Tag Archive for: real estate investing

How to Fund Your Fix and Flips FAST

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

Today we are going to discuss how to fund your fix and flips fast! Flipping homes is all about speed. The faster you get your project done and on the market, the more money you make. But if your cash flow isn’t ready when you need it, everything slows down.

The Biggest Problem: Cash Flow

Many investors believe that since the lender funds the deal, they shouldn’t run into money problems. But here’s the reality: lenders hold escrow funds for your repairs, and they only release money after the work is completed. That means you need money upfront to:

  • Pre-order materials like doors and windows.
  • Pay contractors so they can schedule and start work.
  • Cover costs for permits, architects, or engineers.

This creates a major issue. You need money to start the work, but the lender only gives you money once the work is done. So, how do you fix this?


The Solution: Get Your Money Bucket Ready

The best fix-and-flip investors don’t wait until closing to figure out how they’ll cover upfront costs. They plan ahead by having fast-access funds available. This doesn’t mean you need a huge bank account—just a plan for immediate access to cash when needed.

Where Can You Get Fast Money?

  • Business or personal lines of credit – Available cash when you need it.
  • Business credit cards – Use them strategically to cover upfront costs.
  • Private lenders or partners – Borrow short-term funds from other investors.
  • Savings reserves – If available, set aside cash before you start.

Real Investor Example: Flipping in 4 Weeks

One investor we work with flips homes in four weeks or less—even with major structural repairs. How? He has his money bucket ready. He pre-orders materials, pays contractors upfront, and moves through the project without waiting on lender disbursements. The result? More flips, more profits, and less stress.


The Cost of Not Being Ready

If you don’t have a plan for funding your upfront costs, delays pile up fast:

  • Lost time: Every extra month costs interest, taxes, and insurance.
  • Lost contractors: If you don’t pay them, they move on to other jobs.
  • Missed market opportunities: A project meant for peak selling season (May-July) could get delayed into winter, making it harder to sell.

What happens next? Investors who start without a plan often lose profits or even go into debt. We don’t want that to happen to you.


Get Ahead: Build Your Money Bucket Now

Investing is about learning before jumping in—not figuring it out as you go. The smartest investors set up their money bucket first. This includes:

✅ Having a plan for upfront costs. ✅ Knowing where your money will come from. ✅ Moving fast once the deal closes.

Even using short-term credit at 24-28% is often cheaper than missing deadlines, racking up interest payments, and losing months of potential profits.


Free Guide: Learn How to Fund Your Flips the Right Way

Want to set up your money bucket and avoid costly delays? Contact us today and Download our FREE ebook: Money Buckets for Investors and get step-by-step instructions on how to fund your fix and flips FAST.

Watch our most recent video to find out more about: How to Fund Your Fix and Flips FAST

Download free Money Bucket ebook: https://bit.ly/3EmqQiS

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Flipping Homes Is a Race—Don’t Let Money Hold You Back

Today we are going to discuss: The Hack That Keeps Your Fix and Flip Moving Without Delays. Fix-and-flip success comes down to speed. The faster you complete a project, the sooner you get paid. But what if your money is stuck at the starting line? Delays can eat away at profits, add stress, and even cause you to miss the best selling season. So, what’s really slowing you down?

The answer: cash flow.

You need money at the right time to keep your project moving. But even if you have a lender, their funding process can still hold you back. Let’s break it down and, more importantly, fix it.

Why Do Lenders Slow Down Fix-and-Flips?

You might think, “My lender has 100% of my money, so why should cash flow be an issue?” In theory, that sounds right. But in reality, lenders only release money when specific work is completed.

Understanding Escrows

  • Escrow funds are the money your lender sets aside for repairs.
  • Lenders don’t give you money upfront. They pay for completed work, not future work.
  • You must finish part of the project first before the lender releases more funds.

That’s where the problem starts. You need cash before work begins—to order materials, pay contractors, and get permits. But the lender won’t release funds until work is already done. So how do you keep the project moving?

The Key to Fix-and-Flip Speed: Your Money Bucket

The most successful investors have a strategy to avoid cash flow problems. They set up a Money Bucket—a pool of funds they can tap into whenever they need it.

How the Top Investors Keep Projects Moving:

  • Pre-fund expenses using available cash, credit lines, or other financing.
  • Pre-order materials like doors and windows to avoid supply delays.
  • Secure contractors by paying deposits and keeping them scheduled.
  • Cover upfront costs for permits, architects, and engineers.

Having quick access to money means you can start work immediately after closing, avoiding the typical delays that stretch a project from weeks to months.

Real Example: A Flipper Who Gets It Right

One of our investors consistently flips properties in under four weeks—even with structural repairs. How? He has his Money Bucket ready.

  • He pre-orders materials before closing.
  • He has a contractor lined up and paid to start immediately.
  • He uses a credit line to cover expenses until escrow funds kick in.

While others sit waiting for money, he’s already halfway through his project.

The Cost of Delays: Why You Can’t Afford to Wait

Every month your project stalls, you lose money.

  • Mortgage payments stack up.
  • Property taxes and insurance keep adding up.
  • Contractors move on to other jobs, pushing your timeline back even further.
  • Market conditions change, and you risk missing the best selling window.

For example, if your goal is to list a property in May but delays push it to November, you could see fewer buyers and lower offers—killing your profits.

How to Build Your Money Bucket

To keep your fix-and-flip moving fast, you need access to funds—before lender escrow payments arrive.

Ways to Fund Your Money Bucket:

  • Personal savings – Keep a reserve set aside.
  • Business credit lines – Use revolving credit to cover short-term gaps.
  • 0% intro APR credit cards – A great option if paid off quickly.
  • Private money – Borrow from trusted sources who understand your timeline.

Even if you put $10,000–$15,000 on a credit card at 24% interest, that’s still cheaper than carrying extra mortgage payments for months.

Take Action Now: Be Ready Before You Flip

Successful fix-and-flippers don’t wait until closing to figure out cash flow. They prepare in advance. Contact us today to find out more!

Build your Money Bucket before you buy your next flip. ✅ Know your lender’s escrow process and how long draws take. ✅ Have funding sources ready so you never have to pause work.

Need help setting up your Money Bucket? Download our free guide below and learn exactly how to keep your fix-and-flip moving fast.

Download free Money Bucket ebook: https://bit.ly/3EmqQiS

Watch our most recent video to find out more about: The Hack That Keeps Your Fix and Flip Moving Without Delays

 

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Today we are going to discuss the #Trick 1 you need to try before your next loan application. Are you preparing to apply for a loan? Whether it’s a DSCR loan, fix-and-flip financing, or a line of credit, there’s one simple trick to boost your credit score and secure better terms. Let’s walk through this quick, legal strategy to save you money on rates, fees, and more.

Why Your Credit Usage Matters

Before diving in, let’s get clear on why credit usage is key. Credit usage, or utilization, makes up 30% of your credit score. This is the balance reported to credit bureaus divided by your total available credit limit. The lower your usage, the higher your score—and that directly affects:

  • Your loan-to-value ratio (LTV)
  • The interest rate you qualify for
  • Your overall loan approval chances

What’s the Goal?

Keep your credit usage below 30%. Anything lower shows lenders you’re financially responsible. However, avoid a 0% balance—credit bureaus prefer to see some usage.

Here’s an example:

  • Credit limit: $10,000
  • Current balance: $5,000
  • Usage: 50% (too high!)

To hit the ideal range, bring your balance under $3,000, or 29% usage.

How to Lower Credit Usage

  1. Find Your Statement Dates
    Check your credit card statements for the closing date. This is when your balance is reported to credit bureaus.
  2. Pay Before the Statement Date
    Pay your balances before the closing date to ensure the lower amount gets reported.
  3. Focus on Credit-Reporting Cards
    Personal credit cards and some business cards (like Capital One) report balances to credit bureaus. Use these cards strategically, or switch to non-reporting business cards to avoid usage issues altogether.

Quick Example:

Let’s say you have the following cards:

  • Capital One: $5,000 balance, $10,000 limit
  • Chase: $4,000 balance, $5,000 limit
  • American Express: $7,500 balance, $10,000 limit

Total credit: $25,000
Current balances: $16,500
Usage: 66% (too high!)

To get under 30%, pay down:

  • $2,000 on Capital One
  • $4,000 on Chase
  • $5,000 on American Express

New balances: $5,500
Usage: 22% (perfect!)

Why It Pays to Try This

Lowering your credit usage before applying for a loan can:

  • Improve your credit score
  • Qualify you for better interest rates
  • Save you thousands over the loan term

For example, a DSCR loan could offer an extra point off your rate by simply boosting your score. Over a 30-year loan, that’s a huge savings!

Final Thoughts: Stay Ahead of the Game

This trick is simple but effective. Anytime you’re applying for new credit, check your usage, know your statement dates, and pay down balances early. If you’re tired of juggling personal credit cards, consider switching to business cards that don’t report to bureaus.

Want to learn more about setting up the perfect money bucket to fund your deals? Check out our guide here.

Watch our most recent video to find out more about: #Trick 1 You Need to Try Before Your Next Loan Application

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Today we are going to answer the question, “how can commercial loans help real estate investors?” Commercial loans are a powerful tool for real estate investors looking to grow their portfolios. These loans are designed for properties like apartment buildings, office spaces, retail locations, and even mixed-use buildings. They offer flexibility and larger funding amounts compared to traditional residential loans.

Imagine you want to purchase a small apartment complex. A commercial loan allows you to secure funding based on the property’s income potential rather than your personal income. This opens doors for investors who may not meet strict income requirements for other loan types.

Commercial loans also provide tailored solutions for different projects. Whether you’re buying, renovating, or refinancing, these loans can be customized to meet your needs. For example, if you’re rehabbing a mixed-use property, a commercial loan can help cover the purchase price and renovation costs, keeping your project moving forward.

Another benefit? These loans often come with longer terms and more flexible repayment options. This can make managing your cash flow easier, giving you the breathing room you need to succeed.

For real estate investors, commercial loans are not just about funding, they’re about opportunities. They enable you to take on bigger projects, grow your portfolio faster, and maximize your returns.

Contact Us Today! 

How can commercial loans help real estate investors? Contact us today to find out more!

Free Tools For You! 

We also have free tools available! Download the Quick Deal Analyzer to see if your potential rental property is going to be a good investment!

Learn more!

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

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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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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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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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Today we are going to answer the question “what is ARV and why is it important?” ARV, or After Repair Value, is a term every real estate investor should know. It’s the estimated value of a property after all repairs and upgrades are complete. In simple terms, it’s what your property could sell for when it’s in top-notch shape.

Why is it so important? It’s your road map to a profitable deal. Knowing the this number helps you figure out how much you should spend on a property and its repairs. It also shows if your investment is worth it in the end.

Here’s an example: Imagine you find a fixer-upper listed at $150,000. After some research, you learn similar homes in great condition sell for $250,000. That’s your ARV. Now, let’s say the repairs will cost $50,000. If you buy the property, your total investment would be $200,000. With an ARV of $250,000, you could make a $50,000 profit, before any extra costs like loan interest or closing fees.

It also matters when you’re looking for financing. Lenders often use ARV to decide how much they’ll loan you. The better your numbers, the more likely you’ll secure funding for your project.

In short, ARV is your guide to smart investing. It keeps your plans realistic and helps you stay on budget. Want to dive deeper? Check out our website today! 

Contact Us Today! 

Are you still wondering “what is ARV and why is it important?” Contact us today to find out more!

Free Tools For You! 

We also have free tools available! Download the Quick Deal Analyzer to see if your potential rental property is going to be a good investment!

Learn more!

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

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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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Today we are going to share the tale of two real estate investors. Real estate investing can be incredibly rewarding. But as with any venture, preparation is key. Let’s dive into the story of two investors and uncover why one succeeded while the other struggled. Their journeys highlight the importance of being money ready.

Investor 1: The Prepared Pro

Investor 1 started with a clear plan and a solid understanding of the process. They knew they needed to budget not just for the obvious costs but also for unexpected surprises. Here’s what they did right:

Setting the Budget

  • ARV (After Repair Value): $400,000
  • Expected Profit: 15% or $60,000
  • Total Budget: Included 6 months of carry costs, repairs, and selling costs.

Smart Planning

Investor 1 allocated 20-40% of their total project budget as accessible funds. This included:

  • Down payments
  • Carry costs like taxes, insurance, and HOA fees
  • Staging expenses
  • Unexpected repairs

For example, when they opened a wall and found outdated wiring and copper plumbing, they had $7,500 available to cover the costs. This allowed them to keep the project on schedule and avoid costly delays.

Staying on Track

Thanks to their preparation, Investor 1 completed the project in 5 months instead of the planned 6. They saved on carrying costs and walked away with a profit of $55,000. They were ready to move on to their next deal, stress-free and confident.

Investor 2: The Unprepared Dreamer

Investor 2 had the same goal: a $60,000 profit on a $400,000 ARV property. But they underestimated the importance of being money ready. Let’s see where things went wrong:

Overlooked Expenses

Investor 2 didn’t budget for:

  • Unexpected repairs
  • Additional months of carrying costs
  • Extension fees for their loan

When they faced the same $7,500 unexpected repair as Investor 1, they didn’t have funds available. Instead, they had to:

  • Seek gap funding from lenders, costing an extra $2,000.
  • Delay the project by weeks, leading to higher costs for labor and rescheduling contractors.

Delays and Costs Add Up

The delays pushed their timeline from 6 months to 10 months. This meant:

  • 4 extra months of taxes, insurance, and interest at $3,000 per month ($12,000 total).
  • A 5% price drop on their property to sell in a slow market, losing $20,000.
  • A loan extension fee of $5,000.

The Outcome

Instead of $60,000, Investor 2 ended up with a profit of just $15,000—and a lot of stress. While Investor 1 moved on to their next deal, Investor 2 was left wondering where things went wrong.

The Big Lesson: Be Money Ready

The difference between these two investors comes down to preparation. Here’s what you can learn:

  • Budget for the unexpected. Set aside 20-40% of your project’s total budget in accessible funds.
  • Keep your project on schedule. Avoid delays by having funds ready to handle surprises.
  • Plan for speed. The faster you complete a project, the less you spend on carrying costs and the more you profit.

Get Help Before You Start

Don’t let unexpected costs derail your investment dreams. With the right planning and support, you can not only avoid costly mistakes, but you can maximize your profits as well. If you need help setting up your money buckets or finding the best loan options, reach out. We’re here to help you succeed in real estate investing. Contact us today to find out more!

Watch our most recent video about: the tale of two real estate investors

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