Tag Archive for: financing real estate

How to Get Wholesalers to Email YOU!

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How to Get Wholesalers to Email YOU!

 Today I would like to share with you what I’ve learned over the past 23 years while working with successful investors. These investors have learned how to grow their wealth quickly and easily by working smarter, not harder! What exactly does that mean? To put it briefly, they work smarter by getting on the wholesaler’s “A” list. As a result, they can find incredible deals without scouring the internet or contacting realtors. Find out how to get wholesalers to email you today! Let’s get started!

Finding good wholesalers

First and foremost, you need to find wholesalers without doing endless internet searches or asking other investors. Investor Lift is a user-friendly website that can help you build a wholesaler network quickly. This website allows you to find the majority of wholesalers in your area by simply clicking on the property. More importantly, you to find the contract information including their email and often a phone number as well. In as little as 10 to 15 minutes you can be emailing wholesalers and getting deals sent directly to your inbox.

  1. Create an excel spreadsheet to copy and paste the wholesalers information into.
  2. Go to Investor Lift at  https://investorlift.com/ 
  3. Sign up for a free account by clicking Register in the upper right corner.
  4. Select the State that you are searching in.
  5. Click on a Property that you are interested in.
  6. Select Contact to see who is selling the property.
  7. Copy and Paste the email and phone number in your excel spreadsheet.
  8. Build your List by going through each property and adding to the excel spreadsheet.
  9. Add Properties to your excel spreadsheet daily.
  10. Send them an email sharing what types of properties you are looking for.
  11. Follow up weekly to see what they have available.
  12. Go to the properties you are interested in.

Get on the “A” list!

Establishing a good relationship with the wholesalers is the key to success! Of course it may take 30-60 days to create the relationship. However, it is important to show that you are an active buyer and a good buyer. As a result, investors will receive property information before it is added to the website. Ultimately wholesalers want investors who know what they are looking for in order to have properties purchased quickly.

Keep a watchful eye.

In a nutshell, you will find both good and bad wholesalers during your search. With this in mind, it is important that you keep a watchful eye out for the bad wholesalers. A bad wholesaler for instance is one who tend to advertise overinflated properties, or properties that have under-inflated fix up costs. Focus your attention on the good wholesalers who have good deals in order to set yourself up for success.

Work smarter not harder!

Build wealth quickly and easily by getting on the wholesalers’ “A” list! In doing so, it creates an easy way to get the cream of the crop before the properties post on the websites. Stop wasting your time looking at 30 to 40 properties a day by using Investor Lift. In addition to finding properties, it is important to find the right financing as well. Here at The Cash Flow Company we can answer your questions and find the right product for you. Reach out to us to find out more about financing flips, BRRRR, bridge loans, and gap loans. We would be glad to walk through any deal that you have and see how we can make it even better.

Watch our most recent video to find out more about how to Get Wholesalers Emailing YOU! 

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How to Get 100% Financing on Real Estate in ANY Market

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Sounds like a gimmick, but it’s true – here’s how to get full financing on any real estate deal.

There’s a trick large developers use to finance their real estate projects all the way to 100%. Does the same strategy work on your real estate investing scale?

Sounds like a pipe dream, especially in a market where the Fed keeps tightening lenders’ funds.

Let’s go over how it’s actually possible. We’ll call the funding you need for your project your “money bucket.” We’ll show you how to fill that bucket with different funding sources just like they do on the biggest development projects.

The Money Buckets: How Financing Real Estate Works

Your money bucket is empty at the start of a project. Its size is determined by the costs. For successful investments, you need to fill up the bucket with money.

The financial term for filling the bucket is a “capital stack.” It’s when an investor stacks one loan on top of another until an entire project is funded to 100%. Let’s go over how to put your capital stack, or “money bucket” together.

How Big Is Your Bucket?

If we’re just starting a deal, then our money bucket is empty. How big is it? AKA, what costs do we need to cover?

There are four main costs in real estate investing:

  • Purchase price
  • Rehab
  • Carry costs
  • Interest payments and other miscellaneous

Financing Real Estate to Fill Your Money Bucket 

We need to see if we can fill our money bucket, so we start looking for other buckets of money to throw in. We begin with the loan from our primary lender.

In a typical market, a real estate investment lender (like hard money) would pay 75% of the ARV of the property. That 75% would cover 90% of the purchase price and 100% of the rehab costs.

With tightened money, however, the underwriting guidelines for this bucket have changed. Almost universally, you’ll see these same lenders only offering 70% of the ARV. This adds up to 80% on the purchase and 100% on the rehab. You’re getting less financing for real estate projects, so you’ll have to bring in more money out-of-pocket for this deal.

That’s not an insignificant amount of money, either. Down payments now, in early 2023, are sometimes double what they were six months ago.

Our money bucket might be around 80-90% full with our lender’s loan. But we have to get it filled to 100% somehow. Where do the funds come from so you can keep buying good properties when deals are getting great?

4 Money Buckets to Use When Financing Real Estate

There are 4 other buckets of money you might be able to dip into to complete your capital stack:

  1. Secured lines of credit
  2. Secured gap funding
  3. Unsecured lines of credit
  4. OPM

Word of Warning Financing Real Estate with Credit

Before we get into these 4 extra money buckets, we want to make one thing clear about financing: You have to pay credit sources back.

Treat your lines of credit like lenders that need to be paid in full at the end of your project. Treat your business like a business. What’s left over after you pay off your credit is the profit you get to keep for your project.

If you turn the financing for real estate into a personal piggy bank, these sources will only drain your bucket instead of filling it. Poor credit management will tank your investment business.

1. Secured Lines of Credit

In volatile markets, the most common starting place to complete your capital stack is secured lines of credit.

The most common secured line of credit is a HELOC. You can take out a HELOC on your personal home, or any of your investment properties.

A HELOC just takes good credit, good income, and owning a piece of real estate. If you meet these criteria, then you can take money from this credit line and drop it into the money bucket for your current project.

2. Secured Gap Funding

Another important bucket for financing real estate is secured gap funding from a private money lender (like The Cash Flow Company).

This is a good option if you:

  • Don’t have the income to qualify for a loan.
  • Don’t have the equity to qualify for a HELOC.
  • But do have a real estate property.

This funding can help cover the down payment, carry costs, or part of the rehab using another property to secure the loan.

3. Unsecured Lines of Credit

The appeal of a 0% line of credit is:

  • You can use it for a down payment or rehab costs.
  • Other types of credit can have rates up to 19-29%. Zero percent is a major advantage.
  • The right credit cards can be a great stepping stone to get your first few deals done so you can move on to better forms of financing.

The danger of unsecured credit is:

  • The temptation to use it outside of business expenses.
  • If you don’t pay them off at the end of the project, then you get into trouble fast.

4. Real OPM

Other People’s Money is one of the most powerful ways to boost your real estate career.

OPM is money from ordinary people. The biggest real estate investors always have multiple regular people who loan them money for projects. Borrowing in this way is the fastest, easiest, and cheapest way to fill your money bucket.

It may seem impossible to find someone who wants to give you money. But the reality is: people who have cash aren’t getting good returns from banks; they’ll get higher secured returns lending to you.

Fill Your Money Bucket with 100% Financing on Real Estate Deals

The market has changed. Your primary loan will leave your money bucket emptier. It takes a little more creativity to fill it up.

The bigger the pool of money you have in any market, the more options you’ll have. Financing makes your real estate investing easier and more profitable.

Want to build your capital stack? We have a free download about money buckets.

If you have any questions about a deal, getting funding, or setting up OPM, email us at Info@TheCashFlowCompany.com.

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