Moshe returns to the hot seat to take your questions about real estate and business, including how you can start investing without much money, strategies to manage properties in multiple states, and why vision and clarity are everything when it comes to investing.

A hard money lender vs a mortgage broker:

“They are basically private lenders that look to lend money as a business. I don’t typically borrow from them because as you grow as a sponsor – as a real estate owner with a track record – you’re able to go to different banks and I prefer to actually use a mortgage broker. I pay him a fee and he takes my package – let’s say I’m buying a property, or refinancing a property – he presents it to many different lenders and we take the best offer. That’s where we are now. But, I do know people that lend privately, maybe nowadays it’s 12 to 17% interest, which is very high. You want to obviously pay the least amount of interest.”

On trying to screen renters who won’t pay:

“You want to run their credit. … It depends on the state also. In a lot of states, they are very pro-tenant – which isn’t necessarily a bad thing. But every now and then you get a really bad apple. I know in New York I have friends and family that own buildings, and through maneuvering of the law people can live rent free for almost two years, maybe more. … You sign a contract, as an adult, that you are going to pay the rent. … If we do our part to provide good accommodations, it should be reciprocated, and you should pay the rent.”

You can start investing with no money:

“It’s called sweat equity. Everyone always thinks, ‘Oh, how am I going to start? I have zero.’ You can start with zero! If you have a vision. Everything in real estate is – just like other forms of business – a service or a widget. It’s a tough process and investors will say, ‘No, no, no, no … yes.’ So, you have to have resilience and grit and not care about being rejected, which is tough. You have to learn that if you want to have success. … And then, if you don’t know how to write a business plan there are free videos on YouTube.”

Moshe’s company’s real estate philosophy:

“We’re buying things that other people weren’t able to handle. So, in the nature of every day, we’re doing stuff that’s hard. And that’s what we do.”

High level, what to consider in business:

“I consider three things with money. Money is a tool, and it’s three boxes. It’s business, it’s charity, and it’s family. And that’s where money movement happens with the typical person. In the business box, you must have vision and clarity that if I make movement in this business widget or service, whatever it happens to be, it should make money for my partners and for myself.”