Read all the paperwork. Know what you're agreeing to, this is so important. I've seen many of my licensees around the country borrow money from third parties. They didn't even know what they were getting themselves into. I've seen them borrow from banks. For example, banks love to take all of your assets, pull them together into one. What's called a blanket loan and then make you subject to them is if they decide that your property's not worth what they think it ought to be worth, they can call that entire loan. Do I imagine that that was in that paperwork all along?
They have the right at any time that they feel unsecure to literally give you a call and say, by the way, our loan committee met and we decided that we just want to go ahead and receive the money back on that loan.
Imagine what you would feel like if you got a call from the bank. And that happened. Well, it was all there and the paperwork. This is one of the reasons I teach my clients not to go to banks and not to qualify for loans. Now I know you may have a great relationship with banks and they love you and they call you up on the phone and they beg you to come get some more money. And I understand and if you've got one of those relationships, I'm not saying don't do that.
Well maybe I am saying that because if you were to actually understand what to say and how to say it, you'd be able to raise all the money you needed for your deals without going to banks, without qualifying for loans, without paying points, and even without paying closing costs. How powerful is that?
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