Real Estate Goals: How to Turn 2020’s Lemons into Lemonade

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Real Estate Goals: How to Turn 2020's Lemons into Lemonade

Real Estate Goals: How to Turn 2020’s Lemons into Lemonade

It’s 2021, which means it’s time to come up with some fresh real estate goals.

The year 2020 had its opportunities, sure. But we think it’s fair to say that, overall, it was a year full of lemons.

Lots and lots of lemons.

And, yeah, we know 2021 isn’t going to be overflowing with daisies. But we think it’s time to take 2020’s lemons and make them into lemonade (hmm, lemonade!). It’s time to come up with more than goals and resolutions this year. It’s time to come up with a plan. A plan to:

Let’s not wallow in fear and uncertainty in 2021. Instead, let’s look on the bright side and generate positive cash flow. Because in good times, bad times, and in-between times, someone will always make money. Why not you?

So come on, let’s chat about your goals and a plan to achieve them this year. Because our team is eager to set you on a path to help you make the kind of money you need to live the life you want.

Happy investing!

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How to Get Out of Your Hard Money Loan Now

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How to Get Out of Your Hard Money Loan Now

How to Get Out of Your Hard Money Loan Now

Do you know how to get out of your hard money loan?

Because if you’re a real estate investor and like to buy value-add properties FAST, then these are the types of loans you likely rely on. And if you work with wholesalers (who have tight, strict deadlines), then you most definitely need to use hard money to close your real estate deals.

But that doesn’t mean you want to get trapped in a hard money loan. Nobody wants that! Even as a hard money lender, we don’t want you to get stuck with high interest rates for months and months.

That’s why it’s important to know you have options. Hundreds of them!

Yes, you heard that. YOU have options, even if you don’t have:

  • Tax returns
  • Income
  • A business partner
  • Or a company name

So, as a real estate investor, why do you need hard money?

Well, as we mentioned above, it’s great for buying discounted, value-add properties, and then renovating and renting them. It’s also great for taking advantage of the free equity you get from discounted or wholesale properties.

But what can you do when you’re in a hard money loan and you’re ready to get out (meaning, you’ve already renovated and rented the property)? But you can’t get a traditional/conforming loan because you don’t qualify for a bank’s strict requirements?

The bigger question: How can you stop your hard money loan from eating up all of your positive cash flow? What can you do to stop giving your lender all of your profits, rather than yourself?

Well, here’s the thing. Both banks and lenders don’t like to tell you that you have OPTIONS.

Just because you haven’t been self-employed for more than 2 years, or you don’t have tax returns to show (or you don’t want to use them), you can refinance into a more affordable loan. And with that new loan, you can:

  • Keep it away from your credit score (because the more loans you have, the more it impacts your credit score).
  • Put it under your LLC’s name.
  • Have unlimited projects.

To find that affordable, flexible loan, all you really need are 2 things:

  1. A good credit score (if you need boosting tips, check out these videos on our YouTube Channel).
  2. A lease that will cover the rental payment.

Trust us when we say, you don’t need to get stuck in a hard money loan. Every real estate investor has options.

If you’d like to discuss your options, our team is ready to help!

Happy investing.

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Real Estate Deal: Why Did My Bank Say No?

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Real Estate Deal: Why Did My Bank Say No?

Are you trying to close a real estate deal, but your funding was rejected? Are you wondering, “Why did my bank say no?”

Well, you’re not alone. Many real estate investors always been told: Find a bank and create a relationship with them. If you do, then life (and loans) will be easy.

So, why, after building these so-called relationships do banks still say no every time you apply for a real estate loan?

How many of us have been in this situation? Well, probably most of us.

But, why?

The reason most banks say no is because they only have 1-2 options for real estate investors. At best! And, wait for it, you probably don’t currently fit in their tiny, little boxes.

The truth is, banks carry very limited options for real estate investors.

Banks have many loans coming in their door. Too many. That means they can cherry pick. If it doesn’t fit in their itty-bitty box, they can just tell you, “No.”

So, you probably won’t fit in most banks’ small, strict, picky boxes if you:

  • Are a new investor.
  • Like to write everything off on your tax returns legally.
  • Want to refinance before you own a property for an entire year.

We’re talking about 97% of banks.

Even worse, banks won’t want to refer you to someone who can say yes. Because then you’d start asking too many questions on why they can’t give you a loan. Banks might not want your real estate investment loan, but they definitely want to keep your deposits and bank accounts.

The inside secret here is you need to call a lot of banks until you find one that’s still lending to investors and has a loan for you.

But be warned!

No bank will agree to close a real estate loan for you if your income doesn’t fit inside that tiny, little box of theirs.

You also always need tax returns with banks, and they need to be the type of tax returns where you can’t write everything off. And here’s the kicker of it all: You might find a bank that works for you, but then they decide to stop lending to investors. It just happened here in Colorado. One of the top investor banks just stopped lending.

So, when banks say no to you, understand that this is their usual response. You always have to remember they have limited products and limited amount of funds to lend out.

But don’t get discouraged!

Just look for a lender who focuses on real estate investors and offers options.

Because, really, there are HUNDREDS of options for investors. Options for:

Options and strategies will always accelerate you faster than trying to change your circumstances to fit all those small, itty-bitty boxes of banks.

That’s why we focus on investors, offer hundreds of options, and develop personal strategies to help you multiply your cash flow.

Ready to chat about your next value-add property’s funding? Our team is here to help!

Happy investing!

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How to Buy a Property with ZERO Money Down

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How to Buy a Property with ZERO Money Down

How to Buy a Property with ZERO Money Down

Did you know you can buy a real estate property with zero money down?

It’s true! Just check out these 4 key steps:

If you want to buy a property and put less money (or no money) down, then check out these 4 steps.

Buy discounted properties.

You might be able to find discounted properties on the MLS. Maybe. But you’ll probably have more luck finding them via a wholesaler. Especially when it comes to value-add properties (i.e. fix and flips and rentals).

Set up your loan properly.

This is an important 2-Step Process. The trick is to purchase with a hard money loan, and then quickly refinance with a long-term loan. That way you can get the highest loan amount possible. It all starts with discovering what you qualify for on the long-term side. Once you know what that loan looks like, you can match that number to your hard money loan.

Use rate and term, NOT cash out.

Okay, deep breath.

We’re not going to get into the nitty gritty of these mortgage terms, but we are going to highlight the significant differences.

Setting your loan up as a cash out can be very tempting. You get money at closing. What’s better than that, right?

Well, did you know when you set up your loan as a cash out, you:

  • Pay higher costs
  • Take a lot longer to refinance out of your expensive hard money loan
  • Qualify for lower loan amounts

With a rate and term, all of that changes. You:

  • Spend far less cash up front
  • Refinance out of pricey hard money loans a lot faster (like, we’re talking months faster than a cash out)
  • Enjoy lower rates

Better yet, your cash flow will multiply because you get to do more with your money when you pay less for your loans. This is actually a simple process to set up if you work with someone who can help you with both your hard money and long-term loans.

Put zero money down by finding the right lender

To seal the deal, find a lender who can handle these kinds of loans.

Unlike most other lenders, our team has the expertise, knowledge, and ability to handle everything from hard money to conventional loans. Plus, we treat you like a teammate, not a number.

With our help, you can start buying your properties with no money down today. Let’s chat!

Happy investing.

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The Smart Way to Invest in Real Estate

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The Smart Way to Invest in Real Estate

If your goal is to make money and generate positive cash flow, then you need to be smart about the way you invest in real estate.

And one of those ways is finding the RIGHT lender for you. Especially if it’s a lender who can help you with both your hard money and long-term loans.

At the Cash Flow Mortgage Company (previously known as Investor Real Estate Loans), our dedicated, hardworking team focuses on 3 important steps:

Offering OPTIONS

Whether it’s hard money, bridge loans, refinances, or 30-year mortgages, we have the skills, knowledge, and credentials to handle every step of your real estate deals.

Providing a fast and efficient system.

Speed and efficiency are pivotal in the real estate business, especially when it comes to value-add properties. If you can’t close quickly, then you will likely lose precious opportunities…and a lot of money.

Why?

Well, because when you use multiple lenders, you’ll waste time shopping around, getting rejected, filling out the same paperwork you filled out for the last lender, and dealing with countless other obstacles.

We’re here to help you get off that frustrating hamster wheel once and for all. We focus on streamlining your system so you can take advantage of every opportunity and leave your competitors in the dust.

Helping you make a lot of money!

Cash flow is king in this business and we want you to rule the areas you invest. By giving you multiple options and helping you streamline your process, we’ll help you double, triple, or even 10X the amount of money you make. And we’ll help you do it with a lot less stress and frustration.

The Cash Flow Company is all about you and making you money. Because cash flow makes life flow.

Ready to chat about your loan options? Great, we’re here and ready to help.

Happy investing!

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Money Making Tips: How Your Lender Can Make or Break Your Cash Flow

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Money Making Tips: How Your Lender Can Make or Break Your Cash Flow

Money Making Tips: How Your Lender Can Make or Break Your Cash Flow

Looking for some money making tips? Well, did you know your real estate lender can make or break your cash flow?

If you’re a real estate investor, then you probably strive to to multiply your cash flow. Because, in this business, cash flow is king!

But did you know the lender you choose makes a HUGE impact on your cash flow? Most lenders only care about themselves, while other lenders care about YOU. The right lender will want to focus on making you a lot of money as fast as possible.

If you choose the right lender, you can move quickly and efficiently through the lending process. Meanwhile, your competitors will get buried in paperwork and rejections.

How is this possible? Well, if you find a good, flexible, INVESTOR-FRIENDLY lender, then you’ll be given a lot of options. You won’t have to squeeze yourself or your real estate portfolio into a tiny qualification box (think banks). You’ll be able to find a loan product that fits YOU.

You’ll be able to buy value-add properties FAST with a hard money loan, and then turn around and refinance into a long-term loan with much lower rates. Think one-stop-shop for all your real estate loans.

Want to discover more? Our team is ready to talk about your plans and help you achieve your money-making goals. Because we want to set you on a path that helps you make the kind of money you need to live the life you want!

Happy investing!

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How to Avoid Lender Rejection: 5 Ways to Get Approved

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How to Avoid Lender Rejection: 5 Ways to Get Approved

How to Avoid Lender Rejection: 5 Ways to Get Approved

Do you know how to avoid lender rejection? Today, we show you 5 ways to get approved.

Because, rejection stinks any which way you look at it.

It can really stink when it comes from a lender.

It’s taken you months, but you’ve finally found a value-add property that you want to buy, renovate, and/or refinance (or all of the above). But no matter how hard you try, you can’t find a lender willing to help you out.

Grrrr!

Well, guess what? You don’t have to experience the frustrating cycle of rejection any longer. No more searching and applying for loan only to get a big fat “NO!” Nope, that’s over!

Just follow these 5 tips:

Understand that lenders are different.

Understand that every lender is different. No two lenders will offer the same products or focus on the same types of customers. So, do your research before applying. Because Lender A might have what you need, but not Lender B.

Find out a lender’s focus.

Some lenders focus on first-time homebuyers, while some focus on commercial properties. You want to find a lender who’s focused on real estate investors.

Make sure a lender has options.

Some lenders have a very small, very strict list of requirements. Others are flexible and offer a variety of options. No taxes? No income? Iffy credit? Some lenders are okay with that. But many will need all those things. So, know what you bring to the table before you talk to lenders. The ones with more requirements will be more prone to rejecting you.

Know your numbers.

Knowing your numbers will help you know what your options might be. Your numbers include things like:

If you know this information, it will help you and your lender find the right loan for you.

Tell the truth.

Let a lender know if you’ve had a bankruptcy, maxed out your credit card, or missed a payment. Don’t be scared about doing this, because if you do, a lender WILL find out and they will lose all trust. And that means you might lose your loan.

Ready to chat? Great, our team is eager to help!

Happy investing.

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Are REITS showing us the way for future real estate investing?

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Quick read from the Bowtie Economist Elliot Eisenberg regarding the investment in Real Estate Investment Trusts.

 

Since real estate transactions have been very limited given Covid-19, knowing what various types of real estate are worth has been hard to directly ascertain. However, publicly REITs trade daily. YTD through 6/30/20, data centers are up 19%, infrastructure is up 17%, industrial is up 2%, and everything else is negative…  Click here to read the rest and join his email list.

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Its a bidding war out there for properties

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We are seeing this firsthand with a couple properties we ended up selling and the word from all of our active real estate investors.  Right now there is a bidding war going on.

More Than Half of Redfin Offers Faced Bidding Wars for Second Consecutive Month in June

July 10, 2020 by Dana Anderson

54% of Redfin offers faced competition as the supply of homes for sale and mortgage rates continued to fall in June. Single-family homes and townhouses were much more likely than condos to receive multiple bids.

See the full article from Redfin here

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Mortgage Investor Report 6 23 2020

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Mortgage Investor Report 6 23 2020

Conforming rates are hot, and underwriting is loosening up.

What are other current options available for investors?

Most of these type loans are slowly coming back.  Lets hope there is not another countrywide closure so they stay around.

We all need options.

Non-conventional loans for investors.

 

If you are an investor and your taxes don’t allow you to obtain a traditional standard conventional loan or any loan that requires returns, what do you do?

 

Look for the two most frequently used options for investors:

 

  1. Bank statement programs. These loans base your income on the last 12 to 24 months of personal or business banks statements.  Simply put they add up your deposits each month and average them over the number of months.  This will be the income they use for your qualifying for the mortgage.
    1. Rates are 2 to 3 points higher than a conforming loan
    2. The higher the credit score the better the rate
    3. The lower the loan to value the better the rate
    4. Cash out vs rate and term is 5% lower for cash out
  2. Investor cash flow. These loans use lease payments for the income.  They require a minimum of your lease payment covering all your monthly costs for the rental.  This includes mortgage payment, taxes, insurance, HOA, property management, utilities, etc…
    1. Better pricing for better credit scores
    2. Better pricing when your rent is larger than monthly costs
    3. Higher ltv based on how much more your rent payments cover your monthly costs

 

 

Note: The Cash Flow Company doesn’t currently lend in all states, but we are always happy to help and make sure you understand your numbers!

*All non-commercial and construction loans offered by TNS Loans NMLS #1719349

 

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