Temporary Funding: How to Generate Positive Cash Flow with a Bridge Loan

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Temporary Funding: How to Generate Positive Cash Flow with a Bridge Loan

Temporary Funding: How to Generate Positive Cash Flow with a Bridge Loan

Temporary funding is one of the keys to real estate investing right now.

So, the world is going a little crazy lately. Things seem to be changing on a daily basis. Many areas of the country are seeing extremely low inventory, which makes it harder to find profit-making deals.

So, what can you do to ensure your cash flow doesn’t take a major hit during these strange and uncertain times? Especially if you’re stuck in a project or need temporary funding?

We suggest getting a bridge loan.

What is a bridge loan?

It’s basically a short-term loan that closes a financial gap.

For example, let’s say you have a hard money loan for a fix and flip or another value-add property, but you’ve run out of money. Well, you can get a bridge loan to help you finish your project. Because it’s way cheaper to get a short-term loan than to get stuck in an expensive long-term loan for months or years while you figure out a way to come up with funds to complete it.

Not to mention dealing with the costs of an unfinished project. Think about materials, contractors, taxes, insurance…the list goes on and on.

Think about your next project!

Bridge loans also work great when you are looking for your next project, but your current project’s closing is delayed. A bridge loan can help with this. It allows you to use the equity in the current project to secure a new one. And then when your current project closes the bridge loan is paid off and you’re on to your next project.

These loans keep your business humming without the stalling out due to lack of funds. You can even get a bridge loan so you can make a cash offer on a real estate deal.

Essentially, a bridge loan is immediate cash flow.

It’s an excellent way to keep your projects moving along and your cash flow, well, flowing! It also prevents you and your bank account from growing stagnant—or worse, depleting.

Ready to chat? Great! Our team is here to help.

We’re eager 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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Credit Score Problem: What is the Big Credit Dilemma?

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Credit Score Problem: What is the Big Credit Dilemma?

Let’s talk about a major credit score problem and how it impacts cash flow.

Every day, we hear about common roadblocks that prevent our real estate investors from making the kind of positive cash flow they need.

Today, we’re going to explore the number one roadblock that we hear about from clients:

A low credit score caused mainly by high credit card balances. Because the lower your credit score, the higher your rate and the fewer loan options you have available.

 

But, here’s the kicker: You need a loan to pay off your credit cards to raise your score.

Not only that, but a higher interest rate might kick you over the allowed debt-to-income ratio and prevent you from getting approved for a loan.

How do you win at this game? The deck is stacked against you.

It’s okay. Really!

We’ve seen this problem a hundred times in our business because every real estate investor uses their credit to finish renovating a value-add property or run a business. It’s a cycle that’s downright hard to get out of.

Our solution? Take it private.

Like the many other clients we’ve helped, we can help you fix your credit score problem by setting up a private loan. That way you can:

  • Pay off your credit cards
  • Raise your score
  • And get the loan and rate you need.

Once you do all of that, you can pay off your private loan and resume normal business with the best loan you can get. Signed, sealed, and delivered.

We also can help you build your business credit and take your credit cards completely off your score.

Either way, this little trick can help you and thousands of others get better rates, pay less to the banks, and make life more profitable.

Happy investing!

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Attention Real Estate Investors: Introducing The Cash Flow Company

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Attention Real Estate Investors: Introducing The Cash Flow Company

Attention Real Estate Investors: Introducing The Cash Flow Company!

At Investor Real Estate Loans, we decided it was time to change our name to convey who we REALLY are. That’s why we chose to call ourselves The Cash Flow Company.

Our new business name represents exactly who we are and what we focus on: Cash flow!

As a mortgage company, we strive to provide real estate investors with the best loans possible, meaning we offer plenty of options and flexibility. Because every investor is different and needs a loan that fits THEIR needs (not ours).

We help all of our clients achieve cash flow success through 3 key strategies:

  1. Lowering your finance costs. Because the lower costs, the more money you make.
  2. Lowering the amount you have to put into the purchase of a rental property. We like to call this the 2-Step Process, but some know it as BRRRR or a $0 down rental purchase. Whatever the case, it’s the correct way to handle the loan side of your investments, and it’s very important if you want to boost your cash flow.
  3. Use quick, proven strategies to raise your credit score. Why? Because the higher your credit score, the better your interest rates. And the better your interest rates, the more money you save every month. We like to call this your Return on Credit.

We strive to constantly focus on these 3 pillars of our business so that you have plenty of options to increase your cash flow. Because we’re eager to set you on a path that helps you make the kind of money you need to live the life you want.

Welcome to the new and improved Cash Flow Mortgage Company. We can’t wait to chat with you about your value-add plans!

Happy investing!

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Busting Hard Money Myths: Why Hard Money is a Cure, Not a Curse

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Busting Hard Money Myths: Why Hard Money is a Cure, Not a Curse

Busting Hard Money Myths: Why Hard Money is a Cure, Not a Curse

Today, we’re going to wrap up our Busting Hard Money Myths series, and talk about why hard money is a cure, not a curse.

But, first, be sure to check out our YouTube channel in case you missed any of our other hard money myth busting videos.

So, this past month, we’ve explored the important question of, “What is hard money?” That means we’ve busted myths and revealed how it:

  • Can be acquired for cheaper rates than most investors believe.
  • Are NOT a trap if you create a plan ahead of time.
  • And can be cheaper than bank lines.

As you can see, hard money is far from a curse.

It’s a cure.

A cure to:

  • Buying properties faster and cheaper.
  • Keeping your real estate investment projects moving along so you can sell or rent ASAP.
  • Boosting your cash flow.
  • Tackling more value-add properties than you ever could with a traditional bank loan.

Look, hard money gets a bad rep because so many real estate investors have serious misconceptions about it. But if you address each myth and see that that’s all it is—a myth—then you can transform your investments and generate positive cash flow.

No longer will you be limited to conventional loans that are harder to qualify for, and far more time consuming. Now you can buy fast, renovate fast, and either sell or rent fast.

Remember, time is money.

And hard money is the key to keeping your real estate deals moving along—AND keeping money flowing into your bank account.

Ready to chat about your hard money and other lending options? Great! Our team is here to help. We’re excited to set you on a path that makes you the kind of money you need…to live the life you want.

Happy investing!

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Busting Myths: How Hard Money Can Be Cheaper Than Banks

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Busting Hard Money Myths: How Hard Money Can Be Cheaper Than Banks

Busting Myths: How Hard Money Can Be Cheaper Than Banks

Let’s keep busting hard money myths and talk about how hard money can be cheaper than banks.

But, first, in case you missed our other hard money myth busting videos, check them out on our YouTube channel!

So far, we’ve busted common myths like “Hard money is too expensive,” and “Hard money is a trap.”

Now, let’s look at another common misconception about hard money:

“Bank lines are cheaper than hard money.”

Okay, on the surface, bank loans are cheaper. Yes, that part is technically true.

However, when you scratch below the surface, you’ll discover hard money can be cheaper. All because of one important factor that doesn’t get calculated into the equation at the start of a loan:

Timing.

Think about how long it can take to close a bank loan. You might get lucky and close within 30 days, but it often takes longer. Sometimes MUCH longer.

Hard money, on the other hand, moves much, much faster. You can usually close within two weeks, but it can be even faster. Some lenders can close in just a few days. When you close faster, you can get to work faster…which means you can complete your project faster. Faster projects mean more money in your pocket.

Another timing issue real estate investors fail to consider: The amount of time it takes to fund escrow.

AKA, your rehab.

If it takes longer to access those funds, then it’ll take longer to pay your contractor. And if your contractor isn’t paid quickly enough, they might move on to another value-add property project.

Not only does it take banks longer to approve escrow funds, but they have stricter guidelines. Let’s look at an example:

You want to withdraw $10,000 from your escrow account to pay your electrician. But when you get the invoice from your electrician, you realize you only needed $8,000.

However, your plumber suddenly also needs to be paid $2,000.

Unfortunately, the bank won’t care about your plumber. They’ll send you only what you need to pay your electrician since that’s what you originally asked for.

You’ll have to waste precious time sending in another request for the $2,000. Within that time, your plumber might take off and find a different project. They can’t wait around for you to pay them so they can complete their work.

That means you have to search for a new plumber…which means you waste time.

And time is money!

Hard money lenders respect that.

Most of them focus on moving fast, being flexible, and working with you to get you through your project as quickly as possible so you can tackle your next real estate deal.

So, there you have it. In the long the run, hard money can be cheaper than banks.

Again, it all comes down to timing. And, again, time is money in real estate investing.

Stay tuned for our next video where we talk about the biggest and most misleading myth of all:

Hard money is a curse.

Ready to chat about your hard money and other lending options? Great! Our team is excited to set you on a path that makes you the kind of money you need…to live the life you want.

Happy investing!

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Real Estate Funding Solutions: Welcome to The Cash Flow Company

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Real Estate Funding Solutions: Welcome to The Cash Flow Company

Real Estate Funding Solutions: Welcome to The Cash Flow Company

If you’re looking for fast real estate funding from a team that truly cares about your cash flow, then welcome to the Cash Flow Mortgage Company.

Because we believe that cash flow makes life flow!

The Cash Flow Mortgage Company is a rare, one-stop-shop for all your real estate investment deals. Gone are the days of working with multiple lenders for one property. We have everything you need to generate positive cash flow and make life a whole lot easier.

Among our many services, we offer:

Non-traditional and hard money funding

Non-traditional and hard money loans are perfect for fix and flips, rentals, and BRRRRs, and other value-add properties. Furthermore, they’re ideal for real estate investors who need to move FAST or might need to get creative with qualifications. For example, if you don’t have tax returns (or don’t want to use them), then we have a loan for you. Or if you’re real estate portfolio needs some work, we can help you build it so you can eventually apply for a long-term bank loan.

Traditional funding

If you’ve got the qualifications, then we’ve got long-term, low-rate loans for you!

Bridge loans (aka, gap funding)

If you want to ensure your cash flow doesn’t take a major hit when the market is tight, or if you’re stuck in a project and need temporary funding, then a bridge loan is perfect.

Credit score boosting tips

The better your credit score, then the better your interest rates. And the better your interest rates, then better your loan products. Which means you spend way less money every month.

Ready to get going? Great, we’re here to help. Our team is eager to set you on a path the helps you make the kind of money you need to live the life you want!

Happy investing!

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Busting Myths: How to Get Out of Hard Money FAST

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Busting Myths: How to Get Out of Hard Money FAST

Busting Myths: How to Get Out of Hard Money FAST

Today, we’re going to bust another myth, and show you how to get out of a hard money loan FAST.

So many real estate investors believe hard money is a trap.

This is false!

In fact, many investors think hard money is a profit death sentence.

Again, this is FALSE.

Here’s the truth: Hard money loans should only be used as temporary solutions for your value-add properties. They’re not meant to be long-term options. If you enter a hard money loan with a long-term mindset, then yeah, you’ll probably lose most (or all) of your profits.

So, what can you do to ensure you’re in and out of a hard money loan fast? Here are 3 tips:

Make a plan to exit your loan as quickly as possible.

Don’t walk into your loan without a plan to get out of it.

If you’re doing a fix and flip, then make sure you have everything scheduled and set so you can get the work done and sell the property ASAP.

If you’re looking at fixing and holding (aka, rental property), then make sure you line up a long-term loan (aka, a traditional or bank loan) alongside your hard money loan. Don’t wait until you’ve completed the renovation portion of the project to start the refinance process.

If you work with the right lender, you can get help creating your specific plan, and get help with both your hard money AND long-term loan.

Focus on your credit score.

If you want to refinance out of your hard money loan quickly, then you’ll need to make sure you have a good credit score.

What is a good score? Ideally, you want it to be above 640. But that’s the bare minimum. Aiming for 670 or higher is even better.

If your credit score is below 640, then take the time to raise it before you get a hard money loan. Otherwise, you’ll likely get stuck because there aren’t many—if any—real estate lenders who can help you refinance with such a low score.

If you need tips on raising your score, check out some of our other videos on our YouTube channel.

Don’t delay construction.

Sometimes real estate investors close their deal with a hard money loan and then…sit. They don’t jump straight into the project and get things moving. Or they get started, but then hit a bump in the road and delay things.

Don’t do this.

The faster you get your work done, the faster you can sell or rent the investment property. Which means you can get out of your pricey loan a lot faster.

A great way to stay on track is through the Flipper Force app.

Listen, a hard money loan isn’t an expensive trap. It only becomes an expensive trap because real estate investors don’t go into it prepared.

If you need help preparing before you commit to a hard money loan, then our team is always here to help.

Stay tuned for our next video where we talk about bank lines compared to hard money loans. Believe it or not, bank lines aren’t always the cheaper path to take.

Happy investing!

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Busting Myths: How You CAN Afford Hard Money

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Busting Myths: How You CAN Afford Hard Money

Busting Myths: How You CAN Afford Hard Money

It’s time to start busting myths about hard money, and discover how you CAN afford hard money.

Today, we’re going to bust one of the most common misconceptions about this investor-friendly lending option:

“Hard money is too expensive!”

False!

When you get a hard money loan, it doesn’t mean you have to automatically pay 12% interest or more.

In fact, if you take these 3 steps, the cost of your hard money loan will be drastically reduced:

Prove you have experience.

If you show a hard money lender you’ve completed real estate deals successfully, then they’ll feel more confident in giving you money. And confidence means better rates.

How can you show your experience? The best way is to present a real estate portfolio with before and after pictures, budgets, and profits earned.

Be willing to put money down at closing.

If you have skin in the game, then a lender will likely be more willing to lower the cost of your loan. Why? Because it reduces their risk.

But how much money should you try to put down at closing? Ideally, 10% or more. But even as much as 5% will help lower your loan’s cost.

Maintain a good credit score.

Your credit score matters when it comes to loans. The better your score, the better your rates.

If your credit score is on the low side (below 670), then you can find simple ways to boost it. Here are 3 tips to get you started:

  • Stop using your credit card and start paying it off. Simple, but effective. And when you hit a $0 balance, do NOT close the account. Closing an account that’s in good standing is anti-productive in keeping your score healthy. You want to show you have good credit history. So if you close your accounts, then your history won’t exist.
  • Keep your card balance low. Like, under 30% of its maximum. So, if your card has a maximum credit line of $1,000, then don’t let your balance rise above $300.
  • Pay your credit card bill on time. Again, simple, but effective. If you make your payments on time for the next 12 months, your score WILL rise.

Hard money doesn’t have to eat up all of your profits. We assure you that if you take these 3 steps, you can greatly reduce your costs and actually boost your profits considerably.

Stay tuned for our next video where we discuss the myth of getting trapped in a hard money loan. Spoiler alert, another pitfall that’s easily avoidable if you take a few simple steps.

Ready to chat about your hard money and other lending options? Great! Our team is here to help.

What is hard money? Learn more on our YouTube channel!

Happy investing!

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Busting Myths: What Is Hard Money

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Busting Myths: What Is Hard Money

Busting Myths: What Is Hard Money

What is hard money?

More importantly, what is it NOT?

Today, we’re starting a new series about busting hard money myths. Because there are so many rumors and misconceptions out there about this type of real estate funding. Unfortunately, most of these are negative.

Real estate investors all around the country say things like:

“Hard money is too expensive for me and my wallet.”

“It’s a trap!”

“Bank lines are so much cheaper.”

“Hard money is a curse!”

First of all, FALSE!

Second, we’re going to bust these myths and show you how hard money is not something to fear or avoid. In fact, it’s something to utilize so you can boost your cash flow and profits.

Yes, boost. Not obliterate.

But, before we dive into each myth in our upcoming video series, let’s talk about hard money.

Here are 3 keys facts you should know:

  1. It’s a special type of loan that’s usually secured by a real asset—aka, real estate. The funds for these loans is typically provided by private investors or companies.
  2. They’re not like normal bank loans that you pay off for 15-30 years. They’re meant to be short-term. Like, 3 to 9 months. You can pay them off quicker or slower than that timeframe, but this is the typical range.
  3. They’re perfect for real estate investors who want to buy value-add properties FAST, because hard money loans can get closed in days, not weeks. They’re ideal for buying discounted non-MLS properties. For example, think about wholesalers and other under-market deals.

Now that you have a better understanding of hard money, we can dig into the myths and misconceptions that revolve around it.

Our new video series busts these myths and show you how it isn’t something to fear or avoid. It’s actually something to use so you can generate positive cash flow and profits.

So, are you ready to talk about your real estate funding options? Great, our team is here to help.

Happy investing!

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How to Make Monthly Income: 3 Methods for Real Estate Investors

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How to Make Monthly Income: 3 Methods for Real Estate Investors

How to Make Monthly Income: 3 Methods for Real Estate Investors

Have you always wanted to learn how to make monthly income? Well, today we explore 3 methods for real estate investors.

As a real estate investor, you likely believe cash flow is king. Because why else would you put your hard-earned money into value-add propertied?

Hopefully, a lot of it.

But let’s take a step back and ask ourselves:

“What is cash flow?”

Because, the truth is, all of us have different goals, expectations, and perspectives when it comes to making money off our investments.

There tends to be 3 popular approaches to cash flow. These include:

  1. Putting less money down
  2. Making monthly income
  3. Using cash-out refinancing to gain the most leverage

All of these cash flow methods share two common similarities:

  • Using the BRRRR method.
  • Buying discounted properties (non-MLS listed properties).

Let’s take a closer look at the second cash flow approach:

Making monthly income.

This is probably the most common strategy among real estate investors, because most of them like to create a consistent monthly income. Why? Well, probably because they want to:

  • Replace a full-time job;
  • Supplement their current income;
  • Or create a nice sized nest egg for their future.

Let’s look at an example.

Jane the Investor doesn’t mind putting SOME money down at closing. And, on top of using the BRRRR method and buying discounted properties, she tends to focus on 3 methods to ensure she makes positive monthly income.

What are these 3 methods? Well, let’s take a look.

  1. Focus on maintaining a healthy credit score. The higher your credit, the better your rates, which means you pay less money to the banks and keep more money in your pocket. Every. Month.
  2. Choose investor-friendly real estate lenders who offer options. We’re not just talking about one or two options, but many. More options means better financing. And better financing means, yet again, less money to the bank and more money in your pocket.
  3. Invest in higher quality properties. That means putting some work into a value-add property so it’s, well, nicer. Nicer properties tend to draw tenants who treat the property, well, nicer! They’re more respectful and cause less damage than tenants who rent lower quality properties. Better yet, when a property looks nicer, it tends to be more desirable. That means demand increases and you can charge a higher rent. And higher rent means higher cash flow.

So, there you have it! If you’re looking to generate solid, consistent, monthly income, then this would be a great strategy to take.

Ready to discover how you can make a good monthly income? Great, our team is here to help.

Happy investing!

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