Tag Archive for: #cash flow

Why Renovation Speed is the Key to Your Success

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Today we are going to discuss why renovation speed is the key to your success. Renovating a property can make or break your success as an investor. The key? Speed. The longer a project takes, the more it costs. However, when you move quickly and efficiently, you keep more money in your pocket and get to the next deal faster. Let’s break down why speed matters and how it can boost your profits.

Time is Money

Every extra day of renovation costs you. Loan interest, utility bills, as well as property taxes keep adding up. The longer your project drags on, the smaller your profits become.

Fast Renovations Mean Faster Profits

Let’s compare two investors:

  • Investor A flips a house in three months and moves on to the next deal.
  • Investor B takes six months, paying twice the holding costs.

Who do you think makes more money? The faster you finish, the faster you profit.

Rentals Need Speed Too

If a rental sits empty, it’s losing money. A one-month delay means missing an entire month of rent. Fast renovations get tenants in sooner, putting cash in your pocket.

Speed Without Sacrificing Quality

Fast doesn’t mean sloppy. It means having a solid plan, hiring the right team, and keeping things on schedule. Delays kill deals, but efficiency builds wealth.

Conclusion

If you want to maximize your real estate success, focus on speed. Whether flipping or renting, a fast, well-planned renovation means lower costs, quicker profits, and more deals in the future. Don’t let delays eat into your success—keep things moving and watch your investments grow!

Contact Us Today! 

Do you have more questions about what makes an investment property a good investment? Contact us today to find out more! 

Free Tools For You! 

We also have free tools available! Download the Quick Deal Analyzer to see if your potential property will be a good investment.

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success! 

What Makes an Investment Property a Good Investment?

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Today we are going to discuss what makes an investment property a good investment. Not all investment properties are good investments. Some make money, and others drain your wallet. The key is knowing what to look for before you buy.

1. Cash Flow

A good investment property pays you every month. If your rental income covers the mortgage, taxes, insurance, and maintenance—with money left over—you have positive cash flow.

Example: Sarah buys a rental for $150,000. Her mortgage, taxes, and insurance total $1,000 per month. Her rent is $1,400. After setting aside $200 for maintenance, she still clears $200 per month in profit. That’s a good deal!

2. Property Value Growth

Over time, a solid investment property increases in value. Buying in a growing area with strong demand means you can sell later for a profit.

Example: Jake buys a duplex in a neighborhood where new businesses are popping up. Five years later, property values have jumped 30%. Now, he has options—sell for a profit or refinance to buy more rentals.

3. The Right Financing

Your loan matters. A high-interest rate or bad terms can turn a great property into a bad investment. The right financing keeps your payments low and cash flow strong.

It isn’t just about location, it’s about numbers. If the deal makes money today and builds wealth for tomorrow, you’re on the right track.

Contact Us Today! 

Do you have more questions about what makes an investment property a good investment? Contact us today to find out more! 

Free Tools For You! 

We also have free tools available! Download the Quick Deal Analyzer to see if your on the right track! 

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success! 

Fix and Flip Investment Properties

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Today we are going to discuss fix and flip investment properties. Are you ready to turn neglected properties into profitable investments? Fix-and-flip projects can be one of the most exciting ways to grow wealth in real estate. The process is simple to understand: find a property with potential, renovate it, and sell it for a profit. But to succeed, you’ll need the right plan and funding to keep everything moving smoothly.

For example, imagine buying a home for $150,000 that just needs some cosmetic updates. After spending $30,000 on repairs like new floors, paint, and landscaping, you sell it for $220,000. That’s a $40,000 profit! However, to make this happen, you’ll need to know how to budget for purchase costs, repairs, and holding expenses.

Timing also matters. The faster you can finish a project, the quicker you can get it sold and move on to the next deal. This means having reliable contractors, staying on top of schedules, and making smart financial decisions—like securing funding upfront to avoid delays.

Fix and flip projects are great for those who enjoy creative problem-solving and hands-on work. If you’re organized and ready to take action, these investments can offer fast returns.

Stay tuned as we dive deeper into what it takes to succeed in fix-and-flip investing, from finding properties to picking the right financing options. With the right strategy, you can turn run-down properties into opportunities.

Contact Us Today! 

Are Fix and Flip investment properties right for you? Contact us today to find out more! 

Free Tools For You! 

We also have free tools available! Download the Quick Deal Analyzer to see if your potential property will be a good investment.

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success! 

Padsplits as Investment Properties

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Today we will be discussing padsplits as investment properties. Padsplits are a unique way to invest in real estate while helping people find affordable housing. Unlike traditional rentals, a Padsplit turns a single-family home into a shared living space. Each tenant rents a private bedroom, and everyone shares common areas like the kitchen and living room.

For investors, this model often means higher income compared to renting the home as one unit. For instance, a three-bedroom house that rents for $1,500 a month could generate $600 per room instead. That’s $1,800 total, more cash flow from the same property.

But it’s not just about income. Padsplits help fill a need for affordable housing in many areas. When cities grow fast, rents can push lower-income workers out. Padsplits offer these workers a chance to live close to jobs while saving money.

Of course, you’ll need to consider the costs. Extra tenants mean more wear and tear, higher utility bills, and stricter property management. Yet, with the right systems in place, many investors find Padsplits worth it.

In the end, Padsplits are a win-win. Tenants get affordable, flexible housing. Investors get a property that cash flows well. Plus, this model works in places where traditional rentals might struggle to make money. If you want to boost cash flow and help your community, Padsplits could be the perfect option.

Contact Us Today! 

Are padsplits the best investment property for you? Contact us today to find out more about investment properties!

Free Tools For You! 

We also have free tools available! Download the Quick Deal Analyzer to see if your potential property will be a good investment.

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success! 

Not All Debt Is Bad!

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When you hear the word “debt,” do you feel a little nervous? You’re not alone. Many people think of it as something to avoid at all costs. But here’s the truth: not all debt is bad!

Good debt can be a powerful tool. It helps you build wealth, create opportunities, and achieve goals. For example, imagine buying a rental property with a loan. That loan works for you by creating cash flow each month. Another example? Taking out a loan to fix up a property and sell it for a profit.

Bad debt, on the other hand, drains your wallet. High-interest credit cards or loans for things that lose value over time can weigh you down.

The key is knowing the difference. When debt helps you grow or make money, it’s a stepping stone. When it holds you back, it’s a hurdle.

It isn’t one-size-fits-all. It’s about using it wisely and keeping your long-term goals in mind. Stay tuned, and we’ll dive into how to make debt work for you—so you can reach your dreams without being weighed down!

How to Spot Good Debt

Good debt helps you earn more or grow your wealth. Think of it as an investment in your future. Here are some examples:

  • Student loans: They can lead to higher-paying careers if used wisely.
  • Real estate loans: Buying a rental property can create income every month, covering the loan and then some.
  • Business loans: Starting or expanding a business could boost your income over time.

The key is to look at the big picture. Will this debt pay off in the future? If yes, it might be worth it!

How to Avoid Bad Debt

Bad debt usually comes with high interest rates and no lasting benefit. It’s like throwing money into a bottomless pit. Here’s what to avoid:

  • Credit card balances: Using credit for everyday expenses you can’t afford builds up quickly.
  • Car loans for luxury vehicles: Cars lose value over time, making the debt a long-term burden.
  • Personal loans for wants, not needs: Borrowing for things that don’t build wealth can leave you stuck.

The trick? Only borrow when it helps you move forward, not backward.

Debt doesn’t have to be scary. With the right mindset and tools, it can open doors you never imagined. 

Contact Us Today! 

What type of financing is right for you? Contact us today to find out more about real estate investment loans!

Free Tools For You! 

We also have free tools available! Download the Loan Optimizer to compare financing options side by side!  

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success! 

The Importance of Comping Investment Properties

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Comping investment properties is one of the most important steps in real estate investing. It helps you avoid overpaying and ensures your deal has the potential for profit. Think of it as getting the right blueprint before you build. Without it, you could end up with a bad deal that drains your budget.

For example, let’s say a property in your target neighborhood is listed for $200,000. You might think it’s a great deal—until you look at comparable properties, or “comps.” If similar homes recently sold for $180,000, that listing is overpriced. On the flip side, if the comps show properties selling for $250,000, it might be a hidden gem!

Comping also gives you a reality check on rental income. If nearby properties rent for $1,500 a month, it’s unrealistic to expect $2,000 for yours. Without this info, you might miscalculate your cash flow.

In short, comping tells you whether you’re looking at a goldmine or a money pit. It’s your way to stay informed and confident about your investments.

Contact Us Today! 

Is the potential property right for you? Contact us today to find out more about comping investment properties.

Free Tools For You! 

We also have free tools available! Download the Quick Deal Analyzer to see if your potential property will be a good investment.

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success! 

Short-Term Rentals as Investment Properties

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Short-term rentals are becoming a hot topic in real estate investing. Platforms like Airbnb and Vrbo make it easy for property owners to earn income by renting their homes or apartments to travelers. But is this the right path for you?

How it works:

The idea is simple: buy a property, furnish it, and rent it out for short stays. For example, imagine a cozy cabin in a tourist-heavy mountain town. Guests might pay $200 per night during ski season. If you rent it out for just 15 nights a month, that’s $3,000 in income. Sounds great, right?

Things to keep in mind:

But there’s more to it than just the numbers. Short-term rentals often mean higher costs. You’ll need to keep the property clean, pay for utilities, and handle repairs quickly. Plus, local regulations can sometimes limit how or where you can run a short-term rental.

Create cash flow:

Still, many investors see this as a rewarding way to generate cash flow and build wealth. The key is finding the right property in the right location. A beach condo or a downtown loft near popular attractions might bring in steady guests all year long.

Is it right for you?

Done well, short-term rentals can be a great addition to your portfolio. But it takes research, planning, and a bit of effort to make it work.

Ready to learn how to get started? Contact us today to find out more! We can walk you through the process from choosing the right property, to financing options, and even tips to maximize your profits. 

Contact Us Today! 

Is a short-term rental right for you? Contact us today to find out more about investment properties!

Free Tools For You! 

We also have free tools available! Download the Quick Deal Analyzer to see if your potential property will be a good investment.

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success! 

Financing is Key

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When it comes to real estate, finding the right financing is key. Most investors don’t just buy properties with cash. Instead, they use loans to maximize their money. Why? Because leveraging a loan allows them to buy properties they couldn’t afford outright, while still keeping cash on hand for other projects or emergencies. 

Let’s say you want to buy a small rental property. Instead of paying the full price, you use a loan to cover a big chunk of it. This means you can save your cash for things like repairs, upgrades, or even a future investment. The right loan gives you flexibility and a stronger foundation to grow your investments.

Different types of loans work best for different types of deals. Some loans are ideal for buying rental-ready properties, while others help fund fix-and-flip projects. That is why finding the right financing is the key to your success! By understanding which loan to use, and how to use it, you can set yourself up for better cash flow and bigger opportunities.

Contact Us Today! 

What type of financing is right for you? Contact us today to find out more about real estate investment loans!

Free Tools For You! 

We also have free tools available! Download the Loan Optimizer to compare financing options side by side!  

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success! 

I’m Stuck in a Hard Money Loan: How to Get Out

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I’m Stuck in a Hard Money Loan: How to Get Out

Today we will discuss the common reasons why investors get stuck in a hard money loan and provide practical strategies to break free. From exploring refinancing options to making timely decisions, we’ll guide you toward regaining control of your investment journey. 

Two main reasons:

  1. Project Delays:

    Construction or permit delays extend project timelines far beyond what was initially planned. Since most hard money loans have fixed terms, borrowers are faced with the option to either secure additional funding to complete the project or sell the property.

  2. Property Not Selling:

    This is due to either overpricing or market conditions. By continuing to hold onto the property without adjusting the price, it results in significant financial losses.

How to Get Out:

  1. Refinance with Another Hard Money or Bridge Loan:

    Secure a new loan in order to provide the necessary funds to either complete the project or aid in  the sale of the property. This option allows investors to regain control and momentum in their projects.

  2. Sell the Property As-Is:

    Sometimes, the best course of action is to sell the property in its current condition to another investor. While this may result in a loss, it also prevents further financial bleeding caused by holding onto the property.

  3. Refinance into a Long-Term Loan:

    Investors can refinance into a long-term loan, such as a permanent loan or a traditional bank loan. This option also allows investors to transition the property into a rental, which can decrease monthly losses or potentially create a profit.

Save Your Deal:

  • Don’t Get Stuck:

    Don’t fall into the trap of continuing to invest in a project solely because you’ve already sunk money into it. Assess the current market conditions and make decisions based on realistic projections rather than past investments.

  • Quick Decision Making:

    When faced with a stagnant property, make timely decisions to either adjust the price for a quick sale or pursue refinancing options. Don’t risk losing time and money because of indecision.

  • Seek Professional Guidance:

    Reach out for expert advice and assistance today. Consulting with experienced lenders or real estate professionals can provide valuable insights and help navigate challenging situations.

Get Help Today!

Contact us today! There are solutions available to help you regain control of your investment. Reach out to HardMoneyMike.com for expert guidance and support. Whether you need refinancing options, project advice, or assistance with navigating your loan terms, we’re here to help.

Watch our most recent video to find out more.

 

Can I Get 100% Financing with Hard Money?

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Can I Get 100% Financing with Hard Money?

While hard money is flexible, can you really achieve 100% financing with hard money? The answer is yes! The beauty of true hard money is that you can achieve 100% financing for flips. While there are some situations where we can’t do 100% financing, it is possible in most cases. For investors who are doing flips or even BRRRR rentals, they are getting the properties at a discount. This is what makes it possible to cover all of the financing for the property. How can you get a hard money loan to cover the purchase, rehab, and closing costs? Let’s take a closer look!

Who can we help?

Here at Hard Money Mike we can help those who do 20 to 30 properties a month, as well as those who are just starting out in real estate investing! Unlike most large lenders that don’t do 100% financing, we are able to as long as it’s a really good deal. A good deal is one that is all in at 70% to 75% ARV, as well as where the property is at. Just to clarify, ARV stands for after repair value or what you can sell the property for after all of the repairs have been done. 

For example:

If you are going to sell something for $400K, we can lend up to 75% of that ARV. You will need to put the purchase price, rehab, and some of the closing costs in there in order to make it work. In situations like these, we would be able to finance at 100%. For investors who have multiple projects going at once, 100% financing can make a huge difference in their success.

What is a good deal?

A good deal is one that you are going to make money on. All lenders want is to have investors make money, pay them back, and do it again. Another important factor that we look at as a hard money lender is where the property is located.  While some properties might be easy to find comps, there are some rural properties that are harder to find comps on. In order to be successful in real estate investing, it is important that you not only make sure the location is good, but that you also create a property that is sellable. A hard money loan can help you achieve your success without requiring money out of your pocket or the need for a partner.

For example:

We had someone call us who had decided to use his dads money to buy and sell a property. When they got to closing, the dad said that he wanted not only his interest rate but 50% as well. While it seemed to be an easy way to get the money he needed for the investment, it ended up costing him more. A hard money lender might have a higher interest rate compared to traditional lenders, however, it is still a lot cheaper than having a partner.

Leveraging hard money at 100% just makes sense!

Keep in mind that these deals are for a shorter period of time for 6 months or less. This is because you are financing the whole amount. We just funded a deal for $120K. After all is said and done, they are going to make between $30K and $40K. Just by paying a hard money lender $6K to $8K for interest and expenses, they can make a really good profit on the property. That’s where leveraging hard money at 100% just makes sense! 

No hard pulls on your credit!

Another benefit to using hard money is that it doesn’t show up on your credit. This is because we don’t do hard pulls. While you don’t need a good credit score in order to be approved, it is important that you have a decent score. We understand that a lot of investors use their personal credit cards to cover their business expenses. As a result, it can quickly drive down their credit score. Unlike traditional lenders, we have the flexibility you need. Our main goal at Hard Money Mike is to help you succeed in real estate investing! 

We are here to help!

If you have a deal that you are interested in, and want to find out more about 100% financing, give us a call. We are happy to run through the numbers with you to determine if the property will be a good investment. There is a quick form on our website that you can fill out to give a little more information on the property that you are looking at. This form would include information about the property, some details about you, what you are trying to do, exit strategy, credit score, and your reserve. In the end, our goal is to determine if the deal is going to make you money. 

Here at Hard Money Mike we work with “value at” properties and can offer 100% financing today! Contact us to find out more! 

Watch our most recent video Can I Get 100% Financing with Hard Money to find out more!