Tag Archive for: real estate investing

Real Estate Deal: Why Did My Bank Say No?

Are you trying to close a real estate deal, but your funding was rejected? Are you wondering, “Why did my bank say no?”

Well, you’re not alone. Many real estate investors always been told: Find a bank and create a relationship with them. If you do, then life (and loans) will be easy.

So, why, after building these so-called relationships do banks still say no every time you apply for a real estate loan?

How many of us have been in this situation? Well, probably most of us.

But, why?

The reason most banks say no is because they only have 1-2 options for real estate investors. At best! And, wait for it, you probably don’t currently fit in their tiny, little boxes.

The truth is, banks carry very limited options for real estate investors.

Banks have many loans coming in their door. Too many. That means they can cherry pick. If it doesn’t fit in their itty-bitty box, they can just tell you, “No.”

So, you probably won’t fit in most banks’ small, strict, picky boxes if you:

  • Are a new investor.
  • Like to write everything off on your tax returns legally.
  • Want to refinance before you own a property for an entire year.

We’re talking about 97% of banks.

Even worse, banks won’t want to refer you to someone who can say yes. Because then you’d start asking too many questions on why they can’t give you a loan. Banks might not want your real estate investment loan, but they definitely want to keep your deposits and bank accounts.

The inside secret here is you need to call a lot of banks until you find one that’s still lending to investors and has a loan for you.

But be warned!

No bank will agree to close a real estate loan for you if your income doesn’t fit inside that tiny, little box of theirs.

You also always need tax returns with banks, and they need to be the type of tax returns where you can’t write everything off. And here’s the kicker of it all: You might find a bank that works for you, but then they decide to stop lending to investors. It just happened here in Colorado. One of the top investor banks just stopped lending.

So, when banks say no to you, understand that this is their usual response. You always have to remember they have limited products and limited amount of funds to lend out.

But don’t get discouraged!

Just look for a lender who focuses on real estate investors and offers options.

Because, really, there are HUNDREDS of options for investors. Options for:

Options and strategies will always accelerate you faster than trying to change your circumstances to fit all those small, itty-bitty boxes of banks.

That’s why we focus on investors, offer hundreds of options, and develop personal strategies to help you multiply your cash flow.

Ready to chat about your next value-add property’s funding? Our team is here to help!

Happy investing!

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The Smart Way to Invest in Real Estate

If your goal is to make money and generate positive cash flow, then you need to be smart about the way you invest in real estate.

And one of those ways is finding the RIGHT lender for you. Especially if it’s a lender who can help you with both your hard money and long-term loans.

At the Cash Flow Mortgage Company (previously known as Investor Real Estate Loans), our dedicated, hardworking team focuses on 3 important steps:

Offering OPTIONS

Whether it’s hard money, bridge loans, refinances, or 30-year mortgages, we have the skills, knowledge, and credentials to handle every step of your real estate deals.

Providing a fast and efficient system.

Speed and efficiency are pivotal in the real estate business, especially when it comes to value-add properties. If you can’t close quickly, then you will likely lose precious opportunities…and a lot of money.

Why?

Well, because when you use multiple lenders, you’ll waste time shopping around, getting rejected, filling out the same paperwork you filled out for the last lender, and dealing with countless other obstacles.

We’re here to help you get off that frustrating hamster wheel once and for all. We focus on streamlining your system so you can take advantage of every opportunity and leave your competitors in the dust.

Helping you make a lot of money!

Cash flow is king in this business and we want you to rule the areas you invest. By giving you multiple options and helping you streamline your process, we’ll help you double, triple, or even 10X the amount of money you make. And we’ll help you do it with a lot less stress and frustration.

The Cash Flow Mortgage Company is all about you and making you money. Because cash flow makes life flow.

Ready to chat about your loan options? Great, we’re here and ready to help.

Happy investing!

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Money Making Tips: How Your Lender Can Make or Break Your Cash Flow

Money Making Tips: How Your Lender Can Make or Break Your Cash Flow

Looking for some money making tips? Well, did you know your real estate lender can make or break your cash flow?

How Your Lender Can Make or Break Your Cash Flow

If you’re a real estate investor, then you probably strive to to multiply your cash flow. Because, in this business, cash flow is king!

But did you know the lender you choose makes a HUGE impact on your cash flow? Most lenders only care about themselves, while other lenders care about YOU. The right lender will want to focus on making you a lot of money as fast as possible.

If you choose the right lender, you can move quickly and efficiently through the lending process. Meanwhile, your competitors will get buried in paperwork and rejections.

How is this possible? Well, if you find a good, flexible, INVESTOR-FRIENDLY lender, then you’ll be given a lot of options. You won’t have to squeeze yourself or your real estate portfolio into a tiny qualification box (think banks). You’ll be able to find a loan product that fits YOU.

You’ll be able to buy value-add properties FAST with a hard money loan, and then turn around and refinance into a long-term loan with much lower rates. Think one-stop-shop for all your real estate loans.

Want to discover more? Our team is ready to talk about your plans and help you achieve your money-making goals. 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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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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Check out this cozy little hold-and-rent property our client purchased Greeley, Colorado! This deal was funded using a Hard Money Mike loan.

We love seeing our clients’ success stories and look forward to checking in on the progress with their investments.

Ready to fund your own investment property deal? Chances are good that we can help!

Hard Money Mike is a lender based in Colorado. We regularly lend money on all types of commercial-based properties. So whether you have your eye on a potential fix-and-flip, vacant land, whole tailing, or a builder bridge loans, we’re happy to help make your investment property dreams come true.

We even lend on deals in several states outside of Colorado, so don’t let our location stop you from achieving your investment goals. If we’re not yet lending in your state, we’re still happy to discuss your numbers and plans with you to make sure you’re on the right track.

In the market for a property in the single-family or commercial sector? Our sister company The Cash Flow Mortgage Company funds investor loans on those, too! We’ve got a lending solution to most investment opportunities, so let’s get you on the path to investment property greatness.

Questions or just need help deciphering your numbers? Feel free to reach out!

Hard Money Mike 303-539-3000

*All non-commercial and construction loans offered by TNS Loans NMLS #1719349

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What We Know:

Rates on the conventional side have maintained strong with rates in the low 3’s. If you’re still wondering whether or not you should refinance, we’re going to dive into what we call ‘The Tipping Point Rate.’

This week, we’re seeing more larger non-conventional companies dipping their toes back into the investor loan water. This gentle ease back in helps increase liquidity, but it still comes at a price:  Lower LTVs and higher costs.

What This Means for You:

There is an exact rate where it’s wise to refinance. We call this ‘The Tipping Point Rate.’ This specific rate is the point where you won’t pay a penny more in principal and interest over the life of the loan.

Calculate the tipping point rate on your refinance

Going above this point might increase your cash flow, but it will end up costing you more in the long run. Sometimes this means it’s better to stick with what you have now.  We’re focused on putting more money in your pocket and less in the bank’s pocket.

This is for investors looking to increase monthly cash flow without adding lifetime cost of debt. So, if you’re solely concerned about your monthly cash flow, this probably isn’t the program for you.

So how does this work? Let’s take a look at an example.

Joe is an investor who is looking at refinancing to increase his cash flow every month. But not if it means paying tens of thousands of dollars extra to the bank in principal and interest.

Joe has been paying his current mortgage for 5 years. If he keeps the loan until it’s paid in full, he’ll end up paying $360k in payments over the next 25 years.

Joe wants to know the exact rate that he can refinance to a new 30-year fixed without increasing his amount owed. If it exceeds $360k, then he won’t refinance.

By knowing this exact rate, he can stretch his payments out and lower his interest rate without paying a penny more over the life of the loan.

How do we find Joe’s Tipping Point Rate?

Luckily, we have a handy program that can calculate just that.  If you would like to know your own Tipping Point Rate, send us an email!  We’ll run the report specifically for you and your property!

Note: The Cash Flow Mortgage Company doesn’t currently lend in all states, but we are always happy to help and make sure you understand your numbers!

*All non-commercial and construction loans offered by TNS Loans NMLS #1719349

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Check out these inspiring Before-and- After property transformation photos! These pics come courtesy of one of our clients’ fix-and-flip projects in Canal Winchester, OH!

Quite the amazing kitchen glow-up.

We love seeing the results of hard work and the creative vision our clients hold for their investment properties and rehab projects. All it takes is a little inspiration, a lot of hard work, and some investment capital to get started on your investment property transformation journey.

And we’re happy to help with that last part.

When you go through Hard Money Mike, you can count on a hassle-free process for rehab projects like this one. Hard Money Mike is a lender based in Colorado, lending money to several states, including Ohio. We regularly lend money on all types of commercial based properties: fix and flip, land, whole tailing, and bridge loans. So regardless of what type of property transformation you’re trying to achieve, chances are, we can help you fund the deal!

Call Mike Bonn at 303-539-3000 or email Mike@HardMoneyMike.com

*All non-commercial and construction loans offered by TNS Loans NMLS #1719349*

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What We Know:

The markets are stabilizing, and underwriting term times are back in pre-Covid standards.

With rates for single-family investor properties on conforming loans hovering around the low 3’s, it might be time to look at locking in and increasing your cash flow.

What This Means for You:

As an investor, there is money in the money—Your money!

Your credit score is the key to keeping more of your money. No matter your income situation, the better your score, the cheaper the money. Cheaper money equals more cash in your pocket.

Investor Credit Score impact

Last week, we showed you how much money can be saved with a good credit score. Now, it’s time to go over how to increase that score quickly.

How to raise your score and increase your cash and cash flow

Want to save money as an investor? It might be time to crunch the numbers

Do you want to keep money in your life or keep supporting a banker’s life? We’re pretty sure we know the answer to that particular question.

They say that Vegas was not built on the gambler’s winnings. The same can be said about banks. Banks keep popping up everywhere, even when most banking has gone online.

 

Why is that? Because they know there’s money in your money.

 

So how can you better prepare your credit score for an investor loan?

  1. Plan before you apply by checking your score online.
  2. Stop applying for ANY credit at least 60 days before a loan application.
  3. Raise your score with one or two of these simple methods:
    • Use private money when you can and keep it off your credit. If you can borrow from a private individual or entity that doesn’t report on credit to pay off/down your credit, do it BEFORE your next statement date.
    • Don’t close paid off accounts.
    • Pay down your credit cards before due dates. This will take extra cash now, but it will save you tens of millions in the future.
    • Keep balances below 30% of outstanding balances on revolving accounts like credit cards.
    • Dispute any item that should not be on your report.

This list does not include paying your accounts on time. That’s a no-brainer. You should always pay on time. There’s typically no quick fix for late payments.

Stay tuned, because next up, we’ll be covering how to check your credit on your own! In the meantime, if you have questions about your score, what it’s costing you, or what a better score could save you, reach out! We’re always happy to go over the numbers with you!

*All non-commercial and construction loans offered by TNS Loans NMLS #1719349

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a less than perfect credit score is eating away at your profit.

How much money might a lackluster credit score be costing you over the life of your investment business?

the impact of your credit score

You probably hear a lot of talk in the mortgage industry about your credit score and the effect it can have on your interest rates, but do you really have an idea of how much it’s affecting your bottom dollar?

Do you know how to determine your Return on Credit (ROC)?

Can you crunch the numbers to figure out how much your score is helping your cash-flow (or how much money it’s sucking out every month?)

These calculations can get complicated, but the takeaway here is that a less-than-stellar score can really be costing your tens of thousands of dollars over the lifetime of your loan. And when your loan is on an investment property, (or several,) you may as well be lighting your profits on fire.

a less than perfect credit score is eating away at your profit.

We want to help! Contact our team so we can help you see where you’re currently at, and where you could be going instead.

Let’s get you to your goals faster by trimming some of the fat from your financing!

Hard Money Mike is a lender based in Colorado offering services in several states. We lend money for all varieties of commercial-based properties. So whether you’re trying to finance a fix-and-flip, vacant land, whole-tailing, or looking for a builder bridge loan, we’ve got you covered.

Call Mike Bonn at: 303-539-3000 or email Mike@HardMoneyMike.com

*All non-commercial and construction loans offered by TNS Loans NMLS #1719349

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to refi or not to refi

To refi, or not to refi: That is the question.

And we get this question a LOT. “Does it make sense to refi if I only plan to hold onto the property for a few more years?”

Earlier this week, we discussed the power of refinancing (and the math behind it.) Do the numbers support taking on extra years of payments?

For some of you, they do. For others, you might be left thinking, “But wait! What if I’m not going to keep the property for 24 or 30 years? At what point does it actually make sense to refinance?”

However, if you are not going to keep the property through the next 30 years, you’ll need to look hard at what the costs will be over the expected period. The key here is determining which path will cost you more money and which one will keep more in your pocket.

GOAL: Keep more money in your life and less in the hands of bankers.

Let’s look at an example:

You’re planning to keep a property for 3 years and then sell it. The question is, what will put more money in your pocket and cost you the least over those next 3 years?

Here is how we figure this out:

Step 1: Ask your mortgage company to run an amortization chart on your current loan and your new loan.

2: Then, pull your principal and interest from your current mortgage company’s website.

3: Next, ask your mortgage broker to give you the principal and interest from the new loan.

4: On each loan, multiply the payments by 36 (the 3-year window before you sell the property) and add the balance of your loan at the end of 3 years.

5. Lastly, compare notes and find out what would be the lowest amount. This is the one that will keep more money in your pocket.

Ultimately, this is just a pure and simple scenario of determining exactly how much the loan will take out of your pocket over the course of 3 years. We’re not looking at monthly cash flow, because true dollars out are pure and simple. This is your true cost out of your pocket.

If you need help, we’re happy to step in. Give us a call, and we can run all the numbers for you and see if it makes sense.  If it does, we can help you out even further by securing low rates and costs on your refi!

*All non-commercial and construction loans offered by TNS Loans NMLS #1719349

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