Tag Archive for: bridge loans
Fix and Flip Escalator – A Closer Look
Let’s continue with the example we used last week and examine the Fix and Flip Escalator a little closer.
As reminder, we used the following scenario to evaluate figures:
You need a loan for $250,000. That covers purchase price and repairs. After 6 months of hard work, you fix the property and sell it for $335,000 (nice job!). Once you take into account all of your holding, closing, and realtor costs, you should walk away with $50,000.
So, now let’s see what happens when you jump from a higher step (i.e. hard money), to a lower step:
When you move from hard money to soft money, you:
- Make $12,000 more in profits.
- Drop your monthly payment by $1,100—that’s more money in your pocket!
When you move from hard money to banking, you:
- Make $17,000 more in profits.
- Drop your monthly payment by $1,500—again, more money in your pocket.
Are you following along? We hope so, because it’s pretty cool to see how much you can make when you consider the actual math.
Yeah, yeah. We know.
Math.
But it’s worth running some small numbers to see BIG results, right? If you’re ready to tackle the numbers for your project, give us a call.
11 Expert Tips for Flipping Success
Whether you’re just starting to flip houses or you’ve become an old pro, it never hurts to read about other people’s experiences and learn about tricks of the trade.
We’ve all seen those “reality” shows on TV, where they showcase a house flipper who makes a ton of mistakes, yet somehow still manages to turn a profit. It makes for nice TV, but it certainly isn’t part of any reality I’ve ever experienced.
Check out this post from Mindy Jensen on Bigger Pockets. She offers 11 expert tips on flipping homes, from beginning to end.
What’s Your 2-Year Plan?
Close your eyes. Clear your mind. Take a deep breath.
Now, let’s pretend we’re talking to each other two years from now. What happened during that time period that made you proud and put a smile on your face? How does your cash flow look? What kind of work schedule do you have? How does life look for you and your family?
When it comes to investing, we have discovered that thinking ahead two years leads to the most success. Why two years? Well, it’s short enough to imagine without being overwhelming, and it’s long enough to create tangible, positive change in your life.
Coming up with a plan is as easy as one, two, three:
Step 1: Imagine where you want to be in two years.
Step 2: Evaluate where you’re starting at today.
Step 3: Create a plan that connects your current reality to your future dreams.
How do you formulate an actual plan? Well, that’s what our team is here to help you do. It’s just a matter of picking up the phone and giving us a call to chat.
One conversation can change your future…and your life!
