Tag Archive for: invest

How to Buy a Rental Property: 5 Ways To Fund Your Real Estate Deal

Do you want to know how to buy a rental property? Then check out these 5 ways to fund your real estate deal.

If you’re interested in generating positive cash flow with a rental property, then it’s important you know how to actually BUY a rental property. Like, where does the money come from? Because most real estate investors don’t have hundreds of thousands of dollars sitting around.

Most will need a real estate loan.

So, let’s take a quick look at the various types of real estate lenders you can rely on to fund your rental properties. Just like fix and flips and other value-add properties, you have 5 different options, and each of these options have various pros and cons.

How to Buy a Rental Property: 5 Ways To Fund Your Real Estate Deal

Hard Money.

Hard money is a great option when you need to close a deal fast. We’re talking days instead of weeks or months. Plus, most hard money lenders offer 100% financing.

The downside is hard money can be expensive. Rates tend to be higher than other lenders. But this type of loan is intended to be short-term. If used correctly, you only pay these high rates for 6 months or less.

Non-Traditional Loans

Another option to buy a rental property is using a non-traditional loan. These are excellent for those who don’t have—or don’t want to use their tax returns. Unfortunately, they also come with high rates, so they’re more expensive than some of your other real estate funding options.

Banks

Banks are useful for those who can make the cut. They offer lower rates and allow you to keep your real estate loan in your LLC or business name.

But banks also have the strictest requirements, and if you don’t meet those requirements, you’ll get rejected. Worse, they require 3-5 year terms, so you can’t get in and out of them as fast as hard money and other loan options.

Traditional Loans

Traditional loans are one of your cheaper options because they offer the best rates. But be careful, because these types of loans have stricter requirements. And, unlike banks, you can’t put the loan in your LLC or business name. You have to keep it in your personal name.

OPM (Other People’s Money)

Compared to all the other real estate lenders, OPM offers the lowest cost and highest flexibility. You only pay interest, so there are no points or other random fees. Better yet, you and your lender can set the terms together.

The only downside to 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 go. If you’re interested in buying a rental property, one of these 5 options can help you actually BUY it. Which one is the best? Well, there’s no right answer to that, because every real estate investor has a different path. What works for you might not work for someone else.

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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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.

Temporary Funding: How to Generate Positive Cash Flow with 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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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.

Attention Real Estate Investors: Introducing 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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Friday Fun: Get Pre-Approved

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Friday Fun: Get Pre-Approved

Friday Fun: Get Pre-Approved

Before you invest in real estate, get pre-approved. Want to learn more? Contact us. Our team is ready to guide you to financial success!

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