Tag Archive for: what is a value add property

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.

5 Ways To Buy a Rental Property - Explainer Video

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 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!

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!