Tag Archive for: money bucket

How HELOCs Work in Real Estate Investing

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Today we are going to discuss how HELOCs work in real estate investing. Real estate moves fast. Therefore, having cash ready is very important. A HELOC gives you money on demand. In other words, it helps you act quickly when a great deal comes along.

What is a HELOC?

A HELOC is a Home Equity Line of Credit. That means you borrow against the value you have built in your home. For example, think of it as a credit card for your house. Also, it usually has lower interest than a credit card. Thus, you pay less money in the long run.

Why Real Estate Investors Need a HELOC

First, a HELOC gives you fast access to cash. Next, it helps you make a down payment, pay for repairs, and cover other costs. For example, you might use a HELOC to fix a home quickly so that you can sell it fast. Moreover, this tool allows you to keep your projects moving without delay. In short, HELOCs make it easier to grab good deals when they come along.

How to Use a HELOC in Real Estate Investing

You can use a HELOC in many ways. Here are some examples:

  • Down Payments: First, use it to cover your down payment.
  • Earnest Money: Next, secure your offer with earnest money.
  • Repairs & Fixes: Then, pay for repairs or upgrades.
  • Contractor Payments: Also, cover contractor bills as needed.
  • Interest Payments: Finally, pay the interest on what you borrow only when you use the funds.

Each step shows how a HELOC keeps you ready to act.

How HELOCs Work

Typically, a HELOC acts as a second mortgage. For example, suppose you own a rental property worth $200,000. In many cases, banks allow a combined loan-to-value of 75%. Therefore, you could borrow up to $150,000 in total. Now, if your first mortgage is $100,000, then you have about $50,000 left on your HELOC. Moreover, you only pay interest on the money you use. Then, once you repay it, the credit is available again.

Who Are Good Lenders for HELOCs?

For real estate investing, small lenders often work best. For instance:

  • Local Credit Unions: They usually offer flexible terms.
  • Regional Banks: They are more likely to work with real estate investors.
  • Smaller Banks: They tend to be more open to lending against properties.

However, big banks sometimes have strict rules. Thus, local options might be better.

Why We Love HELOCs

HELOCs are a favorite tool for many investors. First, they give you money on demand. Next, they cost less than using a credit card. Furthermore, they let you use your home’s value without refinancing your first mortgage. For example, you keep a great rate on your current loan while accessing extra funds. Also, they help you move fast in a competitive market. In short, HELOCs are a smart way to use your equity to grow your real estate portfolio.

Set Up Your Money Bucket

The idea of “money buckets” is simple. Essentially, you always want to have money available for your next project. For example, when a new deal pops up, you need funds right away. Therefore, fill your money bucket by securing a HELOC on each property. Then, use it wisely to pay for things like repairs or contractor fees. Finally, repay the HELOC so you can use it again in the future.

In Summary

HELOCs give you quick access to cash, help you act fast, and keep your projects moving. Moreover, they save you money compared to high-interest credit cards. Therefore, start filling your money bucket today. In this way, you can grow your real estate investments and make your next deal a success.

Now, if you have any questions about how HELOCs work or how to set up your money bucket, feel free to leave a comment below. We are here to help you every step of the way!

Contact us today to find out more about HELOCs and if they are right for your real estate investment needs!

Watch our most recent video to learn more about: How HELOCs Work in Real Estate Investing

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Why Real Estate Investors Need a HELOC

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Today we are going to discuss why real estate investors need a HELOC. Real estate investors often need money fast. First, a HELOC gives you cash on demand. Next, it helps you grab opportunities as they come. Moreover, it keeps your projects moving smoothly.

What is a HELOC?

A HELOC stands for Home Equity Line of Credit. In simple terms, it is a way to use the money you have in your property. For example, if you own a home or a rental, you can tap into your home’s value without selling it. Thus, you get the funds you need quickly.

How to Use a HELOC

A HELOC works much like a credit card, but it usually costs less. Here are a few ways to use it:

  • Buy a New Property: First, use the HELOC to put money down on a home.
  • Fix and Flip: Next, pay for repairs or upgrades so you can sell fast.
  • Pay Contractors: Also, you can quickly settle bills and keep work on schedule.
  • Cover Interest Payments: In addition, you might use it to manage your monthly costs.

For example, if you have a HELOC with a lower interest rate, you save money compared to using a credit card. Consequently, your profits grow.

How HELOCs Work

Typically, a HELOC is a second mortgage on your property. First, a lender gives you a loan based on a portion of your home’s value. Then, if you already owe money on your first mortgage, you still get extra funds. For instance, imagine you have a rental property worth $200,000. Moreover, if the bank allows up to 75% of the value and you already owe $100,000, you might get another $50,000 through a HELOC. Finally, you can use that $50,000 however you need.

Who Are Good Lenders for HELOCs?

Generally, small credit unions and local banks offer HELOCs. First, they understand the needs of real estate investors. Next, they often have flexible terms. Also, they charge lower fees compared to big banks. Therefore, they can be a great choice if you want to fill your money bucket.

Why We Love HELOCs

We love HELOCs because they keep the cash flowing. First, they allow you to act fast when a deal pops up. Next, you don’t have to wait for extra funds from traditional loans. Moreover, HELOCs help you save money on interest. In addition, they are available on many types of properties. Finally, by using a HELOC, you fill your money bucket and keep your projects on track.

Set Up Your Money Bucket

When you set up a HELOC, you create what we call a “money bucket.” First, you have cash ready for the next project. Then, you use that money to buy, fix, or flip a property. Also, you keep your investments growing without delays. In short, your money bucket makes it easier to succeed in real estate.

In Conclusion

To sum up, a HELOC is a smart tool for any real estate investor. First, it provides money on demand. Next, it helps you act quickly and save money. Finally, it fills your money bucket so you can keep growing your investments. Therefore, if you want to move fast and make your deals work, consider a HELOC today!

Contact us today to find out more about HELOCs and see if they are right for your real estate investment needs.

Watch our most recent video to find out more about: Why Real Estate Investors Need a HELOC

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Stop Waiting on Your Lender to Fund Your Flip

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Flipping Homes is a Race—But is Your Money Stuck at the Starting Line?

Stop waiting on your lender to fund your flip! Flipping homes comes down to speed. The faster you complete the project and get it on the market, the better. Delays cost you time, money, and unnecessary stress. Even worse, market conditions can shift while you’re waiting.

So what’s slowing you down? Cash flow. The money needed at the right time to get things started and keep them moving.

The Problem: Why Lenders Slow You Down

Many investors assume that once they close a loan, they have full access to the funds. But in reality, lenders hold back money in escrows, only releasing it after specific work is completed.

How Escrows Really Work:

  • Lenders set aside money for repairs, but they won’t release funds upfront.
  • Funds are only disbursed after certain work is completed.
  • Lenders base their loans on the finished value of the property, not its current condition.

This creates a big challenge: You need money to start, but your lender won’t release funds until after work is done.

The Real Cost of Delays

Every delay increases your holding costs:

  • Mortgage payments stack up.
  • Property taxes continue to accrue.
  • Insurance costs keep adding up.
  • Contractors move on to other jobs if you don’t pay them on time.

Even worse, if you miss the prime selling season, your home could sit on the market longer, reducing your profits.

The Fix: Get Your Money Bucket Ready

Top investors don’t wait for their lender to release funds. They have money ready to keep projects moving from day one. This is what we call your Money Bucket—a pool of funds you can access immediately.

How to Set Up Your Money Bucket:

  • Credit Lines & Business Credit Cards – Use available credit for pre-ordering materials and paying contractors upfront.
  • Cash Reserves – Keep personal or business savings ready for immediate costs.
  • Private Money (OPM) – Borrow from private lenders or partners who can provide quick funding.

The Winning Formula

A well-prepared investor doesn’t just dive in and figure things out later. Instead, they:

  1. Understand how escrows work before closing a deal.
  2. Line up money sources in advance.
  3. Prepay for materials and contractors to avoid project delays.

The Choice is Yours

You can either:

  • Wait on your lender and watch your project drag on for months, increasing costs and cutting into profits.
  • Get your Money Bucket ready and move fast, completing your flip in weeks instead of months.

Take Action Now

Stop waiting on your lender to fund your flip! To learn exactly how to set up your Money Buckets and flip homes faster, download our free Money Buckets eBook. It’s time to stop waiting and start winning in real estate investing!

Watch our most recent video to find out more!

Do you need help getting on the fast track to success? Contact us today!

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The Six Money Buckets You Need in Real Estate Investing

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The Six Money Buckets You Need in Real Estate Investing

As a real estate investor, it’s crucial to always be ready for opportunities. Successful investors have two key secrets: always looking for properties and being prepared to buy them. Now, let’s dive into the six money buckets that help them stay ready.

1. Other People’s Money (OPM)

Firstly, consider Other People’s Money (OPM). This includes family, friends, and other investors. They can lend you money without credit or income checks. For example, if you need $20,000 for a down payment, you can call someone from your OPM bucket. You might offer them a return of 8-12%, which is better than what they’d get from a bank.

2. Home Equity Lines of Credit (HELOCs)

Next, think about Home Equity Lines of Credit (HELOCs). If you have equity in your home or rental properties, a HELOC can be a flexible funding source. For instance, you can use a HELOC to withdraw money for down payments or to fix up properties. The best part is, you only pay interest on what you use.

3. Business Credit Cards

Moreover, business credit cards are a fantastic tool. Unlike personal credit cards, they don’t affect your personal credit score. This helps keep your credit in good shape for future loans. For example, you can use these cards to pay for repairs or other expenses without impacting your credit score.

4. Hard Money Lenders

Then, there are Hard Money Lenders. These lenders don’t focus on your credit or experience. They can lend you more money for flips or 100% for BRRR projects. Because of their flexibility, they are great for deals in remote areas or properties that need significant work.

5. Private Lenders

Additionally, Private Lenders are essential. They provide loans without needing your tax returns. For example, private lenders like Kiavi or RCN Capital might offer 90% of the purchase price and 100% of rehab costs. While they take longer to close, they are less costly than hard money lenders.

6. Local Banks

Finally, don’t forget Local Banks. They usually offer lower rates and fewer points. They might take longer to close, but they can be great for projects that aren’t time-sensitive. For example, if you’re planning a major renovation, a local bank’s loan might be perfect.

Conclusion

In conclusion, having these six money buckets at your disposal can make you a more flexible and prepared investor. Each bucket serves a different purpose and offers unique benefits. By building and maintaining these funding sources, you can ensure you’re always ready to seize opportunities and grow your real estate business.

For more tips and tools, visit The Cash Flow Company. Here, you’ll find resources like our deal analyzer and a detailed guide on money buckets to help you succeed.

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Why You Need to Fill Your Money Buckets

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Why You Need to Fill Your Money Buckets

Always Be Ready

One of our main goals at The Cash Flow Company is to help investors succeed! Top real estate investors have a secret formula. First, they’re always looking for properties. Second, they’re always ready to buy those properties because they have their money buckets filled. Therefore, when opportunity knocks, they are prepared to answer. How can you fill your money buckets? Let’s take a closer look! 

What Are Money Buckets?

Besides searching for properties, the second key to success is having the money ready to buy properties quickly. This brings us to the concept of a “funding stack” or “money buckets”. Top investors have multiple funding options lined up so they can act fast when a deal comes along. Let’s explore the six types of money buckets!

1. Other People’s Money (OPM)

Why Use OPM?

First and foremost, Other People’s Money (OPM) is a powerful tool. To clarify, OPM means borrowing money from friends, family, or other investors. Consequently, they lend you money because they trust you and want a better return on their investment.

Example:

If you need $20,000 for a down payment, OPM can help you get it without a credit check or income proof.

Benefits:

  • No credit checks
  • No income checks
  • Flexible terms

2. Home Equity Lines of Credit (HELOC)

Why Use HELOC?

Another incredibly helpful tool is a HELOC. A HELOC allows you to borrow against the equity in your home or rental property. It’s like having a credit card linked to your property.

Example:

For example, Jane in North Carolina has a paid-off property. She can then get a HELOC to buy fix-and-flip properties. Moreover, she uses a debit card that is linked to her HELOC for purchases at Home Depot.

Benefits:

  • Access funds anytime
  • No need for repeated applications
  • Fast and easy to use

3. Business Credit Cards

Why Use Business Credit Cards?

Business credit cards don’t affect your personal credit score. They are useful for short-term needs like repairs, as well as for small purchases.

Example:

If you need to buy materials for a renovation, use a business credit card instead of a personal credit card. As a result, your personal credit score remains intact and separate from your business expenses.

Benefits:

  • Doesn’t report to personal credit
  • Flexible for small expenses
  • Easy to obtain

4. Hard Money Lenders

Why Use Hard Money Lenders?

Hard money lenders are flexible and don’t focus on your credit score. Instead, they can provide funds quickly for flips, as well as rentals.

Example:

If you find a great flip but need the money in a few days, a hard money lender can provide it faster than a bank.

Benefits:

  • Fast approval and funding
  • Flexible terms
  • Suitable for flips and rentals

5. Private Lenders

Why Use Private Lenders?

Private lenders are like a middle ground between banks and hard money lenders. They not only offer better rates than hard money lenders, but they also require less paperwork than banks.

Example:

Private lenders can give you 90% of the purchase price and 100% of the rehab costs. Consequently, this helps you get started on your project without waiting for bank approvals.

Benefits:

  • Less paperwork
  • Competitive rates
  • Covers most of the purchase and rehab costs

6. Local Banks

Why Use Local Banks?

Local banks offer lines of credit or loans with lower rates. They may take longer to process, but they are ideal for long-term investments.

Example:

If you’re planning a pop-top renovation, a local bank can provide the necessary funds at a lower rate.

Benefits:

  • Lower interest rates
  • Ideal for long-term projects
  • Personalized service

Be Ready for Every Opportunity

In conclusion, by filling your money buckets now it ensures that you’re always ready to seize opportunities in real estate. By having diverse funding sources, you can act fast and get the best deals. Start building your money buckets today, and watch your investment opportunities grow. For more tips and tools, visit The Cash Flow Company. You’ll find tools like our Deal Analyzer and a comprehensive guide to building your funding stack.

Watch our most recent video to find out more about: Why You Need to Fill Your Money Buckets

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Always Have Enough Money for Your Real Estate Investments

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Always Have Enough Money for Your Real Estate Investments

Real estate investors always need to have enough money for their investments. It is important that they see every deal or transaction as a bucket of money. If you are buying a fix and flip or a rental property, there is a bucket of money that is needed. These funds can be used to purchase the property, complete rehab projects, cover closing costs, and take care of the interest. While the majority is going to come from the lenders, the remaining portion is going to have to come from you for a down payment or to cover the interest costs. It is important that you take everything into consideration when you are setting things up in order to win in the real estate game.

What do you need to look at when setting things up?

  1. Make sure that the lenders who are lending you money will give you more at a better price.
  2. Make sure that you have your bucket of money to not only qualify for this loan or multiple loans. Determine what represents your bucket of money, and how you can set it up to play in the game.

What if you don’t have any money going in?

There are many investors who enter the game without establishing their buckets of money. For these investors, it becomes a matter of creativity and how they feel about what they’re doing. There are a lot of people who don’t have anything coming into a deal. For these individuals, they can use lines of credit, or credit cards to do down payments. 

There is always another way to find the funds you need!

One of the most important things to do when you’re starting out is to use other people’s money. Often this is from family and friends. However, it doesn’t have to be. There are a lot of people out there who are looking for better returns. Take a moment to consider if there is someone out there who you can borrow $10K from. Perhaps someone from your real estate group or even a neighbor down the street. By doing this, you can fill your bucket of money with someone else’s money in order to get the return you want. As long as you use the funds correctly, then you can in turn make the money you need in order to pay them back. 

Let’s look at the numbers.

When you are purchasing a property, you can have the bank lend you up to 80% to 90%. The remaining 10% to 20% can then be provided by someone who is looking for a better return. By paying them 10%, it will be a lot cheaper than making payments on a credit card or a loan. The person lending you the money directly will in turn get a better return than they would find elsewhere. It’s a win win on both sides.

What do you need for success?

First and foremost you need to have confidence in order to succeed! If you are going to go out and ask people for money, then you need to show them that it will be a good deal for them. You can show confidence by knowing your project and by developing a business plan that showcases your investment goals. Once they have faith that you will find good properties, fix them, sell them, and make money, then they will partner with you. If you get one person in, then it’s easier to get more later.

We can help you!

We have developed a good system of how to not only find other people’s money, but more importantly how to talk to them about joining you in your investment journey. Here at The Cash Flow Company, we help to find you the leverage you need, get your buckets of money set up, and ensure that the properties you find are good deals. Remember, confidence comes with a good project, finding good projects will then help you make more money. Creating leverage now will help you jump into a deal quickly while others are scrambling. 

Contact us to find out more!

Watch our most recent video to make sure that you Always Have Enough Money for Your Real Estate Investments

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Leveraging Bargain Properties for Maximum Gains

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Leveraging Bargain Properties for Maximum Gains

Real estate is all about creating leverage. Another way to create that leverage is to buy undervalued properties. What exactly is an undervalued property? It is a property that is being sold for less than it is worth. These are the properties that provide an opportunity for you to receive 100% financing and steady income for the rest of your life. Let’s take a look at a few examples of how an undervalued property can help you to succeed. 

Hoarders helper

Just the other day a friend of mine helped someone move out of a hoarder house that was under foreclosure. The homeowners no longer wanted the property, and they just couldn’t get everything done in time. My friend was able to come in and give them some money to take care of things, allowing the homeowners to get out of the property.. My friend was able to get the house at 70% of the value and put in 10%. In doing so, he created 20% net worth for himself. With the condo appraisal for $250K, he created $50K in wealth within just one weekend. 

Starting with nothing

Another local guy we know sold his car in order to get his first real estate deal. Fast forward 4 years, he has built three 6 unit apartment buildings with cash. These properties are owned free and clear, which is creating a steady income for him for the rest of his life. He achieved this success by being very diligent with both his process and his numbers. This is a prime example of how people who put their mind into something, can in turn create the wealth that they want. 

Lenders like undervalued properties

Lenders consider undervalued properties to be safe. This is because they are such a good deal compared to other properties on the market. Therefore, real estate investors can often get 100% financing on a property that is under market value. There are a lot of properties that are well under market value out there and many of them need some work. By taking the time and fixing them up correctly, you could guarantee a future profit for your investment.

Buy undervalued properties for maxim gains

Real estate is all about leverage. By leveraging bargain properties, you will in turn have maximum gains on your investment. It doesn’t take a PhD or a masters, it just takes some Doers! These are people who want to get out there and just do it. Investors who go through the correct steps can in turn make great returns within a short period of time. Some people want to make $50K to 80K in a year and have 6 months off. That is the beauty of investing and leveraging correctly. 

Watch our most recent video to find out more about Leveraging Bargain Properties for Maximum Gains.

Contact us to find out more about the importance of leverage and how to fill up your money buckets.

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How to Fill Your Money Bucket For a Bad Market

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When the real estate market tightens up, you need to be prepared with leverage in your money bucket so you can take advantage of opportunities.

Once you’ve been in the business for as long as we have, you start noticing patterns. The investing world goes through cycles every few years where things tighten up before flowing normally again. 

However, a ‘bad market’ doesn’t necessarily mean bad news. 

If you’ve prepared beforehand, you can actually take advantage of the challenging landscape to build some wealth.

What is a ‘Bad Real Estate Market’?

Essentially, what’s happening right now is banks are tightening up. This means most are lending out less money, making it harder for investors to get the money they need.

This also means that, over the next 6-9 months, people are going to be getting rid of some properties and fewer people will be buying.

If this sounds like bad news, don’t worry. If you’re ready for these market changes, it can actually be the perfect time for you to buy. 

Filling Your Money Bucket

Since there’s going to be fewer loans coming out of banks, what can you do to make sure your finances are prepared for the shift in funding?

For every project, there is an amount of money that goes into it. We call it a bucket of money, or, your money bucket. 

Your money buckets needs to cover purchase, rehab, closing costs, etc. Part of that bucket comes from lenders, and part of it comes from you. 

If you’re a newer investor, don’t panic! Read on to learn how to build up that money.

Finding Money for Your Bucket

If you’re new to real estate investing, this is often the hardest part. However, there are many ways you can work to fill your bucket without needing to drain your personal bank account.

Obviously your lines of credit can be an asset to your money bucket, but Other People’s Money (OPM) is also important.

Ask around your friends, neighbors, family members, or investment clubs. Many of them could be interested in investing a few thousand dollars into a project with a secured return of 8-10%.

There are so many creative ways to help fill your money bucket from hard money, to lines of credit, to OPM. With more money in your bucket, you can do more transactions.

If you need help filling your personal bucket, reach out to us. We’ve coached many new investors through this process.

 

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The Money Bucket: Lenders vs. You

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For any project you do, you need money. We refer to this collection of money as your money bucket. 

The money in your bucket comes from two sources: 1) a lender and 2) you.

Both of these areas of funding are going to come together and fill the bucket to finance your project. 

Lenders

This is the part most people think about the most when it comes to real estate investing.

As an investor, it’s important that you’re attractive to lenders. Lenders, as a rule, want to lend you money, but it’s important to understand what they’re really looking for as well as how you can diversify your money bucket to maximize your success. 

Sometimes you need hard money, sometimes you need a bank, sometimes you need conventional loans. Sometimes you just need gap funding. 

Lenders offer a variety of options, and you should shop around to make sure you’re finding the right option that fits your project.

You

When it comes to the part of the money bucket you’re responsible for, there are two important areas for you to consider:

Credit Score

The better your credit, the more options you’ll have. 

Impact of Credit: Banks love clients with high credit scores. The higher the score, the more options they’re likely to offer. 

As with finding a loan, the more options banks offer, the more likely you are to find a great deal.

Personal vs. Business cards: Using personal credit for investing can quickly turn into a problem. 

Using personal credit cards or lines of credit for business projects can drive people’s scores down.

We strongly recommend using business credit cards for your real estate investing. You still should make sure you’re paying everything on time, but that business credit card in your name isn’t going to be reported on your personal credit report.

This keeps your credit score higher as you’re looking for loans.

Lines of Credit: Having a variety of credit lines, and opening those strategically, will help you fill  your money bucket. Lines of credit in business credit cards, HELOCs, etc. can get you more prepared for down payments, earnest money, repairs, and more. 

It’s helpful to have backup lines of credit that are ready for when you need money for time-sensitive deals. 

Fill your bucket and your options. 

Other People’s Money

When trying to fill your money bucket, you shouldn’t overlook your friends and family. 

Look out for real people in your life who are willing to invest in your project. Even if they only want to invest $10K, that can still help you cover your earnest money or smaller payments.

A lot of people are looking for private investments that offer better returns than traditional banks. Working with the real people in your life can make a huge difference in your ability to fund your project.

If you need help with navigating those personal investments, we’re happy to help. We have a lot of experience working with diverse money buckets and know how to keep notes for your financial records so those private loans are correctly accounted for.

Read the full article here.

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Real Estate Investors: How to Win in 2024

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How can real estate investors WIN in the changing 2024 market?

We’re expecting to see more foreclosures and more properties available at discounts in the coming year which is ideal for real estate investors in the business of fix and flips and rentals. 

No matter where you came from or whether you have a college degree, anyone with the willingness to work and learn can make good money in real estate. 

We’re here to share a few tricks so that, as opportunities show up in the coming year, you’re set for success. 

Preparing as Real Estate Investors

There are typically two sides of real estate investing: 1) finding good properties and 2) financing. 

As we said before, you need money to make the money. Today, we want to look at the financing side of things so you’re ready when the good properties show up. 

As an investor, it’s important that you’re attractive to lenders. Lenders, as a rule, want to lend you money, but it’s important to understand what they’re really looking for as well as how you can diversify your money bucket to maximize your success. 

Filling Your Real Estate Money Bucket

For any project you do, you need money. We refer to this collection of money as your money bucket. 

The money in your bucket comes from two sources: 1) a lender and 2) you.

Both of these areas of funding are going to come together and fill the bucket to finance your project. 

1. Be Honest With your Lender and Get Your Projects Done

This may seem obvious, but make sure you’re honest with your lender.

Make sure you’re upfront about your financial history. It should go without saying, but don’t try to hide that you’ve had a bankruptcy or defaulted on a loan in the past. 

If you’re concerned about your financial history, trust us: It’s much worse to hide it and make the lender find out on their own (which they will).

Once they find out, it will be harder for you to get a loan. And if you do find a loan, your options are going to be severely limited—not just because of the history, but even more so because you hid important information. 

Options are super important for real estate investors. 

Options drive down the costs of loans, and anytime you pay less for money, the more money there’s going to be in your bucket. 

Similarly, when you say you’re going to get a project done, get it done. Whether it’s a flip or a BRRRR, construct a solid timeline on the front end so you and your lender are on the same page.

It’s often a good idea to put in a bit of a cushion when talking to your lenders so that you don’t panic if there are minor delays in your project. 

Lenders want to see honest people who are doing their best. Most lenders are happy to support honest investors who are upfront with them with more money, more funding, more options. 

2. Your Credit Score Matters

The better your credit, the more options you’ll have. 

Impact of Credit: Banks love clients with high credit scores. The higher the score, the more options they’re likely to offer. 

As with finding a loan, the more options banks offer, the more likely you are to find a great deal.

Personal vs. Business cards: Using personal credit for investing can quickly turn into a problem. 

Using personal credit cards or lines of credit for business projects can drive people’s scores down.

We strongly recommend using business credit cards for your real estate investing. You should still make sure you’re paying everything on time, but that business credit card in your name isn’t going to be reported on your personal credit report.

This keeps your credit score higher as you’re looking for loans.

Lines of Credit: Having a variety of credit lines, and opening those strategically, helps real estate investors fill their money buckets. Lines of credit in business credit cards, HELOCs, etc. can get you more prepared for down payments, earnest money, repairs, and more. 

It’s helpful to have backup lines of credit that are ready for when you need money for time-sensitive deals. 

Fill your bucket and your options. 

3. Finding Real People’s Money as Real Estate Investors

When trying to fill your money bucket, you shouldn’t overlook your friends and family. 

Look out for real people in your life who are willing to invest in your project. Even if they only want to invest $10K, that can still help you cover your earnest money or smaller payments.

A lot of people are looking for private investments that offer better returns than traditional banks. Working with the real people in your life can make a huge difference in your ability to fund your project.

If you need help with navigating those personal investments, we’re happy to help. We have a lot of experience working with diverse money buckets and know how to keep notes for your financial records so those private loans are correctly accounted for.

Calling All Real Estate Investors: Prepare for 2024!

It’s important in 2023 to get ready for what’s coming in the future. 

Make sure you have lenders set up from hard money to neighbors and everyone in between. Check your credit scores now to ensure you have the options that will make your investing a success. 

You can also check out our free and easy tools to help get you ready for the upcoming market. We even have a free credit score checklist for you to use.

As always, we’re always happy to help! If you have any questions about the upcoming market, your loan options, or how to fix your credit, reach out to us at Info@TheCashFlowCompany.com.

You can also check out our YouTube channel to learn more about real estate investing.

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