What is your credit score costing you?
How much money might a lackluster credit score be costing you over the life of your investment business?
You probably hear a lot of talk in the mortgage industry about your credit score and the effect it can have on your interest rates, but do you really have an idea of how much it’s affecting your bottom dollar?
Do you know how to determine your Return on Credit (ROC)?
Can you crunch the numbers to figure out how much your score is helping your cash-flow? How about how much money it’s sucking out every month?)
These calculations can get complicated, but the takeaway here is that a less-than-stellar score can really be costing your tens of thousands of dollars over the lifetime of your loan. And when your loan is on investment property, (or several,) you may as well be lighting your profits on fire.
We want to help! Contact our team so we can help you see where you’re currently at, and where you could be going instead.
Let’s get you to your goals faster by trimming some of the fat from your financing!
Hard Money Mike is a lender based in Colorado offering services in several states. We lend money for all varieties of commercial-based properties. So whether you’re trying to finance a fix-and-flip, vacant land, whole-tailing, or looking for a builder bridge loan, we’ve got you covered.
Call Mike Bonn at: 303-539-3000 or email Mike@HardMoneyMike.com
Investors and S Corp Info.
https://www.biggerpockets.com/blog/s-corp-election-active-income
Investing Rules You Must Know
Every investor should know 3 rules of thumb:
The 2%, 50%, and 70% Rules.
If you don’t know what these are, check out this video from Bigger Pockets.
Ready to talk about your deals and how you can fund them with our 2-Step Loan Process? Then contact us today!
Buying a Duplex – What NOT To Do
Whether you’re getting ready to invest in your first rental units, or you’ve been renting for years, it’s always a good idea to learn from other people’s mistakes. In this video, Chandler David Smith tells us about the lessons he’s learned and what NOT to do as an investor. Check it out!
Ready to start investing? Need some guidance? Then contact our team. We’re ready to show you how to invest and invest right!
Real estate investors may need to test every property for meth.
Real estate investors may need to test every property for meth.
There may be a need now to test every home before you purchase it for meth…or end up with a huge bill or lawsuit. Most self tests cost around $30 to check if meth was used in a home, a lot cheaper than remediation or a lawyer.
We will see where this flipper (the seller) ends up and what it will cost them.
Here is the story from CBS Denver:
Littleton Family Unknowingly Buys House Contaminated With Meth, Home Is Condemned 3 Weeks After Closing
Investor Mortgage Report 6.16.2020
What We Know:
Rates on the conventional side have maintained strong with rates in the low 3’s. If you’re still wondering whether or not you should refinance, we’re going to dive into what we call ‘The Tipping Point Rate.’
This week, we’re seeing more larger non-conventional companies dipping their toes back into the investor loan water. This gentle ease back in helps increase liquidity, but it still comes at a price: Lower LTVs and higher costs.
What This Means for You:
There is an exact rate where it’s wise to refinance. We call this ‘The Tipping Point Rate.’ This specific rate is the point where you won’t pay a penny more in principal and interest over the life of the loan.
Going above this point might increase your cash flow, but it will end up costing you more in the long run. Sometimes this means it’s better to stick with what you have now. We’re focused on putting more money in your pocket and less in the bank’s pocket.
This is for investors looking to increase monthly cash flow without adding lifetime cost of debt. So, if you’re solely concerned about your monthly cash flow, this probably isn’t the program for you.
So how does this work? Let’s take a look at an example.
Joe is an investor who is looking at refinancing to increase his cash flow every month. But not if it means paying tens of thousands of dollars extra to the bank in principal and interest.
Joe has been paying his current mortgage for 5 years. If he keeps the loan until it’s paid in full, he’ll end up paying $360k in payments over the next 25 years.
Joe wants to know the exact rate that he can refinance to a new 30-year fixed without increasing his amount owed. If it exceeds $360k, then he won’t refinance.
By knowing this exact rate, he can stretch his payments out and lower his interest rate without paying a penny more over the life of the loan.
How do we find Joe’s Tipping Point Rate?
Luckily, we have a handy program that can calculate just that. If you would like to know your own Tipping Point Rate, send us an email! We’ll run the report specifically for you and your property!
Note: Investor Real Estate Loans doesn’t currently lend in all states, but we are always happy to help and make sure you understand your numbers!
*All non-commercial and construction loans offered by TNS Loans NMLS #1719349