Tag Archive for: value add property

New Money Chat: How to Fund a Flip

New Money Chat: How to Fund a Flip…and Other Real Estate Deals

During our next Money Chat, lending expert Mike Bonn will discuss How to Fund a Flip (and other real estate deals).

If you’ve always wanted to get into real estate investing, but you have no idea where to start when it comes to buying properties, then this Money Chat is perfect for you.

We invite you to join other like-minded real estate investors and ask all of your questions to a lending expert.

How to Fund a Flip

Are you interested in joining Mike’s Money Chat? Then register for FREE here.

During the chat, you can expect Mike to 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.

Can’t make it? It’s okay, because we’re running a second Money Chat next Thursday. That way you have an opportunity to listen, learn, and ask all of your questions on how to fund a flip (and any other value-add property). And if you miss next week’s chats, no problem because Mike will be hosting many more in the future.

So, mark your calendar!

When?

Tuesday, August 31 @ 6 PM MST

OR

Thursday, September 2 @ 11 AM

Where?

Virtual nationwide.

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

Mike and the rest of the Hard Money Mike team looks forward to seeing you on Tuesday or Thursday (or both).

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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Realtor 100 Program

Introducing the Realtor 100 Program!

As a realtor, you probably see a lot—like, A LOT–of properties cross your desk every week. And out of those properties, you’ve probably seen your fair share of sweet real estate deals.

Well, have you ever considered purchasing one of those value-add properties for yourself so you can flip it or keep it as a rental?

If so, we can help you stop listing and start buying with our Realtor 100 Program.

This real estate agent-only program is designed to help you make more money by boosting your cash flow and keeping your clients happy. It’s a win-win situation. You get to make more than your usual commission, AND you get to rescue clients who need to sell their home fast.

The Realtor 100 Program offers:

  • 100% financing
  • Fast closings
  • Fewer hiccups because you’ll buy properties as-is. That means you won’t need to worry about appraisals, lender inspections, funding conditions, slow underwriting and other issues that cause the entire process to grind to a halt.

Better yet, you can choose to close each investment deal in your own name, or a company name. And don’t worry about finding a business partner. That isn’t required to get the ball rolling on these kind of deals.

So, what are you waiting for? A new, innovative strategy to make more than your usual real estate agent commission is right at your fingertips! You just have to reach up and take hold of it.

Ready to get going today? Great! Our team is here and ready walk you through the Realtor 100 Program. Because we’re all eager to set you on a path that helps you make the kind of money you need…to live the life you want.

And, as always, remember that cash flow makes life flow.

Happy investing!

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How to Buy a Rental Property: 5 Ways To Fund Your Real Estate Deal

Do you want to know how to buy a rental property? Then check out these 5 ways to fund your real estate deal.

If you’re interested in generating positive cash flow with a rental property, then it’s important you know how to actually BUY a rental property. Like, where does the money come from? Because most real estate investors don’t have hundreds of thousands of dollars sitting around.

Most will need a real estate loan.

So, let’s take a quick look at the various types of real estate lenders you can rely on to fund your rental properties. Just like fix and flips and other value-add properties, you have 5 different options, and each of these options have various pros and cons.

Hard Money.

Hard money is a great option when you need to close a deal fast. We’re talking days instead of weeks or months. Plus, most hard money lenders offer 100% financing.

The downside is hard money can be expensive. Rates tend to be higher than other lenders. But this type of loan is intended to be short-term. If used correctly, you only pay these high rates for 6 months or less.

Non-Traditional Loans

Another option to buy a rental property is using a non-traditional loan. These are excellent for those who don’t have—or don’t want to use their tax returns. Unfortunately, they also come with high rates, so they’re more expensive than some of your other real estate funding options.

Banks

Banks are useful for those who can make the cut. They offer lower rates and allow you to keep your real estate loan in your LLC or business name.

But banks also have the strictest requirements, and if you don’t meet those requirements, you’ll get rejected. Worse, they require 3-5 year terms, so you can’t get in and out of them as fast as hard money and other loan options.

Traditional Loans

Traditional loans are one of your cheaper options because they offer the best rates. But be careful, because these types of loans have stricter requirements. And, unlike banks, you can’t put the loan in your LLC or business name. You have to keep it in your personal name.

OPM (Other People’s Money)

Compared to all the other real estate lenders, OPM offers the lowest cost and highest flexibility. You only pay interest, so there are no points or other random fees. Better yet, you and your lender can set the terms together.

The only downside to OPM is finding those who are willing to lend their money to you. But that’s where gaining experience and knowledge in real estate investing helps. The more you know, the more you can prove you’re worth the investment.

So, there you go. If you’re interested in buying a rental property, one of these 5 options can help you actually BUY it. Which one is the best? Well, there’s no right answer to that, because every real estate investor has a different path. What works for you might not work for someone else.

Ready to find out what YOUR path is? Great! Our team is here to help. We’re excited to set you on a path that helps you make the kind of money you need…to live the life you want.

Happy investing!

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How to Fund Real Estate Deal: 5 Ways to Buy a Fix & Flip Property

How to Fund a Real Estate Deal: 5 Ways to Buy a Fix and Flip Property

A lot of people interested in real estate investing don’t know where to start when it comes to purchasing a value-add property. They can find a perfect house to fix and flip or rent, but they don’t know how to actually BUY the house.

Most think, “Well, I’ll just get a loan.”

But many quickly realize they don’t truly know what “getting a loan” means or where to even begin.

So, let’s take a quick look at the various types of real estate lenders you can rely on—and which ones you might have to rely on until you boost your credit score, build a real estate portfolio, or complete one of the other qualifications that some lenders require.

There are 5 different types of lenders, and each one has various pros and cons. Let’s start with the most simple and basic lenders.

Friend or Family Member

The upside to asking a friend or family member for a loan is, well, you’re asking a friend or family member for a loan. You know them, and you probably know them very well…well enough to ask them for money.  The only qualification you really need is a decent relationship.

The downside is, well, you know them. They’re your friend, your dad, your sister, or someone else you have deep roots with. That makes the entire loan process way more personal, which means there’s a lot of potential for drama—both now and in the future.

Business Partner

Instead of going through a family member or friend, you can get a business partner. A business partner can lend you the money to buy a value-add property with very few if any qualifications. The big pro here is they take on most—if not all—of the financial risks. It’s their money, not yours.

On the flip side, it’s their money, not yours. That means some business partners get greedy. Rather than splitting profits fairly, they demand the lion’s share. To them, it might not matter if you were the one who did all the actual work. They took the risk, so they should get a bigger reward at the end of the day.

Hard Money

If you have some basic qualifications, you can skip the first two lenders we’ve talked about and get a loan through a hard money lender. Hard money loans (aka, Fix and Flip loans) are great when you need to close a real estate deal FAST. We’re talking days instead of weeks or months.

Unfortunately, hard money can be expensive. Rates tend to be higher than other lenders. But every hard money lender varies, so it’s absolutely worth shopping around. Plus, hard money loans aren’t intended to be long term, so the high cost can actually save you a lot of pain AND money in the long run.

What is hard money? Check out our myth busting series on YouTube!

Banks

Banks are the most traditional lender out there. In fact, most real estate investors look to this type of lender before they consider any other. And, why not? Banks usually have the lowest rates available.

Unfortunately, banks also have the strictest requirements, and if you don’t meet those requirements, you’ll get rejected. Worse, the application process is a lot more in-depth, which means closing can take A LOT longer. Which means that perfect investment property you wanted gets snatched up by someone using a faster lender.

OPM

Aka, “Other People’s Money.” This is exactly how it sounds. You use other people’s money to buy a property. This is different than asking a family member, friend, or business partner for financial help because there are more boundaries. With OPM, a lender charges interest. That’s it. There aren’t points or profits involved. It’s simple and easy.

The only downside of OPM is finding those who are willing to lend their money to you. But that’s where gaining experience and knowledge in real estate investing helps. The more you know, the more you can prove you’re worth the investment.

So, there you have it. Those are the 5 ways to buy a fix and flip property. Each one has its pros and cons, but each one is a viable option. It just depends on YOU and your financial situation.

Bad credit? No credit? You might have to start with a family member, friend, or business partner

Great credit? Solid income? Extensive real estate portfolio? You probably can jump straight to hard money or a bank loan. Or, better yet, OPM.

Each investor has a different path.

Ready to find out what your path is? Great! Our team is here to help. We’re excited to set you on a path that helps you make the kind of money you need…to live the life you want.

Happy investing!

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What is cash flow

What is cash flow and why do you need it?

Well, let’s face it, when you have more money in your wallet, life’s a whole lot easier. Because you have MORE money in your wallet!

When you make passive income every month, you can:

  • Take your dream big trip to the Bahamas, Italy, or anywhere else in the world.
  • Buy the dream car you’ve always hoped to own.
  • Move to a better, safer neighborhood.
  • Or simply live more comfortably.

But before we go on, let’s answer the very common question, “What is cash flow? And how can I generate it?”

First of all, cash flow is exactly what it sounds like: cash flowing into your pocket. Just think about things like income, profits, and any other term you can think of that means adding money to your bank account every month.

There are many ways to produce cash flow, and there’s really no right or wrong way to produce it. Because everyone has a strategy that works best for them.

So, what are some of those strategies?

Well, you can:

  • Invest in value-add properties, like fix and flips and rentals.
  • Become a private lender to real estate investors.
  • Improve your credit score to make extra money each month. Because better credit scores mean lower interest rates. And lower interest rates mean cheaper bills. And cheaper bills mean less money out, and more money in.

As you can see, there are countless ways to approach cash flow. You just need to choose the best approach for you.

Ready to chat? Great. Our team is here to set you on a path that helps you make the kind of money you need to live the life you want.

Happy investing!

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How to Make Real Estate Investing EASY: 3 Steps to Funding Your Fix and Flip Deals

How to Make Real Estate Investing EASY: 3 Steps to Getting A Fix and Flip Loan

When you’re looking to buy a value-add property like a fixer upper, then you’re probably also looking to get a fix and flip loan (aka, a hard money loan).

But what exactly does a fix and flip loan process entail for real estate investors?

Well, let’s take a look at the first 3 steps you need to take to fund your fix and flip deals. Because in order to make the most money, you need to make sure you’re working with the best lender. For you!

S0, here we go!

Know the difference between fix and flip lenders

Just like houses, real estate lenders come in all shapes and sizes. Some require in-depth real estate portfolios, good credit scores, and 10 to 20 percent into each project. These are typically the larger national companies.

Some lenders will work with newer investors with little to no money in the deal. Some will charge higher rates and less points. And some have a ton of junk fees, while some have none.

Overall, you’ll likely find the more flexible the lender, the higher the cost.

But to discover the best lender for you, you’ll need to shop around in your area.

Know what you bring to the table

If you want real estate lenders competing for your business, make it easy for them. Become a borrower that all lenders want to help.

What does that mean? Well, simply put:

  • Keep your credit score high
  • Get projects done on time
  • Pay your lenders on time
  • And build your real estate portfolio to show everything you’ve completed and who’s on your team.

Know what you’re looking for

It’s so important you know what YOU need. For example, do you need a lender who requires less money in? Less experience? Better rates? Faster closings? Just ask yourself, “What will make me the most successful?”

Once you complete these 3 easy steps, we can guarantee your search for the perfect fix and flip lender will be a great one. And that means your bank account will be very happy with you.

Ready to chat? Our team is here and ready to help you find the right loan for you!

Happy investing!

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How to Get an Easy Rental Loan in 3 Steps

How to Get an Easy Rental Loan in 3 Steps

If you want to close a real estate deal fast and easy, then you need an Easy Rental Loan.

But to take advantage of these loans—and their affordable, long-term fixed rates—you need to study up a little bit with 3 easy questions. If you can answer each one, then you’ll be able to get a loan that’s perfect for you—and your cash flow!

 

Does your rent cover all of your costs?

It’s time to pull out your rental property calculator and add up your costs. These include your mortgage payment, taxes, insurance, and any HOA fees. You should aim to charge a rent that covers these monthly expenses. If it does, then it’ll help lower your rates and obtain higher loan-to-value products.

 Do you have a good credit score?

Sure, you can get an Easy Rental Loan with a score in the low 600’s, but it’ll cost you. Dearly. We’re talking about adding a point or more to your interest rate. That extra cost can suck your cash flow dry by adding another $200 to $400 a month to your payment.

If you need some tips to raise your credit score, check out some of our other videos on our YouTube Channel!

Are you working with a lender who offers many options and programs?

Why is this important? Because every mortgage company has an ideal client, and you want to make sure your real estate lender has an option for you. Something that’ll fit your needs at the lowest cost so you can keep more money in your pocket, pay less at closing, and boost your monthly cash flow.

That’s it! Those are the 3 key questions you need to answer before you dive into an Easy Rental Loan. And if one of them caused you to stumble, no worries. Our team is always here to help.

Happy investing!

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What Are YOUR Funding Options: The Power of Fix and Flip Loans

What Are YOUR Funding Options: The Power of Fix and Flip Loans

When you enter the world of fixer uppers and other value-add properties, you’ll need good funding options. Otherwise, your positive cash flow might take a hard hit.

So, what’s one of the things you can do to prepare for battle—er, your real estate investment?

Easy! Take a few seconds to learn about your loan options. And if you’re going to tackle a fix and flip, then you’ll want a fix and flip loan (aka, a hard money loan).

Now, contrary to belief, these types of loans will help boost your cash flow and profits.

Yes, boost. Not obliterate!

So, what is a fix and flip loan? Well, here are 3 keys facts.

Fix and flip loans are:

  1. A special type of loan usually secured by a real asset—aka, real estate. The money for these loans is typically provided by private investors or companies.
  2. Paid off fast! Unlike normal bank loans (that are paid off over 15-30 years), fix and flip loans are meant to be short-term. Like, 3 to 9 months. You can pay them off quicker or slower, but this is the typical range.
  3. Perfect for real estate investors who want to buy properties FAST. Fix and flip loans usually close in days, not weeks. They’re ideal for buying discounted properties (non-MLS)s. Think wholesalers and other under-market deals.

Basically, fix and flips loans are here to save the day when you need funding FAST for a project that’s going to make you a lot of money.

So, what are you waiting for? When you’re looking for good funding options, we’re here to help guide you. Because we’re eager to set you on a path that helps you make the kind of money you need to live the life you want!

Happy investing!

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How to Get a Loan for Your Rental Property Investment

How to Get a Loan for Your Rental Property Investment

Are you looking for a lightning fast, easy loan for your rental property investment? Something that comes with affordable, long-term fixed rates?

Then we have your solution.

We call it the Easy Rental Loan, but you might notice that other lenders in the real estate industry call it a DSCR loan (debt service coverage ratio loan).

Yeah, we’ll stick with Easy Rental Loan, because it’s just easier to remember!

 

All you really need to know about this type of loan is that it revolves around 2 key items:

  1. A decent credit score,
  2. And a lease that covers the monthly cost of your property.

What do we mean by “monthly costs”? Well, if you look at most rental property calculators, they have you add up the following to see what you owe on the rental property each month:

  • Mortgage payment
  • Property taxes
  • Insurance
  • HOA fee

If your property positively cash flows (aka, you make more than you spend on the property), then you can qualify for an Easy Rental Loan. Better yet, you can still qualify for good interest rates and a 30-year fixed term.

Better still, you don’t have to worry about submitting tax returns, being in business for 2 or more years, or having too many financed properties.

It really doesn’t get easier than that.

So, if you’re looking for a fast, efficient, and, most importantly, EASY solution to funding your rental and other value-add properties, then look no further. We’ve got an Easy Rental Loan waiting for you.

Ready to chat about your cash flow options? Great, our team is here and eager to set you on a path that helps you make the kind of money you need to live the life you want!

Happy investing!

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No Taxes: How to Get a Loan Without Tax Returns

No Taxes: How to Get a Loan Without Tax Returns

Have you ever wondered how you can get a loan with no taxes?

That’s right. You do not have to use your tax returns to get a loan for your real estate deals. Better yet, even without tax returns, you can still secure good, 30-year rates.

As long as you pay all of your bills on time and have a decent credit score, then you can explore this less-than-traditional path to loans.

Those who might like this option include anyone who:

  • Hasn’t had enough time to grow their business and show income on their tax returns.
  • Refuses to show all of their income on their taxes, because they prefer to write things off.
  • Hasn’t been in business for more than two years.

Real estate investors need to know they have options for their value-add properties. They don’t have to settle for high-interest loans, unfavorable terms, or, worst, a big fat no from lenders.

Well, when it comes to loans, we think the more options you have, the better. So, if you want to find out how you can skip using your tax returns and still get a loan with great 30-year rates, then let’s chat.

Our team is always eager to help you discover the loan that fits you and your situation the BEST.

Because we want to set you on a path that helps you make the kind of money you need…to live the life you want.

Happy investing!

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