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My Credit Score...What's That About?

Money Chat: My Credit Score…What’s That About?

When you need a loan, do you ever think, “My credit score…What’s that about?”

Well, during our next Money Chat, Mike Bonn is going to answer all of your questions. He’s also going to share insider tips on how to raise your score so you can get the best loan possible.

My Credit Score...What's That About

Want to join Mike’s Money Chat? Then register for FREE here.

Mike will answer common questions like:

  • Is this based on my credit?
  • Will you pull my credit?
  • How can I boost my credit score? 
  • What score do I need to get the best rates?

By the end of the Money Chat, you should have a much better grasp of how your credit score impacts your loan options…and, more importantly, your cash flow and profits.

When: Thursday, September 30th, 11 AM MST

Where: Virtual nationwide.

Register for free at https://my.demio.com/ref/lw8s3Krd8n4vKXqo

Can’t make it? No problem. We run free Money Chats every week to make sure you have an opportunity to listen, learn, and ask all of your questions.

Mike and the rest of the Hard Money Mike/Cash Flow Mortgage Company team looks forward to seeing you on Thursday.

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 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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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.

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 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.”

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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Real Estate Funding Solutions: Welcome to The Cash Flow Mortgage Company

Real Estate Funding Solutions: Welcome to The Cash Flow Mortgage Company

If you’re looking for fast real estate funding from a team that truly cares about your cash flow, then welcome to the Cash Flow Mortgage Company.

Because we believe that cash flow makes life flow!

The Cash Flow Mortgage Company is a rare, one-stop-shop for all your real estate investment deals. Gone are the days of working with multiple lenders for one property. We have everything you need to generate positive cash flow and make life a whole lot easier.

Among our many services, we offer:

Non-traditional and hard money funding

Non-traditional and hard money loans are perfect for fix and flips, rentals, and BRRRRs, and other value-add properties. Furthermore, they’re ideal for real estate investors who need to move FAST or might need to get creative with qualifications. For example, if you don’t have tax returns (or don’t want to use them), then we have a loan for you. Or if you’re real estate portfolio needs some work, we can help you build it so you can eventually apply for a long-term bank loan.

Traditional funding

If you’ve got the qualifications, then we’ve got long-term, low-rate loans for you!

Bridge loans (aka, gap funding)

If you want to ensure your cash flow doesn’t take a major hit when the market is tight, or if you’re stuck in a project and need temporary funding, then a bridge loan is perfect.

Credit score boosting tips

The better your credit score, then the better your interest rates. And the better your interest rates, then better your loan products. Which means you spend way less money every month.

Ready to get going? Great, we’re here to help. Our team is eager to set you on a path the helps you make the kind of money you need to live the life you want!

Happy investing!

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