Tag Archive for: tips for new investors

8 Easy Tricks to Improve Credit for Small Businesses

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8 Easy Tricks to Improve Credit for Small Businesses

Today we will be talking with Alex Erlich, a credit advisor and educator, about the 8 easy tricks that you can do to improve credit for small businesses. Those who know the rules and how to play the game will be in the best position to win! Let’s take a closer look! 

1. Do Not Open New Credit! 

Do not open new credit unless you have talked with a professional and they have created a step by step outline. Here at The Cash Flow Company we can help you apply for a 911 loan. This can be used to take care of items on your credit that are holding you back financially.

2. Fix Old Information.

It is important that you remove any derogatory information that is on your credit report. Now is the time to see what can be done about it and how to leverage it, especially if it’s a local bank. Something from three to five years ago that already has a zero balance, should be removed. Remember to be methodical and purposeful.

3. Fast Inquiry Removal.

Take into account all of your inquiries. If you have been shopping for money and applying for things, look into a fast inquiry removal. This can make a substantial positive impact on your credit score. If you are using your personal credit to inquire about your business, those should all be disputed as well. 

4. Build Local Relationships.

Relationships are key to a successful business. Investors need to determine which companies are having the hardest time or tightening their budget. These are the ones that will leave you behind so they can swim upstream. Oftentimes they are searching for bigger and better clients. By building local, human, real relationships, the more successful you will be.

5. Run All Transactions Through Business Account.

It is imperative that you run all of your transactions though a business account. In doing so, you will correctly paint the picture that people want to see. Whether we are talking about personal credit, business credit, leverage, banking, or relationships, we want to consider who is reading this book and what they are reading. Keep in mind that the reader’s personal experience is dictating what they are reading in the picture book that you create. 

6. Pay Cards Before Statement Cycle Closing Date.

Investors need to pay their credit cards before the statement cycle closing date. In doing so, it ensures that the utilization rate is as low as possible. This information can be found on MyFico, as well as by looking at the actual statement. 

7. Establish Business

The next step that you need to consider is whether or not you are established as a business. To clarify, a properly established business has a business license, business phone number, and an EIN. In setting up your business correctly from the beginning, it will provide more opportunities for you than you would have otherwise. 

8. Shop around

It is imperative that you shop around and find the lenders, as well as the products you need for your business. Keep in mind that there are always banks looking to expand and grow. These are the ones that will be helpful in growing your business as well.  

In conclusion.

It is important that you not only establish your business correctly from day one, but that you also work on forming positive relationships. By doing so, it will ensure that you set your business up to win. The faster you can separate your business vs personal credit, the better your personal credit score. In turn, it will also create more leverage for future growth. Give us a call! We can help guide you through this process! 

Contact us today to find out more about setting yourself up for success.

Watch our most recent video to find out more about the 8 Easy Tricks to Improve Credit for Small Businesses

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How can a newbie invest in today’s real estate market?

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How can a Newbie Invest in Today’s Real Estate Market?

As a newbie real estate investor it can be incredibly daunting. The question on everyone’s mind is whether or not they should take the plunge and invest in 2024 with the high interest rates. There are a few things that new investors need to consider before they invest in this market. This includes shopping wisely, evaluating repair costs, and current interest rates. By taking all of these things into consideration, new real estate investors will be set up to win in 2024.

First, Focus on the Lower End of the Market 

Since interest rates are high, you should probably focus on the lower end of the market. This includes homes that are in the $300K range and below. Affordability is a factor when you’re flipping, because someone has to be able to afford to buy the property once repairs are completed. Thankfully, we have a good inventory shortage as investors, which in turn is creating a greater demand. Therefore, if you have a good price point and a good product, then it’s going to sell quickly. 

Second, Create a Product that People will want to Buy

Especially since you will be the one fixing up the property, it is important that you create a property people will want to buy. As real estate investors, it is crucial that you complete repairs both quickly and correctly in order to maximize your investment. By creating a nice fixed up property in this market, you will have an advantage over those who are not putting in the effort. 

Third, Consider the Impact that Interest Rates will have on your investment.

Interest rates will be a major factor when purchasing a property in this current market. However, if you can find a rental property that can break even, or better yet one that can make a little money, you should invest now to generate cash flow quickly. Interest rates should go down in the next 18 months to 2 years. When they do, you will be able to refinance and come out ahead of everyone who has been sitting on the sidelines.

In Conclusion

Take the plunge and invest in real estate in 2024! By strategically selecting properties and doing the research, a newbie can not only invest in real estate, but they have the opportunity to grow their wealth when rates drop. New investors need to set themselves up for success. In doing so, you will have the potential to increase cash flow and set yourself up to win.

Watch our most recent video to find out more about investing in today’s market.

We can help you get set up to win in 2024! Contact us today!

 

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How to Make Wealth NOW in Real Estate Investing

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How to Make Wealth NOW in Real Estate Investing

In real estate investing it all comes down to leverage. Leverage or loans make up roughly 50% of what makes a successful real estate investment. Funds that are faster, easier and cheaper will consequently drive your investments and create the wealth. So, how can you make wealth now? In real estate it is imperative that you create a step by step plan regarding what you need in order to accomplish your investment goals. Let’s take a closer look at how you can get started!

First and foremost, you need leverage!

Make sure that you have the right leverage and that you are prepared before jumping into a deal. It is so easy to let your emotions drive your business decisions. In doing so, there is a tendency to overspend and get behind the eight ball. Take a step back and research your options, contact lenders, and analyze all of your numbers. In a nutshell, even if you find the right deal, yet you don’t have the money, then you really don’t have a deal at all.

Second, find the right property.

Again, take a step back and create a plan, research properties, and compare them as well. It may take a couple months to research and test things out. In taking the time to get comfortable with the process, you will in turn be more successful. You need to go through a live example and take a couple test runs in order to understand everything that is involved. Get your hands dirty and you will figure out the nitty gritty stuff down the road. It is important to not just conceptualize the project. Instead just do it! 

How do you get into the game?

As a new investor that is just getting started, it can be very daunting. There are three ways that you can get the ball rolling.

1. Find a mentor

It is helpful to find a successful real estate investor to mentor you through the process. By finding a good flipper right now, you will not only have the opportunity to invest with them, but you will be able to walk through the steps as well. Just be careful not to hand over your money to someone who will not use it properly. Do your research and take the time to find the right partnership. 

2. Look into the 12 week year program

Currently I’m working on completing a 12 week year program. This method is very structured and helps you complete a year’s worth of work in only 12 weeks. As a result, investors avoid the pitfalls and low productivity that occurs when the goals are stretched out throughout the year. 

3. Do your research every day

If you are just starting out in real estate investing, it is important that you get up every day and look at properties, contact realtors, contact wholesalers, and find lenders that will help you achieve your investment goals. The more you talk to them, the more likely they will be to work with you in the future. Now this process should only take 15 to 20 minutes, not 8 hours. If you start out slowly and build your database, then in 3 months time you will be better off compared to others who jumped in right away.

Make wealth Now!

Taking the time to get prepared, will not only increase confidence, but more importantly it will set you up for success. Likewise, you will also be able to regulate your emotions, so they will no longer dominate your business decisions. Ultimately you do need some emotions to drive your business, however, it is important to let the numbers guide your business decisions. Avoid getting behind the eight ball by making investment moves that will set you up to win the game of creating wealth. 

Watch our most recent video to find out more about how you can make wealth NOW!

Do you have more questions about setting your business correctly? Do you need additional information regarding lending options? Contact us today!

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How to Make Lenders Happy: 5 Real Estate Investing Tips

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Five real estate investing tips to make sure you get the leverage to finish your projects. 

In real estate investing, leverage comes from using other people’s money to generate wealth and income. 

The better your leverage, the easier and more profitable real estate investing becomes. 

But how do you find the right loans that can give you that leverage?

Here are 5 real estate investing tips from our experts at The Cash Flow Company to help get you where you need to go:

Tip #1: Tell the Truth

This may seem basic, but it can be really tempting to slip in a few lies when you’re trying to get a deal. Don’t do it.

Lenders do background checks, look at credit, and generally get external confirmation for everything you tell them. Lying not only makes their jobs harder, but your lack of honesty can ruin your reputation with that lender.

It’s better to be honest about a bad credit score and have a detailed plan about how to fix it than to lie. 

Make sure you disclose if you’ve gone through bankruptcy or if you have any credit card debt. 

They will find out if you’re hiding information or stretching the truth, and you’ll get dumped to the bottom of the pile.

Tip #2: Know Your Real Estate Lingo

This can be tough for new players. We recently created a list of some of the most common real estate lingo that new investors will encounter. 

Knowing terms like LTV, ARV, DSCR, Prepayments, etc. before you meet with prospective lenders shows that you’ve put in the time to educate yourself. 

Understand the numbers that go into making profits, including realtor fees, interest, and escrows. You should have a basic understanding of everything that goes into a project before seeking a lender. 

Resources like our YouTube channel or Investopedia can also help you learn the ins and outs of real estate jargon.

Tip #3: Raise Your Credit Score

One of the first things lenders look at is credit score. That score is often a determining factor in whether you even get considered for a loan.

If credit score is something you’re concerned about, there are ways to raise your score, including looking into usage loans. 

The better the score, the better terms you’ll be offered. The better the terms, the better your leverage. 

If you have questions about raising your score or are interested in discussing a usage loan, you can contact us here, and we’ll be happy to discuss your options.

Tip #4: Be Personally Invested

If you’re also investing your own money in your project, lenders know you’re serious about the job. 

Using other people’s money (OPM) also demonstrates that your friends and family are willing to invest in your project. Lenders like to see you have skin in the game, even if it’s as simple as borrowing from a line of credit.

Especially if you’re a newer investor, the less you ask of lenders and the more at risk you take on, the more lenders will be attracted to you.

Tip #5: Shop Around For Good Deals

The 2024 real estate market is setting up to be a profitable one for investors. 

Shop around and be selective so you pick the best deals. It’s better to find two really good deals in a year that you can complete than to overextend and not follow through.

This step can take a lot of time and effort, but it’s worth it. Just as lenders are selective with the investors they back, you should also be selective as you look for properties and lenders. 

How We Can Help

As we said earlier, leverage is key.

Knowing these real estate investing tips can help you make your lenders happy so you can start productive cash flow:

  • Be honest
  • Learn the language
  • Work on your credit score
  • Keep it personal
  • Hunt for the right deals

Real estate investing takes time and hard work, but it’s a great way to create generational wealth. 

We have a ton of free tools to download that will help you prepare for these investment opportunities.

If you have questions about these tips or how to get leverage, we’re happy to help. Just reach out to us at Info@TheCashFlowCompany.com.

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