Tag Archive for: #Hard Money Mike

Hard Money Loan vs Cash Out Refinance: Which is Right for You?

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Today we are going to do a quick comparison! Real estate investors often face a big question: Which loan is best for my investment needs, a hard money loan vs cash out refinance? Both options can be great, but it depends on your goals, timeline, and the deal itself.

Imagine you find a fixer-upper that needs quick funding. A hard money loan might be your best bet. These loans are fast and flexible, perfect for short-term projects like flips. But they come with higher interest rates and fees, so they’re ideal when you know you can repay quickly.

Now, let’s say you’ve owned a rental for years, and it’s grown in value. With a cash-out refinance, you can tap into that equity at lower rates than hard money loans. This option works well for longer-term strategies, like buying another property or paying for renovations on your rental.

Think of it this way: Hard money loans are the sprinter, fast and focused, while cash-out refinances are the marathoner, steady and long-lasting.

Your choice depends on your investment strategy and how quickly you need the money. In the end, the right option will set you up for success on your next deal.

Contact Us Today! 

Which is best for your next investment need, hard money loan vs cash out refinance? 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! 

Hard Money Loans and Your Credit Score

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Today we are going to discuss hard money loans and your credit score. Hard money loans are a favorite tool for real estate investors. They offer quick funding and flexibility when time is tight. But what about your credit score? Does it matter as much with a hard money loan?

Here’s the good news: hard money loans focus more on the deal than your credit score. Lenders look at the property itself—the value, condition, and potential. That means you can get funding even if your credit isn’t perfect.

For example, let’s say Sarah wants to flip a property. Her credit score is 640, not great but not terrible. Traditional banks might hesitate, but a hard money lender sees the home’s potential. If the numbers work, Sarah can still get the loan she needs.

However, credit isn’t ignored completely. A better score can help you snag lower rates or better terms. If your score is shaky, some lenders might charge higher interest to offset the risk.

Think of it like this: with hard money loans, your credit score is the backup singer, not the star. The property and the deal take center stage.

Contact Us Today! 

Is your credit score where it should be? Contact us today to find out more about a usage loan and how you can boost your credit score quickly.

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! 

Consider a 911 Loan today!

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How can a 911 loan help you? If you are like most investors, you have used your personal credit cards to keep projects moving along as well as ensuring that business expenses are paid. However, the problem with this method is that the balances on the personal credit cards can drive down your credit score. A lower credit score can result in a higher chance of getting denied for a loan for your next project. It is important to remember that real estate investing is a leverage game. The better leverage you have, the easier real estate investing becomes. 

By using a 911 loan you can pay off your credit cards and other loans that report on your credit report. This will increase your score and in turn create better leverage and loan options for your next project. 

Contact Us Today! 

Are you in the best position for the best loan rates? Contact us today to find out if you need to consider a 911 loan today! 

Free Tools For You! 

We also have free tools available! Download the Credit Score Checklist.

Learn more!

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

Using Escrow for your Investment Deals

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It is critical to learn how using escrow for your investment deals can help you win in real estate investing!

What is escrow?

Think of it as a reimbursement program. Lenders will lock in a certain amount in the escrow fund. You can then submit draw requests throughout your project. 

Plan ahead for your deals!

Be prepared, you will likely need an additional $50,000 from your own pocket to get the project going before submitting the first draw. To clarify, this is essentially a reimbursement request. Keep in mind that it might take some time to go through the lenders verification process, so it’s important to prepare for a few weeks ahead in order to keep things on track.

How to get initial funds to access escrow:

  1. Business Credit Cards
  2. Lines of Credit
  3. Other People’s Money
  4. Gap Funding

By having full money buckets at the front end, it makes a huge difference in your sucess as an investor. Remember, markets move fast! A stalled project can end up costing more than they are worth! 

Contact Us Today! 

To find out more about using escrow of your investment deals can help you win! Contact us today.

Free Tools For You! 

We also have free tools available! Download the Real Private Money 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! 

VRBO Investment Properties: A Smart Way to Grow Your Income

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Thinking about owning a vacation rental? VRBO investment properties are a great way to earn extra income while building long-term wealth. These properties allow you to rent out homes or condos to short-term guests, usually in popular vacation spots.

For example, imagine owning a cozy cabin in the mountains or a beachside condo. By renting it out on VRBO, you can earn nightly income while still enjoying the property yourself when it’s available.

One of the biggest perks? Short-term rentals often bring in higher income compared to traditional long-term leases. If your property is in a high-demand area, a few booked weekends could cover your mortgage payment for the month.

Of course, success with a VRBO property requires smart planning. Location is key. Travelers look for destinations that offer great attractions, beautiful scenery, or unique experiences. You’ll also need to think about property management, like cleaning and maintaining the home.

Done right, VRBO properties can be a game-changer for your financial future. They help you pay off debt faster and enjoy life more, giving you both cash flow and a fun asset you can call your own.

Ready to learn how to get started? Contact us today to find out more! We can walk you through the process from choosing the right property, to financing options, and even tips to maximize your profits. 

Contact Us Today! 

Is a VRBO right for you? 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! 

Private Money vs. Hard Money: What’s the Difference for Real Estate Investors?

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Today we are going to discuss hard money vs private money. As a real estate investor, you’ll hear the terms private money and hard money tossed around a lot. Both can help you fund deals, but they come with key differences. Knowing these can save you time, money, and stress.

Let’s break it down.

Hard money loans come from professional lenders. These lenders specialize in quick, short-term loans for real estate deals like flips or rentals. Hard money often means higher interest rates and fees, but you get speed and reliability in return. For example, if you find a fix-and-flip deal that needs to close in 10 days, hard money might be your go-to.

Private money, on the other hand, usually comes from individuals—friends, family, or other investors. These loans often have flexible terms since the lender isn’t a professional. Imagine asking a retired family member to fund your next rental in exchange for interest payments. With private money, relationships matter more than a credit score.

So, which is better, hard money vs private money? It depends on the deal. If you need speed and structure, hard money may be the answer. If flexibility and trust are key, private money might work best.

Contact Us Today! 

Which is best for you, hard money vs private money? 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! 

Raise your credit score today! 

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Never underestimate the power of your credit score as a real estate investor! Your credit score could easily make or break your next deal. Remember, the best part of real estate investing is that anyone from anywhere can begin building wealth if they know how to use leverage! However, the biggest piece of leverage is an investor’s credit score. Are you setting yourself up for success? Let’s take a closer look at how you can raise your credit score today!

  1. Identify the problem: Are you using a personal credit card to cover business expenses? If so, that will decrease your credit score dramatically.
  2. Usage Loan to the Rescue: A usage loan can be used to pay off credit card debt and in turn raises your credit score.
  3. Open Business Credit Cards: Once your credit score is back on track, get into the habit of using business credit cards to protect your personal credit score long term. 

It’s really as easy as 1, 2, 3! By getting back on the right track with your credit score you will have the flexibility you need to succeed! 

 

Contact Us Today! 

Is your credit score where it should be? Contact us today to find out more about a usage loan and how you can boost your credit score quickly.

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 Hard Money?

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Today we are going to answer the question, “What is hard money?” Hard money is a quick and flexible way for real estate investors to get funding. It’s different from traditional loans. Instead of banks, private lenders provide the cash. The loan is backed by the property itself, not your credit score or income.

Think of hard money as a bridge. It helps you close deals fast or fix up properties when traditional lenders might slow you down.

For example, let’s say you find a fixer-upper with huge potential. A regular bank says no because the property needs repairs. A hard money lender, on the other hand, sees the property’s future value. They offer you a loan based on that. This gives you the chance to buy the property, renovate it, and either sell it or refinance with better terms later.

The trade-off? Hard money loans often have higher interest rates and shorter terms. They’re not meant for long-term financing, but they’re a powerful tool when used wisely.

If speed and flexibility are key, hard money can open doors that traditional loans keep shut. It’s about making the deal work, even when the numbers seem tricky.

Ready to learn how to use hard money the right way? Stick around for more tips and insights!

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! 

What is ARV

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What is ARV? ARV stands for After Repair Value and is the amount that the property is worth after it is repaired. To put it another way, ARV is the value that the property could sell or appraise for. It is determined by three min factors.  

First, you need to determine what you will do to improve the property. This would include any upgrades or additions to the property, as well as the quality of the repairs.

Second, you must research the comps for your property. Comps are properties that are similar to yours, but are finished. It is imperative that comps are in the same area, approximately the same size, and have a relevant sales date that is within the last 3 to 6 months.

Finally, take into consideration any concessions. Concessions are when the seller helps the buyer purchase the property. Keep in mind that any contributions will impact your bottom line. 

Be honest and realistic!

It is imperative that you are honest and realistic with your numbers! The more truthful you are, the better it is. An honest ARV leads to more deals, more loan approvals, better terms , and more money!

Contact Us Today! 

To find out more about how to calculate your ARV  Contact us today.

Free Tools For You! 

We also have free tools available! Download the Quick Deal Analyzer 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! 

How to Guarantee 100% Financing for BRRRR Properties

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Investing in BRRRR properties (Buy, Rehab, Rent, Refinance, Repeat) can be a great way to grow your real estate portfolio. However, one big question always pops up: How to guarantee 100% financing for BRRRR properties? With some careful planning and understanding of the numbers you can set yourself up for success. Let’s walk through the steps.

Step 1: Know Your Maximum Loan Amount

Before diving into the deal, you need to know how much your lender will finance. This comes down to two key numbers: your After Repair Value (ARV) and your lender’s Loan-to-Value (LTV) ratio.

What is ARV?

ARV is the expected value of your property after repairs. It’s what you can sell it for or the appraised value when you refinance.

Loan-to-Value (LTV)

LTV is the percentage of the ARV that your lender is willing to lend. Most lenders offer 70-75% of the ARV. So, if your property’s ARV is $200,000, and your lender offers 75% LTV, they’ll lend you $150,000.

Here’s a quick example:

  • ARV: $200,000
  • LTV: 75%
  • Maximum Loan Amount: $150,000

Step 2: Fit All Costs Under Your Loan Amount

To guarantee 100% financing, all your costs need to fit under the maximum loan amount. Your costs typically include:

  • Purchase Price
  • Rehab Costs
  • Closing Costs

For example, if your maximum loan is $150,000, your purchase price, rehab, and closing costs need to total $150,000 or less.

Example:

Let’s say you have the following costs:

  • Purchase Price: $100,000
  • Rehab: $40,000
  • Closing Costs: $5,000

Total costs = $145,000. Since this is under your $150,000 maximum loan, you can cover all your costs with the loan, meaning 100% financing!

Step 3: What Happens if Your Costs Are Over?

Sometimes, your costs may exceed the maximum loan amount. For instance:

  • Purchase Price: $120,000
  • Rehab: $40,000
  • Closing Costs: $5,000
  • Total Costs: $165,000

If your loan maxes out at $150,000, you’ll need to bring $15,000 of your own money to the table. This is why it’s crucial to carefully estimate your costs and compare them to your maximum loan.

Tips for Securing 100% Financing

  • Plan Your Rehab Costs Wisely: Keep your rehab within a budget that fits under the loan amount.
  • Negotiate Purchase Prices: The lower you negotiate the purchase price, the more room you have for other costs.
  • Include Closing Costs: Some lenders allow you to roll closing costs into the loan, which can help with 100% financing.

Conclusion

Getting 100% financing for BRRRR properties is possible when you know your numbers and plan carefully. Focus on maximizing your ARV and keeping your costs within your lender’s loan limit. Contact us today if you have questions about fitting everything under your loan, tools like loan calculators can help you run the numbers before you commit. 

Watch our most recent video to find out more about: How to Guarantee 100% Financing for BRRRR Properties