Tag Archive for: real estate investing

How to Buy a Property with ZERO Money Down

Is investing in Real Estate with Zero Down for real?

No money to put down on your first investment?

Use these 3 tips to get started.

You don’t have enough savings. After all, flipping is how you want to start making money, right? And you want to begin that real estate investment journey now.

But if you don’t have the money to begin with… how are you even supposed to start?

We see people do it every day. Here are the 3 main ways people have made successful real estate careers with zero money down.

 

How to Buy a Property with ZERO Money Down

  1. Get a HELOC

    If you already own a house, the first tactic you should use to get money for real estate is to get a HELOC.

    HELOC stands for “home equity line of credit.” It’s basically a second mortgage that works like a line of credit that you can use and pay off over and over again. You’re able to use it for multiple properties.

    You could get a HELOC from credit unions or banks. We usually send our clients to credit unions because they tend to have better options for HELOCs. A credit union will likely give you:

    • A longer term
    • Fixed rates
    • A little more money

    If you already own a home, go to a local credit union and ask them about a HELOC first.

  2. Start a Partnership

    But what if you don’t have a house, so you can’t get a HELOC? A partnership might be your next best option. There are two routes you can go.

    Family or Friends

    You can ask a family member or friend to be a money partner. They can provide you with the cash to use for a property’s down payment, or for the repairs of your flip.

    The close and personal aspect of partnering with someone you know can be the best option for some people. In other cases, it’s nice to partner with a person or entity who’s not so personal.

    Outside Partner

    You could also look for an outside partner.

    For example, Hard Money Mike partners with people who find good deals but don’t have the money to make that first purchase. We help them finance the whole amount so they can get into their first two or three deals. After letting us help fund their first three deals, most people come out with enough money to do their own down payment and repair costs on their next property, with no partner.

    Beginning investors can make their business independent quickly when they seek out the right partner to get them started.

  3. Use a credit card (Investing in Real Estate with Zero Down)

    Many people hesitate to use a credit card to fund their investments – for good reason. But when done right, a 0% credit card can be the simplest way to start investing with no money down.

    What are the wrong ways to use a credit card for a fix-and-flip?

    • Getting a credit card with a high APR.
    • Using the card to go out and have fun.
    • Not paying back the charges you put on the card.

    If you’re smart, it can be easy to use a credit card the right way. Start with a 0% APR card. Understand that it’s a tool for your business, so treat it that way. Only use the card for repairs, contractors, and other costs associated with your flip.

    Take out the money, sell the property, then clear the card back to zero before moving onto your next project. Don’t let the debt accumulate. Don’t keep a balance from deal to deal. This is where credit card use falls through for most investors. They don’t use the money from the sale to fully pay off the card, and it gets out of hand fast.

    But if you do it right, a credit card works as a great way to help beginners get the funds needed to start in real estate.

What Are Other Ways to Investing in Real Estate with Zero Down?

Clients come to us wanting to get into real estate but think they need money in the bank. That’s not always the case.

Here are the 3 key ways we see people start their investments with no money:

  1. If you already have a mortgage, get a HELOC.
  2. Start with money from family, a friend, or an outside partner.
  3. Use a 0% credit card to fund the costs of your investment.

These aren’t the only ways we’ve seen people succeed with a new real estate career.

Find out more on how to leverage up your real estate investments on our Youtube channel.

The Cash Flow Company can help you with all real estate investor loans.

We also can help you find and set up real private money from those around your area.

We scour 100’s of loan programs across the country every month locating the best investor friendly loans.

Investing in Real Estate with Zero Down

 

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How to Launch Your Retirement Through Private Lending

How to Launch Your Retirement Through Private Lending

Launch your retirement!

The most common ways to save for retirement are the stock market, 401Ks, and other retirement savings accounts. They’re common journeys most people take when they start putting money away for their future.

But did you know there’s another frontier to explore when it comes to preparing for retirement?

Although it’s a frontier that’s been around for centuries, and it’s a frontier that’s helped many, it’s not exactly a frontier people think to explore.

But this frontier can lead to lucrative cash flow and a safe, comfortable, and happy future.

We’re talking about private lending.

How to Launch Your Retirement Through Private Lending

Private lending can launch your retirement savings into a whole new universe. Compared to the stock market, which is volatile, and retirement savings accounts, which are questionable, private lending is consistent, easy, and safe. And, most importantly, profitable.

What is private lending?

Simply put, you become a bank for someone who needs cash. And, in the real estate world, that someone is a fix and flipper, rental owner, or another property investor.

These real estate investors can’t always rely on a traditional bank for funding.  Either because they can’t meet a bank’s strict qualifications, or because they need to buy a property super fast…and banks don’t close deals super fast.

So, they turn to private lenders. Private lenders, like you, lend them the money they need and charge them interest for it.

The amount of interest you charge is up to you. Most private lenders make between 5% and 12%. You can’t make that kind of interest by letting your money sit in a bank. And you can’t know for sure you’ll make it through the stock market.

So, how do you become a private lender? Well, there are a couple of ways to get going.

The easiest way is through companies like ours. We connect private lenders with real estate investors, and help with all the paperwork and other steps that secure your money.

Or, if you’d rather explore the private lending frontier on your own, then you can work directly with real estate investors. This is best known in the business as OPM (Other People’s Money). OPM puts you directly in the pilot’s seat, and you get to decide your path…and the risks that come with it.

Private lending is definitely a worthwhile adventure! If you’re ready to learn more about it and launch your retirement, then our team is always here to help.

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What is a Private Note?

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What is a Private Note?

What is a Private Note?

You have a variety of options when it comes to making money for retirement.

The most obvious and popular ways are retirement saving accounts and the stock market. But retirement saving accounts can be questionable, and the stock market constantly fluctuates up and down.

But, fear not. Did you know there’s another, more secure way to save up for your future?

We’re talking about investing in private notes. They’re an easy, lucrative method to boosting your cash flow…and your retirement funds.

What is a Private Note?

You see, when people think about investing in real estate, they assume they have to fix and flip or rent properties. But private notes allow you to make money in real estate without ever picking up a hammer.

Basically, you become a bank for a fix and flipper or a rental owner.

But what is a private note?

Well, in a nutshell, it’s an IOU.

Essentially, a private note is an agreement between you and your borrower, and it outlines things like:

  • How much money you’ll lend.
  • The amount of interest you’ll charge.
  • The length of time you’ll let your borrower use your money.
  • And the date you expect them to pay you back in full.

And if you’re thinking, “Well, what if they can’t pay me back?”, then don’t worry.  Your money is secured by the property. So, as long as you do your homework and make sure it’s a worthwhile investment, then your money is safe and sound.

Now, how do you actually create a private note?

Well, the easiest way is to work with a company like ours. In addition to creating a secure private note on your behalf, we help with all the other steps to private lending. Those include:

  • Finding real estate investors who need funding.
  • Interviewing them and reviewing their portfolio to determine how much you can trust them with your money.
  • Analyzing properties to make sure they’re worth the investment.
  • Handling escrow draws.
  • And overseeing the life of the loan, including all payments, extensions, and modifications.

Of course, if you’d rather handle all of those steps by yourself, then you can simply hire an attorney to create your private note.

Bottom line, private notes are an excellent way to prepare for retirement, especially if you want to invest in real estate without breaking a sweat.

Ready to talk about investing your money in private notes and securing your future? Great! Our team is always here to chat.

Happy investing!

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Why You Can Be Thankful as a Private Lender

Why You Can Be Thankful as a Private Lender

If you’re thinking about becoming a private lender, then there are a few things you can look forward to being thankful for.

Why You Can be Thankful as a Private Lender

Make Money

First, the most obvious, can make money in an easy, secured way. You don’t have to pick up hammer, worry about contractors, or stress out about getting a big project done in a short amount of time. All you have to do is find people who like fixing and flipping and lend them the money to do all of that hard work.

Boost Retirement Savings

Second, you can take the money you make and boost your retirement savings. You don’t have to worry about unpredictable fluctuations in the stock market or depend on low interest rates at the bank. You can make consistent, solid income with a safe and secured investment.

Positive Impact

Third, and the least thought about, you can make an extremely positive impact on your community.

Without your ability to lend money to fix and flippers, rental owners, and other real estate investors, communities would slowly deteriorate and eventually fall into disarray.

Think about the HGTV show, Good Bones. A mother and daughter team up to fix homes that have aged and withered throughout their neighborhood. But, home by home, they’ve revitalized and given their community new life. They given it value, once again.

That’s what all fix and flippers do.

They find neighborhoods, towns, and cities that have fallen into disrepair, and breath fresh life into them. By doing this, they revive the economy because people want to live there again. Schools, safety, and quality of life rise drastically.

But the only way this all can happen is if fix and flippers can find money to do their work. And many of them can’t walk into a bank and get a loan, either because they can’t meet the bank’s strict requirements, or because they need to buy a property FAST. We’re talking about closing homes within days, not months. Banks can’t do that.

So, they need private funding from people like you. People who have money they want to invest.

So, why not invest it in your local community…or a community of your choosing? Say, the hometown you grew up in? Perhaps it’s seen better days and needs some new life before it fades and falls off the map completely?

Private lending is something you can truly be thankful for. So why not give it a try if you’re looking to invest in real estate the easy way?

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How to Make Money in Real Estate: Private Lending is Ancient

How to Invest the Ancient Way: Private Lending

Since the beginning of time, people have needed money, and they’ve always needed to borrow it from someone.

Why not you?

You see, when it comes to making money in real estate, most people assume they have to fix and flip or rent properties. But there are other ways that don’t involve picking up a hammer.

And one of those ways is private lending.

How to Invest the Ancient Way: Private Lending

What is private lending?

Private lending is exactly what it sounds like: you lend money to someone who needs it.

In the real estate world that means you lend it to someone who’s looking to fix up a property and either flip it or rent it.

It’s just like in the olden days when a person needed a loan and got it from a bank, a business tycoon, or a neighbor. Or just about anyone else who had money to lend.

So, how do you make money in private lending? Well, it’s fairly simple. You:

  • Find someone you trust
  • Create a secured, private note
  • Collect interest payments.

Now, you might be thinking, “What is a private note?”

It’s basically an IOU.

Essentially, a private note is an agreement between you and your borrower, and it outlines things like:

  • Loan amount
  • Interest rate
  • How long you’ll let your borrower use your money (aka, the term)
  • And the date you expect them to pay you back in full.

And if a borrower can’t pay you back, then fear not. Your money is secured by the property. So, as long as you do your homework and make sure it’s a worthwhile investment, then your money is safe.

And if you’d rather someone else do the homework, including prepping the private note and overseeing the life of the loan, then you can use a licensed and experienced company like ours to handle it. All you have to do is kick back, relax, and watch your interest payments arrive in your bank account.

Ready to talk about investing your money in real estate without picking up a hammer? Great! Our team is always here to chat.

Happy investing!

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How to Retire: Retirement Scares Me

How to Retire: Retirement Scares Me

Retirement is just around the corner. It’s tiptoeing closer and closer…But, you’re not ready.

And that TERRIFIES you.

Because the stock market is constantly up and down, banks aren’t paying much if anything, and retirement accounts like PERA are questionable.

So, what can you do to prepare for retirement? Because whether you like it or not, it’s creeping towards you.

Well, one of the best and most secure strategies is private lending.

How to Retire: Retirement Scares Me

There are thousands of fix and flippers, landlords, and other real estate investors who can’t get a traditional loan through a bank. So, they turn to private lenders.

Someone like you. Someone who has a chunk of money they’d like to safely invest so they can boost their income…and their retirement savings.

So, how exactly do you make money in private lending? Well, it’s pretty easy, actually.

Step 1

Find a trustworthy real estate investor who needs cash to buy a fixer upper.

Step 2

Create a private note that includes the interest rate for your loan. Rates vary in private lending, so it’s your decision on how much you charge.  And how much you charge depends on how much you trust your borrower.

Step 3

Collect interest payments and boost your retirement savings.

That’s the basic gist. And if you’d rather have someone else find trustworthy real estate investors, create your note, and oversee the life of the loan, then you can use a licensed and experienced company like ours to help you handle it.

Here’s the thing. Since the beginning of time, people have needed money. And they’ve always needed to borrow it from someone. Why not you?

Don’t let retirement scare you. Take control now and start investing your money in a way that will help you face retirement…and face it with confidence.

Ready to talk about investing your money in real estate? Great! Our team is always here to chat.

Happy investing!

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Become a Private Lender: Invest in Real Estate without Flipping or Renting

Private Loans: Invest in Real Estate without Flipping or Renting

Do you know about private loans?

And did you know you can invest in real estate without resorting to fixing and flipping or fixing and renting?

It’s true. Everyone can put their money to work, even if they don’t want to put their muscles to work. If you want, you can skip the hammers, ladders, and paint. There’s no need to groan over dust-covered floors, clothes, and, well, everything. And forget about stressing over contractors and delayed projects. Because you can invest in real estate without ever stepping foot inside a property.

How to Invest in Real Estate Without Flipping or Renting

How is this possible? Well, it’s actually pretty easy.

Rather than rolling up your sleeves and searching, buying, fixing, and selling or renting properties, you can become a private lender.

What does being a private lender mean?

Simply put, you become a bank for fix and flippers or rental owners. And you get to charge them interest for using your money.

Interest rates vary in private lending, but one thing is for sure: you’ll earn A LOT more interest in real estate than in your bank account.

Now, there are a couple of ways to become a private lender.

#1: A Helping Hand

So, the easiest way to get started is through companies like our sister company, The Note Shop. Through our licensed company, we connect private lenders with real estate investors.

And when you use a company like ours, you don’t need to:

  • Search for real estate investors who need funding.
  • Interview them and review their portfolio to determine how much you can trust them with your money.
  • Analyze properties to make sure they’re worth the investment.
  • Prepare loan documents, like deeds of trust and mortgages.
  • Handle escrow draws.
  • Oversee the life of the loan, including all payments, extensions, and modifications.

Yes, you can skip ALL of that and let our team do the work for you. That means we handle the entire list above.

Not you.

#2: DIY

Or, if you’re experienced and confident in private lending, you can work directly with real estate investors. This is best known in the business as OPM (Other People’s Money).

OPM puts you directly in the driver’s seat. Because you get to decide how big of a risk you’d like to take with your money, and that risk is based on trust.

Like, do you trust them to:

  • Pay you back?
  • Buy, fix, and flip a property within your agreed upon timeline?
  • Sell or rent a property for what they claim it’s worth after they repair it?

In addition to trust, you also need to tackle the entire to-do list we mentioned above. This is completely doable! But, again, it comes down to how much risk and work you want to take on.

So, there you have it! You can invest in real estate without ever picking up a hammer.

And, believe us when we say, private lending is easy, lucrative, and EASY!

Ready to talk about investing your money in real estate without breaking a sweat? Great! Because our team is always here to chat.

Happy investing!

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How Your Credit Score is Robbing You

Credit Score 101: How Your Credit Score is Robbing You

In this session of Credit Score 101, we’d like to introduce you to Sally Payday and Joe Robber.

How Your Credit Score is Robbing You

Sally Payday is a wonderful guest. When she shows up on your front doorstep, she brings a smile, hug, and a bag of cash with her.

Joe Robber, on the other hand, doesn’t knock. He strolls right inside and steals money out of your wallet. Then takes it and runs!

So, who can you expect a visit from? Sally? Or Joe?

Well, it all depends on what credit score Mr. FICO gives you.

Mr. FICO can be a tough cookie, especially if you:

  • Forget to pay your bills
  • Overuse your credit cards
  • Or don’t use enough credit…meaning, you don’t have enough or any

Believe it or not, having debt can be a good thing. Because when you don’t have any, Mr. FICO doesn’t know you exist. Therefore, he can’t give you a credit score—or he can only give you a low one.

And if you have a low score, then, unfortunately, you can expect a visit from Joe Robber. Because a low score means you pay higher interest rates on your house, car, and other loans.

And if you’re paying higher rates, then Joe gets to take more of your money.

Which makes him a very happy man.

He loves stealing all the cash you could be using to save up for a dream vacation, a healthier lifestyle, or a more comfortable retirement.

Meanwhile, Sally Payday takes a different approach.

She doesn’t like to take money. She likes to make sure it stays in your bank account. But she can only visit people who have good credit scores. Because a good credit score means you pay cheaper rates.

And cheaper rates mean lower bills. Which means you can pay for your trip, gym membership, retirement, or anything else that would make your life better.

Sally Payday and Joe Robber are not one-time visitors. They show up on your doorstep every month.

And every month, Sally brings cash, and Joe steals it.

Which one would you rather welcome into your life?

Because it’s really your choice.

Everyone can have a good credit score. Even if you don’t have one now, it’s within your reach. You don’t need to keep letting Joe in the house. And Sally’s just standing there on the sidewalk, ready to present you with a bag of cash.

Want to find out how you can raise your score? Check out some of our other videos on our Youtube channel.

You can also join our live series How to Invest in Real Estate. Every Thursday at 11 AM MST, real estate expert, Mike Bonn answers all of your questions and shares expert tips on improving your credit score, investing in real estate, and building a comfortable retirement.

Happy investing!

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Private Lender: How to Invest in Real Estate without Flipping or Renting

Private Lender: How to Invest in Real Estate without Flipping or Renting

Did you know you can be a private lender?

That’s right. And today we’re going to show you how to invest in real estate without resorting to fixing and flipping or fixing and renting.

It’s true. Everyone can put their money to work, even if they don’t want to put their muscles to work. If you want, you can skip the hammers, ladders, and paint. No need to groan over dust-covered floors, clothes, and, well, everything. And forget about stressing over contractors and delayed projects.

You can invest in real estate without ever stepping foot inside a property.

How to Invest in Real Estate Without Flipping or Renting

How is this possible?

Well, it’s fairly easy.

Rather than rolling up your sleeves and searching, buying, fixing, and selling/renting properties, you can become a private lender.

What does being a private lender mean?

Simply put, you become a bank for fix and flippers or rental owners. Rather than these real estate investors going to a “real” bank or traditional lender, they come to you for money.

And you get to charge them interest for using your money.

Interest rates vary in private lending, but one thing is for sure. You’ll earn WAY more interest in real estate than in your bank account. Because banks pay far less interest than real estate investors.

Private Lender

Now, there are a couple of ways to become a private lender.

The Easy Way

The easiest way to get started is through companies like our sister company, The Note Shop. We connect private lenders with real estate investors (aka, fix and flippers and rental owners).

When you use a company like ours, you don’t need to:

  • Search for fix and flippers/rental owners that need funding.
  • Interview flippers/rental owners to determine how much you can trust them with your money.
  • Review real estate portfolios. Again, to establish trust. How much experience does this real estate investor have? What’s the quality of their work?
  • Analyze properties to make sure they’re worth the investment.
  • Prepare loan documents, like deeds of trust and mortgages.
  • Handle escrow draws.
  • Oversee the life of the loan, including all payments, extensions, and modifications.

You can skip ALL of that, and let our team do the work for you. That means we handle the entire list above.

Not you.

All you have to do is wait for a call or email from our team to inform you there’s a loan available. If you’re happy with it, then you just have to head to your bank and send a wire to a licensed and trusted title company (First American, Old Republic, Fidelity, etc.).

And then watch the plump interest payments hit your bank account every month.

It’s simple, it’s lucrative, and it’s way easier than fixing or renting a property yourself. Let someone else do the work, right?

Do It Yourself

Now, if you’re experienced and confident in private lending, then you can work directly with real estate investors. This is best known in the business as OPM (Other People’s Money).

We actually encourage our flipper and rental clients to seek out OPM as a funding option because it’s really the cheapest path to buying properties. Because they don’t have to pay a traditional lender multiple fees and points. Instead, they can focus on interest-only loans.

How much interest should you charge? Well, that’s really up to you and your client. When you’re in the driver’s seat, you get decide how big of a risk you’d like to take with your money. And that risk is based trust.

Do you trust them to:

  1. Pay you back?
  2. Buy, fix, and flip a property within your agreed upon timeline? (Or refinance into a traditional loan so you can invest your money elsewhere?)
  3. Sell or rent a property for what they claim it’s worth after they repair it?

In addition to trust, you also need to be willing to tackle the entire to-do list we mentioned above (evaluating investors and deals, preparing documents, overseeing the loan, etc.). This is completely doable! But, again, it comes down to how much risk and work you want to take on.

If you want to make the most money possible while doing the least amount of work, then relying on The Note Shop or a similar company to help you is perfect.

So, there you have it! You can invest in real estate without picking up a hammer or worrying about a bad contractor.

Believe us when we say, private lending is easy, lucrative, and EASY!

Do you want to talk about investing your money in real estate without breaking a sweat? Good! Our team is always here to chat.

Happy investing!

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Second Chance Money Chat: How to Fund a Flip

Second Chance Money Chat: How to Fund a Flip and Other Deals

If you missed Tuesday’s Money Chat with lending expert, Mike Bonn, then here’s your second chance to learn how to fund a flip and other deals.

Mike will be hosting another Money Chat tomorrow, Thursday, September 2nd at 11 a.m.

During tomorrow’s chat, Mike will answer all of your questions on How to Fund a Flip.

If you’ve always wanted to get into the fix and flip game, but don’t know where to start when it comes to buying properties, then this Money Chat is perfect for you!

This is your chance to join other like-minded real estate investors and ask all of your questions to a lending professional.

Money Chat Encore: How to Fund a Flip

If you’d like to join Mike’s Money Chat tomorrow, then you can register for FREE here.

During the virtual call, Mike will answer common questions like:

  • What are my funding options?
  • What is hard money?
  • How do I qualify? What credit score do I need? Income? Experience?

By the end of the Money Chat, you should have a much better grasp of how to get going in real estate investing…and how to pay for your properties.

Can’t make it to tomorrow’s chat? Then go ahead and let us know. If there’s enough interest, we’ll set up more Money Chats on how to fund a flip. Or you can reach out to our team and schedule a time for a one-on-one call. That way you have an opportunity to ask all of your questions on how to fund a flip (and any other value-add property).

But we hope to see you and other like-minded investors for tomorrow’s chat! As a reminder, here are the details to join:

When?

Tomorrow at 11 AM MST

Where?

Virtual nationwide.

Register for free at my.demio.com/ref/1j9cO1wJ3Co6QkW1

Mike and the rest of the Hard Money Mike/Cash Flow Mortgage Company team looks forward to seeing you tomorrow!

If you have any questions about our weekly Money Chats, then our team is here to answer them any time.

Happy investing!

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