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

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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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What Is Cash Flow and Why You Need It

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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?”

What is Cash Flow and Why You Need It - Explainer Video

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 Getting A Fix and Flip Loan

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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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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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Credit Score Tips: How To Reel in Thousands with Your Credit Score

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How to Reel in Thousands with Your Credit Score

Credit Score Tips: How to Reel in Thousands with Your Credit Score

Let’s dive into some credit score tips today.

Did you know your credit score is the bait in your life that will either catch big prizes…or big flops?

If you toss YOUR credit score in life’s lake, what can you expect to catch? Well, it depends on what you have in your tackle box. And what you have in your tackle box depends on how well you’ve taken care of your credit score.

Credit Score Explainer: Make Thousands with Credit Score

For example, if you pay your monthly bills on time, keep your credit usage below 30%, and focus on building a good credit mix (meaning you have a house payment, a car payment, credit cards, insurance plans, etc.), then you probably have some excellent lures and juicy bait to toss in the water and catch something big!

We’re talking about your dream house, a new car, a heftier retirement account, and just about anything else you’ve hoped to have in your life.

Because the better your credit score, the lower your rates. And the lower your rates, the more money you accumulate over time.

Think about it. If you have a score of 760 or higher, then you’ll likely reel in at least an extra $250,000 by the time you retire. All because you paid lower interest rates than someone who had…well, bad bait.

Those who have bad bait in their tackle boxes tend to have scores under 650.

This kind of bait isn’t going to get chomped on. It won’t even get a lot of nibbles. In fact, the only thing these subpar credit scores will reel are rejections and high interest rates. Which means you won’t get to feast on a dreamy life. More likely, you’ll have to scrounge and struggle to get what you want. Be it a house, a car, a loan, or even a small retirement account.

And that extra $250,000 that people accumulate in their bank accounts when they use good bait? Forget about it!

But fear not!

The good, tasty bait is available to anyone who wants it. You just have to put your pole down and start working on boosting your credit score. Which isn’t even all that hard. It just takes a few quick, consistent steps to start raising it.

Again, think about:

  • Paying your bills on time every month
  • Keeping your credit usage under 30%
  • Getting a loan to help you pay off your credit cards

Check out some of our other videos for credit score boosting tips.

If your tackle box (aka, your credit score) needs a little help, our team is here to help. Because we truly believe everyone deserves to fish in a lake that’s filled with juicy prizes.

Happy investing!

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

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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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How To Boost Your Credit Score in 3 Easy Steps

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How To Boost Your Credit Score in 3 Easy Steps

How To Boost Your Credit Score in 3 Easy Steps

Let’s talk about 3 easy steps you can take to boost your credit score.

Now, what’s the big deal about credit scores? Well, think of it like a baseball game. You can hit it out of the park and claim victory…or strike out and lose.

When you win the credit score game, you win countless opportunities. These include:

  • Good rates
  • Affordable loans
  • And, in the end, hundreds of thousands of dollars.

Yeah, really. Hundreds of thousands of dollars. Because a good credit score means cheaper bills that add up over the years.

So, what does a winning credit score look like? Ideally, you want to aim for 700 or higher. But the higher your score, the better your chances of taking home a big trophy.

Let’s take a look at 3 easy strategies to help you prepare for this financial game.

Increase Your Available Credit

Call your credit card company and apply for a higher limit. That way it’s easier to keep your credit usage at around 30%. What do we mean by that? Well, let’s take a look.

If your credit card balance is $800 and you have a maximum credit line of $1,000, then creditors can see you’re using 80% of your available funds…which, to them means you’re living on the edge and struggling to meet your financial obligations.

Ouch.

Now, if your credit card balance is $800 and you have a maximum credit line of $2,000, then creditors see you’re only using 40% of your available funds. Still not a home run, but you’ll definitely score a few runs.

Because the better your credit usage, the better you’ll look to creditors. They’ll see you as someone who’s financially responsible. AKA, you pay your bills.

Pay Extra

A large part of your credit score is based on your monthly reported balances to the credit bureaus.

If you can find cash to pay down extra on your credit card before your next statement due date, then the credit bureau will be very happy with you. And your credit score will go up.

If those first two strategies don’t work for you, then you can always take a third approach.

Get a 60 to 90 Day Note

You can get one from a bank, a family member, a friend, or a private lender—like us! Use the funds to pay down or pay off your credit cards so you can keep your projects moving along. And your cash flow…well, flowing!

If you take one, two, or all three approaches to boosting your credit score, then we can guarantee you will knock it out of the park and win the credit score game!

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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How to Make Money with a Bridge Loan

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How To Make Money with a Bridge Loan

How to Make Money with a Bridge Loan

Let’s talk about how you can make money with a bridge loan, especially if you’re stuck in a project or need temporary funding.

Now, you might be wondering, “What the heck is a bridge loan?” Well, it’s basically a short-term loan that closes a financial gap.

Bridge Loans Explained for Real Estate Investing

Let’s take a look at an example. If you have a hard money loan for a fix and flip or another value-add property, but you’ve run out of money, then this could be a perfect solution to help you finish it.

Because it’s way cheaper to get temporary funding than to get stuck in an expensive loan. It could take months or years for you to figure out a way to come up with the money to complete the project.

Not to mention dealing with the costs of an incomplete project. You have to think about things like materials, contractors, taxes, insurance…the list goes on and on.

Bridge loans also work great for starting a new project while waiting for current project to wrap up. You can use the equity in the current project to secure a new one. Once your current project closes, you can pay off the bridge loan and move on to your next real estate deal.

You can even use this type of funding to make a cash offer on a value-add property.

Essentially, a bridge loan is immediate cash flow.

It’s an excellent way to keep your projects moving along and your cash flow, well, flowing! Bridge loans prevent you and your bank account from growing stagnant—or worse, depleting. And that’s the last thing we want to see happen.

If you’re ready to chat about your options, we’re here to help! Our team is 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

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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.

How to Get a Real Estate Loan Without Tax Returns

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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