Tag Archive for: real estate investing

New Money Chat: How to Fund a Flip and other Deals

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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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How to Get an Easy Rental Loan in 3 Steps

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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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How to Get a Loan for Your Rental Property Investment

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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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Real Estate Funding Solutions: Welcome to The Cash Flow Mortgage Company

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Real Estate Funding Solutions: Welcome to The Cash Flow Mortgage Company

Real Estate Funding Solutions: Welcome to The Cash Flow Mortgage Company

If you’re looking for fast real estate funding from a team that truly cares about your cash flow, then welcome to the Cash Flow Mortgage Company.

Because we believe that cash flow makes life flow!

The Cash Flow Mortgage Company is a rare, one-stop-shop for all your real estate investment deals. Gone are the days of working with multiple lenders for one property. We have everything you need to generate positive cash flow and make life a whole lot easier.

Among our many services, we offer:

Non-traditional and hard money funding

Non-traditional and hard money loans are perfect for fix and flips, rentals, and BRRRRs, and other value-add properties. Furthermore, they’re ideal for real estate investors who need to move FAST or might need to get creative with qualifications. For example, if you don’t have tax returns (or don’t want to use them), then we have a loan for you. Or if you’re real estate portfolio needs some work, we can help you build it so you can eventually apply for a long-term bank loan.

Traditional funding

If you’ve got the qualifications, then we’ve got long-term, low-rate loans for you!

Bridge loans (aka, gap funding)

If you want to ensure your cash flow doesn’t take a major hit when the market is tight, or if you’re stuck in a project and need temporary funding, then a bridge loan is perfect.

Credit score boosting tips

The better your credit score, then the better your interest rates. And the better your interest rates, then better your loan products. Which means you spend way less money every month.

Ready to get going? Great, we’re here to help. Our team is eager to set you on a path the helps you make the kind of money you need to live the life you want!

Happy investing!

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Busting Myths: How You CAN Afford Hard Money

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Busting Myths: How You CAN Afford Hard Money

Busting Myths: How You CAN Afford Hard Money

It’s time to start busting myths about hard money, and discover how you CAN afford hard money.

Today, we’re going to bust one of the most common misconceptions about this investor-friendly lending option:

“Hard money is too expensive!”

False!

This is How Real Estate Investors Afford Hard Money

When you get a hard money loan, it doesn’t mean you have to automatically pay 12% interest or more.

In fact, if you take these 3 steps, the cost of your hard money loan will be drastically reduced:

Prove you have experience.

If you show a hard money lender you’ve completed real estate deals successfully, then they’ll feel more confident in giving you money. And confidence means better rates.

How can you show your experience? The best way is to present a real estate portfolio with before and after pictures, budgets, and profits earned.

Be willing to put money down at closing.

If you have skin in the game, then a lender will likely be more willing to lower the cost of your loan. Why? Because it reduces their risk.

But how much money should you try to put down at closing? Ideally, 10% or more. But even as much as 5% will help lower your loan’s cost.

Maintain a good credit score.

Your credit score matters when it comes to loans. The better your score, the better your rates.

If your credit score is on the low side (below 670), then you can find simple ways to boost it. Here are 3 tips to get you started:

  • Stop using your credit card and start paying it off. Simple, but effective. And when you hit a $0 balance, do NOT close the account. Closing an account that’s in good standing is anti-productive in keeping your score healthy. You want to show you have good credit history. So if you close your accounts, then your history won’t exist.
  • Keep your card balance low. Like, under 30% of its maximum. So, if your card has a maximum credit line of $1,000, then don’t let your balance rise above $300.
  • Pay your credit card bill on time. Again, simple, but effective. If you make your payments on time for the next 12 months, your score WILL rise.

Hard money doesn’t have to eat up all of your profits. We assure you that if you take these 3 steps, you can greatly reduce your costs and actually boost your profits considerably.

Stay tuned for our next video where we discuss the myth of getting trapped in a hard money loan. Spoiler alert, another pitfall that’s easily avoidable if you take a few simple steps.

Ready to chat about your hard money and other lending options? Great! Our team is here to help.

What is hard money? Learn more on our YouTube channel!

Happy investing!

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How to Put Less Money Down on Your Real Estate Deals

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How to Put Less Money Down on Your Real Estate Deals

How to Put Less Money Down on Your Real Estate Deals

When you put less money down on your real estate deals, you keep more money in your pocket.

Now, if you’re a real estate investor, then chances are you put a lot of focus on positive cash flow.

But what does cash flow really mean?

Well, all investors have a different perspective, but most fall into 3 popular categories:
  1. Putting less money down.
  2. Making monthly income.
  3. Gaining leverage with cash-out refinancing.
All of these cash flow strategies share 2 common similarities:

Today, let’s dig deeper into the first cash flow strategy: putting less money down.

Put Less Money Down on Real Estate Investments

Investors who take this approach like to focus on leverage. Limiting the amount of money in each real estate deal leads to higher leverage. Higher leverage means you keep more money in your bank account. But it also means you lower your MONTHLY cash flow.

But that’s okay. It’s not always about monthly income.

It’s also about equity.

Investors who use this strategy aim to limit their initial outflow so they can keep more money in their pocket, and possibly buy more value-add properties with the same money.

What do we mean by that? Well, let’s take a look at a sample:

Let’s say Jane and John each have $50,000 to invest.

Jane decides to buy her property at the full retail value of $250,000 with a 20% down payment.

20% / $250,000 = $50,000

That’s Jane’s entire savings. So, she can only afford to buy the one property and must save up to buy another.

John, on the other hand, decides to use the BRRRR strategy to invest his $50,0000. Because he wants to limit the amount of money he puts down at closing.

So, John finds a wholesale property (aka, a discounted property) for $225,000 that has an ARV of $300,000. He puts $25,000 in for renovations, which leaves him with $25,000 in his bank account. Plus $50,000 of equity. He can use that money to do, well, whatever. That includes buying more value-add properties. We’re talking 2-4 additional houses.

So, while Jane used all of her $50,000 to buy ONE property, John used his $50,000 to buy multiple properties. Or simply live more comfortably.

Does this sound like your kind of cash flow strategy?

If not, no worries. There are still plenty of strategies to take, and our team is here to help you discover which one works best for you. We’re excited to set you on a path that makes you the kind of money you need…to live the life you want.

Happy investing!

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How to Make More Money: 3 Cash Flow Strategies

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How to Make More Money: 3 Cash Flow Strategies

How to Make More Money: 3 Cash Flow Strategies

How can you make more money? Well, today, we’re going to explore 3 cash flow strategies that will make your wallet very happy.

3 Cash Flow Strategies for Real Estate Investors

First of all, when most of real estate investors think about real estate investing, they think cash flow!

But here’s the thing.

Everyone has a different definition of cash flow.

For example, what cash flow means to John might differ from what it means to Jane. And what Jane values might drastically differ from what Jack values.

Of course, even if their cash flow goals differ, there are a few similarities between John, Jane, and Jack. Those similarities include:

  • Using the BRRRR method
  • Buying discounted properties
  • Making money (obviously!)

Now, while John, Jane, and Jack might share a few similarities in the real estate world, they also share many differences, especially when it comes to generating positive cash flow.

What kind of differences are we talking about?

Well, let’s take a look at their 3 individual real estate methods:

  1. Less Money Down: John likes to focus on leverage. He wants to limit his initial outflow so he can keep more money in his pocket. This strategy tends to work best for him and other investors who want to break even every month with their tax write offs.
  2. Making monthly income: This cash flow strategy is probably most popular, because it’s all about making money every month. Jane, who likes to take this approach, doesn’t mind putting some money down at closing. She also has a reason for wanting to generate consistent income each month. For example, she might need it to supplement her current income, replacing a full-time job, going on a big vacation every summer, or another reason.
  3. Refinancing: While some investors want to see money flowing into their bank account every month, others, like Jack, prefer to wait 2 to 3 years to refinance—or whenever there’s a movement in equity. When equity rises, Jack likes to get his money out of a property to use for his life and/or to buy more value-add properties.

As you can see, cash flow comes in all shapes and sizes.

  • John focuses on less money down.
  • Jane focuses on monthly income.
  • Jack focuses on refinancing.

Is one real estate method better than the other? Absolutely not. All 3 are valid cash flow strategies. It just depends on which one works best for you and the lifestyle you want.

So, what’s your strategy?

Our team is here to discuss your options, create a personal strategy, and set you on the path to making the kind of money you need.

Happy investing!

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3 Ways to Make More Money: How to Triple Your Cash Flow

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3 Ways to Make More Money: How to Triple Your Cash Flow

If you constantly dream of living your ideal life, but keep coming up against obstacles, then check out these 3 ways to make more money and starting tripling your cash flow.

 

Here are 3 ways you can start making more money today:

Boost your credit score.

Maybe you’ve heard this before, maybe you haven’t, but it bears repeating again and again.

Your credit score matters.

A lot!

The products you have access to, and the interest rates you pay all stem from your credit score. Which means your score can cost you thousands of dollars if it’s not high enough. It can also cost you the real estate loan you need.

We’re not talking about a 50-point difference. We’re talking about a single point. That’s right. Just one! For example, a score of 680 will get you a traditional conforming loan, but a score of 679 won’t.

That’s just one point.

So, what can you do to start boosting your credit? Well, here are a few tips:

  • Go private
  • Get authorized
  • Pay extra

Buy Discounted Properties

You can do what most people do and find a full-priced property on the MLS. Or you can connect with a wholesaler and take advantage of under market properties (aka, discounted properties).

Get out of your hard money loans.

If you buy a property through a wholesaler, or if you can’t obtain a traditional loan through a bank quite yet, then chances are you’ll need a hard money loan.

And, yes, hard money loans are expensive. So, you don’t want to get stuck in one too long. But maybe you ARE stuck right now. Well, you can boost your cash flow by finding a way out.

And there are options for everyone. That includes real estate investors who:

  • Haven’t been self-employed for more than 2-years.
  • Like to write everything off on their taxes.
  • Or haven’t owned a value-add property for more than a year.

These are just 3 ways you can triple your cash flow. And we can help you with each one!

Ready to chat? Great, our team is here to help you create a plan.

Happy investing!

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How To Buy 3 New Rental Properties This Year

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How To Buy 3 New Rental Properties This Year

How To Buy 3 New Rental Properties This Year

How does buying 3 new rental properties in 2021 sound? Whether you’re just starting out in real estate investing, or you’ve been around the block a few times, this is an achievable goal.

Really!

It all starts with 3 key steps.

This is How to Buy 3 Rental Properties in 1 Year

Step 1: Buy discounted properties.

Sure, you can try and find properties on the MLS, but you’ll have way more luck finding discounted properties through wholesalers.

Step 2: Buy FAST with a hard money loan.

Hard money is great because it doesn’t have the same timeline as conventional and other traditional loans. With hard money, you can close within days, not weeks or months.

And if you’re buying discounted properties from wholesalers, closing fast is essential. Because wholesalers have strict deadlines. Very strict. So, if you can’t close within a couple of weeks, then you might as well say bye-bye to those cash-flowing, value-add properties.

But we get it. Hard money is expensive. That’s why step 3 is so important.

Step 3: Refinance FAST out of a hard money loan into a long-term loan.

Like we said before, staying in a hard money loan too long can be pricey. So, the sooner you can refinance out of it, the better for you and your bank account.

Now, some of you might be thinking, “I can’t refinance into a long-term loan. The banks don’t like me.”

Well, here’s the truth: You have HUNDREDS of options when it comes to refinancing. Forget squeezing yourself inside a bank’s itty-bitty box of requirements. You can explore all sorts of options to ensure you’re able to buy a property fast with hard money, and then refinance fast with a long-term loan.

The key to all of this is working with the right lenders. Ones who know how to handle both hard money AND long-term loans.

Like us!

We’re able to help you buy fast through our company Hard Money Mike. Then we’re able to help you refinance into a long-term loan with our new sister company, The Cash Flow Mortgage Company.

Our unique, efficient, two-step approach to lending is critical to tripling your properties…and tripling your cash flow.

Remember, it’s all about:

  • Buying discounted properties.
  • Buying fast with a hard money loan.
  • Refinancing fast into a long-term loan.

Ready to buy 3 new rental properties this year? Let’s talk!

Happy investing.

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Real Estate Goals: How to Turn 2020’s Lemons into Lemonade

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Real Estate Goals: How to Turn 2020's Lemons into Lemonade

Real Estate Goals: How to Turn 2020’s Lemons into Lemonade

It’s 2021, which means it’s time to come up with some fresh real estate goals.

The year 2020 had its opportunities, sure. But we think it’s fair to say that, overall, it was a year full of lemons.

Lots and lots of lemons.

Make Money In Real Estate - Turn Lemons into Lemonade

And, yeah, we know 2021 isn’t going to be overflowing with daisies. But we think it’s time to take 2020’s lemons and make them into lemonade (hmm, lemonade!). It’s time to come up with more than goals and resolutions this year. It’s time to come up with a plan. A plan to:

Let’s not wallow in fear and uncertainty in 2021. Instead, let’s look on the bright side and generate positive cash flow. Because in good times, bad times, and in-between times, someone will always make money. Why not you?

So come on, let’s chat about your goals and a plan to achieve them this year. Because our team is eager to set you on a path to help you make the kind of money you need to live the life you want.

Happy investing!

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