How to Refinance with Real OPM
Categories: Blog Posts
What are the advantages to refinance with Real OPM?
Refinancing can get you out of some rough situations with your fix-and-flips in this market.
While there are many loan products you can shop for to save your flip, good ol’ OPM (Other People’s Money) can be the easiest, fastest, and cheapest way to refinance.
Let’s look at why you might need to refinance your flip and why you should try to refinance with real OPM.
Why Should You Refinance a Fix-and-Flip?
The most important thing about this market is that you use it to your advantage to prepare for the next market.
We anticipate that over the next 12 months:
- The Fed is going to continue raising rates.
- The economy will soften.
- There will be great real estate deals like we haven’t seen in years.
You want to make sure you’re money-ready for those opportunities. You don’t want properties sitting on the market, taking up your time and energy, and tying up your funds.
So when you have a house that just won’t sell… What are you supposed to do?
Of course, there are traditional refinance methods. You can go to a bank and get a Fannie or Freddie non-conforming loan. But these loans need you to fit into a pretty small box. What if you own too many properties? Or you need your refinance loan fast? What if you don’t fit in the box?
That’s where refinancing with real OPM can come in handy.
Refinance with Real OPM
When it comes to real estate investment funding, OPM is almost always the best choice.
OPM is Other People’s Money. You match up with a real person you know who has money. These are usually retired people, or people nearing retirement.
Inflation is hitting them as bad as it’s hitting you. If they have a lot of cash, they probably want to put it somewhere more stable than stocks and with a better return than a bank account.
If you can offer these people a 5% to 7% return, then they may be willing to become your lender. OPM isn’t as concerned about typical loan qualification requirements. OPM done right is a win-win for both parties.
Overall, the fastest, easiest, cheapest way out of a fix-and-flip that’s stuck on the market is to refinance with real OPM. This form of lending is what you need most now. Prioritize finding these lenders.
What Are Your Next Steps to Refinance Out of a Fix-and-Flip?
If you have a flip that’s in trouble, let us know. We fund some loans ourselves, and we scour the nation looking for all the best loan products available. Let’s find the best debt for your position.
Send your questions to Info@TheCashFlowCompany.com. We’re happy to look at your loan, and if we can’t help you, we probably know someone who can.
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