Tag Archive for: interest rates

Will Interest Rates Go Down in 2024?

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If you’re in the real estate investing game, you’re probably wondering, “Will interest rates go down in 2024?” The 2023 market has been tough, but good news is on the way!

2023 has been an interesting year for investors as we’ve faced exceptionally high interest rates. At times, this has been stressful, but how can we use this information to help us prepare for the next year of opportunities?

Currently, rates are between 7% to a little over 7% for people looking to buy an owner-occupied property with a 30-year fixed mortgage.

The Fed has nearly reached their max which means lower rates are coming! And not just on housing; credit cards, student loans, etc. will all start seeing lower interest rates.

This is great news, but how does it impact you in real terms?

How Interest Rates Effect Real Estate Investing

As interest rates go down, you’ll have the opportunity to increase your cash flow just by refinancing or being smart with your purchases. 

The lower the interest rate, the more money goes into your own pocket in each deal.

But how does the math work?

If you’re looking at your finances, and you can afford $2,000/month in payments, here’s the breakdown:

  • In total, you can afford $2,000 a month in payments 
  • Subtract $100 for taxes
  • Subtract $100 for insurance
  • TOTAL: Investor can afford about $1,800/month that goes towards the mortgage

Now, let’s run that through different interest rates. 

Even though you can afford only $1,800/month towards a mortgage, the interest rate significantly changes the loan amount. This in turn changes the types of property you can pursue:

Even a change from a 7% to a 6% interest rate results in an 11% increase in the price of a home you can afford. 

As interest rates go down, more people can access what’s on the market. 

If you’re in real estate investing, having homes ready to flip in 2024 to meet that pent up demand as interest rates drop can make a huge difference for you.

Make a Game Plan

Even though rates are still high, based on these evidence-based real estate market predictions, you should start buying and getting properties ready to flip by the end of this year.

Real estate markets move quickly, so you’ll want to be ready for those falling rates when the market demand spikes. 

If you’re wondering why should I buy when interest rates are so high? here’s the deal: If you buy right now when interest rates are high, you can cash flow them as rates fall. This makes your properties more valuable when you flip them, and cash flow is going to increase.

 

Read the full article here.

Watch the full video here:

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How to Create Generational Wealth from High Interest Rates

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Fun fact: What the Fed is doing now will create more opportunities for generational wealth and income in the very near future.

Interest rates are currently high. This can create a discouraging market for new investors, but it’s important to look at the patterns of those interest rates so we can project where they’ll be over the next few years.

Real estate investing is one of the most accessible ways to create generational wealth. It takes two things to be successful:

  1. Leverage: knowing how to use other people’s money (bank loans, etc.) to turn a profit
  2. Math: know how the numbers work so you can use them to your advantage.

Even though interest rates are currently high, if we understand how to use leverage and math to our benefit, we’ll be creating wealth in no time.

It Comes Down to Numbers (and Interest Rates)

We’re all in real estate investing to create income, wealth, a better life. Interest rates are a significant aspect of that. We need to understand exactly how to leverage high interest rates to help you create the wealth you’re here for.

Here’s the good news: interest rates will likely go down soon.

If you buy a property when rates are high, you can refinance when rates drop to increase both your income and equity. 

For Example…

Let’s say you have a 4-plex that you’re going to purchase with the following figures:

  • 4-Plex (Initial Numbers)
    • Loan Amount: $500,000 
    • Interest Rate: 8.5% 
    • Monthly Payments: $3,800

As we said earlier, rates are likely to decrease soon. We’re heading into a big election year which tends to drop rates, and the Fed is hitting their apex. So what happens when the rates decrease and we look at refinancing?

  • 4-Plex (Refinanced!)
    • Loan Amount: $500,000 
    • Interest Rate: 7.5%
    • Monthly Payments: $3,496 (+ $360 income/month)

Even if interest rates only drop by 1%, you still end up with over $4,000/year more in your pocket.

Similarly, because of the  shifting value, that initial $500,000 now has a value of $550,000 (10% higher than before).

If all you do is refinance when rates drop by 1%, you can easily build income and equity. Imagine the strides you can take when interest rates drop even further.

This same strategy applies to portfolio/multi-family homes. When rates drop, you can look into refinancing any investment property to explore these possibilities and take advantage of this opportunity to build generational wealth.

Falling Interest Rates Generate Generational Wealth… If You’re Prepared.

If you buy when interest rates are high, you’re going to increase your income as rates fall. You’re also going to increase your net worth even if you don’t sell them. It’s a great way to create the income you need to begin a sustainable investment cycle. 

Also, this strategy also naturally lets you diversify lines of credit, cross liens, etc. that allow you to increase your portfolio.

Time to Buy

Here’s the bottom line: rates are going to fall, and if you buy now, you’ll build income without needing to invest in additional investments. 

This is the time to be buying investment properties.

We’re moving into a market where there’s going to be a lot of demand for properties. As rates fall, more people will be looking to buy. Get ahead of that rush, and use the dropping rates to put money in your pocket.

Resources

It’s important to keep your finger on the pulse as a real estate investor — especially if you’re serious about generating wealth. We have a weekly Investor Mortgage Report that keeps you updated on DSCRs, bank rates, private money, and market trends so you can be an informed investor.

Things change rapidly. Rates may rise through the end of 2023, but the moment they start to fall, you want to be prepared.

If you’d like to be put on the Investor Report email list, or if you have questions about how to get started as an investor, reach out to us at Mike@TheCashFlowCompany.com.

You can also check out our YouTube channel for more investment tips and tricks.

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Real Estate Predictions: Looking Back to Look Forward

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What have we seen in 2023 and how does it inform our real estate predictions for 2024?

When you’ve been in the real estate investing industry for as long as we have, you start noticing trends. 

2023 has been an interesting year for investors as we’ve faced exceptionally high interest rates. At times, this has been stressful, but how can we use this information to help us prepare for the next year of opportunities?

What Have We Seen in 2023?

High interest rates! 

Currently, rates are between 7% to a little over 7% for people looking to buy an owner-occupied property with a 30-year fixed mortgage.

According to Realtor.com, we’re also facing a shortage of homes for sale. Although there is high interest in buying single-family homes, there’s a shortage in the market. 

Affordability has also been a challenge for buyers and investors alike. All buyers need to afford and qualify for the mortgage in order to move forward.

All in all, it’s been a tough market for real estate. Smart investing has been more necessary than ever before.

Predicting 2024: A Shifting Market

Demand

Moving into 2024, we’re going to see even more repercussions from the pent up demand from 2023. People want to buy homes, and the market is going to get competitive. 

Affordability Concerns

So many young adults are living with friends or family out of necessity. Multi-family households are increasingly common in response to affordability concerns.

As these adults get older, the desire to live in their own space will only get stronger.

Election Year Impact

Even though the Fed isn’t tied to either Democrats or Republicans, there’s always pressure on them to make sure the American people feel good about the housing market. 

Pay attention to how interest rates respond to election pressures.

Dropping Rates

The Fed has nearly reached their max which means lower rates are coming! And not just on housing; credit cards, student loans, etc. will all start seeing lower interest rates. 

Although it’s tricky to pinpoint exactly how low the rates will drop, our real estate market predictions are confident that lower rates are coming.

 

Read the full article here.

Watch the full video here:

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2024 Real Estate Market Predictions

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What have we seen in 2023 and how does it inform our real estate market predictions for 2024?

When you’ve been in the real estate investing industry for as long as we have, you start noticing trends. 

2023 has been an interesting year for investors as we’ve faced exceptionally high interest rates. At times, this has been stressful, but how can we use this information to help us prepare for the next year of opportunities?

What Have We Seen in 2023?

High interest rates! 

Currently, rates are between 7% to a little over 7% for people looking to buy an owner-occupied property with a 30-year fixed mortgage.

According to Realtor.com, we’re also facing a shortage of homes for sale. Although there is high interest in buying single-family homes, there’s a shortage in the market. 

Affordability has also been a challenge for buyers and investors alike. All buyers need to afford and qualify for the mortgage in order to move forward.

All in all, it’s been a tough market for real estate. Smart investing has been more necessary than ever before.

2024: A Shifting Market

Demand

Moving into 2024, we’re going to see even more repercussions from the pent up demand from 2023. People want to buy homes, and the market is going to get competitive. 

Affordability Concerns

So many young adults are living with friends or family out of necessity. Multi-family households are increasingly common in response to affordability concerns.

As these adults get older, the desire to live in their own space will only get stronger.

Election Year Impact

Even though the Fed isn’t tied to either Democrats or Republicans, there’s always pressure on them to make sure the American people feel good about the housing market. 

Pay attention to how interest rates respond to election pressures.

Dropping Rates

The Fed has nearly reached their max which means lower rates are coming! And not just on housing; credit cards, student loans, etc. will all start seeing lower interest rates. 

Although it’s tricky to pinpoint exactly how low the rates will drop, our real estate market predictions are confident that lower rates are coming.

The Economics Behind the 2024 Market

As interest rates go down, you’ll have the opportunity to increase your cash flow just by refinancing or being smart with your purchases. 

The lower the interest rate, the more money goes into your own pocket in each deal.

But how does the math work?

If you’re looking at your finances, and you think you can afford approximately $2,000 for a monthly mortgage payment, here’s the breakdown:

  • In total, you can afford $2,000 a month in payments 
  • Subtract $100 for taxes
  • Subtract $100 for insurance
  • TOTAL: Investor can afford about $1,800/month that goes towards the mortgage

Now, let’s run that through different interest rates. 

Even though you can afford only $1,800/month towards a mortgage, the interest rate significantly changes the loan amount which in turn changes the types of property you can pursue:

Even a change from a 7% to a 6% interest rate results in an 11% increase in the price of a home you can afford. 

As interest rates go down, more people can access what’s on the market. 

If you’re in real estate investing, having homes ready to flip in 2024 to meet that pent up demand as interest rates drop can make a huge difference for you.

Make a Game Plan

Even though rates are still high, based on these evidence-based real estate market predictions, you should start buying and getting properties ready to flip by the end of this year.

Real estate markets move quickly, so you’ll want to be ready for those falling rates when the market demand spikes. 

If you’re wondering why should I buy when interest rates are so high? here’s the deal: If you buy right now when interest rates are high, you can cash flow them as rates fall. This makes your properties more valuable when you flip them, and cash flow is going to increase.

We’re Here to Help

As a real estate investor, you’ve got to keep up on interest rates. If you need somewhere to start, you can contact us to sign up for our weekly mortgage report. It comes to your inbox and tells you what’s happening in the mortgage industry that impacts you as an investor.

We’re also happy to answer any questions you have about preparing for this upcoming year. For questions or to sign up for our mortgage report, email us at Info@TheCashflowCompany.com.

Remember, prepare now to keep the money train rolling in 2024!

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What Should New Investors Know About Loan Payments?

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New investors in the real estate game often struggle with the details of their first loan payments.

Real estate, like many fields, has its own vocabulary and rules. This can make it extra challenging for people who are trying to enter the real estate investing world.

So many people come to us confused, asking for guidance as they’re getting started.

Real estate is all about leverage. Understanding the lingo and how to calculate the most common rates will help you be money-wise and confident in your investment journey.

This is especially true (and important!) when it comes to paying off your loans.

What Should You Know About “Payments”

When do payments start? How much do they cost?

If you’re new to real estate investing, it’s a good idea to ask a lot of questions about payments so you know what to have in your budget before you begin.

A few terms to look out for:

“Arrears”

Product interest always shows up after the fact (in “arrears”). Basically, your July 1st payment is going to pay all of the interest for June.

Interest accumulates over the course of a month. Then the bill shows up after.

This how all mortgages are set up. So when you’re trying to figure out your payments and when they’re due, always look ahead 30-45 days after you close for the first payment.

Payments are typically due on the 1st or 15th of the month. Check with your specific lender to make sure you know your pay period.

“Simple Interest”

Above, we showed you how to calculate your monthly interest rate based on the simple interest rate of your loan.

When you start paying off your loan, you’ll see a big accumulation of interest. If you’ve taken time to calculate your monthly rate, this shouldn’t be a surprise to you. You can multiply that monthly rate by however long your project took to find your overall interest cost.

You need money to make money in real estate, but you want to know the cost ahead of time as closely as possible.

Take time to figure out these numbers up front so you don’t have any surprises.

 

Read the full article here.

Watch the full video here:

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Real Estate Lingo Explained: Understanding Your Lender

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Learn the meaning behind your lender’s real estate lingo so you always know what’s going on.

Real estate, like many fields, has its own vocabulary. This can make it extra challenging for people who are trying to enter the real estate investing world.

So many people come to us confused. Sometimes they don’t even know what to ask because the language is so unfamiliar.

Real estate is all about leverage. Understanding the lingo and how to calculate the most common rates will help you be money-wise and confident in your investment journey.

1. “Points”

When your lender mentions that something is “one point” or maybe “one and half points,” they’re talking about out-of-pocket cost. So what is a point in real estate investing?

“Points” are a percentage of the loan that the lender is going to charge you.

Hypothetically, let’s say your lender says your loan is a “two point” cost to you. That means they’re going to charge you 2% of the total loan amount.

Real Estate Lingo Explained: Understanding Your Lender

  • Total Loan Amount: $200,000
  • Points: 2 (meaning 2% or 0.02)
  • Calculation: 200,000 x 0.02 = $4,000
  • Out-of-pocket Cost for the Loan: $4,000

The lower the points, the lower the cost; the higher the points, the higher the cost. Also, remember that the points are calculated off the loan amount, not the purchase price.

Always remember to look out for fees. Points are often only part of the upfront charges from your lender.

Make sure you ask ahead of time about additional fees, appraisals, underwriting, escrows, and escrow draws.

2. “Rate”

Lenders talking about interest rates can get very confusing very quickly.

The common real estate lingo of saying you have a “10% rate” does not mean you have a flat 10% interest regardless of how long you keep the money out.

“Rate” refers to the simple interest rate over a year, NOT your monthly interest rate.

To find your monthly interest rate, divide by 12.

Real Estate Lingo Explained: Understanding Your Lender

  • Total Loan Amount: $200,000
  • Rate: 10%
  • Calculation: (200,000 x 0.10) / 12 = 1,667
  • Monthly Interest Rate: $1,667

Essentially, if you have your loan for six months (half a year) and you have a 10% rate, you’ll end up paying 5%.

3. “Payments”

When do payments start? How much do they cost?

If you’re new to real estate investing, it’s a good idea to ask a lot of questions about payments so you know what to have in your budget before you begin.

A few terms to look out for:

“Arrears”

Product interest always shows up after the fact (in “arrears”). Basically, your July 1st payment is going to pay all of the interest for June.

Interest accumulates over the course of a month. Then the bill shows up after.

This how all mortgages are set up. So when you’re trying to figure out your payments and when they’re due, always look ahead 30-45 days after you close for the first payment.

Payments are typically due on the 1st or 15th of the month. Check with your specific lender to make sure you know your pay period.

“Simple Interest”

Above, we showed you how to calculate your monthly interest rate based on the simple interest rate of your loan.

When you start paying off your loan, you’ll see a big accumulation of interest. If you’ve taken time to calculate your monthly rate, this shouldn’t be a surprise to you. You can multiply that monthly rate by however long your project took to find your overall interest cost.

Real Estate Lingo Explained: Understanding Your Lender

You need money to make money in real estate, but you want to know the cost ahead of time as closely as possible.

Take time to figure out these numbers up front so you don’t have any surprises.

4. “Prepayments” or “Prepay Penalties”

You’ll likely see real estate lenders use lingo like “prepays” on products like DSCR or non-QM loans.

“Prepayment penalties” are fees some lenders charge to guarantee a loan is out a certain amount of time.

Essentially, if you pay off a loan during the prepay period, the lender will charge an added fee to ensure they’re making a profit.

Prepays come in all shapes and sizes but often show up in either a 3- or 5-year period. We recommend checking out this previous post to learn more about the intricacies of prepay penalties.

In terms of types of penalties, there are straight and declining prepay options:

  • “Straight Prepay” means that you will pay an agreed-upon percentage if you pay of the loan anytime during the prepay period. For example, if you have a straight 5-year 5% prepay penalty, you will be charged 5% whether you pay it off after 1 year or 4 years.
  • A “Declining Prepay” might start with a higher percentage, but the penalty gets smaller the longer you keep the loan until it disappears altogether. The first year, the penalty might be 5%, 4% the next, etc.

It’s always a good idea to check the prepayment penalties. Sometimes you can buy them down. But you should always make sure that higher fee is actually worth it. Often the trade-off comes in the form of a higher interest rate.

Don’t fall into a trap of paying a much higher interest rate for a slightly lower prepay penalty.

Using Real Estate Lingo With Your Lender

When you’re talking to lenders, knowing the real estate lingo can help you feel confident about your deals.

When you know what points are and how to calculate interest rates, you gain leverage with the ability to negotiate professionally.

The more you understand, the better pricing and terms you’ll be able to find.

Here at The Cash Flow Company, we have a free Loan Cost Optimizer tool. This, in addition to the formulas you learned above, can help you in your real estate journey.

Knowledge is leverage, and leverage is the key to unlocking your real estate investing potential.

Reach out to us at Info@TheCashFlowCompany.com with your questions.

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How to Get Better DSCR Loan Interest Rates

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How our client raised their credit score to lower their DSCR loan interest rates by 30%.

A client came to us who was quoted by another company for a DSCR loan. They offered him:

  • 9% interest rate
  • 3 origination points
  • On a cash-out, 70% refinance of a remodeled, rented property.

Doesn’t that seem high?

His main hurdle was that his credit score had dipped during the remodel of this project.

He started with a score of 720 and a credit limit of $35,000. But to get the property rent-ready, he used $30,000 of this credit. This caused high credit usage – which dragged his credit score down to a 679.

This plummet in score cost him a couple of points in interest and origination, resulting in a much more costly refinance than he was prepared for.

Raising Your Credit Score to Lower DSCR Loan Interest Rates

To get his score back up, we helped him with a usage loan.

This means:

  • We gave him a private loan.
  • Which he used to pay off his credit cards.
  • Paying off the credit cards lowered his usage.
  • Then the lower usage raised his credit score.

When usage is the reason for your low credit score, a small short-term private loan like this can be a solution.

In our client’s case, this higher credit score refreshed the refinance DSCR. They quoted him to a 7.625% interest rate, with a half-point origination, on a 30-year fixed loan.

Read the full article here.

Watch the video here:

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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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DSCR Loan Interest Rates: Explained

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What can you expect to pay on your DSCR loan interest rates? Here’s what it is (and why it matters).

You can still find a DSCR product for ratio 1 or negative cash flow properties.

DSCR loans have certain ratio thresholds. When you break these thresholds, your rate gets better. And better rates mean lower monthly payments. Which means… more cash flow!

Let’s go over some of these thresholds for DSCR loan interest rates.

Loans for a 1.25 DSCR

Say we have a property with $1,590 worth of monthly expenses, which we can charge a $2,000 rent on. Divide the rent by the expenses, and we get a DSCR of about 1.26.

One way of thinking about this is that the property is profiting 25% over the expenses. That’s good for the underwriter (and it’s good for you), so you’ll get a lower interest rate.

1.25 is a major threshold for DSCR lenders. In the current market at the beginning of 2022, the rate for a 1.25 DSCR is around 7.25%.

DSCR Loan Interest Rates for a 1 or Lower Ratio

If a property has negative cash flow, say 0.94, then the average interest rate would be 9+% on a DSCR loan.

For a breakeven ratio of 1, the typical interest rate right now would be more like 7.75%.

The Difference in DSCR Loan Interest Rates

Anytime you can lower the rate, that’s cash flow that goes into your pocket.

The difference between a negative DSCR and a 1.25 is about $220/month on your payment. Over the course of a year, that adds up to $2,600. If you have 5 rental properties, that’s $13,000/year. At 10 rental properties, it’s a $26,000 difference!

If real estate investing is going to be your career or retirement plan, buying properties that you know will cash flow is vital. A couple hundred bucks a month can snowball into hundreds of thousands over time.

This is why it’s important to know how to calculate DSCR quickly when you’re looking at buying a new property. Never put a contract on a rental property when you’re not sure if the cash flow fits your goals.

Read the full article here.

Watch the video here:

https://youtu.be/o5js06y–qM

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How Interest Rates Impact Affordability (and Your Cash Flow!)

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Buying low and selling high all comes down to interest rates’ impact on affordability. Here’s what that means.

Building generational wealth with real estate depends on leveraging buyer affordability.

Interest rates and prices work like a seesaw. When interest rates go up, affordability and buying power go down, so prices go down. When interest rates come down, buyers can afford higher payments, so prices re-inflate.

So, where will we be in 2023, and how will prices play out? Interest rates are projected to be 8% – the highest they’ve been in years. Let’s look at an example of this seesaw effect.

Interest Rates’ Impact on Affordability

We’ll use 8% as an example, since that’s the projected average for next year. (But this math will work whether your interest rate is 7%, 10%, etc.).

Let’s say our buyer can afford a $250,000 house with an 8% interest rate. We can calculate that their monthly payments would be $1,834.

That monthly payment amount is important. We tend to think of a buyer’s budget as the purchase price they can afford. But really, a buyer’s budget is the monthly payment they can afford.

Even if a buyer is willing to pay a higher purchase price with high interest rates, their lender may stop them. A buyer qualifies for a loan based on the affordability of the monthly payment.

For an interest rate of 8% in 2023, buying power looks like this:

You can plug any numbers you want into this formula to figure out affordability.

For example, let’s say interest rates are 9%. The affordability doesn’t change – our buyer could still only swing a $1,834/month payment. Therefore, this homebuyer’s buying power goes down to $228,000.

Cash Flow with High Interest Rates

As you can see, the higher the interest rate, the lower the price. This is why you should buy while interest rates are high. 

Prices will be lower than they have in a while. The challenge is that high interest rates make generating cash flow on properties more difficult. However, even if your rental property only breaks even every month – that’s fine for right now. 

A little temporary cash flow loss is worth it when you’re on the path to generational wealth. When interest rates come back down, cash flow will accelerate through the roof.

Let’s flash forward our 2023 example a few years in the future.

Building Equity when Interest Rates Impact Affordability

Say we bought that $250k house at 8% in 2023. Three or four years later, the market has stabilized. More money is flowing in the economy and in real estate, driving interest rates back down. Inflation has calmed down to normal levels. Now, let’s say the average interest rate is down to 5%.

What’s the affordability of that 5% rate with our buyer who could qualify for a $1,834/month payment? Now, they can qualify for a $341,000 house.

That means the house you bought for $250k in 2023 could be worth $341k by 2027. This one property could create $91,000 in equity.

Of course, this isn’t a guaranteed timeline or number. But we know it’s close. Real estate operates with the seesaw of rates and prices, affordability and payments.

Refinancing Once Rates Fall

So you have $91,000 in extra equity. But here’s where the cash flow starts to kick in: You can now refinance the property from an 8% rate to 5%.

Your original loan will be down to about $245,000 after 4 years of $1,834 monthly payments. Refinancing $245k at the new 5% interest rate makes for monthly payments of $1,315.

This refinance would increase your monthly cash flow by $519.

Multiply that by 12 months in a year. By 10 more properties… And you’re on the track to generational wealth.

Read the full article here.

Watch the video here:

https://youtu.be/I5jRjQvHJhk

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