Tag Archive for: new investor

Real Estate Investing: Popular Questions Asked and Answered

Categories:

2024 Real Estate Investing: Most Popular Questions Asked and Answered

Today we will be answering a few popular questions in real estate investing. On average, we talk to 20 to 25 investors a day. Many of them are facing a number of hurdles that are not only impacting them, but their investments as well. By looking at the patterns that we have seen over the years, it allows us to better meet the needs of our clients. What are the hurdles and how can you avoid them? Let’s take a closer look.

#1: How do I get 100% financing?

Everyone wants to get into real estate investing with 100% financing. How can they get the money they need for their rental property or fix and flip? While there are some lenders who offer 100% financing, they will only do so if you have already done 1 or 2 deals. For those who have not, it is important that they look into other options. If you are looking for 100% financing on a property it is important that you open up to other financing options other than traditional loans. Many traditional lenders will only lend 80% to 90%. Become a real Real Estate Investor by building your confidence to go ask people for the money you need for your investments. By finding good deals and demonstrating your confidence, the sky is the limit to your success.

HELOCS:

HELOC stands for home equity line of credit. A HELOC allows you to take money out of your property or a rental property. You can then use these funds to bridge the lending gap for your next investment.

Real peoples money:

Real people are those within the community who are in search of better returns on their funds. There are a ton of people out there who have $20K to $100K to invest and are looking for better returns. 

Start using creative financing:

Creative financing includes credit cards, which can be used to fund the rehab, staging, and even a Vrbo. However, it is important to keep in mind that the credit card needs to be a business credit card at 0% in order to be beneficial to you and your investment needs. 

What is stacking and how can it help you reach your financing needs?

The lending journey begins with your primary mortgage company who will give you 80% to 90% financing. This creates a funding gap that leaves you searching for additional financing options in order to get up to 100% financing. Gap funding options can include HELOCS, family friends, real peoples money, and even establishing a partnership. 

#2: Be prepared. 

Inflation is causing everything to become tighter and as a result it is harder to find financing for your investments. In order to be successful, investors need to be prepared before they go out and look for properties. This will give them a better chance of being approved for the lending that they need. Here at The Cash Flow Company we are searching  for deals where we can lend people money, get it back, and lend it back out again. What do you need to do to be prepared?

Valuation:

It is imperative that you have all of your numbers in line before talking to lenders. Keep in mind that wholesalers often stretch the value of the property. That is why it is important that you look at the numbers yourself to prevent frustration. When you are coming to lenders make sure that you know your values, know how appraisers look at properties, and make sure that your numbers are in line. These numbers include purchase, rehab, and rent. At the end of the day your goal is to create income and wealth. 

For example:

Someone reached out who is buying a single family house and he is going to make it into a two unit property. This single family property will sell for $200K. However, his belief was that the property will be worth $400K because he is splitting it into two properties. Unfortunately, that is not how the market works. 

#3: The future of real estate investing.

Many people wonder what the future of real estate investing is. How can they make money on buying rentals? Making money on rental properties right now is becoming a struggle because properties are $600K to $800K. While this is a concern for many investors, there are some options available to make investments more profitable. 

What is a padsplit?

A padsplit is when a property is divided into multiple single units. For example, a 3 bedroom could be divided into a 6 or 8 bedroom property. Just to clarify, each of the bedrooms would have a bathroom and all they would share is the kitchen space. Each unit could bring in a rental amount of $1,000, which could potentially total $6,000 to $8,000 per month depending on how many units you have. With an overall monthly rent of $3,500, the investor would have the cash flow they need to be successful. This method provides the flexibility and affordability that many people are looking for.

#4: Credit score obstacles.

Your credit score can often hinder your success in real estate investing. Over half of our calls are from people who have a score that is too low for them to get what they want. For example, we have a guy from Texas who is trying to get his property refinanced.  While the property is great and he has an amazing tenant, his credit score is too low for him to get the rate he needs to cash flow. By working on your credit scores and setting things up right, you can achieve the credit score you need to get what you want. 

Business credit cards.

Getting business credit cards is the #1 thing that will help you achieve your goals in real estate investing! Those who are able to get business charges off of their personal credit cards will in turn open up a lot of funding options. Struggles with credit scores is often the cause of people getting out of real estate investing. Don’t let this happen to you! 

Increasing your credit score quickly.

We have a lot of different options available to investors that will help them get their credit score back on track in a matter of weeks!

Usage loan

A usage loan is used to pay down credit cards by using a private loan. As a result of paying down the credit cards, it raises your credit score. By increasing your credit score it will then allow you to refinance and buy your next investment property.

Business credit cards

We can not stress enough how important business credit cards are! By setting up business credit cards instead of personal credit cards it will help to increase your funding options. The majority of business credit cards do not report your usage. Therefore they are not hurting your DTI or your credit score. Make the change today and see the effects it can have on your credit score! 

#5: Small steps vs Giant leaps

Oftentimes real estate investors make the process of getting started into such a big deal that their brain shuts off. As opposed to looking at one property a day, many attend a class that says that they need to purchase their first property within the first 30 days. This method is not always realistic for most people. Instead, you need to focus on the steps that stretch you a little bit as opposed to shutting you down. Consistency is the tortoise in real estate investing. By looking at one property a day and talking to one contractor a day, you will be better prepared to purchase your first investment property. Remember, it’s better to have 2 properties that are successful than to have 5 that are struggling.

Are you on the right path? 

Would you like to find out more about the popular questions in real estate investing? Contact us today! Do you have a property in mind? Send us the numbers and we will see if it is a good investment opportunity for you. Since funding is such a critical piece in real estate investors’ success, it is important that you know your numbers ahead of time to make things easier, cheaper, and faster. Also remember that by building your team now, you can set yourself up for the generational wealth that you want. 

Watch our most recent video 2024 Real Estate Investing: Most Popular Questions Asked and Answered to find out more.

by

How to Get Pre-Approved for a Real Estate Loan

Categories:

How to Get Pre-Approved for a Real Estate Loan

Over the past few days we have had clients lose out on properties that would have been really good flips. They lost deals because they did not secure their financing beforehand. While getting into this business requires a lot of planning, it is imperative that investors set up their money correctly from the very beginning. Get pre-approved for a real estate loan today and open the door to more opportunities!

Set up financing immediately!

Those who are new to real estate investing should focus on setting up the proper financing immediately! The last thing that you want to do is to put a property under contract and not close . This could burn the relationship that you created with the realtor or wholesaler. Instead of being at the top of their list for good properties, you will instead move to the bottom of the pile.  Here at The Cash Flow Company we want to give you the competitive advantage. Part of that is making sure that you do everything correctly. It is a business!

Don’t miss out on deals!

Whether you are new or just into a new adventure, it is important to set yourself up for success from the beginning. If you are going to get into the real estate game, make sure that you are not only looking for properties, but that you are also keeping the money flowing. What do we mean by keeping the money flowing? Maybe you need 100% financing, need a second, or you’re new to flips and need to know what to do. Talk to lenders as you find properties. In doing so, you can move forward quickly on deals. 

Choose the right lender for the deal.

One of the most important things that you need to do as a real estate investor is to create a good relationship with lenders. Those who have a good relationship with their lender will be able to consult with them prior to purchasing in order to see what financing options are available. One thing to keep in mind is that your lending needs will not only change over time, but they will change depending on the property. For example, financing on a fix and flip will be different from the financing on a rental property. It is important to look around and evaluate your lending options annually in order to find the best options for you. 

How do you get pre-approved?

Before seeking out a pre-approval, it is imperative that you know what type of property you are looking for. Are you going to focus on flips, rentals, 1 to 4 units, or multi units. Those who do can then make sure that the lender lines up with what they are trying to do. How can you find the right lenders? The answer is by talking to those in the real estate community. They can guide you to the lenders who are closing, those who work with new investors, and also tell you about requirements that the lenders might have. 

Ready, set, GO!

One of the biggest hurdles for real estate investors is finding the funding needed to purchase properties! By gathering pre-approvals first you will be ready for the next deal. While building strong relationships along the way.

Contact us today to find out more about what you need to do to get pre-approved.

Watch our most recent video to learn How to Get Pre-Approved for a Real Estate Loan

by

How to Fill Your Money Bucket For a Bad Market

Categories:

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.

 

Read the full article here.

Watch the full video here:

by

How to Win in a Bad Real Estate Market: 3 Key Tips!

Categories:

When the real estate market tightens up, you need to be prepared with leverage so you can take advantage of investing 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 Buckets

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 money 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 fill those buckets.

3 Key Strategies For Better Loans in a Bad Real Estate Market

Our goal is to help you figure out how you can get more money from lenders so less is coming out of your pocket.

1. Get Your Credit Score in Line

In the past, 660-680 used to qualify you for an okay loan. Not anymore! As lenders tighten up, most will be looking for scores closer to 750-799+. 

Lenders are depending more and more on credit scores. Make sure your credit score isn’t holding you back!

If you’re using personal credit cards for your investing projects (using them to buy supplies, pay vendors, etc.) stop now! 

Personal credit cards aren’t made for that level of usage, and most cards will drop your credit score if you’re using too much of your balance on a regular basis.

This can lead to a significant usage issue. There are two things you can do to help fix this problem:

Once you raise your credit score, make sure you maintain it. Since lenders look so closely at your score, you should too!

2. Fill Your Bucket With More Money

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 money 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 money bucket, reach out to us. We’ve coached many new investors through this process.

3. Be Picky With Your Deals

Don’t feel rushed. Be selective.

As you shop around for investment properties, look for ones that are under a 70% After Repair Value (ARV). 

This is a good time to be picky, especially if you’re new to the game. Choose safe deals that will guarantee you a solid return when the market heats up again.

If you do it right, finding the deals that are 70% ARV or below can open up many more deals and transactions in the future.

In five years, when everything is back to normal, those properties are going to have great value and you could create significant wealth.

We’re Here to Help You Navigate This Real Estate Market!

If you take the time to get your credit score and money buckets in order now, you set yourself up well to move quickly when you do find the right deals for you. 

If you need help figuring out where to start or you want to discuss loans or investment strategies, reach out to us at Info@TheCashFlowCompany.com or fill out a contact card.

We also have many free tools and resources that you can check out. Our goal is to help you feel equipped as you enter your investment journey, and we are always happy to help.

by

What is Leverage Money in Real Estate?

Categories:

Building wealth is all about leverage in real estate investing. But what exactly is leverage money, and how can you use it correctly?

If you look at investing, it’s all about using other people’s money. It’s all about leverage. 

Understanding leverage and using it correctly is the key to unlocking the profits of real estate investing.

Why Leverage Matters

Leverage is the term we use for using someone else’s money (typically in the form of loans) to make a profit for yourself.

Frequently, you will also use a small amount of your own money. But leverage—the opportunities you can access with external funds—is what makes real estate investing accessible regardless of your personal wealth. 

Additionally, leverage allows investors to enter the market quickly, without needing to wait 5 years to save up for a downpayment.

If you know how to get money from others and use it to strategically turn a profit for yourself, you’ll be able to build income out of nearly nothing. 

Different Kinds of Leverage

Leverage comes in many forms:

  • Financial gifts
  • Loans
  • Mortgages
  • Liens
  • And more!

The most common form of real estate leverage is probably a classic mortgage. However, how you use that mortgage (and what you look for in a property) can make all the difference.

Looking for undervalued properties that owners are looking to sell quickly typically maximizes the ARV (After Repair Value). By getting a mortgage to cover the cost of the purchase price and leveraging those funds, you can fairly easily increase the value of the property and turn a profit on the resale (or rental).

Additionally, if you’re looking to buy a property that’s appraised under the market value, lenders are more likely to cover 100% of the purchase price (and sometimes a large piece of the renovations as well). 

How Far Can Leverage Take You?

In the current market, successful investing over the next few years is likely to have a huge payoff. 

Many real estate investors are even able to accumulate hefty retirement funds strictly through real estate investing in addition to annual income.

There are so many strategies you can use to build income with leverage:

  • Fix and flip (buy, fix, sell)
  • Renting (buy, fix, rent)
  • House hacking (buy, fix half, rent fixed half, fix other half with income from first half)

Even new investors can make quick progress if they use leverage wisely.

Recently, we had an investor from a smaller community who has already purchased 8 properties this year with little-to-no money down on each. They’ve been refinanced, rented, and are building her income. By the end of the year, she’ll probably have purchased anywhere from 10-15 properties. And she’s accomplished this by using other people’s money.

Of course, some markets are harder to work in and some communities move a little slower. 

But if you are committed to the game, and you pursue the best loans, you can build a successful business without emptying your pockets.

It’s all about finding the right leverage and using it wisely.

 

Read the full article here.

Watch the full video here:

by

The Key to ‘ELFF’ing the Real Estate Game

Categories:

Making the real estate game Easy, Lucrative, Fun, and FAST is a critical component to your success as an investor!

A while ago, Joe Polish from I Love Marketing began using the acronym “E.L.F.” to describe an easy, lucrative, and fun business.

However, in the real estate world, time is everything. While we totally support easy, lucrative, and fun real estate investing, we also recognize that we need to move FAST.

Leverage (using other people’s money in the form of loans and gifts) is what makes real estate investing lucrative and accessible. Having the right leverage when you need it can really make or break your business.

And the truth is this:

Leverage is significantly affected by your credit score.

How Does Credit Score Affect Leverage?

Having a high credit score often comes with many perks. You might get offered better rates or terms, asked fewer questions, and experience faster approvals with less paperwork.

Unfortunately, while your credit score might make the loan process easier, a bad credit score can make your life a lot more difficult.

Let’s Check Out a Scenario…

If we look at a hypothetical purchase price of $375,000. In order to make the property cashflow, all our hypothetical investors must maintain a monthly mortgage payment of $2,000.

Even though each investor is looking at the same property and mortgage payment, their credit score affects their other payments.

Our Investors:

  • Jessica: She’s a dedicated investor who takes care of her credit, monitoring her score and keeping investment payments on business cards.
  • John: He uses personal credit cards for all his investments which has resulted in a score just above the minimum eligibility requirement for most traditional loans.
  • Sammy: He doesn’t monitor his credit and is convinced the banks just hate him. He never bothers to check his credit score.

The Numbers:

Each of our imaginary investors end up in a different financial situation purely based on their credit score. 

Even though their monthly payments are the same, Jessica ends up getting much more money at a lower rate. Meanwhile John and Sammy are stuck with smaller loans, less leverage, and a slow-moving process.

The Need for Speed

In our example above, Jessica has the advantage over these two investors because she can move through projects faster. She isn’t stuck waiting for approvals or trying to come up with so much additional money outside of her primary loan. 

Leverage makes real estate investing an even playing field for everyone out there, but credit scores can limit your leverage if you’re not careful. 

A good credit score opens doors and makes everything cheaper, easier, faster. 

To E.L.F.F. the real estate business, you need to set yourself up to win.

 

Read the full article here.

Watch the full video here:

by

How to Use Real Estate Leverage to Build Wealth

Categories:

Building wealth as a new investor is all about using real estate leverage. But what exactly is it, and how can you use it correctly?

If you’re new to investing, it can feel a bit daunting. There is so much new vocabulary and things to learn, and it can very quickly become overwhelming.

One of the main terms you’ll hear seasoned investors use is “leverage.” Leverage is the idea of using other people’s money (mainly through loans) to turn a profit for yourself—to start building wealth.  

Understanding leverage and using it correctly, is the key to unlocking the profits of real estate investing.

However, there are a few things to keep in mind to really maximize your success as a new investor:

1. Don’t let emotions take over your investing.

Investing is all about the numbers. Don’t give up when things are moving slowly, and don’t overextend yourself by becoming greedy. 

Be strategic at every level—from the properties you pursue to the contractors you use.

2. Be persistent.

You don’t need $500,000 in savings to make your first deal. You just need to be a doer. This business is all about grit and follow through. 

3. Look for the right leverage.

Not every loan is going to fit your needs. Once you have a property or project in mind, look for leverage that specializes in those areas. 

Do you need DSCR? Have you considered the BRRRR strategy? What about hard money?

4. Run through examples with an expert.

Both at The Cash Flow Company and Hard Money Mike (our sister company), we want you to feel confident and educated.

One of the first things we do when new investors come to us is sit down and run through some sample properties. This helps you understand the different fees you should look out for. 

Different areas have different fees, regulations, and options, and talking to an expert can greatly benefit you as a new investor.

5. Dive in.

The only way to start building wealth is to, well, start. 

It’s typically easiest to begin with a straight-forward fix-and-flip. But be on the lookout for properties of all kinds. Check your area every day and get in contact with realtors or wholesalers. 

As a new investor, it might take you a few tries before someone takes you seriously, but you need to go for it.

6. Commit to the business.

Real estate investing (even if you see it as a personal hobby) is ultimately a business. Don’t cut corners or only renovate with the cheapest fixtures. Every choice you make is an opportunity to build a good reputation.

Be thoughtful and hold yourself to a high standard.

 

 

Read the full article here.

Watch the full video here:

by

DSCR Loan Calculator: How to Find Your Ratio

Categories:

A DSCR loan calculator is an invaluable tool for real estate investors.

In the investment world, rental properties are a great source of wealth. The financial potential in fixing up places to then rent out is a very lucrative model, especially in the current housing economy.

What is a DSCR Loan?

DSCR loans are specifically designed for real estate investors who hold rental properties. 

The acronym literally stands for Debt-Service Coverage Ratio which is a fancy way of saying that the loan cares about the cash flow of a property.

The great news, especially for new investors, is that accessing these loans is less dependent on personal or business income. Even if you’ve just begun a new business, qualification for DSCR depends almost entirely on the potential value and expenses of the rental property itself. 

What is a DSCR Ratio?

The DSCR ratio is a simple calculation that compares income to expenses—the cash flowing in vs. the cash flowing out—on a single property.

Essentially, a DSCR ratio of 1 simply means that the income and expenses equal each other.

The DSCR ratio measures the break-even point of your investment. So long as you bring in the same amount of money as you invest, you won’t lose anything.

However, a DSCR ratio of higher-than-1 is even better. A higher ratio means that you’re bringing in more money than you’re spending—generating cash flow and building wealth.

Raising the Ratio

You can get a higher DSCR ratio in a few ways. 

1. Be mindful of your expenses.

Especially if you’re a new investor, make sure you’re shopping around for the best deals. 

Before you buy a property, research the typical costs for the area. Is there an HOA? Will you need any specialized insurance? Typical taxes?

Knowing these things beforehand can help you make more informed decisions and keep your costs lower.

2. Set rents intentionally.

Look at the average rents in your area. Remember, the higher your income (rents), the higher your DSCR ratio.

Let’s look at an example:

When rents equal our cash out, lenders may see your loan as “safe,” but it’s not making you any money. 

Instead, raising rents can help you end up with a higher DSCR ratio (and more money in your pocket).

When you raise rents, simply divide your expenses by your income (rents) to find your new ratio.

By raising rents by $200, we end up with a much better ratio (1.2) that actually creates wealth instead of simply covering expenses. 

Use Our DSCR Loan Calculator

To help you find your projected rents, expenses, and ratio, you can use our DSCR loan calculator. It’s a free, user-friendly download that will help you estimate your DSCR ratio to see if your investment property is going to break even.

Once you have an estimate for your ratio, it’s time to start looking for loans. 

Finding a DSCR Loan

Banks typically like to see ratios of 1 or higher. 

However, if you’re working with a property that might not break even, you can often still find a loan, but you might be stuck with higher rates.

You can also check out our website and inquire about the DSCR options we offer. 

Here at The Cash Flow Company, we scour the market to make sure we offer competitive rates and connect good people with good loans.

If you have questions or want to talk about a loan, reach out to us at Mike@TheCashFlowCompany.com.

by

How to Create Generational Wealth from High Interest Rates

Categories:

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.

by