Tag Archive for: #Hard Money Mike

Fix & Flip Like a Pro: Hard Money Strategies for Maximum Profits

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Today we are going to discuss how to fix & flip like a pro: hard money strategies for maximum profits. Flipping homes is one of the fastest ways to build wealth in real estate. But without the right funding, your project can stall before it even begins. That’s where hard money loans come in. They offer fast, flexible financing that can cover up to 100% of your deal (in the right conditions).

In this guide, we’ll break down the key numbers, loan terms, as well as roadblocks that can make or break your success. Plus, you’ll get access to a free Excel spreadsheet to help you run your numbers before making a move.

Step 1: Know Your Key Numbers

Lenders evaluate fix and flip deals using three key numbers:

1. Purchase Price

  • This is what you’re paying for the property.
  • Example: $200,000

2. Rehab Budget (Scope of Work)

  • This includes repairs, upgrades, and improvements.
  • Example: $50,000

3. After Repair Value (ARV)

  • This is the projected value after renovations.
  • Example: $350,000

💡 Pro Tip: Your lender will use the ARV to determine how much they can lend. Most lenders offer loans up to 75% of the ARV.

Step 2: Understanding Your Loan Amount

Lenders will calculate your loan based on the ARV, purchase price, and rehab costs.

  1. Maximum Loan Amount (75% of ARV)

    • $350,000 × 75% = $262,500
    • This is the highest loan amount a lender might offer.

  2. How Much You Actually Get

    • Lenders will not give more than the total of your purchase price + rehab.
    • In this example:
      • Purchase + Rehab = $250,000
      • Since $250,000 is less than the $262,500 max loan, you could qualify for full coverage.

✅ Result: If your numbers align, you may be able to secure 100% financing. If not, you’ll need additional funds.

Step 3: What Costs Do You Need to Cover?

Even with hard money financing, you’ll have out-of-pocket costs. Here’s what you should prepare for:

1. Down Payment

  • Lenders typically fund 80–90% of the purchase price.
  • You may need to bring 10–20% of the purchase price in cash.
  • Example: $200,000 purchase price × 20% down = $40,000 out-of-pocket.

2. Rehab Cost Contribution

  • Many lenders fund 80–100% of rehab costs, but you must pay upfront and get reimbursed.
  • Example: $50,000 rehab × 90% lender coverage = $5,000 out-of-pocket.

3. Closing Costs & Loan Fees

  • Loan origination, title fees, and processing costs typically range from 2-4% of the loan.
  • Example: $205,000 loan × 3% closing costs = $6,150.

4. Carry Costs (Holding Expenses)

  • Monthly interest-only payments on the loan.
  • Taxes, insurance, utilities while holding the property.
  • Example: $205,000 loan at 10% interest = $1,700/month.

💡 Pro Tip: Many first-time investors underestimate how much cash they need upfront. Make sure to plan for these costs before diving into a deal.

Step 4: The Biggest Roadblocks & How to Overcome Them

Even great deals can fail if you don’t have the right funding strategy. Here’s what commonly trips up new investors:

❌ Not Having Enough Upfront Capital

✅ Solution: Build your Money Bucket with personal savings, business credit lines, or HELOCs.

❌ Not Understanding Escrow Releases

✅ Solution: Hard money lenders hold rehab funds in escrow and release them in stages. Make sure you can cover materials and labor upfront before reimbursement.

❌ Underestimating Holding Costs

✅ Solution: Budget for at least 4–6 months of carrying costs (interest, taxes, insurance).

💡 Avoid These Issues by Running Your Numbers First!

Step 5: Get Your Deal Funded the Right Way

Hard money loans are powerful tools when used correctly. The key is knowing your numbers, planning ahead, and ensuring you have enough funding to complete the project.

✅ Grab Your FREE Fix & Flip Calculator that is featured in this video that discusses fix & flip like a pro: hard money strategies for maximum profits. 

This tool will help you:
First, Calculate your loan amount
Second, See your cash needed upfront
Finally, Estimate your monthly payments

Got questions about fix and flip loans? Contact us today! Let’s make sure your next flip is your most profitable one yet! 🚀

Need More Funding?

Visit HardMoneyMike.com for more expert advice on real estate loans, BRRRR strategies, as well as funding solutions.

What closing costs should you expect when buying a property?

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Today we are going to answer the question “what closing costs should you expect when buying a property?” Buying a property is exciting, but there’s one piece that often catches buyers off guard: closing costs. These are the fees and expenses you’ll pay to finalize your home purchase. Knowing how to calculate these costs upfront can save you from surprises and help you budget better.

Closing costs typically range from 2% to 5% of the purchase price. For example, if you’re buying a $200,000 home, you can expect to pay between $4,000 and $10,000 in closing fees. But what exactly makes up these costs?

Here are some common items included:

  • Lender fees: These cover things like loan origination and underwriting.
  • Title services: Fees for title searches and insurance to make sure the property is free of legal issues.
  • Appraisal: The cost of determining the property’s value.
  • Taxes and prepaid costs: Property taxes and homeowners insurance may need to be paid upfront.

It’s important to ask your lender for a Loan Estimate, which breaks down these expenses before closing. This document gives you a clear picture of what you’re paying for and ensures there are no hidden fees.

By understanding closing costs, you can prepare for your purchase with confidence. Ready to dive deeper? The full guide explains how to estimate your costs and even save money on them.

Contact Us Today! 

Is the potential property right for you? Contact us today to find out more about what closing costs should you expect when buying a property.

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! 

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! 

Hard Money vs. Traditional Loans

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Today we are going to discuss hard money vs. traditional loans. When it comes to real estate, picking the right type of loan can make or break a deal. Two common options are hard money loans and traditional loans, but they’re as different as night and day. Let’s break it down.

Hard money loans

Hard money loans are short-term loans that are all about speed and flexibility. They’re funded by private lenders who care more about the property’s value than your credit score or income. Need to close fast on a fixer-upper? A hard money loan might be your best bet. These loans usually come with higher interest rates and shorter repayment periods, making them great for quick projects like flips.

Traditional loans

On the other hand, traditional loans, think mortgages from banks or credit unions, focus on you as the borrower. They’ll dive deep into your credit, income, and debt before approval. These loans take longer to close but often come with lower interest rates and longer terms. Traditional loans are perfect for long-term investments, like rental properties you want to hold onto for years.

Example:

Here’s a quick example: If you’re flipping a house and need money within a week, a hard money loan could save the day. But if you’re buying a rental property to build wealth over time, a traditional loan might be the smarter move.

Each loan type has its place. The key is matching the loan to your goals. Ready to dive deeper? Let’s explore how to choose the right one for your next deal.

Contact Us Today! 

Which is best for your next investment need, Hard money vs. traditional loans? Contact us today to find out more!

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! 

How to Sell Your Fix and Flips Faster in 2025

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Today we are going to review how to sell your fix and flips faster in 2025. Selling a fix-and-flip property quickly can mean the difference between a good profit and unnecessary losses. With rising interest rates, it’s more important than ever to make your property attractive and affordable to buyers. Here are practical steps to sell your fix-and-flips faster while maximizing your profits.

Why Affordability Matters More Than Ever

In 2025, most buyers focus on payments, not just price. Whether it’s a car, a boat, or a house, people think in terms of what fits their budget—and what they can qualify for. For a property to sell quickly, you need to control the buyer’s monthly payment. That means focusing on two key numbers:

  1. The purchase price
  2. The interest rate

Instead of dropping your price, consider strategies to lower the interest rate for your buyers. This expands the pool of people who can afford your property, creating more competition and selling your property faster.

Example: $400,000 Property in a High-Interest Market

Let’s say you’re selling a property for $400,000. Current market interest rates are 6.875%, and your target is to keep the monthly principal and interest payment under $2,000. Here’s how the numbers play out:

  • At 6.875%, the payment for an 80% loan (with 20% down) would be $2,100.
  • To attract more buyers, you need to lower the payment below $2,000. This could double or triple the number of potential buyers who qualify.

You have two main options to achieve this:

Option 1: Drop the Purchase Price

A common strategy is to reduce the property price. Here’s what that looks like:

  • A 5% price drop from $400,000 brings the price down to $380,000.
  • At 6.875%, the payment drops to $1,997.

This method works, but it costs you $20,000. If your profit margin was 10%, you just lost 50% of your profits. For a 15% margin, you lose a third of your profits. That’s a significant hit just to open up the buyer pool.

Option 2: Buy Down the Interest Rate

Instead of reducing the price, focus on lowering the buyer’s interest rate. Here’s how:

  • Keep the purchase price at $400,000.
  • Offer to buy down the buyer’s interest rate by 1.5 points.
  • The cost of the rate buy-down is based on the loan amount, not the purchase price. For an 80% loan of $320,000, 1.5 points would cost $4,800.

This strategy lowers the payment to $1,996, the same as the price drop, but it costs only $4,800 instead of $20,000. By focusing on payments rather than price, you keep more money in your pocket while still attracting more buyers.

How to Market This Strategy

When advertising your property, emphasize lower monthly payments, not the buy-down itself. Many buyers and even Realtors don’t fully understand rate buy-downs, but everyone understands affordability. Use phrases like:

  • “Affordable monthly payments”
  • “Lower payment options available”
  • “Permanent payment savings”

Highlighting the payment advantage makes your property stand out in a competitive market.

Key Takeaways for 2025 Fix-and-Flips

  1. Buyers focus on payments, not just price.
  2. Lowering the interest rate is often more cost-effective than dropping the price.
  3. Market your property by emphasizing affordability and payment savings.

At Hard Money Mike, we’re here to help you succeed with your fix-and-flips. Whether you need financing for your next project or strategies to sell faster, we’ve got you covered. Reach out to us for the best tools, rates, and terms to make your projects a success.

Watch our most recent video to find out more about: How to Sell Your Fix and Flips Faster in 2025

How Does Credit Card Usage Affect Your Credit Score?

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Today we are going to answer the question, “how does credit card usage affect your credit score?” Your credit card is more than just a tool for purchases, it plays a big role in shaping your credit score. But how you use it makes all the difference.

Credit card usage is measured by something called credit utilization. That’s how much of your available credit you’re using compared to your total limit. For example, if your credit limit is $10,000 and your balance is $3,000, your utilization rate is 30%. Keeping this rate low (under 30%) can help boost your score.

On-time payments are another big factor. Every payment you make (or miss) is reported to the credit bureaus. Paying your balance in full or at least on time each month shows lenders you’re responsible. Late payments, however, can hurt your score and stick around on your report for years.

Finally, how long you’ve had your credit card matters, too. Older accounts show stability, so don’t rush to close your oldest card, even if you’re not using it often.

Think of your credit score like a grade in school. Good habits, like paying on time and keeping your balances low, lead to an A+. But if you overspend or miss payments, your score can drop.

Stay smart with your cards, and you’ll build a strong credit score over time. In the end, good credit gives you more financial freedom for things like loans or mortgages.

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Is your credit score where it should be? Contact us today to learn about: How Does Credit Card Usage Affect Your Credit Score?.

Free Tools For You! 

We also have free tools available! Download the Credit Score Checklist now to see what changes you need to make in order to get on the right path.

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 is Transactional Funding?

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Today we are going to answer the question, “what is transactional funding?” Transactional funding is a short-term loan that helps real estate investors complete quick, back-to-back property deals. Think of it as a bridge that gets you from point A (buying) to point B (selling) without using your own cash.

Let’s look at an example

Here’s how it works: You find a property to buy (let’s call it Deal 1). At the same time, you have another buyer lined up to purchase that same property from you (Deal 2). Transactional funding steps in to cover the purchase of Deal 1 until Deal 2 closes. After Deal 2 wraps up, the funding gets paid back.
This type of funding is ideal for wholesalers or investors working on assignments where timing is everything. For example, imagine you’ve negotiated a great deal on a fixer-upper and have already lined up a flipper to buy it. Transactional funding ensures you don’t miss out on the opportunity just because you don’t have cash on hand.

What’s the best part? 

These loans don’t typically require credit checks or income verification since they’re secured by the property and paid off quickly. Just be sure all pieces of the deal are in place before moving forward.
In short, transactional funding is the ultimate tool for quick real estate flips. It keeps your deals moving and helps you maximize opportunities without tying up your own money.

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! 

Quick Guide to Pricing Properties as a Real Estate Investor

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Today we are going to share a quick guide to pricing properties as a real estate investor. Pricing a property is one of the most critical skills a real estate investor can master. It’s about more than just guessing a number, it’s about understanding the market, analyzing data, and knowing your strategy.

Start by looking at comparable sales in the area, also called “comps.” For example, if you’re eyeing a three-bedroom, two-bath property, compare it to others with similar features sold nearby in the last 6–12 months. Comps give you a realistic idea of what buyers are willing to pay.

Next, think about the property’s potential value after any upgrades. This is especially important if you’re planning a fix-and-flip project. Let’s say similar updated homes in the area sell for $300,000, and your estimated renovation costs are $40,000. You’d want to buy at a price low enough to leave room for profit.

Also, don’t overlook the local market trends. Is the area growing or declining? A hot market might mean higher prices and faster sales, but a slower market could call for more conservative pricing.

Finally, remember to factor in your investment goals. Are you holding the property as a rental or flipping it for a quick profit? Your strategy will shape what “right price” means for you.

Pricing is both an art and a science, but with research and a clear plan, you can find the sweet spot to maximize your return.

Contact Us Today! 

Would you like to discuss our quick guide to pricing properties as a real estate investor?  Contact us today to find out more about what to look at when comping! 

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.

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

BRRRR Homes as Investment Properties

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Today we will be discussing BRRRR homes as investment properties. Ever heard of the BRRRR method? It’s one of the smartest ways to build wealth through real estate. BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It’s like flipping houses, but instead of selling, you keep the property as a rental.

Here’s how it works:

  1. Buy: Find an undervalued property that needs some TLC.
  2. Rehab: Fix it up to make it safe, functional, and attractive for renters.
  3. Rent: Get tenants to move in and start covering your costs.
  4. Refinance: Pull cash out of the property with a loan based on its new value.
  5. Repeat: Use that cash to do it all over again.

For example, let’s say you buy a fixer-upper for $100,000. You spend $30,000 on repairs, and now it’s worth $180,000. You refinance, take out $50,000, and use that to buy your next property.

The best part? You’re building equity and cash flow at the same time. With every BRRRR deal, your portfolio grows while your tenants help pay down the loans.

It’s not always easy, but if done right, it’s a powerful strategy to grow your investments. 

Contact Us Today! 

Would you like to find out more about BRRRR homes as investment properties? 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! 

Hard Money vs. DSCR Loans: Which One Fits Your Deal?

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Today we are going to discuss hard money vs. DSCR loans: Which one fits your deal? If you’re a real estate investor, you’ve probably heard of both hard money loans and DSCR loans. They’re both powerful tools, but they work in different ways. Let’s break it down so you know which one fits your next deal.

Hard money loans are like a quick fix for short-term projects. Imagine you’ve found a fixer-upper that needs work before it can shine. A hard money loan gives you the cash fast, but it often comes with higher interest rates and shorter repayment terms. It’s like borrowing from that one friend who says, “Pay me back in a month, or else!”

On the other hand, DSCR loans are better for the long haul. These loans are based on your property’s income, not your personal finances. Say you’ve got a rental property bringing in steady cash every month—this loan is built for that. DSCR loans offer longer terms and more stability, making them great for rentals.

Here’s a quick example:

  • Fixing and flipping a run-down house? Hard money might be your answer.
  • Holding onto a rental that pays its way? DSCR loans can make your life easier.

Choosing the right loan depends on your goals. Short-term flip? Go hard money. Long-term rental income? Think DSCR. It’s all about matching the loan to your strategy!

Contact Us Today! 

Hard money vs. DSCR loans: Which one fits your deal? Contact us today to find out more!

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!