Tag Archive for: value add property

How to Put Less Money Down on Your Real Estate Deals

How to Put Less Money Down on Your Real Estate Deals

When you put less money down on your real estate deals, you keep more money in your pocket.

Now, if you’re a real estate investor, then chances are you put a lot of focus on positive cash flow.

But what does cash flow really mean?

Well, all investors have a different perspective, but most fall into 3 popular categories:
  1. Putting less money down.
  2. Making monthly income.
  3. Gaining leverage with cash-out refinancing.
All of these cash flow strategies share 2 common similarities:

Today, let’s dig deeper into the first cash flow strategy: putting less money down.

Put Less Money Down on Real Estate Investments

Investors who take this approach like to focus on leverage. Limiting the amount of money in each real estate deal leads to higher leverage. Higher leverage means you keep more money in your bank account. But it also means you lower your MONTHLY cash flow.

But that’s okay. It’s not always about monthly income.

It’s also about equity.

Investors who use this strategy aim to limit their initial outflow so they can keep more money in their pocket, and possibly buy more value-add properties with the same money.

What do we mean by that? Well, let’s take a look at a sample:

Let’s say Jane and John each have $50,000 to invest.

Jane decides to buy her property at the full retail value of $250,000 with a 20% down payment.

20% / $250,000 = $50,000

That’s Jane’s entire savings. So, she can only afford to buy the one property and must save up to buy another.

John, on the other hand, decides to use the BRRRR strategy to invest his $50,0000. Because he wants to limit the amount of money he puts down at closing.

So, John finds a wholesale property (aka, a discounted property) for $225,000 that has an ARV of $300,000. He puts $25,000 in for renovations, which leaves him with $25,000 in his bank account. Plus $50,000 of equity. He can use that money to do, well, whatever. That includes buying more value-add properties. We’re talking 2-4 additional houses.

So, while Jane used all of her $50,000 to buy ONE property, John used his $50,000 to buy multiple properties. Or simply live more comfortably.

Does this sound like your kind of cash flow strategy?

If not, no worries. There are still plenty of strategies to take, and our team is here to help you discover which one works best for you. 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!

by
How To Buy 3 New Rental Properties This Year

How To Buy 3 New Rental Properties This Year

How does buying 3 new rental properties in 2021 sound? Whether you’re just starting out in real estate investing, or you’ve been around the block a few times, this is an achievable goal.

Really!

It all starts with 3 key steps.

This is How to Buy 3 Rental Properties in 1 Year

Step 1: Buy discounted properties.

Sure, you can try and find properties on the MLS, but you’ll have way more luck finding discounted properties through wholesalers.

Step 2: Buy FAST with a hard money loan.

Hard money is great because it doesn’t have the same timeline as conventional and other traditional loans. With hard money, you can close within days, not weeks or months.

And if you’re buying discounted properties from wholesalers, closing fast is essential. Because wholesalers have strict deadlines. Very strict. So, if you can’t close within a couple of weeks, then you might as well say bye-bye to those cash-flowing, value-add properties.

But we get it. Hard money is expensive. That’s why step 3 is so important.

Step 3: Refinance FAST out of a hard money loan into a long-term loan.

Like we said before, staying in a hard money loan too long can be pricey. So, the sooner you can refinance out of it, the better for you and your bank account.

Now, some of you might be thinking, “I can’t refinance into a long-term loan. The banks don’t like me.”

Well, here’s the truth: You have HUNDREDS of options when it comes to refinancing. Forget squeezing yourself inside a bank’s itty-bitty box of requirements. You can explore all sorts of options to ensure you’re able to buy a property fast with hard money, and then refinance fast with a long-term loan.

The key to all of this is working with the right lenders. Ones who know how to handle both hard money AND long-term loans.

Like us!

We’re able to help you buy fast through our company Hard Money Mike. Then we’re able to help you refinance into a long-term loan with our new sister company, The Cash Flow Mortgage Company.

Our unique, efficient, two-step approach to lending is critical to tripling your properties…and tripling your cash flow.

Remember, it’s all about:

  • Buying discounted properties.
  • Buying fast with a hard money loan.
  • Refinancing fast into a long-term loan.

Ready to buy 3 new rental properties this year? Let’s talk!

Happy investing.

by

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!

by
How to Buy a Property with ZERO Money Down

How to Buy a Property with ZERO Money Down

Did you know you can buy a real estate property with zero money down?

It’s true! Just check out these 4 key steps:

4 Crucial Steps to Buying Real Estate with ZERO Down
If you want to buy a property and put less money (or no money) down, then check out these 4 steps.

Buy discounted properties.

You might be able to find discounted properties on the MLS. Maybe. But you’ll probably have more luck finding them via a wholesaler. Especially when it comes to value-add properties (i.e. fix and flips and rentals).

Set up your loan properly.

This is an important 2-Step Process. The trick is to purchase with a hard money loan, and then quickly refinance with a long-term loan. That way you can get the highest loan amount possible. It all starts with discovering what you qualify for on the long-term side. Once you know what that loan looks like, you can match that number to your hard money loan.

Use rate and term, NOT cash out.

Okay, deep breath.

We’re not going to get into the nitty gritty of these mortgage terms, but we are going to highlight the significant differences.

Setting your loan up as a cash out can be very tempting. You get money at closing. What’s better than that, right?

Well, did you know when you set up your loan as a cash out, you:

  • Pay higher costs
  • Take a lot longer to refinance out of your expensive hard money loan
  • Qualify for lower loan amounts

With a rate and term, all of that changes. You:

  • Spend far less cash up front
  • Refinance out of pricey hard money loans a lot faster (like, we’re talking months faster than a cash out)
  • Enjoy lower rates

Better yet, your cash flow will multiply because you get to do more with your money when you pay less for your loans. This is actually a simple process to set up if you work with someone who can help you with both your hard money and long-term loans.

Put zero money down by finding the right lender

To seal the deal, find a lender who can handle these kinds of loans.

Unlike most other lenders, our team has the expertise, knowledge, and ability to handle everything from hard money to conventional loans. Plus, we treat you like a teammate, not a number.

With our help, you can start buying your properties with no money down today. Let’s chat!

Happy investing.

by

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!

by
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!

by