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Hard Money is a Scam

Hard Money is a Scam

Hard Money is a Scam

Many years ago, a rumor spread that hard money is a scam.

It all started with a real estate investor who could not qualify for a bank loan, so they turned to a hard money lender. Unfortunately, this real estate investor didn’t understand how hard money worked. So they had a bad experience. Like, really bad.

After that, they told ALL of their friends, “Hard money is a scam.”

And then those friends told their friends the same thing, even though they themselves had never used a hard money loan.

The rumor spread quickly. For miles and miles, investors caught wind of the false news that hard money wasn’t good for them or their wallet. One by one, they turned their back on this loan option and struggled to find another. And they lost a lot of money.

All because one investor had a bad experience. A bad experience that could’ve been prevented had they done just a little bit of homework.

Because here’s the truth. Hard money is NOT a scam.

It’s actually a genuine, honest-to-good option for investors who:

  • Can’t qualify for a bank loan.
  • Need to close deals fast.
  • Want to save money by avoiding extra costs for things like appraisals and inspections.
  • Or all of the above.

So, what gives hard money such a bad rap? Well, most of the time, it’s because real estate investors jump into a hard money loan without understanding it.

So, what is hard money?

Well, it isn’t like your normal bank loan.

Bank loans are usually long-term. Like, 15-30 years. Hard money, on the other hand, is intended to be short-term, like 3-6 months. If you keep a hard money loan longer than a year, then you’re not really using it correctly. Because, yes, hard money lenders charge higher interest rates than banks. There’s no denying that. And you don’t want to pay those rates longer than you need to.

That’s why it’s so important to have a plan to flip or refinance a property before entering a hard money loan.

Another major difference between bank and hard money loans is the closing process. Bank loans take at least a month to close. They also require more paperwork and fees to make that closing happen.

Hard money loans can close in just a few days and require far less, well, requirements. You don’t need to worry about appraisals and inspections and other costs that don’t get taken into account with bank loans.

That’s why they’re perfect for fix and flips, rentals, and other value-add properties. You can find a great property, bid on it, and buy it FAST.

Basically, hard money is an excellent tool to help investors compete in a very competitive real estate business.

It’s not a scam.

And anyone who claims it to be scam has either never used it because they listened to the false rumors that spread many years ago. Or they’ve used it, but they didn’t use it right.

To learn how to use hard money right, check out some of our other videos on our Youtube channel.

Our team strives to help investors understand hard money so they can buy the properties they want, when they want…and without hurting their cash flow.

Happy investing!

Introducing Flip-It, Pro-Fit, a Contractor Partnership Program

Introducing Flip It, Pro-Fit, a Contractor Partnership Program

Introducing Flip It, Pro-Fit, a Contractor Partnership Program

Today, we’d like to introduce our new contractor partnership program. Because we want you to make more money doing the work you love.

And with our Flip It, Pro-Fit Contractor Partnership Program, you can.

This special program is designed for any contractor who’d like to stop doing work for flippers, and start doing work for themselves…but who might want help on the business side.

That’s why it’s a partnership. Our company will handle all of the funding and paperwork, while you’ll handle all of the renovations.

Basically, we fund. You flip.

It’s as easy as that!

And, no. Right now, we do NOT charge commitment fees or anything else like that. This is truly a partnership program.

And when you partner with us, you can expect:

  • Less paperwork
  • More Money
  • No payments
  • And help creating a “bank worthy” portfolio.

Best yet, we’ll find the properties for you.

All you need to qualify for the Flip-It, Pro-Fit program is:

  • 3-5 years of experience as a contractor
  • A crew or team
  • Properties that sell for $250K or less AFTER they’re repaired
  • And a no BS attitude!

If you love fix and flips, but you don’t like seeing someone else get all the profits for your hard work, then here’s your chance to take control.

With the Flip-It, Pro-Fit program, you can keep doing the work you love, but make A LOT more money.

Ready to chat? Our team is always here to answer your questions and get your cash flow moving in the right direction.

 

What is a value add property

What is a Value Add Property?

If you’re a real estate investor, then it’s likely you’ve heard the term value-add property.

But what IS a value-add property?

Well, first of all, a value-add property means exactly like what it sounds like: a property that has value added to it.

Well, you add value to it by repairing it.

Think about a fix and flip or a fix and hold (aka, a rental property).

What is a Value Add Property

When you come across these pieces of real estate, you’ll quickly discover they’re not in marketable, sellable condition. They need work.

Some need A LOT of work.

So, let’s break things down a bit more.

Step one:

You buy a property that’s in some kind of disrepair…or simply outdated.

Then you spend some money to fix it up. This can be a lot of money because you have to do things like repair the roof, replace the plumbing, demo the kitchen, and other hefty tasks.

Or you only need to spend a little to tidy things up and make it appealing to future buyers or tenants. That includes replacing old carpet, adding fresh paint, and providing other cosmetic work.

Either way, you’re adding VALUE to the property.

Step two:

Once you do that, you can turn around and sell it for a profit or rent it for positive monthly cash flow.

And that’s basically it. It’s a fairly simple term to understand.

What you need to understand even more is how to evaluate a property to ensure you’re able to add value AND make a profit.

Need help with that? No problem. You can check out our other videos on our YouTube channel to learn more. Or you can directly reach out to our team for guidance and tips.

Because we’re always eager to set you on a path that helps you make the kind of money you need, to live the life you want.

Happy investing!

Flip-It, Prof-It Contractor Partnership Program

Weekly Chat: Flip-It, Pro-Fit Contractor Partnership Program

Weekly Chat: Flip-It, Pro-Fit Contractor Partnership Program

Are you a contractor? Good, because we want you to make more money doing what you love.

That’s why we’ve created the Flip-It, Pro-Fit Contractor Partnership Program.

Join us (online) next week to learn more about this special program that’s ONLY for contractors.

Flip-It, Pro-Fit Contractor Partnership Program

We fund. You flip.

The Flip-It, Prof-It program is easy. We’re looking to partner with contractors who want to stop doing work for flippers and start doing work for themselves. 

We’ll handle all the funding and paperwork, and you’ll handle the renovations.

It’s as simple as that. 

Hit the easy button.

When you partner with us, you don’t need to sweat the “business” side of the deal. Instead, you can do your work and enjoy:

  • Less paperwork
  • More Money
  • No payments
  • Help creating a “bank worthy” portfolio

In a nutshell, you do not need to worry about the business side of the deal. We’ll take care of that while you take care of the house.

Some basic qualifications.

  • 3-5 years experience as a contractor
  • A crew/team
  • Properties that sell for $250K or less AFTER they’re repaired
  • A no BS attitude!

If you can say yes to those, then tune into our free chat to learn more about the Flip-It, Pro-Fit Contractor Partnership Program?

You may register for FREE here.

Again, here’s when and where the chat will take place:

When: Wednesday, September 29th, 6 PM MST

Where: Virtual nationwide.

Register for free at https://my.demio.com/ref/lw8s3Krd8n4vKXqo

Mike and the rest of the Hard Money Mike team looks forward to seeing you on Wednesday! Because we want you to make the kind of money you need to live the life you want.

If you have any questions about the program, our team is here to answer them any time.

Happy investing!

How to Find a Good Contractor

How Your Contractor Can Make or Break Your Deal

How Your Contractor Can Make or Break Your Deal

Having a good contractor can make or break your deal.

But how can you find a quality contractor with a good reputation to complete your fix and flip, rental, or other value-add property?

Get Referrals

One of the easiest ways to find a good contractor is to ask friends and other investors for referrals.

Word of mouth is a powerful thing in this business. If someone had a good experience with a lender, title company, or, well, contractor, then it’s worth investigating.

When you ask friends and other investors about their contractor, make sure to ask them if they were happy with their contractor’s:

  • Work
  • Reliability
  • Communication
  • Overall experience

Interview

Once you collect a list of potential contractors, then it’s time to interview them.

Yes, interview.

Because, again, choosing the right contractor to help you fix up a property can be the difference between making a big or small profit.

Or no profit at all.

So, what kind of questions should you ask during each interview? Well, here are some of the most important ones to consider:

  • How many employees do you have?
  • How long have you been in business?
  • Do you have a referral list with current and past customers? Make sure to get phone numbers so you can verify this list.
  • Are you insured? With this one, remember to ask for a copy of their policy binder page showing their name and coverage. They should have General Liability and Worker’s Comp.
  • Who will be doing the work? Will there be any subcontracting, or will you and your team do all the work?
  • Has your company ever been sued or had a lawsuit against it?
  • Have you ever sued a client or filed a lien against a property?
  • Have you ever declared bankruptcy or had a company under a different name?
  • If the project falls behind schedule, what happens?
  • Has your company ever had a serious accident on the job?
  • Who will be at my house and when? Be sure to ask if background checks have been completed, and if there’s a set schedule.
  • May I have a written contract? You’ll want your attorney to review it before signing. Make sure the contract spells out timeframes, as well as how and when the contractor gets paid.

We suggest making a list of all the questions you’d like to ask ahead of time. That way you won’t forget anything during the conversation.

Red Flags

Once you find your ideal contractor, it’s important to stay alert and watch for red flags.

For example, if your contractor demands 25%-50% upfront, find someone else. Because a good contractor should have enough reserves to cover minor expenses to get the job started, except for materials. As for those, you should order everything and have it delivered to your property.

If your contractor has a problem with this, find a different one. Or tell them to purchase the materials themselves (pre-approved by you, of course). You can always compensate them when the job’s done.

They should also have pre-set dates for payments and money for materials.

Above all else, never assume anything. Get everything in writing. It’s your only resource if you need it later.

At the end of the day, it’s all about having a contractor that will respect you and your property. They should:

  • Be trustworthy and treat you fairly
  • Complete the job on time
  • Meet your budget
  • And provide quality work

This might seem like a lot of work to do before the real work begins, but trust us, it’s worth it! If you take the time to find the right property, the right lender, and the right contractor, then your flip or rental project will be a lot easier.

And the payoff will be much greater.

Ready to chat? Great! Our team is always here to help.

Happy investing!

How to Find and Value Properties

Money Chat: How to Find Cash Flowing Properties

Money Chat: How to Find Cash Flowing Properties

During our next Money Chat, real estate expert Mike Bonn will discuss how to find cash flowing properties.

Because it’s important to understand how to invest in good, cash flowing properties before putting your hard earned money into real estate deals.

You can join other like-minded investors and ask all of your questions about finding the best deals out there.

How to Find Cash Flowing Properties

Want to join Mike’s Money Chat? Then register for FREE here.

Mike will answer common questions like:

  • How do I find properties in my area? 
  • How do I evaluate a property to make sure it’s a good investment? 
  • What resources can I use to help me out with this process?

By the end of the Money Chat, you should have a much better grasp of how to find and value your real estate investments, including fix and flips and rentals.

When: Thursday, September 23rd, 11 AM MST

Where: Virtual nationwide.

Register for free at https://my.demio.com/ref/lw8s3Krd8n4vKXqo

Can’t make it? No problem. We run free Money Chats every week to make sure you have an opportunity to listen, learn, and ask all of your questions.

Mike and the rest of the Hard Money Mike/Cash Flow Mortgage Company team looks forward to seeing you on Thursday.

If you have any questions about our weekly Money Chats, then our team is here to answer them any time.

Happy investing!

How to Fund a Flip

Money Chat: How to Fund a Flip

Money Chat: How to Fund a Flip

During our next Money Chat, lending expert Mike Bonn will discuss “How to Fund a Flip.”

If you’ve always wanted to get into the fix and flip game, but don’t know where to start when it comes to buying properties, then this Money Chat is perfect for you!

You can join other like-minded real estate investors and ask all of your questions to a lending expert.

How to Fund a Flip Property

Want to join Mike’s Money Chat? Then register for FREE here.

Mike will answer common questions like:

  • What are my funding options?
  • What is hard money?
  • How do I qualify? What credit score do I need? Income? Experience?

By the end of the Money Chat, you should have a much better grasp of how to get going in real estate investing.

So, mark your calendar!

When: Tuesday, September 21 @ 11 AM MST

Where: Virtual nationwide.

Register for free at my.demio.com/ref/1j9cO1wJ3Co6QkW1

If you can’t make this week’s Money Chat, don’t worry. We’ll run another chat next week!

Mike and the rest of the Hard Money Mike/Cash Flow Mortgage Company team looks forward to seeing you on Tuesday.

If you have any questions about our weekly Money Chats, then our team is here to answer them any time.

Happy investing!

How to Find and Value Properties

Last Chance: How to Find and Value Properties

Last Chance: How to Find and Value a Properties

Do you know how to find and value properties? If not, here’s your second chance to participate in this week’s Money Chat with Mike Bonn.

Mike will be hosting an encore Money Chat tomorrow, Thursday, September 16th at 11 a.m. MST. 

During tomorrow’s chat, Mike will answer all of your questions on how to find and value a property.

Because it’s important to understand how to invest in good, cash flowing properties before putting your hard earned money into real estate deals.

So don’t miss out! This is your second chance to join other like-minded real estate investors and ask all of your questions to a lending expert.

how to find and value a property

If you’d like to join Mike’s Money Chat tomorrow, then you can register for FREE here.

During the virtual call, Mike will answer common questions like:

  • How do I find properties in my area? 
  • How do I evaluate a property to make sure it’s a good investment? 
  • What resources can I use to help me out with this process?

By the end of the Money Chat, you should have a much better grasp of how to find and value your real estate investments, including fix and flips and rentals.

Can’t make it to tomorrow’s chat? No problem. Let us know and we’ll set up more Money Chats on how to find and value a property. Or you can reach out to our team and schedule a time for a one-on-one call. That way you have an opportunity to ask all of your questions on how to find and value properties.

But, if you’d like to tune in LIVE tomorrow to listen and participate with other real estate investors, then here’s your chance.

When?

Tomorrow at 11 AM MST

Where?

Virtual nationwide.

Register for free at https://my.demio.com/ref/lw8s3Krd8n4vKXqo

Mike and the rest of the Hard Money Mike/Cash Flow Mortgage Company team looks forward to seeing you tomorrow!

If you have any questions about our weekly Money Chats, then our team is here to answer them any time.

Happy investing!

How to find and value properties

Money Chat Encore: How to Find and Value a Property

Money Chat Encore: How to Find and Value a Property

Do you know how to find and value a property? If not, here’s your second chance to participate in this week’s Money Chat with Mike Bonn.

Mike will be hosting an encore Money Chat tomorrow, Thursday, September 9th at 11 a.m. MST. 

During tomorrow’s chat, Mike will answer all of your questions on how to find and value a property.

Because it’s important to understand how to invest in good, cash flowing properties before putting your hard earned money into real estate deals.

So don’t miss out! This is your second chance to join other like-minded real estate investors and ask all of your questions to a lending expert.

How to find and value a property

If you’d like to join Mike’s Money Chat tomorrow, then you can register for FREE here.

During the virtual call, Mike will answer common questions like:

  • How do I find properties in my area? 
  • How do I evaluate a property to make sure it’s a good investment? 
  • What resources can I use to help me out with this process?

By the end of the Money Chat, you should have a much better grasp of how to find and value your real estate investments, including fix and flips and rentals.

Can’t make it to tomorrow’s chat? No problem. Let us know and we’ll set up more Money Chats on how to find and value a property. Or you can reach out to our team and schedule a time for a one-on-one call. That way you have an opportunity to ask all of your questions on how to find and value properties.

But, if you’d like to tune in LIVE tomorrow to listen and participate with other real estate investors, then here’s your chance.

When?

Tomorrow at 11 AM MST

Where?

Virtual nationwide.

Register for free at https://my.demio.com/ref/lw8s3Krd8n4vKXqo

Mike and the rest of the Hard Money Mike/Cash Flow Mortgage Company team looks forward to seeing you tomorrow!

If you have any questions about our weekly Money Chats, then our team is here to answer them any time.

Happy investing!

How to Find and Value a Property

Next Money Chat: How to Find and Value a Property

Next Money Chat: How to Find and Value a Property

During our next Money Chat, lending expert Mike Bonn will discuss how to find and value a property.

Because it’s important to understand how to invest in good, cash flowing properties before putting your hard earned money into real estate deals.

You can join other like-minded real estate investors and ask all of your questions to a lending expert.

How to Find and Value a Property

Want to join Mike’s Money Chat? Then register for FREE here.

Mike will answer common questions like:

  • How do I find properties in my area? 
  • How do I evaluate a property to make sure it’s a good investment? 
  • What resources can I use to help me out with this process?

By the end of the Money Chat, you should have a much better grasp of how to find and value your real estate investments, including fix and flips and rentals.

Can’t make it? No problem. We’re running a second Money Chat next week to make sure you have an opportunity to listen, learn, and ask all of your questions. And if you miss next week’s chat, no sweat. We’ll be hosting many more in the future.

So, mark your calendar!

When?

Tuesday, September 7th, 6 PM MST

OR

Thursday, September 9th, 11 AM MST

Where?

Virtual nationwide.

Register for free at https://my.demio.com/ref/lw8s3Krd8n4vKXqo

Mike and the rest of the Hard Money Mike/Cash Flow Mortgage Company team looks forward to seeing you on Tuesday or Thursday. Or both!

If you have any questions about our weekly Money Chats, then our team is here to answer them any time.

Happy investing!