. So you're always chasing private money instead of doing deals.

Now, what do all these roadblocks add up to? Friction.

That is the mud most investors are stuck in.

The real problem isn't the quality of your deals. It's the speed of your capital.

Your most important metric isn't "margin per deal."

It's "PROFIT PER DOLLAR, PER YEAR."

And the only way to win that game is to recycle your money faster than everyone else.

To do that, you have to fire the HML. You have to end the rehab draw. You have to eliminate the friction.

Which brings us to the real question... how do you do that?

The Core Four (The How)

You do it by installing a new operating system for your capital. You do it with what I call The Core Four.

These are the four critical things you must have for your funding to give you consistent results and to be able to really grow.

So, you're probably going to want to write this down:

• The Structure
• The Cost
• The Speed
• The Process

The Structure

So, let's talk about The Structure. That's a fancy way of saying what financial tool you are using to hold your capital.

You're probably using a business savings account, which is terrible for holding working capital. A bank account is taxed on its measly growth... it's exposed to lawsuits... and the second you pull money out, it stops working.

The "Structure" we use is Cash Value Whole Life Insurance.

Why? Because insurance has a set of "Special Rules" written into the 100-year-old tax code that nothing else gets.

Rule #1: Tax-Free Growth. The 4-5% it earns is 100% tax-free. No 1099s.

Rule #2: Lawsuit Protection. In most states, the cash is invisible to creditors.

Rule #3 (THE BIG ONE): Leverage. This is the only place where you can take a loan against your capital, while your original capital keeps compounding as if you never touched it.

But... these "special benefits" are not free. This isn't magic. To get these benefits, you have to buy insurance.

This is the "Price of Admission," and it's the biggest objection investors have, so let's hit it head-on.

If you put in $100,000, about $15,000 of it is not liquid on Day 1. This is the one-time, upfront cost to build this financial engine. It's the cost to buy the tax-free status and the 1% loan provisions for life.

Now, why would you ever trade 15% of your liquidity? Because of the second pillar...

The Cost

This is the payoff for paying the insurance premiums.

Let's look at your HML's cost. They charge you 14% interest PLUS 3 points on every single deal. Let's do that math. That's 3% of your loan gone every time you buy.

Do 5 deals, and you've paid that 15% anyway... and you're still stuck paying 14% interest on the next deal.

Now let's look at the Fund. Because of that "Leverage Rule" we just talked about...

You pay the insurance company a fixed rate... let's say 6%... to take a loan against your policy.

BUT... your entire pile of cash is still earning 5% (tax-free).

You do the math. You pay 6%, you earn 5%. Your Net Cost of Capital is 1%.

So, the trade-off is clear: You take a one-time 15% liquidity cost to permanently fire your 14% lender and lock in a 1% Net Line of Credit for life. That is the breakeven. That is the play.

The Speed

The third part of your Core Four is The Speed.

What "The Speed" does is it's simply a way to cut out wasted time before it kills your project.

So I'll ask you a question... which I already know the answer to. What would you rather do?

• Pay your contractor $15k, send receipts, pay an inspector $175, wait 10 days for your own money to be reimbursed...
• Send one email, and get a $15k wire in 3-5 days. No receipts. No inspector.

Of course, you'd rather not wait for the draw. That 10-day delay is the friction that's killing your velocity.

That's what "The Speed" pillar is. We eliminate the rehab draw.

Because you're just requesting a loan from your own Fund, there is no draw process. You just ask for the money. You get the money. Your contractor gets paid. The job never stops.

If you don't have this, you are forced to follow the rules of your lender. You only want to use capital that you control.

The Process

And the final pillar here is The Process.

And the "Process" is a systemized way of recycling this capital.

So, if you remember our business... it's "Find a deal," "Fund a deal."

A "Process" is a systemized and predictable way to make that happen over and over.

For the BRRRR investor, this is the model:

• Buy: Use your 1% net-cost loan from your fund.
• Rehab: Take more money out as you need it for construction costs.
• Rent: Get the property leased up.
• Refinance: Go to a regular bank (now that the property is "rent-ready") and get a long-term, cash-out mortgage.
• Repeat: You take the bank's cash-out money, pay back your policy loans, and your fund is now 100% full again... ready to go buy the next deal.

For the fix and flip investor, you skip dealing with renters and banks and just sell. Then repeat.

That's the process. Once you have the funding, everything is very predictable.

And from there, you can now scale. Once the process is going, it really opens a lot of doors.

You can stop making your lender rich and start being the owner of your own funding system.

The "Help" Offer

So if you've got these Core Four here... now you can recycle your cash faster and more consistently.

And you can fund more of your deals... without having to be weird or salesy or beg a lender.

So here's my question to you...

Hopefully, you found this valuable. That's very, very important to me.

And if you did... would you like some help with all this stuff?

Because I know I just like, fire-hosed a lot of stuff at you with this Core Four.

And if you would like some help... just click on the button somewhere on this page. You can set up a time to talk to our team. And here's what we'll do...

There is no one-size-fits-all solution to this.

So what we're happy to do is just diagnose what you've got going on, help you identify the bottlenecks... (is it your HML cost? is it the draw process?)... and then give you some ideas on how to fix them.

And that could be fixing the Structure... which is really, really important. Helping you dial in your actual numbers. Just a couple little tweaks on your numbers could make a massive difference for you.

Helping you dial in your Cost. We'll run your numbers from a recent deal against this 1% net-cost model. We'll show you the exact breakeven.

And if you're at that place where you're like, "Okay, I'm at this level, and I really want to go a lot bigger," then we're a talk about the Process and how to scale and grow.

It's really your show. We're just here to figure out, "Hey, what do you want to achieve? What do you got going on? Help you find the bottlenecks and give you some pointers on how to fix them."

And so... there's no charge for that. Again, there's a little button somewhere, click it, and we'll set up a time to talk. It's pretty fun.

The Catches

There are two slight catches, by the way.

The first one, and I cannot stress this enough... We are admittedly terrible at "newbies."

If you do not have an active investing business... if you do not have liquid capital to park for your deal fund... you will not get any value at all from this conversation.

We're just not good at it. It's not my strong point. I'm not the person to go to for "Here's how to start investing from scratch."

That's not what we do.

If you have a business... you're doing rehabs, you're doing BRRRRs, you're doing flips... and you want that to do significantly better... We are unbelievably good at that. There's absolutely no question we can help you.

But if you don't... then please don't book the call, because you're not gonna get much from it. I don't want to waste your time, or ours, quite frankly.

Now, the second catch is there are only two specialists on my team that are qualified to help you. You're not going to be talking to some random person in a boiler room.

Everybody you talk to has been working with me for a long time and knows exactly what to do and works with me and with our clients.

So I don't have this huge group of people. When the calendar is full, the calendar is full. And therefore, it's a time-sensitive offer.

So, if you're interested, just go ahead, click the little button there, and set up a time. We'll get on the horn and see what needs to be fixed and how to fix it. Cool?

Awesome. So go ahead and do that. And again, thank you so much for reading this. I really hope you found it helpful.

Final Thoughts

Please, don't fall into the trap of thinking that you need to do all these 10 million different things in order to get better deals.

Really, I cannot stress it enough... I can tell you, without question... this business has really two steps:

Find a deal.

Fund a deal.

That's it. And all the other stuff (like expanding into new markets, raising capital, driving for dollars) is going to do really nothing but rob you of attention, cost you extra money, cost you extra time, and keep you stuck.

So, if you want to get unstuck and simplify everything, then just click on the button. Let us help you do it. We'll be delighted. There's no cost for that conversation.

Cool?