Tag Archive for: cash flow

Act Fast: Real Estate Investment Essentials for Today’s Market

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Act Fast: Real Estate Investment Essentials for Today’s Market

Real estate investing in today’s market can be daunting. Discover the real estate investment essentials for today’s market so that you can succeed in the near future. For the past 10 to 12 years the rates kept getting better and the pools of money were bigger than ever. It was a time where anybody and everyone could get the financing they needed for their investments. Nowadays, the money is just gone. While this may cause many investors to run away, it is actually the perfect opportunity to get into real estate investing. If you want to participate in this market, there is a learning curve. However, once you learn how to play the game, you will set yourself up to win when rates go back down. 

Now is the time!

It is one of the most valuable times to get into real estate investing. This is because the Fed is tightening up and banks are starting to lend less. In doing so, it creates better deals that will in turn create wealth and income in the near future. One of the most important things to remember is that when there is fear in the street, that is when people start running. These are the times when you need to make your move. 

How can investors prepare?

To get started, buy when property values are low and rates are high. This will guarantee your success when the market changes. When rates go back down over the next few years, you will already have your property, and can take advantage of the higher property value. Those who are positioned correctly, and stick with it, need to be set up correctly. Let’s look at the steps you need to take in order to take advantage of this current market.

  1. Understanding the market by going through knowledge based learning
  2. Set up your realtors
  3. Determine how you are going to find your deals
  4. Learn how to calculate your ARV

By getting all of the training completed over the next 90 days, it will allow you to confidently enter the market right away. If everything keeps going the way it is, then there are going to be more opportunities available compared to before, as well as a smaller pool of investors who can take advantage of this.

If things are tightening up, why does that create more opportunities?

When the Fed shrinks the money pool, it in turn decreases what’s available for everyone. This causes lenders and banks to swim upstream in order to look for the best of the best. Banks are being pushed to the point that they can only lend a portion of what they could before. Let’s take a closer look at the money side as a customer, and as an investor, to explain why these times are creating more opportunities. The customers are the ones who own their homes and are going to give it up for a discount. While investors are looking at the property as money to invest. Once again, leverage is the key to real estate investing and why we can make money from nothing. Anybody can do this and create generational wealth if you are set up correctly and financially prepared. 

How lending has changed.

One of the largest private lenders used to lend on ARV. ARV stands for after repair value. Lending based on ARV allows investors to get more money, create more leverage, and buy more deals. So if you’re in real estate investing you need to focus on purchasing undervalued properties, fix them up, and either keep it or sell it. This will in turn create wealth for you to reinvest in another property. In today’s market however, lenders are lending off of LTV, or loan to value, instead of ARV. This is often a $50K to $75K difference from what they were lending before the market changed. 

Let’s look at an example of ARV vs LTV

Purchase a house for $250K with a rehab of $50K
Worth when all said and done Percentage Amount they will lend Amount lenders  want you to put in 
ARV $400K $400K at 75% Close to $300K 10%
LTV Lenders don’t looks at this  $300K at 75% Close to $225K 10% to 30% 

It is clear to see what a big difference it makes when lenders switch from ARV to LTV. They are becoming tighter on their lending, lending less, and charging more. This creates a smaller pool of investors, because many can no longer qualify for those deals. While the deal flow might remain the same, only 20% to 30% of investors are prepared to continue buying in this market. There are going to be better deals for those who can buy and buy quickly.

How rates are impacting DSCR

Rates are impacting a lot of things, including DSCR and the rental side of real estate investing. A DSCR ratio of 1 means that the expenses and the income are equal to each other. In the past, DSCR ratios were based on a 1:1 ratio. Nowadays, the ratio has increased to 1:1.1, which means that you need to create even more cash flow. Now if we layer that onto a credit score of 680 or 700, then the ratio will increase to 1:1.2. Therefore, the people with better credit scores often get the better deals. 

Creating the leverage you need to succeed.

Make sure that your business is set up correctly from the very beginning in order to create wealth. In doing so, you will be able to open up business credit cards, business lines of credit, and seek out OPM or other people’s money. An underused source of funding is OPM. Nowadays more people are searching for better returns, you can be their solution. Investors who create these buckets of money will set themselves up to win. It is also imperative that you have a good credit score and a good business history so you will be more attractive to the lending community. Do you need help with raising your credit score or locating OPM. Contact us to find out more! 

What do investors need to do?

This is the time when the select few will make a lot in the near future. If you want to take advantage of this, then you have to do certain things. Let’s take a closer look at real estate investment essentials for today’s market. Also known as the pillars of success.

1. Find a lot of properties/find good properties

It is important to buy when everyone else is running away. A successful investor needs to determine where they will find properties, connect with others to start buying better properties, and understand the value of the property. The better the property you find, the better chance you have to get the financing you need. Especially from private lenders or hard money lenders. 

2. Set up your business correctly  

It is imperative that you set up your business to look like you are serious about investing. This includes setting up your business name, establishing business accounts, and applying for business credit cards. In setting these things up correctly, banks and lenders will know that you will do what it takes to succeed.

3. Make sure you have a diverse source of funding 

Start by looking for lenders who are actually lending, and build a relationship with them. In taking the time to build that foundation, you will be the person who goes to the top of the pile. Lenders will not be willing to help investors who don’t return calls, or those who are unprofessional. Finally, broaden your horizons by looking at other options to see who can help create the wealth you want. 

4. Find contractors and resources that will help you complete repairs.

We still see properties that are selling like crazy. These are in good locations and have quality work done. It is important to find contractors and resources that will help create a product that people will want to buy. Don’t skip on the flips! Take the time to find a team who can make your property shine. This will result in a shorter sell at a better return for you.

In Conclusion

Things have changed, bankers have changed, and lenders have changed. You should always have control over your lending options. There is a glimmer of hope in this more restrictive economic environment. Investors can empower themselves by setting things up right, cultivating relationships, and knowing your numbers. You can still make a lot of money in this market as long as you understand the rules in the game and have the flexibility to change with the times. 

At The Cash Flow Company we can help you find the funding you need and guide you through this market. 

Watch our most recent video to find out more about Real Estate Investment Essentials for Today’s Market.

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Are the high interest rates worth paying right now?

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Are the high interest rates worth paying right now?

There are a number of questions that investors are faced with going into  2024. The main concern is whether or not it is worth paying the higher interest rates right now, and if it will pay off in the end. To help answer these questions, let’s take a closer look at how the market has changed, what you should avoid, and how you can succeed in the New Year.

How has the market changed?

It is the perfect time to jump in if you can buy something low. As long as you do it correctly, you should invest now while everyone is running away! Then when rates go back down, you will be able to create wealth for future investments. A few years ago many people were buying properties for $100K over asking price. In today’s market  they would be able to sell it for maybe $250K. Since they overpaid on the property a few years ago, they are now upside down on their investment. Don’t let this happen to you! As a new buyer, make sure you are purchasing it at a good number while the market is down. Over time you are going to win the game by buying at the right time.

What should you Avoid?

Getting into real estate investing now will get you on the fast track to success. If you are able to buy good properties in good markets, then you will be successful. It is important to avoid properties that are on corners or busy streets. In these times, the best properties are on a culdesac or near local parks. Real estate investors need to research current market trends before jumping in. There are some markets where cities are doing better than suburbs, while others are growing at a faster rate. Another thing to be aware of as a real estate investor is all of the negativity out there, which is driving people out of the market. Instead of following the herd, turn this negativity around so it can benefit you.

Number of Real Estate Investors is Shrinking 

There has been a whole generation of real estate investors who have gone through good times with money, banks, and lenders in the past. This was when everyone was trying to give you more money for your investments. However, the Fed is now trying to slow that down. The huge pool has gotten a little bit smaller for those who are trying to qualify for loans. This lending squeeze has resulted in many real estate investors getting out because they don’t have the credit score or income to succeed in this market. In 2024 there will be less real estate investors, less money available for funding projects, but more deals available for the driven investor.

In Conclusion

Now is the time you should invest in real estate properties! By strategically selecting properties, investors have the opportunity to grow their wealth when rates drop. Don’t let the high interest rates prevent you from investing now. Those who take the plunge will not only take advantage of lower rates later by refinancing, but they will also be ahead of other investors who are just coming into the game. There is a lot of money to be made in real estate. Invest today to succeed in the New Year!

Watch our most recent video to find out more about investing in today’s market.

We can help you get set up to win in 2024! Contact us today!

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DSCR Loan: Why Rental Properties Fail to Cash Flow

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DSCR Loan: Why Rental Properties Fail to Cash Flow

Today we are going to dive into an example illustrating why rental properties fail to cash flow using a DSCR loan. A DSCR loan are loans focused on the rents from a rental property and the credit worthiness of the borrower. In today’s market, the increasing interest rates are truly affecting payments and more importantly they are impacting cash flow. As a result, it has become harder and harder to qualify for a DSCR loan. Likewise, DSCR ratios are changing also. What used to be a 1:1 ratio (rents compared to expenses), has now increased depending on your LTV. Therefore, many investors can no longer qualify because there is no cash flow for the property. So, what does this look like numbers wise? Let’s take a closer look.

Example:

$250K Loan 
Time Frame Percentage Expected Payment Change Over Time
Couple years ago 3.75% $1,158
Now 9% to 11% 

(depending on LTV)

 $2,011 $853 

Payment Increase 
In the Future 7% 

(you refinance $2,011 principle)

 $1,663 $348

Cash flow increase 
The Optimus  5%

(Looking if it dropped from 9% to 5%)

 $1,342 $669 

Cash flow increase 

In this example it is clear to see why rental properties fail to cash flow, especially with a DSCR loan. The increasing rates have caused payments to increase as well. When combined with ever rising taxes and insurance expenses, investors are struggling to break even, let alone create cash flow. All of these pressures are making it harder to be successful in real estate investing. 

Why is it a good time to buy?

So, why is it a good time to buy? My suggestion for investors is that they need to find something that has good equity and at 25% to 30%. As long as it is breaking even, then in a year or two when rates go back down, you will be able to refinance to increase your cash flow without buying another property. The more affordable the homes are, the bigger the market becomes. The good news is that buyers are going to start buying again, and the values around you are going to increase.. While no one can predict that the interest rates will go back down to 2.5% for owner occupied and 3.75% for investors, there are indications that interest rates will drop in 2024. 

What’s next?

I will be doing a follow up video that will further show you the effect that interest rates have on cash flow. This will include a look from the buyers side, and how the market is going to push up your values. If you can find a good undervalued property now, then you are going to not only create cash flow, but create generational wealth as well. You’re not alone! There are a lot of people who are questioning if they should buy now. 

Watch our most recent video about why rental properties fail to cash flow and how you can set yourself up for success by investing now.

Do you have questions about DSCR loans or how you can create generational wealth? Contact us today!

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Are You Making These Common Real Estate Investing Mistakes?

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Are You Making These Common Real Estate Investing Mistakes?

There are a number of common real estate mistakes that investors are facing. These mistakes occur when buying and holding rentals, flipping properties, and dividing land. Nowadays, these common real estate investing mistakes undoubtedly create frustration and can lead to defeat. With this in mind, let’s take a closer look at the five major roadblocks to make sure that they don’t affect you!

First, Cash Flow 

The first mistake that real estate investors make is immediately purchasing a property before evaluating the cash flow. To put it briefly, you want to make sure your profits are in fact greater than your expenses. Avoid this mistake by making a plan and know your numbers upfront! 

Second, Understanding Escrow

The second mistake is not understanding escrow, let alone what is needed to receive the escrow funds. Escrow is a portion of the loan that a lending company puts aside for repairs to the property. By understanding your lenders policies, you can optimize your profits by completing repairs quickly and correctly. 

Third, Too Many Projects

The third mistake is having too many projects. From multiple property costs to paying contractors, investors can get too big too fast. It is important to “err on the side of caution” to prevent the “finance crunch” that often occurs. 

Fourth, Rentals

The fourth mistake is not properly navigating rental cash flow. The deal needs to be a positive investment not a negative one after considering all costs. In real estate investing, you cannot afford losses or simply break even.

Fifth, Personal Credit Usage

The fifth and final mistake is the misuse of personal credit cards for business expenses. If you want to avoid spiraling into debt, then quickly set up your business and begin using a business credit card. 

By understanding these common real estate investing mistakes, you can ease your frustration, prevent a finance wall, and learn how to create a constant cash flow.

Watch our latest interview to discover more about the 5 Major Roadblocks

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5 Major Roadblocks in Real Estate Investing Solutions Revealed

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5 Major Roadblocks in Real Estate Investing

Did you know there are 5 major roadblocks in real estate investing? From buying and holding rentals, to flipping properties, to dividing land, investors face numerous roadblocks that create frustration, and lead to defeat. But fear not! When investors identify these 5 roadblocks, they can ease their frustration, prevent a finance wall, and learn how to create consistent cash flow.

We work with many clients, including those who are just starting out on their real estate investment journey, to those who have become experts. Every day, our company receives numerous calls  from people saying, “I wish I would have,” or “I wish I did that too.” Therefore, we’ve  created a guide to help others skip bumps in the road that can impact their success. When you’re aware of these 5 roadblocks, do your research before embarking on your real estate journey, and reevaluate quarterly, the sky’s the limit.

So, what are the 5 Major Roadblocks that cause burn out, financial hemorrhaging, and, unfortunately, defeat? Well, here’s what you need to know to make your real estate investments successful.

5 Major Roadblocks:

1. Cash Flow 

The first roadblock that can greatly affect your success is not understanding the importance of cash flow. If your property’s expenses outweigh your profits, then that’s going to hurt you and your business. You want to make sure your profits are always greater than your expenses. The best way to avoid this roadblock is to make a plan and know your numbers upfront! Don’t dive into an investment before you know if your property will cash flow. 

2. Escrow 

The second roadblock every investor should understand is escrow. Escrow is a portion of the loan a lending company puts aside for repairs to the property. The only way to access these funds is to submit receipts, photos, and other proof to your lender that the repairs are underway. So, if you want to optimize your profits and avoid missing the market when it’s “hot,” you need to take all repair costs into consideration, make sure you have money to get the repairs started without your lender’s help, and complete repairs quickly and correctly.

3. Too Many Projects

The third roadblock is having too many projects. From multiple property costs to paying contractors, investors can get too big too fast. It is important to “err on the side of caution” to prevent the “finance crunch” that often occurs. So, slow down, be realistic, and limit your losses. 

4. Rentals

The fourth roadblock is navigating rental cash flow. The deal needs to be a positive investment not a negative one after considering all costs. These costs include rents, taxes, and insurance. In real estate investing, you cannot afford losses or simply break even. The numbers game is intense! It is vital that you are prepared and learn the ropes!

5. Personal Credit Usage

The fifth and final roadblock is the misuse of personal credit cards to cushion purchases or expenses. If you want to avoid spiraling into debt, then quickly set up your business and begin using a business credit card. Business credit cards are easy, fast, and make every investor’s life easier. 

At the end of the day, the ultimate goal is keeping personal and business expenses separate. It’s vital to a successful real estate investing.

Watch our latest interview to discover more about the 5 Major Roadblocks

 

Want more information on real estate investment roadblocks or have any other questions? Contact us today! 

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DSCR Loan and Your Credit Score

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DSCR Loan and Your Credit Score

Today we are going to discuss why getting a DSCR loan can be easy and rewarding with the right credit score. By ensuring that your credit is in the best position, you’ll be on your way to success!  Not only would you be getting a loan that’s perfect for you, but you would also increase your cash flow.

First and Foremost, Review Your Credit Score

Next, consider your credit score. You can get a DSCR loan with a score in the low 600s, but it will cost you more. To clarify, a lower credit score can add up to one or more percentage points. This can in turn increase your interest rate, which can increase your monthly payment by $200 to $400.

Example: Let’s say you have a credit score of 620. You might get a loan with a 7% interest rate instead of 6%. On a $200,000 loan, that extra 1% could mean paying $2,000 more per year in interest.

If you need tips to raise your score, check out resources like our YouTube channel for advice on improving your credit.

Conclusion

By reviewing your credit score and getting yourself in the best position, you will in turn get a better interest rate! If you find any step challenging, don’t worry. Our team is here to help you. We’re eager to set you on a path that helps you make the money you need to live the life you want.

Watch our most recent video to find out more about: DSCR Loan and Your Credit Score

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Real Estate Investing: Points and Interest Explained

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Real Estate Investing: Points and Interest Explained

Today we are going to explain what points and interest are in regards to real estate investing. This is something that needs to be considered when you are applying for a loan in order to ensure that you get the best deal. Whether it’s a hard money loan, a private loan, a bank loan, or even OPM (Other People’s Money)? Each situation is different! It’s essential to know what works best for you. Let’s get started!

Factors to Consider

Speed of Funding

In real estate, speed can make or break a deal. Sellers prefer buyers who can close quickly with no hassle. So, you need to know which lender can fund the fastest.

Down Payment

Down payments can vary. With hard money, you might get 100% financing, but usually, you’ll need 10-20% down.

Example: If you’re buying a $300,000 property, a 10% down payment means you need $30,000 upfront.

Points and Interest Rates

Points are fees paid to the lender, usually as a percentage of the loan amount. Interest rates can range from 10% to 12% or more.

Example: On a $270,000 loan with 1 point, you’ll pay $2,700 upfront. At 12% interest, you’ll pay $2,700 monthly.

Additional Fees

Lenders may charge other fees like escrow fees, draw fees, underwriting, and appraisal fees. These can add up, especially on smaller loans.

Example: A $200,000 loan might come with $1,900 in fees, affecting your overall cost.

How to Choose the Best Loan

  1. Compare Costs: Use our free Loan Cost Optimizer tool on our website to compare lenders and see who offers the best deal.
  2. Check Funding Speed: Make sure your lender can close the deal quickly to avoid losing it.
  3. Evaluate All Fees: Look at points, interest rates, and other fees to get the full picture.

Conclusion

In sum, the best loan for your fix and flip is the one that costs you the least and funds on time. At The Cash Flow Company, our goal is to help you get the best lending options available. If you have a question or a deal to discuss, reach out to us. Visit our website, download our Loan Cost Optimizer, to not only compare lenders, but to also find the best deal for you.

Watch our most recent video to discover more about: Real Estate Investing: Points and Interest Explained

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Why You Need the Loan Cost Optimizer

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Why You Need the Loan Cost Optimizer

Today we are going to discuss why you need the loan cost optimizer! When taking into consideration which loan is best for your fix and flip, it is imperative that you compare everything side by side. Whether it’s a hard money loan, a private loan, a bank loan, or even OPM (Other People’s Money), each situation is different. That is why it’s essential to know what works best for you. Let’s get started!

Understanding Leverage

Leverage is key in real estate investing to create wealth. Think of leverage like a tool. When used right, it helps you build faster and better. Here’s what you need to know to ensure you get the best leverage:

Consider the Cost and Value

Just like hiring a contractor, you need to look at what you’re paying for and what you’re getting. It’s not always about the cheapest option but the best value. Typically, you might hear that hard money is more expensive than private money, but let’s dig deeper to see if that’s true.

How to Choose the Best Loan

  1. Compare Costs: Use our free Loan Cost Optimizer tool on our website to compare lenders and see who offers the best deal.
  2. Check Funding Speed: Make sure your lender can close the deal quickly to avoid losing it.
  3. Evaluate All Fees: Look at points, interest rates, and other fees to get the full picture.

Conclusion

In sum, the best loan for your fix and flip is the one that costs you the least and funds on time. By using the cost loan optimizer you can see everything side by side before making a decision. At The Cash Flow Company, our goal is to help you get the best lending options available. If you have a question or a deal to discuss, reach out to us. Visit our website, download our Loan Cost Optimizer, and compare lenders to find the best deal for you.

Watch our most recent video to discover more about: Why You Need the Loan Cost Optimizer

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10 Things You Should Know About a DSCR Loan for Rental Property Deals

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How do you know if you’re the right type of person for a DSCR loan on a rental property?

What makes a good DSCR loan? What makes a good DSCR property?

We get hundreds of people asking these questions. While traditional loan offerings will be more or less the same from lender to lender, DSCR loans are more like the wild west. Every lender will have slightly different requirements, expectations, and terms.

But DSCR loans are an amazing option when used in the right place, on the right property, from the right borrower.

Let’s go over 10 things that will help you understand what’s right for a DSCR loan on a rental property.

What’s a DSCR Loan for a Rental Property?

Debt service coverage ratio loans are loans designed for real estate investors. They’re most often 30-year products, but some lenders will offer other types.

The debt ratio in a DSCR loan is based on two things: the property’s income and the property’s expenses (mortgage, interest, taxes, and insurance). Cash flow is a vital piece to DSCR lending.

Let’s look at 10 things to keep in mind for DSCR loans.

1. Income

DSCR loans are best for borrowers whose current income over the last two years doesn’t qualify for either a conventional loan or a loan from a local bank.

If your tax returns are low over the last two years, that’s where a DSCR loan might come in for your rental property.

2. Business History

Many real estate investors are new, so they don’t have two years’ worth of tax returns for their business.

With DSCR loans, the length of your business does not matter. You could have opened the LLC the morning you close on the loan. Banks need your business information because they’re lending based on you. DSCR lenders don’t because they’re lending based on the property.

3. Employment Gaps

In the same vein as the first two items, DSCR loans are great for people who just changed jobs, moved, or haven’t had a continual work history for the past two years.

A conventional bank won’t be understanding about career shifts or gaps in work. But they won’t impact your ability to get a DSCR loan.

4. Investing History

Traditional lenders can be hard on new real estate investors. They want to see past successful projects in order to trust you. DSCR loans, though more designed for investment properties, don’t care about your past real estate investing history.

5. Cash Flow on a DSCR Loan Property

To get a great DSCR loan, the rental property must cash flow. While there are some DSCR loans available for negative cash-flowing properties, you’ll only get the best rates and terms when you have positive cash flow.

6. Loan Limit

DSCR loans are also good for people who have maxed out the amount of conventional loans they can get.

Conventional loans have a limit of 10 per person. Once you’ve reached that limit, you need to start looking for alternative options (like DSCR loans).

7. Credit Score

The higher your credit score, the better. However, even people with lower credit scores (660 and below) have options with DSCR.

Keep in mind, a lower credit score means a more expensive loan. A more expensive loan will lower your cash flow. Lower cash flow might disqualify you for the loan.

Instead of a 7.5% interest rate, a poor credit score could only get you a 9.5%.

8. Holding a Property with a DSCR Loan for 3-5 Years

This is another area where DSCR loans differ from conventional loans: DSCRs come with prepayment penalties. This means if you pay them off before 3 or 5 years (whatever period is decided by the lender), then you get charged a hefty fee.

DSCR loans are best for people who want to hold the property, and not refinance or sell within the prepay period.

9. Property Is Turnkey

DSCR loans aren’t good for fix and flip properties. A DSCR property should need no work – it should be turnkey, totally ready.

This means you should use a DSCR loan on either rental-ready purchases or a refinance on a completely renovated BRRRR-style rental.

10. Interest-Only

Lastly, DSCR loans are good for someone looking for interest-only payments. Banks and conventional loans don’t offer interest-only options.

Doing interest-only improves your cash flow, giving you 5-10 years where you don’t have to pay principal.

The Right DSCR Loan for a Rental Property

When you’re looking for cash flow, always look at all of your options before you jump into a loan.

We hope this article gives you an idea of what you should look for when you shop around.

Download this free DSCR calculator for the next time you’re shopping for rentals, and send any questions our way at Info@TheCashFlowCompany.com.

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What’s Your Cash Flow: Interest Rate by Credit Score

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Lenders decide your interest rate by credit score. Here’s how it shakes out…

Leverage is the lifeblood of investing… Using other people’s money (loans) to create income and wealth for you and your family.

The largest source of funding is both small and large lending institutions. One of the top (if not the top) determining factors for lenders getting you the best funding possible… is your credit score.

Let’s look behind the scenes and see how these lenders use credit scores to determine your rate.

How Lenders Decide Interest Rate by Credit Score

Full disclosure: sometimes your rate gets jacked up just because you’re working with a greedy loan officer.

However, once you’ve found a lender you trust, you can be assured they’re using an internal system that looks something like this:

These credit boxes are what the lender uses to determine the cost of a good vs not so good credit score. (If your score is too low, you more than likely will just not get a loan).

The above example is what we would see from a typical DSCR lender. A conventional lender’s would look very similar.

The negative price adjustments are not a direct change to a rate but they are added to the cost to calculate the rate. In layman’s terms: the higher the cost, the higher the rate.

From the highest score to the lowest, you would expect to see around a 1.5% increase in interest rate. So, if the best rate was 7% at a 740+ credit score, then you may expect a rate of 8.5% with a 640 score.

Example: How Interest Rates and Credit Score Changes Your Cash Flow

As an example, let’s say we need a $300,000 loan for either a purchase or refinance. The cost of our funding, depending on interest rate, would be:

  • At 7%, the monthly payment would be $1,996
  • At 8.5%, the monthly payment would be $2,306

How does that look in credit terms? A 640 score would cost you the $2,306. On the other hand, a 740 score would cost you $300 less, at $1,996.

This is a $300 difference per month in your cash flow. Aka: a bad credit score could cost you $3,600 per year in cash flow!

An investor with a great credit score and 10 properties would be paying $1 million less over the life of their loans than an investor with the same amount of properties and bad credit.

Help with Your Cash Flow

This is why investing is easier for some people and harder for others:

Cash flow is king.

Credit will control that cash flow.

 

Want to find out how to get your credit score up and your rates down?

To get our report on the best rates, reach out to us at Info@TheCashFlowCompany.com. You can also get more info on real estate investing on our YouTube channel.

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