Tag Archive for: how to make money

How to Maximize Your Leverage in Real Estate Investing

Categories:

Text: "How to Maximize Leverage"

Leverage is a powerful investing tool. How does it look to maximize your leverage?

A real estate investor’s goal is to maximize leverage – get the best, cheapest, easiest leverage available.

This means going an extra step:

  • Having great credit.
  • Having great income.
  • Coming to the lender prepared.
  • Having investment experience.

In a previous blog post, we broke down the difference using leverage makes for your income and net worth.

Now, let’s say you’ve done everything right, and you’ve earned yourself better leverage from your lender.

What happens when the same scenario is taken to the next level with top-tier leverage?

80% Leverage

To start, we’ll say you meet the bank’s criteria, and they agree to lend you 80% (or $80,000) on each $100,000 house you purchase.

Income with Maximized Leverage

Your down payment per property is now only $20,000, so you can afford 5 properties. But since you borrowed more money, the mortgage payment is higher, and the net rent goes down to $750/month.

Five properties with an income of $700 per month is $3,500 per month. This works out to be $42,000 per year. Annually, that’s $6,000 more than using a 75% loan, and $27,600 more than using no leverage at all.

Equity with Maximized Leverage

Lastly, let’s look at the wealth side with maxed-out leverage.

Thirty years adds $750,000 to the value of the 5 homes. All that money is added to your net worth.

As a result of the $750k of equity plus the $500k of the original purchase of the homes, your net worth increases by $1,250,000.

Once your mortgage is paid off and you own all 5 properties free and clear, you earn the full amount of rent per month. This is $1,200 × 5 properties, or $6,000 per month!

Using good leverage has the potential to make you literal millions of dollars over buying investment properties in cash.

Read the full article here.

Watch the video here:

by

How to Launch Your Retirement Through Private Lending

Categories:

How to Launch Your Retirement Through Private Lending

How to Launch Your Retirement Through Private Lending

Launch your retirement!

The most common ways to save for retirement are the stock market, 401Ks, and other retirement savings accounts. They’re common journeys most people take when they start putting money away for their future.

But did you know there’s another frontier to explore when it comes to preparing for retirement?

Although it’s a frontier that’s been around for centuries, and it’s a frontier that’s helped many, it’s not exactly a frontier people think to explore.

But this frontier can lead to lucrative cash flow and a safe, comfortable, and happy future.

We’re talking about private lending.

https://youtu.be/3shyEuw1zSI

Private lending can launch your retirement savings into a whole new universe. Compared to the stock market, which is volatile, and retirement savings accounts, which are questionable, private lending is consistent, easy, and safe. And, most importantly, profitable.

What is private lending?

Simply put, you become a bank for someone who needs cash. And, in the real estate world, that someone is a fix and flipper, rental owner, or another property investor.

These real estate investors can’t always rely on a traditional bank for funding.  Either because they can’t meet a bank’s strict qualifications, or because they need to buy a property super fast…and banks don’t close deals super fast.

So, they turn to private lenders. Private lenders, like you, lend them the money they need and charge them interest for it.

The amount of interest you charge is up to you. Most private lenders make between 5% and 12%. You can’t make that kind of interest by letting your money sit in a bank. And you can’t know for sure you’ll make it through the stock market.

So, how do you become a private lender? Well, there are a couple of ways to get going.

The easiest way is through companies like ours. We connect private lenders with real estate investors, and help with all the paperwork and other steps that secure your money.

Or, if you’d rather explore the private lending frontier on your own, then you can work directly with real estate investors. This is best known in the business as OPM (Other People’s Money). OPM puts you directly in the pilot’s seat, and you get to decide your path…and the risks that come with it.

Private lending is definitely a worthwhile adventure! If you’re ready to learn more about it and launch your retirement, then our team is always here to help.

by

How to Invest the Ancient Way: Private Lending

Categories:

How to Make Money in Real Estate: Private Lending is Ancient

How to Invest the Ancient Way: Private Lending

Since the beginning of time, people have needed money, and they’ve always needed to borrow it from someone.

Why not you?

You see, when it comes to making money in real estate, most people assume they have to fix and flip or rent properties. But there are other ways that don’t involve picking up a hammer.

And one of those ways is private lending.

https://youtu.be/N4IYdAods3w

What is private lending?

Private lending is exactly what it sounds like: you lend money to someone who needs it.

In the real estate world that means you lend it to someone who’s looking to fix up a property and either flip it or rent it.

It’s just like in the olden days when a person needed a loan and got it from a bank, a business tycoon, or a neighbor. Or just about anyone else who had money to lend.

So, how do you make money in private lending? Well, it’s fairly simple. You:

  • Find someone you trust
  • Create a secured, private note
  • Collect interest payments.

Now, you might be thinking, “What is a private note?”

It’s basically an IOU.

Essentially, a private note is an agreement between you and your borrower, and it outlines things like:

  • Loan amount
  • Interest rate
  • How long you’ll let your borrower use your money (aka, the term)
  • And the date you expect them to pay you back in full.

And if a borrower can’t pay you back, then fear not. Your money is secured by the property. So, as long as you do your homework and make sure it’s a worthwhile investment, then your money is safe.

And if you’d rather someone else do the homework, including prepping the private note and overseeing the life of the loan, then you can use a licensed and experienced company like ours to handle it. All you have to do is kick back, relax, and watch your interest payments arrive in your bank account.

Ready to talk about investing your money in real estate without picking up a hammer? Great! Our team is always here to chat.

Happy investing!

by

Private Loans: Invest in Real Estate without Flipping or Renting

Categories:

Become a Private Lender: Invest in Real Estate without Flipping or Renting

Private Loans: Invest in Real Estate without Flipping or Renting

Do you know about private loans?

And did you know you can invest in real estate without resorting to fixing and flipping or fixing and renting?

It’s true. Everyone can put their money to work, even if they don’t want to put their muscles to work. If you want, you can skip the hammers, ladders, and paint. There’s no need to groan over dust-covered floors, clothes, and, well, everything. And forget about stressing over contractors and delayed projects. Because you can invest in real estate without ever stepping foot inside a property.

https://youtu.be/BnIJ81doM-0

How is this possible? Well, it’s actually pretty easy.

Rather than rolling up your sleeves and searching, buying, fixing, and selling or renting properties, you can become a private lender.

What does being a private lender mean?

Simply put, you become a bank for fix and flippers or rental owners. And you get to charge them interest for using your money.

Interest rates vary in private lending, but one thing is for sure: you’ll earn A LOT more interest in real estate than in your bank account.

Now, there are a couple of ways to become a private lender.

#1: A Helping Hand

So, the easiest way to get started is through companies like our sister company, The Note Shop. Through our licensed company, we connect private lenders with real estate investors.

And when you use a company like ours, you don’t need to:

  • Search for real estate investors who need funding.
  • Interview them and review their portfolio to determine how much you can trust them with your money.
  • Analyze properties to make sure they’re worth the investment.
  • Prepare loan documents, like deeds of trust and mortgages.
  • Handle escrow draws.
  • Oversee the life of the loan, including all payments, extensions, and modifications.

Yes, you can skip ALL of that and let our team do the work for you. That means we handle the entire list above.

Not you.

#2: DIY

Or, if you’re experienced and confident in private lending, you can work directly with real estate investors. This is best known in the business as OPM (Other People’s Money).

OPM puts you directly in the driver’s seat. Because you get to decide how big of a risk you’d like to take with your money, and that risk is based on trust.

Like, do you trust them to:

  • Pay you back?
  • Buy, fix, and flip a property within your agreed upon timeline?
  • Sell or rent a property for what they claim it’s worth after they repair it?

In addition to trust, you also need to tackle the entire to-do list we mentioned above. This is completely doable! But, again, it comes down to how much risk and work you want to take on.

So, there you have it! You can invest in real estate without ever picking up a hammer.

And, believe us when we say, private lending is easy, lucrative, and EASY!

Ready to talk about investing your money in real estate without breaking a sweat? Great! Because our team is always here to chat.

Happy investing!

by

What Is Cash Flow and Why You Need It

Categories:

What is cash flow

What is cash flow and why do you need it?

Well, let’s face it, when you have more money in your wallet, life’s a whole lot easier. Because you have MORE money in your wallet!

When you make passive income every month, you can:

  • Take your dream big trip to the Bahamas, Italy, or anywhere else in the world.
  • Buy the dream car you’ve always hoped to own.
  • Move to a better, safer neighborhood.
  • Or simply live more comfortably.

But before we go on, let’s answer the very common question, “What is cash flow? And how can I generate it?”

First of all, cash flow is exactly what it sounds like: cash flowing into your pocket. Just think about things like income, profits, and any other term you can think of that means adding money to your bank account every month.

There are many ways to produce cash flow, and there’s really no right or wrong way to produce it. Because everyone has a strategy that works best for them.

So, what are some of those strategies?

Well, you can:

  • Invest in value-add properties, like fix and flips and rentals.
  • Become a private lender to real estate investors.
  • Improve your credit score to make extra money each month. Because better credit scores mean lower interest rates. And lower interest rates mean cheaper bills. And cheaper bills mean less money out, and more money in.

As you can see, there are countless ways to approach cash flow. You just need to choose the best approach for you.

Ready to chat? Great. Our team is here to set you on a path that helps you make the kind of money you need to live the life you want.

Happy investing!

by