Tag Archive for: OPM

How to Open the Vault to Real Estate Success

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Most real estate investors want to win. But only a few actually do. Why? Because they’ve figured out the right combination. If you’re wondering how to open the vault to real estate success, it all comes down to these three simple things:

  • The right property

  • The right main funding

  • The right available funds

Let’s walk through how to line these up and crack the code—just like the top 5% of real estate investors.

Step 1: The Property – Find the Right Deal

Everything starts with the deal. The property is the first number in the combination.

Sometimes it’s a simple, fast flip in a hot market. Other times, it’s a unique deal in a rural area or something that must close in 3 days. No matter what, each property is different—and each one requires a slightly different strategy.

Here’s the key: The profit is in the purchase. If you buy it right, you’re already on your way to success.

Examples:

  • A cookie-cutter flip you can relist in 3 weeks? That’s a great fast win.

  • A wholesaler deal that fell through and needs to close fast? That’s your chance to negotiate.

  • A larger project or something out of the box? You’ll need the right lender to match.

So the first part of how to open the vault to real estate success is knowing what kind of property you’re dealing with—and planning your next two steps around it.

Step 2: The Main Lender – Match It to the Deal

Now that you’ve found a good deal, you need the right lender. That’s your second number in the combo.

The lender you use depends on what the property needs:

  • Quick close in 3 days? You’ll need a fast private or hard money lender.

  • Tight profit margin? Then low-cost funding is a must.

  • Big rehab budget? Make sure the lender covers repairs.

Your main lender should be able to do most of the heavy lifting—usually 90% of the purchase and 100% of the rehab. But not all lenders fit every property. That’s why real estate investors who succeed have multiple lenders lined up, ready for different situations.

Remember, if the lender can’t get the job done, your profits vanish. So always match your lender to your deal.

Step 3: Available Funds – Be Ready to Move Fast

The final number in the combo is your available funds. This is what keeps everything moving. Without it, the vault stays closed.

These are the funds you’ll need to cover:

  • Down payments

  • Closing costs

  • Insurance

  • Escrows

  • Surprise expenses

Too many investors wait until the last minute. They scramble. They borrow from the wrong place. Or worse, the deal stalls and eats up their time and energy.

Your funds can come from anywhere—lines of credit, credit cards, HELOCs, savings, partners, or a mix of them all. What matters is being ready before the deal lands in your lap.

This is where most people miss out. But if you prepare in advance, you’ll be ready to act when the right deal pops up.

Real Success Means Being Prepared

Here’s the truth: How to open the vault to real estate success is not about luck. It’s about being prepared.

You need:

  1. A good property

  2. The right lender

  3. Funds that are ready to go

That’s how the top 5% do it. They move fast. They close deals. And they put more money in the bank with every project.

Want Help Opening Your Vault?

If you’re ready to stop missing deals and start unlocking profits, we can help. Download our free ebook on 100% financing and explore more free tools at The Cash Flow Company.

We’re here to help you understand the funding side, so you can spend your time where it matters—finding great properties.

So, next time you wonder how to open the vault to real estate success, just remember:
Line up the deal. Line up the funding. Line up the money.
Then, crack the combo and go enjoy life.

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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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Real Estate Investing Success: The Secret Formula Revealed

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Real Estate Investing Success: The Secret Formula Revealed

Real estate investing can be incredibly rewarding, but what’s the secret formula for success? The top investors follow two key principles. First, they are always on the lookout for properties. Second, they ensure they have the funding ready to seize opportunities when they arise. Let’s dive into these secrets and how you can use them to your advantage.

Always Be Looking for Properties

Top investors never stop searching for properties. They know that good deals can appear anytime and anywhere. In order to be successful, you must develop a habit of constantly scanning the market, attending open houses, and networking with real estate agents, as well as wholesalers.

Be Ready with Money

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.” Top investors have multiple funding options lined up so they can act fast when a deal comes along. Let’s explore these funding options.

1. Other People’s Money (OPM)

Using OPM means borrowing money from family, friends, or other investors. This method often involves no credit checks or income verification. Therefore, if you present a good deal, people will be willing to invest.

Example: Borrow $20,000 from a friend for a down payment, promising an 8-12% return, which is better than the 3-5% they’d get from a bank.

2. Home Equity Line of Credit (HELOC)

A HELOC, or home equity line of credit, allows you to borrow against the equity in your home or rental properties. This is like a credit card where you can withdraw money as needed, making it perfect for down payments, renovations, or purchases.

Example: Use a HELOC to withdraw funds to buy a fixer-upper, then pay it back as you flip and sell the property.

3. Business Credit Cards

Business credit cards are crucial as they offer financial flexibility without affecting your personal credit score. These cards can cover expenses such as materials and labor for your real estate projects.

Example: By using a business credit card for rehab projects, you can in turn avoid the impact on your personal credit score while keeping your finances organized.

4. Hard Money Lenders

Hard money lenders provide short-term loans based on the property’s value rather than personal credit scores. They are more flexible and can close deals quickly. This makes them ideal for flips or urgent purchases.

Example: Secure a hard money loan in order to purchase and renovate a property that is in a remote area. Properties that are more remote are often avoided by traditional banks.

5. Private Lenders

Private lenders are national companies that offer loans without requiring extensive documentation such as tax returns. They often provide up to 90% of the purchase price and can cover 100% of the renovation costs.

Example: Use a private lender to buy a rental property. Then use OPM or a HELOC to cover the down payment and renovation costs.

6. Local Banks

Local banks often have favorable terms for real estate investors. Although they may take longer to process loans, they offer lower rates and can provide lines of credit for future purchases.

Example: Partner with a local bank to secure a line of credit. This gives you the flexibility to buy new properties or cover ongoing project costs.

Building Your Funding Stack

In order to build your funding stack, start with the most flexible options. These include OPM and business credit cards. As you grow you can begin to incorporate HELOCs, hard money lenders, private lenders, and local banks. In doing so, you’ll be prepared for any opportunity that comes your way.

Conclusion

Success in real estate investing comes down to two things: always looking for properties and being ready with the funding to buy them. By building a robust funding stack, you can ensure you’re always prepared to seize the best deals and grow your wealth exponentially.

For more information and resources, visit The Cash Flow Company website. 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: Real Estate Investing Success: The Secret Formula Revealed

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Peer to Peer Lending: How to Win Big in Real Estate Investing

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Peer to Peer Lending: How to Win Big in Real Estate Investing

How can you win big in real estate investing? The answer is peer to peer lending or other people’s money. Throughout the past 12 years we have done business with a lot of people using OPM, also known as other people’s money. What is other people’s money? It is finding people within the community who have money that they want to invest. In using this form of leverage, it not only provides the funding you need, but it also gives the peer lender a better return on their money as well. Let’s take a closer look to see if OPM can help you win big in real estate investing!

Don’t let financing restrictions keep you down!

Over the past few years the Fed has been tightening things up, causing the lending pools to shrink. This is where OPM can help real estate investors. It can provide the funding they need without having to navigate the bank’s restrictions and increasing requirements. Just to clarify, OPM and peer to peer lending have been around since before banks were established. By going back to the basics you can get the funding you need to win big in the long run!

OPM can benefit everyone! 

Within our community, there are a ton of people who are looking to do something better with their money. Nowadays neither the stock market or banks are providing good returns on investments. By becoming an OPM lender or a peer lender, you have the opportunity to get 10% back on your investment as opposed to 5% from traditional methods. Real estate investors also benefit because they can not only fill their liquidity buckets for current projects, but future investments as well.

Follow the golden rule to succeed in this game!

It is important that you follow the golden rule when working with OPM lenders. The relationship can either be a positive one or a negative one depending on how prepared and honest you are. Real estate investors need to have everything set up correctly, ensure the deal is secure, and most importantly form an honest relationship with their OPM lender. In doing so, real estate investors will set themselves up for success.

What can OPM be used for?

Other people’s money or peer to peer lending can be used for anything and everything! Whether it’s for a down payment, fix up costs, or just setting money aside for a rainy day, there is something for everyone. As long as you set everything up correctly, this form of lending provides an easy and low risk option for not only the investor, but the peer lender as well. Whether it’s a portion of a project or an entire purchase, OPM provides the flexibility real estate investors need.

Now is the time to set yourself up to win! 

Peer to peer lending has something for everyone! This low risk option provides the flexibility you need to win in real estate investing. With confidence and a secured deal, the sky’s the limit to your success. Here at The Cash Flow Company we strive to help investors reach their investing goals. Contact us today to find out more about other people’s money and how you can get on the fast track to success.

Watch our most recent video, Peer to Peer Lending: How to Win Big in Real Estate Investing to find out more.

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How to Protect Your Peer Lenders

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How to Protect Your Peer Lenders

Today we are going to discuss peer to peer lending, as well as how to protect your peer lenders. What is peer to peer lending? To put it briefly, it is one person lending to another person. By working with people within the community, it helps others who want to make better returns on their hard-earned money. More importantly, it helps you achieve your investment goals quickly! 

There is something for everyone.

There is something for everyone with peer to peer lending. Whether it’s $5,000 to $3,000,000, someone in the community has the money you need. For example, funds can be used for down payments, fix up costs, small business start up costs, and even used to cover the entire project! This form of lending provides more flexibility, simpler underwriting, faster closing, and no prepayment requirements. It’s an excellent option for real estate investors. 

How can you guarantee success? 

It is important that real estate investors protect their peer’s money by putting them in secure deals. To clarify, a secured deal is with real estate and cash flowing. The first step in creating a secured deal is closing with a Title company and proper paperwork. This protects both the real estate investor, as well as the peer, to ensure everything remains honest.  Most importantly, don’t gamble with your peer’s money. Pay them back as agreed and be truthful. In doing so it will establish a positive relationship that will ensure future deals. By doing these things, you’ll create a win-win situation. 

Make the lending switch today!

Ultimately, every investor needs peer to peer lending! It’s a fast, cheap, and dependable funding option! 

Contact us today to find out how you can win in the real estate game.

Watch our most recent clip to find out more!

 

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Why You Should Use Peer to Peer Lending

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Why You Should Use Peer to Peer Lending

Today we are going to discuss what peer to peer lending is and why should you use it. As a result of all of the changes that have happened in the market over the past few years, real estate investors are looking for alternative funding. It is an excellent option that not only allows you to work with people in the community, but it creates flexible funding for your next deal. Let’s take a closer look at why you should make the switch! 

Removing the middle man.

Peer lending has been around for centuries, long before formal banks were established. Nowadays banks are increasing their requirements and shrinking their lending pool. In doing so, real estate investors are searching for alternative funding that is flexible and simpler. By using this form of lending, real estate investors no longer have to worry about meeting bank requirements. Instead, it removes the bank entirely and reintroduces the human factor. 

There is something for everyone.

There is something for everyone with peer to peer lending. Whether it’s $5,000 to $3,000,000, someone in the community has the money you need. For example, funds are used for down payments, fix up costs, small business start up costs, and even used to cover the entire project! This form of lending provides more flexibility, simpler underwriting, faster closing, and no prepayment requirements. It’s an excellent option for real estate investors. 

Make the lending switch today!

Every investor needs peer to peer lending! It’s a fast, cheap, and dependable funding option! 

Contact us today to find out how you can win in the real estate game.

Watch our most recent clip to find out more!

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What is Peer to Peer Lending For Real Estate Investing

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What is Peer to Peer Lending For Real Estate Investing

Today we are going to discuss peer to peer lending and why it’s beneficial for real estate investing. What is peer to peer lending? To put it briefly, it is one person lending to another person. By working with people within the community, it helps others who want to make better returns on their hard-earned money. Let’s take a closer look! 

Removing the middle man.

This form of lending has been around for centuries, long before formal banks were established. Nowadays banks are increasing their requirements and decreasing their lending. By using peer to peer lending, real estate investors no longer have to worry about meeting bank requirements. Instead, it removes the bank and reintroduces the human factor. Just to clarify, this doesn’t have to be done with family and friends, it can be anyone in your community. 

There is something for everyone.

There is something for everyone with peer to peer lending. Whether it’s $5,000 to $3,000,000, someone in the community has the money you need. For example, funds can be used for down payments, fix up costs, small business start up costs, and even used to cover the entire project! This form of lending provides more flexibility, simpler underwriting, faster closing, and no prepayment requirements. It’s an excellent option for real estate investors. 

How can you guarantee success? 

It is important that real estate investors protect their peer’s money by putting them in secure deals. To clarify, a secured deal is with real estate and cash flowing. The first step in creating a secured deal is closing with a Title company and proper paperwork. This protects both the real estate investor, as well as the peer, to ensure everything remains honest.  Most importantly, don’t gamble with your peer’s money. Pay them back as agreed and be truthful. In doing so it will establish a positive relationship that will ensure future deals. By doing these things, you’ll create a win-win situation. 

Make the lending switch today!

Every investor needs peer to peer lending! It’s a fast, cheap, and dependable funding option! 

Contact us today to find out how you can win in the real estate game.

Watch our most recent clip to find out more!

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What is Peer to Peer Lending and Why You Need It?

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What is Peer to Peer Lending and Why You Need It

What exactly is peer to peer lending and why do investors need it? Peer to peer lending, also known as other people’s money, is funding that is provided by family, friends, or individuals within the community to help you in your investments. Here at The Cash Flow Company, we have done about a billion dollars over the past 23 years using peer to peer lending. The majority of this money is not from family and friends, but instead from other people who are interested in making a good return. Investors and business owners are looking for other sources for their financial needs, which is where peer to peer lending can be an excellent alternative to traditional bank loans.

Who makes up the peer to peer lending community?

Peer to peer means that working with other people in the community who have just as big of a need as you do. These individuals might be in your church or individuals who are in retirement and need some extra income. They might have some money in a 401K, IRA, or extra savings that they would rather lend to you. Whether it’s 6%, 7%, or even 8% secured, it can help you with closing costs, while helping them get a better return on their money. 

Peer to peer is replacing banks.

We all know what is happening out there with affordability. The banks are starting to change their requirements, DSCR is getting into the 9% and 10% range, and fix and flip loans are anywhere between 11% and 13%. This lending squeeze is causing affordability, terms, and credit score requirements to all become tougher as well. Which creates the perfect opportunity to reintroduce peer to peer lending, which is something that has been around since before banking began. Peer to peer lending is taking out the banks and allowing people to begin working with humans again. 

Peer to peer gets deals done quickly.

Every good investor always has a few peer to peer lenders that they work with on a regular basis. These are individuals that the investors have built a good reputation with, and proved that they can produce quality work. By creating this foundation, it allows investors to act quickly on deals that come available instead of waiting for the bank’s approval. Peer to peer lenders also benefit because they are able to use money from their savings accounts or retirement accounts in order to get a better return that is something secured. It’s a great win-win situation for everyone!

Something for everyone.

Every investor or business owner should look into peer to peer lending. Even if it is just for a down payment, fix up cost, or any other expense in the real estate world. Businesses could also benefit from peer to peer lending for start up costs or unexpected business expenses. It doesn’t have to be $500K, but it could be! With lending becoming tighter, banks could require an additional 10%. In that case, where would you go for the additional money? The answer is peer to peer! There are all kinds of people out there with pockets full of money. You just need to find one that has what you are needing.

No need to make things awkward

Again, peer to peer lending is funding that is provided by family, friends, or individuals within the community to help you in your investments. While we all know that borrowing money can create an uncomfortable situation, there are three steps you should follow to prevent this from occurring.

  • Make sure you are putting them in good deals both now and in the future. 

These are deals that have a good chance of cash flowing. This can be done by making sure you have a good ARV or After Repair Value before jumping into a deal. 

  • Make sure you do the proper paperwork. 

Proper paperwork  includes a real note, a mortgage, or a deed of trust that’s secured on a property. If you do it right and secure it with real estate, then they are in a good position as a lender.

  • Get out there and mingle.

You need to get out there and talk to real estate groups.  Find out what they are doing, and who they are using for their peer to peer lenders. There are a ton of people who want to get into real estate, but they don’t want to get into the real estate game. Instead they just want a better return.

Start the process and do it right.

If you are a good keeper of other people’s money, then it will expand. You have to start the process, do it correctly, and come up with a good package to present to them. What should you include in your package or portfolio? Let’s take a look.

  • What the property looks like
  • Estimate of what the rent will be
  • Include comps and additional research
  • Proper documentation 
  • Your plans for the property (rent or keep)
  • How the investment will be secured

Don’t take the cheapest path.

People try to take the cheap way out by not wanting to pay for the title, or record a deed because it’s going to cost money. The truth is, that all of those things are going to happen if you use a traditional lender. However, banks are going to charge more with higher interest rates. The better you make your peer to peer lender feel on the first few deals, the better the process will be in the future. It is imperative that you treat them like a real lender so that everything is official and secure. If it is done correctly, it will build a bridge that may bring more friends later on. Just to clarify, more friends does not mean adding more people onto a single note. Instead, these additional peer to peer lenders can be used separately for future investment opportunities. 

Peer to peer keeps things simple.

We want to keep it simple and find the people that fit your needs. Not everyone needs $300K or $500K. They might just need $35K or $50K to get their business going. While they do have real estate to secure a loan, they might not have the income that the bank requires. That is where peer to peer lending comes in. Most peer to peer lenders don’t care what your income is. They want to know what the property looks like, if it will protect their money, and what you are going to pay them. Another way to look at peer to peer lending is like a personal DSCR. A DSCR doesn’t care about your income either. With the high interest rates of DSCR in this market, peer to peer lending is a comparable option for investors with rental properties.

Double your money!

Peer to peer is so important for those who are lending. They can easily make $8K on $100K. Banks on the other hand, would only have a return of $4K to $5K on the same amount if it were in a CD or savings account. Peer to peer lenders could easily double what they are making without having to worry about the inconsistency of the stock market. This is a time when things are tightening and people are having to look for new opportunities. Those who are prepared, ready, and have money, will succeed. 

Where do you start? We can help!

If you want to find out more about peer to peer lending and how to get started reach out to us. We have developed methods for both borrowers and lenders that will walk you through the process of getting started. We want to make sure that this market grows and that we get rid of some of the lenders and bankers out there. This will result in more money going into peoples accounts! The better it grows, the bigger it grows, and the more options people will have for their future. Our target is to make it a win-win for both peer to peer borrowers and peer to peer lenders. 

Contact us today to find out more about the lowest risk lending option with the best return! 

Watch our most recent video explaining What is Peer to Peer Lending and Why You Need It

We have created an excellent resource site for you to discover more about peer to peer lending. This information can be found at www.TheNoteShop.com.

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There is Hope in a Tough Housing Market

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There is Hope in a Tough Housing Market

Things have changed, bankers have changed, and lenders have changed. You should always have control over your lending options. There is a glimmer of hope in this tough housing market. Investors can empower themselves by setting things up right, cultivating relationships, and knowing their numbers. You can still make a lot of money in this market as long as you understand the rules in the game and have the flexibility to change with the times. How do you get started? Let’s take a closer look at what you need to do to succeed.

What do investors need to do?

This is the time when the select few will make a lot in the near future. If you want to take advantage of this, then you have to do certain things. Let’s take a closer look at real estate investment essentials for today’s market. Also known as the pillars of success.

1. Find a lot of properties/find good properties

It is important to buy when everyone else is running away. A successful investor needs to determine where they will find properties, connect with others to start buying better properties, and understand the value of the property. The better the property you find, the better chance you have to get the financing you need. Especially from private lenders or hard money lenders. 

2. Set up your business correctly  

It is imperative that you set up your business to look like you are serious about investing. This includes setting up your business name, establishing business accounts, and applying for business credit cards. In setting these things up correctly, banks and lenders will know that you will do what it takes to succeed.

3. Make sure you have a diverse source of funding 

Start by looking for lenders who are actually lending, and build a relationship with them. In taking the time to build that foundation, you will be the person who goes to the top of the pile. Lenders will not be willing to help investors who don’t return calls, or those who are unprofessional. Finally, broaden your horizons by looking at other options to see who can help create the wealth you want. 

4. Find contractors and resources that will help you complete repairs.

We still see properties that are selling like crazy. These are in good locations and have quality work done. It is important to find contractors and resources that will help create a product that people will want to buy. Don’t skip on the flips! Take the time to find a team who can make your property shine. This will result in a shorter sell at a better return for you.

Creating the leverage you need to succeed.

Make sure that your business is set up correctly from the very beginning in order to create wealth. In doing so, you will be able to open up business credit cards, business lines of credit, and seek out OPM or other people’s money. An underused source of funding is OPM. Nowadays more people are searching for better returns, you can be their solution. Investors who create these buckets of money will set themselves up to win. It is also imperative that you have a good credit score and a good business history so you will be more attractive to the lending community. Do you need help with raising your credit score or locating OPM. Contact us to find out more! 

In Conclusion

There is a glimmer of hope in this more restrictive economic environment. Those who set things up correctly in the beginning will have an advantage over those who do not. It is important to always remain in control amongst all of this change. By setting your business up correctly, increasing leverage, doing research, and creating relationships, the sky’s the limit for your success. This is one of the most valuable times to get into real estate investing! Contact us to find out more.

At The Cash Flow Company we can help you find the funding you need and guide you through this market. 

Watch our most recent video to find out more about Real Estate Investment Essentials for Today’s Market.

 

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How High Interest Rates Impact Real Estate Investments

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How High Interest Rates Impact Real Estate Investments

Today we are going to paint a picture of how high interest rates impact investments for those who fix and flip properties or have rentals. Our goal is to show how rates, credit scores, and LTV can affect your ability to not only qualify for a loan, but also cash flow on the property. We all know what is happening with the Fed and how it is impacting us, but what does that look like on paper? The example that we are reviewing today will provide an excellent visual of how everything plays a role in the real estate game. DSCR is the product we are using today because it is one of the most popular out there.

Type of property Purchase price Appraisal 

average 

rents in area 

 Amount down Financing 

30 year loan

 Fees

Taxes

Insurance

HOA

 DSCR 

(LTV) 
Rental $250k $1,950 20% 80%

($200K loan) 

 $300 75%
Credit Score DSCR rate Payment amount 

principle and interest

 Payment amount plus fees  Cash flow 

based on appraisal 
Client 1 680 9.75% $1,718 $2,018 -$68.00
Client 2 720 8.99% $1,608 $1,908 +$42.00
Client 3 780 8.75% $1,573 $1,873 +77.00

What about Conventional and Fix and Flips?

This example is also representative of a conventional, and fix and flips as well. In a nutshell, the more you pay on interest, the less properties you can handle. 

What is the appraisal?

An appraisal determines the average of rents in the neighborhood and uses this amount in the underwriting. The amount can change depending on if you have a couple years of history with rents that exceed the determined amount. The increasing rates are making it extremely difficult for properties to hit the expected rent amount.

What is the DSCR rate?

DSCR rates are determined based on your LTV. A credit score below 680 typically lowers the LTV from 80% to 75%. Therefore, you would need to put in more money up front on each purchase. If you’re looking at a DSCR with a credit score of 679, you will either be declined or it will flip you into a non ratio DSCR. Which means that your rates are going to be higher. Is a DSCR loan right for you? Visit our website to find out more.

The power of credit scores.

Your credit scores not only affect your rates, but they also will impact your cash flow on the property. Do you need to raise your credit score in order to qualify? We can help you get your credit scores back on track with our 911 loan. Contact us today to find out more. As credit scores go up, you will be able to capture more monthly income and create wealth.

How do rates affect cash flow?

As rates continue to rise, your payments are going to increase as well. This in turn causes your cash flow to suffer, and in most cases it will be a negative. Cash flow positive on the other hand, means that there are going to be more properties available for more investors. So keep your eye out for this change!

Rates are decreasing!

Over the past three weeks rates have been decreasing. We may be at the peak right now and many are predicting that rates are going to significantly drop in 2024. It is imperative that you stay up to date and keep track of current trends. We have created a Weekly Investor Mortgage Report for you! Reach out through our website or email to find out more.

Keep increasing your leverage!

In real estate investing leverage is the key to success. It is what makes your wealth and creates your income. By using banks, other people’s money, and filling your leverage buckets, you will set yourself up for success.  

In Conclusion.

I wanted to paint this picture so you can understand how 3 different people compare side by side on the same property. Investors can either be denied or approved just based on their credit score, or where the markets are. While being denied is discouraging, it is important that you understand why you didn’t qualify and why properties are not cash flowing right now. If you want to impact where you are and where you are going in the New Year, then check out our website. We have a lot of ways to positively impact your credit, as well as a weekly newsletter. We are here to help you get on the path to success. 

Watch our most recent video to find out more on How High Interest Rates Impact Real Estate Investments.

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