Tag Archive for: fix and flip

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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How to Find and Value Property

New Money Chat: How to Find and Value Properties

During our next Money Chat, lending expert Mike Bonn will discuss how to find and value a property.

Because it’s important to understand how to invest in good, cash flowing properties before putting your hard earned money into real estate deals.

Don’t miss your chance to join other like-minded real estate investors and ask all of your questions to a lending expert.

How to Find and Value a Property

Want to join Mike’s Money Chat? Then register for FREE here.

Mike will answer common questions like:

  • How do I find properties in my area? 
  • How do I evaluate a property to make sure it’s a good investment? 
  • What resources can I use to help me out with this process?

By the end of the Money Chat, you should have a much better grasp of how to find and value your real estate investments, including fix and flips and rentals.

Can’t make it? No problem. We’re running a second Money Chat next week to make sure you have an opportunity to listen, learn, and ask all of your questions on how to find and value property. And if you miss next week’s chat, no sweat. We’ll be hosting many more in the future.

So, mark your calendar!

When?

Tuesday, September 7th, 6 PM MST

OR

Thursday, September 9th, 11 AM MST

Where?

Virtual nationwide.

Register for free at https://my.demio.com/ref/lw8s3Krd8n4vKXqo

Mike and the rest of the Cash Flow Mortgage Company/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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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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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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Financial Independence

What is the answer to your financial independence? Well, the answer is easy. You need positive cash flow!

When you have solid, consistent money flowing into your life every month, then you can live the life YOU want.

This is the Answer to Financial Independence - Explainer Video

What does generating positive cash flow every month mean to you? Well, it might mean:

  • Taking an annual skiing trip to the Alps.
  • Sitting in a cozy coffee shop and writing a book.
  • Buying a bigger house for you and your family.
  • Quitting your day job so you can invest full-time…and bring even MORE money into your life!

Or maybe you simply want to live more comfortably, without stressing about bills and groceries and all the other expenses that keep you awake at night.

You see, when you have good cash flow appearing in your bank account every month, life’s just better. It’s as simple as that. You’re no longer tied to fear, anxiety, stress, an unwanted job, or unfulfilled dreams. You can take control and be free of the rat race forever.

Want to discover how you can bring more cash flow into your life and gain financial independence? Well, good, because our team is here to help you learn about your options. Because there are many when it comes to producing sustainable, reliable cash flow. These include:

  • Investing in real estate. AKA, fix and flips, rentals, and other value-add properties
  • Improving your credit score
  • Getting out of an expensive loan and into a more affordable one.

Ready to chat? Great! Our team is here and ready to help you achieve financial independence.

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.

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

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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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!

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

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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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!

3 POWERFUL Facts about Fix and Flips Loans

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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Real estate investors may need to test every property for meth.

 

There may be a need now to test every home before you purchase it for meth…or end up with a huge bill or lawsuit.  Most self tests cost around $30 to check if meth was used in a home, a lot cheaper than remediation or a lawyer.

We will see where this flipper (the seller) ends up and what it will cost them.

 

Here is the story from CBS Denver:

Littleton Family Unknowingly Buys House Contaminated With Meth, Home Is Condemned 3 Weeks After Closing

 

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