Tag Archive for: Colorado hard money
Cash Flow vs Profits
The Difference Between Cash Flow and Profits
Did you know there’s a difference between cash flow and profits? Actually, there’s a significant difference.
Cash flow is the money flowing in and out of your bank account every month to fuel a project from start to finish. The trick is to match incoming money to outgoing money. If cash flow is negative, you’ll spend more time juggling who gets paid and how instead of focusing on finishing and selling the project.
Profits are what you make after everything is paid. Basically, they’re the BIG payday at the end of a project. Profits replenish the pool of money you get to play with, apply toward your next project, and use to lower costs on your next deal. They can also help your cash flow by showing lenders you’re worthy of better products and rates. In their eyes, you’re successful and able to repay them.
Ready to boost your cash flow AND profits? Then contact us!
Take Advantage of the Fix and Flip Escalator
Now that you’ve seen the benefits of the Fix and Flip Escalator, let’s talk about what you can do to take advantage of it!
- Start with what you have and see how you can enhance it. For example, what are your assets and experience level, and how can you use them to accelerate yourself up the escalator?
- Show off your work! Create a portfolio. The more you analyze your project history the more likely bankers and lenders will fight for your business.
- Fix your credit. Your credit should range between 670-800+. If it’s below that, you should focus on fixing it.
- Keep up to speed on the finance world. Be aware of what products are available to support your current and future plans.
- Find people who can help you with the finance stuff. Because, again, math. Ugh!
- Create a roadmap to financial success!
By moving away from an expensive partner and heading toward profit boosting cash, you’re sure to make A LOT more money A LOT faster.
Which means you can start fulfilling all of your lifelong dreams sooner.
Product Intro: Quick Deal Analyzer
Introducing the new Quick Deal Analyzer from Hard Money Mike!
With the Quick Deal Analyzer, you’ll be able to find out:
- If the estimated profits are in line with your goals.
- If the ARV will work for you and your lender.
- If the project is worth the effort at the end of the day.
If you’re interested in making more money on your next deal, download the Quick Deal Analyzer here.
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!
