Tag Archive for: The Cash Flow Company

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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Can I Use a DSCR Loan for a Fixer Upper?

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One of the most common questions investors ask is this:
Can I use a DSCR loan for a fixer upper?

The answer is simple: No.

DSCR loans are only for rental-ready properties. That means the property must be in good enough shape for a tenant to move in right away—or at least within a couple of weeks.

What Is a DSCR Loan, Really?

DSCR stands for Debt Service Coverage Ratio. This loan is all about the income from the property. In other words, the rental income—not your personal income—determines if you qualify.

Because of this, DSCR loans are a great tool when you’re buying or refinancing a rental property that’s already in move-in condition.

But if the property is missing a kitchen, bathroom, or major systems like HVAC, it won’t qualify for a DSCR loan. Lenders need to see that it’s rentable right away.

What If the Property Needs Work?

If your deal is a value-add property—meaning it needs some fixing up—you’ll need a different kind of loan for the first phase.

Here’s the right approach:

Step 1: Use a Fix-and-Flip or Bridge Loan

These short-term loans are designed to help you buy and rehab a property. Even though they’re called “fix and flip,” they work just as well for “fix and rent” situations.

You can use this type of loan to:

  • Buy the property

  • Fund the repairs

  • Get it ready for rental

Many banks and lenders offer these under the name bridge loans, fix-and-flip loans, or even fix-and-hold loans.

Step 2: Refinance Into a DSCR Loan

Once the rehab is complete and the property is rental-ready, you can refinance into a DSCR loan. Now the lender can base the loan on rental income—and not your tax returns or W-2s.

Use the BRRRR Strategy Instead

This two-loan approach is a part of the BRRRR method: Buy, Rehab, Rent, Refinance, Repeat

It’s one of the best ways to build wealth with real estate. But you’ll need to follow the right steps to make it work.

👉 Need help understanding the BRRRR method?
Download our free BRRRR map at TheCashFlowCompany.com. It shows exactly how to use the right loans at each stage.

Reminder: DSCR Is for Rental-Ready Only

To keep things simple:

  • Use DSCR loans for clean, rent-ready properties.

  • Use fix-and-flip or bridge loans for properties that need work.

Then, once your project is finished, refinance into a long-term DSCR loan.

Helpful Tools Just for You

At The Cash Flow Company, we want to make things easier. That’s why we offer:

  • ✅ Free tools and downloads on our website

  • ✅ A detailed BRRRR map to guide your deals

  • ✅ A powerful eBook: “100% Financing 100% of the Time”
    It shows you how to fund your deals even if you don’t have your own money

👉 Visit TheCashFlowCompany.com to grab your free tools today!

Final Thoughts

The best real estate investors choose the right loan for the right stage of the deal.
If the property is ready to rent, go DSCR.
If it’s a fixer-upper, start with a short-term rehab loan.

Then, refinance the smart way.
📈 That’s how you build cash flow and long-term wealth.

Want help choosing the right loan for your next deal?
Reach out to us—we’re here to help you succeed.

Watch our most recent video to find out more about: “Can I Use a DSCR Loan for a Fixer Upper?”

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How to Get TRUE 100% Financing – The Real Cost of a Fix and Flip

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Today we are going to discuss how to get true 100% financing – the real cost of a fix and flip. A lot of people think 100% financing is a gimmick. It’s not. It’s simply a method.

If you’re flipping a property, you can fund the full deal, but only if you know how to stack your financing and plan ahead. In this guide, we’ll walk through a real fix and flip example and show you what it really costs to do it right. Then, in upcoming videos and resources, we’ll show you how to fund all of it without using your own cash.

What 100% Financing Really Means

Let’s start with the basics.

Here’s a typical flip deal:

  • Purchase price: $300,000

  • Rehab budget: $60,000

  • Total cost: $360,000

At first glance, you might think you just need to cover the purchase and rehab. But that’s not the full picture. In fact, there are several more costs you need to plan for.

What the Lender Covers

Most lenders will help you cover part of the deal. But not all of it.

Here’s what they typically do:

  • Lend 90% of the purchase price

  • Lend 100% of the rehab

So if you need $360,000 total, you’ll probably get about $330,000 from a lender. That leaves $30,000 you need to bring in as a down payment.

At this point, many people think they’re fully funded. But not so fast.

What YOU Still Need to Pay

You’ll need a lot more than $30,000 to complete the flip. Here’s a full breakdown of everything you’ll need to cover out of pocket (or with available funds).

💸 Pre-Closing Costs

You’ll have to pay for a few things before the loan closes.

  • Earnest money deposit: $5,000

  • Appraisal and other fees: $1,000

That’s $6,000 you’ll need before the deal even funds.

🏁 Closing Costs

Now let’s look at the day of closing.

  • Down payment: $30,000 (minus your $5,000 earnest = $25,000 more due)

  • Lender fees (2% of $330,000 loan): $6,600

  • Insurance (builder’s risk policy): $2,400

Total at closing = $34,000

📆 Interest Payments

Even if you’re not making payments monthly, most lenders expect interest to be paid eventually. You need to plan ahead.

  • 5 months of interest at $2,750/month = $13,750

🔧 Rehab Surprises and Extras

Most flips run into unexpected costs. It could be an upgrade, damage, or changes you didn’t plan for. That’s why it’s smart to budget extra.

  • 15% of rehab budget ($60,000) = $9,000

  • Pre-listing costs (photos, staging, etc.): $500

Total = $9,500

💰 Pre-Funding the Escrow

Lenders don’t give you rehab money up front. Instead, you have to spend first and get reimbursed later. That means you need to front some of the rehab cash.

  • 25% of rehab budget = $15,000

This money will come back to you — but only after the work is done and inspected. So you need to have it ready to go.

The Real Total You Need

Let’s add everything up:

  • Pre-closing & closing: $40,000

  • Interest + surprises + pre-list: $23,250

  • Escrow pre-fund: $15,000

Grand Total = $78,250

That’s how much you’ll need in available funds — not necessarily in cash, but ready to go — to complete this deal the right way.

Why It Matters

If you don’t plan for these costs, your project could get delayed. You might not be able to pay a contractor. You might miss a good deal on materials. And worse, you could lose time.

And in real estate, speed equals profits.

What’s Next?

We’ll show you exactly how to cover these costs without draining your bank account. It’s called credit stacking, and it’s how seasoned investors get true 100% financing.

✅ Want to get started now?
Download the free eBook and learn how to build your money bucket: a simple way to fund every piece of your next flip.

Watch our most recent video to find out more about: How to Get TRUE 100% Financing – The Real Cost of a Fix Flip

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What Are Points and How Can They Affect You?

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Today we are going to answer the question, “what are points and how can they affect you?” When you get a loan, you might hear someone say, “This loan has points.” But what does that really mean?

Points are fees you pay upfront to get a better deal on your loan. Each point usually costs 1% of your loan amount. So if you borrow $200,000, one point would cost you $2,000.

There are two kinds of points:
 Discount points and origination points.
 Discount points help lower your interest rate.
 Origination points are fees lenders charge to give you the loan.

Let’s look at an example.
 You’re getting a loan for $200,000:

  • No points: You pay a 7% interest rate.

  • Buy 2 points for $4,000: Your rate drops to 6.5%.

That lower rate could save you thousands over time!
 But it takes a while to break even. If you sell or refinance the home too soon, the points may not be worth it.

Points can help you save money, but only if they fit your long-term plan.

Contact Us Today! 

Do you have more questions about how points can affect you?  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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90% of Real Estate Investors Make THIS Costly Mistake

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Today we are going to discuss, “90% of real estate investors make this costly mistake”. Real estate investing isn’t just about finding a great deal. It’s about how fast you can move once you do. Sadly, most investors make the same mistake—they’re not money ready.

Let’s break down what that means, why it matters, and how you can avoid the costly delays that sink deals.

The #1 Mistake: Not Being Money Ready

Here’s the truth:
90% of investors aren’t ready to act fast when the right deal shows up. They scramble to pull money together after the fact.

But in real estate, speed equals profit.

When you don’t have funds available, you risk:

  • Losing the deal to someone faster

  • Delaying your project

  • Burning through your profits

  • Adding stress and possibly burning out

So, what can you do? You need to be money ready before you start.

Why Speed Matters in Real Estate

Speed helps you:

  • Lock down deals before your competition

  • Get the rehab done quickly

  • Put the property on the market fast

  • Move on to the next deal without delays

Every month a project drags on, 6% to 7% of your profit disappears due to:

  • Interest

  • Taxes

  • Insurance

  • Holding costs

It adds up quickly. For example, if your project runs six months longer than planned, you could lose 40% of your profit or more.

The Compound Effect Is Real

Fast investors make more money. Why? Because they do more deals in less time. One project funds the next.

But if you hit delays, you’re stuck.

Let’s say you planned a spring sale, but delays push you into summer. You might miss the hot market window—and be forced to drop your price.

That one delay can cause a domino effect:

  • Contractors reschedule

  • Supplies don’t arrive on time

  • Payments pile up

  • You lose time AND money

The Real Trap: Assuming Your Lender Covers Everything

Here’s another big mistake investors make…

They believe their fix and flip lender will cover all costs. But lenders only fund most of the deal—not all of it.

Most lenders will give you:

  • Up to 90% of the purchase price

  • Up to 100% of the rehab costs

Sounds great, right? It is—but it’s not enough.

You’ll still need money for:

  • Earnest money to lock in your deal

  • Down payment (usually 10%)

  • Monthly loan payments

  • Upfront escrow costs

  • Materials like doors, windows, or roofing

  • Surprises behind the walls

Real Life Example

Let’s say you’re buying a house for $100,000 and putting in $50,000 to rehab it.
Even with a great lender, you’ll need at least $30,000 to $60,000 of your own funds.

That’s 20% to 40% of the total deal amount.

Why? Because:

  • You need cash to get started fast

  • Lenders won’t pay for surprises

  • Delays will cost you more than being prepared ever will

What Are Available Funds?

Available funds are money you can access quickly—without jumping through hoops.

Here are a few good options:

  • Lines of credit

  • HELOCs (on other properties you own)

  • Business credit cards

  • Real OPM (Other People’s Money from friends, family, or local investors)

The best part?
If you’re not using them, they don’t cost you anything. They just sit ready for when you need them.

How Delays Kill Your Profits

One missed payment to a contractor can push back the whole job.
That roofer you delayed? Now your drywaller is three weeks out. And so on…

Before you know it:

  • Your finish date slips

  • Your interest keeps racking up

  • You’re missing your sale window

  • You feel stuck and stressed

All because you didn’t have the money ready to keep things moving.

Let’s Recap: What You Need to Win

To be successful in real estate investing, you need to:

First, Have 20% to 40% of the total deal amount ready
Second, Use lines of credit, HELOCs, cards, or real OPM
Third, Move quickly through each step—buy, rehab, refi, sell
Finally, Avoid delays that eat away your profits

Speed is your superpower. But only if your money bucket is full.

Ready to Be One of the 10%?

Being money ready gives you a massive edge. Not just on this deal—but on every deal after that.
You’ll make more. You’ll stress less. And you’ll build the life you want.

So don’t wait until it’s too late. Contact us today to find out more about: 90% of Real Estate Investors Make THIS Costly Mistake – Don’t Be One of Them!

Watch our most recent video today!

Check out our free eBook to learn how to set up your available funds now—and make real estate investing work for you.

Let’s do this the right way. Fast, smart, and profitable.

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Is a Pad Split Investment Property Right for You?

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Today we are going to answer the question, “is a pad split investment property right for you?”First and foremost, what is a pad split? A pad split is a single-family home where each room rents separately instead of as a whole unit. This setup increases cash flow because multiple tenants pay rent on the property instead of just one. It works well in cities with high demand for affordable housing, which makes it a win-win for both landlords and renters.

The Income Potential

A traditional three-bedroom rental might bring in $1,500 per month. However, renting each bedroom separately for $700 could generate $2,100 or more. This strategy creates more income, but it also adds extra responsibilities.

The Challenges

Pad splits work best in areas with strong rental demand, such as near colleges, hospitals, or major job hubs. However, landlords must handle more tenant turnover and maintenance. Local zoning laws vary, so always check whether room rentals are allowed in your area.

In Conclusion

Is a pad split right for you? It all comes down to your goals and management style. If you want higher cash flow and don’t mind the extra work, a pad split could be a great investment. But if you prefer a hands-off rental, a traditional setup might be better. Weigh the pros and cons, check local rules, and decide what fits your strategy best.

Contact Us Today! 

Is a pad split investment property right for you? 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! 

Contact Us Today! 

Is a pad split right for you? 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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The EASY Path To Achieving Real Estate Investor Success

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Today we are going to discuss the easy path to achieving real estate investor success. Real estate investing doesn’t have to be complicated. The most successful investors follow a simple, proven path to make deals easy, profitable, and stress-free. But many new investors get stuck—running into delays, unexpected costs, and funding issues that eat away at their profits.

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How HELOCs Work in Real Estate Investing

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Today we are going to discuss how HELOCs work in real estate investing. Real estate moves fast. Therefore, having cash ready is very important. A HELOC gives you money on demand. In other words, it helps you act quickly when a great deal comes along.

What is a HELOC?

A HELOC is a Home Equity Line of Credit. That means you borrow against the value you have built in your home. For example, think of it as a credit card for your house. Also, it usually has lower interest than a credit card. Thus, you pay less money in the long run.

Why Real Estate Investors Need a HELOC

First, a HELOC gives you fast access to cash. Next, it helps you make a down payment, pay for repairs, and cover other costs. For example, you might use a HELOC to fix a home quickly so that you can sell it fast. Moreover, this tool allows you to keep your projects moving without delay. In short, HELOCs make it easier to grab good deals when they come along.

How to Use a HELOC in Real Estate Investing

You can use a HELOC in many ways. Here are some examples:

  • Down Payments: First, use it to cover your down payment.
  • Earnest Money: Next, secure your offer with earnest money.
  • Repairs & Fixes: Then, pay for repairs or upgrades.
  • Contractor Payments: Also, cover contractor bills as needed.
  • Interest Payments: Finally, pay the interest on what you borrow only when you use the funds.

Each step shows how a HELOC keeps you ready to act.

How HELOCs Work

Typically, a HELOC acts as a second mortgage. For example, suppose you own a rental property worth $200,000. In many cases, banks allow a combined loan-to-value of 75%. Therefore, you could borrow up to $150,000 in total. Now, if your first mortgage is $100,000, then you have about $50,000 left on your HELOC. Moreover, you only pay interest on the money you use. Then, once you repay it, the credit is available again.

Who Are Good Lenders for HELOCs?

For real estate investing, small lenders often work best. For instance:

  • Local Credit Unions: They usually offer flexible terms.
  • Regional Banks: They are more likely to work with real estate investors.
  • Smaller Banks: They tend to be more open to lending against properties.

However, big banks sometimes have strict rules. Thus, local options might be better.

Why We Love HELOCs

HELOCs are a favorite tool for many investors. First, they give you money on demand. Next, they cost less than using a credit card. Furthermore, they let you use your home’s value without refinancing your first mortgage. For example, you keep a great rate on your current loan while accessing extra funds. Also, they help you move fast in a competitive market. In short, HELOCs are a smart way to use your equity to grow your real estate portfolio.

Set Up Your Money Bucket

The idea of “money buckets” is simple. Essentially, you always want to have money available for your next project. For example, when a new deal pops up, you need funds right away. Therefore, fill your money bucket by securing a HELOC on each property. Then, use it wisely to pay for things like repairs or contractor fees. Finally, repay the HELOC so you can use it again in the future.

In Summary

HELOCs give you quick access to cash, help you act fast, and keep your projects moving. Moreover, they save you money compared to high-interest credit cards. Therefore, start filling your money bucket today. In this way, you can grow your real estate investments and make your next deal a success.

Now, if you have any questions about how HELOCs work or how to set up your money bucket, feel free to leave a comment below. We are here to help you every step of the way!

Contact us today to find out more about HELOCs and if they are right for your real estate investment needs!

Watch our most recent video to learn more about: How HELOCs Work in Real Estate Investing

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What Is the Cost of Having Bad Credit?

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Today we are going to discuss the cost of having bad credit. Bad credit is expensive. It affects your ability to borrow money, buy a home, or even get a car loan. But the real cost? It’s the extra money you pay over time.

Let’s take a look at an example.

Take two people buying the same house. One has great credit, the other has bad credit. The person with good credit gets a 6% interest rate. The person with bad credit gets an 8% rate. On a $250,000 loan, that’s a difference of over $300 per month! Over 30 years, that adds up to more than $100,000.

The same goes for car loans, credit cards, and even insurance. Bad credit means higher rates, bigger fees, and fewer options.

But here’s the good news, you can fix it. With the right steps, you can turn things around and start saving instead of spending extra.

Free Tools For You! 

We also have free tools available! Download the Credit Score Checklist to see if your credit score is in the right place for your investment needs.

Learn more!

Visit our YouTube channel to learn more about the cost of having bad credit.

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Why Real Estate Investors Need a HELOC

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Today we are going to discuss why real estate investors need a HELOC. Real estate investors often need money fast. First, a HELOC gives you cash on demand. Next, it helps you grab opportunities as they come. Moreover, it keeps your projects moving smoothly.

What is a HELOC?

A HELOC stands for Home Equity Line of Credit. In simple terms, it is a way to use the money you have in your property. For example, if you own a home or a rental, you can tap into your home’s value without selling it. Thus, you get the funds you need quickly.

How to Use a HELOC

A HELOC works much like a credit card, but it usually costs less. Here are a few ways to use it:

  • Buy a New Property: First, use the HELOC to put money down on a home.
  • Fix and Flip: Next, pay for repairs or upgrades so you can sell fast.
  • Pay Contractors: Also, you can quickly settle bills and keep work on schedule.
  • Cover Interest Payments: In addition, you might use it to manage your monthly costs.

For example, if you have a HELOC with a lower interest rate, you save money compared to using a credit card. Consequently, your profits grow.

How HELOCs Work

Typically, a HELOC is a second mortgage on your property. First, a lender gives you a loan based on a portion of your home’s value. Then, if you already owe money on your first mortgage, you still get extra funds. For instance, imagine you have a rental property worth $200,000. Moreover, if the bank allows up to 75% of the value and you already owe $100,000, you might get another $50,000 through a HELOC. Finally, you can use that $50,000 however you need.

Who Are Good Lenders for HELOCs?

Generally, small credit unions and local banks offer HELOCs. First, they understand the needs of real estate investors. Next, they often have flexible terms. Also, they charge lower fees compared to big banks. Therefore, they can be a great choice if you want to fill your money bucket.

Why We Love HELOCs

We love HELOCs because they keep the cash flowing. First, they allow you to act fast when a deal pops up. Next, you don’t have to wait for extra funds from traditional loans. Moreover, HELOCs help you save money on interest. In addition, they are available on many types of properties. Finally, by using a HELOC, you fill your money bucket and keep your projects on track.

Set Up Your Money Bucket

When you set up a HELOC, you create what we call a “money bucket.” First, you have cash ready for the next project. Then, you use that money to buy, fix, or flip a property. Also, you keep your investments growing without delays. In short, your money bucket makes it easier to succeed in real estate.

In Conclusion

To sum up, a HELOC is a smart tool for any real estate investor. First, it provides money on demand. Next, it helps you act quickly and save money. Finally, it fills your money bucket so you can keep growing your investments. Therefore, if you want to move fast and make your deals work, consider a HELOC today!

Contact us today to find out more about HELOCs and see if they are right for your real estate investment needs.

Watch our most recent video to find out more about: Why Real Estate Investors Need a HELOC

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