Tag Archive for: cash flow

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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How To Make More Money With More Lender Options

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How To Make More Money with More Lender Options

How To Make More Money With More Lender Options

Let’s talk about how you can make more money with more lender options.

Because one of the biggest problems that impacts your cash flow is getting too comfortable with a single lender.

We’re talking about thousands-of-dollars-kind-of-impact.

The Alarming Truth About Your Real Estate Loans

Let’s face it. Sometimes it’s just easier to keep using the same lender for all your loans. But here’s the truth: Sticking with the same lender will suck money out of your pocket every month and make banks fatter.

Stop giving the banks your extra money every month!

That’s money you should be using to make your life easier and more enjoyable. If you want a leg up on most real estate investors, then spend an hour or so and shop around for lenders who can get you the best deal on each loan. Why? Because not all lenders are made the same or have the same products available. Or, worse, they think mainly of how much money they can make and not how much they can increase your monthly cash flow.

Let’s look at two examples that cost our clients thousands of dollars. All because they didn’t want to shop around or change their current lenders:

Example #1

Our team recently spoke with two couples who purchased a fix and flip together and decided to keep it. Neither had tax returns that made the cut to qualify for a traditional loan. So, they needed to use a non-traditional loan that qualified them using bank statements for income.

An important side note: Once you venture into non-traditional loans, rates can vary greatly between lenders. There are fewer lenders who offer these products, which leads to them charging higher fees.

So, back to our example! Our two couples entered a loan for $575,000 that had a 5.8% interest rate. They stuck with this loan for two weeks until they called us to chat about other options.

Our team priced the same loan 1.5% lower. That cheaper rate saved them hundreds of dollars every month, which means they enjoyed a huge boost to their monthly cash flow.

Example #2

A real estate investor reached out to us to chat about a rental property he wanted to purchase.

His current hard money lender offered him a loan that wouldn’t require him to use his tax returns, because he writes everything off and doesn’t show taxable income.

He decided to call us to see if he had other options. Using just market rents and a good credit score for approval, we were able to quote him a rate 1.125% lower than the lender he was currently working with.

Again, this was a big cash boosting move on his part. All because he chose to shop around rather than stick with who and what he knew.

As the markets tighten, there ARE ways to increase your positive cash flow. And there ARE ways to get the best rates and loan products for your unique situation.

Often times, it pays to avoid hitting the easy button for your loans. We understand comfort zones are a big deal for a lot of real estate investors, especially when it comes to funding their value-add properties.

But if you don’t break out of your comfort zone, you and your cash flow won’t grow the way it could (or should). So do your due diligence and spend the time shopping around. Go ahead, and discover your lender options. If you do, we can guarantee you’ll see your cash flow soar.

Ready to chat? Great, our team is here to help. We’re excited to set you on a path the helps you make the kind of money you need to live the life you want.

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How The Cash Flow Mortgage Company Can Help You Make More Money

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How The Cash Flow Mortgage Company Can Help You Make More Money

How The Cash Flow Mortgage Company Can Help You Make More Money

Discover how the Cash Flow Mortgage Company can help you make more money!

Attention all real estate investors! Investor Real Estate Loans has changed its name! We’re now The Cash Flow Mortgage Company.

Our new business name represents exactly who we are and what we focus on: Cash flow!

As a mortgage company, we help clients achieve positive cash flow success through 3 key strategies:

  1. Reducing finance costs (we can help you do this monthly or over the life of your loan).
  2. Lowering down payments so you can keep more money in your pocket.
  3. Using quick, proven strategies to raise your credit score. Because better scores equal better rates. And better rates equal better products.

Our team continuously focuses on these 3 pillars of our business, because we want to make sure you have plenty of options to increase your cash flow.

Speaking of options, we offer real estate investors plenty of flexibility, too. For example, if you don’t have tax returns (or don’t want to use them), we provide a variety of loan products. Or if you need a real estate portfolio, we can show you how to build one. Or if you want to invest in real estate without breaking a sweat, we can teach you about OPM (Other People’s Money) and other hands-off investment options.

It’s all about finding ways to make you the most money possible. Because when you have positive cash flow, you can kick back and relax a lot more often.

Ready to chat? Great! Our teams is here and ready to help you out. 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.

Happy investing!

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Temporary Funding: How to Generate Positive Cash Flow with a Bridge Loan

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Temporary Funding: How to Generate Positive Cash Flow with a Bridge Loan

Temporary Funding: How to Generate Positive Cash Flow with a Bridge Loan

Temporary funding is one of the keys to real estate investing right now.

So, the world is going a little crazy lately. Things seem to be changing on a daily basis. Many areas of the country are seeing extremely low inventory, which makes it harder to find profit-making deals.

So, what can you do to ensure your cash flow doesn’t take a major hit during these strange and uncertain times? Especially if you’re stuck in a project or need temporary funding?

We suggest getting a bridge loan.

What is a bridge loan?

It’s basically a short-term loan that closes a financial gap.

For example, let’s say you have a hard money loan for a fix and flip or another value-add property, but you’ve run out of money. Well, you can get a bridge loan to help you finish your project. Because it’s way cheaper to get a short-term loan than to get stuck in an expensive long-term loan for months or years while you figure out a way to come up with funds to complete it.

Not to mention dealing with the costs of an unfinished project. Think about materials, contractors, taxes, insurance…the list goes on and on.

Think about your next project!

Bridge loans also work great when you are looking for your next project, but your current project’s closing is delayed. A bridge loan can help with this. It allows you to use the equity in the current project to secure a new one. And then when your current project closes the bridge loan is paid off and you’re on to your next project.

These loans keep your business humming without the stalling out due to lack of funds. You can even get a bridge loan so you can make a cash offer on a real estate deal.

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! It also prevents you and your bank account from growing stagnant—or worse, depleting.

Ready to chat? Great! Our team is here to help.

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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Credit Score Problem: What is the Big Credit Dilemma?

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Credit Score Problem: What is the Big Credit Dilemma?

Let’s talk about a major credit score problem and how it impacts cash flow.

Every day, we hear about common roadblocks that prevent our real estate investors from making the kind of positive cash flow they need.

Today, we’re going to explore the number one roadblock that we hear about from clients:

A low credit score caused mainly by high credit card balances. Because the lower your credit score, the higher your rate and the fewer loan options you have available.

 

But, here’s the kicker: You need a loan to pay off your credit cards to raise your score.

Not only that, but a higher interest rate might kick you over the allowed debt-to-income ratio and prevent you from getting approved for a loan.

How do you win at this game? The deck is stacked against you.

It’s okay. Really!

We’ve seen this problem a hundred times in our business because every real estate investor uses their credit to finish renovating a value-add property or run a business. It’s a cycle that’s downright hard to get out of.

Our solution? Take it private.

Like the many other clients we’ve helped, we can help you fix your credit score problem by setting up a private loan. That way you can:

  • Pay off your credit cards
  • Raise your score
  • And get the loan and rate you need.

Once you do all of that, you can pay off your private loan and resume normal business with the best loan you can get. Signed, sealed, and delivered.

We also can help you build your business credit and take your credit cards completely off your score.

Either way, this little trick can help you and thousands of others get better rates, pay less to the banks, and make life more profitable.

Happy investing!

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Attention Real Estate Investors: Introducing The Cash Flow Mortgage Company

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Attention Real Estate Investors: Introducing The Cash Flow Mortgage Company

Attention Real Estate Investors: Introducing The Cash Flow Mortgage Company!

At Investor Real Estate Loans, we decided it was time to change our name to convey who we REALLY are. That’s why we chose to call ourselves The Cash Flow Mortgage Company.

Our new business name represents exactly who we are and what we focus on: Cash flow!

As a mortgage company, we strive to provide real estate investors with the best loans possible, meaning we offer plenty of options and flexibility. Because every investor is different and needs a loan that fits THEIR needs (not ours).

We help all of our clients achieve cash flow success through 3 key strategies:

  1. Lowering your finance costs. Because the lower costs, the more money you make.
  2. Lowering the amount you have to put into the purchase of a rental property. We like to call this the 2-Step Process, but some know it as BRRRR or a $0 down rental purchase. Whatever the case, it’s the correct way to handle the loan side of your investments, and it’s very important if you want to boost your cash flow.
  3. Use quick, proven strategies to raise your credit score. Why? Because the higher your credit score, the better your interest rates. And the better your interest rates, the more money you save every month. We like to call this your Return on Credit.

We strive to constantly focus on these 3 pillars of our business so that you have plenty of options to increase your cash flow. 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.

Welcome to the new and improved Cash Flow Mortgage Company. We can’t wait to chat with you about your value-add plans!

Happy investing!

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Busting Hard Money Myths: Why Hard Money is a Cure, Not a Curse

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Busting Hard Money Myths: Why Hard Money is a Cure, Not a Curse

Busting Hard Money Myths: Why Hard Money is a Cure, Not a Curse

Today, we’re going to wrap up our Busting Hard Money Myths series, and talk about why hard money is a cure, not a curse.

But, first, be sure to check out our YouTube channel in case you missed any of our other hard money myth busting videos.

So, this past month, we’ve explored the important question of, “What is hard money?” That means we’ve busted myths and revealed how it:

  • Can be acquired for cheaper rates than most investors believe.
  • Are NOT a trap if you create a plan ahead of time.
  • And can be cheaper than bank lines.
Why Hard Money is a Cure for Real Estate Investors

As you can see, hard money is far from a curse.

It’s a cure.

A cure to:

  • Buying properties faster and cheaper.
  • Keeping your real estate investment projects moving along so you can sell or rent ASAP.
  • Boosting your cash flow.
  • Tackling more value-add properties than you ever could with a traditional bank loan.

Look, hard money gets a bad rep because so many real estate investors have serious misconceptions about it. But if you address each myth and see that that’s all it is—a myth—then you can transform your investments and generate positive cash flow.

No longer will you be limited to conventional loans that are harder to qualify for, and far more time consuming. Now you can buy fast, renovate fast, and either sell or rent fast.

Remember, time is money.

And hard money is the key to keeping your real estate deals moving along—AND keeping money flowing into your bank account.

Ready to chat about your hard money and other lending options? Great! Our team is here to help. 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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Busting Myths: How Hard Money Can Be Cheaper Than Banks

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Busting Hard Money Myths: How Hard Money Can Be Cheaper Than Banks

Busting Myths: How Hard Money Can Be Cheaper Than Banks

Let’s keep busting hard money myths and talk about how hard money can be cheaper than banks.

But, first, in case you missed our other hard money myth busting videos, check them out on our YouTube channel!

So far, we’ve busted common myths like “Hard money is too expensive,” and “Hard money is a trap.”

Now, let’s look at another common misconception about hard money:

“Bank lines are cheaper than hard money.”

This is Why Hard Money Can Be Cheaper Than Banks

Okay, on the surface, bank loans are cheaper. Yes, that part is technically true.

However, when you scratch below the surface, you’ll discover hard money can be cheaper. All because of one important factor that doesn’t get calculated into the equation at the start of a loan:

Timing.

Think about how long it can take to close a bank loan. You might get lucky and close within 30 days, but it often takes longer. Sometimes MUCH longer.

Hard money, on the other hand, moves much, much faster. You can usually close within two weeks, but it can be even faster. Some lenders can close in just a few days. When you close faster, you can get to work faster…which means you can complete your project faster. Faster projects mean more money in your pocket.

Another timing issue real estate investors fail to consider: The amount of time it takes to fund escrow.

AKA, your rehab.

If it takes longer to access those funds, then it’ll take longer to pay your contractor. And if your contractor isn’t paid quickly enough, they might move on to another value-add property project.

Not only does it take banks longer to approve escrow funds, but they have stricter guidelines. Let’s look at an example:

You want to withdraw $10,000 from your escrow account to pay your electrician. But when you get the invoice from your electrician, you realize you only needed $8,000.

However, your plumber suddenly also needs to be paid $2,000.

Unfortunately, the bank won’t care about your plumber. They’ll send you only what you need to pay your electrician since that’s what you originally asked for.

You’ll have to waste precious time sending in another request for the $2,000. Within that time, your plumber might take off and find a different project. They can’t wait around for you to pay them so they can complete their work.

That means you have to search for a new plumber…which means you waste time.

And time is money!

Hard money lenders respect that.

Most of them focus on moving fast, being flexible, and working with you to get you through your project as quickly as possible so you can tackle your next real estate deal.

So, there you have it. In the long the run, hard money can be cheaper than banks.

Again, it all comes down to timing. And, again, time is money in real estate investing.

Stay tuned for our next video where we talk about the biggest and most misleading myth of all:

Hard money is a curse.

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