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Money Chat: How to Fund a Flip

Don’t Forget to Join the Money Chat: How to Fund a Flip

Want to know more on how to fund a flip? Then don’t forget to join our Money Chat tomorrow with lending expert, Mike Bonn.

During Tuesday’s Money Chat, Mike will spend time answering all of your questions on how to fund a flip and other real estate deals.

If you’ve always wanted to get into the real estate game, but don’t know where to start when it comes to buying properties, then this Money Chat is perfect for you!

This is your chance to join other like-minded real estate investors and ask all of your questions to a lending professional.

Money Chat Reminder: How to Fund a Flip

If you’d like to join Mike’s Money Chat tomorrow, then you can register for FREE here.

During the virtual call, Mike will 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…and how to pay for your properties.

Can’t make it to tomorrow’s chat? No problem, because we’re running another Money Chat on 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 both Money Chat, no sweat. We’ll be hosting many more in the future. Plus, our team is always here to assist you.

So, mark your calendar!

When?

Tomorrow at 6 PM MST

Where?

Virtual nationwide.

Register for free at my.demio.com/ref/1j9cO1wJ3Co6QkW1

Mike Bonn and the rest of the Hard Money Mike/Cash Flow Mortgage Company 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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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 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.

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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Financial Independence

What is the answer to your financial independence? Well, the answer is easy. You need positive cash flow!

When you have solid, consistent money flowing into your life every month, then you can live the life YOU want.

What does generating positive cash flow every month mean to you? Well, it might mean:

  • Taking an annual skiing trip to the Alps.
  • Sitting in a cozy coffee shop and writing a book.
  • Buying a bigger house for you and your family.
  • Quitting your day job so you can invest full-time…and bring even MORE money into your life!

Or maybe you simply want to live more comfortably, without stressing about bills and groceries and all the other expenses that keep you awake at night.

You see, when you have good cash flow appearing in your bank account every month, life’s just better. It’s as simple as that. You’re no longer tied to fear, anxiety, stress, an unwanted job, or unfulfilled dreams. You can take control and be free of the rat race forever.

Want to discover how you can bring more cash flow into your life and gain financial independence? Well, good, because our team is here to help you learn about your options. Because there are many when it comes to producing sustainable, reliable cash flow. These include:

  • Investing in real estate. AKA, fix and flips, rentals, and other value-add properties
  • Improving your credit score
  • Getting out of an expensive loan and into a more affordable one.

Ready to chat? Great! Our team is here and ready to help you achieve financial independence.

Happy investing!

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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.

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

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?”

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 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!

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 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 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.

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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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.

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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