Tag Archive for: cash flow

How To Refinance and Boost Your Cash Flow

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How To Refinance and Boost Your Cash Flow

Today, let’s explore how to refinance and boost your cash flow.

It’s probably pretty safe to say that in the real estate world, cash flow is KING!  Because cash flow makes life flow.

But what does cash flow mean to you? Because it comes in all shapes and sizes.

What cash flow means to one investor might be very different from another.

Let’s look at an example.

We have 3 real estate investors: John, Jane, and Jack.

John likes to focus on putting less money down so he can keep more money in his pocket.

Jane likes to focus on making consistent monthly income.

And Jack likes to focus on using cash-out refinancing to gain the most leverage.

Today, let’s take a closer look at Jack’s strategy.

It’s a simple one, but popular, especially during a refinance boom.

Essentially, Jack likes to refinance all of his value-add properties every 3-5 years so he can unlock his equity and bring more money into his life. He can use this money for personal or business matters, but it’s usually for something personal.

Now let’s break this simple strategy down a bit more.

So, Jack owns 3 properties.

He bought each one for $100K.

After 3 years, each property gains $25K in equity. So, Jack refinances and takes the $25K out of each property. All because he wants to use the money for…whatever! Maybe he wants to pay off his credit cards, buy another value-add property, or go on an epic skiing trip to the Alps. The sky’s the limit.

Well, mostly.

Once Jack has this money, he relaxes for another 3-5 years. Then, if interest rates drop, or he gains more equity, or both, he’ll refinance again. And, again, he’ll use the money for whatever he needs or wants in life.

The process repeats over and over until Jack decides to sell his properties or find a different cash flow strategy.

Now, Jack’s method of refinancing isn’t for everyone. But it’s definitely a popular cash flow strategy that many investors enjoy using.

Is it the right strategy for you? Our team is here and ready to help you discover the best path for you.

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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How to Make More Money: 3 Cash Flow Strategies

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How to Make More Money: 3 Cash Flow Strategies

How to Make More Money: 3 Cash Flow Strategies

How can you make more money? Well, today, we’re going to explore 3 cash flow strategies that will make your wallet very happy.

First of all, when most of real estate investors think about real estate investing, they think cash flow!

But here’s the thing.

Everyone has a different definition of cash flow.

For example, what cash flow means to John might differ from what it means to Jane. And what Jane values might drastically differ from what Jack values.

Of course, even if their cash flow goals differ, there are a few similarities between John, Jane, and Jack. Those similarities include:

  • Using the BRRRR method
  • Buying discounted properties
  • Making money (obviously!)

Now, while John, Jane, and Jack might share a few similarities in the real estate world, they also share many differences, especially when it comes to generating positive cash flow.

What kind of differences are we talking about?

Well, let’s take a look at their 3 individual real estate methods:

  1. Less Money Down: John likes to focus on leverage. He wants to limit his initial outflow so he can keep more money in his pocket. This strategy tends to work best for him and other investors who want to break even every month with their tax write offs.
  2. Making monthly income: This cash flow strategy is probably most popular, because it’s all about making money every month. Jane, who likes to take this approach, doesn’t mind putting some money down at closing. She also has a reason for wanting to generate consistent income each month. For example, she might need it to supplement her current income, replacing a full-time job, going on a big vacation every summer, or another reason.
  3. Refinancing: While some investors want to see money flowing into their bank account every month, others, like Jack, prefer to wait 2 to 3 years to refinance—or whenever there’s a movement in equity. When equity rises, Jack likes to get his money out of a property to use for his life and/or to buy more value-add properties.

As you can see, cash flow comes in all shapes and sizes.

  • John focuses on less money down.
  • Jane focuses on monthly income.
  • Jack focuses on refinancing.

Is one real estate method better than the other? Absolutely not. All 3 are valid cash flow strategies. It just depends on which one works best for you and the lifestyle you want.

So, what’s your strategy?

Our team is here to discuss your options, create a personal strategy, and set you on the path to making the kind of money you need.

Happy investing!

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How To Buy 3 New Rental Properties This Year

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How To Buy 3 New Rental Properties This Year

How To Buy 3 New Rental Properties This Year

How does buying 3 new rental properties in 2021 sound? Whether you’re just starting out in real estate investing, or you’ve been around the block a few times, this is an achievable goal.

Really!

It all starts with 3 key steps.

Step 1: Buy discounted properties.

Sure, you can try and find properties on the MLS, but you’ll have way more luck finding discounted properties through wholesalers.

Step 2: Buy FAST with a hard money loan.

Hard money is great because it doesn’t have the same timeline as conventional and other traditional loans. With hard money, you can close within days, not weeks or months.

And if you’re buying discounted properties from wholesalers, closing fast is essential. Because wholesalers have strict deadlines. Very strict. So, if you can’t close within a couple of weeks, then you might as well say bye-bye to those cash-flowing, value-add properties.

But we get it. Hard money is expensive. That’s why step 3 is so important.

Step 3: Refinance FAST out of a hard money loan into a long-term loan.

Like we said before, staying in a hard money loan too long can be pricey. So, the sooner you can refinance out of it, the better for you and your bank account.

Now, some of you might be thinking, “I can’t refinance into a long-term loan. The banks don’t like me.”

Well, here’s the truth: You have HUNDREDS of options when it comes to refinancing. Forget squeezing yourself inside a bank’s itty-bitty box of requirements. You can explore all sorts of options to ensure you’re able to buy a property fast with hard money, and then refinance fast with a long-term loan.

The key to all of this is working with the right lenders. Ones who know how to handle both hard money AND long-term loans.

Like us!

We’re able to help you buy fast through our company Hard Money Mike. Then we’re able to help you refinance into a long-term loan with our new sister company, The Cash Flow Company.

Our unique, efficient, two-step approach to lending is critical to tripling your properties…and tripling your cash flow.

Remember, it’s all about:

  • Buying discounted properties.
  • Buying fast with a hard money loan.
  • Refinancing fast into a long-term loan.

Ready to buy 3 new rental properties this year? Let’s talk!

Happy investing.

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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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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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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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Investor Mortgage Report 6.15.2020

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What We Know:

Rates on the conventional side have maintained strong with rates in the low 3’s. If you’re still wondering whether or not you should refinance, we’re going to dive into what we call ‘The Tipping Point Rate.’

This week, we’re seeing more larger non-conventional companies dipping their toes back into the investor loan water. This gentle ease back in helps increase liquidity, but it still comes at a price:  Lower LTVs and higher costs.

What This Means for You:

There is an exact rate where it’s wise to refinance. We call this ‘The Tipping Point Rate.’ This specific rate is the point where you won’t pay a penny more in principal and interest over the life of the loan.

Calculate the tipping point rate on your refinance

Going above this point might increase your cash flow, but it will end up costing you more in the long run. Sometimes this means it’s better to stick with what you have now.  We’re focused on putting more money in your pocket and less in the bank’s pocket.

This is for investors looking to increase monthly cash flow without adding lifetime cost of debt. So, if you’re solely concerned about your monthly cash flow, this probably isn’t the program for you.

So how does this work? Let’s take a look at an example.

Joe is an investor who is looking at refinancing to increase his cash flow every month. But not if it means paying tens of thousands of dollars extra to the bank in principal and interest.

Joe has been paying his current mortgage for 5 years. If he keeps the loan until it’s paid in full, he’ll end up paying $360k in payments over the next 25 years.

Joe wants to know the exact rate that he can refinance to a new 30-year fixed without increasing his amount owed. If it exceeds $360k, then he won’t refinance.

By knowing this exact rate, he can stretch his payments out and lower his interest rate without paying a penny more over the life of the loan.

How do we find Joe’s Tipping Point Rate?

Luckily, we have a handy program that can calculate just that.  If you would like to know your own Tipping Point Rate, send us an email!  We’ll run the report specifically for you and your property!

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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Investor Inspo: Texas Fix-and-Flip

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We might be based in Colorado, but that doesn’t mean that as our client you have to miss out on deals in other states! In fact, Hard Money Mike lends on properties in several states, like with this Texas fix-and-flip!

Texas fix-and-flip deal

We love seeing our clients crush their investment goals, even from afar! Take, for instance, this Texas fix-and-flip property purchased by one of our clients. We were able to fund this deal in a week.

Yes, you read that right.

Investors and wholesalers alike will find the short-term loan process at Hard Money Mike quick and easy. We pride ourselves on making it easier to get the cash flow you need for quick property purchases. Who wants to wait around when they’re trying to close a deal and add to their investment portfolio?

In other words, we want to help you make more money even faster!

Hard Money Mike is a lender based in Colorado, lending money on all types of commercial based properties: fix and flip, land, whole tailing, and builder bridge loans.

Have your eyes set on an investment property on the single-family or commercial building side? The Cash Flow Company funds investor loans on properties in both of these categories. Long story short: whatever deal you’re trying to fund, chances are, we can help you get it done!

Give us a call:

Hard Money Mike  303-539-3000

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

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