Motivational Monday: Invest Today

/in ,

Motivational Monday: Invest Today

Yes, another Monday is upon us, and you know what that means, right? Yep, time for a dose of motivation.

We think Mondays are the best days to kickstart goals. That includes all goals related to real estate investing. Because if you don’t start investing today, then you’ll wake up tomorrow and think, “Why didn’t I take the plunge yesterday?”

Motivation Monday: Invest Today

Look, we know how difficult it can be to begin something new…or something you haven’t done in a while.

Whether it’s quitting a bad habit, shedding a few pounds, or tackling new responsibilities, we completely understand how much effort it takes to make a change. We know how tough it is to get up on Monday morning and say, “I’m going to do THIS today.” Especially if “this” is telling yourself you’re going to invest today.

But we know you can do it.

Because we have to do it, too. We’re human just like you and everyone else. Therefore, we must challenge ourselves to find ways to improve and reach for the stars (yes, that sounds cheesy, but it’s the truth).

If we don’t look Monday (and every day) in the face and choose to better our lives, then our lives won’t change. And that’s never good, because when we remain stagnant too long we miss out on countless opportunities. The amazing, life-changing kind of opportunities that–although scary upfront–turn out to be the best thing that ever happened to us.

So, if you’re reading this and you’re debating taking the leap into real estate investing, then GO FOR IT! Truly. It might seem daunting and overwhelming right now, but if you don’t let yourself take risks, then you’ll never get a chance to reap the rewards.

And, remember, you can always start small. In fact, we’ve just started a new Money Chat where you can join like-minded investors to learn more about investing in fix and flips, rentals, and other value-add properties.

Our entire team believes in you. And we would love to show you how you can start investing today so you won’t regret it tomorrow.

Happy Monday and happy investing!

Money Chat Reminder: How to Fund a Flip

/in ,

Money Chat Reminder: How to Fund a Flip from a Lending Expert

Attention real estate investors, both new and seasoned! Don’t forget our next Money Chat is tomorrow with lending expert, Mike Bonn.

During Tuesday’s chat, Mike will answer all of your questions on How to Fund a Flip.

If you’ve always wanted to get into the fix and flip 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 and the rest of the Hard Money Mike/Cash Flow Mortgage Company 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!

Next Money Chat: How to Fund a Flip

Next Money Chat: How to Fund a Flip

/in ,

Next Money Chat: How to Fund a Flip

During our next Money Chat, lending expert Mike Bonn will discuss “How to Fund a Flip.”

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

You can join other like-minded real estate investors and ask all of your questions to a lending expert.

How to Fund a Flip

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

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.

Can’t make it? No problem. We’re running the Money Chat twice next week to make sure 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 chat, no sweat. We’ll 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/Cash Flow Mortgage Company 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!

What is the Difference Between Wholesale and Wholetail?

What is the Difference Between Wholesale and Wholetail?

/in

What is the Difference Between Wholesale and Wholetail?

The difference between wholesale and wholetail is actually pretty easy to understand. It all comes down to your buyer, and what needs to be done to sell the property to that buyer.

What is Wholesaling?

With wholesaling, you need to find a heavily discounted property and sell it to someone who is also looking for a discounted property. So, usually a fix and flipper.

Unlike wholetailing, you don’t need to do ANYTHING with a wholesale property. Because you won’t own it for more than a couple of days or weeks. All you need to do is assign the contract to your buyer; or complete a double closing (buy the property, turn around, and sell it the same day).

You’re in and out FAST.

But you might not make as much as you’d make with a wholetail deal. Why? Well, let’s take a closer look at wholetailing.

What is Wholetailing?

Unlike wholesaling, you have more types of buyers with wholetailing.

  1. Fix and flipper. Just like with wholesaling, fix and flippers aren’t going to pay very much because they have to go in and completely renovate the property. They’re looking to make money, so they’re not going to pay more than what you would’ve paid, minus the assignment fee.
  2. Landlord. This buyer will pay a little more than a fix and flipper because they still have to go in and fix the property up so it’s rent-ready. But their renovations won’t be as extreme as a fix and flippers, so the purchase price can be higher.
  3. Retail consumer. These buyers are on the MLS, and they’re looking for a good deal. But they’re not looking to make a profit like a fix and flipper or landlord, so you can charge a higher purchase price. Therefore, they’re the most profitable.

Now, with retail consumers, the purchase price probably won’t be as high as comparable homes in the same neighborhood because the property will still need work. But it’s in lendable condition, so you can still make a good profit. For example, if the going rate in the neighborhood is $300,000, then you can probably charge between $250,000 to $260,000.

Other Differences

Wholetailing also differs from wholesaling because you might own the property for 3 months or longer. Why? Because if you sell to a retail buyer, that buyer might need to get an FHA loan, and FHA loans (aka, bank loans) require certain “seasoning” (meaning you have to own the property for a certain length of time before you sell it). And when you own a property for more than a few days, you’ll need to think about taking good care of it.

No, that doesn’t mean you have to fix it, but you will need to keep it in good, livable, lendable condition. So getting a vacant home insurance policy to protect it against things like fires would be a good idea. Another good idea is putting the utilities in your name to keep the heat and plumbing on, especially during the winter months when pipes freeze and burst.

Yikes!

So, there you have it. Like we said, the difference between wholesale and wholetail is pretty easy. Just think about the type of buyer and what that buyer is planning to do with the property.

Ready to talk about your cash flow options? Great, our team is here to help.

Happy investing!

Florida VRBO: Rental Property Spotlight

Florida VRBO: Rental Property Spotlight

/in

Florida VRBO: Rental Property Spotlight

Why rent a Florida VRBO when you can reap the benefits of renting out your very own vacation home?

 

 

 

 

 

 

 

 

 

 

 

 

One of our clients just purchased this value-add property in the tropical vacation hot-spot of Florida. They took advantage of our quick and easy financing to purchase this home. They plan to fix it up and start renting it to generate positive cash flow.

We always love helping clients across the country fund their real estate investments. Whether it’s fixing and flipping, wholetailing, or closing a financial gap (bridge loan), our team can help. We even assist with long-term/traditional loans.

Ready to get started? Great! 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.

The Cost of Credit: How Much Is Your Score Costing You?

The Cost of Credit: How Much Is Your Score Costing You?

/in ,

The Cost of Credit: How Much Is Your Score Costing You?

Do you know the cost of credit and how much your score is costing you?

Well, it could be adding 10+ years of extra payments to your life.

Yep, you heard that right. Ten or more years worth of payments! That could be as much as $500,000 you don’t need to pay, and all because you don’t have an ideal credit score.

That’s why today we’re going to dive into the impact your credit score has on your real estate deals…and your wallet.

If you don’t fit into a standard loan’s very strict (and small) box, then it can cost you dearly.

So, why does this happen?

Because there are many kinds of loans, but the ones with the best rates and terms are Conventional (aka, “standard”). If you can’t qualify for these affordable loans, then your costs jump considerably when you move to Non-QM (aka, “non-standard) loans.

Right now, in this market, the difference between a standard and a non-standard loan is 2 to 3 points.

That’s thousands of dollars. 

In the video above, we compare two investors who have different loans with different rates. Even though they both paid the same amount for a property, the outcome of what they pay might surprise you…especially when they start buying multiple properties.

Investor 1 pays a lower rate than Investor 2.

So, let’s breakdown their payments based on a loan amount of $200,000…

Every month, Investor 1 pays $954.83 for their property. Meanwhile, Investor 2 pays $1,264.14. That’s about $310 more than Investor 1 per month.

Now, let’s take that another step further:

Both investors eventually purchase 5 properties to add to their real estate portfolio. The difference in their total payments is about $1,500 per month (yikes).

If we take that number and look at what happens every year, Investor 2 will pay about $18,500 more than Investor 1. All because their credit score was too low to get a loan with affordable rates.

And here’s where you can see the biggest impact: Over the life of the loan (about 30 years), Investor 2 will pay over half a million dollars more than Investor 1.

Now you can see why your credit score matters.

How can you make sure you pay cheaper rates and qualify for standard loans? Well, check out some of our helpful tips on Youtube. Plus, our team is always here to help.

Happy investing!

Client Review: Gilberto A.

Client Review Spotlight: Gilberto A.

/in ,

Client Review Spotlight: Gilberto A.

Check out this client review from Gilberto A.

At Hard Money Mike, our number one goal is to make clients happy…and a lot of money!

We understand every real estate investor has different goals, hopes, and dreams. They also have a different story, which means they come into each loan with a different situation.

Because of that, we work hard to adapt, listen, and create a unique plan for each and every client.

In today’s client review spotlight, we take a closer look at what Gilberto A. had to say about his experience working with our team…

If you’re ready to chat about your next real estate deal, then reach out to our team. They’re eager to help you develop a plan that sets on a path to success.

Because Hard Money Mike isn’t just the place to start investing. It’s the place to start living your dreams.

Happy investing!

Low Credit Score: A Quick, Easy Solution

Low Credit Score: A Quick, Easy Solution

/in ,

Low Credit Score: A Quick, Easy Solution

Do you have a low credit score? If you do, then it’s likely making a big dent on your cash flow. Because a low score means paying higher rates. And higher rates mean less money in your pocket.

 

 

 

 

 

 

 

 

 

 

At Hard Money Mike, one of the main questions we hear from real estate investors is, “What credit score do I need to get a loan?” And when they hear the answer, many of those investors are unhappy about it.

Because they have a low score…too low for a traditional loan, at least. And traditional loans have some of the lowest interest rates available.

But, why is your credit score so low?

Well, there’s some common issues you probably already know about (ex: unpaid bills, late payments, etc.). But did you know one of the biggest issues is high credit card balances?

 

Yes, even if you pay some of your credit card off each month, as long as you maintain a high balance, then it’s going to ding your credit score.

For example, if you have a maximum credit line of $8,000, and you maintain a $6,000 balance, then creditors think you’re a high risk. Therefore, they penalize you by taking points off your credit score.

To make matters even more frustrating, many real estate investors have to use their credit cards to pay for renovations on a value-add property. Otherwise, their project might stall.

What can you do?

Well, technically, the best solution is to get a loan to pay off your credit cards.

But, if your score is too low, you won’t be able to get a loan.

AHHH!

Yeah, it can be a real conundrum. And we’ve seen it impact our clients countless times. So, here’s our suggestion:

Take your loan private.

Don’t go to a bank or another traditional lender. They will just reject your application. Instead, find someone (like Hard Money Mike) who can help you repair your credit score by setting up a private loan. That way you can:

  • Pay off your credit cards
  • Raise your score
  • Get an affordable loan AND rate

After you pay off your credit cards with a private loan, you can resume normal business. Just remember to keep your credit card balances as low as possible. In other words, don’t use more than 20-30% of your credit line. If you exceed that threshold, then quickly pay off what you can to drop it back down and protect your credit score.

Because a good credit score will lead to the best loan products. And the best loan products will produce the highest cash flow possible.

Happy investing!

Credit Score Basics: How Lenders Use FICO Scores

How Lenders Use Your FICO Score

/in ,

How Lenders Use Your FICO Score

Do you know how lenders use your FICO score? Because it’s vital to whether or not you get approved for a loan.

If you understand credit score basics, then you’ll have a much better chance of hearing a “yes” rather than a “no” from a lender. You’ll also gain a much deeper understanding of how your score impacts your monthly payments.

You see, when you have a decent credit score (700+), then you can expect to see more loan approvals. Especially from traditional lenders, like banks.

Plus, a good credit score will lead to good rates. And that means cheaper bills.

For real estate investors, a good credit score can make all the difference between positive and negative cash flow. And over time, that kind of business model can run you…well, out of business.

If you’d like a quick overview of how credit scores work and how lenders use them, then check out this explanatory video from FICO.

In this video, you’ll get a simple and fast explanation of how credit scores work. Again, this is vital if you want to succeed with your real estate deals. And your overall financial health. Your wallet will thank you for taking such good care of your credit score.

If you want more credit score tips, check out our Youtube channel! As we’ve stated throughout this article, we highly encourage you to understand the importance of your score so when it’s time to get a loan for your next value-add property (fix and flip or rental), you’ll have lots of options. And access to great rates.

Need some extra input on your credit score and how you can raise it? Our team is always here to offer advice and guidance.

As always, happy investing!

Ohio Fix and Flip: Before and After Spotlight

Ohio Fix and Flip: Before and After Spotlight

/in

Ohio Fix and Flip: Before and After Spotlight

Today’s Before and After Spotlight is a fantastic fix and flip property that one of our repeat clients in Ohio completed.

The whole team at Hard Money Mike thinks he did a wonderful job. He transformed an eyesore into a moneymaker for himself and the rest of the neighborhood.

This property is a shining example of what the real estate investing community is all about.

Check out the fix and flip transformation for yourself!

Before and After Fix and Flip

Before and After Kitchen: Ohio Fix and Flip

Before and After Kitchen 2

Before and After Living Room

Before and After Ohio Fix and Flip: Bathroom

Before and After Bedroom

Ready to chat about your next real estate project? Great, our team is here to help.

We’re a Colorado-based lender who lends money on all types of commercial/value-add properties. So, whether you want to invest in fix and flips, rentals, land, or wholetailing, we can discuss your funding options. We even offer bridge loans for those who need to close a financial gap.

Happy investing!