Tag Archive for: Fix and flip
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!
Introducing the Hard Money Mike Loan Cost Optimizer!
With the Loan Cost Optimizer, our goal is to help you make more money every time you complete a fix and flip or fix and hold. This software will help you discover the real cost of various finance options.
The key benefits you can expect from using the HMM Loan Cost Optimizer include:
- Seeing how much money you’ll need to contribute to the project and how it will impact your profits and cashflow.
- Comparing all lenders (and their hidden fees) and EASILY calculating the TRUE cost of your loan.
- Evaluating your terms and deciding which is better: paying higher points or a higher rate.
- How the length of your project will impact the cost of each loan option.
Since the Loan Cost Optimizer is a newer product, we’d love to hear your feedback on how we can make it as user-friendly as possible!
Our goal is to help real estate investors like you succeed, so feel free to share this vital tool with your network.
Ready to make more money on your next deal? Then request our HMM Loan Cost Optimizer and start comparing your options today! For a limited time, we’re offering this tool for free, so email Info@HardMoneyMike.com for your copy or download your copy here.
Why Lenders Turn You Down
Do you get frustrated by banks and lenders saying no to you?
Do you wonder why they say no, especially when you know others are getting approved for similar loans?
Do you wonder why it’s different with you? Do you think maybe they just don’t like you?
To be frank, they might not like you. But, it’s FAR more likely you get turned down for good, qualified projects because:
- Banks and lenders don’t sell the same loan products, so they might not have something that matches your needs. Heck, most hard money lenders only have one option, and if you don’t fit their box, it’s a big fat NO!
- Banks might not like to lend in the fix and flip world.
- All banks and lenders have their own niches and likes.
- Banks and Lenders have designated amounts they can lend.
- Some banks and lenders don’t work with real estate investors. Why? Because they have a lot of money to lend and they don’t like loans that pay off every six months. Instead, they prefer to lend their money, go play golf, and look for a loan again in two to three years.
If you’re tired of hearing “No,” and want to start getting the loans you need, give us a call!
Introducing the Fix and Flip Escalator
Who would you rather keep your money?
You? Or your banker or lender?
This might seem like a rhetorical question, but it’s not. Believe it or not, many fix and flippers—inadvertently—choose to give their money to bankers and lenders. Sadly, most don’t even know it. Why? Because they don’t fully understand the Fix and Flip Escalator:
The basic goal with the escalator is to move down the steps as fast as you can. Every time you reach the next step, your profits will JUMP!
And you know what that means, right? Yep! More money in your pockets (not a bank or lender’s). And the more money you have, the faster you can flip homes. The faster you flip homes, the faster you can live the life you’ve always dreamed of.
Like, a lot faster!
If you’re ready to get moving, we’re ready to help. Give us a call to chat more about the benefits of the fix and flip escalator.
What is the Fix and Flip Escalator: Terms
So, we mentioned the Fix and Flipper Escalator, but what IS it?
Today, we’re going to breakdown its terms so you can begin to understand the SIMPLE math behind it.
Ready?
Here we go!
Money Partner
Cost: 
Pros: Allows you to work on a project when you have no money, and also learn as you go.
Cons: These arrangements almost always favor the partner/mentor with at least half of the money going to them.
Hard Money
Cost:
Pros: Most hard money loans will fund up to 100% of your project. If you finish your project on time (or ahead of schedule), it’s cheaper than a partner/mentor.
Cons: Charge higher interest rates. If you take longer than planned to finish your project, most (or all) of your profits will vanish.
Soft Money
Cost:
Pros: Comes with lower costs than hard money, and less paperwork and hassles than banks.
Cons: Requires you to put more money and experience into the project. It might also require a better credit score.
Banking
Cost:
Small, local banks (pros and cons):
- Offer ease and convenience.
- Might charge a little more than larger banks but they make the process easier.
- Smaller banks also look at your project history but give you some credit for the projects you’re about to do.
Big, commercial banks (pros and cons):
- Require all documentation and make the process tougher.
- If you have all your ducks in a row, they will typically save you money, but most of the time it’s not worth the hassle.
Cash
Cost:
Pros:
- All of the profits go straight into your pocket
- No monthly cashflow issues.
Cons:
- Limits you on the number of projects you can work on (which, honestly, might be a good thing).
- Eliminates the leverage factor of completing more deals in a year.
Okay, now that you get the basic gist of who’s who on the escalator, we can start introducing some samples.
If you don’t want to wait, give us a call to start chatting about how you can start making, rather than losing money.