Mario Montecinos is a successful real estate investor and hard money lender. Mario has built an impressive portfolio and brings a wealth of knowledge on how to get started, leverage private loans, and build wealth through real estate. Join us as Mario shares his journey from our college days to becoming a prominent lender and investor.
The Journey Begins: Mario’s First Property
Mario’s journey into real estate began with the purchase of his first condo back in 2004. It wasn’t smooth sailing—after an initial appreciation, the market crashed, leaving him questioning his decision. However, instead of walking away, Mario stayed the course. He converted the property into a rental, eventually making it a profitable investment. His story highlights one key takeaway: real estate investment is a long game. As Mario wisely pointed out, “You can buy even in arguably not the best time and still come out ahead with a game plan and the ability to hold onto the property.”
Mentorship Matters
Mario’s path to wealth wasn’t something he learned from his family. Like many of us, he didn’t grow up surrounded by investors. It was through a mentor, Mark Melan, that Mario realized the potential of building wealth through real estate, particularly apartment buildings. “Mark exposed us to the ups, downs, and opportunities in real estate,” Mario recalls. He and a group of friends all embraced the idea that they could become millionaires by owning apartment buildings, and many of them did just that. Mario’s advice? Surround yourself with like-minded individuals and mentors who can guide you on the right path.
The Power of Leverage
One of the most powerful tools in real estate investing is leverage. Mario’s first major investment, a fourplex in Gardena, California, was purchased using an FHA loan with just 3.5% down. Though the property didn’t cash flow initially, Mario understood the potential. He improved the property, increased rents, and eventually turned it into a profitable venture. The lesson here: don’t shy away from properties that don’t cash flow immediately. With strategic improvements and patience, you can turn them around.
Hard Money Loans
One of the key topics we explored with Mario was the use of hard money loans. These loans, often seen as “out of the box” financing options, are typically used when a property needs major work or when traditional financing isn’t an option. While they come with higher interest rates, they offer significant advantages for investors, such as lower down payments and flexibility in qualifying. Mario emphasized that hard money loans aren’t just for seasoned investors; even first-timers can use them to their advantage if they have a solid plan.
Key benefits of hard money loans:
- Easier qualification—no need for traditional income documentation.
- Lower down payments—typically 10-15% compared to 25% for conventional loans.
- Construction draws—allowing you to finance the rehab costs.
Building Partnerships
For those who may not have the means to purchase a property solo, Mario offers a simple solution: partnerships. He recently partnered with a colleague to purchase another fourplex, a strategy he recommends for anyone looking to get into the market without shouldering all the risk. “I’d rather own 50% of something than 100% of nothing,” Mario says, encouraging new investors to team up with others to get started.
Future
As Mario looks ahead, his goals are clear: continue growing his real estate portfolio while also giving back to the community. He’s passionate about helping others, whether it’s by providing housing or sharing his wealth of knowledge. His ultimate plan? To build enough passive income to focus more on serving others and contributing to solutions for homelessness.
Final Thoughts
Mario’s journey is a testament to the power of perseverance, mentorship, and smart investing. Whether you’re just starting out or looking to expand your portfolio, his advice rings true: find the right people, use leverage wisely, and don’t be afraid to take calculated risks. Real estate is not a sprint, but a marathon, and with the right strategy, you too can build wealth and secure your financial future.
For more insights from Mario or to explore hard money lending options, feel free to reach out (https://www.emortgagecapital.com/officer/mario-montecinos)