Tag Archive for: money buckets

How to calculate LTV

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Today we are going to discuss how to calculate LTV. If you’re diving into real estate or loans, you’ve probably heard the term LTV. But what does it mean, and how do you figure it out? LTV stands for Loan-to-Value ratio. It’s a simple way lenders measure the risk of giving you a loan by comparing the loan amount to the value of the property.

Here’s the formula:
LTV = (Loan Amount ÷ Property Value) × 100

For example, let’s say you want to borrow $150,000 to buy a property worth $200,000. Divide $150,000 by $200,000, and you get 0.75. Multiply that by 100, and your LTV is 75%.

Why does LTV matter? A lower LTV (like 75%) means you’re borrowing less compared to the property’s value. This makes you less risky to lenders and can help you snag better loan terms. On the flip side, a higher LTV (like 90% or more) could mean stricter requirements or higher costs.

LTV is key for deciding your down payment, too. If your lender wants a maximum LTV of 80%, you’d need to put down 20% of the property’s value upfront.

Understanding LTV helps you plan smarter. The lower the ratio, the stronger your position as a borrower. So, keep this calculation in your toolbox as you explore your financing options!

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Do you have an investment property in mind but not sure how to calculate LTV?  Contact us today to find out more!

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We also have free tools available! Download the Your Money Buckets to make sure that you have the leverage you need to succeed.

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Visit our YouTube channel to learn more about real estate investing and how you can maximize your profits! 

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Why You Need Wholesalers on Your Side

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Today we are going to discuss why you need wholesalers on your side. Real estate investing is a competitive game. Therefore, the winners are those who combine smart property acquisitions with proper funding. Wholesalers can help you unlock better deals that others won’t even see. Here’s why they are an essential part of your success.

The Two Pillars of Real Estate Investing

To thrive in real estate, you need two things:

First, Great Deals:

The best properties often don’t make it to the public listing. They’re snatched up by investors at the top of a wholesaler’s list.

Second, Proper Funding:

Being “money ready” means you can buy, fix, as well as finish properties quickly without delays.

Why Wholesalers Favor the Money-Ready Investor

Wholesalers prioritize investors who:

  • Close deals fast.
  • Avoid creating complications.
  • Have funding ready to go.

When you’re easy to work with, wholesalers offer you deals before they hit the email lists. To clarify, these properties often have higher profit margins. As a result, they can be 20% more than publicly listed ones.

Example:
A property with a $400,000 ARV (After Repair Value):

  • Hard Deals: 10% profit margin = $40,000.
  • Good Deals: 15% profit margin = $60,000.
  • Great Deals: 20% profit margin = $80,000.

By securing great deals, your profits double compared to scraping through regular listings.

Be Money Ready to Maximize Success

Being “money ready” means having the funds for:

  • The purchase.
  • Repairs and renovations.
  • Carrying costs and any unexpected overruns.

To clarify, the faster you complete a deal, the quicker you see returns. Delays of just three months can slash profits in half.

The Long-Term Impact of Better Deals

Let’s compare three investors flipping three properties annually:

First, Hard Deals: $120,000/year or $360,000 over three years.

Second, Good Deals: $180,000/year or $540,000 over three years.

Third, Great Deals: $240,000/year or $720,000 over three years.

Investors at the top of a wholesaler’s list not only earn more but they also enjoy the ability to reinvest profits or fund new opportunities.

How to Get Money Ready

To work with wholesalers and secure great deals:

  • Line up your funding for the purchase, rehab, and holding costs in advance.
  • Build relationships by showing wholesalers you’re a reliable and fast closer.
  • Work with lenders like us to create a “money bucket” strategy that funds every stage of your project.

Start Thriving in Real Estate Today

Want to make real estate investing easier as well as more profitable? Reach out to us. We’ll help you get “money ready” so you can:

  • Secure better deals.
  • Finish projects faster.
  • Either do less and enjoy more or scale up to grow your portfolio.

Watch our most recent video to find out more about: Why You Need Wholesalers on Your Side

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Overcome the Fear of Real Estate Investing

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Today we are going to discuss how you can overcome the fear of real estate investing. Starting your real estate journey can feel overwhelming. Fear often creeps in, making you question, “What if I lose money?” or “What if I don’t know enough?” These thoughts are normal, but they don’t have to stop you.

Think about this: Every expert investor was once a beginner. They faced the same fears but took small, smart steps to push through.

One key to overcoming fear is understanding the numbers. For example, let’s say you find a property that rents for $1,200 per month, but your total monthly costs, including the loan, taxes, and insurance, are $900. That leaves you with $300 in positive cash flow. Knowing this simple math helps turn uncertainty into confidence.

Another way to manage fear is by starting small. Maybe you purchase a single rental property instead of jumping into a multi-unit complex. Learning as you go with a smaller investment reduces risk and helps you build experience.

Lastly, surround yourself with a supportive network. Find mentors or groups where you can ask questions, share ideas, and learn from others’ successes and mistakes.

Remember, fear is a natural part of growth. By starting small, focusing on the numbers, and seeking guidance, you can overcome your hesitation and take your first step toward building wealth through real estate.

Contact Us Today! 

Learn more about how to overcome your fears of real estate investing! Contact us today!

Free Tools For You! 

We also have free tools available! Download the Your Money Buckets to make sure that you have the leverage you need to succeed.

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can maximize your profits! 

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How to 3x Your Real Estate Investment Profits

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Today we are going to discuss how to 3x your real estate investment profits! Real estate investing can be incredibly rewarding, but not all investors see the same results. Some struggle to make a small profit, while others consistently triple their returns. The difference? It boils down to mastering two critical pillars: finding the right properties and being money ready.

Let’s break this down step by step, with examples to show how these principles can 3x your profits.

1. Find the Best Properties

The secret to making real money in real estate is in the purchase. If you buy the right property at the right price, you’ve already set yourself up for success. Here’s how:

  • Be First on the List: The best deals often go to investors who can close quickly and without hassle. Wholesalers and real estate agents prioritize reliable buyers who make their job easier.
  • Target Higher Margins: Investors who are top-of-the-list often snag properties with 15% or even 20% profit margins. Compare that to the standard 10% margins many investors settle for:
    • Hard Deals: Buying at a 10% margin on a property with a $400,000 ARV (After Repair Value) means $40,000 profit. But even a small market dip or delay can wipe out those earnings.
    • Good Deals: A 15% margin on the same property brings in $60,000. That’s 50% more profit!
    • Best Deals: The best investors land deals with a 20% margin, pocketing $80,000 per flip.

By securing properties at higher margins, your profits grow exponentially.

2. Be Money Ready

You can’t take advantage of great deals unless you’re prepared to act fast. Being money ready means having your funding in place before opportunities arise. Here’s why it matters:

  • Close Deals Quickly: Sellers favor buyers who can close in days, not weeks. If you have your financing lined up, you’ll become the go-to investor for wholesalers and agents.
  • Finish Fast: Delays during renovations eat into your profits. Investors who have funding ready for purchase, rehab, and carrying costs can finish projects in three months instead of six. That speed often doubles or triples your annual returns.
  • Avoid Overruns: Unexpected costs happen. Having extra funds available ensures you’re never scrambling to complete a project.

To illustrate, let’s compare three investors flipping three properties annually:

Investor Type Profit/Property Annual Profit
Hard Deals $40,000 $120,000
Good Deals $60,000 $180,000
Best Deals $80,000 $240,000

Over three years, the difference is staggering:

  • Hard Deals: $360,000
  • Good Deals: $540,000
  • Best Deals: $720,000

The compounding effect of higher margins and faster completions allows top investors to enjoy more income and opportunities.

3. Use “Buckets of Money”

To stay money ready, smart investors use what we call “money buckets” to cover every phase of a deal:

  • Purchase Funds: Money to buy the property.
  • Rehab Funds: Money for renovations and repairs.
  • Holding Costs: Money for taxes, insurance, and utilities.
  • Overrun Funds: Extra money for unexpected expenses.

By planning for every stage, you’ll avoid costly delays and secure better deals.

Ready to Triple Your Profits?

If you’re ready to start doubling or tripling your real estate profits, focus on mastering the two pillars: find better properties and be money ready. Need help setting up your funding? Contact us today!

We’ve helped countless investors organize their money buckets for success. Reach out to us, and we’ll ensure you have the funds to buy, rehab, as well as complete your deals faster, with more profit.

Watch our most recent video to find out more about how to 3x your real estate investment profits.

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Make Your Real Estate Investing Journey EASY in 2025

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Are you ready to make real estate investing easier? Today we are going to help you make your real estate investing journey easy in 2025. Success isn’t just about finding properties, it’s about being prepared to act fast and finish strong. In this guide, we’ll show you how to get money ready, secure the best deals, as well as double your profits by mastering two key pillars of investing. Let’s turn your real estate goals into reality this year!

The Two Pillars of Real Estate Success

Success in real estate investing boils down to two key pillars:

  1. Finding the right properties – Identifying deals with strong profit margins.
  2. Being money ready – Securing funding to buy, rehab, and finish projects quickly.

By mastering these pillars, you can position yourself at the top of wholesalers’ lists and gain access to the best deals before they even hit the market.

Be Money Ready!

When you’re money ready, you’re able to:

  • Buy properties fast.
  • Close deals without delays.
  • Handle unexpected expenses like overruns or pre-funding requirements.

For example, let’s look at the numbers:

  • ARV (After Repair Value): $400,000
  • Profit Margins:
    • Hard Road: 10% = $40,000 profit (at risk of losing money with delays or market changes).
    • Good Deals: 15% = $60,000 profit (50% more than the hard road).
    • Best Deals: 20% = $80,000 profit (double the hard road).

With better deals, you not only make more money, but you also build trust with wholesalers and lenders.

3 Deals, 3 Outcomes

Your profit margins impact your yearly and long-term earnings:

  • Hard Road: $120,000 per year for 3 deals.
  • Good Deals: $180,000 per year for 3 deals (+$60,000).
  • Best Deals: $240,000 per year for 3 deals (double the hard road).

Now, imagine this over three years:

  • Hard Road: $360,000
  • Good Deals: $540,000
  • Best Deals: $720,000

Compounding profits make all the difference!

How to Get Money Ready

To make your real estate investing journey easier in 2025, ensure you have funding for every stage of your project:

  1. Purchase funds – Close quickly and secure the best properties.
  2. Rehab funds – Cover renovations and unexpected costs.
  3. Carrying costs – Manage holding expenses like interest and utilities.
  4. Overrun funds – Stay on schedule despite surprises.

When you’re money ready, you can:

  • Close deals faster.
  • Build trust with wholesalers.
  • Either enjoy life more or scale up your investments.

Take the Next Step

If you’re ready to:

  • Find better deals.
  • Get funding set up.
  • Make your real estate journey easier.

Reach out to us! We’ll help you organize your money buckets for purchases, rehabs, and beyond.

Watch our most recent video to find out more about how to make your real estate investing journey easy in 2025.

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You Need Buckets of Money in Real Estate Investing

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Today we are going to discuss why you need buckets of money in real estate investing. Each bucket has a purpose, and filling them is the key to success. Let’s break it down.

Cash for deals

The first bucket is cash for deals. This is your go-to money for buying properties. It could come from savings, hard money loans, or even private lenders. For example, if you spot a great fix-and-flip deal, you’ll dip into this bucket to lock it in.

Rehab bucket

Next, there’s the rehab bucket. After buying a property, it often needs work. You’ll need funds to cover repairs, updates, or upgrades. Say you bought a fixer-upper with outdated kitchens and bathrooms. You’d pull from this bucket to make it rental-ready or appealing to buyers.

Holding and operating costs

The third bucket is holding and operating costs. Real estate takes time, and you’ll need to cover mortgage payments, utilities, and insurance while waiting for your return. For instance, if a property sits on the market for three months, this bucket keeps things afloat.

Emergency bucket

Lastly, don’t forget the emergency bucket. Surprises pop up in real estate—unexpected repairs or delays. This bucket is your safety net. It’s like when a plumbing issue costs more than planned—you’ll thank yourself for having a backup.

Set yourself up for success

By thinking in buckets, you stay prepared, reduce stress, and make smarter decisions. Real estate investing works best when your finances are organized and ready for anything. So, start filling those buckets today, and watch your investments grow!

Contact Us Today! 

Why do you need buckets of money in real estate investing? Contact us today to find out more!

Free Tools For You! 

We also have free tools available! Download the Your Money Buckets to make sure that you have the leverage you need to succeed.

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can maximize your profits! 

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The Biggest Mistake Real Estate Investors Make

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Today we are going to discuss the biggest mistake real estate investors make! Real estate investing can be rewarding, however it also comes with challenges. One of the biggest mistakes investors make is not being “money ready.” To clarify, this lack of preparation can lead to delays, added costs, as well as a reductions in profits. Let’s break this down and look at examples in order to understand why being money ready is essential.

What Does “Money Ready” Mean?

Being money ready means having enough funds available to cover the full scope of a project. This includes:

  • Purchase price
  • Rehab costs
  • Carry costs (taxes, insurance, interest payments)
  • Unexpected expenses

It’s not just about having cash in the bank. You need accessible funds like credit lines, reliable backup resources, or supportive partners.

The Tale of Two Investors

Here’s a real-world example of how being money ready can either make or break a project.

Investor #1: Money Ready and Profitable

Investor #1 planned their project meticulously:

  • ARV (After Repair Value): $400,000
  • Expected Profit: 15% or $60,000
  • Timeline: 6 months, from purchase to sale

They encountered an unexpected $7,500 expense during the rehab (such as old wiring or plumbing behind a wall). Because they had funds readily available, they handled the issue immediately as well as kept their contractors on schedule. As a result, they finished the project a month early, saving additional carry costs.

  • Final Profit: $55,000
  • Project Duration: 5 months

Investor #2: Unprepared and Stressed

Investor #2 started with the same expectations but wasn’t money ready. When the same $7,500 unexpected expense came up, they had to scramble for funding. This delay caused:

  • Contractors to move on to other jobs, creating scheduling issues.
  • A project timeline extension of 4 additional months.
  • Extra carry costs of $12,000 ($3,000 per month for taxes, insurance, and interest).

To make matters worse, the slower timeline also pushed the project into a weaker selling season. They had to drop their price by 5% ($20,000) to attract a buyer. Additionally, their lender charged a $5,000 extension fee for going beyond the loan’s 9-month term.

  • Final Profit: $15,000
  • Project Duration: 10 months

Why Money Readiness Matters

Delays as well as unexpected costs are common in real estate investing. Without enough funds to handle surprises, you risk:

  • Missing optimal market windows (like spring or fall selling seasons).
  • Losing profits to prolonged carry costs and price drops.
  • Increased stress from juggling financing and contractor schedules.

How to Get Money Ready

To avoid these pitfalls, aim to have 20-40% of the total project budget available in accessible funds. These funds can come from:

  • Savings
  • Lines of credit
  • Credit cards (used strategically)
  • Supportive partners

For example, if your project’s total budget is $300,000, plan to have $60,000 to $120,000 in accessible funds. This cushion ensures you’re prepared for any hiccups without derailing the project.

The Cost of Not Being Ready

Let’s revisit Investor #2’s project:

  • Unexpected Expense: $7,500
  • Additional Carry Costs: $12,000 (4 extra months)
  • Price Drop: $20,000 (5% of $400,000)
  • Extension Fee: $5,000

Their original $60,000 profit dwindled to just $15,000, a $45,000 difference. Meanwhile, Investor #1 stayed on track, kept stress low, and moved on to their next profitable deal.

Speed Is the Name of the Game

In real estate, speed matters. The faster you:

  1. Close on a property, the better your deal.
  2. Complete the rehab, the more you save on carry costs.
  3. Sell in the right market window, the higher your profits.

But speed is only possible when you’re money ready.

Don’t Make This Mistake

Being money ready sets successful investors apart from those who struggle. If you want to avoid this common mistake, take the time to plan your funding properly. It’s the key to:

  • Keeping stress low
  • Maximizing profits
  • Growing your real estate business

Make sure you have the resources you need to handle surprises. That preparation will keep you on track, no matter what challenges arise.

Contact us today to learn more about the biggest mistake real estate investors make!

Watch our most recent video to find out more.

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The Importance of Leverage in Real Estate Investing

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Today we are going to discuss the importance of leverage in real estate investing. Leverage is a game-changer in real estate investing. It’s what allows you to grow your portfolio faster without needing stacks of cash. Think of it like using a small lever to lift a big rock. With the right tool and technique, you can do a lot with a little.

Here’s an example: imagine you want to buy a $200,000 rental property. Instead of paying the full amount, you use leverage, a loan, to cover most of it. You put down $40,000 and borrow the rest. The rent from the property pays the loan, and you still build equity as the property’s value increases.

Leverage isn’t just about getting more properties. It’s about creating opportunities. You can use it to renovate a fixer-upper, buy into a growing market, or even free up cash for other investments.

But here’s the key: leverage works best when used wisely. Taking on too much debt or ignoring the numbers can backfire. It’s like riding a bike downhill, exciting, but you need control.

With smart planning, leverage can help you grow wealth while keeping your money working for you. It’s a powerful tool for anyone serious about real estate. Want to dive deeper? Explore money buckets more on our website! 

Contact Us Today! 

How can you maximize your profits as a real estate investor? Contact us today to find out more about the importance of leverage in real estate investing!

Free Tools For You! 

We also have free tools available! Download the Your Money Buckets to make sure that you have the leverage you need to succeed.

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can maximize your profits! 

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How Interest Rates Will Impact Fix and Flips in 2025

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Today we are going to discuss how interest rates will impact fix and flips in 2025!  Let’s dive into what this means for you and how to set yourself up for success.

Why Timing and Funding Matter

Timing is everything in real estate. Selling at the right time, like early spring or late summer, can maximize your profits. Missing these windows? That can add months of carrying costs, extra stress, and potentially reduced profits.

But timing isn’t the only factor—your funding strategy plays a huge role. Having the right money bucket ensures you’re ready for surprises without slowing down your project.

What Happens Without Proper Funding?

One of the most common mistakes we see is when investors aren’t money ready. Let’s look at an example:

  • Investor A had everything planned. The property was supposed to take 6 months from start to sale. But halfway through, they found $7,500 in unexpected repairs—old wiring and copper plumbing. Since they didn’t have enough reserves, they scrambled for funds.
  • This caused delays. Subcontractors moved on to other jobs, pushing the project back 4-6 weeks. By the time Investor A finished, they were 4 months behind and had to pay $12,000 in extra carrying costs. On top of that, they had to drop the price by 5%, losing $20,000.
  • In the end, their $60,000 profit shrank to just $15,000—and their stress levels went through the roof!

The Tale of Two Investors

Let’s compare Investor A with someone who was prepared.

  • Investor B also faced the $7,500 surprise but had their funding ready. They covered the cost immediately, keeping their project on schedule.
  • Investor B finished in 5 months, saving an extra month of holding costs. Despite the unexpected expense, they still walked away with $55,000 in profit.

What’s the difference? Speed and preparation. Being money ready made all the difference for Investor B.

How Interest Rates Will Impact Your Deals in 2025

Higher rates increase borrowing costs, so every delay becomes even more expensive. Here’s why:

  1. Larger Monthly Payments: Each month you hold the property costs more. Taxes, insurance, and interest can eat into profits fast.
  2. Extension Fees: Lenders often charge hefty fees if your project goes past its original term. For example, a 2% extension on a $250,000 loan adds $5,000 in unexpected costs.
  3. Price Adjustments: Slower markets due to higher rates may force you to drop prices to sell quickly.

Steps to Succeed in 2025

  1. Build Your Money Bucket: Plan to have 20-40% of your total budget in accessible funds. This includes reserves for unexpected costs, payments, and project overruns.
  2. Stick to a Fast Schedule: The faster you complete your project, the less you’ll spend on carrying costs.
  3. Partner with Reliable Lenders: Work with lenders who understand the challenges of fix-and-flip investing.

Get Help So You Don’t Make This Mistake

2025 will bring challenges for fix-and-flip investors, but preparation is key. Want help setting up your money buckets or finding the right funding options? Reach out to us!

Let’s ensure you’re ready to profit faster, stress less, and enjoy real estate investing in the coming year.

Wrap-Up

Speed and preparation are your best friends in a fix-and-flip project, especially when interest rates are high. The more prepared you are, the more successful you’ll be.

If you have questions or want to learn more, contact us today and check out our programs. We’re here to help you thrive in 2025 and beyond!

Watch our most recent video to find out more about: How Interest Rates Will Impact Fix and Flips in 2025!

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