Tag Archive for: # fix and flip loan

How Good Debt Can Make Real Estate Investors Rich

How Good Debt Can Make Real Estate Investors Rich

How can good debt make investors rich? As real estate investors, it is important to differentiate between good debt and bad debt. You do need debt to create income, which in turn creates wealth. That is what real estate investing is all about! Learning how you can create wealth using other people’s money, also referred to as OPM.  You don’t have to be rich, have a college degree, or a PHD to succeed in this business. All you need to understand is how using other people’s money can create wealth and income. Today we will run through the numbers to give a clear picture of what to expect when purchasing a property and how you can get rich off your investment. 

Investors who Fix and Flip

If you’re a flipper and making $50K to $200K a year or more, then it’s very likely and very doable that you will create wealth. All you have to understand is what is good debt and what is bad debt. Good debt is debt that is going to create income and wealth. Real estate investing is all about using leverage, or other people’s money. It may take a little bit of your money, if any, to get started on this venture. In the end it’s all about finding really good properties, undervalued properties, and properties that people no longer want. By purchasing them correctly and using the right debt, you will in turn create income and wealth very quickly. 

Wealth and Income Example for Fix and Flip Investors

Let’s take a look at a normal purchasing situation for a fix and flip investor. This is someone who is doing 4 to 5 properties a year. Yes, you can get into 4 to 5 properties very easily if you are focused and understand your cash flow. In order to accomplish this, you need to use other people’s money for the majority of the expenses, if not all of them, depending on the deal. Keep in mind that a good deal is something that is under 70% all in.

ARV: Is the estimated value of the property after repairs have been completed.

Profit: An average of what you want to make of the sales price. Normally a range between 10% and 15%

ARV = $300,000

Profit at 12% = $36,000  

4 flips a year = $144,000

5 flips a year = $180,000

Numbers break down:

ARV = $300,000 at 75% means that you are all in at $225,000

All in total $225,000 broken down:

Purchase price = $175,000

Rehab budget = $50,000

National lenders: 

10% of purchase price = $17,500

They cover 100% of rehab = ($50,000)

After closing costs and interest you are into this for roughly $25,000 to $30,000 for each property

Now where else can you put in $20,000 to $30,000 and come up with $36,000 in a matter of months? That is money that you are bringing into your life just by using other people’s money, using debt, and doing it correctly. 

How do these numbers compare to other types of investments? 

The majority of investors are only investing in stocks and bonds. If they get 8% then they are happy with their investment. However, if they put in $30,000, then they may only get a $2,400 profit for the year. Compared to the $36,000 that you created in a matter of 4 to 5 months, their profit is just a drop in the bucket.

Wealth and Income Example for Rental Properties

Maybe you want to invest in rental properties also. There is a process out there called BRRRR, which stands for Buy, Rehab, Rent, Refinance, Repeat. These rentals are properties that you intend on keeping in your rental portfolio long term. They can not only create wealth, but will build equity and acquire a monthly income. You can get started by finding a property from a wholesaler or real estate agent that is a good deal. It may need some work, but real estate investing is all about finding undervalued properties and turning them into profitable investments.

Numbers break down:

ARV = $200,000 at 70% means that you are all in at $140,000

All in total $140,000 Purchase price and Rehab budget (normally less for rentals)

Refinance break down:

Refinance at 75% of $200,000 ARV  = $150,000 (what you owe)

Equity created = $50,000 net worth

There are some closing costs for both loans 

It’s all about getting into the right debt on the right properties. From purchasing the property to fixing it up, all of these expenses can be paid using other people’s money, a hard money lender, or even a private lender. Now it is time to use another form of debt. This is long term debt, such as a traditional loan, DSCR, or whatever loan is going to work best for your needs. If this is done correctly, you can then refinance everything including closing costs and payments, up to 75% or even 80% depending on the products that you use. 

In conclusion

All you need to get rich is a clear understanding of how using other people’s money can create wealth and income. Nowadays, we see more credit card debt and bad debt that is greatly impacting people’s ability to get rich. As real estate investors, we need to turn to more asset based debt, in order to create the lifestyle, income, and wealth that we want.

Watch our most recent video to find out more about how good debt can make real estate investors rich.

If you have a good deal at 70% or below the ARV, you can reach out to us! We would be happy to talk to you about your investments, provide a fix and flip loan, and help you find OPM.

Hard Money Loan Requirements Explained

Understanding hard money loan requirements is the first step in finding the right lender for you!

Before you get started on your fix and flip, you need to know a few things:

What does your lender look for? 

What do you need to know about each project before applying for a hard money loan? 

The more you know, the better deal you’ll be able to find.

What Do Hard Money Lenders Look For?

Lenders look at a lot of things when determining deals. It’s important to have details for each piece of your project so you can make sure there aren’t any delays in your work.


ARV (After Repair Value) is a critical component when calculating a hard money loan. 

Hard money lenders look at the projected value of your property. By looking at comparable properties (comps), lenders estimate the projected value based on the work you plan to complete. 

Scope of Work and Budget

Similarly, lenders look at the scope of the work you plan to put into your project.

What renovations are you planning? What is your budget? Having clear answers to these questions helps the lender determine what exactly you’re going to need to put into the project in order to have a higher ARV.

Your lender will also look at the purpose of the project. What is your ultimate goal? This lets lenders estimate the profits and the LTVs when you’re figuring out a deal.

Exit Strategy

You need to have an exit strategy. Are you selling, refinancing, something else? 

Having a clear exit strategy demonstrates your ability to manage the project well and follow through with generating returns.

Specific Loan Amounts

How much are you looking to borrow? Do you want the full amount or just partial? 

If you can put some of your own money into the project, you’ll need a clear idea of how much of that goes towards the purchase price vs. renovation costs. 

Since timing is so important in keeping your project moving, you want to know upfront if you’re putting your own money in escrow for repairs or relying on hard money loans for those costs.


How long is your project going to take? The longer the project takes, the more important it is to buy lower to ensure you’re able to have higher profit margins so you can pay back your loan. 

Interest, taxes, insurance, and even HOA fees add up every month you hold your loan and work on your project. 

The faster you can turn your project into something that is making you money, the less risky you are as a borrower.

Hard Money Loans: Profit Expectations

Ultimately, estimating profit revolves around three things:

  • ARV (After Repair Value)
  • Purchase Price
  • Renovation Costs

Lenders typically max out at 70% to 75% of the ARV, but LTVs (Loan to Value) can also affect those numbers.

If you estimate your ARV early on, you can calculate what money you have to put into the project before sending it to lenders. This lets you propose a more detailed plan which can help you find a better deal.

You can use this free tool to help you calculate those amounts quickly and easily. 

Does Your Project Meet the Requirements?

We want to make sure your project is profitable and able to meet hard money loan requirements. 

If you have a deal you want us to look at, we’re more than happy to help! You can always reach out to us at Info@HardMoneyMike.com.

You can also check out our YouTube channel for more information about how to successfully navigate your fix and flips.

Happy Investing.

Hard Money Loans for New Investors

Hard money loans open doors for newer, smaller investors who are looking for a way to enter the real estate game.

Our goal is to make it as easy as possible for new investors to find the right information so they can be successful.

What are hard money loans? 

Hard money loans are short-term asset-based loans secured by real estate. These loans are typically provided by private investors, small companies or individuals in your local area. 

The main advantage of hard money is they provide quick real estate financing based mostly on the asset and not on your credit score. 

Hard money loans can be used for many things:

  • Funding a fix-and-flip
  • Financing the front-end of a BRRRR project
  • Overcoming credit limitations often experienced by new investors
  • Purchasing land for development
  • Funding some construction projects

Pros of Hard Money Loans:

1. Speed

Whereas Wall Street companies or banks may take two to four weeks, getting approved for a hard money loan typically takes five to seven days.

Speed is critical in investing, and quickly getting your money upfront is crucial in the real estate game.

2. Upfront Financing

Hard money loans also give you money upfront. This allows you to get your escrows out to start the project. Most large companies want you to put money in first. This can be a particular problem for new investors, and hard money lets them get their foot in the door. 

3. Flexibility

Large companies often have very strict lending criteria. If your project is unique, if it’s outside of the box, hard money lenders are more likely to consider it.

4. Higher Financed Amounts 

If you find a deal that has a good loan-to-value ratio, hard money lenders may lend up to 100% of the financing. This lets you keep more of your own money in your pocket and use the lender’s funds for your project.

5. Property-Focused Approvals

Finally, approvals for hard money loans are mainly based on the property itself, the exit strategy and the planned renovations or improvements. Hard money is often a good fit if you’re an investor with limited credit history or a unique property or area.

Cons of Hard Money Loans

1. Higher Costs

While interest rates on hard money are typically similar to other lenders, costs can be anywhere from 1% to 1.5% higher. However, faster closing times often offset the higher cost and can get you better deals than Wall Street companies.

2. Shorter Terms

Typically, hard money lenders offer financing ranging from six to twelve months. Therefore, if you’re looking for something longer than twelve months, Wall Street companies or a local bank may be a better fit. 

3. Limited Availability of Hard Money

Additionally, it’s important to remember that most hard money lenders are individuals, small companies, or private institutions. These lenders only have a finite amount of money to lend. It’s often necessary to build good relationships with local hard money lenders to ensure access to funds.

Hard Money Resources for New Investors

It can be tricky to determine what option is best for you. Because of this, we’ve compiled some resources to help you shop around for the right fit for your project.

Sites like Connected Investors help you network with other people in the business. Get plugged in with your local realtors, wholesalers, and lenders. Talk to other people in the industry to make sure you’re getting the best deals. 

To help you shop around, we also have a great tool called the Loan Cost Optimizer that helps you find the good lenders. It’s free to download and to use!

If you’re still not sure if hard money loans are right for you, no problem! Check out the Cash Flow Company website or YouTube channel to learn about other, more Wall Street-style options that have the same personal connections as hard money loans. 

Additional Questions and Research

Hard money is a very important tool, especially for new, small investors. However, you should always shop around, look around and talk to other experts so you know your options. Also, experts can help you better understand the terms and conditions of hard money loans so you know exactly what you’re getting into.

If you have questions about hard money loans, contact us and we’ll be happy to help you out!

Additionally, you can check out this video on our YouTube channel.

How Escrow Funds Can Finance Your Project’s Rehab

What are escrow funds and how can you use them to get ahead of the game?

If you’re looking to finance property fixes, understanding how to leverage escrow funds effectively can make a huge difference in the success of your real estate investment endeavors.

What Are Escrow Funds?

Escrow funds are the funds set aside by lenders specifically for the repair or renovation of a property. 

Lenders can give up to 100% of the total repair cost. This escrow fund slowly repays you as you work on renovations. The only catch is that you need to put down the first 10-20% on the purchase price and begin the project before receiving reimbursement.

Securing and Using Your Funds

The best part about escrow funds is that they can fund up to 100% of the project. But how and when do you access those funds?

Each time you finish a portion of the work, you must submit a draw request. This involves providing documentation (such as photographs or on-site inspections) of the completed work. You’ll also need to submit invoices and proof of payment for the contractors involved. 

Once the lender has evaluated the progress, they release the escrow funds to you.

Potential Challenges with Escrow Funds

One common issue is that many investors lack the necessary upfront funds to kickstart the project and cover initial expenses. 

Starting a project often requires ordering materials, making down payments to suppliers, and coordinating various tasks, all of which can deplete your available funds. However, escrow funds aren’t reimbursed until the work is completed, creating a potential cash flow problem.

To fix this, it’s best if you have at least 20 to 30% of the funds for the repairs in your own pocket or, as we call it, in your own money bucket. 

This buffer allows you to begin the project without only relying on escrow funds. That way, by the time you’ve finished the first project and can do the first draw, you can freely move onto the second draw.

Keeping your project moving forward is critical in a quickly moving market.

How to Put Money in Your Bucket

Escrow funds are great, but they don’t give you the money upfront. In order to begin a project, where can you get the initial finances to fund the initial payments?

  • Credit Cards: Business credit cards are excellent to get projects started. 0% credit cards are even better to buy the materials that you need to pre-order. 
  • Paying Contractors Directly: If you don’t know how to do that, just email us and we’ll let you know how. It’s even better if you can pay vendors with your business credit cards.
  • Get lines of credit and E-locks on properties.
  • Loans from Family and Friends: You can often find family or friends who are willing to invest in your project. They’re going to get a good return on their investment, and your project gets the initial funding it needs.
  • Loans from Private Lenders: Companies like Hard Money Mike are sometimes willing to provide up to 100% in escrow funds. Look for private lenders who provide flexible financing solutions that help keep your projects from stalling.

How We Can Help

By collaborating with lenders like us who understand the unique needs of real estate investors, you can ensure a smoother experience and avoid unnecessary delays that may result in higher costs.

If you have questions about escrow funds, contact us and we’ll be happy to help you out!

You can check out this video on our YouTube channel.

70 Percent ARV: Why Can’t I Get More for My Real Estate Deal?

The real reason your fix and flip lender won’t give you more than 70% ARV…

One thing new investors ask all the time:

Why do lenders only lend 70 or 75%?

Let’s go over the numbers and see how lenders come up with that 70% number.

What Is ARV and the 70% Rule?

The number we’re talking about is what percentage of the after-repair value (ARV) a lender will give you.

The ARV is what you can sell a property for after flipping, or what it can be appraised for on a refinance for a BRRRR rental.

Here’s an example of what a 70% ARV might look like:

You buy a property. The market shows it will sell for $200k after it’s fixed up. If your lender offers 70% of the ARV, that’s the maximum amount your loan could be. In this case, 70% of $200k is $140k. So you can get up to $140,000 as a loan when you buy this property.

So that’s $60k worth of value that’s not being covered. This is where investors ask the question… There’s still a lot of money here. Why can’t I borrow against that extra $60,000?

Let’s dive into why lenders stop at 70%.

Why Do Lenders Stop at 70% ARV?

If lenders stop at 70% of the ARV, what happens to the remaining 30%?


First, is profit for you. Why do you invest in real estate? Because you want to make a profit. And if you don’t factor in profit at the beginning of your deal, there’s not going to be any leftover for you.

So as lenders, we build in a 10-15% profit margin for you. Let’s say on average, it’s 12.5%. That amount comes from the 30% of the ARV not covered by your loan. 

In our example $200k property from earlier, 12.5% is $25,000, which will be profit for you at the end of the project.


There are a few other people involved in this process, especially on the selling side.

When you bring in a realtor, you can expect to say anywhere between 4.8% and 6%. To keep it easy, we usually estimate 5%.

So of your ARV, we’ve already taken up 17.5% between your profit and your realtor.

Closing Costs, Cost of Funds, and More with a 70% ARV

Closing costs vary, but it’s safe to assume they will cost 1.5%.

With all the costs so far, we could be looking at anywhere between 17% and 22%, but an average of 19% total.

After you’ve purchased the property and started fixing it up, there will be more costs. Two major areas that should be factored into your budget are interest on your loan and a general overage budget.

Between these extra costs, we’re sitting at an average of 29%…

Which is exactly why lenders leave 30% of the ARV off of the loan they give you.

Making Sense of a 70% ARV

With real estate investing, the money’s in the money. Understanding and feeling comfortable with the numbers is the fastest way to start getting into great deals.

You don’t want to get into a deal that won’t be profitable for you. If you won’t get at least 10-15% profit, why do it? Your lender should leave space for your profit and other costs that come up.

Have questions or a deal where you need help with the numbers? Contact us at Info@HardMoneyMike.com, and we’d love to see how we can help.

You can also get more resources about real estate investing on our YouTube channel.

Happy Investing.

Home Run

From start to finish, Evan really hit a home run with this one. Evan, one of our most esteemed sluggers when it comes to fixing up homes, saw this house and was immediately determined to get it out of the bush leagues and into the Big Leagues.


The people selling the house had really let it fall to pieces, and the purchase price was set at $169,000, which was below market at the time. There was some interest, but because of how much work needed to be put into the home, Evan came out on top with the bases loaded.

Rounding First

Evan had to start at the bottom with the foundation. There were cracks in the concrete throughout the home, which hadn’t reached the walls yet, but would have if left much longer. He dug tunnels under the home to access the support beams, then placed foundation repair pilings under each major beam. He lifted the home to the correct level, installed support cylinders under the beams, and shimmed them to the proper height.

Rounding Second

Next, he moved on to the floors and walls. The entire house needed new floors, including carpet, hard wood, and laminate. For both the floors and the walls, he kept his color theme neutral and went with grays and browns throughout the home, so as to make the home able to flow with any interior design that the eventual new homeowners would want.

Rounding Third

As he was nearing home base at this point, he had some last-minute touchups that were in desperate need. The kitchen needed new cabinets and countertops, and the bathrooms needed new countertops and sinks. He also spruced up the landscaping around the home to really make the house look sharp from the outside in.

Bring it Home

Evan really was the “cleanup batter” for this house. The bases were loaded – the house needed a lot of work. And with a full count staring him down.. BOOM! A dinger! A bomb! A Moonshot! He slammed it out of the park and brought it home strong. He ended up selling the property for $299,900 to a very eager couple excited to grow their family in that house. Nothing better than a Grand Slam to help bring this house into the Bigs.


Do You Need a Hard Money Loan?

With hard money loans, it’s very important to shop around. Every hard money lender will offer a slightly different type of loan, with slightly different requirements.

There is a loan that is perfect for your credit, your plan, and your property. You just have to find it.

Contact us for a Hard Money Loan

Check us out on YouTube

Hard Money Mike funds loans in Colorado, Oklahoma, and Texas.

How to Get That Property Done: The “Finish a Project” Loan

4 “finish a project” loan case studies.

One of our most popular loans is what we call a “finish a project” loan.

We call it that because… That’s exactly what it does! We want to help you finish your real estate project no matter what comes up.

Local hard money lenders like us are different than private money or banks. We finance things no one else will.

Let’s go over a couple examples of how this loan has worked with our past clients to see if it’ll fit with your current project.

Finish a New Construction Project

Once a new build is started, banks don’t like to give out more loans partway through. This is the situation our client James found himself in.

He was building a house for himself. After he bought the property and got started, he became boxed in and ran out of money. He told the bank, “I have a property on five acres. It’s going to be worth $800,000. I only need $250,000 to finish it.”

But none of the banks would lend to him, for several reasons:

  • The project had already begun. Banks never like funding a project that’s already started.
  • His income didn’t meet their requirements. The property itself didn’t matter to the bank because James’s income was lower than they were willing to lend to.

So, James came to us instead. The project was only stalled because of money. He needed the $250k to finish the project in 5 to 6 months so he could get his family out of the trailer they were staying in on the property in the meantime.

Here’s what we did: we gave him the money out in escrows, or draws. He got $70k from us up front, then another $70k later, then another $80k, and so on.

We didn’t need to pull his credit score, scrutinize his income, and make sure he checks every box. We just needed the property to CO.

Finish a Bootstrapped Project

When any sort of flip is sitting stale for too long, sometimes the owner needs extra outside money to get things moving along so the property will start generating income.

Our client CW was a realtor who was finishing a project by turning a traditional rental into a short-term one. He had been bootstrapping the project (aka, funding it from his own resources).

His funds were slowing down with the change in the market, and Airbnb season was quickly approaching for the area. He needed a last $50k to finish the project.

So, he came to us, and here’s how it worked for him:

  • He kept his mortgage on the property.
  • We gave him $50,000 in a second-lien position on the same property.

He was able to get the house finished up and fully booked out for 6 months – generating plenty of income to pay off his loan with us.

Finish a Project That Goes Over Budget

With certain types of loans, banks can halt part of the funding if the project goes over budget. Here’s how it played out for our client John.

He had a construction loan with a bank. It was a great deal: they gave him all the money to build the property, then in the end it converts into a permanent loan at 3%.

However, he went over budget… so the bank stalled it. He needed $60k to get the project back on track and keep that 3% loan.

Here’s how John did it:

  • We gave him $60k.
  • He finished the project.
  • He could lock in the 3% bank loan for a 5-year term.
  • He took out a HELOC and paid off his loan with us.

Finish a Flip!

This fourth “finish a project” loan is our most common: working with fix-and-flippers.

Our client, PS, had a flip. Or rather, he had too many flips going at once. This one had been sitting for over 6 months, and he just needed $25,000 to finish up the rehab.

For those 6 months, this property was eating up funds. He was making mortgage payments, hard money interest payments, taxes, utilities, and everything with zero inflowing cash.

He had another hard money loan on the property, so we were able to come up behind him and get him the $25k.

Within 3 weeks, the project was complete and put on the market. Four weeks later, it sold, and he paid both loans off.

Why We Do These Loans

Big lenders won’t do deals like this for you. But as long as we’re in a safe lien position, we love being able to help you with these project finishes.

A couple of tens of thousands of dollars right when you need it can save you years of financial recovery.

Do you need a “finish a project” loan? Feel free to reach out at Info@HardMoneyMike.com. We’d love to see if we can help.

Happy Investing.

The Best Seat in the House

The “best seat in the house” is most commonly known as having the best seat in a theater. But for one of our flippers, her goal for every house she flips is to leave it with the new owners having The Best Seat in the House. She says that this spot in the house, which is different for every home, defines the home and is the point at which she starts and finishes her renovations. As we love hearing her say, “It’s the heart of the home”.


To her, flipping a house isn’t just about the renovations and the fixes. It’s about the overall improvement of the home. It’s about bringing life and love back into the home and getting the home back to a point that it can support its new owners to its fullest extent.


When she found this particular house, she knew almost immediately that the best seat in the house belonged in the living room. This room had a beautiful rustic brick wall, a fireplace that had immense potential to bring warmth and comfort to the room, and a gorgeous view out of a large bay window. So, as is her way, she started in this room and spread out from there.

The house needed new floors, new paint, and the bathrooms needed gutting and renewal. That’s not including the kitchen, which needed all new cabinets and appliances.

To break down the numbers, she bought this home for $135,000. She spent 4 months and $45,000 on the renovations and fix-ups. In the end, she was able to sell this home to the excited new owners for $239,900! She told us that one of the things that helped her sell this home so quickly was, in fact, the best seat of the house. It’s a unique way to show how much potential a home has. A lot of the time with house-shoppers, it’s about a feeling that they get when in the home. Having them sit down in the best seat of the house is a tremendously successful way for them to get that warm and fuzzy feeling.

Moved by curiosity, we asked her if she had a Best Seat of the House in her own home. She replied, “Absolutely we do, but if you want to sit there, you have to move the dog.”

Do You Need a Hard Money Loan?

With hard money loans, it’s very important to shop around. Every hard money lender will offer a slightly different type of loan, with slightly different requirements.

There is a loan that is perfect for your credit, your plan, and your property. You just have to find it.

Contact us for a Hard Money Loan

Check us out on YouTube

Hard Money Mike funds loans in Colorado, Oklahoma, and Texas.

Trash to Treasure

One of our favorite parts of this business is witnessing a property go from trash to treasure. This property in Texas was purchased by one of our Great’s when it was in a very rough state. The history of the property involved abandonment, poor renters who didn’t care for the place, to more abandonment. There was a lot of work to do. But this particular fix and flipper had an eye for properties like this. He can see through the rot, past the trash, and see what potential the house has.


He started with the foundation and bones of the house. There were foundational cracks, mold, and rot throughout. It was a necessity to take care of all of that first and foremost. A good, solid house needs upstanding and sturdy bones.


He moved on to the kitchen and bathrooms, both of which needed some upgrades and serious TLC. With new floors, tile, and appliances, the kitchen made a complete 180°. He went with a clean, white look and the place really sparkles.

For the bathroom, the whole thing needed replacing. He put in a nice jacuzzi tub, which really adds a nice touch to the feel of the bathroom. A modern, sleek vanity mirror combo catches the eye and invites people in with raised eyebrows. Finishing off the look with smooth walls and ceiling, exquisite tile floors, and a brand-new window, this bathroom sure is a treasure to behold.

Finishing the rest of the home with this same effort and determination, the house was flipped into a home and the new buyers couldn’t wait to sign on the dotted line. When the house was trash, it was purchased for a measly $135,000. When the house was flipped into treasure, it was sold for a whopping $230,000. And it took just 4 months to do it! With a solid crew at his back, our guy turned this home into something he can always be proud of. And this home is packed full of treasure and will never be trash again.

Do You Need a Hard Money Loan?

With hard money loans, it’s very important to shop around. Every hard money lender will offer a slightly different type of loan, with slightly different requirements.

There is a loan that is perfect for your credit, your plan, and your property. You just have to find it.

Contact us for a Hard Money Loan

Check us out on YouTube

Hard Money Mike funds loans in Colorado, Oklahoma, and Texas.

The Foundation of a Good Home

The foundation of a good home goes a lot deeper than what you can see. Not to be too overtly obvious about it, it starts with the foundation of the home. Having a strong home means having a solid foundation.


There are some fix and flippers out there who may try to cover up foundational issues in the home in thinking about their bottom line. They see a crack going through the concrete floor and decide to put a new floor over top and not let the eventual buyer see that. They don’t want to spend the money and time to fix a large foundational issue with the home, it’s far too costly. Unfortunately, come a year later, that new homeowner now has cracks running up their walls.


We don’t work with those kinds of fix and flippers. We believe in integrity and honesty, and we don’t want to invest in those who try to trick people. The foundation of a good home starts with hard work, and a sturdy foundation.


Take this fix and flipper we worked with last year, the initial photos he sent us of this home showed many foundational issues, and a large part of his budget was put toward fixing those issues.

He knew that just putting up a wall or putting down a floor to cover the problems wouldn’t benefit the house or the homeowner in any way. It was crucial to fix these issues, and he had to do them right. It started with digging tunnels under the home to access the support beams. He placed foundation repair pilings under each major beam, used hydraulic jacks to lift the home to the correct level. Finally, support cylinders were placed under the beams and shimmed them to the proper height.


It’s not easy work, or cheap work, but it’s necessary work. The end result speaks for itself, and for decades to come. The new homeowner can be confident that they are living in a sturdy, good-quality home. They won’t have to worry about any foundational cracks peeking up anytime soon. This home can now be a “forever home” because it has a rock solid foundation.

Do You Need a Hard Money Loan?

With hard money loans, it’s very important to shop around. Every hard money lender will offer a slightly different type of loan, with slightly different requirements.

There is a loan that is perfect for your credit, your plan, and your property. You just have to find it.

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Hard Money Mike funds loans in Colorado, Oklahoma, and Texas.